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Home My WebLink About2021-05-27 HRA Regular Meeting PacketAgenda Edina Housing and Redevelopment Authority City of Edina, Minnesota V IRTU AL M EETIN G Thursday, May 27, 2021 7:30 AM Watch the meeting on cable TV or at EdinaMN.gov/LiveMeetings or Facebook.com/EdinaMN. To participate in Community Comment: Call 800-374-0221. Enter Conference ID 1999629. Give the operator your name, street address and telephone number. Press *1 on your telephone keypad when you would like to get in the queue to speak. A City sta9 member will introduce you when it is your turn. I.Call to Order II.Roll Call III.Pledge of Allegiance IV.Approval of Meeting Agenda V.Community Comment During "Community Comment," the Edina Housing and Redevelopment Authority (HRA) will invite residents to share new issues or concerns that haven't been considered in the past 30 days by the HRA or which aren't slated for future consideration. Individuals must limit their comments to three minutes. The Chair may limit the number of speakers on the same issue in the interest of time and topic. Generally speaking, items that are elsewhere on today's agenda may not be addressed during Community Comment. Individuals should not expect the Chair or Commissioners to respond to their comments today. Instead the Commissioners might refer the matter to sta. for consideration at a future meeting. VI.Adoption of Consent Agenda All agenda items listed on the consent agenda are considered routine and will be enacted by one motion. There will be no separate discussion of such items unless requested to be removed from the Consent Agenda by a Commissioner of the HRA. In such cases the item will be removed from the Consent Agenda and considered immediately following the adoption of the Consent Agenda. (Favorable rollcall vote of majority of Commissioners present to approve.) A.Draft Minutes of Regular Meeting April 22, 2021 B.Request for Purchase: Grandview District Public Improvements C.Resolution No. 2021-03: Authorizing Execution of Tax Increment Pledge Agreement D.Extension of 4d Program A.ordability Period for Edina York Villas VII.Reports/Recommendations: (Favorable vote of majority of Commissioners present to approve except where noted) A.Metro HRA Family A.ordable Housing Program Partnership Agreements B.7001 France Ave - Preliminary Recommendation Regarding Tax Increment Financing C.Housing Improvement Area Policy VIII.HRA Commissioners' Comments IX.Executive Director's Comments X.Adjournment The Edina Housing and Redevelopment Authority wants all participants to be comfortable being part of the public process. If you need a ssista nce in the way of hearing ampli>cation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: May 27, 2021 Agenda Item #: VI.A. To:C hair & C ommis s ioners of the Edina HR A Item Type: Minutes F rom:Liz O ls on, Administrative S upport S pecialist Item Activity: Subject:Draft Minutes of R egular Meeting April 22, 2021 Action Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approve the regular minutes of April 22, 2021. I N TR O D U C TI O N: S ee attached meeting minutes of April 22, 2021. AT TAC HME N T S: Description HRA April 22, 2021 Draft Meeting Minutes Page 1 MINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY APRIL 22, 2021 7:30 A.M. I. CALL TO ORDER Chair Hovland called the meeting to order at 7:30 a.m. and noted the meeting was being held virtually to comply with the Governor’s Stay at Home Order due to the COVID-19 pandemic then explained the processes created for public comment. II. ROLLCALL Answering rollcall were Commissioners Anderson, Jackson, Pierce, Staunton, and Chair Hovland. Absent: None. III. PLEDGE OF ALLEGIANCE IV. MEETING AGENDA APPROVED – AS PRESENTED Motion by Commissioner Jackson, seconded by Commissioner Pierce, approving the meeting agenda as presented. Roll call: Ayes: Commissioners Jackson, Pierce, Staunton, and Chair Hovland Motion carried. V. COMMUNITY COMMENT No one appeared. VI. CONSENT AGENDA ADOPTED – AS PRESENTED Member Staunton made a motion, seconded by Member Pierce, approving the consent agenda as presented: VI.A. Approve minutes of the Regular Meeting of April 8, 2021 VI.B. Approve request for purchase; engineering services for pedestrian bridge; Kimley-Horn for $100,000 VI.C. Approve request for purchase; estimating services for pedestrian bridge; RJM for $23,558 Rollcall: Ayes: Commissioners Jackson, Pierce, Staunton, and Chair Hovland Motion carried. VII. REPORTS/RECOMMENDATIONS VII.A. AFFORDABLE HOUSING FINANCING TOOLS – RECEIVED Nick Anhut, Ehlers and Associates, presented various financing tools available to the HRA to support affordable housing development. He spoke about the need for public funding to create affordable housing projects and address the financial gap for developers then outlined in detail TIF/abatement financing options that included pay-as-you-go notes, bonds/interfund loans, TIF pooling, HRA levy, revolving loan funds, local housing trust fund, housing improvement areas, public project bonding, funding partners and tax-exempt bonds. The Commission asked if housing improvements areas could be used for rental property projects and pooled monies use examples outside of revolving loans. Mr. Anhut responded that tool could possibly be used for units rented in a common-interest community but not a standalone multi-family project. He said revolving loan programs included many restrictions and an HRA-levy would provide Minutes/HRA/April 22, 2021 Page 2 much more flexibility then noted other projects such as streetscape, accessibility or infrastructure that would serve an affordable housing development could be done as well. The Commission asked about the use of bonds for publicly offered securities to the private sector to fund affordable housing projects with a market rate would help cover the cost. Mr. Anhut said he would return with further research as while there were private funds that do that work our ability to obtain that financing could be limited. VIII. HRA COMMISSIONERS’ COMMENTS – Received IX. EXECUTIVE DIRECTOR’S COMMENTS - Received IX.A. UPDATE ON REDEVELOPMENT PLANNING FOR 5146 EDEN AVENUE – Received Economic Development Manager Neuendorf provided an update on the status of the 5146 Eden Avenue project and recommended next steps. Discussion was held on the need for an additional worksession prior to expiration of the memorandum of understanding (MOU) with a new concept that included ownership housing, public green space, commercial building, and a pedestrian bridge across the railroad tracks. He noted the MOU allowed both parties to explore concepts and there was no obligation to commit to the proposed uses. Mr. Neuendorf said most comments focused on what the project was lacking and not delivering and that the developer understood the direction and was willing to start over to explore more programming ideas. He said it was essential for the group to hold a separate meeting a better review of wants and needs to provide the best direction to the development team. The Commission held discussion on the most important points and the need for the public to understand the history of the site constraints, such as inclusion of a park and ride no longer on option and the need to identify a desired outcome, whether it be policy, funds, or a combination. Discussion was held about the need to keep the spirit of the original framework alive created nine years ago in spite of site constraints as well as the difficulties of having a part public/part private development. Staff was directed to identify a mutual date to meet, possibly in person, that would input the developer and the public. X. ADJOURNMENT Motion made by Commissioner Anderson, seconded by Commissioner Jackson, to adjourn the meeting at 8:52 a.m. Roll call: Ayes: Commissioners Jackson, Pierce, Staunton, and Chair Hovland Motion carried. Respectfully submitted, Scott Neal, Executive Director Date: May 27, 2021 Agenda Item #: VI.B. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eques t F or P urchas e F rom:C had A. Milner, P.E., Direc tor of Engineering Item Activity: Subject:R equest for P urc hase: G randview District P ublic Improvements Ac tion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approve R equest for P urchase: Grandview D istrict P ublic I mprovements for $6,379,048.31 with various vendors as detailed in the staff report. Approve S taff Recommendation to C lose S outhbound H ighway 100 O n-R amp from E den Avenue. I N TR O D U C TI O N: S ee attachments for details on the spending plan and details recommending closure of the Southbound Highway 100 On-Ramp from Eden Avenue. AT TAC HME N T S: Description Staff Report Southbound Highway 100 On-Ramp Clos ure Summary Memo Request for Purchase Street and Utility Construction Request for Purchase Eden Ave Lands caping Construction Request for Purchase Grandview Ramp & Wayfinding Cons truction Request for Purchase CP Rail Permit Services Request for Purchase Grandview Parking Ramp Security Cameras Request for Purchase Street and Utility Material Tes ting Request for Purchase Lift Station #9 Control Panel Request for Purchase Street and Utility Consulting Services SEH Request for Purchase Grandview Parking Ramp Cons ulting Services Kimley Horn Request for Purchase Lift Station #9 Cons ulting Services BARR Request for Purchase Pedes trian Bridge Consulting Services Kimley Horn Request for Purchase Materials & Geotech Services Braun Request for Purchase Fiber Optic with EPS Lift Station #9 Letter Proposal with BARR Pedestrian Bridge Letter Propos al with Kimley Horn Lift Station #9 Control Panel Letter Propos al with IPS Material Tes ting Letter Propos al with Braun Ped Bridge Material Testing & Geotech Letter Proposal with Braun Grandview Ramp & Wayfinding Letter Proposal with Kimley Horn Street & Utility Letter Propos al with SEH Lands caping Letter Proposal with SEH Contract Grandview Parking Ramp & Wayfinding with Restoration & Construction Services Contract Street & Utilities SM Hentges Contract Landscaping with Peterson Companies Contract Security Cameras with Pro-Tek Design Contract Fiber Optic with EPS CP Rail Service Agreement May 27, 2021 Chair and Commissioners of the Edina HRA Bill Neuendorf, Economic Development Manager Chad A. Millner, P.E., Director of Engineering Public Improvements Associated with the Grandview 2 TIF District including closure of Southbound Highway 100 On-Ramp from Eden Avenue Executive Summary: Staff is requesting approval of $6,379,084.31 worth of contracts detailed in the estimated project cost table below. These contracts are funded by the Grandview 2 TIF District with 21-year bonds. Some of the contracts with consulting services were previously approved but are being amended based on the bids and construction schedule for the project. These contracts include consulting but not construction of the pedestrian bridge. The pedestrian bridge construction contract will be presented for consideration in June 2021. Information / Background: Recall the HRA approved engineering services with consultants to design and bid improvements funded by the Grandview 2 TIF District. These improvements include Eden Avenue, Brookside Avenue, Lift Station #9, Landscaping, Wayfinding & Improvements to the Grandview Parking Ramp and a Pedestrian Bridge & Sidewalk connection to Arcadia Avenue from the Grandview Parking Ramp. The Funds must be committed by June 26, 2021. Bids have been opened for all elements except the pedestrian bridge. Based on the bids, staff is recommending the following public improvements. STAFF REPORT Page 2 Estimated Project Costs Item Project Cost (1) Grandview 2 TIF Eden & Brookside Avenues Eden & Brookside Avenues Transportation & Utility with S.M. Hentges & Sons $4,193,498.55 Fiber Optic Relocation with EPS $16,345.00 CP Rail Bridge Permitting $30,000.00 Material Testing Services with Braun Intertec $50,675.00 Bury Overhead Power Lines on Brookside Ave with Xcel Energy $14,350.08 Benefit Review with Negall Appraisal $4,000.00 Temp. Closure of On-ramp Traffic Control with Warning Lights $1,900.00 Lift Station #9 Control Panel with IPS $55,193.63 Eden Ave Landscaping Contract with Peterson Companies $93,624.30 Engineering & Construction Services with SEH $750,632.00 Engineering & Construction Services with BARR Engineering $99,500.00 Subtotal $5,210,218.56 Grandview Parking Ramp Wayfinding, Lighting & Structural Improvements with Restoration & Construction Services $523,574.75 Security Cameras with ProTec $29,291.00 Engineering & Construction Services with Kimley-Horn $216,000.00 Subtotal $768,865.75 Project Total $5,979,084.31 Pedestrian Bridge and Sidewalk from Grandview Parking Ramp to Arcadia Ave (June Meeting Consideration) Construction Estimate as of May 7, 2021 $2,280,000.00 Bury overhead power by Xcel and private electrician TBD Material Testing Service with Braun Intertec TBD Engineering & Construction Services with Kimley-Horn $400,000 Subtotal TBD Estimated Project Total $9,000,000 1. Funded with 21-year debt and serviced with the Grandview 2 TIF District. STAFF REPORT Page 3 Public Improvement Updates Roundabout Discussions with adjacent property owners has occurred. The project requires easements from 3 properties. Staff has received confirmation from 2 of the 3 owners. Conversations continue with the 3rd owner. These conversations have led to adjustments to the project footprint. This included a smaller roundabout versus a standard size roundabout due to property impacts. This removes the ability to landscape the center area but still provides all the transportation and environmental benefits. Landscaping is still planned for boulevard areas. Highway 100 Southbound On-ramp Currently access to southbound Highway 100 can occur from 2 locations within the district that are very close to each other. These are from Vernon Avenue / 50th Street and Eden Avenue. The spacing of these is closer than the recommended spacing for highway onramps. Recall a transportation study was completed that stated the network can support closing of the SB Highway 100 On-ramp from Eden Avenue. This ramp has a long history of crashes and staff has received many complaints to address the situation. There have been 13 crashes reported in the last 4-years. Staff conducted a test closure during the weeks of April 19 and 26. Data was collected, and the results of the test are summarized in the attached traffic memo. The test confirmed the street network can support closing the on-ramp from Eden Avenue. This work is tentatively planned for 2022. Hennepin County has asked to hold on that closure until 2024 after the Vernon Avenue bridge is replaced. Staff is considering this request. Project Elements Eden and Brookside Avenues The project would include the reconstruction of Eden Avenue from Grandview Square to Highway 100 onramp, replacement of existing concrete curb and gutter except adjacent to the Avidor, installation of new concrete curb and gutter, construction of new concrete sidewalks on the north side except adjacent to the Avidor and a shared-use path on the south side. It also includes improvement to the sanitary sewer, watermain, storm sewer, and street lighting systems. Street improvements will also be completed along Brookside Avenue from Eden Avenue to the Grandview Parking Ramp. These include concrete curb and gutter, utility improvements, street lighting, and bituminous paving. Grandview Parking Ramp The project improvements include new LED lighting and security cameras on both levels of the parking ramp, wayfinding signage and monuments underneath the Jerry’s Store sign on Vernon Avenue, a monument STAFF REPORT Page 4 sign at Gus Young Lane, and updated signage on the ramp entrances. Structural improvements will also be completed based on recent inspection records. Pedestrian Bridge and Sidewalk from Grandview Parking Ramp to Arcadia Avenue Staff continues to engage consultants on design of a pedestrian connection between the Grandview Parking Ramp and Arcadia Avenue via sidewalk and a pedestrian bridge over the CP Rail. The estimated project cost is $3,000,000. CP Rail requires 10-ft high railing over the railroad tracks with screen openings no large then 2-inches by 2-inches. Staff has provided precedent images of the bridge with screening and architectural panels. The intent is to include downward facing pedestrian lighting from the railing and potentially downward facing lighting on the architectural panels. To assist with managing the budget, some of the architectural features will be bid as alternates. The schedule for this portion of the project is listed. 1. May 28, 2021 Post Bidding Documents 2. June 17, 2021 Open Bids 3. June 27, 2021 Award Contracts at HRA Meeting Image #1 Pedestrian Experience Rendering STAFF REPORT Page 5 Image #2 Rending from Grandview Parking Ramp Image #3 Example Railing Downlighting Engineers | Architects | Planners | Scientists Short Elliott Hendrickson Inc., 3535 Vadnais Center Drive, St. Paul, MN 55110-3507 651.490.2000 | 800.325.2055 | 888.908.8166 fax | sehinc.com SEH is 100% employee-owned | Affirmative Action–Equal Opportunity Employer MEMORANDUM TO: Chad Millner, PE Director of Engineering, City of Edina FROM: Erin Jordan, PE (Lic. IA, MN, WI) Leo Johnson, EIT DATE: May 14, 2021 RE: Eden Avenue Traffic Analysis – TH 100 Ramp Test Closure SEH No. 156818 14.00 PURPOSE This technical memorandum summarizes observations made before and during a test ramp closure at Eden Avenue & Trunk Highway 100 (TH 100) southbound on/off ramp. Observations include general traffic operations and queue lengths at primary study intersections. This memorandum serves as a supplemental analysis to the Eden Avenue Traffic Analysis Technical Memorandum submitted on November 13, 2020 as part of the Eden Avenue & Brookside Avenue design project in the City of Edina, Minnesota. The purpose of this memorandum is to confirm through video observation the recommendation to close the southbound TH 100 ramp on Eden Avenue. The method to confirm the feasibility to close the ramp on Eden Avenue is primarily driven by the observations made at the Vernon Avenue & TH 100 West Ramps to understand the operations due to the redistributed traffic accessing TH 100 during the peak hours. DATA COLLECTION Weekday traffic video was recorded at the following intersections within the project area, including the primary study intersections (*): 1. Vernon Avenue & Eden Avenue (Signal) 2. Vernon Avenue & Interlachen Boulevard (Signal) 3. Vernon Avenue & Arcadia Avenue (Side Street Stop Control)* 4. Vernon Avenue & TH 100 southbound on/off Ramps (Signal)* 5. W 50th Street & Grange Road (Signal) 6. Eden Avenue & Grange Road (All-Way Stop Control) 7. Eden Avenue & TH 100 southbound On-Ramp (No control) 8. Eden Avenue & Arcadia Avenue/Normandale Road (All Way Stop Control) Figure 1 shows the overall study area and intersection ID’s where turning movement counts and video data were processed. Turning movement count data was not processed at the intersection of Vernon Avenue & Arcadia Avenue; only video observations were made at this location. Weekday motor vehicle turning movement counts were processed for most of the intersections, including the intersection of Vernon Avenue & TH 100 southbound on/off ramps to understand the change in traffic demand at the open TH 100 southbound on-ramp before and during the test ramp closure on Eden Avenue. Page 2 Page 3 Table 1 summarizes the eastbound right-turning and westbound left-turning movement count data for the TH 100 ramp at the intersection of Eden Avenue & TH 100 southbound on-ramp before the ramp closure. Table 1: Eden Ave & TH 100 Southbound Ramp Peak Hour Volumes Peak Hour Eden Ave & TH 100 SB Ramp Eastbound Westbound RT LT AM Peak Hour Before Closure 167 73 PM Peak Hour Before Closure 189 88 Table 2 summarizes the eastbound right-turning and westbound left-turning count data for the TH 100 ramp at the intersection of Vernon Avenue & TH 100 southbound on/off ramps before and during the ramp closure. Table 2: Vernon Ave & TH 100 Southbound Ramp Peak Hour Volumes Peak Hour Eden Ave & TH 100 SB Ramp Eastbound Westbound RT LT AM Peak Hour Before Closure 127 89 During Closure 325 229 Added Trips +198 +140 PM Peak Hour Before Closure 152 111 During Closure 247 230 Added Trips +195 +119 The “Added Trips” shown in Table 2 generally indicate the number of vehicles added to Vernon Avenue that were redistributed from Eden Avenue during the test ramp closure. As expected, these “Added Trips” are within the same magnitude as the peak hour volumes experienced at Eden Avenue before the ramp closure, except for the westbound left-turn volume in the AM peak hour where the number of added trips is approximately double the volume experienced at Eden Avenue before the closure. The consistently higher volumes between the two data sets may be partially due to the traffic patterns varying between the two weeks and based on the understanding that restrictions due to the COVID-19 pandemic were slowly being lifted within this month. This data summary indicates that vehicles did follow the signed detour route to access TH 100 on Vernon Avenue while the Eden Avenue ramp was closed. Therefore, the video observations in the next section are assumed to have captured realistic traffic patterns. Page 4 VIDEO OBSERVATIONS – VERNON AVENUE & TH 100 SB ON/OFF RAMP This section summarizes video observations of traffic operations and queue lengths for the eastbound right-turn and westbound left-turn vehicles at the signalized intersection of Vernon Ave at TH 100 southbound on/off ramp during the observed AM and PM peak hours. Currently, the westbound lane configuration includes two travel lanes, with the inside lane being a shared through/left-turn lane. Westbound left turning vehicles experience a permissive-protected left-turn operation, which provides a lagging protected left-turn phase to help safely clear any remaining left turning vehicles. The eastbound lane configuration includes three travel lanes, with the outside lane dedicated to right-turn movements onto TH 100. The test ramp closure was conducted for two full weeks, beginning the week of April 18, 2021. Video cameras were set at this intersection to record one day before the ramp closure, on Wednesday, March 31, 2021, and on one day during the ramp closure, on Thursday, April 29, 2021. The one week between these two dates was intended to allow drivers to acclimate to the new traffic patterns due to the test ramp closure and signed detour. Below are observations made on each of these days. BEFORE THE RAMP CLOSURE (MARCH 31, 2021) AM peak hour (7:30 to 8:30 AM) − Westbound left-turn: • The queues were most frequently two vehicles or less. • The maximum queue length was four vehicles, observed once in the hour. • Left-turning vehicles were generally able to find gaps and complete the turn during the permissive yield phase. • The inside westbound shared through/left-turn lane generally experienced an even split of vehicles traveling through the intersection and vehicles making a left-turn onto the ramp. − Eastbound right-turns from Vernon Ave to southbound TH 100 did not experience queues greater than one vehicle. − Northbound queues at Arcadia Avenue & Vernon Avenue did not back up greater than four vehicles. Maximum queue length of four vehicles observed during the AM peak hour before the ramp closure. Page 5 PM peak hour (4:15 to 5:15 PM) − Westbound left-turn: • The westbound left-turn queues were most frequently two vehicles or less. • The maximum queue length was four vehicles, observed twice during the hour. • Left-turning vehicles were generally able to find gaps and complete the turn during the permissive yield phase. • The inside westbound shared through/left-turn lane generally seemed to experience more through vehicles than left-turning vehicles in this hour. − Eastbound right-turns on Vernon Ave to southbound TH 100 did not experience queues greater than one vehicle. − Northbound queues at Arcadia Avenue & Vernon Avenue did not back up greater than four vehicles. DURING THE RAMP CLOSURE (APRIL 29, 2021) AM peak hour (7:30 to 8:30 AM) − Westbound left-turn: • The westbound left-turn queues were most frequently six to seven vehicles. • Since the video located at the ramp was only able to view up to ten vehicles, a maximum queue length was determined by observing the queueing behavior at approximately 8:09 AM. At this time, a queue of ten vehicles was within view. Two vehicles turn during the permissive phase, and nine vehicles cleared during the protected left-turn phase. It was observed that four vehicles did not clear the intersection during this cycle. Therefore, the maximum queue length was estimated to be 15 vehicles. • It was found that queues from 8:00AM to 8:15 AM consistently experienced 10 or more vehicles in length maxing at 15 vehicles. • It was difficult for left-turning vehicles to find gaps in the eastbound through traffic to make a safe left-turn maneuver during the permissive phase. • During most signal cycles, the westbound queue was able to clear, except for one or two cycles during the hour. • The inside westbound shared through/left-turn lane was predominantly used by left- turning vehicles due to the consistent queues observed. Maximum queue length of four vehicles observed during the PM peak hour before the ramp closure. Page 6 − Eastbound right-turns on Vernon Ave to southbound TH 100 did not experience queues greater than one vehicle. − Northbound queues at Arcadia Avenue & Vernon Avenue did not back up greater than four vehicles. PM peak hour (4:15 to 5:15 PM) − Westbound left-turn: • The westbound left-turn queues were most frequently three to five vehicles. • The maximum queue length was eight vehicles, observed once; the queue cleared during the protected left-turn phase. • The inside westbound shared through/left-turn lane was predominantly used by left- turning vehicles. − Eastbound right-turns on Vernon Ave to southbound TH 100 did not experience queues greater than one vehicle. − Northbound queues at Arcadia Avenue & Vernon Avenue did not back up greater than four vehicles. Maximum queue length of approximately 15 vehicles (300 feet) observed during the AM peak hour during the ramp closure. Maximum queue length of approximately 8 vehicles (160 feet) observed during the AM peak hour during the ramp closure. Page 7 Figure 1 and Figure 2 show the approximate average and maximum queue lengths at Vernon Avenue & TH 100 southbound on/off ramps during the AM and PM peak hours before and during the TH 100 ramp closure on Eden Avenue. A 20-ft. vehicle length was used to approximate the total lengths shown on the figure. Page 8 Page 9 Page 10 CONCLUSION & RECOMMENDATION Based on the video observations during the test closure of the TH 100 southbound on-ramp on Eden Avenue, operations and queueing during peak periods were shown to be acceptable at the southbound TH 100 ramp intersection on Vernon Avenue. This intersection is expected to experience the biggest impact of the redistributed volume due to the proposed ramp closure. Compared to the traffic analysis performed in the Eden Avenue Traffic Analysis Technical Memorandum, the average and maximum queue lengths experienced during the test ramp closure are consistently shorter than the modeled queues and were not observed to negatively impact upstream operations or westbound vehicle progression on Vernon Avenue. The traffic patterns during the closure indicate that queue lengths increase consistently by one or two vehicles on average and extend up to 15 vehicles or more. The observed behavior showed that the inside westbound shared through/left-turn lane steadily operated as a dedicated left-turn lane than what was observed before the closure. However, operations with the existing signal timing and lane configuration remain acceptable and indicate that removing the ramp on Eden Avenue is feasible in the short-term. As traffic patterns adjust and future traffic demand increases, it is recommended that all intersections within the study area be monitored to understand if any roadway improvements or signal timing adjustments/re-coordination along Vernon Avenue are necessary. Additionally, it may be necessary to alter the lane configuration at the Vernon Avenue and TH 100 southbound on/off ramp to provide a dedicated left-turn lane to maximize capacity and improve safety. The Eden Avenue Traffic Analysis Technical Memorandum provides a low-cost, restriping alternative and a higher-cost, reconstruction alternative to provide a dedicated westbound left-turn lane. c: William Bauer, PE x:\ae\e\edina\156818\8-planning\87-rpt-stud\eden ave - test ramp closure video observations summary_20210514.docx Request for Purchase Requisition Number 1 CITY OF EDINA 4801 W 50th St., Edina, MN 55424 www.EdinaMN.gov | 952-927-8861 12100108 Department:Engineering Buyer:Chad Millner Date: 05/12/2021 Requisition Description:ENG 21-6 Eden Avenue/Brookside Avenue Improvements Vendor:S M HENTGES & SONS INC Cost:$4,193,498.55 REPLACEMENT or NEW:REPLACEM - REPLACEMENT PURCHASE SOURCE:QUOTE/BD - QUOTE/BID DESCRIPTION: Street and Utility Improvements The HRA approved engineering services with consultants to design and bid improvements funded by the Grandview 2 TIF District. These improvements include Eden Avenue, Lift Station #9, Wayfinding and Improvements to the Grandview Parking Ramp and a Pedestrian Bridge & Sidewalk connection to Arcadia Avenue from the Grandview Parking Ramp. The Funds must be committed by June 26, 2021. Bids have been opened for all elements except the pedestrian bridge. BUDGET IMPACT: This project is funded by Grandview 2 TIF funds. These funds afford us the opportunity to meet some of the goals previously identified before the expiration of the TIF district. 2 COMMUNITY IMPACT: These projects can meet many of the seven guiding principles such as enhance the district’s economic viability, design for the present and the future by pursuing logical increments of change using key parcels as stepping stones to a more vibrant, walkable, functional, attractive, and life-filled place, organize parking as an effective resource for the district by linking community parking to public and private destinations while also providing parking that is convenient for businesses and customers, improve movement within and access to the district for people of all ages by facilitating multiple modes of transportation, and preserve future transit opportunities provided by the rail corridor and create an identity and unique sense of place that incorporates natural spaces into a high quality and sustainable development reflecting Edina’s innovative development heritage. ENVIRONMENTAL IMPACT: This project involves upgrades to the sanitary sewer, storm sewer, and watermain systems, construction of new concrete curb and gutter, sidewalks, trails, complete reconstruction of bituminous pavement surfaces and landscaping. It also includes the installation of a roundabout. Roundabouts have shown to reduce the amount of emissions from vehicles because it reduces stop and go movements. Alternative construction methods utilized within the City include reclamation of existing bituminous surfaces to reuse aggregate base material, implementation of utility pipe rehabilitation through trenchless technologies thus reducing greenhouse gases associated with open cut installations. Request for Purchase Requisition Number 1 CITY OF EDINA 4801 W 50th St., Edina, MN 55424 www.EdinaMN.gov | 952-927-8861 12100109 Department:Engineering Buyer:Chad Millner Date: 05/12/2021 Requisition Description:ENG 21-6 Eden Ave/Brookside Ave Landscaping Vendor:PETERSON COMPANIES INC Cost:$93,624.30 REPLACEMENT or NEW:NEW - NEW PURCHASE SOURCE:QUOTE/BD - QUOTE/BID DESCRIPTION: Landscaping The HRA approved engineering services with consultants to design and bid improvements funded by the Grandview 2 TIF District. These improvements include Eden Avenue, Lift Station #9, Wayfinding and Improvements to the Grandview Parking Ramp and a Pedestrian Bridge & Sidewalk connection to Arcadia Avenue from the Grandview Parking Ramp. The Funds must be committed by June 26, 2021. Bids have been opened for all elements except the pedestrian bridge. BUDGET IMPACT: This project is funded by Grandview 2 TIF funds. These funds afford us the opportunity to meet some of the goals previously identified before the expiration of the TIF district. 2 COMMUNITY IMPACT: These projects can meet many of the seven guiding principles such as enhance the district’s economic viability, design for the present and the future by pursuing logical increments of change using key parcels as stepping stones to a more vibrant, walkable, functional, attractive, and life-filled place, organize parking as an effective resource for the district by linking community parking to public and private destinations while also providing parking that is convenient for businesses and customers, improve movement within and access to the district for people of all ages by facilitating multiple modes of transportation, and preserve future transit opportunities provided by the rail corridor and create an identity and unique sense of place that incorporates natural spaces into a high quality and sustainable development reflecting Edina’s innovative development heritage. ENVIRONMENTAL IMPACT: This project involves upgrades to the sanitary sewer, storm sewer, and watermain systems, construction of new concrete curb and gutter, sidewalks, trails, complete reconstruction of bituminous pavement surfaces and landscaping. It also includes the installation of a roundabout. Roundabouts have shown to reduce the amount of emissions from vehicles because it reduces stop and go movements. Alternative construction methods utilized within the City include reclamation of existing bituminous surfaces to reuse aggregate base material, implementation of utility pipe rehabilitation through trenchless technologies thus reducing greenhouse gases associated with open cut installations. Request for Purchase Requisition Number 1 CITY OF EDINA 4801 W 50th St., Edina, MN 55424 www.EdinaMN.gov | 952-927-8861 12100107 Department:Engineering Buyer:Chad Millner Date: 05/12/2021 Requisition Description:ENG 21-6 Ramp Wayfinding Signage, Lighting Vendor:RESTORATION & CONSTRUCTION SERVICES, LLC Cost:$523,574.75 REPLACEMENT or NEW:NEW - NEW PURCHASE SOURCE:QUOTE/BD - QUOTE/BID DESCRIPTION: Grandview Ramp Improvements, Wayfinding, and Lighting The HRA approved engineering services with consultants to design and bid improvements funded by the Grandview 2 TIF District. These improvements include Eden Avenue, Lift Station #9, Wayfinding and Improvements to the Grandview Parking Ramp and a Pedestrian Bridge & Sidewalk connection to Arcadia Avenue from the Grandview Parking Ramp. The Funds must be committed by June 26, 2021. Bids have been opened for all elements except the pedestrian bridge. BUDGET IMPACT: This project is funded by Grandview 2 TIF funds. These funds afford us the opportunity to meet some of the goals previously identified before the expiration of the TIF district. 2 COMMUNITY IMPACT: These projects can meet many of the seven guiding principles such as enhance the district’s economic viability, design for the present and the future by pursuing logical increments of change using key parcels as stepping stones to a more vibrant, walkable, functional, attractive, and life-filled place, organize parking as an effective resource for the district by linking community parking to public and private destinations while also providing parking that is convenient for businesses and customers, improve movement within and access to the district for people of all ages by facilitating multiple modes of transportation, and preserve future transit opportunities provided by the rail corridor and create an identity and unique sense of place that incorporates natural spaces into a high quality and sustainable development reflecting Edina’s innovative development heritage. ENVIRONMENTAL IMPACT: This project will install improvements to reduce the energy use of the lighting system of the parking ramp by using LED lighting. Request for Purchase Requisition Number 1 CITY OF EDINA 4801 W 50th St., Edina, MN 55424 www.EdinaMN.gov | 952-927-8861 12100111 Department:Engineering Buyer:Chad Millner Date: 05/13/2021 Requisition Description:ENG 21-6 CP Rail - Bridge Permit Review Vendor:CANADIAN PACIFIC RAILWAY Cost:$30,000.00 REPLACEMENT or NEW:NEW - NEW PURCHASE SOURCE:SERVIC K - SERVICE CONTRACT DESCRIPTION: Bridge Permit Review Services with CP Rail The HRA approved engineering services with consultants to design and bid improvements funded by the Grandview 2 TIF District. These improvements include Eden Avenue, Lift Station #9, Wayfinding and Improvements to the Grandview Parking Ramp and a Pedestrian Bridge & Sidewalk connection to Arcadia Avenue from the Grandview Parking Ramp. The Funds must be committed by June 26, 2021. Bids have been opened for all elements except the pedestrian bridge. BUDGET IMPACT: This project is funded by Grandview 2 TIF funds. These funds afford us the opportunity to meet some of the goals previously identified before the expiration of the TIF district. 2 COMMUNITY IMPACT: These projects can meet many of the seven guiding principles such as enhance the district’s economic viability, design for the present and the future by pursuing logical increments of change using key parcels as stepping stones to a more vibrant, walkable, functional, attractive, and life-filled place, organize parking as an effective resource for the district by linking community parking to public and private destinations while also providing parking that is convenient for businesses and customers, improve movement within and access to the district for people of all ages by facilitating multiple modes of transportation, and preserve future transit opportunities provided by the rail corridor and create an identity and unique sense of place that incorporates natural spaces into a high quality and sustainable development reflecting Edina’s innovative development heritage. ENVIRONMENTAL IMPACT:NA Service Contract Request for Purchase Requisition Number 1 CITY OF EDINA 4801 W 50th St., Edina, MN 55424 www.EdinaMN.gov | 952-927-8861 12100112 Department:Engineering Buyer:Chad Millner Date: 05/13/2021 Requisition Description:ENG 21-6 Grandview Ramp Security Cameras Vendor:PRO-TEC DESIGN INC Cost:$29,291.00 REPLACEMENT or NEW:NEW - NEW PURCHASE SOURCE:SERVIC K - SERVICE CONTRACT DESCRIPTION: Grandview Ramp Security Camera's The HRA approved engineering services with consultants to design and bid improvements funded by the Grandview 2 TIF District. These improvements include Eden Avenue, Lift Station #9, Wayfinding and Improvements to the Grandview Parking Ramp and a Pedestrian Bridge & Sidewalk connection to Arcadia Avenue from the Grandview Parking Ramp. The Funds must be committed by June 26, 2021. Bids have been opened for all elements except the pedestrian bridge. BUDGET IMPACT: This project is funded by Grandview 2 TIF funds. These funds afford us the opportunity to meet some of the goals previously identified before the expiration of the TIF district. 2 COMMUNITY IMPACT: These projects can meet many of the seven guiding principles such as enhance the district’s economic viability, design for the present and the future by pursuing logical increments of change using key parcels as stepping stones to a more vibrant, walkable, functional, attractive, and life-filled place, organize parking as an effective resource for the district by linking community parking to public and private destinations while also providing parking that is convenient for businesses and customers, improve movement within and access to the district for people of all ages by facilitating multiple modes of transportation, and preserve future transit opportunities provided by the rail corridor and create an identity and unique sense of place that incorporates natural spaces into a high quality and sustainable development reflecting Edina’s innovative development heritage. ENVIRONMENTAL IMPACT:NA Service Contract Request for Purchase Requisition Number 1 CITY OF EDINA 4801 W 50th St., Edina, MN 55424 www.EdinaMN.gov | 952-927-8861 12100114 Department:Engineering Buyer:Chad Millner Date: 05/13/2021 Requisition Description:ENG 21-6 Eden Ave/Brookside Ave Materials Testing Vendor:BRAUN INTERTEC CORPORATION Cost:$37,865.00 REPLACEMENT or NEW:NEW - NEW PURCHASE SOURCE:SERVIC K - SERVICE CONTRACT DESCRIPTION: Street and Utility Material Testing The HRA approved engineering services with consultants to design and bid improvements funded by the Grandview 2 TIF District. These improvements include Eden Avenue, Lift Station #9, Wayfinding and Improvements to the Grandview Parking Ramp and a Pedestrian Bridge & Sidewalk connection to Arcadia Avenue from the Grandview Parking Ramp. The Funds must be committed by June 26, 2021. Bids have been opened for all elements except the pedestrian bridge. BUDGET IMPACT: This project is funded by Grandview 2 TIF funds. These funds afford us the opportunity to meet some of the goals previously identified before the expiration of the TIF district. 2 COMMUNITY IMPACT: These projects can meet many of the seven guiding principles such as enhance the district’s economic viability, design for the present and the future by pursuing logical increments of change using key parcels as stepping stones to a more vibrant, walkable, functional, attractive, and life-filled place, organize parking as an effective resource for the district by linking community parking to public and private destinations while also providing parking that is convenient for businesses and customers, improve movement within and access to the district for people of all ages by facilitating multiple modes of transportation, and preserve future transit opportunities provided by the rail corridor and create an identity and unique sense of place that incorporates natural spaces into a high quality and sustainable development reflecting Edina’s innovative development heritage. ENVIRONMENTAL IMPACT: NA Service Contract Request for Purchase Requisition Number 1 CITY OF EDINA 4801 W 50th St., Edina, MN 55424 www.EdinaMN.gov | 952-927-8861 12100116 Department:Engineering Buyer:Chad Millner Date: 05/13/2021 Requisition Description:ENG 21-6 Eden Ave/Brookside Ave LS #9 Panel Vendor:INTEGRATED PROCESS SOLUTIONS, INC. Cost:$55,193.63 REPLACEMENT or NEW:NEW - NEW PURCHASE SOURCE:QUOTE/BD - QUOTE/BID DESCRIPTION: The HRA approved engineering services with consultants to design and bid improvements funded by the Grandview 2 TIF District. These improvements include Eden Avenue, Lift Station #9, Wayfinding and Improvements to the Grandview Parking Ramp and a Pedestrian Bridge & Sidewalk connection to Arcadia Avenue from the Grandview Parking Ramp. The Funds must be committed by June 26, 2021. Bids have been opened for all elements except the pedestrian bridge. BUDGET IMPACT: This project is funded by Grandview 2 TIF funds. These funds afford us the opportunity to meet some of the goals previously identified before the expiration of the TIF district. 2 COMMUNITY IMPACT: These projects can meet many of the seven guiding principles such as enhance the district’s economic viability, design for the present and the future by pursuing logical increments of change using key parcels as stepping stones to a more vibrant, walkable, functional, attractive, and life-filled place, organize parking as an effective resource for the district by linking community parking to public and private destinations while also providing parking that is convenient for businesses and customers, improve movement within and access to the district for people of all ages by facilitating multiple modes of transportation, and preserve future transit opportunities provided by the rail corridor and create an identity and unique sense of place that incorporates natural spaces into a high quality and sustainable development reflecting Edina’s innovative development heritage. ENVIRONMENTAL IMPACT:NA Service Contract Request for Purchase Requisition Number 1 CITY OF EDINA 4801 W 50th St., Edina, MN 55424 www.EdinaMN.gov | 952-927-8861 12100120 Department:Engineering Buyer:Chad Millner Date: 05/18/2021 Requisition Description:ENG 21-6 Eden Ave/Brookside Ave Consulting Services Vendor:SHORT-ELLIOT-HENDRICKSON INCORPORATED Cost:$174,958.00 REPLACEMENT or NEW:NEW - NEW PURCHASE SOURCE:SERVIC K - SERVICE CONTRACT DESCRIPTION: Additional Consulting Services The HRA approved engineering services with consultants to design and bid improvements funded by the Grandview 2 TIF District. These improvements include Eden Avenue, Lift Station #9, Wayfinding and Improvements to the Grandview Parking Ramp and a Pedestrian Bridge & Sidewalk connection to Arcadia Avenue from the Grandview Parking Ramp. The Funds must be committed by June 26, 2021. Bids have been opened for all elements except the pedestrian bridge. BUDGET IMPACT: This project is funded by Grandview 2 TIF funds. These funds afford us the opportunity to meet some of the goals previously identified before the expiration of the TIF district. 2 COMMUNITY IMPACT: These projects can meet many of the seven guiding principles such as enhance the district’s economic viability, design for the present and the future by pursuing logical increments of change using key parcels as stepping stones to a more vibrant, walkable, functional, attractive, and life-filled place, organize parking as an effective resource for the district by linking community parking to public and private destinations while also providing parking that is convenient for businesses and customers, improve movement within and access to the district for people of all ages by facilitating multiple modes of transportation, and preserve future transit opportunities provided by the rail corridor and create an identity and unique sense of place that incorporates natural spaces into a high quality and sustainable development reflecting Edina’s innovative development heritage. ENVIRONMENTAL IMPACT: NA Service Contract Request for Purchase Requisition Number 1 CITY OF EDINA 4801 W 50th St., Edina, MN 55424 www.EdinaMN.gov | 952-927-8861 12100119 Department:Engineering Buyer:Chad Millner Date: 05/18/2021 Requisition Description:ENG 21-6 Grandview Parking Ramp & Wayfinding Vendor:KIMLEY-HORN AND ASSOCIATES INC Cost:$10,000.00 REPLACEMENT or NEW:NEW - NEW PURCHASE SOURCE:SERVIC K - SERVICE CONTRACT DESCRIPTION: Additional Consulting Services The HRA approved engineering services with consultants to design and bid improvements funded by the Grandview 2 TIF District. These improvements include Eden Avenue, Lift Station #9, Wayfinding and Improvements to the Grandview Parking Ramp and a Pedestrian Bridge & Sidewalk connection to Arcadia Avenue from the Grandview Parking Ramp. The Funds must be committed by June 26, 2021. Bids have been opened for all elements except the pedestrian bridge. BUDGET IMPACT: This project is funded by Grandview 2 TIF funds. These funds afford us the opportunity to meet some of the goals previously identified before the expiration of the TIF district. 2 COMMUNITY IMPACT: These projects can meet many of the seven guiding principles such as enhance the district’s economic viability, design for the present and the future by pursuing logical increments of change using key parcels as stepping stones to a more vibrant, walkable, functional, attractive, and life-filled place, organize parking as an effective resource for the district by linking community parking to public and private destinations while also providing parking that is convenient for businesses and customers, improve movement within and access to the district for people of all ages by facilitating multiple modes of transportation, and preserve future transit opportunities provided by the rail corridor and create an identity and unique sense of place that incorporates natural spaces into a high quality and sustainable development reflecting Edina’s innovative development heritage. ENVIRONMENTAL IMPACT: NA Service Contract Request for Purchase Requisition Number 1 CITY OF EDINA 4801 W 50th St., Edina, MN 55424 www.EdinaMN.gov | 952-927-8861 12100121 Department:Engineering Buyer:Chad Millner Date: 05/18/2021 Requisition Description:ENG 21-6 Eden Ave Lift Station Consulting Services Vendor:BARR ENGINEERING CO Cost:$20,000.00 REPLACEMENT or NEW:NEW - NEW PURCHASE SOURCE:SERVIC K - SERVICE CONTRACT DESCRIPTION: Additional Consulting Services The HRA approved engineering services with consultants to design and bid improvements funded by the Grandview 2 TIF District. These improvements include Eden Avenue, Lift Station #9, Wayfinding and Improvements to the Grandview Parking Ramp and a Pedestrian Bridge & Sidewalk connection to Arcadia Avenue from the Grandview Parking Ramp. The Funds must be committed by June 26, 2021. Bids have been opened for all elements except the pedestrian bridge. BUDGET IMPACT: This project is funded by Grandview 2 TIF funds. These funds afford us the opportunity to meet some of the goals previously identified before the expiration of the TIF district. 2 COMMUNITY IMPACT: These projects can meet many of the seven guiding principles such as enhance the district’s economic viability, design for the present and the future by pursuing logical increments of change using key parcels as stepping stones to a more vibrant, walkable, functional, attractive, and life-filled place, organize parking as an effective resource for the district by linking community parking to public and private destinations while also providing parking that is convenient for businesses and customers, improve movement within and access to the district for people of all ages by facilitating multiple modes of transportation, and preserve future transit opportunities provided by the rail corridor and create an identity and unique sense of place that incorporates natural spaces into a high quality and sustainable development reflecting Edina’s innovative development heritage. ENVIRONMENTAL IMPACT: NA Consulting Services Request for Purchase Requisition Number 1 CITY OF EDINA 4801 W 50th St., Edina, MN 55424 www.EdinaMN.gov | 952-927-8861 12100117 Department:Engineering Buyer:Chad Millner Date: 05/18/2021 Requisition Description:ENG 21-6 Grandview Pedestrian Bridge Vendor:KIMLEY-HORN AND ASSOCIATES INC Cost:$300,000.00 REPLACEMENT or NEW:NEW - NEW PURCHASE SOURCE:SERVIC K - SERVICE CONTRACT DESCRIPTION: Final Design, Bidding, and Construction Phase Services The HRA approved engineering services with consultants to design and bid improvements funded by the Grandview 2 TIF District. These improvements include Eden Avenue, Lift Station #9, Wayfinding and Improvements to the Grandview Parking Ramp and a Pedestrian Bridge & Sidewalk connection to Arcadia Avenue from the Grandview Parking Ramp. The Funds must be committed by June 26, 2021. Bids have been opened for all elements except the pedestrian bridge. BUDGET IMPACT: This project is funded by Grandview 2 TIF funds. These funds afford us the opportunity to meet some of the goals previously identified before the expiration of the TIF district. 2 COMMUNITY IMPACT: These projects can meet many of the seven guiding principles such as enhance the district’s economic viability, design for the present and the future by pursuing logical increments of change using key parcels as stepping stones to a more vibrant, walkable, functional, attractive, and life-filled place, organize parking as an effective resource for the district by linking community parking to public and private destinations while also providing parking that is convenient for businesses and customers, improve movement within and access to the district for people of all ages by facilitating multiple modes of transportation, and preserve future transit opportunities provided by the rail corridor and create an identity and unique sense of place that incorporates natural spaces into a high quality and sustainable development reflecting Edina’s innovative development heritage. ENVIRONMENTAL IMPACT: NA Service Contract Request for Purchase Requisition Number 1 CITY OF EDINA 4801 W 50th St., Edina, MN 55424 www.EdinaMN.gov | 952-927-8861 12100118 Department:Engineering Buyer:Chad Millner Date: 05/18/2021 Requisition Description:ENG 21-6 Grandview Pedestrian Bridge Vendor:BRAUN INTERTEC CORPORATION Cost:$18,970.00 REPLACEMENT or NEW:NEW - NEW PURCHASE SOURCE:SERVIC K - SERVICE CONTRACT DESCRIPTION: Material and Geotech Services The HRA approved engineering services with consultants to design and bid improvements funded by the Grandview 2 TIF District. These improvements include Eden Avenue, Lift Station #9, Wayfinding and Improvements to the Grandview Parking Ramp and a Pedestrian Bridge & Sidewalk connection to Arcadia Avenue from the Grandview Parking Ramp. The Funds must be committed by June 26, 2021. Bids have been opened for all elements except the pedestrian bridge. BUDGET IMPACT: This project is funded by Grandview 2 TIF funds. These funds afford us the opportunity to meet some of the goals previously identified before the expiration of the TIF district. 2 COMMUNITY IMPACT: These projects can meet many of the seven guiding principles such as enhance the district’s economic viability, design for the present and the future by pursuing logical increments of change using key parcels as stepping stones to a more vibrant, walkable, functional, attractive, and life-filled place, organize parking as an effective resource for the district by linking community parking to public and private destinations while also providing parking that is convenient for businesses and customers, improve movement within and access to the district for people of all ages by facilitating multiple modes of transportation, and preserve future transit opportunities provided by the rail corridor and create an identity and unique sense of place that incorporates natural spaces into a high quality and sustainable development reflecting Edina’s innovative development heritage. ENVIRONMENTAL IMPACT: NA Consulting Services Request for Purchase Requisition Number 1 CITY OF EDINA 4801 W 50th St., Edina, MN 55424 www.EdinaMN.gov | 952-927-8861 12100110 Department:Engineering Buyer:Chad Millner Date: 05/12/2021 Requisition Description:ENG 21-6 Eden Avenue Fiber Relocation Vendor:ELECTRICAL PRODUCTION SERVICES, INC. Cost:$16,345.00 REPLACEMENT or NEW:NEW - NEW PURCHASE SOURCE:SERVIC K - SERVICE CONTRACT DESCRIPTION: Install Fiber Optic Infrastructure The HRA approved engineering services with consultants to design and bid improvements funded by the Grandview 2 TIF District. These improvements include Eden Avenue, Lift Station #9, Wayfinding and Improvements to the Grandview Parking Ramp and a Pedestrian Bridge & Sidewalk connection to Arcadia Avenue from the Grandview Parking Ramp. The Funds must be committed by June 26, 2021. Bids have been opened for all elements except the pedestrian bridge. BUDGET IMPACT: This project is funded by Grandview 2 TIF funds. These funds afford us the opportunity to meet some of the goals previously identified before the expiration of the TIF district. 2 COMMUNITY IMPACT: These projects can meet many of the seven guiding principles such as enhance the district’s economic viability, design for the present and the future by pursuing logical increments of change using key parcels as stepping stones to a more vibrant, walkable, functional, attractive, and life-filled place, organize parking as an effective resource for the district by linking community parking to public and private destinations while also providing parking that is convenient for businesses and customers, improve movement within and access to the district for people of all ages by facilitating multiple modes of transportation, and preserve future transit opportunities provided by the rail corridor and create an identity and unique sense of place that incorporates natural spaces into a high quality and sustainable development reflecting Edina’s innovative development heritage. ENVIRONMENTAL IMPACT: NA Service Contract Barr Engineering Co. 4300 MarketPointe Drive, Suite 200, Minneapolis, MN 55435 952.832.2600 www.barr.com May 10, 2021 Mr. Chad Millner Engineering Department City of Edina 7450 Metro Boulevard Edina, MN 55439 Re: City of Edina Lift Station 9 Replacement – Additional Budget Request Barr Project #23271827 Dear Mr. Millner: This letter serves as a request for additional budget related to the above-mentioned project. It is not anticipated that the remaining budget ($4,270) will be enough for the construction phase services related to the lift station. Below is a summary of budget approved and spent to date: Project Phase Approved Budget Spent to Date (through 5/7/2021) Preliminary Engineering $30,000 $19,730 Final Design and Construction Oversite $49,500 $55,500 (est.) Total $79,500 $75,230 The scope of the project has changed in the following ways: - Power source for new lift station modified from assumed location (power now sourced from WTP6). - Backup power generation source modified. - Lift station, gravity sewer to lift station, and forcemain redesigned after intersection modified from full round-a-bout to a mini round-a-bout. - Barr provided sanitary permitting assistance to SEH. - Construction over a 2-year construction period (assumes more coordination and staff billing rate increases). Due to these changes, Barr is requesting an additional $20,000 be added to the contract amount, which will bring the total contract amount to $99,500. The remaining budget and additional budget request will cover the following construction-related tasks: - Assist with the bidding/contract award process - Minor modifications to IFC drawings (if needed) Mr. Chad Millner May 10, 2021 Page 2 \\barr.com\projects\Mpls\23 MN\27\23271827 LS-9 Upgrades\01 Edina LS-9 Design\ProjRiskMgmt\Additional Budget Letter_20210510.docx - Barr staff onsite for six, 4-hour construction visits - Barr will attend pre-construction meeting and up to 6 additional construction meetings - Barr will review submittals and shop drawings and prepare RFI responses - Barr will coordinate with IPS and the City related to lift station control panel construction and coordination - Barr will prepare a punch list walkthrough after substantial completion - Barr will prepare AutoCAD and PDF files of record drawings Barr understands that this project is being funded using TIF funds, and future requests for additional budget may not be available. We will complete this work on a time and expense basis and will only bill you for time and expenses actually incurred. It is assumed that this scope will be completed by the end of 2022. Barr will complete the proposed scope in accordance with the May 2013 Master Agreement for Professional Engineering Services in place with the City of Edina. If this letter is satisfactory, please sign this letter in the space provided, and return it to us. Sincerely yours, BARR ENGINEERING CO. Jon M. Minne Its Vice President Accepted this ____________ day of ___________________, 20____ City of Edina By Its kimley-horn.com 767 Eustis Street, Suite 100, St. Paul, MN 55114 651 645 4197 April 16, 2021 Mr. Chad Millner Director of Engineering City of Edina 7450 Metro Boulevard Edina, MN 55439 RE: City of Edina – Grandview TIF District Improvements – Pedestrian Bridge and Trail Supplemental Agreement to Master Agreement for Professional Engineering Services Dear Mr. Millner: Kimley-Horn is pleased to submit this Supplemental Agreement for design and construction administration services in the Grandview TIF District for a new pedestrian bridge, trail, walls and connection structure to the parking ramp (Grandview Ramp) owned by the City of Edina (City) located at 5106 Brookside Avenue. This Supplemental Agreement amends the July 23, 2020 agreement for planning and design services. The work will be performed in accordance with Kimley-Horn’s Master Services Agreement with the City. Project Understanding The City is updating the Grandview TIF District capital improvement plan. The City has requested Kimley-Horn provide design and construction phase services for the following:  Prefabricated pedestrian bridge over the railroad connecting the new development at the former public works site to the Grandview Ramp  Shared use trail from Arcadia St to the new prefabricated pedestrian bridge, including retaining walls on the north and south side of the trail  Connection structure from the prefabricated bridge to the top level of the Grandview Ramp  Bridge visual quality evaluation and aesthetic design incorporating Confluence as a subconsultant to provide input on Grandview district public realm themes and integration with adjacent redevelopment architecture The City will assemble the Grandview TIF District capital improvement plan using this information, along with other work being performed by the City or their consultants. Design needs to be expedited in order to complete bidding and contract award before the end of June 2021. Construction is anticipated in 2021 - 2022. The work is to be coordinated with the development project on the former public works site, however the development project design may not be advanced far enough, based on this aggressive schedule, to understand how earthwork and retaining wall costs may be optimized. It is assumed the south side of the proposed trail will be supported on approximately 30’ tall walls, some of which may be buried or removed as part of the development project. Page 2 kimley-horn.com 767 Eustis Street, Suite 100, St. Paul, MN 55114 651 645 4197 The design process will be completed in two phases. The first phase will be 50% design, which will lead to a construction cost estimate prepared by the City’s cost estimator (RJM). The goal is to design a project with a construction cost under $2M. If the construction cost estimate is under $2M, the City will authorize Kimley-Horn to complete bidding documents and authorize construction administration services. Scope of Services Kimley-Horn will provide the services specifically set forth below. Task 1: Concept Development and 50% Plans  Development of bridge type, size, and location for the proposed railroad crossing, tie into Grandview ramp, and approach retaining walls for Arcadia Street approach. o Concept layout of the bridge, with ADA tie-in to the Grandview ramp and the retaining wall supported grade to Arcadia Street. Assumes one bridge alternative consisting of prefabricated metal truss superstructure. o Preliminary civil and structural design and plans for bridge, ramp tie-in, retaining walls, trail and civil improvements o Coordination with the adjacent site developer to accommodate the Public Works site redevelopment improvements with the bridge crossing and trail o Review and approval from the City of Edina staff o Coordination with City’s cost estimator (RJM). RJM will provide all cost estimates. o Assumes survey and geotechnical data will be provided by City.  Bridge visual quality evaluation o Precedent imagery showing variety of bridge geometries and enhancements to provide visual quality for City staff to determine bridge type and aesthetics. o Terry Minarik from Confluence will provide visual quality input from his knowledge of the Grandview district public realm themes and the architecture of the redevelopment at the former public works facility  Deliverables o Precedent imagery for bridge type and visual quality o 50% plans Task 2: Meetings  Meetings o Weekly progress meetings to discuss project concept, visual quality decisions. Assumes up to four (4) meetings attended by up to four (4) Kimley-Horn staff. o Railroad coordination meetings with CP Rail to discuss easements and permits required by the project. Assumes up to three (3) meetings attended by up to two (2) Kimley-Horn staff. Page 3 kimley-horn.com 767 Eustis Street, Suite 100, St. Paul, MN 55114 651 645 4197 o Stakeholder meetings with adjacent property owners, such as developer of former public works site, Starbucks and Jerrys. Assumes up to two (2) meetings attended by up to two (2) Kimley-Horn staff. o Utility coordination meeting with public and private utility owners. Assumes one (1) meeting attended by up to two (2) Kimley-Horn staff.  Deliverables o Meeting agendas and summaries Task 3: Final Design and Bidding  Design and prepare construction documents for bidding o Final design of the bridge, bridge abutments, parking ramp modifications to the exterior façade to accept trail access, bridge to ramp tie in structure, retaining walls, trail and landscape features. o Construction documents including project manual, technical specifications, and plans for the proposed trail bridge crossing and associated improvements o Coordination of earthwork and retaining walls with the adjacent former public works site redevelopment improvements  Bidding o Prepare advertisement for bids, answer questions during bidding, prepare addenda, tabulate bids and provide City with a recommendation of award letter.  Deliverables o Construction documents for bidding o Ad for bids, addenda and bid tabulation Task 4: Construction Administration  Construction Administration o Prepare Notice of Award, Contract and NPDES permit o Preconstruction meeting and periodic construction meetings. Assumes twenty (20) total meetings, including preconstruction meeting. o Full-time on-site construction observation. Assumes twenty (20) weeks of construction with on average forty (40) hours per week of construction observation time. o Review and respond to contractor product submittals, requests for information and change order requests. o Prepare pay applications and change orders. Assumes five (5) pay applications and up to four (4) change orders. o Prepare record drawings identifying any plan revisions or field changes noted by the contractor. o Kimley-Horn will subcontract with a surveyor to do construction staking and will contract with a geotechnical firm to do material testing. Assumes a budget of $20k total for both subconsultants.  Deliverables Page 4 kimley-horn.com 767 Eustis Street, Suite 100, St. Paul, MN 55114 651 645 4197 o Meeting agendas and summaries o Pay applications o Change orders o Record drawings Additional Services Any services not specifically provided for in the above scope will be billed as additional services and performed at our then current hourly rates. Additional services we can provide include, but are not limited to, the following:  Redesign after 50% plans to meet construction budget  Topographic surveying  Geotechnical services  Architectural services Schedule We will provide our services based on the following schedule: HRA Approves Kimley-Horn Agreement April 22, 2021 Kimley-Horn Receives Notice to Proceed April 23, 2021 Concept Development and 50% Plans for RJM Cost Estimate May 10, 2020 Final Plans and Advertisement of Construction Documents June 1, 2021 Bid Opening June 17, 2021 HRA Award Construction Contract June 24, 2021 TIF Bonding Completed June 30, 2021 Construction Phase Services July 2021 – December 2022 Fee and Billing Kimley-Horn will perform the services in Tasks 1 - 3 on a lump sum basis and Task 4 on a labor fee plus expense basis with the maximum total fee shown below. The fee is based on the scope of work related to a project with an estimated construction cost estimate of $2.0M. Fees will be authorized in phases, with Task 1 and 2 authorized by the City first and Task 3 and 4 authorized by the City on May 10, 2021 after evaluating construction cost estimates by RJM. If construction cost estimates are not favorable the City may not authorize Task 3 and 4. Proposed Fee Task 1: Concept Development and 50% Plans $ 90,000 Task 2: Meetings $ 10,000 Task 3: Final Design and Bidding $100,000 Task 4: Construction Administration $200,000 Total Fee $400,000 Page 5 kimley-horn.com 767 Eustis Street, Suite 100, St. Paul, MN 55114 651 645 4197 Kimley-Horn will not exceed the total fee shown without authorization from the Client. Individual task amounts are provided for budgeting purposes only. Kimley-Horn reserves the right to reallocate amounts among tasks as necessary. Kimley-Horn will perform the services in Tasks 1 - 3 for the total lump sum fee of $200,000. The fee will be authorized in two phases. Task 1 and 2 will be authorized first. Based on RJM’s construction cost estimate, if the City choses to proceed to final design Task 3 will be authorized. All permitting, application, and similar project fees will be paid directly by the Client. Lump sum fees will be invoiced monthly based upon the overall percentage of services performed. Payment will be due within 25 days of your receipt of the invoice and should include the invoice number and Kimley-Horn project number. If the City chooses to proceed to final design, after Task 1 and 2 are completed, the City will authorize Task 4. Kimley-Horn will perform the services in Task 4 on an hourly basis according to our then- current rates. A percentage of labor fee will be added to each invoice to cover certain expenses as to these tasks such as telecommunications, in-house reproduction, postage, supplies, project related computer time, and local mileage. Administrative time related to the project may be billed hourly. All permitting, application, and similar project fees will be paid directly by the Client. Fees will be invoiced monthly based. Payment will be due within 25 days of the date of the invoice. In addition to the matters set forth herein, our Agreement shall include and be subject to, and only to, the terms and conditions of the Master Agreement for Professional Engineering Service between the City and Kimley Horn and Associates, Inc. dated August 16, 2013. If you concur in all the foregoing and wish to direct us to proceed with the services, please have authorized persons execute both copies of this Supplemental Agreement in the spaces provided below, retain one copy, and return the other to us. We appreciate this opportunity to continue our services to the City of Edina. Please contact me at 651-643-0451 if you have any questions. Very truly yours, KIMLEY-HORN AND ASSOCIATES, INC. Daniel J. Coyle, P.E. Project Manager / Vice President Agreed to this day of , 2021. Page 6 kimley-horn.com 767 Eustis Street, Suite 100, St. Paul, MN 55114 651 645 4197 CITY OF EDINA BY:________________________________ Chad Millner. Engineering Director Service Centers: Bemidji MN, Big Lake MN, Farmington MN, Perham MN, Rugby ND, Watertown SD, West Bend WI, Merrill WI Date: April 16, 2021 Project: Edina SCADA Improvements – Lift Station No. 9 Change Order Engineer: AE2S Project Location: Edina, MN Bid Date: RFP Project Number: J001993 Integrated Process Solutions, Inc. is pleased to provide the following proposal for the above referenced project. Our proposal is based on typical lift station design provided by AE2S on the Edina SCADA Improvements project. Quantity one (1) Outdoor Lift Station Control Panel including: Nema 4X Enclosure Double Door Enclosure Leg Kits SS Skirt Inner Doors Fan & Vent Kit Interior Panel Light Main Circuit Breaker/Generator Circuit Breaker Mechanically Interlocked Generator Receptacle Surge Protection Feeder Breakers Two (2) 480V, 3P, 20HP, 26FLA Variable Frequency Drives Inner Door Mounted HIM Modules Control Voltage Transformer Condensation Heater & Thermostat UPS DC Power Supply CompactLogix Programmable Logic Controller Panelview Plus Operator Interface Terminal Network Switch Radio Intrinsic Safe Barriers (Seal Fail Modules by Pump Supplier) Pilot Lights Selector Switches Interface Relays Misc. Interface Hardware Quantity one (1) Lot Instrumentation and Field Hardware including: Two (2) Float Switches One (1) Submersible Level Transmitter One (1) Anchor, SS Cable, Mounting Hardware One (1) Radio Antenna, Cable, Connectors General Services Submittals and system drawings Panel fabrication and UL listing Factory testing Freight to the jobsite Startup and implementation VFD configuration and startup System Training Warranty O&M Manuals Exclusions Concrete Pad Installation of Equipment Electrical Wiring Utility Coordination Utility Meter Socket Thank you for the opportunity to provide our proposal to you for your consideration. Should you have questions or require further information concerning this proposal, please contact me at 218- 435-1703. We look forward to earning your business, Peter J. Nelson Integrated Process Solutions, Inc. CO # 1 DATE:4/15/2021 J001931 OWNER: PROJECT: ENGINEER: CONTRACTOR: Type No.Description Qty Unit Unit Cost Total LABOR CO-R0020 Labor - Project Management 8 Hour 125.00$ 1,000.00$ LABOR CO-R0030 Labor - Engineering 16 Hour 125.00$ 2,000.00$ LABOR CO-R0040 Labor - Programming Any Hour 125.00$ -$ LABOR CO-R0060 Labor - AutoCAD 21 Hour 95.00$ 1,995.00$ LABOR CO-R0080 Labor - Field Serv StartUp Engineer 16 Hour 125.00$ 2,000.00$ LABOR CO-R0080 Labor - Field Serv StartUp Tech Hour 105.00$ -$ LABOR CO-R0090 Labor - Electrical PW Labor Hour 125.00$ -$ LABOR CO-R0090 Labor - Material Procurement 8 Hour 95.00$ 760.00$ LABOR CO-R0100 Labor - Media 4 Hour 55.00$ 220.00$ LABOR CO-R0160 Labor - Production 120 Hour 75.00$ 9,000.00$ LABOR CO-R0940 Labor - Factory Testing 8 Hour 75.00$ 600.00$ LABOR CO-R0940 Labor - Material Packaging and Handling for Shipping 4 Hour 75.00$ 300.00$ MISC Mileage 50 Mile 0.65$ 32.50$ ?Labor - Travel 2 Hour 95.00$ 190.00$ MISC Hotel and Per Diem (Based on 8 Hours Day)Day 180.00$ -$ 257 TOTAL LABOR 18,097.50$ LABOR CO-R1000 Labor - Subcontractor LS -$ -$ LABOR CO-R1000 Material - Subcontractor LS -$ -$ MARKUP 10%Subcontractor 10% Markup -$ TOTAL SUBCONTRACTOR -$ ITEM Lift Station Control Panel Materials 1 LS 29,500.00$ 29,500.00$ ITEM Freight 1 Each 500.00$ 500.00$ ITEM Each -$ -$ ITEM Each -$ -$ ITEM Each -$ -$ ITEM Each -$ -$ ITEM Each -$ -$ ITEM Each -$ -$ ITEM Each -$ -$ ITEM Each -$ -$ ITEM Each -$ -$ ITEM Each -$ -$ ITEM Each -$ -$ 30,000.00$ MARKUP 15%Material 15% Markup 4,500.00$ TOTAL MATERIAL 34,500.00$ 18,097.50$ -$ 34,500.00$ $2,596.13 55,193.63$ Estimated Change in Contract Price: Increase 55,193.63$ Increase Days 30 Decrease Decrease Days WORK CHANGE REQUEST IPS Project No. Edina PWK 20-003 SCADA Improvements Phase II City of Edina Integrated Process Solutions, Inc. AE2S Integrated Process Solutions, Inc. is pleased to provide the following proposal for: Lift Station No. 9 Control Panel Estimate Change in Contract Times: Material Subtotal Tax Labor from Above Total Subcontractor from Above Material from Above AA/EOE Braun Intertec Corporation 11001 Hampshire Avenue S Minneapolis, MN 55438 Phone: 952.995.2000 Fax: 952.995.2020 Web: braunintertec.com May 5, 2021 Proposal QTB138630 Chad Millner, PE City of Edina 7450 Metro Boulevard Edina, MN 55439 Re: Proposal for Construction Materials Testing Services Eden Avenue & Brookside Avenue Improvements City Project No. ENG-21004 Edina, Minnesota Dear Mr. Millner: Braun Intertec Corporation is pleased to submit this proposal to provide construction materials testing services for the Eden Avenue and Brookside Avenue Improvements Project in Edina, Minnesota. Since our inception in 1957, we have grown into one of the largest employee owned engineering firms in the nation. With more than 1,000 employee owners, retaining our firm gives you access to a diverse range of services and professionals you can consult with if the unforeseen occurs. The size of our company also allows us to respond quickly when schedule constraints occur. Our Understanding of Project This project will include reconstructing the street along Eden Avenue between Grandview Square and Highway 100, as well as Brookside Avenue from Eden Avenue to 400 feet north of the intersection. The construction will include pavement subgrade preparation, select granular embankment placement in areas of extra subgrade excavation, aggregate base placement, new concrete curb and gutter, sidewalk, driveways, light pole bases and a sign footing along with a new bituminous pavement. Improvements to the sanitary, storm, and water main utilities will also be part of this project, as well as the construction of two cast-in-place retaining walls, one modular block retaining wall and modifications to a lift station. Available Project Information This proposal was prepared using the following documents and information. ▪ Project plans prepared by Short Elliot Hendrickson Inc., (SEH), dated April 19, 2021. ▪ Project specifications prepared by the City of Edina, dated April 19, 2021. ▪ A Soil Boring and Laboratory Testing Report prepared by Braun Intertec, dated April 14, 2021. ▪ Discussions with William Bauer with SEH, Inc. and Chad Millner with the City of Edina regarding compaction testing of utility backfill, as well as compaction testing and testing rates for the construction of the retaining walls and lift station. City of Edina Proposal QTB138630 May 5, 2021 Page 2 Scope of Services Services are performed under the direction of a licensed professional engineer. Observation and testing services will be performed on an on-call, as-needed basis as requested and scheduled by you or your on- site project representative. After reviewing available information to determine compliance with project plans and/or specifications and other design or construction documents, our scope of services for the project will be limited to the tasks defined below. Soil Related Services ▪ Measure the in-place dry density, moisture content and relative compaction of retaining wall and lift station subgrade and backfill, for compliance with the project documents. This task includes performing laboratory Proctor tests to provide maximum dry densities from which the relative compaction of fill can be determined, as well as the use of a nuclear density gauge to measure in-place dry densities and moisture contents. ▪ Sample and test aggregate base, retaining wall backfill, coarse filter aggregate, lift station backfill, granular backfill and select granular embankment materials for compliance with the project documents. This task includes laboratory gradation testing of these materials. ▪ Perform MnDOT dynamic cone penetrometer (DCP) tests on aggregate base material for Modular Block Wall Leveling Pad and Lift Station Concrete Pad. Concrete Related Services ▪ Sample and test fresh concrete associated with pavement, retaining walls and/or curb-and- gutter for compliance with the project documents, and cast test cylinders for laboratory compressive strength testing. We assume that we will be able to appropriately dispose of excess concrete (and associated wash water) on site at no additional cost to us. ▪ Measure and report the compressive strength of the concrete test cylinders for compliance with the project documents. A set of three cylinders will be tested at 28 days for each set cast. If field cure cylinders are requested, each additional cylinder will be charged at the unit price listed in our cost estimate. Bituminous Related Services ▪ Sample and test bituminous pavement materials for compliance with the project documents. This task includes asphalt content and extracted aggregate gradation tests of the bituminous. Consulting, Project Communication and Reporting Services ▪ Project management, including scheduling of our field personnel. ▪ Review observation and test reports, and communicating with you and the parties you may designate such as the project contractor(s), and other project team members, as needed. ▪ Transmit test results to the project team on a weekly basis. City of Edina Proposal QTB138630 May 5, 2021 Page 3 Basis of Scope of Work The costs associated with the proposed scope of services were estimated using the following assumptions. If the construction schedule is modified or the contractor completes the various phases of the project at different frequencies or durations than shown in this proposal, we may need to adjust the overall cost accordingly. The scope of work and number of trips required to perform these services are as shown in the attached table. Notable assumptions in developing our estimate include: ▪ We assume it will take twenty-four trips to complete the nuclear density gauge testing on this project. ▪ We assume compaction testing on aggregate base material used as Modular Block Wall Leveling Pad and Lift Station Concrete Pad will be performed using the Dynamic Cone Penetration (DCP) method; a minimum of two tests will be conducted each trip with two trips assumed. ▪ We assume forty sets of concrete tests will be required to complete the project. ▪ We assume the rebar observations before concrete placements will be completed by the project representative’s construction oversight manager. ▪ We assume your full time on-site construction observer will observe the test rolling for this project. ▪ We assume six sets of bituminous tests will be required to complete the project. Based on MnDOT’s 2360 specification “ordinary compaction” we assume the contractor will provide the rolling pattern for the compaction requirements for the project. ▪ We assume the project engineer of record will review and approve contractor’s quality control submittals and test results. ▪ You, or others you may designate, will provide us with current and approved plans and specifications for the project. Modification to these plans must also be sent to us so we can review their incorporation into the work. ▪ We will require a minimum of 24 hours’ notice for scheduling inspections for a specific time. Shorter than 24 hours’ notice may impact our ability to perform the requested services, and the associated impacts will be the responsibility of others. If the work is completed at different rates than described above, this proposal should be revised. If the pace of construction is different than described above, this proposal should be revised. City of Edina Proposal QTB138630 May 5, 2021 Page 4 Cost and Invoicing We will furnish the services described herein for an estimated fee of $37,865. Our estimated costs are based on industry averages for construction production. Depending on the contractor’s performance, our costs may be significantly reduced or slightly higher than estimated. A tabulation showing our estimated hourly and/or unit rates associated with our proposed scope of services is also attached. The actual cost of our services will be based on the actual units or hours expended to meet the requirements of the project documents. This cost estimate was developed with the understanding that the scope of services defined herein will be required and requested during our normal work hours of 6:00 a.m. to 4:00 p.m., Monday through Friday. Services that we are asked to provide to meet the project requirements or the contractor’s construction schedule outside our normal business hours will be invoiced using an overtime rate factor. The factor for services provided outside our normal work hours or on Saturday will be 1.25 times the listed hourly rate for the service provided. The factor for services provided on Sunday or legal holidays will be 1.5 times the listed hourly rate for the service provided. We have not included premiums for overtime in our cost estimate; however, we recommend that allowances and contingencies be made for overtime charges based on conversations with the contractor. You will be billed only for services provided on a time and materials basis. Because our services are directly controlled by the schedule and performance of others, the actual cost may vary from our estimate. It is difficult to project all of the services and the quantity of services that may be required for any project. If services are required that are not discussed above, we will provide them at the rates shown in the attached table or, if not shown, at our current Schedule of Charges. We will invoice you on a monthly basis. General Remarks We will be happy to meet with you to discuss our proposed scope of services further and clarify the various scope components. We appreciate the opportunity to present this proposal to you. After reviewing this proposal, please sign and return one copy to our office as notification of acceptance and authorization to proceed. If anything in this proposal is not consistent with your requirements, please let us know immediately. Braun Intertec will not release any written reports until we have received a signed agreement. Also, ordering services from Braun Intertec constitutes acceptance of the terms of this proposal including the attached General Conditions. 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. City of Edina Proposal QTB138630 May 5, 2021 Page 5 We include the Braun Intertec General Conditions, which provide additional terms and are a part of our agreement. To have questions answered or schedule a time to meet and discuss our approach to this project further, please contact Colin Keane at 612.704.2674 (ckeane@braunintertec.com) or Andrew Valerius at 952.995.2242 (avalerius@braunintertec.com). Sincerely, BRAUN INTERTEC CORPORATION Colin M. Keane Staff Engineer Andrew M. Valerius Account Leader, Senior Project Manager Charles M. Cadenhead, Jr., PE Vice President, Principal Engineer Attachments: Cost Estimate Table General Conditions – CMT (1/1/18) The proposal is accepted. We will reimburse you in accordance with this agreement, and you are authorized to proceed: Authorizer’s Firm Authorizer’s Signature Authorizer’s Name (please print or type) Authorizer’s Title Date Client:Service Description:Work Site Address: Eden Avenue between Grandview Square and Highway 100 and Brookside Avenue from Eden Avenue to 400 feet North Edina, MN 55436 City of Edina Chad Millner 7450 Metro Blvd Edina, MN 55439 (926) 826-0300 Construction Materials Testing Description Quantity Units Unit Price Extension Phase 1 Construction Materials Testing Activity 1.1 Soil Testing $14,707.00 207 Compaction Testing - Nuclear 60.00 Hour 82.00 $4,920.00 Work Activity Detail Qty Units Hrs/Unit Extension Modular Block Wall Backfill 4.00 Trips 2.50 10.00 Modular Block Wall Subgrade 1.00 Trips 2.50 2.50 CIP Wall Backfill 5.00 Trips 2.50 12.50 CIP Wall Subgrade 1.00 Trips 2.50 2.50 Lift Station Backfill 12.00 Trips 2.50 30.00 Lift Station Concrete Pad Subgrade 1.00 Trips 2.50 2.50 1308 Nuclear moisture-density meter charge, per hour 60.00 Each 24.00 $1,440.00 1861 CMT Trip Charge 34.00 Each 21.00 $714.00 217 Compaction Testing - Sandcone & DCP's 6.00 Hour 82.00 $492.00 Work Activity Detail Qty Units Hrs/Unit Extension Aggregate Base - Mod Block Wall Leveling Pad 1.00 Trips 3.00 3.00 Aggregate Base - Lift Station Concrete Pad 1.00 Trips 3.00 3.00 1228 Topsoil Testing with nutrients, per sample 1.00 Each 370.00 $370.00 1530AG Asphalt Content of Aggregate Base, per sample 1.00 Each 150.00 $150.00 209 Sample pick-up 12.00 Hour 82.00 $984.00 Work Activity Detail Qty Units Hrs/Unit Extension Sample Pick Up 8.00 Trips 1.50 12.00 1318 Moisture Density Relationship (Proctor)8.00 Each 185.00 $1,480.00 126 Project Engineer 10.00 Hour 160.00 $1,600.00 1162 Sieve Analysis with 200 wash, per sample 12.00 Each 136.00 $1,632.00 128 Senior Engineer 5.00 Hour 185.00 $925.00 Activity 1.2 Concrete Testing $14,820.00 261 Concrete Testing 100.00 Hour 82.00 $8,200.00 Work Activity Detail Qty Units Hrs/Unit Extension Curb and Gutter 10.00 Trips 2.50 25.00 Flatwork - Sidewalk, Driveways & Median 10.00 Trips 2.50 25.00 Slope Paving 2.00 Trips 2.50 5.00 Light Pole Bases 5.00 Trips 2.50 12.50 Business Sign Footing 1.00 Trips 2.50 2.50 CIP Wall Footings 2.00 Trips 2.50 5.00 CIP Stem Walls 9.00 Trips 2.50 22.50 Lift Station Concrete Pad 1.00 Trips 2.50 2.50 1861 CMT Trip Charge 60.00 Each 21.00 $1,260.00 1364 Compressive strength of concrete cylinders, per specimen 120.00 Each 31.00 $3,720.00 Work Activity Detail Qty Units Hrs/Unit Extension Curb and Gutter 10.00 Sets 3.00 30.00 Flatwork - Sidewalk, Driveways & Median 10.00 Sets 3.00 30.00 Page 1 of 205/05/2021 02:09 PM Project Proposal QTB138630 City of Edina - Eden Ave & Brookside Ave Impts, ENG-21004 Proposal Total:$37,865.00 Slope Paving 2.00 Sets 3.00 6.00 Light Pole Bases 5.00 Sets 3.00 15.00 Business Sign Footing 1.00 Sets 3.00 3.00 CIP Wall Footings 2.00 Sets 3.00 6.00 CIP Stem Walls 9.00 Sets 3.00 27.00 Lift Station Concrete Pad 1.00 Sets 3.00 3.00 278 Concrete Cylinder Pick up 20.00 Hour 82.00 $1,640.00 Work Activity Detail Qty Units Hrs/Unit Extension Concrete Cylinder Pick up 20.00 Trips 1.00 20.00 Activity 1.3 Pavement Testing $2,388.00 1530 Asphalt Content, per sample 6.00 Each 150.00 $900.00 209 Sample pick-up 9.00 Hour 82.00 $738.00 Work Activity Detail Qty Units Hrs/Unit Extension SPNWB330C 4.00 Trips 1.50 6.00 SPWEA340C 2.00 Trips 1.50 3.00 1532 Extracted Aggregate Gradation, per sample 6.00 Each 104.00 $624.00 1861 CMT Trip Charge 6.00 Each 21.00 $126.00 Activity 1.4 Project Management $5,950.00 226 Project Manager 25.00 Hour 160.00 $4,000.00 228 Senior Project Manager 5.00 Hour 185.00 $925.00 238 Project Assistant 12.50 Hour 82.00 $1,025.00 Phase 1 Total:$37,865.00 Page 2 of 205/05/2021 02:09 PM Project Proposal QTB138630 City of Edina - Eden Ave & Brookside Ave Impts, ENG-21004 General Conditions Construction Material Testing and Special Inspections GC-CMT 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 If we notify you that radiographic or gamma ray equipment or other nuclear testing or measuring device will be used, you will be responsible for the cooperation of your employees and your contractors in observing all radiation safety standards. 3.4 You will notify us of any knowledge or suspicion of the presence of hazardous or dangerous materials present on any work site. 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 The time our field personnel spend on the job site depends upon the scheduling of the work we are observing or testing. You agree that any changes in scheduling may result in additional costs and agree to pay for those services at the rates listed in our cost estimate. 3.6 You agree to include us as an indemnified party in your contracts, if any, for work by others on the project, protecting us to the same degree as you are protected. You agree to list us as an Additional Insured under your liability insurance policies and to require subrogation be waived against us and that we will be added as an Additional Insured on all policies of insurance, including any policies required of your contractors or subcontractors, covering any construction or development activities to be performed on the project site. Section 4: Reports and Records 4.1 Unless you request otherwise, we will provide our report(s) 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 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. 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 GC-CMT Revised 1/1/2018 Page 2 of 2 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. 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. AA/EOE Braun Intertec Corporation 11001 Hampshire Avenue S Minneapolis, MN 55438 Phone: 952.995.2000 Fax: 952.995.2020 Web: braunintertec.com May 6, 2021 Proposal QTB138876 Chad Millner, PE City of Edina 7450 Metro Boulevard Edina, MN 55439 Re: Proposal for Geotechnical Evaluation Services Grandview Pedestrian Bridge 5146 Eden Avenue Edina, Minnesota Dear Mr. Millner: Braun Intertec Corporation respectfully submits this proposal to complete a geotechnical evaluation for the Grandview Pedestrian Bridge project. Project Information Per our correspondence with Kimley-Horn and Associates (KHA), we understand the proposed project will include the construction of a series of prefabricated pedestrian bridges, retaining walls, embankments, and a pedestrian trail. As part of project design, the City of Edina (City) and KHA are requesting Braun Intertec to provide geotechnical evaluation services for the improvements. Previous Experience and Geotechnical Information We have previously completed geotechnical evaluations for potential commercial redevelopment of this site. From these previous evaluations, we have subsurface information from soil borings completed to the south of the planned pedestrian trail alignment. The existing subsurface information will be supplemented with new soil borings to prepare a geotechnical evaluation for this project. Purpose The purpose of our geotechnical evaluation will be to characterize subsurface geologic conditions at selected exploration locations, evaluate their impact on the project, and provide geotechnical recommendations for the design and construction of pedestrian bridge, retaining walls, embankments, and paved trail. City of Edina Proposal QTB138876 May 6, 2021 Page 2 Scope of Services We propose the following tasks to help achieve the stated purpose. If we encounter unfavorable or unforeseen conditions during the completion of our tasks that lead us to recommend an expanded scope of services, we will contact you to discuss the conditions before resuming our services. Site Access Based on aerial photographs and a recent site visit, we plan to locate soil borings within existing paved areas, thus we have assumed the site will be accessible to a truck mounted drill rig. Additionally, we plan to locate borings within the tree covered slope on the east side of the site. We anticipate these borings will need to be completed as hand auger borings as the area will not be accessible to a drill rig. We assume there will be no cause for delays in accessing the exploration locations. We are not including tree clearing, debris or obstruction removal, or grading of navigable paths. Depending on access requirements, ground conditions, or potential utility conflicts, the field crew may alter the exploration locations from those proposed to facilitate accessibility. Staking 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. Utility Clearance 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 representative, 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. Permits We understand the property is owned by the City. We have assumed a right-of-way permit will not be required to complete our fieldwork. Penetration Test Borings and Hand Auger Borings We propose to drill three new standard penetration test (SPT) borings and three hand auger borings for the project. Table 1 provides a summary of the proposed boring locations and depths. The attached figure also shows the proposed boring locations. We will perform standard penetration tests at 2 1/2-foot vertical intervals to a depth of about 20 feet, and at 5-foot intervals at greater depths. City of Edina Proposal QTB138876 May 6, 2021 Page 3 Table 1. Summary of Proposed Borings Location Type Quantity Depth (feet) West abutment SPT 1 100 East abutment SPT 1 75 Retaining wall SPT 1 25 Pedestrian trail Hand auger 3 5 +/- Groundwater Measurements If the borings encounter groundwater during or immediately after drilling of each boring, we will record the observed depth on the boring logs. MDH Notification We are planning for the borings to be 25 feet or deeper. Therefore, the Minnesota Statutes requires us to both submit to the Minnesota Department of Health (MDH) by mail a “Sealing Notification Form” and submit a Sealing Record after our completion of the borings. The Sealing Notification Form requires a signature of the current property owner, or their agent, and we need to submit this to the MDH prior to our mobilization to the site. We are attaching a copy of the Sealing Notification Form at the end of this proposal for your signature. Our proposal includes the fees for the MDH Sealing Notification and the Sealing Record. Borehole Abandonment We will backfill our exploration locations immediately after completing the drilling at each location. Minnesota Statutes require sealing temporary borings that are 15 feet deep or deeper. Based on our proposed subsurface characterization depths, we will seal 200 linear feet of borehole with grout. Upon backfilling or sealing exploration locations, we will fill holes in pavements with a temporary patch. Over time, subsidence of borehole backfill may occur, requiring releveling of surface grades or replacing bituminous patches. We are not assuming responsibility for re-leveling or re-patching after we complete our fieldwork. Sample Review and Laboratory Testing We will return recovered samples to our laboratory, where a geotechnical engineer will visually classify and log them. To help classify the materials encountered and estimate the engineering properties necessary to our analyses, we have budgeted to perform the following laboratory tests. City of Edina Proposal QTB138876 May 6, 2021 Page 4 Table 2. Laboratory Tests Test Name Number of Tests ASTM Test Method Purpose Moisture content 18 D2216 Soil classification, moisture condition, and engineering properties Percent passing #200 sieve 10 D1140 Soil classification, and evaluate frost susceptibility Organic content 2 D2974 Evaluate suitability of soils for reuse We will determine the actual laboratory testing for the project depending on the encountered subsurface conditions. If we identify a laboratory testing program that exceeds the budget included in this proposal but provides additional value to the project, we will request authorization for the additional fees through a Change Order. Engineering Analyses We will use data obtained from the subsurface exploration and laboratory tests to evaluate the subsurface profile and groundwater conditions, and to perform engineering analyses related to structure and pavement design and performance. Our scope of services also includes performing analysis of global stability of the bridge embankments for up to two cross-sections. Report We will prepare a report including: ▪ A CAD sketch showing the exploration locations. ▪ Logs of the new and existing 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 subsurface conditions that will impact design and construction. ▪ Discussion regarding the reuse of on-site materials during construction. ▪ Recommendations for preparing structure and pavement subgrades, and the selection, placement, and compaction of fill. ▪ Recommendations for the design and construction of bridge foundations, retaining walls, embankments, and pavements. City of Edina Proposal QTB138876 May 6, 2021 Page 5 We will only submit an electronic copy of our report to you unless you request otherwise. At your request, we can also send the report to additional project team members. Schedule We anticipate performing our work according to the following schedule: ▪ Drill rig mobilization – Scheduled for May 13, 2021. ▪ Field exploration – two days on site to complete the work. ▪ Preliminary results – as obtained and reviewed. ▪ Draft report submittal – within about two weeks of completing field work. ▪ Final report submittal – within three days of receiving comments on the draft report. If we cannot complete our proposed scope of services according to this schedule due to circumstances beyond our control, we may need to revise this proposal prior to completing the remaining tasks. Fees We will furnish the services described in this proposal for a lump sum fee of $18,970. Table 3 provides a breakdown of the proposed fees. Table 3. Proposed Fee Breakdown Service Fee Staking and utility clearance $770 SPT borings 7,150 Hand auger borings 670 Laboratory testing 1,110 Coordination, engineering analysis, and report 9,270 Total $18,970 Our work may extend over several invoicing periods. As such, we will submit partial progress invoices for work we perform during each invoicing period. City of Edina Proposal QTB138876 May 6, 2021 Page 6 General Remarks We will be happy to meet with you to discuss our proposed scope of services further and clarify the various scope components. We appreciate the opportunity to present this proposal to you. Please sign and return a copy to us in its entirety. We based the proposed fee on the scope of services described and the assumptions that you will authorize our services within 30 days and that others will not delay us beyond our proposed schedule. City of Edina Proposal QTB138876 May 6, 2021 Page 7 We include the Braun Intertec General Conditions, which provide additional terms and are a part of our agreement. To have questions answered or schedule a time to meet and discuss our approach to this project further, please contact Jeff Casmer at 952.300.5803. Sincerely, BRAUN INTERTEC CORPORATION Jeffrey D. Casmer, PE Project Engineer Joshua J. Van Abel, PE Vice President, Principal Engineer Attachments: Proposed Soil Boring Layout MDH Notification Form General Conditions (1/1/18) The proposal is accepted, and you are authorized to proceed. Authorizer’s Firm Authorizer’s Signature Authorizer’s Name (please print or type) Authorizer’s Title Date City of Edina Chad A. Millner, P.E. Director of Engineering May 6, 2021 DINA E The CITY of Grandview District Improvements CITY OF EDINA ALIGNMENT 5 PLAN AND PROFILE 5 ft small block wall 25 ft+/- big block wall20 ft+/- big block wall 120 ft. prefab arch bridge 20 ft. prefab arch bridge SPT to 100' Proposed and Existing Soil Boring Locations Braun Intertec 5/6/21 SPT to 75' SPT to 25' Existing SPT to 35' Existing SPT to 35' Existing SPT to 85' HA to 5'+/- HA to 5'+/- HA to 5'+/- AA/EOE Braun Intertec Corporation 11001 Hampshire Avenue S Minneapolis, MN 55438 Phone: 952.995.2000 Fax: 952.995.2020 Web: braunintertec.com May 6, 2021 Proposal QTB138876 Chad Millner, PE City of Edina 7450 Metro Boulevard Edina, MN 55439 Re: Minnesota Department of Health Well Sealing Notification Form Grandview Pedestrian Bridge 5146 Eden Avenue Edina, Minnesota Dear Mr. Millner: Please have the property owner, representative or agent 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. 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. kimley-horn.com 767 Eustis Street, Suite 100, St. Paul, MN 55114 651 645 4197 May 7, 2021 Mr. Chad Millner Director of Engineering City of Edina 7450 Metro Boulevard Edina, MN 55439 RE:City of Edina – Grandview TIF District Improvements at Jerry’s Ramp Supplemental Agreement to Master Agreement for Professional Engineering Services Dear Mr. Millner: Kimley-Horn is pleased to submit this Supplemental Agreement for final design and construction administration services in the Grandview TIF District related to the parking ramp owned by the City of Edina (City) located at 5106 Brookside Avenue (Jerry’s Ramp). This Supplemental Agreement amends the December 1, 2020 Supplemental Agreement for final design and construction phase services. The work will be performed in accordance with Kimley-Horn’s Master Services Agreement with the City. Scope of Services Kimley-Horn will provide the services specifically set forth below. Task 1 – Task 7 Scope and fee unchanged from previous amendment. Task 8: Bidding and Construction Administration · Bidding o Unchanged · Construction Administration – Replace previous scope with the following: o Prepare Notice of Award, Contract and NPDES permit o Preconstruction meeting and periodic construction meetings. Assumes six (6) total meetings, including preconstruction meeting. o Part-time on-site construction observation. Assumes eighteen (18) weeks of construction with on average sixteen (16) hours per week of construction observation time. o Review and respond to contractor product submittals, requests for information and change order requests. o Prepare pay applications and change orders. Assumes four (4) pay applications and up to four (4) change orders. Page 2 kimley-horn.com 767 Eustis Street, Suite 100, St. Paul, MN 55114 651 645 4197 o Prepare record drawings identifying any plan revisions or field changes noted by the contractor. o We assume construction surveying or material testing, if necessary, will be provided by the contractor. o Review contractor warranties, operations and maintenance manuals and prepare closeout submittals and assemble contractor and consultant field markups into record drawings. · Deliverables o Unchanged Additional Services Any services not specifically provided for in the above scope will be billed as additional services and performed at our then current hourly rates. Additional services we can provide include, but are not limited to, the following: · Topographic surveying · Geotechnical services · Architectural services · Design of preferred vertical circulation option or pedestrian overpass Schedule We will provide our services as expeditiously as practicable with the goal of completing the final design work within 3 months of notice to proceed. Fee and Billing Kimley-Horn will perform the services in Tasks 1 - 8 on a labor fee plus expense basis with the maximum total fee shown below. Previous Current Total Authorization Agreement Authorized Task 1: Lighting Upgrades $ 20,000 $ 0 $ 20,000 Task 2: Wayfinding Signs and Entry Banners $ 36,000 $ 0 $ 36,000 Task 3: New Vehicle Vertical Circulation $ 15,000 $ 0 $ 15,000 Task 4: New Pedestrian Overpass $ 9,000 $ 0 $ 9,000 Task 5: Meetings $ 16,000 $ 0 $ 16,000 Task 6: Study Report $ 8,000 $ 0 $ 8,000 Task 7: Design of Jerry’s Ramp Repairs $ 35,000 $ 0 $ 35,000 Task 8: Bidding and Construction Administration $ 67,000 $ 10,000 $ 77,000 Total Fee (Labor Plus Expense)$ 206,000 $ 10,000 $216,000 Page 3 kimley-horn.com 767 Eustis Street, Suite 100, St. Paul, MN 55114 651 645 4197 Kimley-Horn will not exceed the total fee shown without authorization from the Client. Individual task amounts are provided for budgeting purposes only. Kimley-Horn reserves the right to reallocate amounts among tasks as necessary. Labor fee will be billed on an hourly basis according to our then-current rates. A percentage of labor fee will be added to each invoice to cover certain expenses as to these tasks such as telecommunications, in-house reproduction, postage, supplies, project related computer time, and local mileage. Administrative time related to the project may be billed hourly. All permitting, application, and similar project fees will be paid directly by the Client. Fees will be invoiced monthly based. Payment will be due within 25 days of the date of the invoice. In addition to the matters set forth herein, our Agreement shall include and be subject to, and only to, the terms and conditions of the Master Agreement for Professional Engineering Service between the City and Kimley Horn and Associates, Inc. dated August 16, 2013. If you concur in all the foregoing and wish to direct us to proceed with the services, please have authorized persons execute both copies of this Supplemental Agreement in the spaces provided below, retain one copy, and return the other to us. We appreciate this opportunity to continue our services to the City of Edina. Please contact me at 651-643-0451 if you have any questions. Very truly yours, KIMLEY-HORN AND ASSOCIATES, INC. Daniel J. Coyle, P.E. Project Manager / Vice President Agreed to this day of , 2020. CITY OF EDINA BY:________________________________ Chad Millner. Engineering Director Engineers | Architects | Planners | Scientists Short Elliott Hendrickson Inc., 10901 Red Circle Drive, Suite 300, Minnetonka, MN 55343-9302 SEH is 100% employee-owned | sehinc.com | 952.912.2600 | 800.734.6757 | 888.908.8166 fax SUPPLEMENTAL LETTER AGREEMENT May 11, 2021 RE: Eden Ave and Brookside Ave Improvements City of Edina City Proj. No. ENG-21004 SEH No. 156818 10.00 Mr. Chad Millner, PE Director of Engineering City of Edina Engineering and Public Works Facility 7450 Metro Boulevard Edina, MN 55439 Dear Chad: Short Elliott Hendrickson Inc. (SEH®) respectfully requests approval of this Supplemental Agreement for Engineering Services (agreement) for the above referenced project. The agreement is needed to cover the additional fee associated with the re-design of the full-size roundabout at the Eden Avenue and Arcadia Avenue intersection to a mini roundabout. This agreement also includes additional time needed for the Construction Observation task to account for two years of project construction (2021 and 2022). On March 26, you authorized SEH to proceed with re-design of the full-size roundabout to a mini roundabout as the result of easement negotiations with Our Lady of Grace Church to reduce the impacts to the property. At the time, the bidding documents were at an approximately 95% complete level and the project was to remain on the previously proposed bidding schedule (bid opening May 10). This change in project scope required the following: • Re-design of the entire intersection • Re-design of the storm sewer and stormwater infiltration system • Re-design of the retaining wall adjacent to 5100 Eden Avenue • Reconfiguration of the intersection lighting and RRFB’s • Additional coordination with Barr Engineering to re-design the sanitary sewer lift station • Additional coordination with private utility companies to review new conflicts and update their relocation plans. • Updating the plans, project manual, and estimate to reflect these changes The original scope of work for construction assumed full time observation presence (45 hours/week) for 25 weeks. Construction is now scheduled to last for two years (approximately 42 weeks). The following is a summary of the additional fee required to complete the above scope of work. Chad Millner, PE May 11, 2021 Page 2 Tasks Estimated Fee Mini Roundabout Re-design $80,338.00 Additional Construction Observation/Administration $87,620.00 Total Supplemental Agreement Amount: $167,958.00 If this agreement is acceptable, our total contract amount will increase from $575,694.00 to $743,652.00. If approved, please prepare and process a final agreement for execution. Please contact me at 319.450.8732 if you have any questions or need additional information. Respectfully submitted, SHORT ELLIOTT HENDRICKSON INC. William Bauer, PE (Lic. MN, IA, SD) Project Manager Accepted on this ___day of________________, 2021 City of Edina, Minnesota By:_________________________________ Name _________________________________ Title Approved by the HRA on _____________ x:\ae\e\edina\156818\1-genl\10-setup-cont\02-contract\amendment\edina eden ave supplm agmt ltr 05042021.docx Engineers | Architects | Planners | Scientists Short Elliott Hendrickson Inc., 10901 Red Circle Drive, Suite 300, Minnetonka, MN 55343 -9302 SEH is 100% employee-owned | sehinc.com | 952.912.2600 | 800.734.6757 | 888.908.8166 fax SUPPLEMENTAL LETTER AGREEMENT May 11, 2021 RE: Eden Ave and Brookside Ave Landscape Architecture Design Development & Construction Documents City of Edina City Proj. No. ENG-21004 SEH No. 159857 Mr. Chad Millner, PE Director of Engineering City of Edina Engineering and Public Works Facility 7450 Metro Boulevard Edina, MN 55439 Dear Chad: Short Elliott Hendrickson Inc. (SEH®) respectfully requests approval of this Supplemental Agreement for Landscape Architectural Services (Agreement) for the above referenced project. The Agreement is requested to cover the additional fee associated with the re-design of the in-progress Construction Document landscape sheets relative to the geometric re-design of the full-size roundabout (RAB) to a mini roundabout at the Eden Avenue and Arcadia Avenue intersection . This agreement also includes a small additional time needed for Construction Support Services task to account for two years of landscape project construction. On March 26, you authorized SEH to proceed with re-design of the full-size RAB to a mini RAB as the result of easement negotiations with Our Lady of Grace Church to reduce the impacts to the property. At the time, the landscape bidding documents were at an approximately 70% complete level and the project was to remain on the previously proposed bidding schedule (bid opening May 10). Due to the RAB geometric change, our landscape project scope required the following: • Re-design of: Tree Planting Plan sheet; Landscape Plan SW Quadrant sheet; Landscape Plan NE Quadrant sheet; and Irrigation Zones sheet • Additional coordination with owner of 5100 Eden Avenue property that resulted in two graphic renderings, instead of one as originally proposed. • Updating the in-progress project manual and estimate to reflect these changes. The following is a summary of the additional fee required to complete the above scope of work. Tasks Estimated Fee Re-design due to RAB geometric changes $5600.00 Construction Support Services for Landscape Contract over 2 years $1400.00 Total Supplemental Agreement Amount: $7000.00 Chad Millner, PE May 11, 2021 Page 2 If this Agreement is acceptable, our total Contract amount will increase from $19,997.50 to $26,997.50. If approved, please prepare and process a final agreement for execution. Please contact me at 612.723.1764 if you have any questions or need additional information. Respectfully submitted, SHORT ELLIOTT HENDRICKSON INC. Karl Weissenborn, PLA (MN) Project Manager Accepted on this ___day of________________, 2021 City of Edina, Minnesota By:_________________________________ Name _________________________________ Title Approved by the HRA on _____________ \\EDINA\159857\eden ave landscaping & rab\extra work supp letter_landscape\edina eden ave supp ltr_landscp_05-11-2021.docx 1 1/2015 CONTRACT NO. ENG 21-6 Grandview District Improvements THIS AGREEMENT made this 27th day of May, 2021, by and between the Housing and Redevelopment Authority of Edina, a Minnesota municipal corporation (“City”) and Restoration and Construction Services, LLC., 2340 197th St E, Clearwater, MN 55320 (“Contractor”). City and Contractor, in consideration of the mutual covenants set forth herein, agree as follows: 1. CONTRACT DOCUMENTS. The following documents shall be referred to as the “Contract Documents,” all of which shall be taken together as a whole as the contract between the parties as if they were set verbatim and in full herein: A. This Agreement. B. Instructions to Bidders. C. City of Edina General Contract Conditions. D. Specifications prepared by Kimley-Horn Associates, Inc., dated April 15, 2021. E. Plan sheets numbered G001-L004. F. Performance Bond. G. Payment Bond. H. Responsible Contractor Verification of Compliance. I. Contractor’s Bid dated May 10, 2021. The Contract Documents are to be read and interpreted as a whole. The intent of the Contract Documents is to include all items necessary for the proper execution and completion of the Work and to require Contractor to provide the highest quality and greatest quantity consistent with the Contract Documents. If there are inconsistencies within or among part of the Contract Documents or between the Contract Documents and applicable standards, codes or ordinances, the Contractor shall provide the better quality or greater quantity of Work or comply with the more stringent requirements. 1.1 Before ordering any materials or doing any Work, the Contractor shall verify measurements at the Project site and shall be responsible for the correctness of such measurements. No extra charges or compensation will be allowed on account of differences between actual dimensions and the dimensions indicated on the Drawings. Any difference that may be found shall be submitted to the City for resolution before proceeding with the Work. 1.2 If a minor change in the Work is necessary due to actual field conditions, the Contractor shall submit detailed drawings of such departure to the City for approval before making the change. The City shall not be required to make any adjustment to either the Contract Sum or Contract Time because of any failure by the Contractor to comply with the requirements of this paragraph. Actual or alleged conflicts or inconsistencies between the Plans and Specifications or other Contract Documents shall be brought to the City’s attention in writing, prior to performing the affected Work. The City’s directions shall be followed by the Contractor. 2. OBLIGATIONS OF THE CONTRACTOR. The Contractor shall provide the goods, services, and perform the work in accordance with the Contract Documents. 3. OBLIGATIONS OF THE CITY. The City agrees to pay and the Contractor agrees to receive and accept payment in accordance with the Contractor’s bid $523,574.75. 2 1/2015 4. PAYMENT PROCEDURES. A. Contractor shall submit Applications for Payment. Applications for Payment will be processed by City as provided in the General Conditions. B. Progress Payments; Retainage. City shall make 95% progress payments on account of the Contract Price on the basis of Contractor’s Applications for Payment during performance of the Work. C. Payments to Subcontractor. (1) Prompt Payment to Subcontractors. Pursuant to Minn. Stat. § 471.25, Subd. 4a, the Contractor must pay any subcontractor within ten (10) days of the Contractor’s receipt of payment from the City for undisputed services provided by the subcontractor. The Contractor must pay interest of 1½ percent per month or any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100.00 or more is $10.00. For an unpaid balance of less than $100.00, the Contractor shall pay the actual penalty due to the subcontractor. (2) Form IC-134 required from general contractor. Minn. Stat. § 290.92 requires that the City of Edina obtain a Withholding Affidavit for Contractors, Form IC-134, before making final payments to Contractors. This form needs to be submitted by the Contractor to the Minnesota Department of Revenue for approval. The form is used to receive certification from the state that the vendor has complied with the requirement to withhold and remit state withholding taxes for employee salaries paid. D. Final Payment. Upon final completion of the Work, City shall pay the remainder of the Contract Price as recommended by City. 5. COMPLETION DATE. The Work must be completed and ready for final pa yment by November 15, 2021. 6. CONTRACTOR’S REPRESENTATIONS. A. Contractor has examined and carefully studied the Contract Documents and other related data identified in the Contract Documents. B. Contractor has visited the Site and become familiar with and is satisfied as to the general, local, and Site conditions that may affect cost, progress, and performance of the Work. C. Contractor is familiar with and is satisfied as to all federal, state, and local Laws and Regulations that may affect cost, progress, and performance of the Work. D. Contractor has carefully studied all: (1) reports of explorations and tests of subsurface conditions at or contiguous to the Site and all drawings of physical conditions in or relating to existing surface or subsurface structures at or contiguous to the Site (except Underground Facilities) which have been identified in the General Conditions; and (2) reports and drawings of a Hazardous Environmental Condition, if any, at the Site. E. Contractor has obtained and carefully studied (or assumes responsibility for doing so) all additional or supplementary examinations, investigations, explorations, tests, studies, and data concerning conditions (surface, subsurface, and underground facilities) at or contiguous to the Site which may affect cost, progress, or performance of the Work or which relate to any aspect of the means, methods, techniques, sequences, and procedures of construction to be employed by Contractor, including any specific means, 3 1/2015 methods, techniques, sequences, and procedures of construction expressly required by the Bidding Documents, and safety precautions and programs incident thereto. F. Contractor does not consider that any further examinations, investigations, explorations, tests, studies, or data are necessary for the performance of the Work at the Contract Price, within the Contract Times, and in accordance with the other terms and conditions of the Contract Documents. G. Contractor is aware of the general nature of work to be performed by City and others at the Site that relates to the Work as indicated in the Contract Documents. H. Contractor has correlated the information known to Contractor, information and observations obtained from visits to the Site, reports and drawings identified in the Contract Documents, and all additional exam inations, investigations, explorations, tests, studies, and data with the Contract Documents. I. Contractor has given City written notice of all conflicts, errors, ambiguities, or discrepancies that Contractor has discovered in the Contract Documents, and the written resolution thereof by City is acceptable to Contractor. J. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. K. Subcontracts: (1) Unless otherwise specified in the Contract Documents, the Contractor shall, upon receipt of the executed Contract Documents, submit in writing to the City the names of the subcontractors proposed for the work. Subcontractors may not be changed except at the request or with the consent of the City. (2) The Contractor is responsible to the City for the acts and omissions of the Contractor's subcontractors, and of their direct and indirect employees, to the same extent as the Contractor is responsible for the acts and omissions of the Contractor's employees. (3) The Contract Documents shall not be construed as creating any contractual relation between the City and any subcontractor. (4) The Contractor shall bind every subcontractor by the terms of the Contract Documents. 7. WARRANTY. The Contractor guarantees that all new equipment warranties as specified within the bid shall be in full force and transferred to the City upon payment by the City. The Contractor shall be held responsible for any and all defects in workmanship, materials, and equipment which may develop in any part of the contracted service, and upon proper notification by the City shall immediately replace, without cost to the City, any such faulty part or parts and damage done by reason of the same in accordance with the bid specifications. 8. INDEMNITY. The Contractor agrees to indemnify and hold the City harmless from any claim made by third parties as a result of the services performed by it. In addition, the Contractor shall reimburse the City for any cost of reasonable attorney’s fees it may incur as a result of any such claims. 9. MISCELLANEOUS. A. Terms used in this Agreement have the meanings stated in the General Conditions. B. City and Contractor each binds itself, its partners, successors, assigns and legal representatives to the other party hereto, its partners, successors, assigns and legal representatives in respect to all covenants, agreements, and obligations contained in the Contract Documents. C. Any provision or part of the Contract Documents held to be void or unenforceable under any Law or Regulation shall be deemed stricken, and all remaining provisions shall continue to be valid and binding upon City and Contractor, who agree that the Contract Documents shall be reformed to replace such 4 1/2015 stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provisions. D. Data Practices/Records. (1) All data created, collected, received, maintained or disseminated for any purpose in the course of this Contract is governed by the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, any other applicable state statute, or any state rules adopted to implement the act, as well as federal regulations on data privacy. (2) All books, records, documents and accounting procedures and practices to the Contractor and its subcontractors, if any, relative to this Contract are subject to examination by the City. E. Copyright/Patent. Contractor shall defend actions or claims charging infringement of any copyright or patent by reason of the use or adoption of any designs, drawings or specifications supplied by it, and it shall hold harmless the City from loss or damage resulting there from. If the equipment provided by the Contractor pursuant to this Agreement contains software, including that which the manufacturer may have embedded into the hardware as an integral part of the equipment, the Contractor shall pay all software licensing fees. The Contractor shall also pay for all software updating fees for a period of one year following cutover. The Contractor shall have no obligation to pay for such fees thereafter. Nothing in the software license or licensing agreement shall obligate the City to pay any additional fees as a condition for continuing to use the software. F. Assignment. Neither party may assign, sublet, or transfer any interest or obligation in this Agreement without the prior written consent of the other party, and then only upon such terms and conditions as both parties may agree to and set forth in writing. G. Waiver. In the particular event that either party shall at any time or times waive any breach of this Agreement by the other, such waiver shall not constitute a waiver of any other or any succeeding breach of this Agreement by either party, whether of the same or any other covenant, condition or obligation. H. Governing Law/Venue. The laws of the State of Minnesota govern the interpretation of this Agreement. In the event of litigation, the exclusive venue shall be in the District Court of the State of Minnesota for Hennepin County. I. Severability. If any provision, term or condition of this Agreement is found to be or becomes unenforceable or invalid, it shall not affect the remaining provisions, terms and conditions of this Agreement, unless such invalid or unenforceable provision, term or condition renders this Agreement impossible to perform. Such remaining terms and conditions of the Agreement shall continue in full force and effect and shall continue to operate as the parties’ entire agreement. J. Entire Agreement. This Agreement represents the entire agreement of the parties and is a final, complete and all inclusive statement of the terms thereof, and supersedes and terminates any prior agreement(s), understandings or written or verbal representations made between the parties with respect thereto. K. Permits and Licenses; Rights-of-Way and Easements. The Contractor shall procure all permits and licenses, pay all charges and fees therefore, and give all notices necessary and incidental to the construction and completion of the Project. The City will obtain all necessary rights-of-way and easements. The Contractor shall not be entitled to any additional compensation for any construction delay resulting from the City’s not timely obtaining rights-of-way or easements. L. If the work is delayed or the sequencing of work is altered because of the action or inaction of the City, the Contractor shall be allowed a time extension to com plete the work but shall not be entitled to any other compensation. 5 1/2015 M. Responsible Contractor. This contract may be terminated by the City at any time upon discovery by the City that the prime contractor or subcontractor has submitted a false statement under oath verifying compliance with any of the minimum criteria set forth in Minn Stat. § 16C.285, subd. 3. HOUSING AND REDEVELOPMENT AUTHORITY CONTRACTOR OF EDINA BY: ____________________________ BY: ____________________________ Its Chair Its AND ___________________________ AND ___________________________ Its Executive Director Its 1 1/2015 CONTRACT NO. ENG 21-6 Eden Ave and Brookside Improvements THIS AGREEMENT made this 27th day of May, 2021, by and between the Housing and Redevelopment Authority of Edina, a Minnesota municipal corporation (“City”) and S.M. Hentges and Sons, 650 Quaker Avenue, Jordan, MN 55352 (“Contractor”). City and Contractor, in consideration of the mutual covenants set forth herein, agree as follows: 1. CONTRACT DOCUMENTS. The following documents shall be referred to as the “Contract Documents,” all of which shall be taken together as a whole as the contract between the parties as if they were set verbatim and in full herein: A. This Agreement. B. Instructions to Bidders. C. City of Edina General Contract Conditions. D. Addenda number 1 & 2. E. Specifications prepared by William Bauer, P.E., dated April 19, 2021. F. Plan sheets numbered 1 to 118. G. Performance Bond. H. Payment Bond. I. Responsible Contractor Verification of Compliance J. Contractor’s Bid dated May 10, 2021. The Contract Documents are to be read and interpreted as a whole. The intent of the Contract Documents is to include all items necessary for the proper execution and completion of the Work and to require Contractor to provide the highest quality and greatest quantity consistent with the Contract Documents. If there are inconsistencies within or among part of the Contract Documents or between the Contract Documents and applicable standards, codes or ordinances, the Contractor shall provide the better quality or greater quantity of Work or comply with the more stringent requirements. 1.1 Before ordering any materials or doing any Work, the Contractor shall verify measurements at the Project site and shall be responsible for the correctness of such measurements. No extra charges or compensation will be allowed on account of differences between actual dimensions and the dimensions indicated on the Drawings. Any difference that may be found shall be submitted to the City for resolution before proceeding with the Work. 1.2 If a minor change in the Work is necessary due to actual field conditions, the Contractor shall submit detailed drawings of such departure to the City for approval before making the change. The City shall not be required to make any adjustment to either the Contract Sum or Contract Time because of any failure by the Contractor to comply with the requirements of this paragraph. Actual or alleged conflicts or inconsistencies between the Plans and Specifications or other Contract Documents shall be brought to the City’s attention in writing, prior to performing the affected Work. The City’s directions shall be followed by the Contractor. 2. OBLIGATIONS OF THE CONTRACTOR. The Contractor shall provide the goods, services, and perform the work in accordance with the Contract Documents. 3. OBLIGATIONS OF THE CITY. The City agrees to pay and the Contractor agrees to receive and accept payment in accordance with the Contractor’s bid $4,193,498.55. 2 1/2015 4. PAYMENT PROCEDURES. A. Contractor shall submit Applications for Payment. Applications for Payment will be processed by City as provided in the General Conditions. B. Progress Payments; Retainage. City shall make 95% progress payments on account of the Contract Price on the basis of Contractor’s Applications for Payment during performance of the Work. C. Payments to Subcontractor. (1) Prompt Payment to Subcontractors. Pursuant to Minn. Stat. § 471.25, Subd. 4a, the Contractor must pay any subcontractor within ten (10) days of the Contractor’s receipt of payment from the City for undisputed services provided by the subcontractor. The Contractor must pay interest of 1½ percent per month or any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100.00 or more is $10.00. For an unpaid balance of less than $100.00, the Contractor shall pay the actual penalty due to the subcontractor. (2) Form IC-134 required from general contractor. Minn. Stat. § 290.92 requires that the City of Edina obtain a Withholding Affidavit for Contractors, Form IC-134, before making final payments to Contractors. This form needs to be submitted by the Contractor to the Minnesota Department of Revenue for approval. The form is used to receive certification from the state that the vendor has complied with the requirement to withhold and remit state withholding taxes for employee salaries paid. D. Final Payment. Upon final completion of the Work, City shall pay the remainder of the Contract Price as recommended by City. 5. COMPLETION DATE. The Work must be completed and ready for final pa yment by June 16, 2023. 6. CONTRACTOR’S REPRESENTATIONS. A. Contractor has examined and carefully studied the Contract Documents and other related data identified in the Contract Documents. B. Contractor has visited the Site and become familiar with and is satisfied as to the general, local, and Site conditions that may affect cost, progress, and performance of the Work. C. Contractor is familiar with and is satisfied as to all federal, state, and local Laws and Regulations that may affect cost, progress, and performance of the Work. D. Contractor has carefully studied all: (1) reports of explorations and tests of subsurface conditions at or contiguous to the Site and all drawings of physical conditions in or relating to existing surface or subsurface structures at or contiguous to the Site (except Underground Facilities) which have been identified in the General Conditions; and (2) reports and drawings of a Hazardous Environmental Condition, if any, at the Site. E. Contractor has obtained and carefully studied (or assumes responsibility for doing so) all additional or supplementary examinations, investigations, explorations, tests, studies, and data concerning conditions (surface, subsurface, and underground facilities) at or contiguous to the Site which may affect cost, progress, or performance of the Work or which relate to any aspect of the means, methods, techniques, 3 1/2015 sequences, and procedures of construction to be employed by Contractor, including any specific means, methods, techniques, sequences, and procedures of construction expressly required by the Bidding Documents, and safety precautions and programs incident thereto. F. Contractor does not consider that any further examinations, investigations, explorations, tests, studies, or data are necessary for the performance of the Work at the Contract Price, within the Contract Times, and in accordance with the other terms and conditions of the Contract Documents. G. Contractor is aware of the general nature of work to be performed by City and others at the Site that relates to the Work as indicated in the Contract Documents. H. Contractor has correlated the information known to Contractor, information and observations obtained from visits to the Site, reports and drawings identified in the Contract Documents, and all additional exam inations, investigations, explorations, tests, studies, and data with the Contract Documents. I. Contractor has given City written notice of all conflicts, errors, ambiguities, or discrepancies that Contractor has discovered in the Contract Documents, and the written resolution thereof by City is acceptable to Contractor. J. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. K. Subcontracts: (1) Unless otherwise specified in the Contract Documents, the Contractor shall, upon receipt of the executed Contract Documents, submit in writing to the City the names of the subcontractors proposed for the work. Subcontractors may not be changed except at the request or with the consent of the City. (2) The Contractor is responsible to the City for the acts and omissions of the Contractor's subcontractors, and of their direct and indirect employees, to the same extent as the Contractor is responsible for the acts and omissions of the Contractor's employees. (3) The Contract Documents shall not be construed as creating any contractual relation between the City and any subcontractor. (4) The Contractor shall bind every subcontractor by the terms of the Contract Documents. 7. WARRANTY. The Contractor guarantees that all new equipment warranties as specified within the bid shall be in full force and transferred to the City upon payment by the City. The Contractor shall be held responsible for any and all defects in workmanship, materials, and equipment which may develop in any part of the contracted service, and upon proper notification by the City shall immediately replace, without cost to the City, any such faulty part or parts and damage done by reason of the same in accordance with the bid specifications. 8. INDEMNITY. The Contractor agrees to indemnify and hold the City harmless from any claim made by third parties as a result of the services performed by it. In addition, the Contractor shall reimburse the City for any cost of reasonable attorney’s fees it may incur as a result of any such claims. 9. MISCELLANEOUS. A. Terms used in this Agreement have the meanings stated in the General Conditions. B. City and Contractor each binds itself, its partners, successors, assigns and legal representatives to the other party hereto, its partners, successors, assigns and legal representatives in respect to all covenants, agreements, and obligations contained in the Contract Documents. C. Any provision or part of the Contract Documents held to be void or unenforceable under any Law or Regulation shall be deemed stricken, and all remaining provisions shall continue to be valid and binding upon City and Contractor, who agree that the Contract Documents shall be reformed to replace such 4 1/2015 stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provisions. D. Data Practices/Records. (1) All data created, collected, received, maintained or disseminated for any purpose in the course of this Contract is governed by the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, any other applicable state statute, or any state rules adopted to implement the act, as well as federal regulations on data privacy. (2) All books, records, documents and accounting procedures and practices to the Contractor and its subcontractors, if any, relative to this Contract are subject to examination by the City. E. Copyright/Patent. Contractor shall defend actions or claims charging infringement of any copyright or patent by reason of the use or adoption of any designs, drawings or specifications supplied by it, and it shall hold harmless the City from loss or damage resulting there from. If the equipment provided by the Contractor pursuant to this Agreement contains software, including that which the manufacturer may have embedded into the hardware as an integral part of the equipment, the Contractor shall pay all software licensing fees. The Contractor shall also pay for all software updating fees for a period of one year following cutover. The Contractor shall have no obligation to pay for such fees thereafter. Nothing in the software license or licensing agreement shall obligate the City to pay any additional fees as a condition for continuing to use the software. F. Assignment. Neither party may assign, sublet, or transfer any interest or obligation in this Agreement without the prior written consent of the other party, and then only upon such terms and conditions as both parties may agree to and set forth in writing. G. Waiver. In the particular event that either party shall at any time or times waive any breach of this Agreement by the other, such waiver shall not constitute a waiver of any other or any succeeding breach of this Agreement by either party, whether of the same or any other covenant, condition or obligation. H. Governing Law/Venue. The laws of the State of Minnesota govern the interpretation of this Agreement. In the event of litigation, the exclusive venue shall be in the District Court of the State of Minnesota for Hennepin County. I. Severability. If any provision, term or condition of this Agreement is found to be or becomes unenforceable or invalid, it shall not affect the remaining provisions, terms and conditions of this Agreement, unless such invalid or unenforceable provision, term or condition renders this Agreement impossible to perform. Such remaining terms and conditions of the Agreement shall continue in full force and effect and shall continue to operate as the parties’ entire agreement. J. Entire Agreement. This Agreement represents the entire agreement of the parties and is a final, complete and all inclusive statement of the terms thereof, and supersedes and terminates any prior agreement(s), understandings or written or verbal representations made between the parties with respect thereto. K. Permits and Licenses; Rights-of-Way and Easements. The Contractor shall procure all permits and licenses, pay all charges and fees therefore, and give all notices necessary and incidental to the construction and completion of the Project. The City will obtain all necessary rights-of-way and easements. The Contractor shall not be entitled to any additional compensation for any construction delay resulting from the City’s not timely obtaining rights-of-way or easements. L. If the work is delayed or the sequencing of work is altered because of the action or inaction of the City, the Contractor shall be allowed a time extension to com plete the work but shall not be entitled to any other compensation. 5 1/2015 M. Responsible Contractor. This contract may be terminated by the City at any time upon discovery by the City that the prime contractor or subcontractor has submitted a false statement under oath verifying compliance with any of the minimum criteria set forth in Minn Stat. § 16C.285, subd. 3. HOUSING AND REDEVELOPMENT AUTHORITY CONTRACTOR OF EDINA BY: ____________________________ BY: ____________________________ Its Chair Its AND ___________________________ AND ___________________________ Its Executive Director Its 1 1/2015 CONTRACT NO. ENG 21-6 Eden Ave and Brookside Landscaping THIS AGREEMENT made this 27th day of May, 2021, by and between the Housing and Redevelopment Authority of Edina, a Minnesota municipal corporation (“City”) and Peterson Companies, Inc., 8326 Wyoming Trail, Chisago City, MN 55013 (“Contractor”). City and Contractor, in consideration of the mutual covenants set forth herein, agree as follows: 1. CONTRACT DOCUMENTS. The following documents shall be referred to as the “Contract Documents,” all of which shall be taken together as a whole as the contract between the parties as if they were set verbatim and in full herein: A. This Agreement. B. Instructions to Bidders. C. City of Edina General Contract Conditions. D. Specifications prepared by Karl Weissenborn, P.E., dated April 19, 2021. E. Plan sheets numbered 1 to 11. F. Performance Bond. G. Payment Bond. H. Responsible Contractor Verification of Compliance I. Contractor’s Bid dated May 10, 2021. The Contract Documents are to be read and interpreted as a whole. The intent of the Contract Documents is to include all items necessary for the proper execution and completion of the Work and to require Contractor to provide the highest quality and greatest quantity consistent with the Contract Documents. If there are inconsistencies within or among part of the Contract Documents or between the Contract Documents and applicable standards, codes or ordinances, the Contractor shall provide the better quality or greater quantity of Work or comply with the more stringent requirements. 1.1 Before ordering any materials or doing any Work, the Contractor shall verify measurements at the Project site and shall be responsible for the correctness of such measurements. No extra charges or compensation will be allowed on account of differences between actual dimensions and the dimensions indicated on the Drawings. Any difference that may be found shall be submitted to the City for resolution before proceeding with the Work. 1.2 If a minor change in the Work is necessary due to actual field conditions, the Contractor shall submit detailed drawings of such departure to the City for approval before making the change. The City shall not be required to make any adjustment to either the Contract Sum or Contract Time because of any failure by the Contractor to comply with the requirements of this paragraph. Actual or alleged conflicts or inconsistencies between the Plans and Specifications or other Contract Documents shall be brought to the City’s attention in writing, prior to performing the affected Work. The City’s directions shall be followed by the Contractor. 2. OBLIGATIONS OF THE CONTRACTOR. The Contractor shall provide the goods, services, and perform the work in accordance with the Contract Documents. 3. OBLIGATIONS OF THE CITY. The City agrees to pay and the Contractor agrees to receive and accept payment in accordance with the Contractor’s bid $93,624.30. 2 1/2015 4. PAYMENT PROCEDURES. A. Contractor shall submit Applications for Payment. Applications for Payment will be processed by City as provided in the General Conditions. B. Progress Payments; Retainage. City shall make 95% progress payments on account of the Contract Price on the basis of Contractor’s Applications for Payment during performance of the Work. C. Payments to Subcontractor. (1) Prompt Payment to Subcontractors. Pursuant to Minn. Stat. § 471.25, Subd. 4a, the Contractor must pay any subcontractor within ten (10) days of the Contractor’s receipt of payment from the City for undisputed services provided by the subcontractor. The Contractor must pay interest of 1½ percent per month or any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100.00 or more is $10.00. For an unpaid balance of less than $100.00, the Contractor shall pay the actual penalty due to the subcontractor. (2) Form IC-134 required from general contractor. Minn. Stat. § 290.92 requires that the City of Edina obtain a Withholding Affidavit for Contractors, Form IC-134, before making final payments to Contractors. This form needs to be submitted by the Contractor to the Minnesota Department of Revenue for approval. The form is used to receive certification from the state that the vendor has complied with the requirement to withhold and remit state withholding taxes for employee salaries paid. D. Final Payment. Upon final completion of the Work, City shall pay the remainder of the Contract Price as recommended by City. 5. COMPLETION DATE. The Work must be completed and ready for final pa yment by June 16, 2023. 6. CONTRACTOR’S REPRESENTATIONS. A. Contractor has examined and carefully studied the Contract Documents and other related data identified in the Contract Documents. B. Contractor has visited the Site and become familiar with and is satisfied as to the general, local, and Site conditions that may affect cost, progress, and performance of the Work. C. Contractor is familiar with and is satisfied as to all federal, state, and local Laws and Regulations that may affect cost, progress, and performance of the Work. D. Contractor has carefully studied all: (1) reports of explorations and tests of subsurface conditions at or contiguous to the Site and all drawings of physical conditions in or relating to existing surface or subsurface structures at or contiguous to the Site (except Underground Facilities) which have been identified in the General Conditions; and (2) reports and drawings of a Hazardous Environmental Condition, if any, at the Site. E. Contractor has obtained and carefully studied (or assumes responsibility for doing so) all additional or supplementary examinations, investigations, explorations, tests, studies, and data concerning conditions (surface, subsurface, and underground facilities) at or contiguous to the Site which may affect cost, progress, or performance of the Work or which relate to any aspect of the means, methods, techniques, sequences, and procedures of construction to be employed by Contractor, including any specific means, 3 1/2015 methods, techniques, sequences, and procedures of construction expressly required by the Bidding Documents, and safety precautions and programs incident thereto. F. Contractor does not consider that any further examinations, investigations, explorations, tests, studies, or data are necessary for the performance of the Work at the Contract Price, within the Contract Times, and in accordance with the other terms and conditions of the Contract Documents. G. Contractor is aware of the general nature of work to be performed by City and others at the Site that relates to the Work as indicated in the Contract Documents. H. Contractor has correlated the information known to Contractor, information and observations obtained from visits to the Site, reports and drawings identified in the Contract Documents, and all additional exam inations, investigations, explorations, tests, studies, and data with the Contract Documents. I. Contractor has given City written notice of all conflicts, errors, ambiguities, or discrepancies that Contractor has discovered in the Contract Documents, and the written resolution thereof by City is acceptable to Contractor. J. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. K. Subcontracts: (1) Unless otherwise specified in the Contract Documents, the Contractor shall, upon receipt of the executed Contract Documents, submit in writing to the City the names of the subcontractors proposed for the work. Subcontractors may not be changed except at the request or with the consent of the City. (2) The Contractor is responsible to the City for the acts and omissions of the Contractor's subcontractors, and of their direct and indirect employees, to the same extent as the Contractor is responsible for the acts and omissions of the Contractor's employees. (3) The Contract Documents shall not be construed as creating any contractual relation between the City and any subcontractor. (4) The Contractor shall bind every subcontractor by the terms of the Contract Documents. 7. WARRANTY. The Contractor guarantees, for a period of two years from the Owner acceptance, that all new equipment warranties as specified within the bid shall be in full force and transferred to the Cit y upon payment by the City. The Contractor shall be held responsible for any and all defects in workmanship, materials, and equipment which may develop in any part of the contracted service, and upon proper notification by the City shall immediately replace, without cost to the City, any such faulty part or parts and damage done by reason of the same in accordance with the bid specifications. 8. INDEMNITY. The Contractor agrees to indemnify and hold the City harmless from any claim made by third parties as a result of the services performed by it. In addition, the Contractor shall reimburse the City for any cost of reasonable attorney’s fees it may incur as a result of any such claims. 9. MISCELLANEOUS. A. Terms used in this Agreement have the meanings stated in the General Conditions. B. City and Contractor each binds itself, its partners, successors, assigns and legal representatives to the other party hereto, its partners, successors, assigns and legal representatives in respect to all covenants, agreements, and obligations contained in the Contract Documents. C. Any provision or part of the Contract Documents held to be void or unenforceable under any Law or Regulation shall be deemed stricken, and all remaining provisions shall continue to be valid and binding upon City and Contractor, who agree that the Contract Documents shall be reformed to replace such 4 1/2015 stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provisions. D. Data Practices/Records. (1) All data created, collected, received, maintained or disseminated for any purpose in the course of this Contract is governed by the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, any other applicable state statute, or any state rules adopted to implement the act, as well as federal regulations on data privacy. (2) All books, records, documents and accounting procedures and practices to the Contractor and its subcontractors, if any, relative to this Contract are subject to examination by the City. E. Copyright/Patent. Contractor shall defend actions or claims charging infringement of any copyright or patent by reason of the use or adoption of any designs, drawings or specifications supplied by it, and it shall hold harmless the City from loss or damage resulting there from. If the equipment provided by the Contractor pursuant to this Agreement contains software, including that which the manufacturer may have embedded into the hardware as an integral part of the equipment, the Contractor shall pay all software licensing fees. The Contractor shall also pay for all software updating fees for a period of one year following cutover. The Contractor shall have no obligation to pay for such fees thereafter. Nothing in the software license or licensing agreement shall obligate the City to pay any additional fees as a condition for continuing to use the software. F. Assignment. Neither party may assign, sublet, or transfer any interest or obligation in this Agreement without the prior written consent of the other party, and then only upon such terms and conditions as both parties may agree to and set forth in writing. G. Waiver. In the particular event that either party shall at any time or times waive any breach of this Agreement by the other, such waiver shall not constitute a waiver of any other or any succeeding breach of this Agreement by either party, whether of the same or any other covenant, condition or obligation. H. Governing Law/Venue. The laws of the State of Minnesota govern the interpretation of this Agreement. In the event of litigation, the exclusive venue shall be in the District Court of the State of Minnesota for Hennepin County. I. Severability. If any provision, term or condition of this Agreement is found to be or becomes unenforceable or invalid, it shall not affect the remaining provisions, terms and conditions of this Agreement, unless such invalid or unenforceable provision, term or condition renders this Agreement impossible to perform. Such remaining terms and conditions of the Agreement shall continue in full force and effect and shall continue to operate as the parties’ entire agreement. J. Entire Agreement. This Agreement represents the entire agreement of the parties and is a final, complete and all inclusive statement of the terms thereof, and supersedes and terminates any prior agreement(s), understandings or written or verbal representations made between the parties with respect thereto. K. Permits and Licenses; Rights-of-Way and Easements. The Contractor shall procure all permits and licenses, pay all charges and fees therefore, and give all notices necessary and incidental to the construction and completion of the Project. The City will obtain all necessary rights-of-way and easements. The Contractor shall not be entitled to any additional compensation for any construction delay resulting from the City’s not timely obtaining rights-of-way or easements. L. If the work is delayed or the sequencing of work is altered because of the action or inaction of the City, the Contractor shall be allowed a time extension to com plete the work but shall not be entitled to any other compensation. 5 1/2015 M. Responsible Contractor. This contract may be terminated by the City at any time upon discovery by the City that the prime contractor or subcontractor has submitted a false statement under oath verifying compliance with any of the minimum criteria set forth in Minn Stat. § 16C.285, subd. 3. HOUSING AND REDEVELOPMENT AUTHORITY CONTRACTOR OF EDINA BY: ____________________________ BY: ____________________________ Its Chair Its AND ___________________________ AND ___________________________ Its Executive Director Its APRIL 2018 A-1 IB CONTRACT NO FC 20-10. THIS AGREEMENT made this 26th day of March 2020, by and between the CITY OF EDINA, a Minnesota municipal corporation (“City”) and Pro-Tek Design (“Contractor”). City and Contractor, in consideration of the mutual covenants set forth herein, agree as follows: 1. CONTRACT DOCUMENTS. The following documents shall be referred to as the “Contract Documents,” all of which shall be taken together as a whole as the contract between the parties as if they were set verbatim and in full herein: A. This Agreement. B. Instructions to Bidders. C. City of Edina General Contract Conditions. D. Addenda numbers E. Specifications prepared by F. Plan sheets numbered G. Performance Bond. H. Payment Bond. I. Responsible Contractor Verification of Compliance J. Contractor’s Revised bid dated March 25, 2021 K. Scope of Work The Contractor at a minimum shall provide the following services: Supply and Install 4 security cameras in the Grandview Parking Ramp (Jerry’s Ramp). Contractor shall supply all necessary wiring and cabling, conduit, licensing, required for installation. Location of cameras as described in contractors proposal. Final locations to be determined in field with representative of owner. Contractor shall also supply one additional 1” EMT conduit to junction box on lower level to accommodate future expansion. Any minor changes in the work resulting in additional cost to be approved City prior to payment. See section 1.2 for further details The Contract Documents are to be read and interpreted as a whole. The intent of the Contract Documents is to include all items necessary for the proper execution and completion of the Work and to require Contractor to provide the highest quality and greatest quantity consistent with the Contract Documents. If there are inconsistencies within or among part of the Contract Documents or between the Contract Documents and applicable standards, codes or ordinances, the Contractor shall provide the better quality or greater quantity of Work or comply with the more stringent requirements. APRIL 2018 A-2 IB 1.1 Before ordering any materials or doing any Work, the Contractor shall verify measurements at the Project site and shall be responsible for the correctness of such measurements. No extra charges or compensation will be allowed on account of differences between actual dimensions and the dimensions indicated on the Drawings. Any difference that may be found shall be submitted to the City for resolution before proceeding with the Work. 1.2 If a minor change in the Work is necessary due to actual field conditions, the Contractor shall submit detailed drawings of such departure to the City for approval before making the change. The City shall not be required to make any adjustment to either the Contract Sum or Contract Time because of any failure by the Contractor to comply with the requirements of this paragraph. Actual or alleged conflicts or inconsistencies between the Plans and Specifications or other Contract Documents shall be brought to the City’s attention in writing, prior to performing the affected Work. The City’s directions shall be followed by the Contractor. 2. OBLIGATIONS OF THE CONTRACTOR. The Contractor shall provide the goods, services, and perform the work in accordance with the Contract Documents. 3. OBLIGATIONS OF THE CITY. The City agrees to pay, and the Contractor agrees to receive and accept payment in accordance with the Contractor’s bid $29,291.00 4. PAYMENT PROCEDURES. A. Contractor shall submit Applications for Payment. Applications for Payment will be processed by City as provided in the General Conditions. B. Progress Payments; Retainage. City shall make 95% progress payments on account of the Contract Price on the basis of Contractor’s Applications for Payment during performance of the Work. C. Payments to Subcontractor. (1) Prompt Payment to Subcontractors. Pursuant to Minn. Stat. § 471.25, Subd. 4a, the Contractor must pay any subcontractor within ten (10) days of the Contractor’s receipt of payment from the City for undisputed services provided by the subcontractor. The Contractor must pay interest of 1½ percent per month or any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100.00 or more is $10.00. For an unpaid balance of less than $100.00, the Contractor shall pay the actual penalty due to the subcontractor. (2) Form IC-134 required from general contractor. Minn. Stat. § 290.92 requires that the City of Edina obtain a Withholding Affidavit for Contractors, Form IC-134, before making final payments to Contractors. This form needs to be submitted by the Contractor to the Minnesota Department of Revenue for approval. The form is used to receive certification from the state that the vendor has complied with the requirement to withhold and remit state withholding taxes for employee salaries paid. D. Final Payment. Upon final completion of the Work, City shall pay the remainder of the Contract Price as recommended by City. 5. COMPLETION DATE. The Work must be completed and ready for final payment by October 1st, 2021. 6. CONTRACTOR’S REPRESENTATIONS. APRIL 2018 A-3 IB A. Contractor has examined and carefully studied the Contract Documents and other related data identified in the Contract Documents. B. Contractor has visited the Site and become familiar with and is satisfied as to the general, local, and Site conditions that may affect cost, progress, and performance of the Work. C. Contractor is familiar with and is satisfied as to all federal, state, and local Laws and Regulations that may affect cost, progress, and performance of the Work. D. Contractor has carefully studied all: (1) reports of explorations and tests of subsurface conditions at or contiguous to the Site and all drawings of physical conditions in or relating to existing surface or subsurface structures at or contiguous to the Site (except Underground Facilities) which have been identified in the General Conditions; and (2) reports and drawings of a Hazardous Environmental Condition, if any, at the Site. E. Contractor has obtained and carefully studied (or assumes responsibility for doing so) all additional or supplementary examinations, investigations, explorations, tests, studies, and data concerning conditions (surface, subsurface, and underground facilities) at or contiguous to the Site which may affect cost, progress, or performance of the Work or which relate to any aspect of the means, methods, techniques, sequences, and procedures of construction to be employed by Contractor, including any specific means, methods, techniques, sequences, and procedures of construction expressly required by the Bidding Documents, and safety precautions and programs incident thereto. F. Contractor does not consider that any further examinations, investigations, explorations, tests, studies, or data are necessary for the performance of the Work at the Contract Price, within the Contract Times, and in accordance with the other terms and conditions of the Contract Documents. G. Contractor is aware of the general nature of work to be performed by City and others at the Site that relates to the Work as indicated in the Contract Documents. H. Contractor has correlated the information known to Contractor, information and observations obtained from visits to the Site, reports and drawings identified in the Contract Documents, and all additional examinations, investigations, explorations, tests, studies, and data with the Contract Documents. I. Contractor has given City written notice of all conflicts, errors, ambiguities, or discrepancies that Contractor has discovered in the Contract Documents, and the written resolution thereof by City is acceptable to Contractor. J. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. K. Subcontracts: (1) Unless otherwise specified in the Contract Documents, the Contractor shall, upon receipt of the executed Contract Documents, submit in writing to the City the names of the subcontractors proposed for the work. Subcontractors may not be changed except at the request or with the consent of the City. (2) The Contractor is responsible to the City for the acts and omissions of the Contractor's subcontractors, and of their direct and indirect employees, to the same extent as the Contractor is responsible for the acts and omissions of the Contractor's employees. (3) The Contract Documents shall not be construed as creating any contractual relation between the City and any subcontractor. (4) The Contractor shall bind every subcontractor by the terms of the Contract Documents. APRIL 2018 A-4 IB 7. WARRANTY. The Contractor guarantees that all new equipment warranties as specified within the bid shall be in full force and transferred to the City upon payment by the City. The Contractor shall be held responsible for any and all defects in workmanship, materials, and equipment which may develop in any part of the contracted service, and upon proper notification by the City shall immediately replace, without cost to the City, any such faulty part or parts and damage done by reason of the same in accordance with the bid specifications. 8. INDEMNITY. The Contractor agrees to indemnify and hold the City harmless from any claim made by third parties as a result of the services performed by it. In addition, the Contractor shall reimburse the City for any cost of reasonable attorney’s fees it may incur as a result of any such claims. 9. MISCELLANEOUS. A. Terms used in this Agreement have the meanings stated in the General Conditions. B. City and Contractor each binds itself, its partners, successors, assigns and legal representatives to the other party hereto, its partners, successors, assigns and legal representatives in respect to all covenants, agreements, and obligations contained in the Contract Documents. C. Any provision or part of the Contract Documents held to be void or unenforceable under any Law or Regulation shall be deemed stricken, and all remaining provisions shall continue to be valid and binding upon City and Contractor, who agree that the Contract Documents shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provisions. D. Data Practices/Records. (1) All data created, collected, received, maintained or disseminated for any purpose in the course of this Contract is governed by the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, any other applicable state statute, or any state rules adopted to implement the act, as well as federal regulations on data privacy. (2) All books, records, documents and accounting procedures and practices to the Contractor and its subcontractors, if any, relative to this Contract are subject to examination by the City. E. Copyright/Patent. Contractor shall defend actions or claims charging infringement of any copyright or patent by reason of the use or adoption of any designs, drawings or specifications supplied by it, and it shall hold harmless the City from loss or damage resulting there from. If the equipment provided by the Contractor pursuant to this Agreement contains software, including that which the manufacturer may have embedded into the hardware as an integral part of the equipment, the Contractor shall pay all software licensing fees. The Contractor shall also pay for all software updating fees for a period of one year following cutover. The Contractor shall have no obligation to pay for such fees thereafter. Nothing in the software license or licensing agreement shall obligate the City to pay any additional fees as a condition for continuing to use the software. F. Assignment. Neither party may assign, sublet, or transfer any interest or obligation in this Agreement without the prior written consent of the other party, and then only upon such terms and conditions as both parties may agree to and set forth in writing. G. Waiver. In the particular event that either party shall at any time or times waive any breach of this Agreement by the other, such waiver shall not constitute a waiver of any other or any succeeding breach of this Agreement by either party, whether of the same or any other covenant, condition or obligation. H. Governing Law/Venue. The laws of the State of Minnesota govern the interpretation of this Agreement. In the event of litigation, the exclusive venue shall be in the District Court of the State of Minnesota for Hennepin County. APRIL 2018 A-5 IB I. Severability. If any provision, term or condition of this Agreement is found to be or becomes unenforceable or invalid, it shall not affect the remaining provisions, terms and conditions of this Agreement, unless such invalid or unenforceable provision, term or condition renders this Agreement impossible to perform. Such remaining terms and conditions of the Agreement shall continue in full force and effect and shall continue to operate as the parties’ entire agreement. J. Entire Agreement. This Agreement represents the entire agreement of the parties and is a final, complete and all inclusive statement of the terms thereof, and supersedes and terminates any prior agreement(s), understandings or written or verbal representations made between the parties with respect thereto. K. Permits and Licenses; Rights-of-Way and Easements. The Contractor shall procure all permits and licenses, pay all charges and fees therefore, and give all notices necessary and incidental to the construction and completion of the Project. The City will obtain all necessary rights-of-way and easements. The Contractor shall not be entitled to any additional compensation for any construction delay resulting from the City’s not timely obtaining rights-of-way or easements. L. If the work is delayed or the sequencing of work is altered because of the action or inaction of the City, the Contractor shall be allowed a time extension to complete the work but shall not be entitled to any other compensation. M. Responsible Contractor. This contract may be terminated by the City at any time upon discovery by the City that the prime contractor or subcontractor has submitted a false statement under oath verifying compliance with any of the minimum criteria set forth in Minn Stat. § 16C.285, subd. 3. CITY OF EDINA CONTRACTOR BY: ____________________________ BY: ____________________________ City Manager Its AND ___________________________ Its APRIL 2018 D-1 IB Bid valid for 30 days from: 5/11/2021 Bid completed by: Jason Johnson 952-737-8097 jason.johnson@electricalproduction.com Base Bid: $16,345.00 Labor: $8,545.00 Material $7,800.00 To: Logis Attn: Justin Roggenkamp Phone: 612-209-1293 Email:jroggenkamp@logis.org Re:Eden Ave fiber RELO Location: Edina, MN Bid Acceptance: Bid Assumptions, Qualifications, and Exclusions: Accepted (Signature)Title Date Qty 1 $0.00 1 $0.00 1 $0.00 288 $0.00 4 $0.00 2 $68.69 488 $0.00 165 $0.00 300 $74.18 2 $82.43 1 $0.00 This bid is subject to EPS's Terms and Conditions that are attached. Any changes to this bid will be charged as an Extra. Utility company service and usage charges are not included. Electrical Production Services is not responsible for the duration of permit approval/completion. The information contained in this bid and the attached documentation is binding upon acceptance of the bid. Acceptance of the bid may occur through signing below and returning this page to EPS, Inc., or emailing EPS, Inc. that you accept the bid. When accepting a bid, you agree to be bound by EPS, Inc.’s Terms and Conditions. If you accept the bid on behalf of a third-party/company you work for, you also represent and warrant you have authority to contractually bind the third-party/company. Any changes to an accepted bid will be charged as an extra. Bid and performance bonds are not included in this proposal unless explicitly noted. Private utility locating is not included. Electrical Production Services is not responsible for privately owned buried utilities or infrastructure. Electrical Production Services is not responsible for the condition of owner provided materials. Labor and material to manage, handle or inventory owner supplied equipment is not included. Labor and materials to warranty owner supplied equipment is not included. Prevailing wages, bond costs and/or special insurance coverage's are not included. A two week notice prior to starting is required for scheduling of labor. This bid is based on work to be performed during normal business hours. Winter conditions and frost conditions are not included in this bid, unless listed. Cutting, removal and patching of concrete or asphalt is not included unless listed. All information contained in this bid is proprietary and for the confidential use of the recipient listed above. Duplication and/or dissemination of information contained herein is prohibited. Bid Detail Item Description Underground Construction Engineering and Permitting Dig and INT duct and Fiber Install (2) 1 1/4" HDPE Conduit via directional bore Install a new 30" x 48" x 36" Handhole Install fiber optic cable up to 288 strand Cut and Pull back for cutover (per total footage) Place #12 AWG locate wire in existing conduit Install a marker post ISP Construction Aerial Construction 1 $6,045.00 2 $600.00 1 $200.00 1 $175.00 2 $500.00 108 $4,320.00 1 $250.00 Install a rack or wall mount fiber termination panel - Gator cable Port end Splicing Install a new splice enclosure: includes preping up to 2 cables * Splice Enclosure is NOT included Prep OSP cable into an existing or new splice enclosure OSP Setup/teardown per location Splice OSP loose tube 25 to 72 per location ISP Setup/teardown per location Date: 05/11/2021 1. Payment. The making of final payment shall constitute a waiver of all claims by Customer known as of the date such payment is made, except for those claims specifically preserved in writing as surviving the final payment. CUSTOMER’S DAMAGES IN ANY CLAIM, ACTION OR SUIT AGAINST EPS SHALL NOT EXCEED THE CONTRACT SUM, AND IN NO EVENT SHALL EPS BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES RELATING TO THIS AGREEMENT OR THE PERFORMANCE OF THE WORK. 2. Changes in the Work. Customer may, without invalidating this Agreement, request changes in the Work within the general scope of the contemplated project consisting of additions, deletions or other revisions to the Work. Such changes in the Work shall be accomplished by a written Change Order. The Contract Sum and the Plans and Specifications may be adjusted only by a written Change Order, and once signed by EPS and Customer constitutes a binding modification to this Agreement. Unless otherwise agreed by the parties, any increase in the Contract Sum associated with a Change Order shall be payable upon execution of the Change Order. Each change to the Plans and Specifications, or Contract Sum shall be deemed a separate Change Order. 3. Concealed Conditions. Should unknown or concealed conditions differ materially from those understood to exist, ordinarily encountered, or generally recognized as inherent in the Work contemplated by EPS, then the Contract Sum shall be equitably adjusted by Change Order upon request by either party made in writing within thirty days after the first observance of the condition. If additional work is required to correct the concealed condition, Customer shall pay the additional costs involved. 4. Indemnification. Customer shall indemnify and hold EPS harmless from and against claims, damages, losses and expenses arising out of or resulting from performance of the Work to the extent that such claims, damage, loss, or expenses are caused by the negligence or willful misconduct of Customer or anyone directly or indirectly employed by Customer or anyone for whose acts Customer may be liable. 5. Miscellaneous Terms. Neither party shall assign its rights and obligations hereunder without the other’s prior written consent, except that EPS may subcontract all or a portion of the Work without Customer’s consent. The Agreement between the parties is intended to be interpreted and construed under and in accordance with the laws of the State of Minnesota. The bid and these Terms and Conditions express all agreements between the parties concerning the subject matter hereof and supersede all previous understandings relating hereto whether oral or written. EPS does not agree to any modification of these terms unless such modification is agreed to, in writing, by EPS’s President or CEO. Whenever possible, each provision of these Terms and Conditions shall be interpreted to be effective and valid under applicable law, but, if any provision of these Terms and Conditions shall be held to be prohibited or invalid under such applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of these Terms and Conditions. The parties hereto consent to the exclusive jurisdiction and venue of any such court and waive any argument that venue in such forums is not convenient. EPS shall be entitled to its attorneys’ fees in any action required to enforce or interpret these Terms and Conditions including but not limited to actions resulting from the Customer’s nonpayment. Customer hereby acknowledges receipt of any and all written notices required under Minn. Stat. 514.011, including the following notice: (a) Any person or company supplying labor or materials for this improvement to your property may file a lien against your property if that person or company is not paid for the contributions. (b) Under Minnesota law, you have the right to pay persons who supplied labor or materials for this improvement directly and deduct this amount from our contract price, or withhold the amounts due them from us until 120 days after completion of the improvement unless we give you a lien waiver signed by persons who supplied any labor or material for the improvement and who gave you timely notice. Bid Acceptance: TERMS AND CONDITIONS The information contained in this bid and the attached documentation is binding upon acceptance of the bid. Acceptance of the bid may occur through signing below and returning this page to EPS, Inc., or emailing EPS, Inc. that you accept the bid. When accepting a bid, you agree to be bound by EPS, Inc.’s Terms and Conditions. If you accept the bid on behalf of a third-party/company you work for, you also represent and warrant you have authority to contractually bind the third-party/company. Any changes to an accepted bid will be charged as an extra. Bid and performance bonds are not included in this proposal unless explicitly noted. Date: 05/11/2021 This warranty has specific limitations and is not an insurance policy. A. What does this Warranty cover? Electrical Production Services, Inc. (dba, EPS) offers a One-Year limited warranty on labor and materials supplied by EPS, with the exception of lamps and light bulbs which are expressly excluded. EPS warrants that the labor and materials will be free from defects in material or workmanship, under normal use during the warranty period. B. What does this Warranty NOT cover? Acts of God/Nature, abuse, neglect or any damage the customer has a right to recover against another party (i.e. other workers, suppliers) or covered by homeowner’s/company insurance. C. What we will do… Replace or repair the covered defective materials and workmanship. D. What must you do… Keep this warranty, your invoice and contract in a safe place. Call EPS at (800) 594-9165 for warranty service within twenty-four (24) hours of discovery of any warranted defect to notify EPS of the defect. E. Other Conditions 1. EPS will not pay for any incidental or consequential damages, (for example, loss of refrigerated foods, living/working expenses, loss to other property or person’s). 2. This warranty will be voided if someone other than EPS performs services on the work covered by this warranty. 3. Your exclusive remedy for breach of this limited warranty is repair or replacement of defective materials and workmanship. 4. All other warranties express or implied are expressly disclaimed. One Year “LIMITED” Warranty 06/20/2019 1 SERVICE AGREEMENT This AGREEMENT made and entered into by and between the City of Edina (“City”), and SOO LINE RAILROAD COMPANY, doing business as Canadian Pacific (“CP”). WITNESSETH: WHEREAS, City is involved in activities to widen and improve Eden Avenue pedestrian walk way and bike trail under CP Railroad bridge Edina, Minnesota; WHEREAS, the City is conducting design engineering and construction for the Eden Avenue Pedestrian walk way and bike trail (the “Project”); WHEREAS, the freight railroad operating property and freight rail operations of CP will be impacted by the Project; WHEREAS, City needs access to CP property and records, and input from CP for design engineering and ultimately requires CP approval of the engineering plans and construction; WHEREAS, CP is willing to cooperate with City design engineering work and construction, providing CP is reimbursed for such services and is agreeable to proceeding on that basis; NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements hereinafter contained, the parties hereto agree as follows: SECTION 1. The Parties shall perform the following services. The term “Services” means all services the Parties are required to provide under this Agreement for design engineering of the Project. The Services specifically excludes the transfer of real property rights, construction, operation and maintenance in connection with implementation of the Project. (I) SERVICES BY CITY. City shall furnish or cause to be furnished, at its expense, all the Services required to perform and complete: a. All required design engineering and construction inspection for the Project, other than that described in paragraph (II) below; and b. Incidental Services necessary to complete the items hereinabove specified. (II) SERVICES BY CP. CP shall furnish or cause to be furnished, at the request and expense of City, the following Services required for City to perform and complete the design engineering plans: a. CP minimum engineering design requirements for freight rail infrastructure and other technical guidance; b. Review of design engineering and construction plans including review of structure plans and calculations; 06/20/2019 2 c. Incidental Services, including supervisory and legal expenses, necessary to complete the items hereinabove specified. CP will make its best effort to provide the Services, as they are requested by City, in a timely manner. The Parties agree the Reimbursable Expenses for the CP Services set forth above shall not exceed $30,000 unless this agreement is otherwise amended. Reimbursement for the Services and Reimbursable Expenses will be on the basis of actual cost of the Services and Reimbursable Expenses to CP. CP may perform the Services through the use of its own forces, CP’s preferred service providers, or other providers satisfactory to CP. All Services will be performed in accordance with CP standards. CP must approve the design of all improvements on CP property. The Parties acknowledge the above-stated limit for the Reimbursable Expenses is based on incomplete information as to the level of effort required of CP and subject to change, through an amendment to this Agreement. Further, at Cities request, this Agreement may be amended to include other additional services. SECTION 2. CP shall be entitled to payment for the actual cost of Services and Reimbursable Expenses, subject to the maximum of $30,000, in accordance with the “Standard Provisions for Highway-Railroad Agreements” attached hereto as Exhibit A. SECTION 3. In the event that delays or difficulties arise which in the opinion of City render it impracticable to proceed with the Project, then at any time City may serve formal notice of cancellation upon CP and this Agreement shall thereupon become null and void, except City shall reimburse CP for all costs incurred by CP prior to notice of cancellation or which are unavoidable by CP after notice of cancellation has been received. SECTION 4. GENERAL PROVISIONS. (I) FORCE MAJEURE. The obligations of City and CP under this Agreement, other than payment, shall be subject to force majeure (which shall include strikes, riots, floods, accidents, Acts of God, and other causes or circumstances beyond the reasonable control of the Party claiming such force majeure as an excuse for non- performance), but only as long as, and to the extent that, such force majeure shall prevent performance of the obligations. (II) ASSIGNMENT. Neither City nor CP may assign or in any manner transfer either in whole or in part this Agreement or any right or privilege granted to it hereunder, nor permit any person or persons, company or companies to share in any such rights or privileges without the prior written consent of the Parties hereto. This Agreement shall be binding upon and inure to the benefit of, and shall be enforceable by, the Parties hereto and their respective successors and permitted assigns. (III) NOTICE. All notices or other communications required or permitted hereunder shall be in writing and shall be delivered in person, by a scanned official letter and transmitted electronically or by express mail or courier, or certified or registered 06/20/2019 3 mail, return receipt requested, postage prepaid, to the persons specified herein as entitled to receive such notice, or to their duly authorized representative, unless notice of a change of address is given pursuant to the provisions of this Section. Notices shall be addressed as follows: To CP: Soo Line Railroad Company Suite 700 Canadian Pacific Plaza 120 South 6th Street Minneapolis, MN 55402 Attn: Daniel Sabatka To City: Attention: Chad A. Millner, P.E. Director of Engineering City of Edina (“City”) 7450 Metro Blvd Edina, MN 55439 Subject to proof of earlier delivery or receipt, any such notice, demand, request, consent or approval shall be conclusively deemed to have been given or made on the day upon which same is delivered or, if sent by prepaid registered mail, on the fifth business day following the date of mailing or, if transmitted by electronic means, on the second business day following acknowledged transmission, as the case may be. Any party may, at any time, give notice to the others of any change of address or electronic address. (III) WAIVER. No delay or omission on the part of a Party hereto in the exercise of any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy preclude any other or further exercise thereof or the exercise of any other right or remedy. (IV) NOT FOR THE BENEFIT OF OTHERS. This Agreement and each and every provision hereof is for the exclusive benefit of the Parties hereto and their permitted assigns and not for the benefit of any other person. (VI) GOVERNING LAW. This Agreement shall be governed by and construed in accordance with Minnesota law. Minnesota law shall apply for all purposes, regardless of the venue for the dispute, including without limitation, jurisdiction, venue, conflicts of law, and choice of law. (VII) CONFIDENTIALITY. All books, manuals, drawings, computer software, other documentation and know-how provided or made available to the City or its representatives pursuant to this Agreement ("Confidential Information") is confidential and proprietary, and shall remain the property of CP at all times. City is licensed to use such books, manuals, drawings, computer software and other documentation and know-how as will be supplied to City solely as necessary for the Services. Cities right and its obligations hereunder shall be in 06/20/2019 4 force irrespective of whether such books, manuals, drawings, documents and computer software and know-how have been made by or are the property of CP itself or external consultants, or subcontractors. In no circumstances shall City use or permit others to use any of the books, manuals, drawings, computer software and other documentation or know-how provided pursuant to this Agreement for any purpose other than for the Services. City shall not make copies of the Confidential Information or provide any Confidential Information to third Parties other than as required by law, or make any alterations in any Confidential Information without the prior written consent of CP. City has advised CP that it is subject to certain public disclosure requirements pursuant to applicable public records laws. In the event that City receives a request for any Confidential Information, it shall promptly advise CP. The provisions of this Section 11 shall survive the expiration or termination of this Agreement for any reason. Limitations. In protecting confidential and proprietary information, a Party will use the same reasonable steps that it takes to protect its own confidential and proprietary information. The obligations set forth above in this Section will not apply to information that is or comes into the public domain through no violation of this or any other agreement; that was known to the party from sources other than activities pursuant to this Agreement; that is rightfully received from any third party who is under no contractual obligation to keep such information confidential; that is developed independently by the Party receiving the information without reference to such information, provided that it is developed by persons working for the party who have not had access to such information; or that a Party is required by a court of competent jurisdiction to disclose. Exception. CP agrees that City may furnish a copy of this Agreement and any exhibits and attachments thereto to other parties, agencies or the federal government involved in financing on behalf of the Project. (XI) TERM. This Agreement will expire on December 31, 2022, unless extended by mutual agreement of the parties or terminated earlier under the terms of this Agreement. (XII) This Agreement constitutes the entire agreement between the Parties. No waiver, consent, modification, or change of terms of this agreement shall bind either Party unless in writing and signed by both Parties. Such waiver, modification, or change, if made, shall be effective only in the specific instance and for the specific purpose given. There are no understandings, agreements, or representations, oral or written, not specified herein regarding this Agreement. 06/20/2019 5 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in duplicate counterparts, each of which shall be considered as an original by their duly authorized officials as of the dates below indicated. Executed this __ day of _______________, ____. SOO LINE RAILROAD COMPANY dba Canadian Pacific Attest: _____________________________ By: _________________________ Executed this __ day of _______________, ____. City of Edina MN Attest: _____________________________ By: _________________________ Chad A. Millner Director of Engineering 06/20/2019 6 EXHIBIT A STANDARD PROVISIONS FOR HIGHWAY-RAILROAD AGREEMENTS (FEDERAL AID PROJECTS) For the purposes of this Exhibit A, City is referred to as “ROAD AUTHORITY” and CP is referred to as “COMPANY”. 1. ALL COMPANY work shall be performed in accordance with the terms, stipulations and conditions contained in the US Department of Transportation, Federal-Aid Highway Program Manual Volume 1, Chapter 4, Section 3 and supplements to or revisions thereafter. 2. The COMPANY, for performance of its work, may bill the ROAD AUTHORITY monthly for the ROAD AUTHORITY’S share of the actual cost and expenses incurred. These progressive invoices may be rendered on the basis of the estimated percentage of the work completed. The ROAD AUTHORITY after verifying that the bill is reasonable and proper shall promptly reimburse the COMPANY. The COMPANY, upon the completion of its work, shall send the ROAD AUTHORITY a detailed final statement of actual expensed it incurred, including allowable additives. After the ROAD AUTHORITY’S representatives have checked the final statement and have agreed that the cost are reasonable and proper insofar as they are able to ascertain, the ROAD AUTHORITY shall reimburse the COMPANY in the amount, less previous payments, if any, equal to the amount billed. After the ROAD AUTHORITY representatives have audited the expensed incurred by the COMPANY and final inspection of the installation has been made, the COMPANY shall reimburse the ROAD AUTHORITY for any item (or items) of expense found by the ROAD AUTHORITY representatives to be ineligible for reimbursement. 3. It is understood that the project herein contemplated shall be subject to all appropriate Federal laws, rules, regulations, orders and approvals pertaining to all agreements in general. The use of said guidelines for reimbursement between the parties hereto shall not be deemed to require reimbursement of the ROAD AUTHORITY by the Federal Highway Administration as a condition precedent to the ROAD AUTHORITY’S obligation. 4. All work herein provided to be done by the ROAD AUTHORITY or its contractor or contractors on the right-of-way or upon, over, under or across the railroad tracks of the COMPANY shall be done in a manner satisfactory to the COMPANY and shall be performed as such time and in such manner as not to interfere unnecessarily with the movement of trains or traffic upon the tracks of the COMPANY. The ROAD AUTHORITY shall require its contractors or contractors to use all care and precaution necessary to avoid accident, damage or interference to the COMPANY’S tracks or the trains or traffic using its tracks, and to notify the COMPANY a sufficient time in advance whenever the contractor is about to perform work adjacent to the track to enable the 06/20/2019 7 COMPANY to arrange for the furnish flagging and such other protective services as might be necessary to insure safety of railroad operations. The COMPANY shall have the right to furnish all such flagging or protective service as in its judgment is necessary, and the ROAD AUTHORITY or its contractor or contractors shall reimburse the COMPANY for the cost thereof. Wherever safeguarding of trains or traffic or the COMPANY is mentioned in this agreement, it is intended to cover all users of the COMPANY’S track having permission for such use. 5. The ROAD AUTHORITY shall require its contractor or contractors, upon completion of the work, to remove all machinery, equipment, temporary buildings, false work, debris and rubbish from COMPANY right-of-way, to provide proper drainage away from COMPANY track, and to leave the tracks and right-of-way in a neat condition, satisfactory to the COMPANY’S Chief Engineer or his representative. 6. Any contract between the ROAD AUTHORITY and its contractor or subcontractor to perform the work herein provided to be done by the ROAD AUTHORITY shall require that the contractor or sub-contractor protect SOO LINE RAILROAD COMPANY, and any other railroad occupying or using COMPANY right-of-way or lines of railroad with the permission of the COMPANY, against all loss and damage arising from the activities of the contractor, its forces. Or any of its subcontractors or agents, and shall further provide that the contractor shall furnish the COMPANY a Railroad Protective Liability Insurance policy providing for protection of the COMPANY, in accordance with the Federal-Aid Policy Guide, Title 23, Part 140, Subpart 1 and any supplements to or revisions unless otherwise noted. The limits of the policy shall be not less than $2,000,000 combined single limit per occurrence for bodily injury, death, property damage and physical damage to property, with an aggregate limit of not less than $6,000,000 per policy period. The insurance policy shall be delivered to and approved by the COMPANY prior to entry upon or use of its property to commence work upon, over, under, across or adjacent to COMPANY tracks by and contractor. 7. Subsequent to the award of any contract, and before any work is started on this project, a conference shall be held between the representatives of the ROAD AUTHORITY, the COMPANY, and the interested contractor at a time and place designed by the ROAD AUTHORITY for the purpose of coordinating the work to be performed by the several parties and at such time a schedule of operation will be adopted. 8. The COMPANY will credit the ROAD AUTHORITY for the salvage value of all track, communication and signal line material used on a temporary basis during the construction of the project and accepted by the COMPANY for return to its stock. The ROAD AUTHORITY shall be afforded a reasonable opportunity to inspect materials recovered by the COMPANY prior to disposal by sale of scrap. 9. When the roadway is to be closed to vehicular traffic while the railroad work is being performed, the ROAD AUTHORITY at its expense shall furnish, erect, maintain and remove the traffic control devices necessary to detour highway traffic after the COMPANY gives two weeks advance notice to the ROAD AUTHORITY’S engineer. 06/20/2019 8 When the COMPANY is to perform its work while maintaining highway traffic, the ROAD AUTHORITY shall furnish or cause to be furnished, at its expense, the signs, barricades and traffic control devices for erection by the COMPANY after two weeks advance notice is given to the ROAD AUTHORITY’S engineer. The COMPANY at the expense of the ROAD AUTHORITY shall erect, maintain, relocate and remove the signs, barricades, and other traffic control devices, including the furnishing of flagmen, as required to maintain highway traffic throughout the time the railroad work is being performed. Date: May 27, 2021 Agenda Item #: VI.C . To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:Don Uram, F inance Director Item Activity: Subject:R es olution No. 2021-03: Authorizing Exec ution of Tax Inc rement P ledge Agreement Ac tion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Adopt R esolution No. 2021-03 Authorizing Execution of Tax Increment P ledge Agreement. I N TR O D U C TI O N: T he C ity has determined to issue its G eneral O bligation Bonds, S eries 2021A, in the approximate principal amount of $14,505,000 to finance costs related to the C ity’s 2021 street reconstruction projects, as well as public improvements supporting the G randview 2 R edevelopment Tax Increment Financing D istrict. T he amount to be financed by T I F is $8.345M as shown on the attached P resale R eport. M innesota S tatutes, S ection 469.178, S ubdivision 2 requires that any pledge of tax increment for the payment of the principal of and interest on general obligation bonds issued by City be made by written agreement between the Authority and the C ity and filed with the county auditor. T hat agreement is attached. AT TAC HME N T S: Description Resolution No. 2021-03 Tax Increment Pledge Agreement Pres ale Report 4821-3472-6632\3 RESOLUTION NO. 2021-03 RESOLUTION AUTHORIZING EXECUTION OF TAX INCREMENT PLEDGE AGREEMENT A. WHEREAS, the City of Edina, Minnesota (the “City”), has determined to issue its General Obligation Bonds, Series 2021A, in the approximate principal amount of $14,505,000 (the “Bonds”), pursuant to Minnesota Statutes, Chapters 429, 475, and Section 469.178, the proceeds of which will be used, together with other available funds, to finance costs related to the City’s 2021 street reconstruction projects, as well as public improvements supporting the Grandview 2 Redevelopment Tax Increment Financing District (the “District”) in the City (collectively, the “Project”); and B. WHEREAS, on June 1, 2021, the City Council of the City proposes to adopt a resolution authorizing the issuance and awarding the sale of the Bonds; and C. WHEREAS, a portion of Bonds will be payable with tax increments (the “TIF”) realized by the Edina Housing and Redevelopment Authority (the “Authority”) from the District; and D. WHEREAS, the Authority administers the District; and E. WHEREAS, Minnesota Statutes, Section 469.178, Subdivision 2 requires that any pledge of tax increment for the payment of the principal of and interest on general obligation bonds issued under the aforementioned subdivision be made by written agreement by and between the Authority and the City and filed with the county auditor; and F. WHEREAS, it is necessary and expedient that the Authority and the City enter into a Tax Increment Pledge Agreement securing the Bonds with TIF from the District; and NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Authority, as follows: 1. Authorization to Execute. The Tax Increment Pledge Agreement, a form of which agreement is now on file in the office of the Authority, is hereby approved in substantially the form submitted to the Authority and the Chair and Executive Director are authorized and directed to execute the same on behalf of the Authority. 2. Filing. The Executive Director is directed to file a fully executed copy of the Tax Increment Pledge Agreement with the Hennepin County Auditor pursuant to Minnesota Statutes, Section 469.178, Subdivision 2. The motion for the adoption of the foregoing resolution was duly seconded by member _________________________ and, after full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: 4821-3472-6632\3 Passed and adopted this ____ day of May 2021. Attest: _____________________________ ___________________________ James Pierce, Secretary James B. Hovland, Chair STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) SS CITY OF EDINA ) CERTIFICATE OF EXECUTIVE DIRECTOR I, the undersigned duly appointed and acting Executive Director for the Edina Housing & Redevelopment Authority do hereby certify that the attached and foregoing Resolution was duly adopted by the Edina Housing & Redevelopment Authority at its Regular Meeting of May 14, 2021, and as recorded in the Minutes of said Regular Meeting. WITNESS my hand and seal of said City this _______ day of May, 2021. ___________________________ Executive Director 4822-2431-4344\2 TAX INCREMENT PLEDGE AGREEMENT This Tax Increment Pledge Agreement (the “Agreement”) dated as of June 1, 2021, is by and between the City of Edina, Minnesota (the “City”), and the Edina Housing and Redevelopment Authority (the “Authority”), and provides as follows: WHEREAS, the City has determined to issue its General Obligation Bonds, Series 2021A, in the principal amount of $14,505,0001 (the “Bonds”), the proceeds of which will be used, together with other available funds, to finance costs related to the City’s 2021 street reconstruction projects, as well as public improvements supporting the Grandview 2 Redevelopment Tax Increment Financing District (the “District”) in the City (collectively, the “Project”); and WHEREAS, a portion of the Bonds (the “Tax Increment Bonds”) are to be payable from tax increments realized by the Authority from the District. NOW, THEREFORE, to provide funds sufficient for the timely payment of the principal and interest on the Tax Increment Bonds, the City and the Authority hereby agree as follows: 1. In order to pay the principal of and interest on the Tax Increment Bonds when due, the Authority hereby pledges to the City, for deposit in the Bond Fund to be established by the resolution of the City expected to be adopted June 1, 2021 or thereafter (the “Bond Resolution”), for the payment of the Tax Increment Bonds, Available Tax Increments (hereinafter defined) in amounts sufficient, with other funds actually appropriated by the City to the Bond Fund, to pay the principal and interest that are due pursuant to the Bond Resolution on the dates determined by the City and, if and to the extent that the Available Tax Increments are ever insufficient for such purposes, and the City advances City funds to provide prompt and full payment of the Tax Increment Bonds, the Authority agrees to reimburse the City for such advances from Available Tax Increments thereafter received by the Authority. As used in this Agreement, “Available Tax Increments” means tax increments derived by the Authority from the District, excluding such tax increments as have heretofore been pledged to the payment of other tax increment bonds or other eligible costs. In discharging its obligations under this Agreement, the Authority expressly reserves the right to select from year to year Available Tax Increments from the District and to pledge or otherwise dedicate tax increments from the District to purposes other than the payment of the Tax Increment Bonds upon a finding by the Authority that the estimated Available Tax Increments then remaining will be sufficient from year to year to discharge the Authority’s payment obligations on the Tax Increment Bonds pursuant to this Agreement. 2. An executed copy of this Agreement shall be filed with the County Auditor of Hennepin County as required by Minnesota Statutes, Section 469.178, Subdivision 2. 3. This Agreement shall become effective upon the actual issuance and delivery of the Bonds. 1 Preliminary, subject to change. 2 4822-2431-4344\2 IN WITNESS WHEREOF, the City and the Authority have caused this Agreement to be duly approved and executed as of the day and year first above written. CITY OF EDINA, MINNESOTA By Mayor Attest: City Manager EDINA HOUSING AND REDEVELOPMENT AUTHORITY By Chair And Executive Director 4822-2431-4344\2 CERTIFICATE OF HENNEPIN COUNTY AUDITOR AS TO REGISTRATION OF TAX INCREMENT PLEDGE AGREEMENT The undersigned, being the duly qualified and acting County Auditor of the County of Hennepin, Minnesota, hereby certifies that, pursuant to Minnesota Statutes, Section 469.178, subdivision 2, there has been filed in my office an executed copy of a Tax Increment Pledge Agreement, dated June 1, 2021, between the City of Edina, Minnesota and the Edina Housing and Redevelopment Authority, relating to the pledge of tax increments from the Grandview 2 Redevelopment Tax Increment Financing District of the Authority to the debt service on the City’s General Obligation Bonds, Series 2021, dated June 24, 2021. WITNESS my hand this ___ day of ______________, 2021. County Auditor (SEAL) • • • • • • • • • • • City of Edina, Minnesota $14,505,000 General Obligation Bonds, Series 2021A Issue Summary Assumes Current Market AAA Rates plus 30bps Total Issue Sources And Uses Dated 06/24/2021 | Delivered 06/24/2021 PIR TIF Issue Summary Sources Of Funds Par Amount of Bonds $6,160,000.00 $8,345,000.00 $14,505,000.00 2021 Grandview 2 TIF Fund Revenues -400,000.00 400,000.00 Total Sources $6,160,000.00 $8,745,000.00 $14,905,000.00 Uses Of Funds Underwriter's Discount Allowance (0.90%)55,440.00 75,105.00 130,545.00 Estimated Costs of Issuance 52,235.78 70,764.22 123,000.00 Deposit to Capitalized Interest Fund (CIF)151,694.90 -151,694.90 Deposit to Project Construction Fund 5,896,939.84 8,600,726.83 14,497,666.67 Rounding Amount 3,689.48 (1,596.05)2,093.43 Total Uses $6,160,000.00 $8,745,000.00 $14,905,000.00 Series 2021A GO Bonds - P | Issue Summary | 4/30/2021 | 8:46 AM City of Edina, Minnesota $14,505,000 General Obligation Bonds, Series 2021A Issue Summary Assumes Current Market AAA Rates plus 30bps Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 06/24/2021 ----- 02/01/2022 --145,233.28 145,233.28 145,233.28 08/01/2022 --120,470.00 120,470.00 - 02/01/2023 345,000.00 0.550%120,470.00 465,470.00 585,940.00 08/01/2023 --119,521.25 119,521.25 - 02/01/2024 725,000.00 0.650%119,521.25 844,521.25 964,042.50 08/01/2024 --117,165.00 117,165.00 - 02/01/2025 730,000.00 0.750%117,165.00 847,165.00 964,330.00 08/01/2025 --114,427.50 114,427.50 - 02/01/2026 740,000.00 0.950%114,427.50 854,427.50 968,855.00 08/01/2026 --110,912.50 110,912.50 - 02/01/2027 745,000.00 1.050%110,912.50 855,912.50 966,825.00 08/01/2027 --107,001.25 107,001.25 - 02/01/2028 750,000.00 1.200%107,001.25 857,001.25 964,002.50 08/01/2028 --102,501.25 102,501.25 - 02/01/2029 760,000.00 1.350%102,501.25 862,501.25 965,002.50 08/01/2029 --97,371.25 97,371.25 - 02/01/2030 770,000.00 1.400%97,371.25 867,371.25 964,742.50 08/01/2030 --91,981.25 91,981.25 - 02/01/2031 780,000.00 1.550%91,981.25 871,981.25 963,962.50 08/01/2031 --85,936.25 85,936.25 - 02/01/2032 790,000.00 1.700%85,936.25 875,936.25 961,872.50 08/01/2032 --79,221.25 79,221.25 - 02/01/2033 810,000.00 1.800%79,221.25 889,221.25 968,442.50 08/01/2033 --71,931.25 71,931.25 - 02/01/2034 820,000.00 1.900%71,931.25 891,931.25 963,862.50 08/01/2034 --64,141.25 64,141.25 - 02/01/2035 835,000.00 2.000%64,141.25 899,141.25 963,282.50 08/01/2035 --55,791.25 55,791.25 - 02/01/2036 855,000.00 2.050%55,791.25 910,791.25 966,582.50 08/01/2036 --47,027.50 47,027.50 - 02/01/2037 870,000.00 2.100%47,027.50 917,027.50 964,055.00 08/01/2037 --37,892.50 37,892.50 - 02/01/2038 890,000.00 2.150%37,892.50 927,892.50 965,785.00 08/01/2038 --28,325.00 28,325.00 - 02/01/2039 435,000.00 2.300%28,325.00 463,325.00 491,650.00 08/01/2039 --23,322.50 23,322.50 - 02/01/2040 445,000.00 2.400%23,322.50 468,322.50 491,645.00 08/01/2040 --17,982.50 17,982.50 - 02/01/2041 460,000.00 2.500%17,982.50 477,982.50 495,965.00 08/01/2041 --12,232.50 12,232.50 - 02/01/2042 470,000.00 2.550%12,232.50 482,232.50 494,465.00 08/01/2042 --6,240.00 6,240.00 - 02/01/2043 480,000.00 2.600%6,240.00 486,240.00 492,480.00 Total $14,505,000.00 -$3,168,023.28 $17,673,023.28 - Yield Statistics Bond Year Dollars $162,803.29 Average Life 11.224 Years Average Coupon 1.9459209% Net Interest Cost (NIC)2.0261066% True Interest Cost (TIC)2.0152042% Bond Yield for Arbitrage Purposes 1.9239634% All Inclusive Cost (AIC)2.1007841% IRS Form 8038 Net Interest Cost 1.9459209% Weighted Average Maturity 11.224 Years Series 2021A GO Bonds - P | Issue Summary | 4/30/2021 | 8:46 AM City of Edina, Minnesota $6,160,000 General Obligation Bonds, Series 2021A PIR Portion Assumes Current Market AAA Rates plus 30bps Debt Service Schedule Date Principal Coupon Interest Total P+I CIF Net New D/S 105% of Total 02/01/2022 --57,049.90 57,049.90 (57,049.90)---- 02/01/2023 --94,645.00 94,645.00 (94,645.00)---- 02/01/2024 375,000.00 0.650%94,645.00 469,645.00 -469,645.00 493,127.25 509,634.94 (16,507.69) 02/01/2025 380,000.00 0.750%92,207.50 472,207.50 -472,207.50 495,817.88 509,634.93 (13,817.06) 02/01/2026 385,000.00 0.950%89,357.50 474,357.50 -474,357.50 498,075.38 509,634.93 (11,559.56) 02/01/2027 385,000.00 1.050%85,700.00 470,700.00 -470,700.00 494,235.00 509,634.94 (15,399.94) 02/01/2028 390,000.00 1.200%81,657.50 471,657.50 -471,657.50 495,240.38 509,634.94 (14,394.57) 02/01/2029 395,000.00 1.350%76,977.50 471,977.50 -471,977.50 495,576.38 509,634.94 (14,058.57) 02/01/2030 400,000.00 1.400%71,645.00 471,645.00 -471,645.00 495,227.25 509,634.93 (14,407.68) 02/01/2031 405,000.00 1.550%66,045.00 471,045.00 -471,045.00 494,597.25 509,634.94 (15,037.69) 02/01/2032 410,000.00 1.700%59,767.50 469,767.50 -469,767.50 493,255.88 509,634.93 (16,379.06) 02/01/2033 420,000.00 1.800%52,797.50 472,797.50 -472,797.50 496,437.38 509,634.94 (13,197.57) 02/01/2034 425,000.00 1.900%45,237.50 470,237.50 -470,237.50 493,749.38 509,634.94 (15,885.57) 02/01/2035 435,000.00 2.000%37,162.50 472,162.50 -472,162.50 495,770.63 509,634.94 (13,864.32) 02/01/2036 445,000.00 2.050%28,462.50 473,462.50 -473,462.50 497,135.63 509,634.93 (12,499.31) 02/01/2037 450,000.00 2.100%19,340.00 469,340.00 -469,340.00 492,807.00 509,634.94 (16,827.94) 02/01/2038 460,000.00 2.150%9,890.00 469,890.00 -469,890.00 493,384.50 509,634.95 (16,250.45) Total $6,160,000.00 -$1,062,587.40 $7,222,587.40 (151,694.90)$7,070,892.50 $7,424,437.13 $7,644,524.06 (220,086.93) Significant Dates Dated 6/24/2021 First Coupon Date 2/01/2022 Yield Statistics Bond Year Dollars $60,833.11 Average Life 9.876 Years Average Coupon 1.7467254% Net Interest Cost (NIC)1.8378600% True Interest Cost (TIC)1.8348141% Bond Yield for Arbitrage Purposes 1.9239634% All Inclusive Cost (AIC)1.9294442% Series 2021A GO Bonds - P | PIR | 4/30/2021 | 8:46 AM Estimated Assessment Revenue Levy Coverage Calculation City of Edina, Minnesota $8,345,000 General Obligation Bonds, Series 2021A TIF Portion Assumes Current Market AAA Rates Plus 30bps Debt Service Schedule Date Principal Coupon Interest Total P+I 105% of Total 02/01/2022 --88,183.38 88,183.38 92,592.55 92,592.55 - 02/01/2023 345,000.00 0.550%146,295.00 491,295.00 515,859.75 521,000.00 (5,140.25) 02/01/2024 350,000.00 0.650%144,397.50 494,397.50 519,117.38 521,000.00 (1,882.63) 02/01/2025 350,000.00 0.750%142,122.50 492,122.50 516,728.63 521,000.00 (4,271.38) 02/01/2026 355,000.00 0.950%139,497.50 494,497.50 519,222.38 521,000.00 (1,777.63) 02/01/2027 360,000.00 1.050%136,125.00 496,125.00 520,931.25 521,000.00 (68.75) 02/01/2028 360,000.00 1.200%132,345.00 492,345.00 516,962.25 521,000.00 (4,037.75) 02/01/2029 365,000.00 1.350%128,025.00 493,025.00 517,676.25 521,000.00 (3,323.75) 02/01/2030 370,000.00 1.400%123,097.50 493,097.50 517,752.38 521,000.00 (3,247.63) 02/01/2031 375,000.00 1.550%117,917.50 492,917.50 517,563.38 521,000.00 (3,436.63) 02/01/2032 380,000.00 1.700%112,105.00 492,105.00 516,710.25 521,000.00 (4,289.75) 02/01/2033 390,000.00 1.800%105,645.00 495,645.00 520,427.25 521,000.00 (572.75) 02/01/2034 395,000.00 1.900%98,625.00 493,625.00 518,306.25 521,000.00 (2,693.75) 02/01/2035 400,000.00 2.000%91,120.00 491,120.00 515,676.00 521,000.00 (5,324.00) 02/01/2036 410,000.00 2.050%83,120.00 493,120.00 517,776.00 521,000.00 (3,224.00) 02/01/2037 420,000.00 2.100%74,715.00 494,715.00 519,450.75 521,000.00 (1,549.25) 02/01/2038 430,000.00 2.150%65,895.00 495,895.00 520,689.75 521,000.00 (310.25) 02/01/2039 435,000.00 2.300%56,650.00 491,650.00 516,232.50 521,000.00 (4,767.50) 02/01/2040 445,000.00 2.400%46,645.00 491,645.00 516,227.25 521,000.00 (4,772.75) 02/01/2041 460,000.00 2.500%35,965.00 495,965.00 520,763.25 521,000.00 (236.75) 02/01/2042 470,000.00 2.550%24,465.00 494,465.00 519,188.25 521,000.00 (1,811.75) 02/01/2043 480,000.00 2.600%12,480.00 492,480.00 517,104.00 521,000.00 (3,896.00) Total $8,345,000.00 -$2,105,435.88 $10,450,435.88 $10,972,957.67 $11,033,592.55 (60,634.88) Significant Dates Dated 6/24/2021 First Coupon Date 2/01/2022 Yield Statistics Bond Year Dollars $101,970.18 Average Life 12.219 Years Average Coupon 2.0647564% Net Interest Cost (NIC)2.1384103% True Interest Cost (TIC)2.1259406% Bond Yield for Arbitrage Purposes 1.9239634% All Inclusive Cost (AIC)2.2061316% Series 2021A GO Bonds - P | TIF | 4/30/2021 | 8:46 AM Levy Coverage Calculation Grandview 2 TIF Revenue Contribution Date: May 27, 2021 Agenda Item #: VI.D. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:S tephanie Hawkinson, Affordable Housing Development Manager Item Activity: Subject:Extension of 4d P rogram Affordability P eriod for Edina York Villas Ac tion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approve a 10 year extension on affordability period for E dina York Villas as memorialized thtough an amended Declaration of R estrictive C ovenants. I N TR O D U C TI O N: I n 2018, the H R A approved a 4d property tax classification that would provide limited grant funding to a owner of a N aturally O ccurring Affordable Housing apartment in exchange for agreement to keep all or a portion of the rents affordable to households with incomes at or below 60% for 15-years. T he property would then qualify for the 4d tax classification for affordable housing thus reducing their property taxes. T here were no takers. T he program was amended in 2019 to require only a two-year affordability period. T he owner of E dina York Villas applied to the program and entered into a D eclaration of Restrictive Covenants to keep 100% of the apartment units affordable for 2-years. T he owner has requested that the D eclaration be amended to extend the affordability period for an additional 10-years. AT TAC HME N T S: Description Staff Report Amended Declaration November 2019 Staff Report May 27, 2021 Chair & Commissioners of Edina HRA Stephanie Hawkinson, Affordable Housing Development Manager Extension of 4d Program Affordability Period for Edina York Villas Information / Background: Healthy, stable, and affordable housing is important for the well-being, prosperity, and security of Edina residents. Due to housing, economic, and demographic trends, Edina is experiencing an affordable housing crisis. Already burdened low and moderate income tenants are increasingly paying more than 30 percent of their income on rent and utilities. At the same time, many rental property owners are faced with increased operating and maintenance costs as well as market opportunities to increase rents. The goal is to preserve affordability of Naturally Occurring Affordable Housing to provide added housing security for tenants and strengthen the bottom line for property owners. To address this in 2018 (revised in 2019) the HRA approved a 4d Property Tax Classification program to do the following: • Incentivize owners of Naturally Occurring Affordable Housing (NOAH) with four units or more to keep their rents affordable in exchange for property tax savings; • Reduce property tax obligation on affordable housing units; • Reduced barriers for property owners to enter into a program that assists low- and moderate- income renters. To qualify for the Low Income Rental Classification, also known as “4d property tax classification”, the federal government, state of Minnesota or local unit of government must provide financing to the rental housing property as evidenced by a document recorded against the property. 2019 Program Participation The 2019 pilot program entailed providing a grant from the City to enroll in the State’s 4d program. This grant is $100 per unit and capped at $2500 per building. This is a one-time only grant. One building entered this program: Edina York Villas at 6304 York Avenue South. The owner signed a Declaration of Restrictive Covenants to keep all 23 units affordable to households with incomes at or below 60% of AMI. The owner has requested that the Declaration be amended to extend the affordability period an additional 10-years. STAFF REPORT Page 2 Impact on Tax Base The City receives approximately 21% of the property taxes collected by the County. The City tax levy would be established by the City Council. The savings experienced by the NOAH properties would be redistributed to all other taxable properties. The City portion of property taxes for 6304 York were $11,183.57 in 2019; $10,621.45 in 2020; and with 4d in place - $7,543.83 in 2021. For the property owner, the savings on the full property tax liability (including taxes allocated to the County, School District, etc.) are $15,305 between 2020 and 2021, which makes it possible to place a cap on the rents. Area Median Income (AMI), and annual updates to rent and income restrictions With the approval of the amended Declaration, Edina York Villa apartments will remain affordable for an additional 10-years. The maximum rents that can be charged are based on a table produced by HUD and monitored by Minnesota Housing. The City of Edina publishes the annual rent and income schedule, based on the regional 60% AMI standard that owners can reference to stay in compliance with the program over the added 10 year commitment. 60% AMI Maximum Rent Limits, 2021 Program Studio/Efficiency $1,102 1 Bedroom $1,181 2 Bedrooms $1,417 3 Bedrooms $1,636 AMENDMENT OF DECLARATION OF RESTRICTIVE COVENANTS The undersigned has previously filed a “Declaration of Restrictive Covenants” (the “Declaration”) in the official records of the Hennepin County Recorder’s Office, dated as of March 18, 2020, and filed as Document No. 10772461, which Declaration declared in Section 1: AFFORDABILITY PERIOD – A period commencing on the Date of this Declaration and continuing for 2 years. With the consent of the City of Edina, the undersigned desires to amend the Affordability Period of the Declaration so that the Affordability Period lasts for 12 years rather than 2 years. The Declaration, with the consent of the City of Edina, is hereby amended by this Amendment of Declaration (“Amendment”) by changing the Affordability Period to 12 years. All other terms and conditions of the Declaration remain in force and are unaffected by this Amendment. [Remainder of page intentionally left blank] 2 Date: __________________, 2021 EDINA YORK VILLA, LLC a Minnesota Limited Liability Company By ______________________________ Ken Johnson, President STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ________ day of _______________, 2021, by Ken Johnson, the President of Edina York Villa, LLC, a Minnesota Limited Liability Company, on behalf of the Company. Notary Public (Seal) Instrument Drafted by: DRAFTED BY: CAMPBELL KNUTSON Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 Telephone: (651) 452-5000 LCMK [Signature page to Amendment of Declaration] 3 CONSENT The City of Edina hereby consents and approves of the recording of the foregoing Amendment of Declaration. Date: __________________, 2021 CITY OF EDINA By: James Hovland, Mayor By: Scott Neal, City Manager STATE OF MINNESOTA ) )ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this __________ day of _____________________, 2021, by James Hovland and Scott Neal, respectively the Mayor and City Manager of the City of Edina, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. __________________________________________ Notary Public November 14, 2019 Chair & Commissioners of Edina HRA Stephanie Hawkinson, Affordable Housing Development Manager Approval of Multifamily Affordable Housing Property Tax Relief Pilot Program - Revised Information / Background: Healthy, stable, and affordable housing is important for the well-being, prosperity, and security of Edina residents. Due to housing, economic, and demographic trends, Edina is experiencing an affordable housing crisis. Already burdened low and moderate income tenants are increasingly paying more than 30 percent of their income on rent and utilities. At the same time, many rental property owners are faced with increased operating and maintenance costs as well as market opportunities to increase rents. The goal is to preserve affordability of Naturally Occurring Affordable Housing to provide added housing security for tenants and strengthen the bottom line for property owners. Purpose: • Incentivize owners of Naturally Occurring Affordable Housing (NOAH) with four units or more to keep their rents affordable in exchange for property tax savings; • Reduce property tax obligation on affordable housing units; • Reduced barriers for property owners to enter into a program that assists low- and moderate- income renters. To qualify for the Low Income Rental Classification, also known as “4d property tax classification”, the federal government, state of Minnesota or local unit of government must provide financing to the rental housing property as evidenced by a document recorded against the property. Lessons Learned from Non-Participation Last year this program was introduced that combined the 4d program with energy efficiency grants in exchange for a 15-year affordability period. The program was marketed to all NOAH property owners and managers, including in-person meetings, yet no one participated. As a follow-up, Staff met with two of the owners of the majority of NOAH properties in Edina to ascertain the reason for non-participation. Both expressed reluctance to participate in a Government program that limited their business options for 15-years. Yet, both stated that property taxes were creating a tension for keeping the rents low and they were interested in relief. Neither believed that STAFF REPORT Page 2 receiving an energy efficient grant would lower their operating expenses enough to justify entering into a 15-contract with the City. Program Restructuring Rather than providing two components to the program that offered energy efficiency grants in addition to a financial incentive to enter into the 4d program, this revised pilot program focuses on the 4d component only. The rationale is to reduce the barrier to entry by allowing the owners to experience the benefits of property tax relief for two years prior to making a commitment for a longer term. This may provide the incentive needed to continue program participation in future years for a longer duration. The revised pilot program is limited to providing a grant from the City to enroll in the State’s 4d program. This grant is $100 per unit and capped at $2500 per building. This is a one-time only grant. Initially the property owners will need to enter into a 2-year land use Declaration for affordability. Who is eligible? Owners of market-rate multifamily properties that meet the following criteria: • At least 20% of the rental units are occupied by and affordable to households whose family income is at or below 60% of the Area Median Income. • Buildings must have at least 4 units total. • Income qualification is determined upon initial occupancy. Thereafter, increased incomes of tenants in affordable units will not violate the program requirements. • Existing tenants in units that have program compliant rents do not need to be income qualified. • Buildings can include units with owner occupants, but only rental units are eligible for 4d tax status. Program Component Qualified building owners, with buildings having at least four units, that agree to keep a minimum of 20% of units per building affordable to households making up to 60% of Area Median Income (AMI) will receive 40% property tax reduction on qualifying units (Low Income Rental Classification, also known as “4d property tax classification”). Benefits: • Payment of first year application fee to the State of Minnesota for certification of the 4d property tax classification ($10/unit). • Grant to each 4d property, in the amount of $100 per affordable unit, capped at $2,500 per property. • Reduced property tax obligation. • Preserve affordable for each year they participate in the program, with an initial term of 2 years. To renew participation in the program beyond the term of the Declaration, the property owners would need additional financial participation from the City, at which time we could negotiate a longer affordability period. Definition Non-4d apartments have a tax capacity of 1.25% Units classified as 4d that are valued at $139,000* or less have a tax capacity rate of 0.75% STAFF REPORT Page 3 Units classified as 4d that are valued greater than $139,000* have a tax capacity rate of 0.25% * This number is subject to change each year. This is the first tier for taxes paid in 2018 Example: 25 unit building constructed in 1968 valued at $3,250,000 or $130,000 per unit. Non-4d property taxes paid in 2018: $3,250,000 x .0125 = 40,625 tax capacity Taxes = $52,630 Scenario 1: 6 units, 24%, classified as 4d and the remaining 19 units are market rate, or non-4d 6 x $130,000 = $780,000 X .0075 = 5,850 tax capacity 19 x $130,000 = $2,470,000 x .0125 = 30,875 tax capacity 36,725 tax capacity Taxes = $47,836 ($4,794 savings) Scenario 2: 100% of the units are affordable and classified as 4d $3,250,000 x .0075 = 24,375 tax capacity Taxes = $32,658 ($19,972 savings) Impact on Tax Revenue The City receives approximately 21% of the property taxes collected by the County. The City tax levy would be established by the City Council. The savings experienced by the NOAH properties would be redistributed to all other taxable properties. Process and program requirements • Property Owner will submit a 2-page 4d program application and rent roll, and sign a Participation Agreement with the City. • Participation Agreement includes commitment to affirmative fair marketing and prohibits involuntary displacement of existing tenants. • City will provide a grant to each 4d property, in the amount of $100 per affordable unit, capped at $2,500 per property. This funding is intended to help property owners cover the cost of the 4d administrative and reporting requirements associated with the program. • Property Owners will select the percentage of units in their building to restrict, with a minimum of 20%. • Property owner will sign 4d application. • City will submit signed 4d application and application fee to Minnesota Housing on behalf of the property owner for their first year only. Owners are responsible for submitting a renewal application to Minnesota Housing for the second year. See “Annual Owner Compliance” for additional information. STAFF REPORT Page 4 Financial Impact Revised Pilot Program: $50,000 budget Source of Funds: Affordable Housing Trust Fund Funding Available $ 2,160,000 Nolan Mains $ 750,000 2018 4d and Energy Efficiency Pilot Program $ 160,000 2019 4d Pilot Program $ 50,000 TOTAL $ 960,000 Remaining Available $ 1,200,000 What does annual compliance involve? • To continue to receive 4d status Property Owner is required to submit an annual 4d application to Minnesota Housing as well as an annual report to the City in a form provided by the City. • The owners need to complete these items on annual basis to remain eligible for 4d tax status. • To extend this program beyond the initial two year, the Declaration would need to be amended for a longer term. Notes on Area Median Income (AMI), and annual updates to rent and income restrictions The City of Edina will publish an annual rent and income schedule, based on the regional 60% AMI standard that owners can reference to stay in compliance with the program over the 10 year commitment. 60% AMI Maximum Rent Limits, 2019 Program Studio/Efficiency $1,050 1 Bedroom $1,125 2 Bedrooms $1,350 3 Bedrooms $1,560 4 Bedrooms $1,740 Date: May 27, 2021 Agenda Item #: VI I.A. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:S tephanie Hawkinson, Affordable Housing Development Manager Item Activity: Subject:Metro HR A F amily Affordable Hous ing P rogram P artners hip Agreements Ac tion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approve the L oan Documents with the Metro H R A for the F amily Affordable H ousing P rogram and authorize the execution of the documents. I N TR O D U C TI O N: On November 12, 2020, the H R A approved $2,000,000 to expand the M etro H R A’s Family Affordable Housing P rogram. S taff requested a change to the program on March 11, 2021 so that rather than the H R A directly acquiring the houses and leasing to the Metro H R A, the H R A would lend the money for the M etro H R A to directly acquire the houses. T he basics of the revised program are as follows: - E dina H R A will lend the M etro H R A $2,000,000. - Metro H R A will acquire, maintain and manage the houses and make available to families who qualify for their program. - A L oan Agreement between the H R A and M etro H R A will be forgiven is program requirements remain in place for 25 years. - A D eclaration of Restrictive Covenants will be placed on the houses to keep them affordable that will extend beyond the term of the Loan Agreement. - E dina H R A has first rights of offer if the M etro H R A elects to sell the homes. T he Metro H R A has secured financing from H U D for on-going rental assistance and has a robust Tenant S election P lan. AT TAC HME N T S: Description Staff Report Loan Agreement Declaration of Restrictive Covenants Hous ing Quality Standards Hous ing Purchase Criteria Tenant Slection Criteria Leas e Example Property Management Contract May 14, 2021 Chair and Commissioners of the Edina HRA Stephanie Hawkinson, Affordable Housing Development Manager Metro HRA Family Affordable Housing Program Partnership Agreements Information / Background: On November 12, 2020, the HRA approved $2,000,000 to expand the Metro HRA’s Family Affordable Housing Program (FAHP). In March 2021 Staff proposed changes to the program whereby the funds would be lent to the Metro HRA for the acquisition, rehabilitation, and ongoing maintenance and management of single-family houses for FAHP. These funds will be structured as a loan that is forgiven after 25-years, with a Declaration of Restrictive Covenants placed on each acquired house. The Metro HRA currently owns and manages eight properties in Edina that they acquired between 2001 and 2004 following the 1995 landmark Hollman consent decree that called for the deconcentration of affordable housing in Minneapolis. Their housing portfolio in Edina has not increased in 17-years despite the growing need for affordable housing. Through a continued partnership with the Edina HRA, the number of houses serving households will increase for those who need more bedrooms and open space than available in apartments. The City and the Metro HRA entered into a Cooperative Agreement in 2001. This Agreement covers up to 20-housing units within Edina, which would include the new units cover by this loan. The Agreement states that the Metro HRA will own and manage scattered site properties in Edina that will be exempt from all property taxes, but the Metro HRA will make a payment in lieu of taxes. In addition: • Quality improvements will be made to all properties purchased by Metro HRA, thus improving the quality of the overall housing stock. • Participation in FAHP will potentially gain additional points on upcoming transportation funding applications Edina submits to the Metropolitan Council for consideration. • Residents of Edina will be provided with long-term, quality, work-force housing for families. • Edina residents will not be displaced as the Council plans to purchase vacant units or units for sale by their owner occupant. STAFF REPORT Page 2 • FAHP units will be rental housing that is professionally managed, with resident screening that will help ensure residents have a successful rental experience. • Appropriate services will be provided to residents, particularly in the area of job attainment and job enhancement. Staff is recommending approval for the amended Cooperative Agreement that now reflects that the individual housing units are now supported by the Housing and Urban Development departments Section 8 program rather than as public housing, which is a more secure source of rental assistance. The Cooperative Agreement also reflects that the Edina HRA will get right of first offer Metro HRA elects to sell. If the Edina HRA opts to not buy the property, the Metro HRA will make the offer to the Edina Housing Foundation. The Metro HRA’s maintenance criteria and tenant selection plan are included in the attachments. The $2,000,000 forgivable loan will allow for the existing Family Affordable Housing Program to grow by approximately four households. Loan Terms • 25-years, 0% interest • Forgiven at year 25 when all conditions are met: o Houses are rented to income eligible households. o Properties are maintained to rehabilitation standards as prescribed by HUD. o Declaration of Restrictive Covenants are placed on each house to maintain affordability. • The Edina HRA gets right of first offer if the Metro HRA elects to sell a house acquired with these funds. • Restrictive Covenant stay in effect beyond the loan term until the Metro HRA elects to sell with first offer being to the Edina HRA. As the loan is being made to another government entity and not to a private individual or corporation, no Mortgage will be placed on the property. If the Metro HRA were to sell the property in violation of the loan agreement before the expiration of 25-years, Edina would have a contract claim against the Metro HRA for the loan amount and the continuing restrictive covenant with Right of First Refusal recorded against the property, which is also codified in the Cooperation Agreement. Compliance with Comprehensive Plan and Supporting Documentation 1. Quality of Life Survey: Edina ranked lower than other Minnesota communities in the area of availability of affordable quality housing with only 32% rating this as excellent or good. The Metro HRA partnership creates additional affordable housing opportunities. 2. Maxfield Market Study: a. The percentage of households with children is increasing. The Metro HRA partnership focuses in single family houses that will serve households with children. b. 40,898 Edina employees commute into the City for work (pre-COVID numbers). The Metro HRA partnership will create opportunities for people who work in Edina to live closer to their jobs. STAFF REPORT Page 3 c. 42% of Edina renters are cost burdened. The Metro HRA partnership charges households only 30% of their income. The remainder is paid through rental assistance. 3. 2018 Comprehensive Plan (Chapter 4): The Metro HRA partnership aims to provide affordable housing to households with children. a. Goal 1: Accommodate all planned residential growth in the city based on planned infrastructure investments and other community goals and assets. i. Recognize that successfully reaching affordable housing goals assists the city in achieving related community goals, including Accommodating housing for families with children in Edina schools. b. Goal 2: Encourage the development and maintenance of a range of housing options affordable to residents at all income levels and life stages. c. Goal 4: Support the development of a wide range of housing options to meet the diverse needs and preferences of the existing and future Edina community. Staff Recommendation: Staff recommends that the HRA approve and execute the Loan Agreement and Amended Cooperation Agreement. 4852-8762-2631\2 Loan Agreement This Loan Agreement (the “Agreement”) is entered into as of May ___ 2021 by and between the Housing and Redevelopment Authority of Edina, Minnesota, a public body corporate and politic organized and existing under the laws of the State of Minnesota (the “HRA” or “Lender”) and the Metropolitan Council, a public corporation and political subdivision of the State of Minnesota (the “Council”). Recitals: WHEREAS, the HRA was established for the purpose of undertaking urban redevelopment projects and assisting with the development of affordable housing in the City of Edina, Minnesota (the “City”); WHEREAS, the Council, through its Metro HRA unit, exercises housing and redevelopment authority powers pursuant to Minnesota Statutes, section 473.195; WHEREAS, the Council owns and operates Family Affordable Housing Program scattered-site housing units (“FAHP Units”) within certain municipalities in Anoka, Hennepin, and Ramsey Counties, including the City. WHEREAS, the FAHP Units within the City are operated by the Council as Section 8-assisted units under the federal Section 8 Project-Based Voucher program (the “Program”). WHEREAS, Council and the City are parties to a certain Cooperation Agreement dated April 18, 2001 and that certain Supplemental Agreement dated April 18, 2001 relating to the acquisition of the FAHP Units within the City and the operation of the FAHP Units within the City under the Program (collectively, the “City Cooperation Agreement”); WHEREAS, the City and HRA previously created an economic development tax increment financing (“TIF”) district created known as the “Southdale 2 TIF District” pursuant to and in conformity with Minnesota Statutes, Sections 469.001 to 469.047 and Sections 469.174 to 469.1794, inclusive, as amended (the “TIF Act”) and special modifications to the TIF Act secured by the HRA and the City to support the creation of new affordable housing in the City as set forth in Minnesota Session Laws 2014, Chapter 308, Article 6, Section 8, as amended by Minnesota Session Laws 2017, First Special Session Chapter 1, Article 6, Sections 11 and 16 and Minnesota Session Laws 2019, First Special Session Chapter 6, Article 7, Section 3 (the “Special TIF Housing Legislation”); WHEREAS, in accordance with the Special TIF Housing Legislation the HRA Edina is authorized to use certain tax increment generated from the Southdale 2 TIF District for housing projects in the City; WHEREAS, the HRA, as lender, has agreed to loan, and the Council, as borrower, has agreed to borrow, upon the terms and conditions of this Agreement, a forgivable loan in the aggregate amount of up to $2,000,000.00 funded from such tax increment generated from the Southdale 2 TIF District to finance Borrower’s acquisition of single-family residential properties located within the City, approved by the HRA as provided herein, and eligible as FAHP Units (each an “Eligible Property”, and collectively, “Eligible Properties”), and lease the Eligible Properties to low- or moderate-income families under the terms and conditions of this Agreement, the Program, and the City Cooperation Agreement; NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and in consideration of the mutual covenants and agreements hereinafter contained, the parties hereto hereby agree as follows: 2 4852-8762-2631\2 Article 1 Loan 1.1. Loan. On the terms and subject to the conditions hereof, the HRA agrees to make loan advances (each an “Advance”) to the Council from time to time in the aggregate amount not to exceed $2,000,000.00 (the “Loan”). 1.2. The Note. The Advances shall be evidenced by a single promissory note of the Council (the “Note”), in a form reasonably required by the HRA, in the amount of the Loan. 1.3. Interest Rate. (a) Interest Rate. Interest on each Advance hereunder shall be interest free except upon the occurrence of an Event of Default. (b) Interest Upon Event of Default. Upon the occurrence of any Event of Default, each Advance shall, at the option of the HRA, bear interest until paid in full at the rate otherwise applicable thereto plus twelve percent (12.0%) per annum. 1.4. Purpose and Use of the Loan. The Council represents, warrants, and agrees that the Council shall use the proceeds of each Advance only for the acquisition of Eligible Properties. Each Eligible Property shall be subject to the HRA’s prior approval, such approval not to be unreasonably withheld. 1.5. Forgiveness; Repayment. (a) So long as no Event of Default has occurred and is continuing on the date that is 25 years after the date of the first Advance (the “Forgiveness Date”), then the Loan will be deemed fully forgiven as of the Forgiveness Date (b) If all or any portion of any portion of the Loan (including any payment of interest or principal) is required to be repaid in accordance with this Agreement and is not paid within thirty (30) days after the date such payment is due, the Council shall pay a late charge equal to four percent (4%) of the amount of such unpaid payment. the Council acknowledges that the HRA will incur additional expenses as a result of any late payments hereunder, which expenses would be impracticable to quantify, and that the late charge under this section is a reasonable estimate of such expenses. 1.6. Procedure for Advances. (a) Advance Request. Any request by the Council for an Advance (“Advance Request”) shall be in writing and shall specify: (i) the requested Advance date (which may be no later than 10 business days before the anticipated closing date of the Council’s purchase of the applicable Eligible Property); (ii) the amount of the requested Advance; 3 4852-8762-2631\2 (iii) the name, contact information, and wire instructions for the title company or escrow agent that will be responsible for closing the purchase and sale of the applicable Eligible Property (the “Title Company”), if applicable; (iv) the address and true and correct legal description of the Eligible Property to which the requested Advance will be applied; (v) a narrative account with a detailed description of how the Advance will be used for such Eligible Property and the estimated time frame for rehabilitating (if applicable) and leasing the Eligible Property through the Program; and (vi) a certified financial account of the projected expenditures of such Advance. Within five (5) business days following receipt of the Advance Request, the HRA shall notify the Council whether such Advance Request complies with the terms and conditions of this Agreement, or if such Advance Request does not so comply, the HRA will notify the Council of any deficiencies. (b) Advances for Acquisition of Eligible Properties. Upon the HRA’s approval of the Advance Request, the HRA shall advance to the Title Company not later than 12:00 PM on the requested Advance date, the principal amount of the requested Advance by delivering to the Title Company its check or wire transfer of funds for such amount set forth in such Advance Request. The HRA shall instruct the Tile Company to hold each such Advance in escrow for the benefit of the Council and to apply such portion of the Advance to the purchase price of the applicable Eligible Property and to disburse such portion of the Advance to the party or parties who are entitled to the proceeds of the sale of such applicable Eligible Property upon the applicable Closing. 1.7. Conditions to all Advances. The HRA shall not have any obligation to make any Advance hereunder unless all conditions to an Advance hereunder have been satisfied, all representations and warranties of the Council made in this Agreement remain true and correct, and no Event of Default exists. 1.8. Restrictive Covenant; Right of First Option to Purchase. The HRA’s interest in each Eligible Property that is financed all or in part with the Loan shall be subject to a restrictive covenant with right of first option to purchase in favor of the HRA in substantially the form attached as Exhibit A (“Restrictive Covenant”), which shall (i) restrict the use of the Eligible Property to use as a single-family residential home for use by to low- or moderate-income families in accordance with the Program and (ii) grant the HRA a first right of option to purchase the Eligible Property. The Council shall cause each such Restrictive Covenant to be recorded against the applicable Eligible Property immediately following the Council’s vesting deed. All recording fees and other applicable costs for each Restrictive Covenant shall be paid by the Council. Article 2 Other Loan Covenants 2.1. Covenants. The Council shall undertake the following obligations in connection with this Agreement: 4 4852-8762-2631\2 (a) Not permit or suffer the use of any of the Eligible Properties for any purpose other than the use for which the same is intended at the time of execution of this Agreement; keep the Eligible Properties in good repair and condition, ordinary wear, tear and depreciation excepted; not commit or permit waste; not alter the design or structural character of any building now or hereafter erected on the land without the prior written consent of the HRA. (b) Cause the Eligible Properties to comply with all such municipal ordinances and regulations and all applicable federal regulations, and with all rules of the applicable fire rating or inspection organization, bureau, association, or office, which are now or may hereafter become applicable. (c) Maintain complete records of receipts and expenditures for all Advances, which such records shall be available to the HRA and its representatives for inspection and copying at all reasonable times. (d) From time to time, as reasonably requested by the HRA, deliver to the HRA a summary of all of the Council’s housing programs and activities in the City, including, but not limited to, the Program, in such form as is mutually agreed upon by the parties; (e) Make timely payment of all property taxes as they come due with respect to the Eligible Properties; (f) Insure the Eligible Properties from loss by fire, lightning, and risk customarily covered by standard extended coverage endorsement, in amounts of not less than the full replacement cost of the improvements on the applicable Eligible Property; (g) Obtain and keep in full force and effect comprehensive general public liability insurance covering the legal liability of the Council against claims for bodily injury, death, or property damage occurring on, in, or about the Eligible Properties, with commercially reasonable amounts and limits and naming the HRA as additional insured. Article 3 Default 3.1. Event of Default. Any of the following shall constitute an “Event of Default” hereunder and shall entitle the HRA to exercise its remedies under Section 3.2: (a) The Council sells, conveys, transfers, encumbers, mortgages, assigns, pledges, or grants any option with respect to or grant any other interest in any Eligible Property, or any part thereof, or creates, incurs, assumes or suffers to exist any lien or on any portion of the any Eligible Property, in each case, without the HRA’s prior written consent; (b) The occurrence and continuance beyond any applicable notice and cure periods of a default by the Council under the City Cooperative Agreement or Restrictive Covenant; (c) If the Council (i) fails to make any payment of principal or interest required to be paid under this Agreement within 10 days following notice from the HRA that payment is past due or (ii) fails to perform any other obligation required to be performed under this Agreement within 30 days following notice from the HRA that the date of performance is past due; 5 4852-8762-2631\2 (d) If the Council shall be adjudicated a bankrupt or insolvent, and such adjudication shall continue undischarged or unstayed for a period of 30 days; or the Council shall make an assignment for the benefit of creditors; or the Council shall apply for or consent to the appointment of any receiver, trustee, or similar officer for it or for all or any substantial part of its property; or such receiver, trustee or similar officer shall be appointed without the application or consent of the Council, as the case may be; (e) If the Council’s breach of, or failure by the Council to comply with, any other material term, provision, agreement or covenant in this Agreement, which breach or failure continues unremedied for 30 days. 3.2. Remedies; Acceleration of Maturity. Upon the occurrence of any Event of Default, the HRA may exercise all rights and remedies under this Agreement, the Note, and under any applicable law. Without limited the generality of the foregoing, upon an Event of Default, the HRA may accelerate the Loan, whereupon the outstanding principal balance and accrued but unpaid interest shall become immediately due and payable. Article 4 Miscellaneous 4.1. General. The relationship of the HRA and the Council is that of grantor and grantee and debtor and creditor and does not constitute a partnership, joint venture, or any other type of business organization. Neither party shall have any authority to act on behalf of or obligate the other party. The HRA assumes no liability whatsoever for any decision, action or omission taken by the Council at any time prior to, during or after the term of the Loan described in this Agreement. 4.2. Modifications. No amendment, modification or waiver of any provision of this Agreement or consent to any departure by the Council therefrom shall in any event be effective unless the same shall be in writing and signed by the HRA and the Council, and then such amendment, modifications, waiver or consent shall be effective only in the specific instance and for the purpose for which given. 4.3. Assignment. Neither this Agreement nor any of the rights, benefits, duties or obligations provided herein may be assigned by the Council, without the prior written consent of the HRA. 4.4. Indemnification. The Council hereby agrees to defend, protect, indemnify and hold harmless the HRA and its affiliates and the directors, officers, employees, attorneys and agents of the HRA and its affiliates (each of the foregoing being an “Indemnitee” and all of the foregoing being collectively the “Indemnitees”) from and against any and all claims, actions, damages, liabilities, judgments, costs and expenses (including all reasonable fees and disbursements of counsel which may be incurred in the investigation or defense of any matter) imposed upon, incurred by or asserted against any Indemnitee, whether direct, indirect or consequential and whether based on any federal, state, local or foreign laws or regulations (including securities, environmental and commercial laws and regulations), under common law or on equitable cause, or on contract or otherwise: (a) by reason of, relating to or in connection with the execution, delivery, performance or enforcement of this Agreement, the Note, or any Restrictive Covenant, any commitments relating thereto, or any transaction contemplated thereby; or (b) by reason of, relating to or in connection with any credit extended or used under this Agreement, the Note, or any Restrictive Covenant, or any act done or omitted by any 6 4852-8762-2631\2 person, or the exercise of any rights or remedies thereunder, including the acquisition of any collateral by the HRA by way of foreclosure of the lien thereon, deed or bill of sale in lieu of such foreclosure or otherwise; provided, however, that the Council shall not be liable to any Indemnitee for any portion of such claims, damages, liabilities and expenses resulting from such Indemnitee’s gross negligence or willful misconduct. The indemnification provisions set forth above shall be in addition to any liability the Council may otherwise have. Without prejudice to the survival of any other obligation of the Council hereunder, the indemnities and obligations of the Council contained in this section shall survive the payment and performance in full of the other obligations under this Agreement. 4.5. Entire Agreement. This Agreement and the Note and any Restrictive Covenant embody the entire agreement and understanding between the Council and the HRA with respect to the subject matter hereof and thereof. This Agreement supersedes all prior agreements and understandings relating to the subject matter hereof. 4.6. HRA Approval; Representatives. Whenever this Agreement provides for approval by or consent of the HRA, such approval or consent shall be given by and effective upon action, respectively, by the Executive Director of the HRA or their designee, unless (a) this Agreement explicitly provides for approval or consent by the Board of the HRA, (b) approval or consent by the Board of the HRA is required by applicable law, or (c) the approval or consent, in the opinion of the Executive Director, would result in a material change in the terms of this Agreement. 4.7. Attorney’s Fees. In any litigation, proceeding or action between the parties involving their respective rights and duties of the parties hereunder, the prevailing party shall be entitled to its reasonable attorney’s fees. 4.8. Counterparts; Electronic Delivery. This Agreement may be signed in any number of counterparts each of which shall be deemed to be an original and all of which taken together shall constitute one and the same instrument. This Agreement may be executed and delivered electronically, which, when delivered, shall constitute an original signature for all purposes. 4.9. Governing Law. The rights and obligations of the HRA and the Council under this Agreement shall be construed under and governed by the laws of the State of Minnesota 4.10. Notices. Any notice or other communication to any party in connection with this Agreement shall be in writing and shall be sent by manual delivery, overnight courier, or United States mail (postage prepaid), addressed to such party at the address specified below, or at such other address as such party shall have specified to the other party hereto in writing, at least 10 calendar days prior to the effective date thereof. All periods of notice shall be measured from the date of delivery thereof if manually delivered, from the first business day after the date of sending if sent by overnight courier, or from four (4) days after the date of mailing if mailed,. If to HRA: Housing and Redevelopment Authority of Edina, Minnesota 4801 West 50th Street Edina, MN 55424 Attention: Executive Director If to the Council: _________________________________ _________________________________ _________________________________ 7 4852-8762-2631\2 Attention: _________________________________ [The rest of this page is intentionally blank. Signature page follows.] [Signature Page to Loan Agreement] 4852-8762-2631\2 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date specified above. HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA, MINNESOTA By: _________________________________________ James B. Hovland, Chair By: _________________________________________ Scott H. Neal, Executive Director METROPOLITAN COUNCIL By: ______________________________________ LizBeth Barajas, Director Community Development [Exhibit A to Loan Agreement] 4852-8762-2631\2 Exhibit A Restrictive Covenant 1 4818-5078-4231\2 DECLARATION OF COVENANTS AND RESTRICTIONS WITH RIGHT OF FIRST OPTION TO PURCHASE This Declaration of Covenants and Restrictions with Right of First Option to Purchase (this “Declaration”) is made as of the _____ day of ______, 202___, by Metropolitan Council, a public corporation and political subdivision of the State of Minnesota (“Declarant”). Recitals A. Declarant is the owner of certain real property situated in the city of Edina (the “City”), county of Hennepin, state of Minnesota, located at __________________________ and legally described in the attached Exhibit A (the “Property”). B. Declarant and the Housing and Redevelopment Authority of Edina, Minnesota, a public body corporate and politic organized and existing under the laws of the State of Minnesota (the “HRA”) are parties to that certain Loan Agreement dated May ____, 2021 (as may be amended from time to time, the “Loan Agreement”). C. Pursuant to the Loan Agreement, the HRA provided certain loan assistance to Declarant for its acquisition of the Property (the “Loan”) and as a condition to such Loan has required that Declarant enter into this Declaration with respect to the Property. NOW, THEREFORE, Declarant makes the following Declaration, hereby specifying that said Declaration shall constitute covenants to run with the land and shall be binding on all parties in interest and their respective successors and assigns: 1. Use Restriction. The Property shall not be used for any purpose other than a single-family rental home, operated by the Council as Section 8-assisted units under the federal Section 8 Project-Based Voucher program, or any successor program approved by the HRA (the “Program”), and leased to families qualifying for housing assistance under the Program. 2. Additional Covenants, Representations, and Warranties of Declarant. (a) Legal Compliance. Declarant shall maintain the Property in compliance with all requirements of the Loan Agreement applicable ordinances, building and use restrictions, code- required building permits, and any requirements with respect to licenses, permits, and agreements necessary for the lawful use and operation of the Property. (b) Casualty. Promptly upon any casualty loss or damage to all or any part of the Property (including subsurface structural support elements), Declarant shall proceed with diligence to restore the Property to the condition prior to the casualty with the insurance proceeds obtained with respect to the loss or damage to the extent the insurance proceeds recovered allow for such rebuilding. (c) Transfer Restrictions. Declarant shall not sell, convey, transfer, mortgage, or otherwise encumber the Property or any interest therein without the HRA’s consent until the earlier of (i) __________________2046 and (ii) the repayment of the Loan and any interest thereon in full (such date referred to herein as the “End of the Loan Term”). 3. Right of First Option to Purchase. 2 4818-5078-4231\2 (a) If, after the End of the Loan Term, Declarant desires to sell or otherwise transfer the Property, then the Declarant shall first offer the Property to the HRA for purchase by the HRA (the “Offer”) for a purchase price (“Purchase Price”) of the then current fair market value of the Property (the “Fair Market Purchase Price”), as determined in accordance with this Section. The HRA shall have the option for a period of 60 days following receipt of the Offer to elect to purchase the Property for Fair Market Purchase Price (the “Option Period”). If the HRA does not notify the Declarant of its election to exercise the Option within the Option Period, then the Declarant shall be free to sell the Property to any other party. (b) The parties shall endeavor to mutually agree on the Fair Market Purchase Price. If the parties are unable to agree upon the Fair Market Purchase Price, then at any time either party may elect, by written notice to other party, to have the Fair Market Purchase Price determine by an appraisal conducted by a mutually acceptable licensed, reputable real estate appraiser. All appraisal costs shall be shared equally between the parties. (c) The closing of the Option (the “Closing”) shall occur on or before the date that is 60 days after the determination of the Purchase Price. Income and expenses of the Property shall be prorated as of the date of Closing. At the Closing the Declarant shall execute and deliver to the HRA the following, all in form and content reasonably satisfactory to the HRA: (i) a limited warranty deed (the “Deed”) conveying the Premises to the HRA and (ii) such affidavits, certificates or other documents as may be reasonably required by a title company to record the Deed and issue a standard form owner’s policy of title insurance insuring title to the Property in the amount of the Purchase Price. All title company closing fees shall be shared equally between the parties, any transfer taxes shall be paid by the Declarant, and any other customary closing charges shall be paid by the HRA or the Declarant as is customary in the local market. (d) The HRA may assign its interest in the Option to the East Edina Housing Foundation or any successor organization having a mission of promoting and/or supporting affordable housing in the City. 4. Remedies; Enforceability. In the event of a violation or attempted violation of any of the covenants, conditions or restrictions herein contained, the HRA may institute and prosecute any proceeding at law or in equity to abate, prevent or enjoin any such violation, or enforce specific performance by Declarant of the covenants, obligations, conditions and/or restrictions set forth herein, or to recover monetary damages caused by such violation or attempted violation. Declarant specifically acknowledges that the HRA cannot be adequately compensated by monetary damages in the event of any default hereunder. Unless terminated as provided herein, the provisions hereof are imposed upon and made applicable to the Property, and shall be enforceable against Declarant, each purchaser, grantee, owner or tenant of the Property and the respective heirs, legal representatives, successors and assigns of each. No delay in enforcing the provisions of said covenants, conditions and restrictions as to any breach or violation shall impair, damage or waive the right to enforce the same or to obtain relief against or recover for the continuation or repetition of such breach or violation or any similar breach or violation thereof at any later time or times. In addition to any remedy set forth herein for failure to comply with the restrictions set forth in this Declaration, the HRA may exercise any remedy available to it under the Loan Agreement. 5. Indemnification. Declarant hereby indemnifies, and agrees to defend and hold harmless, the HRA, the City, and their respective officers, officials, employees, and agents, from and against all liabilities, losses, damages, costs, expenses (including attorneys’ fees and expenses), causes of action, suits, allegations, claims, demands, and judgments of any nature arising from the consequences of a legal or administrative proceeding or action brought against them, or any of them, on account of any failure by 3 4818-5078-4231\2 Declarant to comply with the terms of this Declaration, or on account of any representation or warranty of Declarant contained herein being untrue. 6. Covenants Running With the Land. Declarant intends, declares and covenants, on behalf of itself and all future owners and operators of the Property that this Declaration and the covenants and restrictions set forth in this Declaration regulating and restricting the use, occupancy and transfer of the Property (a) shall be and are covenants running with the Property, encumbering the Property, binding upon Declarant’s successors in title and all subsequent owners and operators of the Property; (b) are not merely personal covenants of Declarant; and (c) shall bind Declarant (and the benefits shall inure to the HRA) and its respective successors and assigns. Declarant hereby agrees that any and all requirements of the laws of the State of Minnesota to be satisfied in order for the provisions of this Declaration to constitute deed restrictions and covenants running with the land shall be deemed to be satisfied in full and that any requirements of privileges of estate are intended to be satisfied, or in the alternate, that an equitable servitude has been created to insure that these restrictions run with the land. 7. Release. The HRA shall release this Declaration of record upon the request of Declarant after both of the following have occurred: (i) the End of the Loan Term and (ii) the HRA’s waiver or deemed waiver of the Option. 8. Notices. Any notice, approval, consent, payment, demand, communication, authorization, delegation, recommendation, agreement, offer, report, statement, certification or disclosure required or permitted to be given or made under this Declaration, whether or not expressly so stated, shall not be effective unless and until given or made in writing and shall be deemed to have been duly given or made as of the following date: (a) if delivered personally by courier or otherwise, then as of the date delivered or if delivery is refused, then as of the date presented; or (b) if sent or mailed by certified U.S. mail, return receipt requested, or by Federal Express, Express Mail or other mail or overnight courier service, then as of the date received. All such communications shall be addressed as follows (which address(es) for a party may be changed by that party from time to time by notice to the other parties). No such communications to a party shall be effective unless and until deemed received at all address(es) for such party: Declarant at: _________________________________ _________________________________ _________________________________ Attention: _________________________________ The HRA at: Housing and Redevelopment Authority of Edina, Minnesota 4801 West 50th Street Edina, MN 55424 Attention: Executive Director or at such other address with respect to any such party as that party may, from time to time, designate in writing and forward to the other, as provided in this Section. 9. Amendment. The provisions of this Declaration shall not be amended, terminated or deleted during the Term hereof, except by an instrument in writing duly executed by the HRA and Declarant, their respective successors and assigns. 4 4818-5078-4231\2 10. Attorneys’ Fees. In case any action at law or in equity, including an action for declaratory relief, is brought against Declarant to enforce the provisions of this Declaration, Declarant agrees to pay the reasonable attorneys’ fees and other reasonable expenses paid or incurred by the City and/or the HRA in connection with the action. 11. Governing Law. This Declaration is governed by the laws of the state of Minnesota and, where applicable, the laws of the United States of America. 12. Severability. If any provisions hereof shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions shall not in any way be affected or impaired. [Remainder of Page Intentionally Left Blank. Signature Pages Follows] [Signature Page to Declaration of Covenants and Restrictions with Right of First Option to Purchase] 4818-5078-4231\2 IN WITNESS WHEREOF, Declarant has caused this Declaration to be executed as of the date first written above METROPOLITAN COUNCIL By: ______________________________________ Name: ____________________________________ Its: ______________________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this ___ day of ________, 202__, by ___________________________________, the _________________ of Metropolitan Council, a public corporation and political subdivision of the State of Minnesota. Notary Public THIS DOCUMENT WAS DRAFTED BY: Dorsey & Whitney LLP 50 South Sixth Street, Suite 1500 Minneapolis, MN 55402-1498 [Exhibit A to Declaration of Covenants and Restrictions with Right of First Option to Purchase] 4818-5078-4231\2 Exhibit A Legal Description of the Property CHAPTER 8: HOUSING QUALITY STANDARDS AND RENT REASONABLENESS DETERMINATIONS [24 CFR 982 Subpart I 982.401 and 24 CFR 982.507] INTRODUCTION HUD requires that all units occupied by families receiving Housing Choice Voucher (HCV) assistance meet HUD's Housing Quality Standards (HQS) and permits the PHA to establish additional requirements. The use of the term "HQS" in this plan refers to the combination of both HUD and PHA-established requirements. All units must pass an HQS inspection prior to the approval of a lease and at least once every 24 months during the term of the term of the contract, and at other times as needed, to determine the unit meets HQS. HUD also requires PHAs to determine that rents for unites under the program are reasonable when compared to comparable unassisted units in the market area. This chapter explains HUD and PHA requirements related to housing quality and rent reasonableness as follows: Part I. Physical Standards. This part discusses the physical standards required of units occupied by HCV-assisted families and identifies decisions about the acceptability of the unit that may be made by the family based upon the family's preference. It also identifies life-threatening conditions that must be addressed on an expedited basis. Part II. The Inspection Process. This part describes the types of inspections the PHA will make and the steps that will be taken when units do not meet HQS. Part III. Rent Reasonableness Determinations. This part discusses the policies the PHA will use to make rent reasonableness determinations. Special HQS requirements for manufactured homes, and other special housing types are discussed in Chapter 15 to the extent that they apply in this jurisdiction. PART I: PHYSICAL STANDARDS 8-I.A. GENERAL HUD REQUIREMENTS HUD Performance and Acceptability Standards HUD's performance and acceptability standards for HCV-assisted housing are provided in 24 CFR 982.401. These standards cover the following areas: • Sanitary facilities • Food preparation and refuse disposal • Space and Security • Thermal Environment • Illumination and electricity • Structure and materials • Interior Air Quality • Water Supply • Lead-based paint • Access • Site and neighborhood • Sanitary condition • Smoke Detectors A summary of HUD performance criteria is provided in Exhibit 8-1. Additional guidance on these requirements is found in the following HUD resources: • Housing Choice Voucher Guidebook, Chapter 10. • HUD Housing Inspection Manual for Section 8 Housing • HUD Inspection Form, form HUD-52580 (3/01) and Inspection Checklist, form HUD-52580-A (9/00) • HUD Notice 2003-31, Accessibility Notice: Section 504 of the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Architectural Barriers Act of 1968 and the Fair Housing Act of 1988. Tenant Preference Items HUD requires the PHA to enforce minimum HQS but also recognizes that certain judgments about the acceptability of the unit are left to the family. For example, the PHA must ensure that the unit contains the required sanitary facilities, but the family decides whether the cosmetic appearance of the facilities is acceptable. Exhibit 8-2 summarizes those items that are considered tenant preferences. Modifications to Provide Accessibility Under the Fair Housing Act of 1988 an owner must not refuse the request of a family that contains a person with a disability to make necessary and reasonable modifications to the unit. Such modifications are at the family's expense. The owner may require restoration of the unit to its original condition if the modification would interfere with the owner or next occupant's full enjoyment of the premises. The owner may not increase a customarily required security deposit. However, the landlord may negotiate a restoration agreement that requires the family to restore the unit and, if necessary to ensure the likelihood of restoration, may require the tenant to pay a reasonable amount into an interest bearing escrow account over a reasonable period of time. The interest in any such account accrues to the benefit of the tenant. The owner may also require reasonable assurances that the quality of the work will be acceptable and that any required building permits will be obtained. [24 CFR 100.203; Notice 2003-31]. Modifications to units to provide access for a person with a disability must meet all applicable HQS requirements and conform to the design, construction, or alteration of facilities contained in the UFAS and the ADA Accessibility Guidelines (ADAAG) [28 CFR 35.151(c) and Notice 2003-31] See Chapter 2 of this plan for additional information on reasonable accommodations for persons with disabilities. 8-I.B. ADDITIONAL LOCAL REQUIREMENTS The PHA may impose variations to the HQS as long as the additional criteria are not likely to adversely affect the health or safety of participant families or severely restrict housing choices for families. HUD approval is required for variations to the HQS. HUD approval is not required if the variations are clarifications of HUD's acceptability criteria or performance standards [24 CFR 982.401(a)(4)]. Thermal Environment [HCV GB p.10-7] The PHA must define a “healthy living environment” for the local climate. This may be done by establishing a temperature that the heating system must be capable of maintaining, that is appropriate for the local climate. PHA Policy • The heating system must be capable of maintaining an interior temperature of 68 degrees Fahrenheit between October 1 and April 30. Clarifications of HUD Requirements PHA Policy As permitted by HUD, the PHA has adopted the following specific requirements that elaborate on HUD standards. Walls • In areas where plaster or drywall is sagging or, severely cracked, , it must be repaired or replaced. • All walls in a tub or shower area must be covered with ceramic tile or other material that is impervious to water to prevent water damage and eventual deterioration. Windows • Window sashes must be in good condition, solid and intact, and properly fitted to the window frame. Damaged or deteriorated sashes must be replaced. Windows should stay up on their own without the use of assistance, such as a stick or block. • Windows must be weather-stripped as needed to ensure a weather-tight seal. • Window screens must be present inf the window is openable between October 1 and May 1. In a room with more than one window, a minimum of one screen must be present and free of rips and tears. • Any room for sleeping must have a window or an openable door to the immediate exterior unless it meets the eligibility criteria for a HUD approved variance for windowless sleeping rooms. To be eligible for the variance the unit must: o Be newly constructed OR rehabilitated in a multifamily development. o Meet all state and local building fire codes. • Any window designed to be openable must be open to the exterior. Windows that are nailed shut are acceptable only if these windows are not needed for ventilation or as an alternate exit in case of fire. • Taping or caulking of window cracks is generally not acceptable. Doors • All exterior doors must be weather-tight to avoid any air or water infiltration, be lockable, have no holes, have all trim intact, and have a threshold. • All interior doors must have no holes that present a safety hazard to small children, have all installed trim intact enough to not present a safety hazard to small children, and be openable without the use of a key. Floors • All wood floors must be sanded to a smooth surface and sealed. Any loose or warped boards must be resecured and made level. If they cannot be leveled, they must be replaced. • All floors in living space must be in a finished state. Bathrooms • All unsanitary, worn or cracked toilet seats and tank lids must be replaced and toilet tank lid must fit properly. • Main bathroom must have a door,or be designed for privacy. Security • If window security bars or security screens are present on emergency exit windows, they must be equipped with a quick release system. The owner is responsible for ensuring that the family is instructed on the use of the quick release system. • Strike plate for security door shall be present and secured to the door jam. Bedrooms • Size—Each room should be no less than seventy (70) square feet, with a minimum width of seven (7) feet • Bedrooms must have four walls • A three-way switch must be installed for stairway lighting from the top of the stairs to the bedroom to permit a person to safely walk from the top of the stairs to the bedroom. Smoke Detectors The dwelling unit must have at least one battery-operated or hard- wired smoke detector, in proper operating condition, on each level of the dwelling unit, including basements but excluding crawl spaces and unfinished attics. • Smoke detectors must be installed in accordance with and meet the requirements of the National Fire Protection Association Standard (NFPA) 74 (or its successor standards). If the dwelling unit is occupied by any person with a hearing impairment, smoke detectors must have an appropriate alarm system as specified in NFPA 74 (or successor standards). • For units assisted prior to April 24, 1993, owners who installed battery- operated or hard-wired smoke detectors prior to April 24, 1993 in compliance with HUD's smoke detector requirements, including the regulations published on July 30, 1992, (57 FR 33846), will not be required subsequently to comply with any additional requirements mandated by NFPA 74 (i.e., the owner would not be required to install a smoke detector in a basement not used for living purposes, nor would the owner be required to change the location of the smoke detectors that have already been installed on the other floors of the unit). Carbon Monoxide (CO) Detectors • In accordance with Minnesota Statute 299F.50, every single family dwelling and multi-family dwelling, including duplexes through apartment complexes, must have a carbon monoxide detector installted within ten feet of any room lawfully used for sleeping purposes. "Installed" means that an approved carbon monoxide alarm is hard-wired into the electrical wiring, directly plugged into an electrical outlet without a switch, or, if the alarm is battery powered, attached to the wall of the dwellingThe alarms must be installed in accordance with the manufacturer’s installation instructions. Modifications • Modifications or adaptations to a unit due to a disability must meet all applicable HQS and building codes. • Extension for repair items not required by HQS will be granted for modifications/adaptations to the unit if agreed to by the tenant and landlord. PHA will allow execution of the HAP contract if unit meets all requirements and the modifications do not affect the livability of the unit. Electrical Specifications • Any surface mounted romex wiring should be run in such a manner to be protected from any damage and all surface wiring is be to securely attached to structural components. • Cord or pull chain fixtures shall be cloth (non-metallic) in moisture areas (e.g., kitchen bathroom and basement). • If exposed and accessible, all missing light bulbs should be installed in order to close an open electrical socket. • Dead outlets or switches should be made operable or device removed, wires properly capped and a blank cover installed on box. • Electrical service panel shall have no open knock-outs. Infestation • The owner is responsible for treating infestation, even if caused by the family’s living habits. 8-I.C. LIFE-THREATENING CONDITIONS [24 CFR 982.404(a); FR notice 1/18/17] HUD requires the PHA to define life-threatening conditions and to notify the owner or the family (whichever is responsible) of the corrections required. The responsible party must correct life-threatening conditions within 24 hours of PHA notification. The PHA may give a short extension (not more than forty-eight (48) additional hours) whenever the responsible party cannot be notified or it is impossible to correct the repair within the 24-hour period. In those cases where there is leaking gas or potential of fire or other threat to public safety, and the responsible party cannot be notified or it is impossible to make the repair, proper authorities will be notified by the PHA. PHA Policy The following are considered life-threatening conditions: • Any condition that jeopardizes the security of the unit • Major plumbing leaks or flooding, waterlogged ceiling or floor in imminent danger of falling • Natural or LP gas or fuel oil leaks o A fuel storage vessel, fluid line, valve, or connection that supplies fuel to a HVAC unit is leaking or a strong odor is detected with potential for explosion or fire or that results in a health risk if inhaled • Any electrical problem or condition that could result in shock or fire o A light fixture is readily accessible, is not securely mounted to the ceiling or wall, and electrical connections or wires are exposed o A light fixture is hanging by its wires o A light fixture has a missing or broken bulb, and the open socket is readily accessible to the tenant during the day-to-day use of the unit o A receptacle (outlet) or switch is missing or broken and electrical connections or wires are exposed o An open circuit breaker position is not appropriately blanked off in a panel board, main panel board, or other electrical box that contains circuit breakers or fuses o A cover is missing from any electrical device box, panel box, switch gear box, control panel, etc., and there are exposed electrical connections o Any nicks, abrasions, or fraying of the insulation that exposes conducting wire o Exposed bare wires or electrical connections o Any condition that results in openings in electrical panels or electrical control device enclosures o Water leaking or ponding near any electrical device o Any condition that poses a serious risk of electrocution or fire and poses an immediate life-threatening condition • Absence of a working heating system when outside temperature is below 60 degrees Farhenheit. • Utilities not in service, including no running hot water • Conditions that present the imminent possibility of injury • Obstacles that prevent safe entrance or exit from the unit o Any components that affect the function of the fire escape are missing or damaged o Stored items or other barriers restrict or prevent the use of the fire escape in the event of an emergency o The building’s emergency exit is blocked or impeded, thus limiting the ability of occupants to exit in a fire or other emergency • Absence of a functioning toilet in the unit • Inoperable or missing smoke detectors and/or carbon monoxide detector • Missing, damaged, discharged, overcharged, or expired fire extinguisher (where required) • Gas/oil-fired water heater or heating, ventilation, or cooling system with missing, damaged, improper, or misaligned chimney venting o The chimney or venting system on a fuel-fired water heater is misaligned, negatively pitched, or damaged, which may cause improper or dangerous venting or gases o A gas dryer vent is missing, damaged, or is visually determined to be inoperable, or the dryer exhaust is not vented to the outside o A fuel-fired space heater is not properly vented or lacks available combustion air o A non-vented space heater is present o Safety devices on a fuel-fired space heater are missing or damaged o The chimney or venting system on a fuel-fired heating, ventilation, or cooling system is misaligned, negatively pitched, or damaged, which may cause improper or dangerous venting of gas • Deteriorating paint as defined at 24 CFR 35.110 in a unit built before 1978 that is to be occupied by a family with a child under six years of age if it would prevent the family from moving into the unit If an owner fails to correct life-threatening conditions as required by the PHA, the PHA will enforce the HQS in accordance with HUD requirements. See 8-II-G. If a family fails to correct a family-caused life-threatening condition as required by the PHA, the PHA will enforce the family obligations. See 8-II.H. 8-I.D. OWNER AND FAMILY RESPONSIBILITIES [24 CFR 982.404] Family Responsibilities The family is responsible for correcting the following HQS deficiencies: • Tenant-paid utilities not in service • Failure to provide or maintain appliances owned by the family • Damage to the unit or premises caused by a household member or guest beyond normal wear and tear that results in a breach of the HQS. "Normal wear and tear" is defined as items which could not be charged against the tenant's security deposit under state law or court practice. Owner Responsibilities The owner is responsible for all HQS violations not listed as a family responsibility above, even if the violation is caused by the family's living habits (e.g., vermin infestation). However, if the family's actions constitute a serious or repeated lease violation the owner may take legal action to evict the family. 8-I.E. SPECIAL REQUIREMENTS FOR CHILDREN WITH ENVIRONMENTAL INTERVENTION BLOOD LEAD LEVEL [24 CFR 35.1225; FR Notice 1/13/17; Notice PIH 2017-13] If a PHA is notified by a public health department or other medical health care provider, or verifies information from a source other than a public health department or medical health care provider, that a child of less than 6 years of age, living in an HCV-assisted unit has been identified as having an environmental intervention blood lead level, the PHA must complete a risk assessment of the dwelling unit. The risk assessment must be completed in accordance with program requirements, and the result of the risk assessment must be immediately provided to the owner of the dwelling unitIn cases where the public health department has already completed an evaluation of the unit, this information must be provided to the owner. Within 30 days after receiving the risk assessment report from the PHA, or the evaluation from the public health department, the owner is required to complete the reduction of identified lead-based paint hazards in accordance with the lead-based paint regulations [24 CFR 35.1325 and 35.1330]. If the owner does not complete the “hazard reduction” as required, the dwelling unit is in violation of HQS and the PHA will take action in accordance with Section 8-II.G. PHA reporting requirements, and data collection and record keeping responsibilities related to children with an environmental intervention blood lead level are discussed in Chapter 16. 8-I.F. VIOLATION OF HQS SPACE STANDARDS [24 CFR 982.403] If the PHA determines that a unit does not meet the HQS space standards because of an increase in family size or a change in family composition, the PHA must issue the family a new voucher, and the family and PHA must try to find an acceptable unit as soon as possible. If an acceptable unit is available for rental by the family, the PHA must terminate the HAP contract in accordance with its terms. PART II: THE INSPECTION PROCESS 8-II.A. OVERVIEW [24 CFR 982.405] Types of Inspections The PHA conducts the following types of inspections as needed. Each type of inspection is discussed in the paragraphs that follow. Initial Inspections. The PHA conducts initial inspections in response to a request from the family to approve a unit for participation in the HCV program. Annual/Biennial Inspections. HUD requires the PHA to inspect each unit under lease at least annually or biennially to confirm that the unit still meets HQS. The inspection may be conducted in conjunction with the family's annual reexamination but also may be conducted separately. Special Inspections. A special inspection may be requested by the owner, the family, or a third party as a result of problems identified with a unit between annual inspections. Quality Control Inspections. HUD requires that a sample of units be inspected by a supervisor or other qualified individual to evaluate the work of the inspector(s) and to ensure that inspections are performed in compliance with the HQS. Inspection of PHA-Owned Units [24 CFR 982.352(b)] The PHA must obtain the services of an independent entity to perform all HQS inspections in cases where an HCV family is receiving assistance in a PHA-owned unit. A PHA-owned unit is defined as a unit that is owned by the PHA that administers the assistance under the consolidated ACC (including a unit owned by an entity substantially controlled by the PHA). The independent agency must communicate the results of each inspection to the family and the PHA. Inspection Costs The PHA may not charge the family or owner for unit inspections or reinspections [24 CFR 982.405(e)]. In the case of inspections of PHA-owned units, the PHA may compensate the independent agency from ongoing administrative fee for inspections performed. The PHA and the independent agency may not charge the family any fee or charge for the inspection [24 CFR.982.352(b)]. Notice and Scheduling The family must allow the PHA to inspect the unit at reasonable times with reasonable notice [24 CFR 982.551(d)]. PHA Policy • Both the family and the owner will be given reasonable notice of all inspections. Inspections may be scheduled between 7:00 a.m. and 7:00 p.m. Except in the case of a life-threatening emergency, reasonable notice is considered to be not less than 48 hours. The PHA will give as much notice as possible, given the nature of the emergency. Owner and Family Inspection Attendance HUD permits the PHA to set policy regarding family and owner presence at the time of inspection [HCV GB p. 10-27]. PHA Policy • When a family occupies the unit at the time of inspection an adult must be present for the inspection. The presence of the owner or the owner's representative is encouraged but is not required. • At initial inspection of a vacant unit, the PHA will inspect the unit in cooridination with the owner or owner’s representative. The presence of a family representative is permitted, but is not required. 8-II.B. INITIAL HQS INSPECTION [24 CFR 982.401(a)] Initial Inspections [FR Notice 1/18/17] The PHA may, but is not required to, approve assisted tenancy and start HAP if the unit fails HQS inspection, but only if the deficiencies identified are non-life-threatening. Further, the PHA may, but is not required to, authorize occupancy if a unit passed an alternative inspection in the last 24 months. PHA Policy • The unit must pass the HQS inspection on or before the effective date of the HAP contract. • The PHA will not rely on alternative inspections and will conduct an HQS inspection for each unit prior to executing a HAP contract with the owner. Timing of Initial Inspections HUD requires PHAs with fewer than 1,250 budgeted units to complete the initial inspection, determine whether the unit satisfies HQS, and notify the owner and the family of the determination within 15 days of submission of the Request for Tenancy Approval (RTA). For PHAs with 1,250 or more budgeted units, to the extent practicable such inspection and determination must be completed within 15 days. The 15-day period is suspended for any period during which the unit is not available for inspection [982.305(b)(2)]. PHA Policy • The PHA will complete the initial inspection, determine whether the unit satisfies HQS, and notify the owner and the family of the determination in a reasonable, timely and efficient manner indicative of good customer service. • Initial inspections will only be done on vacant units or units occupied by the tenant named on the inspection. Inspection Results and Reinspections PHA Policy • If any HQS violations are identified, the owner will be notified of the deficiencies and be given a time frame to correct them. • If the HAP Contract expires because more than 60 days has elapsed from the Contract date or repairs will not be completed, the PHA will notify the owner and the family that the unit has been denied and that the family will be issued a new voucher. • Following a determination of a denied unit, the family may submit a new Request for Tenancy Approval for a new unit or the same unit if the owner completes all repairs and the family continues to wish to live in the unit. Utilities Generally, at initial lease-up the owner is responsible for demonstrating that all utilities are in working order including those utilities that the family will be responsible for paying. PHA Policy Utility services must be in working order at the initial inspection. Appliances [Form HUD-52580] PHA Policy • If the family is responsible for supplying the stove and/or refrigerator, the PHA will allow the stove and refrigerator to be placed in the unit after the unit has met all other HQS requirements. The required appliances must be in place before the HAP contract is executed by the PHA. The PHA will execute the HAP contract based upon a certification from the family that the appliances have been installed and are working. 8-II.C. ANNUAL/BIENNIAL HQS INSPECTIONS [24 CFR 982.405(a) and 982.406; Notice PIH 2016-05] PHA Policy The PHA will conduct an inspection at least biennially and at other times as needed, to determine continuing compliance with HQS standards. Scheduling the Inspection PHA Policy • If an adult cannot be present on the scheduled date, the family should request that the PHA reschedule the inspection. The PHA will allow only one reschedule of the inspection. • If the family misses the first scheduled appointment without requesting a new inspection date, the PHA will automatically schedule a second inspection. If the family misses two scheduled inspections without PHA approval, the PHA will consider the family to have violated its obligation to make the unit available for inspection. This may result in termination of the family’s assistance in accordance with Chapter 12. 8-II.D. SPECIAL INSPECTIONS [HCV GB p. 10-30] The PHA will conduct a special inspection if the owner, family, or another source reports HQS violations in the unit. The individual who reports the deficiency must contact the responsible party (owner or tenant) and provide evidence they have made an adequate attempt to have the responsible party remedy the issue prior to the HRA agreeing to conduct a special inspection. PHA Policy • During a special inspection, the PHA generally will inspect only those deficiencies that were reported. However, the inspector will record HQS life- threatening deficiencies that are observed and will require the responsible party to make the necessary repairs. • If the annual inspection has been scheduled or is due within 90 days of the date the special inspection is scheduled the PHA may elect to conduct a full annual inspection. 8-II.E. QUALITY CONTROL INSPECTIONS [24 CFR 982.405(b), HCV GB p. 10-32] HUD requires a PHA supervisor or other qualified person to conduct quality control inspections of a sample of units to ensure that each inspector is conducting accurate and complete inspections and that there is consistency in the application of the HQS. The unit sample must include only units that have been inspected within the preceding 3 months. The selected sample will include (1) each type of inspection (initial, annual, and special), (2) inspections completed by each inspector, and (3) units from a cross-section of neighborhoods. 8-II.F. INSPECTION RESULTS AND REINSPECTIONS FOR UNITS UNDER HAP CONTRACT Notification of Corrective Actions The owner and the family will be notified in writing of the results of all inspections. When an inspection identifies HQS failures, the PHA will determine (1) whether or not the failure is a life-threatening condition and (2) whether the family or owner is responsible. PHA Policy • When life-threatening conditions are identified, the PHA will immediately notify both parties by telephone. The corrective actions must be taken within 24 hours of the PHA’s notice. • When failures that are not life-threatening are identified, the PHA will send the owner and the family a written notification of the inspection results. The written notice will specify the owner is responsible for correcting the violation, and the time frame within which the failure must be corrected. • The notice of inspection results will inform the owner that if life-threatening conditions are not corrected within 24 hours, and non-life threatening conditions are not corrected within the specified time frame (or any PHA-approved extension), the owner’s HAP will be abated in accordance with PHA policy (see 8-II.G Extensions For conditions that are life-threatening, the PHA cannot grant an extension to the 24 hour corrective action period. For conditions that are not life-threatening, the PHA may grant an exception to the required time frames for correcting the violation, if the PHA determines that an extension is appropriate [24 CFR 982.404]. PHA Policy • Extensions will be granted in cases where the PHA has determined that the owner has made a good faith effort to correct the deficiencies and is unable to for reasons beyond the owner’s control. Reasons may linclude, but are not limited to: A reasonable accommodation is needed because the family includes a person with disabilities. For repairs that may only be completed in warmer weather (May through October) in Minnesota (exterior concrete and paint, including window sills), a supervisor or the inspections coordinator may approve an extension beyond the contract/lease amendment effective date. Delays caused by a third-party (e.g. contractor, Home Owner Association approval, parts supplier) As determined necessary by the Inspection Supervisor or Inspection Coordinator. • The length of the extension will be determined on a case by case basis, but will not exceed 60 days, except in the case of delays caused by weather conditions. In the case of weather conditions, extensions may be continued until the weather has improved sufficiently to make repairs possible. The necessary repairs must be made within 30 calendar days, once the weather conditions have subsided. Reinspections PHA Policy • The PHA will conduct a reinspection or obtain a signed certification of repairs from the owner as quickly as possible following the owner notifying the PHA that repairs have been completed. 8-II.G. ENFORCING OWNER COMPLIANCE If the owner fails to maintain the dwelling unit in accordance with HQS, the PHA must take prompt and vigorous action to enforce the owner obligations. HAP Abatement If an owner fails to correct HQS deficiencies by the time specified by the PHA, HUD requires the PHA to abate housing assistance payments no later than the first of the month following the specified correction period (including any approved extension) [24 CFR 985.3(f)]. No retroactive payments will be made to the owner for the period of time the rent was abated. Owner rents are not abated as a result of HQS failures that are the family's responsibility. During any abatement period the family continues to be responsible for its share of the rent. The owner must not seek payment from the family for abated amounts and may not use the abatement as cause for eviction. HAP Contract Termination The PHA must decide how long any abatement period will continue before the HAP contract will be terminated. PHA Policy • The maximum length of time that HAP may be abated is 60 days. However, if the owner completes corrections and notifies the PHA before the termination date of the HAP contract, the PHA may rescind the termination notice if (1) the family still resides in the unit and wishes to remain in the unit and (2) the unit passes inspection. • If the owner fails to comply with HQS within 60 days or the family gives notice to move, the family will be issued a voucher to permit the family to move to another unit as described in Chapter 10. • The PHA will provide 30 days notice of any HAP contract termination. 8-II.H. ENFORCING FAMILY COMPLIANCE WITH HQS [24 CFR 982.404(b)] Families are responsible for correcting any HQS violations listed in paragraph 8.I.D. If the family fails to correct a violation within the period allowed by the PHA (and any extensions), the PHA will terminate the family’s assistance, according to the policies described in Chapter 12. If the owner carries out a repair for which the family is responsible under the lease, the owner may bill the family for the cost of the repair. PART III: RENT REASONABLENESS [24 CFR 982.507] 8-III.A. OVERVIEW No HAP contract can be approved until the PHA has determined that the rent for the unit is reasonable. The purpose of the rent reasonableness test is to ensure that a fair rent is paid for each unit rented under the HCV program. HUD regulations define a reasonable rent as one that does not exceed the rent charged for comparable, unassisted units in the same market area. HUD also requires that owners not charge more for assisted units than for comparable units on the premises. This part explains the method used to determine whether a unit’s rent is reasonable. 8-III.B. WHEN RENT REASONABLENESS DETERMINATIONS ARE REQUIRED Owner-Initiated Rent Determinations The PHA must make a rent reasonableness determination at initial occupancy and whenever the owner requests a rent adjustment. The owner and family first negotiate the rent for a unit. The PHA (or independent agency in the case of PHA-owned units) may assist the family with the negotiations upon request. At initial occupancy the PHA must determine whether the proposed rent is reasonable before a HAP Contract is signed. The owner must not change the rent during the initial lease term. Subsequent requests for rent adjustments must be consistent with the lease between the owner and the family. Rent increases will not be approved unless any failed items identified by the most recent HQS inspection have been corrected. PHA Policy • After the initial lease term, the owner may request a rent adjustment in accordance with the owner’s lease. For rent increase requests after initial lease- up, the PHA may request owners to provide information about the rents charged for other units on the premises, if the premises include more than 4 units. In evaluating the proposed rents in comparison to other units on the premises the PHA may consider unit size and length of tenancy in the other units. • The PHA will determine whether the requested increase is reasonable and the owner and family will be notified. • All rent adjustments will be effective the first of the month following a minimum of 30 days after the PHA’s receipt of the owner’s request or on the date specified by the owner, whichever is later. PHA- and HUD-Initiated Rent Reasonableness Determinations HUD requires the PHA to make a determination of rent reasonableness (even if the owner has not requested a change) if there is a 10 percent decrease in the Fair Market Rent that goes into effect at least 60 days before the contract anniversary date. HUD also may direct the PHA to make a determination at any other time. The PHA may decide that a new determination of rent reasonableness is needed at any time. PHA Policy • In addition to the instances described above, the PHA will make a determination of rent reasonableness at any time after the initial lease term period if: o the PHA determines that the initial rent reasonableness determination was in error or o the PHA determines that the information provided by the owner about the unit or other units on the same premises was incorrect. 8-III.C. HOW COMPARABILITY IS ESTABLISHED Factors to Consider HUD requires PHAs to take into consideration the factors listed below when determining rent comparability. The PHA may use these factors to make upward or downward adjustments to the rents of comparison units when the units are not identical to the HCV-assisted unit. • Location and age • Unit size including the number of rooms and square footage of rooms • The type of unit including construction type (e.g., single family, duplex, garden, low-rise, high-rise) • The quality of the units including the quality of the original construction, maintenance and improvements made. • Amenities, services, and utilities included in the rent Units that Must Not be Used as Comparables Comparable units must represent unrestricted market rents. Therefore, units that receive some form of federal, state, or local assistance that imposes rent restrictions cannot be considered comparable units. These include units assisted by HUD through any of the following programs: HCV project-based assistance, Section 236 and Section 221(d)(3) Below Market Interest Rate (BMIR) projects, HOME or Community Development Block Grant (CDBG) program-assisted units in which the rents are subsidized; units subsidized through federal, state, or local tax credits; units subsidized by the Department of Agriculture rural housing programs, and units that are rent- controlled by local ordinance. Note: Notice PIH 2011-46, issued August 17, 2011, provides further guidance on the issue of what constitutes an assisted unit. Rents Charged for Other Units on the Premises The Request for Tenancy Approval (HUD-52517) requires owners to provide information, on the form itself, about the rent charged for other unassisted comparable units on the premises if the premises include more than 4 units. By accepting the PHA payment each month the owner certifies that the rent is not more than the rent charged for comparable unassisted units on the premises. If asked to do so, the owner must give the PHA information regarding rents charged for other units on the premises. 8-III.D. PHA RENT REASONABLENESS METHODOLOGY How Market Data Is Collected PHA Policy • The PHA will collect and maintain data on market rents in the PHA's jurisdiction. Information sources may include newspapers, realtors, market surveys, inquiries of owners and other available sources. How Rents Are Determined PHA Policy • The rent for a unit proposed for HCV assistance will be compared to the rent charged for comparable units in the same market area. The PHA may develop a listing of average rents for comparable units by bedroom size within defined market areas. Because units may be similar, but not exactly like the unit proposed for HCV assistance, the PHA may make adjustments to approvable rent to account for these differences. • To determine a unit rent is reasonable, a minimum of three comparable units must be identified. On that rare occasion when three comparables cannot be identified justification must be documented. EXHIBIT 8-1: OVERVIEW OF HUD HOUSING QUALITY STANDARDS Note: This document provides an overview of HQS. For more detailed information see the following documents: • 24 CFR 982.401, Housing Quality Standards (HQS) • Housing Choice Voucher Guidebook, Chapter 10. • HUD Housing Inspection Manual for Section 8 Housing • HUD Inspection Form, form HUD-52580 (3/01) and Inspection Checklist, form HUD-52580-A (9/00) Sanitary Facilities The dwelling unit must include sanitary facilities within the unit. The sanitary facilities must be usable in privacy and must be in proper operating condition and adequate for personal cleanliness and disposal of human waste. Food Preparation and Refuse Disposal The dwelling unit must have space and equipment suitable for the family to store, prepare, and serve food in a sanitary manner. Space and Security The dwelling unit must provide adequate space and security for the family. This includes having at least one bedroom or living/sleeping room for each two persons. Thermal Environment The unit must have a safe system for heating the dwelling unit. Air conditioning is not required but if provided must be in proper operating condition. The dwelling unit must not contain unvented room heaters that burn gas, oil, or kerosene. Portable electric room heaters or kitchen stoves with built-in heating units are not acceptable as a primary source of heat for units located in climatic areas where permanent heat systems are required. Illumination and Electricity Each room must have adequate natural or artificial illumination to permit normal indoor activities and to support the health and safety of occupants. The dwelling unit must have sufficient electrical sources so occupants can use essential electrical appliances. Minimum standards are set for different types of rooms. Once the minimum standards are met, the number, type and location of electrical sources are a matter of tenant preference. Structure and Materials The dwelling unit must be structurally sound. Handrails are required when four or more steps (risers) are present, and protective railings are required when porches, balconies, and stoops are thirty inches or more off the ground. The elevator servicing the unit must be working [if there is one]. Manufactured homes must have proper tie-down devices capable of surviving wind loads common to the area. Interior Air Quality The dwelling unit must be free of air pollutant levels that threaten the occupants’ health. There must be adequate air circulation in the dwelling unit. Bathroom areas must have one openable window or other adequate ventilation. Any sleeping room must have at least one window. If a window was designed to be opened, it must be in proper working order. Water Supply The dwelling unit must be served by an approved public or private water supply that is sanitary and free from contamination. Plumbing fixtures and pipes must be free of leaks and threats to health and safety. Lead-Based Paint Lead-based paint requirements apply to dwelling units built prior to 1978 that are occupied or can be occupied by families with children under six years of age, excluding zero bedroom dwellings. Owners must: • Disclose known lead-based paint hazards to prospective tenants before the lease is signed, • provide all prospective families with "Protect Your Family from Lead in Your Home", • Stabilize deteriorated painted surfaces and conduct hazard reduction activities when identified by the PHA • Notify tenants each time such an activity is performed • Conduct all work in accordance with HUD safe practices • As part of ongoing maintenance ask each family to report deteriorated paint. For units occupied by environmental intervention blood lead level (lead poisoned) children under six years of age, a risk assessment must be conducted (paid for by the PHA). If lead hazards are identified during the risk assessment, the owner must complete hazard reduction activities. See HCV GB p. 10-15 for a detailed description of these requirements. For additional information on lead-based paint requirements see 24 CFR 35, Subparts A, B, M, and R. Access Use and maintenance of the unit must be possible without unauthorized use of other private properties. The building must provide an alternate means of exit in case of fire. Site and Neighborhood The site and neighborhood must be reasonably free from disturbing noises and reverberations, excessive trash or vermin, or other dangers to the health, safety, and general welfare of the occupants. Sanitary Condition The dwelling unit and its equipment must be in sanitary condition and free of vermin and rodent infestation. The unit must have adequate barriers to prevent infestation. Hazards and Heath/Safety The unit, interior and exterior common areas accessible to the family, the site, and the surrounding neighborhood must be free of hazards to the family's health and safety. EXHIBIT 8-2: SUMMARY OF TENANT PREFERENCE AREAS RELATED TO HOUSING QUALITY Note: This document provides an overview of unit and site characteristics and conditions for which the family determines acceptability. For more detailed information see the following documents: • Housing Choice Voucher Guidebook, Chapter 10. • HUD Housing Inspection Manual for Section 8 Housing • HUD Inspection Form, form HUD-52580 (3/01) and Inspection Checklist, form HUD-52580-A (9/00) • Provided the minimum housing quality standards have been met, HUD permits the family to determine whether the unit is acceptable with regard to the following characteristics. Sanitary Facilities. The family may determine the adequacy of the cosmetic condition and quality of the sanitary facilities, including the size of the lavatory, tub, or shower; the location of the sanitary facilities within the unit; and the adequacy of the water heater. Food Preparation and Refuse Disposal. The family selects size and type of equipment it finds acceptable. When the family is responsible for supplying cooking appliances, the family may choose to use a microwave oven in place of a conventional oven, stove, or range. When the owner is responsible for providing cooking appliances, the owner may offer a microwave oven in place of an oven, stove, or range only if other subsidized and unsubsidized units on the premises are furnished with microwave ovens only. The adequacy of the amount and type of storage space, the cosmetic conditions of all equipment, and the size and location of the kitchen are all determined by the family. Space and Security. The family may determine the adequacy of room sizes and room locations. The family is also responsible for deciding the acceptability of the type of door and window locks. Energy conservation items. The family may determine whether the amount of insulation, presence of absence of storm doors and windows and other energy conservation items are acceptable. Illumination and Electricity. The family may determine whether the location and the number of outlets and fixtures (over and above those required to meet HQS standards) are acceptable or if the amount of electrical service is adequate for the use of appliances, computers, or stereo equipment. Structure and Materials. Families may determine whether minor defects, such as lack of paint, or worn flooring or carpeting will affect the livability of the unit Indoor Air. Families may determine whether window and door screens, filters, fans, or other devices for proper ventilation are adequate to meet the family’s needs. However, if screens are present they must be in good condition Sanitary Conditions. The family determines whether the sanitary conditions in the unit, including minor infestations, are acceptable. Neighborhood conditions. Families may determine whether neighborhood conditions such as the presence of drug activity, commercial enterprises, and convenience to shopping will affect the livability of the unit. Families have no discretion with respect to lead-based paint standards, smoke detectors, and carbon monoxide detectors. Page 1 FAMILY AFFORDABLE HOUSING PROGRAM RESIDENT SELECTION CRITERIA July2016 Page 2 RESIDENT SELECTION CRITERIA FAMILY AFFORDABLE HOUSING PROGRAM DESCRIPTION The Metropolitan Council established the Family Affordable Housing Program (FAHP) to provide affordable rental housing for low and extremely low income families. Families pay 30% of their adjusted monthly income towards rent and utilities. HOUSING UNITS The Council owns 150 single-family homes and townhomes. The units are located in the cities of Blaine, Coon Rapids, Eden Prairie, Edina, Golden Valley, Maple Grove, Minnetonka, Plymouth , Richfield, Roseville and Shoreview. The FAHP units are administered by the Council’s Housing and Redevelopment Authority (Metro HRA) division and professionally managed by Kingwood Management. INCOME LIMITS Families must have incomes at or below 50% of the area median income. Income limits are updated by HUD on an annual basis. SUBSIDY STANDARDS The Metro HRA will assign the first bedroom to the head of household, their spouse, significant other or other adult household member of the same sex and generation. Thereafter, the Metro HRA will assign one additional bedroom for each two (2) persons regardless of sex, age or relationship. The following circumstances are exceptions: - An adult and minor child will not be required to share the first bedroom. - Live-in aides will be provided their own bedroom. No additional bedroom is provided for the live-in aide’s family members. PROJECT BASED VOUCHER PROGRAM The FAHP units are assisted under the federal Project Based Voucher program and are subject to Metro HRA’s eligibility criteria and program rules. ADDITIONAL REQUIREMENTS Applicants must demonstrate the ability and willingness to comply with Family Affordable Housing Program (FAHP) requirements and federal Housing Choice Voucher program regulations. Page 3 APPLICATION FOR HOUSING FAIR HOUSING The Metro HRA will not discriminate against any person or persons on any basis prohibited by law. APPLICATION DENIAL Applicants may be denied admission to a FAHP unit for one or more of the following: 1. Unfavorable rental history, including but not limited to non-payment of rent and utilities, damage to unit or lease violations.  12 consecutive months or positive rental history in last 24 months  Landlord history is not required for verified first time renters  An applicant will be asked to explain gaps in rental history  Delinquent payment of rent or eviction for non-payment of rent in a market rate vs. subsidized unit will be taken into consideration 2. Failure to comply with lease terms 3. A record of poor housekeeping or damage to property 4. Conviction for violent or drug-related criminal activity within three years from the end of sentence or conduct which would adversely affect the health, safety or welfare of other tenants, neighbors, Metro HRA, or property management employees. 5. A household member’s current use or pattern of use of illegal drugs, or current abuse of alcohol, that may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents. 6. Misrepresentation or omission of any information related to eligibility 10. Persons evicted or terminated from any federal rent assistance program because of  Drug-related criminal activity during the three-year period beginning on the date of such eviction or termination.  Eviction or termination from any federal housing program within five years of the date of the eviction or termination involving the illegal manufacture, sale, distribution or possession with intent to manufacture, sell, distribute a controlled substance as defined in Section 102 of the Controlled Substances Act, 21 U.S.C. § 802. 11. Lifetime Denials for the following:  Lifetime registration under a state sex offender registration program  Any conviction for manufacturing or producing methamphetamine 12. Any member who currently owes rent or other amounts to any Housing Authority in connection with the Housing Choice Voucher Program or Public Housing Program. APPEAL PROCEDURES If an applicant fails to meet the eligibility requirements of the Resident Selection Criteria, a letter of denial will be mailed to the applicant along with a Denial Appeal Form. Applicants have the right to contest the denial and request an informal review of the denial decision. Scattered Site Dwelling Lease Page 1 of 12 FAHP Form #L-01 (revised 06/13/11) NOTICE: This is an important legal document. If you do not understand it have someone translate it for you now. NOTA: Esto es un documento legal importante. Si usted no lo comprende pida que alguien se lo traduzca ahora. CEEB TOOM: Qhov no yog ib daim ntawv tseem ceeb heev. Yog tias koj tsis tau taub thov hais rau lwm tus pab txhais rau koj. ПРИМЕЧАНИЕ: Это важный юридический документ. Если вы его не понимаете, попросите кого -нибудь сейчас его вам перевести. OGEYSIIS: Kani waxa weye warqad sharci oo muhiim ah. Haddii aadan fahamsaneyn waa in aad heshaa hadeertaan qof kuu tarjumaa. SCATTERED SITE DWELLING UNIT LEASE METROPOLITAN COUNCIL FAMILY AFFORDABLE HOUSING PROGRAM Check appropriate type: Single Family Home □ Town Home Unit □ Tenant(s) Name (Head(s) of Household): ______________________________________________________________________ Dwelling Unit Address: Street __________________________________________ City ___________________________ State ________________________ Zip Code ______________ Dwelling Unit Number __________ Number of Bedrooms: □ 2-Bedroom Unit □ 3-Bedroom Unit □ 4-Bedroom Unit □ 5-Bedroom Unit 1. DWELLING UNIT LEASE. The Metropolitan Council (also known as Metro HRA), in this Lease called “Owner,” leases to the Tenant Family, in this Lease called “Tenant,” the dwelling unit described above according to the terms and conditions stated in this Lease. The term “Dwelling Unit” (also referred to as “Premises”) means the living unit, and areas adjacent to the living unit described in Section 9 of this Lease, that are assigned for the Tenant’s exclusive use. A property management company, in this Lease called “Property Manager,” has been hired by the Owner to manage this Dwelling Unit on behalf of the Owner. The Property Manager is identified in Section 20 of this Lease. The Dwelling Unit is owned by the Owner and is assisted under the United States Housing Act of 1937, as amended. The operation and occupancy of the Dwelling Unit are subject to Section 8 Project-based Voucher program policies and regulations of the U.S. Department of Housing and Urban Development, in this Lease called “HUD,” and the Owner’s Administrative Plan, as amended from time to time. 2. TERM OF LEASE AND RENEWALS. This Lease begins on __________________, 201_ at noon and shall have a term of one (1) year. Unless renewed or terminated as stated in this Lease, this Lease ends on __________________, 201_ at noon. In accordance with HUD regulation this Lease will automatically renew annually for an additional one-year term, unless the Lease is ended by either the Owner or the Tenant as stated in this Lease or as otherwise provided by law. 3. MEMBERS OF HOUSEHOLD. Only the following persons may reside in the Dwelling Unit with the named Tenant(s): Name Relationship to Tenant Gender Date of Birth Subject to the terms and conditions of this Lease, the Tenant’s household has the right to the exclusive use and occupancy of the Dwelling Unit. This right includes having guests stay in the Dwelling Unit up to thirty (30) days in any one year period. A guest means a person temporarily staying in the Dwelling Unit with the consent of the Tenant or other member of the household who has the authority to so consent on behalf of the Tenant. This limitation does not apply to live - in aides and foster children who may reside in the Dwelling Unit with the consent of the Owner. The Tenant must promptly MINNESOTA GOVERNMENT DATA PRACTICES ACT NOTICE Information about the Tenant and information about members of the Tenant’s household contained in this Lease document are private benefit data on individuals under section 13.462 of the Minnesota Government Data Practices Act. Scattered Site Dwelling Lease Page 2 of 12 FAHP Form #L-01 (revised 06/13/11) inform the Owner of the birth, adoption or court-awarded custody of a child within thirty (30) days and must obtain Property Manager approval prior to adding any other person as an occupant of the Dwelling Unit. The Tenant will not allow any person who is not a member of the Tenant’s household to use the Dwelling Unit address as that person’s address for receiving mail or for other purposes. 4. TENANT RENT AND OTHER PAYMENTS DUE UNDER THE LEASE. 4.1 Rental Payments. The Tenant agrees to make the following rental payments: (a) Monthly Tenant Rent Amount. The monthly rent of $ ________, in this Lease called “Tenant Rent,” is due on or before the first day of each month beginning ____________________, 201_ and must be paid to the Property Manager. This monthly Tenant Rent may change for reasons stated in Section 6 of this Lease and in accordance with HUD requirements. If Tenant Rent is not paid on time and the Tenant Ren t has not been received by the Property Manager on or before the 5th day of the month in which the Tenant Rent is due, a late fee of 8% of tenant rent will be charged with a maximum of $25.00. A $25.00 fee also will be charged for checks returned for insufficient funds or account closed. The initial rental payment may be less than the monthly Tenant Rent amount stated above if the Tenant moves into the Dwelling Unit on some day other than the first day of the month. (b) Tenant Rent Amounts Due When Dwelling Unit Is Vacated. If the Tenant wants to end this Lease, the Tenant is responsible for Tenant Rent until the end of the sixty-day (60) notice period, unless the Dwelling Unit is readied and the Dwelling Unit is re-rented to a new tenant before the end of the notice period. If the Tenant moves from the Dwelling Unit without giving written notice or without giving proper notice, the Tenant is responsible for Tenant Rent for the month in which the Property Manager receives information that the Dwelling Unit is vacant and for the following month, unless the Dwelling Unit is re-rented to a new tenant before the end of that time period. 4.2 Security Deposit. The Tenant will pay $ ________ as a security deposit for the Dwelling Unit which will be collected by the Property Manager and held in accordance with state law and HUD regulations. The Tenant may not withhold payment of all or any portion of the Tenant Rent for the last period of this Lease on the grounds that the security deposit should serve as payment of the Tenant Rent. 4.3 Charges and Fees. Reasonable charges for, but not limited to, maintenance and repair (for reasons other than normal wear and tear), late Tenant Rent payment fees, fees for returned checks, excess consumption of Owner -supplied utilities, and legally allowable court costs if the judgment is awarded to the owner are due and collectible two (2) weeks after the Property Manager gives written notice to the Tenant of the charges. 4.4 No Cash Payments. The Property Manager cannot accept cash payments from the Tenant. The Tenant therefore will pay Tenant Rent payments, security deposits and other charges or fees due under this Lease by personal check, cashiers check or money order. 5. UTILITIES AND APPLIANCES. 5.1 Owner-Provided Utilities and Appliances. The Owner will provide running water, garbage collection and sewer services and will furnish a range (stove) and a refrigerator. The cost of these Owner-provided utilities and appliances is included in the Tenant Rent and will be provided to the Tenant without additional cost to the Tenant, except that the Tenant is responsible for the cost of excess consumption of Owner -supplied utilities. Monthly or other periodic billings for water, sewer and refuse removal services that exceed utility allowanc es identified in the Owner’s Administrative Plan by fifteen percent (15%) or more will be considered excess consumption. If the Dwelling Unit is equipped with a working dishwasher, clothes washer or clothes dryer when the Tenant initially occupies the Dwe lling Unit, the Tenant may use the Owner-supplied appliances. However, the Owner is not responsible for the repair, maintenance or replacement of any Owner-supplied dishwasher, clothes washer or clothes dryer. 5.2 Tenant-Provided Utilities and Appliances. The Tenant is responsible for the cost of gas, electricity, and heat for the Dwelling Unit, including the cost of operating any Owner-supplied appliances. If the Tenant transfers from or otherwise vacates the Dwelling Unit, the Tenant is responsible for paying utilities for the Dwelling Unit until the Tenant vacates the Dwelling Unit, turns in the Dwelling Unit keys, or the end of the sixty-day notice period required to vacate the Dwelling Unit, whichever occurs later. The Tenant Rent may be adjusted periodically by the applicable utility allowance (if any). The Owner is not responsible for repairing, maintaining or replacing any appliances other than the refrigerator and range (stove). 6. REEXAMINATION OF RENT; ELIGIBLITY FOR CONTINUED OCCUPANCY; DWELLING UNIT SIZE. 6.1 Reexamination of Tenant Rent. At least once each year, and at other times as described below, the Owner will determine whether the Tenant Rent should be changed, verify household size and/or composition, and determine whether the Tenant is eligible for continued occupancy. As requested by the Owner at the time of the reexamination, the Tenant must provide accurate current information about: Scattered Site Dwelling Lease Page 3 of 12 FAHP Form #L-01 (revised 06/13/11) (a) Family Composition. The number of people in the Tenant’s household, their ages, gender and any other information required by the Owner, including noncitizen immigration status of household members. (b) Household Income. The source and amount of income received by everyone in the Tenant’s household. (c) Deductions. Any allowable deductions. The reexamination for continued occupancy will include a review of the Tenant’s rent paying history, Dwelling Unit inspection results and all other lease and Section 8 Program compliance behavior. 6.2 Interim Reexamination. All changes in the Tenant’s income or household composition must be reported in writing to the Owner within thirty (30) calendar days after the household income or composition changes. The Owner will determine whether an interim reexamination is necessary The monthly Tenant Rent, or the Tenant Rent amount as adjusted under this Section, will remain in effect for the period between regular rent reexamination, unless during such period: (a) Household Changes. There is an addition or loss of any adult member to the Tenant’s household or the addition of any minor not born into the household during the tenancy. (b) Household Income Increases. There is an increase in monthly gross household income when: (1) An additional adult with income is added to the household, or (2) A household member who previously reported zero income now reports an increased income, or (3) A household member’s Earned Income Disregard changes after 12 and 24 cumulative months of increased earnings, or (4) A household member misrepresented or under-reported income or misrepresented or over-reported expenses at annual reexamination to avoid a rent increase. (c) Household Income Decreases. There is a reported decrease in income or an increase in allowances or deductions that would result in a rent decrease. Increases in Tenant Rent will be effective the first day of the second month following the month in which the change actually occurred. Decreases in Tenant Rent will be effective the first day of the first month following the month in which the change was reported by the Tenant. The Property Manager will mail or deliver a notice of rent adjustment to the Tenant in accordance with Section 14 of this Lease. Failure by a Tenant to report any increases in household income will result in any rent increase being effective retroactive to the time the increase would have been made had the Tenant reported the household income increase in a timely manner, and may be considered a serious and material violation of this Lease and may be grounds for terminating this Lease. Failure of a Tenant to report increases in household income during a scheduled rent and income review or as specified under this Paragraph 6.2, or failure to appear for a scheduled rent and income review will be considered a serious and material violation of this Lease and may be gro unds for terminating this Lease. 6.3 Change of Dwelling Unit Size. The Owner will give notice to the Tenant that the Tenant will be required to move to another dwelling unit, if available, that is decent, safe and sanitary and is of an appropriate size under the following circumstances: (a) Inappropriate Dwelling Unit Size. The Dwelling Unit is larger or smaller than the Owner’s occupancy policies allow for the Tenant’s household size and composition; or (b) Inappropriate Dwelling Unit Type. The Dwelling Unit is otherwise inappropriate for the Tenant’s household size or composition including, but not limited to, when a dwelling unit that has accessibility features is occupied by a household that does not need accessibility features; or (c) Repair Work or Other Circumstances. The Dwelling Unit requires substantial repair or is scheduled for modernization, or is not in decent, safe and sanitary condition, and repair or modernization reasonably requires the Tenant to vacate the Dwelling Unit so repairs or modernization can be undertaken. The Tenant will be given at least a thirty (30) day notice to transfer to another dwelling unit. The Tenant’s failure to move as required by this Section of the Lease may be grounds for termination of this Lease. The Tenant may ask for an explanation stating the specific grounds for the Owner’s determination. If the Tenant does not agree with the determination, the Tenant has the right to request a hearing under the Owner’s Grievance Procedures. Scattered Site Dwelling Lease Page 4 of 12 FAHP Form #L-01 (revised 06/13/11) 7. OWNER’S OBLIGATIONS. The Property Manager and/or the Owner will: 7.1 Repair and Maintenance. Repair and maintain the Dwelling Unit in decent, safe and sanitary condition, and repair and maintain Owner-supplied equipment and appliances except as described under Paragraphs 5.1 and 5.2. 7.2 Code Compliance. Comply with requirements of applicable state and local building codes, housing codes, Housing Quality Standards [HQS] and other HUD regulations materially affecting health and safety. 7.3 Owner-Supplied Utilities and Services. Maintain in good and safe working order and condition electrical, plumbing, sanitary, heating, ventilating and other facilities and appliances, supplied or required to be supplied by the Owner. 7.4 Trash and Garbage. Provide and maintain curbside trash or garbage containers for trash or garbage collection services. 7.5 Water and Heat. Supply running water and Dwelling Unit heating equipment, all in compliance with applicable state law, local ordinances, HQS and other HUD regulations. The Tenant is responsible for paying the utility costs of heating water and operating the Dwelling Unit furnace. 7.6 Alternative Accommodations. Offer the Tenant a replacement dwelling unit or standard alternative accommodations, if available, if the condition of the Tenant’s present Dwelling Unit is hazardous to the life, health or safety of the occupants and the condition cannot be corrected within a reasonable time. Tenant Rent will be abated in proportion to the seriousness of the damage and loss in value as a dwelling unit if repairs are not m ade within a reasonable time or alternative accommodations are not provided in accordance with this Paragraph, except that no abatement of Tenant Rent will occur if the Tenant rejects the alternative accommodations or if the damage was caused by the Tenant , members of the Tenant’s household, guests or persons under the control of the Tenant. 7.7 Notices. Give the Tenant reasonable notice of any certifications, releases, information or documentation that must be given to the Property Manager or the Owner, including the date by which any such item must be given. The Owner will notify the Tenant of the specific grounds for any proposed adverse action by the Property Manager or the Owner. Adverse actions include, but are not limited to, a proposed lease termination, transfer of the Tenant to another dwelling unit, or imposition of charges for maintenance and repair or for excess consumption of utilities. 8. OBLIGATIONS OF THE TENANT, HOUSEHOLD MEMBERS AND TENANT GUESTS. The Tenant agrees to the following Tenant obligations and is responsible for causing members of the Tenant’s household, guests and persons under the Tenant’s control to comply with the following Lease obligations. 8.1 Tenant Rent Payments. The Tenant will pay the Tenant Rent by the first of each month. 8.2 Use of Dwelling Unit for Tenant’s Residence. The Tenant will use the Dwelling Unit only as a private place to live for the Tenant and the members of the Tenant’s household listed in Section 3 of this Lease, and will not use the Dwelling Unit or permit its use for any other purpose, including any illegal purpose. This Paragraph does not exclude reasonable accommodation of the Tenant’s guests, or incidental profit-making activities as permitted under this Lease. 8.3 Incidental Profit-Making Activities. The Tenant will obtain the Owner’s consent before the Tenant or any member of the Tenant’s household engages in any legal profit-making or business activities in the Dwelling Unit. The Property Manager or the Owner will decide whether such activities are incidental to the primary use of the Dwelling Unit as a residence by the Tenant and members of the Tenant’s household. If the Owner gives its prior consent and the Tenant or a member of the Tenant’s household engages in any legal profit-making or business activities in the Dwelling Unit, the Tenant and the members of the Tenant’s household will comply with all applicable state laws and local ordinances and codes regulating profit-making or business activities on or in residential properties. The Owner may require the Tenant to provide proof of insurance for profit-making or business activities in the Dwelling Unit. 8.4 Dwelling Unit and Property Conditions. The Tenant will keep the Dwelling Unit and areas adjacent to the Dwelling Unit assigned for the Tenant’s exclusive use in a clean and safe condition and will comply with all obligations imposed on the Tenant by applicable provisions of building and housing codes materially affecting health and safety. The Tenant will refrain from, and will cause household members, guests and persons under the Tenant’s control to refrain from: destroying, defacing, damaging or removing any part of the Dwelling Unit; or creating, by act or omission, or permitting to exist any condition in the Dwelling Unit or areas adjacent to the Dwelling Unit which results in a risk to the personal health or safety of any person or damage to property. The Tenant will not disconnect any smoke alarm in the Dwelling Unit and will not disconnect any carbon monoxide detector if the Dwelling Unit is equipped with a carbon monoxide detector. Tenant disconnection of any smoke alarm or carbon monoxide detector is a health and safety violation. The Tenant will immediately notify the Property Owner when any smoke alarm is not operable and when any carbon monoxide detector is not operable. The Tenant will take reasonable precautions to prevent fires and will not store flammable or explosive substances in or near the Dwelling Unit. The Tenant will promptly notify the Property Manager if the Tenant receives notice that the Dwelling Unit itself, or the areas adjacent to the Dwelling Unit, or their condition violates any federal, state or local health, safety, building or housing code and will immediately notify the Property Scattered Site Dwelling Lease Page 5 of 12 FAHP Form #L-01 (revised 06/13/11) Manager if the Dwelling Unit is damaged to the extent that conditions are created which are hazardous to life, health or safety of the Dwelling Unit occupants. 8.5 Damage Repair Charges. The Tenant will pay reasonable charges for the repair of damages beyond normal wear and tear to the Dwelling Unit or grounds caused by the Tenant, members of the Tenant’s household, guests or persons under the Tenant’s control. Acceptance of Tenant payments for the repair of damages beyond normal wear and tear does not constitute a waiver of the Owner’s right to terminate this Lease for such damages. 8.6 Mold and Mildew Prevention and Precautions It is the responsibility of every resident to maintain the units so as to provide appropriate climate control and cleanliness standards, so as to retard and prevent mold and mildew from accumulating in the unit. Undesireable mold, mildew and fungi growth is associated with excess water accumulation, dampness, humidity and impediment to air flow. The Tenant shall clean and dust the unit on a regular basis and remove visible m oisture accumulation on windows, walls, and other surfaces as soon as reasonably possible. Tenant agrees not to block any of the heating, ventilation or air conditioning ducts in the unit. Window coverings shall permit ample airflow between glass and air. Tenant agrees to immediately report to the Property Manager any evidence of water leak or excessive moisture in the unit, including the basement; any evidence of mold or mildew-like growth that cannot be removed by applying a common household cleanser and wiping the area; any failure of the heating, ventilation or air conditioning systems in the unit; and any inoperable doors, windows or fans. The Tenant shall be responsible for any damage to the unit, Tenant’s property, as well as any injury to household member or guest resulting from a failure to comply with this section. 8.7 Repairs, Alterations, Redecorating and Installations. Except for Tenant Dwelling Unit maintenance items listed in Section 9, the Tenant will immediately report to the Property Manager any need for repair to the interior or exterior of the Dwelling Unit and areas adjacent to the Dwelling Unit used by the Tenant in connection with the Tenant’s occupancy of the Dwelling Unit. The Tenant will not make any repairs or alterations, paint, wallpaper or install any permanently affixed carpet or any equipment including, but not limited to, door locks, without the prior written approval of the Property Manager. The Tenant will not put any holes in the walls and will not place nails, tacks, scr ews, brackets or fastener on any part of the Dwelling Unit, other than a reasonable number of picture hangers, or make any structural changes in the Dwelling Unit or other structures on the Dwelling Unit property without the prior written approval of the Property Manager. The Tenant will not install or have installed any satellite dishes, antennas or other reception devices, including cables, without the prior written consent of the Property Manager. Installations, if permitted, must comply with all applicable state laws and local codes and ordinances. The Tenant will not install or use clothes washers, clothes dryers, freezers, dishwashers, heaters, air conditioners or other major appliances or equipment that are not provided by the Owner, without prior written approval of the Property Manager. The Tenant will not keep or permit waterbeds or other water-filled furniture in the Dwelling Unit without prior written approval of the Property Manager. Any installations, uses or other actions permitted under this Paragraph with prior written approval of the Property Manager must be made consistent with any reasonable terms or conditions established by the Property Manager. 8.8 Garbage and Waste Disposal. The Tenant will keep all garbage, rubbish and other waste in appropriate disposal containers and will properly dispose of all garbage, rubbish and other waste from the Dwelling Unit itself and the areas adjacent to the Dwelling Unit in a sanitary and safe manner consistent with applicable state laws and local ordina nces and codes. 8.9 Dwelling Unit Equipment, Appliances and Utilities. The Tenant will use only in a reasonable manner all Owner - supplied appliances and all electrical, plumbing, sanitary, heating, ventilating, air conditioning and other facilities and equipment in the Dwelling Unit and any common facilities or common areas (if any). The Tenant will not waste any utilities provided by the Owner. 8.10 Vehicles. The Tenant will park vehicles only in designated or permitted parking areas and in a manner that will not obstruct traffic, and will not permit any vehicle to remain in the Dwelling Unit driveway or other designated parking area when the vehicle no longer is in operating condition or is not properly licensed and registered. The Tenant will not drive or park on the lawn or sidewalks. The Tenant and members of the Tenant’s household will comply with all local ordinances and codes regulating on-street parking and all local ordinances and codes regulating the storage and parking of vehicles on or near residential properties. The Property Manager may, at the Tenant’s expense, tow any vehicle that is inoperable or not properly licensed or registered. 8.11 Prohibited Criminal, Drug-Related, Alcohol Abuse and Other Activity. The Tenant assures that: (a) the Tenant and no member of the Tenant’s household or any guest engages in any criminal activity that threatens the health, safety or right to peaceful enjoyment of the Premises by other residents or other persons residing in the immediate vicinity of the Premises, or engages in any drug-related criminal activity or drug-related illegal activity on or off the Premises; and (b) no person under the Tenant’s control engages in any criminal activity that threatens the health, safety or right to peaceful enjoyment of the Premises by other residents or other persons residing in the immediate vicinity of the Premises, or engages in any drug-related criminal activity or drug-related illegal activity on or near the Premises. The Tenant also is Scattered Site Dwelling Lease Page 6 of 12 FAHP Form #L-01 (revised 06/13/11) obligated to assure that the Tenant and no member of the Tenant’s household or any guest or person under the Tenant’s control engages in an abuse or pattern of abuse of alcohol that affects the health, safety or right to peaceful enjoyment of the Premises by other residents or other persons residing in the immediate vicinity of the Premises. Any criminal, drug- related or other activity in violation of the preceding sentence is cause for termination of the tenancy and eviction from the Dwelling Unit. The Owner may terminate the tenancy for conduct that violates this Paragraph regardless of whether the person who engaged in the activity has been arrested or convicted for such activity. . 8.12 Fraud. The Tenant and members of the Tenant’s household will not commit any fraud or misrepresentation in connection with the federal public housing program or any other federal housing assistance program, including the receipt of assistance for occupancy of another dwelling unit assisted under any federal housing assistance program during the term of this Lease. 8.13 Prohibited Assignments, Subleases, Boarders and Lodgers. The Tenant will not assign or transfer this Lease. The Tenant will not sublease the Dwelling Unit or use the Dwelling Unit to provide housing for boarders, lodgers or any other persons not listed in Section 3 of this Lease. 8.14 Homeowner Association Rules and Regulations. If the Dwelling Unit is located within a town home development or other development, the Tenant will strictly comply with the homeowner association bylaws and administrative rules a nd regulations, as they may be amended from time to time, and with the covenants, conditions and restrictions set forth in the declaration or in the Owner’s deed to the Dwelling Unit. Unless otherwise provided by law or HUD regulations, if there is a discrepancy or conflict between the provisions of this Lease and the homeowner association bylaws, rules and regulations, the most restrictive shall apply. A copy of the applicable homeowner association declaration, bylaws, rules and regulations will be provided to the Tenant and are made a part of this Lease by reference. The Tenant shall be liable to the Owner for any damage claims or assessments made against the Owner for damages to common areas or facilities caused by the Tenant, members of the Tenant’s household, guests and persons under the Tenant’s control. 8.15 Pets and Other Animals. The Tenant will not have any dogs, cats, fowl, snakes or other animals in the Dwelling Unit or areas adjacent to the Dwelling Unit, except fish in an approved aquarium and small caged birds kept as pets in accordance with Section 10 of this Lease, or service animals. The Tenant and members of the Tenant’s household will comply with all applicable federal and state laws and all county and local codes and ordinances governing t he care and keeping of animals or regulating pets and animals on or in residential properties. 8.16 Reasonable Access to Dwelling Unit. Subject to the notice requirements, the Tenant will permit the Property Manager, the Owner, and repair or maintenance personnel reasonable access to the Dwelling Unit and areas adjacent to the Dwelling Unit for the purpose of: performing repair or maintenance work or making necessary improvements; performing periodic interior and exterior inspections of the Dwelling Unit, which may include monthly inspections of the interior of the Dwelling Unit during the first six (6) months after the signing of this Lease, and quarterly inspections of the interior of the Dwelling Unit after the initial six (6) months; showing the Dwelling Unit to prospective new tenants; and for other purposes permitted by this Lease or by law. 8.17 Disturbances. The Tenant will not disturb other tenants or neighbors and will prevent disturbances of other tenants or neighbors by members of the Tenant’s household, guests or other persons under control of the Tenant. The Tenant will not engage in or allow members of the Tenant’s household, guests or other persons under the Tenant’s control to engage in any activity, including criminal activity, which impairs the physical or social environment of the Dwelling Unit or the neighborhood. 8.18 Absence from Dwelling Unit. The Tenant must notify the Owner prior to being absent from the Dwelling Unit for more than thirty (30) days. An absence of more than thirty (30) days must be approved, in advance, by the Owner and in any case may not exceed one hundred eighty (180) days. The Tenant must provide any documentation requested by the Owner regarding the purpose and duration of the proposed absence exceeding thirty (30) days. 9. TENANT RESPONSIBILITIES FOR DWELLING UNIT MAINTENANCE. 9.1 Areas Adjacent to the Dwelling Unit. The Tenant will maintain in good repair any garage facilities and other structures associated with the living unit and all driveway areas, walkways, stairs, landings, hallways, grounds, patios, decks and landscaping adjacent to the Dwelling Unit. The Tenant will keep the driveway and sidewalks connected with the Dwelling Unit free and clear of ice and snow and will otherwise comply with all applicable local codes and ordinances governing streets, sidewalks and driveway entrances in residential areas. 9.2 Dwelling Unit Maintenance and Lawn Care. The Tenant will keep the Dwelling Unit and areas adjacent to the Dwelling Unit in good repair. The Tenant is responsible for replacing burned out light bulbs, including light bulbs in the refrigerator and stove, at the Tenant’s own expense. At the Tenant’s own expense, the Tenant will: maintain the front and back yards of the Dwelling Unit property in a neat and orderly mann er at all times; mow and water the lawn; keep yard and landscape areas free from weeds; re-seed worn lawn areas; water trees; and rake, bag and properly dispose of Scattered Site Dwelling Lease Page 7 of 12 FAHP Form #L-01 (revised 06/13/11) leaves and other debris. The Tenant will comply with all applicable state laws and local co des and ordinances regulating weed and vermin control. 9.3 Special Circumstances and Assistance. If the Tenant is unable to maintain the Dwelling Unit or grounds due to the Tenant’s age or disability, the Tenant must notify the Property Manager and, subject to verification of the Tenant’s inability to maintain the Dwelling Unit due to age or disability, the Property Manager will arrange for necessary repair and maintenance. 9.4 Corrective Action and Expenses. If, after notification from the Property Manager of the requirement for corrective action, the Tenant neglects to maintain in good repair the Dwelling Unit, the grounds or the areas adjacent to the Dwelling Unit, the Tenant will be required to pay to the Owner all expenses necessary for the Owner or its Prope rty Manager to maintain or repair the Dwelling Unit, the grounds or other areas adjacent to the Dwelling Unit. 10. PET POLICY AND PET DEPOSIT. 10.1 Compliance with Pet Policies. The Tenant agrees to comply with all terms and conditions of the pet policies contained in Section 8.14 of this lease. 10.2 Limits on Pets and Registration. With prior written approval of the Property Manager, the Tenant may keep as a pet up to two (2) small caged birds, which must be enclosed in a cage at all times. The Tenant also may keep fish. No more than one (1) aquarium is permitted in the Dwelling Unit. The aquarium shall not exceed fifteen (15) gallons and must be maintained on an approved stand. The Tenant agrees to register each pet with the Property Manager before bringing th e pet on the Premises. The Tenant is responsible for and must properly care for all permitted Tenant pets in accordance with the Owner’s pet polices. The Tenant may not construct or install any fencing and may not alter the Dwelling Unit or any patio, premises or common areas to create an enclosure for any pet. Pets and animals not owned by the Tenant are not permitted in the Dwelling Unit or areas adjacent to the Dwelling Unit. The pet restrictions do not apply to service animals that assist, support or provide services to persons with disabilities. 11. RENTERS INSURANCE. The Tenant is responsible for the personal property of the Tenant and household members, and the personal property of guests and visitors. Neither the Owner nor the Property Manager is responsible for personal property that may be stolen or that may be damaged due to accident, flood, fire or natural disaster whether the personal property is i n the Dwelling Unit or stored in the garage or other Dwelling Unit structures, and neither the Owner’s nor the Property Manager’s insurance covers such losses or damages. The Tenant is encouraged to obtain the Tenant’s own household or renter’s insurance, the cost of which is the Tenant’s responsibility. 12. TERMINATION OF THE LEASE. 12.1 Termination of Lease by the Owner. The Owner or its Property Manager will not terminate or refuse to renew this Lease and will not evict the Tenant from the Dwelling Unit except for serious or repeated violation of material terms of this Lease, for other good cause, or as permitted or required by law or HUD regulations. Serious violations of the Lease and other good cause include, but are not limited to: (a) Failure to Supply Information, Discovery of New Facts, and False Statements or Fraud. Failure of the Tenant to timely supply to the Owner or its Property Manager any certifications, releases, information or documentation on Tenant and household income, assets or composition; discovery after admission of facts that make the Tenant ineligible for housing assistance under the Project-based Voucher Program; discovery of material false statements or fraud by the Tenant or any other member of the household in connection with an application for assistance or with reexamination of income; or furnishing false or misleading inf ormation concerning illegal drug use, alcohol abuse, or rehabilitation of illegal drug users or alcohol abusers. (b) Nonpayment of Tenant Rent and Other Obligations. Nonpayment of Tenant Rent or other charges or fees under this Lease, or nonpayment under a repayment agreement with the Owner or another housing agency for the repayment of monies owed to the Owner or another housing agency. (c) Shut-Off of Utilities and Services. Shut-off, threatened shut-off or nonpayment of utilities and services for which the Tenant is responsible. (d) Transfers. Failure to accept a transfer for reasons stated in this Lease or as required by HUD regulations. (e) Criminal and Drug-Related Activity or Alcohol Abuse. Any of the following: (1) the Tenant or any member of the Tenant’s household has ever been convicted of drug-related criminal activity for manufacture or production of methamphetamine on the premises of federally assisted housing; (2) drug-related criminal activity or drug-related illegal activity engaged in on or off the Premises by the Tenant, any member of the Tenant’s household or guest, and any drug-related criminal activity or drug related illegal activity engaged in on the Premises by any other person under the Tenant’s control; (3) the Tenant, any member of the Tenant’s household, a guest or another person under the Tenant’s control engaged in criminal activity that threatens the health, safety, or right to peaceful enjoyment of Scattered Site Dwelling Lease Page 8 of 12 FAHP Form #L-01 (revised 06/13/11) the Premises by other residents or threatens the health, safety, or right to peaceful enjoyme nt of their residences by persons residing in the immediate vicinity of the Premises; or (4) the Tenant or any member of the Tenant’s household engaged in abuse or pattern of alcohol abuse that threatens the health, safety, or right to peaceful enjoyment of the Premises by other residents or threatens the health, safety, or right to peaceful enjoyment of thier residences by persons residing in the immediate vicinity of the Premises. The Owner or its Property Manager may evict the Tenant when the Owner or its Property Manager determines that a household member is illegally using a drug or when the Owner or its Property Manager determines that a pattern of illegal drug use interferes with the health, safety, or right to peaceful enjoyment of the Premises by other residents or others residing in the immediate vicinity of the Premises. The Owner or its Property Manager may evict the Tenant by judicial action for drug activity or criminal activity if the Owner or its Property Manager determines that the Tenant, any member of the Tenant’s household, a guest or another person under the Tenant’s control has engaged in criminal activity or drug activity, regardless of whether the covered person has been arrested or convicted for such activity and without satisfying the standard of proof used for a criminal conviction. (f) Registered Sex Offenders. Permitting any person to occupy the Dwelling Unit who is subject to a lifetime registration requirement under a sex offender registration program of any state. Federal law prohibits admission to federally assisted housing if any member of the household is subject to a lifetime registration requirement under a state sex offender registration program. This prohibition includes permitting a person who is subject to such a lifetime registration requirement to be a guest in the Dwelling Unit. (g) Fugitive Felons or Parole Violators. The Tenant or a member of the household is fleeing to avoid prosecution, or custody or confinement after conviction for a crime, or attempt to commit a crim e, that is a felony (or felony-level crime) under the laws of the place from which the individual flees, or is violating a condition of probation or parole imposed under federal or state law. (h) Noneligible Immigration Status. Knowingly permitting an individual who is ineligible for housing assistance because of the individual’s immigration or noncitizen status to reside in the Dwelling Unit when such residency is prohibited by federal law or HUD regulations. (i) Failure to Accept New Lease. Failure of the Tenant to accept the offer of a revised Lease. (j) Failure to Fulfill Tenant Lease Obligations. Failure to fulfill the Tenant obligations listed in Sections 8, 9 and 10 of this Lease. (k) Absence from Dwelling Unit. If the Tenant and all members of Tenant’s household are absent from the Dwelling Unit for more than 30 days without approval . 12.2 Automatic Termination of Lease for Methamphetamine Convictions and Illegal Drugs on the Premises. Under federal law, the Owner must immediately terminate the Tenant’s tenancy of th e Dwelling Unit if the Owner determines that the Tenant or any member of the Tenant’s household has ever been convicted of drug -related criminal activity for manufacture or production of methamphetamine on the premises of federally assisted housing. Under Minnesota law, the Tenant automatically promises not to knowingly allow illegal drugs on the Premises and that the Premises will not be used by the Tenant or others acting under the Tenant’s control to violate criminal drug laws. The law provides that a breach of this Tenant promise revokes the Tenant’s right to possession of the Premises. Minnesota Statutes section 504B.301 further provides that if illegal drugs or other illegal items are seized on the Premises pursuant to Minnesota Statutes section 609.5317, subdivision 1, the Tenant is unlawfully detaining the Premises, unless the Tenant has a defense under Minnesota Statutes section 609.5317, subdivision 3. 12.3 Termination of Lease by Tenant and Tenant’s Written Notice. This Lease may be terminated by the Tenant at any time by giving at least sixty (60) days written notice to the Property Manager on or before the last day of the month that is two months before the month the Tenant intends to vacate the Dwelling Unit. (Example: A Tenant who intends to vacate the Dwelling Unit by November 30 must give written notice to vacate on or before September 30). The Tenant must leave the Dwelling Unit in a clean and good condition and return all Dwelling Unit keys to the Property Manager when the Tenant moves out of the Dwelling Unit. Additional rents or charges may be assessed to the Tenant if the Tenant fails to provide proper written notice, fails to leave the Dwelling Unit in a good and clean condition, fails to leave the Dwelling Unit by the termination date or fails to return all Dwelling Unit keys to the Property Manager. 12.4 Signing Tenant Leaves the Dwelling Unit. If the signer(s) of the Lease no longer is a member of the Tenant’s household, this Lease will terminate. A new lease may be executed and sign ed by all remaining adult members of the household if those persons have not violated the terms and conditions of this Lease and the family continues to be eligible to receive assistance under the Section 8 Program. Scattered Site Dwelling Lease Page 9 of 12 FAHP Form #L-01 (revised 06/13/11) 12.5 Termination of Lease Upon Tenant Transfer. If the Tenant transfers to another dwelling unit operated by the Owner, this Lease will terminate and a new lease will be executed for the new dwelling unit into which the Tenant moves. 12.6 Owner’s Written Notice of Lease Termination or Nonrenewal. The Owner or Property Manager will give the Tenant written notice of termination of this Lease as follows: (a) Nonpayment of Tenant Rent. Two (2) calendar days in the case of the Tenant’s failure to pay Tenant Rent. (b) Health and Safety Issues. A reasonable time (but not more than thirty (30) calendar days) depending on the seriousness of the situation if: (1) the health or safety of other residents, Owner or Property Manager employees or agents, or persons residing in the immediate vicinity of the Premises is threatened; (2) any member of the Tenant’s household has engaged in any drug-related criminal activity or drug-related illegal activity, or violent criminal activity; or (3) any member of the Tenant’s household has been convicted of a felony. (c) Other Cases. Thirty (30) days in all other cases, unless a state or local law allows for a shorter notice period, in which case the shorter period shall apply. If the Owner or Property Manager terminates this Lease, the Owner or Property Manager will give the Tenant a written notice which states the reasons for the termination, informs the Tenant of the Tenant’s right to reply, and informs the Tenant of the Tenant’s rights under the Owner’s Grievance Procedures. 12.7 Owner’s Right to Terminate Lease Not Waived. Acceptance of rent with knowledge of good cause for termination of this Lease will not be considered a waiver of the Owner’s right to terminate this Lease on the basis of such good cause nor of the Owner’s right to assert such good cause in any legal action. 12.8 Tenant’s Failure to Timely Vacate the Dwelling Unit. If the Tenant continues to occupy the Dwelling Unit after the termination of this Lease, the Tenant agrees to pay the reasonable value of the use of the Dwelling Unit for the period that the Tenant continues to occupy the Dwelling Unit. The reasonable value for the use of the Dwelling Unit is equivalent to the amount of Tenant Rent for such period. However, such payments shall not constitute rent and by accepting such payments the Owner does not waive its right to assert any lease violations in any legal action. 13. DWELLING UNIT INSPECTIONS AND ENTRY BY PROPERTY MANAGER OR OWNER. 13.1 Move-In Inspection. Before the Tenant moves into the Dwelling Unit, the Tenant (or the Tenant’s representative) and the Owner or Property Manager must inspect the Dwelling Unit. The Owner or Property Manager will give the Tenant a written statement or checklist of the Dwelling Unit conditions and the equipment and appliances provided with the Dwelling Unit. The statement or checklist will be verified and signed by the Owner or Property Manager and the Tenant. A copy of the statement or checklist will be kept by the Owner or Property Manager in the Tenant’s file and will be used to assess damages, if any, upon move-out. 13.2 Interim Inspections. The Owner or Property Manager may enter the Tenant’s Dwelling Unit as follows: (a) Entry for Reasonable Business Purposes with Notice. The Owner or Property Manager will provide the Tenant with at least one (1) day’s written notice stating the business purpose of its entry into the Dwelling Unit, except when the Owner or Property Manager and the Tenant mutually agree the Owner or Property Manager or its personnel or agents may enter the Dwelling Unit on less than one day’s notice for reasonable busin ess purposes. Unless otherwise scheduled with the Tenant, entry by the Owner or Property Manager will occur between the hours of 8:00 a.m. and 5:00 p.m. for reasonable business purposes including, but not limited to: performing routine or periodic inspections and maintenance work; allowing inspections by federal, state, county or city officials charged in the enforcement of health, housing, building, fire prevention or housing maintenance codes; pest control operations; making improvements or repairs; showing the Dwelling Unit to prospective tenants during the notice period before the Lease terminates or after the Tenant has given notice to move; the Tenant is causing a disturbance within the Dwelling Unit; the Owner or Property Manager has a reasonable belief that the Tenant is violating the Lease within the Tenant’s Dwelling Unit; the Owner or Property Manager has a reasonable belief that the Dwelling Unit is being occupied by an individual without a legal right to occupy the Dwelling Unit; or the Tenant h as vacated the Dwelling Unit. (b) Emergencies. The Owner or Property Manager may enter the Dwelling Unit at any time without advance notification when there is reasonable cause to believe an emergency exists that requires immediate attention or when immediate entry is necessary to: prevent injury to persons or property because of conditions relating to maintenance, building security or law enforcement; determine the Tenant’s or members of the household’s safety; or comply with local ordinances regarding unlawful activity occurring within the Dwelling Unit. (c) Household Members’ Absences. If the Tenant and all adult members of the household are absent at the time of entry, the Owner or Property Manager will leave a written statement in the Dwelling Unit specifying the date, time and purpose of the entry prior to leaving the Dwelling Unit. Scattered Site Dwelling Lease Page 10 of 12 FAHP Form #L-01 (revised 06/13/11) 13.3 Move-Out Inspection. When the Tenant moves out of the Dwelling Unit, the Owner or Property Manager will inspect the Dwelling Unit and will furnish the Tenant with a written statement of damages (if any) and charges for which the Tenant is responsible. If the Tenant moves out after business hours or on a weekend or holiday, the Owner or Property Manager will inspect the Dwelling Unit on the next business day after the Tenant vacates the Dwelling Unit. The Owner or Property Manager will give the Tenant the opportunity to be present at the move-out inspection by giving the Tenant prior written notice, within a reasonable time, of the time and date of the move-out inspection. No notice will be provided if the Tenant vacates the Dwelling Unit without proper notice to the Owner or Property Manager. 14. LEGAL NOTICES. 14.1 Written Notices to Tenant. Except as otherwise stated in this Lease, any notice to the Tenant from the Property Manager or the Owner will be in writing and either will be delivered personally and handed to the Tenant, or another adult member of the Tenant’s household residing in the Dwelling Unit, or will be sent to the Dwelling Unit address identified on Page 1 of this Lease by prepaid first class mail properly addressed to the Tenant. If the Tenant is visually impaired, all notices will be in an accessible format upon request of the Tenant. 14.2 Written Notices to Owner or Property Manager. Except for notices that must be given to the Owner as stated in this Lease, all notices from the Tenant should be sent or delivered to the Property Manager. The notices must be in writing, and either must be delivered to the Property Manager at the Property Manager’s offices, or properly addressed and sent by first class mail to the Property Manager’s offices. 15. ABANDONMENT OF THE DWELLING UNIT. If the Tenant is absent from the Dwelling Unit for fourteen (14) consecutive days and Tenant Rent is owed, the Owner and its Property Manager have the right to consider that the Tenant has abandoned the Dwelling Unit. Any of the Tenant’s personal property remaining in the Dwelling Unit or on the Premises will be considered abandoned and may be stored and disposed of by the Property Manager accor ding to Minnesota law. 16. GRIEVANCE PRODEDURES. Except as otherwise provided by this Lease, the Owner’s Grievance Procedures and HUD regulations, all disputes about this Lease or about the obligations of the Tenant, the Tenant’s household, or the Owner o r its Property Manager will be processed and resolved in accordance with the Owner’s Grievance Procedures which are in effect at the time the dispute arises. The Owner’s Grievance Procedures, which are available for review at the Owner’s offices, are made a part of this Lease by reference. 17. OWNER’S ADMINISTRATIVE PLAN. The Administrative Plan referred to in this Lease, as approved and amended from time to time by the governing body of the Metropolitan Council, are made a part of this Lease by referenc e. The Administrative Plan contain policies and procedures governing: program eligibility, applicant selection and continued occupancy; rent calculations; dwelling unit assignments and transfers; leases and lease terminations; pet policies; grievance s; admission and move-out hearings; community service requirements; and reasonable accommodation. A copy of the Owner’s Administrative Plan (and any amendments) is available for review at the Owner’s offices and may be examined at any time during business hours. 18. CHANGES TO LEASE AND AMENDMENTS. Changes to this Lease, other than changes in Tenant Rent and family composition, will be made only by a written addendum or amendment signed by both the Tenant and the Owner. 19. COVENANT NOT TO ALLOW UNLAWFUL ACTIVITIES. In accordance with Minnesota Statutes section 504B.171, the Tenant and the Owner agree that neither will: unlawfully allow controlled substances in the Premises or in any common areas; allow prostitution or prostitution-related activity to occur on the Premises or in any common areas; allow the unlawful possession or the unlawful use of a firearm on the Premises or in any common areas; or allow stolen property or property obtained by robbery in the Premises or in any common areas. The Tenant and the Owner further agree that the Premises or any common areas will not be used by either the Tenant or the Owner or others acting under the control of either to manufacture, sell, give away, barter, deliver, exchange, distribute, purchase, or possess a controlled substance in violation of any criminal provision of Minnesota Statutes Chapter 152. A breach of these covenants voids the Tenant’s right to possession of the Dwelling Unit or Premises. Unless otherwise provided by law, proof of violation of the unlawful activities described in this Section and proof of violation of criminal activities described in any other Section of this Lease shall not require cri minal conviction, but shall be by the preponderance of the evidence. 20. LANDLORD OR AGENT DISCLOSURE; NOTICES. In accordance with Minnesota Statutes section 504B.181, subdivision 1, the Owner makes the following disclosures: Scattered Site Dwelling Lease Page 11 of 12 FAHP Form #L-01 (revised 06/13/11) 20.1 Authorized Manager of the Premises. The Property Manager identified below is the property management company hired by the Owner to manage the Dwelling Unit and authorized to manage the Premises on behalf of the Owner: Kingwood Management Telephone: (651) 439-7812 14524 61st Street Court North Facsimile: (651) 430-8430 Stillwater, Minnesota 55082 Notices required under this Lease, notices required by law and correspondence regarding the operation, maintenance and repair of the Dwelling Unit should be sent to the Property Manager at the mailing address listed above. At the Owner’s discretion, the Owner may perform any or all of the Property Manager management functions identified in this Lease. 20.2 Owner’s Address and Authorized Agent for Service of Process. The Owner’s address and contact numbers are: Metropolitan Council / Metro HRA Telephone: (651) 602-1428 Family Affordable Housing Program Facsimile: (651) 602-1313 390 Robert Street North Saint Paul, Minnesota 55101 Except for notices and correspondence regarding the operation, maintenance and repair of the Dwelling Unit which should be sent to the Property Manager, the Metropolitan Council’s Community Development Division Director is the person authorized by the Owner to accept service of process and receive and give receipt for such notices and demands. 21. LEAD WARNING STATEMENT AND DISCLOUSRE. In accordance with the federal Residential Lead-Based Paint Hazard Reduction Act of 1992 (Title 42 United States Code section 4852d) and HUD regulations (Title 24 Code of Federal Regulations Part 35), the Owner makes the following lead warning statement and disclosure: 21.1 Lead Warning Statement. Housing built before 1978 may contain lead-based paint. Lead from paint, paint chips, and dust can pose health hazards if not managed properly. Lead exposure is especially harmful to young children and pregnant women. Before renting pre-1978 housing, lessors must disclose the presence of lead-based paint and/or lead- based hazards in the dwelling. Lessees must also receive a federally approved pamphlet on lead poisoning prevention. 21.2 Disclosure. The Owner has no knowledge of lead-based paint and/or lead-based paint hazards in the Dwelling Unit that have not been abated in accordance with HUD regulations. The Tenant should contact the Property Manager if the Tenant has any questions or concerns about any known lead-based paint hazards that may have existed in this Dwelling Unit, any lead-based paint inspection and abatement work that may have occurred in connection with this Dwelling Unit, or would like to see any records or reports pertaining to known lead-based paint or lead-based hazards that may have existed in the Dwelling Unit. A federally approved lead hazard information pamphlet is available from the Property Manager and the Owner. 22. TENANT RIGHTS. To obtain information about your rights as a residential tenant, contact the Office of the Minnesota Attorney General for a statement that summarizes the significant legal rights and obligations of landlords and residential tenants of rental dwelling units. 23. TENANCY ADDENDUM.. This Lease is subject to the terms and conditions of the Tenancy Addendum attached hereto and incorporated herein. 24. RECEIPT OF LEASE AND OTHER DOCUMENTS BY TENANT. By signing this Lease, the Tenant acknowledges the Tenant: has received copies of this Lease, the Owner’s Grievance Procedures and (if applicable) homeowner association declaration, bylaws and administrative rules and regulations; has been informed that the Owner’s Administrative Plan are posted in or available at the Owner’s downtown Saint Paul offices; and understands how this Lease, the Owner’s Grievance Procedures and the Owner’s Administrative Plan all apply to the Tenant’s occupancy and tenancy of the Dwelling Unit. 25. POSTING OF POLICIES, RULES AND REGULATIONS. The following policies, rules, regulations and schedules, which may be modified from time to time by the Owner, either are posted in the Owner’s offices or are available from the Owner: schedules of special charges for services, maintenance and repairs beyond normal wear and tear; special charges for excess utility consumption; the Owner’s Grievance Procedures; and the Owner’s Administrative Plan. 26. ADDITIONAL PROVISIONS. (if any) Scattered Site Dwelling Lease Page 12 of 12 FAHP Form #L-01 (revised 06/13/11) By signing below, the Tenant and the Owner (through its Property Manager who executes this Lease on behalf of the Owner) ente r into this Lease which is effective on the date shown in Section 2, TERM OF LEASE AND RENEWALS, on Page 1 of this Lease. TENANT(S) METROPOLITAN COUNCIL ______________________________________ By: ____________________________________ Signature of Head of Household Signature of authorized Property Manager personnel ______________________________________ Signature of Household Member 18 and older Name: _________________________________ Print or type name of authorized personnel _______________________________________ Signature of Household Member 18 and older Date: __________________________________ _______________________________________ Signature of Household Member 18 and older Date Signed by Tenant(s): _________________ Date: May 27, 2021 Agenda Item #: VI I.B. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:Bill Neuendorf, Economic Development Manager Item Activity: Subject:7001 F rance Ave - P reliminary R ec ommendation R egarding Tax Inc rement F inanc ing Disc ussion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: No action required; for discussion only. I N TR O D U C TI O N: T his item pertains to the potential use of tax increment financing (T I F ) to promote redevelopment of the underutilized site at 7001 France Avenue. T he developer has the property under contract and has secured preliminary approvals to re-zone the site to replace the existing office and bank buildings with four new buildings constructed on four separate pads. T he developer has requested that the H R A consider the creation of new T I F D istricts and a pledge of T I F support upon completion of the projects. S taff has evaluated the request and will provide a recommendation to guide the use of T I F on this project. Guidance is requested from the H R A Board regarding the use of T I F before additional work is performed. AT TAC HME N T S: Description Staff Report - TIF Prelim Recommendation Pres entation Housing & Redevelopment Authority May 27, 2021 Chair Hovland and Commissioners of the Edina Housing and Redevelopment Authority Bill Neuendorf, Economic Development Manager 7001 France – Preliminary Recommendation for Tax Increment Financing Information / Background: The developers of 7001-7025 France have requested that Tax Increment Financing (TIF) be considered to make the redevelopment program financially viable. This zoning proposal was supported by the Planning Commission and granted preliminary zoning approvals by the City Council in December 2020. Staff reviewed this request and engaged Ehlers Associates to scrutinize the preliminary financial pro forma. This evaluation confirms that TIF is necessary to make a multi-phase project of this scale, scope and caliber feasible. Project Summary: Staff recommends that up to $22.0 million in TIF Notes be considered for this project. Further, staff advises that additional support will be needed for the mixed-income housing in the future. Staff recommends that a TIF Term Sheet be prepared to document terms and conditions of a future TIF Redevelopment Agreement. The preliminary recommendation to support this summary is attached. Discussion Questions: Staff seeks guidance from the HRA Board regarding the level of public financing generally supported for this project. Input is required before staff proceeds with any additional work. 1) Is this a strategic location for privately-owned public parking? 2) Is the HRA Board satisfied with the overall degree of public benefit delivered by this project? 3) Is HRA Board comfortable with staff’s recommendation for TIF funding? STAFF REPORT - 7001 France – Preliminary Recommendation for use of TIF Page 2 PRELIMINARY STAFF RECOMMENDATION 1) Establish two TIF Districts a. Separate schedules and time frames b. subject to HRA and City Council review after public hearings 2) Prepare two separate Term Sheets and TIF Agreements a. three market rate elements (Sites A, B & D) b. mixed Income housing element (Site C) 3) Terms of the mixed-income housing to be determined separately, in the future 4) Developer to bear all financial risk, including pre-development costs, equity investment and debt 5) Project delivered must be the same scale as shown in zoning approvals as measured by square footage, number of units, and caliber of design and construction a. Minor architectural or engineering revisions are generally acceptable provided approval granted by City staff, Planning Commission and/or City Council as appropriate 6) Issue TIF Note(s) upon final completion of Sites A, B, & D and delivery of Site C pad. Notes may be postponed or withheld if site is not fully completed. a. Site C MUST be deed restricted, fully entitled with approved plans or conveyed to guarantee affordable housing requirements of the overall project will be achieved 7) Notes to be pay-as-you-go and interest bearing. A single or multiple TIF Notes may be issued. 8) No direct TIF support for the single story bank building (Site D) 9) No direct TIF support for the private elements of the luxury residential high rise (Site B) or the private elements of commercial high rise (Site A). 10) No direct TIF support for private parking 11) Minnesota Statutes identify a wide variety of construction expenses that are potentially eligible for TIF. Staff recommends that only a subset of these potentially eligible costs be recognized as reimbursable. 12) TIF Assistance should be considered in an amount not to exceed the estimated cost to deliver exceptional public benefits on the site. The recognized public benefits include: clearing, subdividing and designing the site to comply with the ideals of the Southdale Experience Guidelines, and a portion of the costs to incorporate public parking into the podiums of the structures on Sites A & B. Those approximate costs are summarized below. STAFF REPORT - 7001 France – Preliminary Recommendation for use of TIF Page 3 Description of costs that yield public benefit Approx Cost 1 Demolition of existing obsolete structures $200,000 2 Remediation of environmental contamination $400,000 3 Site improvements to achieve the desired 4 parcel arrangement, including site preparation, utilities, France & 70th street improvements, internal roads, surface parking, driveways, sidewalks, landscaping, etc $4,100,000 4 Public plaza $300,000 5 Public parking – approx. 600 structured parking stalls incorporated into commercial and residential high buildings ($28,000 per stall or approximately 75% of actual costs) $ 16,800,000 6 Professional costs to prepare TIF study, plan and agreements $200,000 Total = $22,000,000 8 Affordable housing Site C TBD 13) TIF Assistance should be considered at a base amount of $18.0 million. This amount could be increased by an additional $4.0 million, subject to a review of the updated costs based on the final zoning approvals, debt and equity contributions and grants. The total principle amount of TIF Notes should not exceed $22.0 million. The final sizing of the TIF Note(s) will be fully articulated in the TIF Redevelopment Agreement. 14) The TIF Note(s) will also be subject to the following limitations: a. TIF Assistance shall not exceed 10% of actual total Site A&B development costs (including the site preparation costs to deliver the Site C pad. Costs for Site D bank are not eligible. b. TIF Note(s) will be sized at time of Certificate of Completion upon verification the anticipated stabilized project returns do not exceed 6.00% return on cost for Site A (residential building) and 7.50% return on cost for Site B (commercial building). 15) TIF payments will be subject to lookback/clawback provisions at the earlier of (a) sale of any element or (b) 10-12 years into the term of the TIF District to reduce TIF payments should the project generate above-market returns (to be defined in Term Sheet) 16) Throughout the process of sizing the TIF Notes and making TIF payments, the developer must continue to confirm that the “But For” finding is satisfied and that a project of this scale, scope and caliber would not be possible without TIF Assistance. 17) Fees charged by developers and affiliated companies must be typical for the service delivered 18) Developer to identify equity partners and debt providers prior to preparation of final TIF Redevelopment Agreement. STAFF REPORT - 7001 France – Preliminary Recommendation for use of TIF Page 4 19) Developer to provide permanent public easements at no expense to the City on the public parking in Sites A & B, public plaza and other perimeter and interior area used to traverse the site. a. Developer to maintain these easement areas in good condition. b. Developer can apply reasonable rules and regulations on the public parking and public plaza including restrictions on the hours of operation, prohibit use for purposes detrimental to the operations of the adjacent private buildings (ie loud noise, unruly behavior) and limit the time a vehicle can be parked in public stalls without paying. Rules and regulations subject to acceptance by City Manager. 20) Developer to pursue applicable grants and shall be responsible to abide by the terms of those grant programs. a. Grant proceeds to be used to reduce any gap remaining below the returns cited in #13 not already covered by TIF b. If no further gap exists, the value of the TIF Note will be reduced by 50% of the grant proceeds received c. Grants will be considered in final determination of project returns d. Developer to bear the cost of preparing the grant applications, including an administrative fee to the City 21) Developer to bear financial responsibility for all third-party costs incurred by City/HRA related to this TIF request END The CITY ofEDINA 7001-7025 France Avenue Preliminary Recommendation for TIF Report to: Edina Housing & Redevelopment Authority May 27, 2021 For Discussion www.EdinaMN.gov The CITY ofEDINA 2 Overview •Project Overview •Request for TIF •Eligibility Study •Public Benefits •Staff Recommendation •Discussion Project Overview •Fully embrace Southdale Design Experience Guidelines •subdivide 5-acre site •4 separate construction pads •Streetscape elements throughout to enhance public realm •Integrate public parking INTO building podium •Each building financed and constructed separatelyD bank C Mixed -income residential high rise B Office / Retail High rise A Market-rate residential high rise 3 The CITY ofEDINA •Developer to invest up-front costs •Developer to bear all financial risk •HRA to reimburse using TIF Note(s) after completion •Total cost approx. $234 million •TIF Request $25.5 million Developer Request for TIF 4 TIF Requested for: •Site Preparation •Infrastructure Improvements •Enhanced Public Realm •Public Parking The CITY ofEDINASummary of Evaluation 5 Staff reviewed this request and engaged Ehlers Associates to scrutinize the preliminary financial pro forma. Evaluation confirms that TIF is necessary to make a multi-phase project of this scale, scope and caliber feasible 1)Staff recommends up to $22.0 million in TIF Notes 2)Staff advises that additional support will be needed for the mixed-income housing in the future 3)Staff recommends that a TIF Term Sheet be prepared to document terms and conditions of a future TIF Redevelopment Agreement Staff seeks input and guidance from the HRA Board before it proceeds with any additional work Potential to establish two separate TIF Districts •Renewal District for market-rate elements •Housing District for mixed- income housing •Subject to independent review by City Council and public hearings 15-year Renewal TIF District 20-year Housing TIF District 6 TIF Eligibility Costs typically recognized in MN Statutes & Edina •Demolition •Remediation •Utilities & site work •Interior driveways •Sidewalks & streetscaping •Plaza •Structured parkingD bank C Mixed -income residential high rise B Office / Retail High rise A Market rate residential high rise 7 Site C –mixed income residential high rise •Project for Pride in Living (PPL) •Mortenson will contribute $ and/or land to PPL •2-3 years to arrange tax credit financing •Separate TIF District •Separate TIF Agreement •May be smaller scale (4-9 stories) based on available funding •No further details at this timeD bank C Mixed -income residential high rise B Office / Retail High rise A Market rate residential high rise 8 Public Benefits Delivered -Greater Southdale Plan –District Parking (p 113) TIF Discussion Items -7001 France Ave -DRAFT 9 Permanent public benefits •France Ave & 70th St streetscapes •Interior drive lanes & sidewalks •On-street parking •Structured parking in A & B •Outdoor plaza in A D bank C Mixed -income residential high rise B Office / Retail High rise A Market rate residential high rise 10 The CITY ofEDINAPreliminary Staff Recommendation -TIF eligible expenses that deliver public benefits 11 Work that delivers public benefits Approx Cost 1 Demolition of obsolete buildings $200k 2 Remediation of contamination $400k 3 Site improvements to achieve 4 pad layout $4.1 M 4 Public plaza $300k 5 Public parking –approx. 600 structured parking stalls in Sites A & B (600 x $28k) $16.8 M 6 Professional costs related to TIF agreement $200k Estimated Total = $22.0 M Affordable housing Site C = TBD The CITY ofEDINAPreliminary Staff Recommendation -Expenses NOT eligible for TIF 12 Description of In-eligible Work A Private (executive) parking for commercial building B Private parking for residential high rise C Building costs* of commercial building D Building costs* of residential high rise E Design & other soft costs of private buildings F Any costs of the single-story bank no T I F used for these items * Other than public parking and site improvement costs The CITY ofEDINA •$18 M in base value •-Additional $4 M possible based on final pro forma •NTE $22.0 M •-NTE 10% of TDC •-NTE typical minimum returns •Single or multiple TIF Notes considered •Interest-bearing at market rate •Issued at Certificate of Completion Preliminary Staff Recommendation -Issuance of TIF Notes 13 The CITY ofEDINA •Projected and actual returns to be limited to avoid “excess profit” •Updated pro forma when debt and equity confirmed •Final pro forma at completion •Standard “look back” provisions •-upon sale and 10-12 years •Standard “claw back” provisions •-halt TIF payments if “excess profit” occurs •Satisfy “but for” test •-project of this scale, scope and caliber not feasible w/o TIF •Complete full site to be awarded full amount •Guarantee affordable housing on Site C •Pursue grants, equity & cost savings Preliminary Staff Recommendation -Conditions applied to TIF Notes & payment 14 The CITY ofEDINASummary 15 1)The approved development program appears to not be feasible “but for” the use of public financing 2)Staff recommends up to $22.0 million in TIF Notes 1)-Developer to pursue grants and additional equity 2)-Developer to consider minor changes in design to reduce costs 3)Staff recommends that a TIF Term Sheet be prepared to document terms and conditions of a future TIF Redevelopment Agreement Staff seeks input and guidance from the HRA Board before it proceeds with any additional work The CITY ofEDINADiscussion Questions 1)Is this a strategic location for privately-owned public parking? 2)Is the HRA Board satisfied with the overall degree of public benefit delivered by this project? 3)Is HRA Board comfortable with staff’s recommendation for TIF funding? 16 Date: May 27, 2021 Agenda Item #: VI I.C . To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:S tephanie Hawkinson, Affordable Housing Development Manager Item Activity: Subject:Housing Improvement Area P olic y Ac tion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approve Housing Improvement Area P olicy I N TR O D U C TI O N: T he City has been approached by representatives of condominium associations seeking financial assistance for common area improvements. S ome of the buildings are aging and in need of improvements. One tool neighboring cities use is the creation of a Housing Improvement Area whereby the city finances the improvements and are paid back through assessments. T his is considered a financing option of last resort and requires authorization by a majority of the owners in the association. I n order for Edina to considering utilizing this source of financing, the H R A must first approve a policy. AT TAC HME N T S: Description Staff Report Hous ing Improvement Area Policy Hous ing Improvement Area Application Hous ing Improvement Areas General Information May 14, 2021 Chair and Commissioners of the HRA Stephanie Hawkinson, Affordable Housing Development Manager Housing Improvement Area Policy Information / Background: Over the years various Condominium Associations have approached the City seeking a financing mechanism for common area improvements. Although State Statute allows for the creation of Housing Improvement Area (HIA) financing, Edina does not yet have a policy regarding this. Staff is proposing the passage of a policy that is like the HIA policies in St. Louis Park and Bloomington. The purpose of this policy is to establish the City and Housing and Redevelopment Authority’s (HRA) position relating to the use of HIA financing for private townhome and condominium housing improvements. This policy shall be used as a guide in processing and reviewing applications requesting HIA financing. HIA’s are City funded improvements to common areas of owner-occupied condominiums and/or townhomes. The City lends the money for the improvements and is repaid with fees added to the property taxes. This is a last resort for financing, after the Association has demonstrated that they cannot received financing from a traditional lender, such as a bank. The City Council may appoint the HRA to be the implementing entity for this policy. Policy Highlights: 1. Eligible Uses: promote neighborhood stabilization; correct building code violations; increase or prevent the loss of the City’s tax base. 2. Approval Criteria: Last resort for financing; financial guarantees; 70% of owners support; financial plan for on-going maintenance; common area improvements. 3. City Administration Fee: 1% of total project cost or $7,500, whichever is greater plus an escrow deposit of $10,000 to cover out of pocket costs for financial advisor and legal advisors. Please refer to the attached HIA Policy for full description. Even with the passage of this policy, a Condominium or Townhome Association would need to make an application to the City/HRA. The City STAFF REPORT Page 2 Council would need to hold public hearings and pass an ordinance before financing for a particular association application were approved. Alignment with Comprehensive Plan: 1. 2040 Comprehensive Plan • Goal 2.2: Encourage the preservation and maintenance of, and improvements to, existing subsidized and naturally occurring affordable housing (NOAH). • Goal 2.5: Promote the preservation and production of affordable housing through the areas of Edina accessible to transit by addressing financial and zoning barriers (italics added). • Goal 2.10: Recognize that housing is a long-term investment and promote housing policies that offer enduring opportunities for medium and low-income residents to house themselves, emphasizing home ownership. • Goal 3.4: Maintain some of Edina’s lower square footage housing stock to attract new residents and retain existing residents, including providing affordable options. 2. Housing Strategy Task Force Report • Goal 1.D.2: Encourage the preservation, maintenance, and rehabilitation of existing subsidized and naturally occurring affordable rental and ownership housing (NOAH). • Goal 3.B.8: Fully utilize the other options the city has to lower the cost of development and or financing [del]. Alignment with City Pillars: 1. Sustainability The condominium and townhome stock in Edina is aging. Some are currently facing deferred maintenance issues that exceed their accumulated reserves. This may not be due to poor management, but rather reflect aging buildings with failing mechanical systems, building envelopes including windows, siding and roofs that are reaching the end of their functional life. HIA financing can help extend the life and functionality of these buildings. It is more environmentally sustainable to increase energy efficiency and address rehabilitation needs rather than demolishing a building and constructing new. 2. Equity and Inclusion Condominium and townhome ownership are more affordable ownership options in the City. A vast majority of the Come Home 2 Edina mortgages are placed on condominiums that allow low- and moderate-income homeowners to move into the City or transfer from rental to ownership housing. 3. Engagement The HIA policy was reviewed and supported by the Edina Housing Foundation at their March 23, 2021 Board meeting. ☐City Council Approved: ☒City-Wide Revised ☐Department City of Edina Policy HOUSING IMPROVEMENT AREA POLICY 1. PURPOSE 1.01 The purpose of this policy is to establish the City of Edina and its Housing and Redevelopment Authority’s (HRA) position relating to the use of Housing Improvement Area (HIA) financing for private townhome and condominium housing improvements. This policy shall be used as a guide in processing and reviewing applications requesting HIA financing. 1.02 The City/HRA shall have the option of amending or waiving sections of this policy when determined necessary or appropriate. 2. AUTHORITY 2.01 The City/HRA has the authority to establish HIAs under 1994 Minnesota Laws, Chapter 587, Article 9, Section 22 through 31, and extended in 2000, M.S. Section 428A.11 to 428A.21. Such authority expires June 30, 2028, unless extended by the legislature. 2.02 Within a HIA, the City/HRA has the authority to: A. Make housing improvements. B. Levy fees and assessments, including interest. C. Issue bonds or use other funds to pay for improvements. 2.03 The City/HRA has the authority to review each HIA request, which includes petition, scope of improvements, association’s finances, long term financial plan, and membership support. 3. ELIGIBLE USES OF HIA FINANCING 3.01 As a matter of adopted policy, the City/HRA will consider using HIA financing to assist private property owners only in those circumstances in which the proposed private project addresses one or more of the following goals: A. To promote neighborhood stabilization and revitalization by the removal of Page | 2 blight and/or the upgrading of the existing housing stock in a neighborhood. B. To correct housing or building code violations as identified by the City Building Official. C. To maintain or obtain FHA mortgage eligibility for a particular condominium or townhome association within the designated HIA. D. To increase or prevent the loss of the tax base of the City to ensure the long-term ability of the City to provide adequate services for its residents. E. To preserve naturally occurring affordable housing. F. To preserve a variety of housing styles and values within the community G. To stabilize or increase the owner-occupancy level within a neighborhood or association. H. To meet other uses of public policy, as adopted by the City from time to time, including promotion of quality urban design, quality architectural design, energy conservation, decreasing the capital and operating costs of local government, etc. 4. HIA APPROVAL CRITERIA 4.01 All HIA financed through the City/HRA shall meet the following minimum approval criteria. However, it should not be presumed that a project meeting these criteria would automatically be approved. Meeting these criteria creates no contractual rights on the part of the City/HRA or any association. A. The project must be in accordance with the Comprehensive Plan and Zoning Ordinances or required changes to the Plan and Ordinances must be under active consideration by the City/HRA at the time of approval. B. The HIA financing shall be provided within applicable state legislative restrictions, debt limit guidelines, and other appropriate financial requirements and policies. C. HIA financial assistance is last resort financing and should not be provided to projects that have the financial feasibility to proceed without the benefit of HIA financing. Evidence that the association has sought other financing for the project should be provided and should include an explanation and verification that an assessment by the association is not feasible along with at least two letters from private lenders or other evidence indicating a lack of financing options. Page | 3 D. The project shall meet one or more of the above adopted HIA Goals of the City/HRA as noted in Section 3.01. E. The association shall designate an administrator who will be the City’s point of contact throughout the improvement project. F. The term of the HIA should be the shortest term possible while still making the annual fee affordable to the association members. The term of any bonds or other debt incurred for the area should mature in 20 years or less, or the improvements useful lifespan, whichever is less. The par amount of any bonds shall not be less than $250,000. The City/HRA may determine to provide other sources of financing in lieu of issuance of bonds. G. Service charges (including, but not limited to, construction/improvement costs, cost of issuance of bonds and other pertinent costs associated with the project) will be imposed on the owners in the same ratio as common elements or other such uniform methods as proposed by the applicant. H. The association in a HIA shall provide adequate financial guarantees to ensure the repayment of the HIA financing and the performance of the administrative requirements of the development agreement. Financial guarantees may include but not limited to the pledge of the association's assets including reserves, operating funds and/or property. I. The proposed project, including the use of HIA financing, shall be supported by at least 70% of the owners within the association. The association should include the results of a membership vote along with the petitions to create the area. J. The association must have adopted a financial plan that provides for the Association to finance maintenance and operation of the common elements within the Association and a long-range plan to conduct and finance capital improvements therein, which does not rely upon the subsequent use of the HIA tool. K. The association must have a replacement reserve study (the “Reserve Study”) conducted by an independent third party with designation as a Community Associations Institute (CAI) certified reserve specialist. The Reserve Study must conform to CAI Reserve Study standards. The components of the proposed improvements must normally come from the Reserve Study. The Reserve Study must include a thirty-year replacement reserve plan (the “Reserve Plan”), and the Reserve Study and Reserve Plan must be submitted with the application and will be reviewed by the City’s Financial Advisor. The association must also have an independent third party prepare a thirty-year reserve plan (the “HIA Reserve Page | 4 Plan”) with the proposed components removed from the Reserve Plan. The independent third party must also prepare a thirty-year financial plan (the “Financial Plan”) the reflects the annual replacement reserve contributions based on the HIA Reserve Plan. The Financial Plan will provide a plan for the association’s operating budget with cost increases over time. The HIA Reserve Plan and the Financial Plan must be submitted with the application and will be review by the City’s Financial Advisor. L. The association shall obtain temporary construction financing from a private lender, and the City/HRA shall provide a take-out commitment to the lender, detailing the terms for the payoff of the construction financing. Upon project approval and issuance of certificate of completion, the City will issue bonds or notes to satisfy the temporary construction loan. M. The homeowner's association must be willing to enter into a development agreement, drafted by the City/HRA, which may include, but not limited to, the following terms: • establishment of a reserve fund • staffing requirements • annual reporting requirements • conditions of disbursement • required dues increases • notification to new owners of levied fees • assessments, including interest and City/HRA fees N. The improvements financed through the HIA should primarily be exterior improvements and other improvements integral to the operation of the project, e.g., boilers. In the case of a homeowner's association, the improvements should be restricted to common areas and must be of a permanent nature. The association must have a third party conduct a facility needs assessment to determine and prioritize the scope of improvements. O. HIA financing should not be provided to those projects that fail to meet good public policy criteria as determined by the City/HRA, including: poor project quality; projects that are not in accord with the Comprehensive Plan, zoning, redevelopment plans, and the City/HRA policies; projects that provide no significant improvement to the neighborhood and/or the City; and projects that do not provide a significant increase in the tax base and/or prevent the loss of tax base. P. The financial structure of the project must receive a favorable review by the City’s Director of Finance, Financial Advisor and legal components will include a review by the City/HRA’s legal counsel. The review will include a review of performance and level of outstanding debt of previous HIAs. Page | 5 Q. If bonds are to be issued, legal components will be reviewed by the City/HRA bond counsel. R. All rental units within the HIA must be licensed according to Edina ordinance. S. The association is to submit an application along with a $500.00 non-refundable application fee, as set from time to time by resolution of the City Council. T. The City/HRA will charge an administrative fee of 1% of the total project amount, or $7,500, whichever is greater. In addition, the Association is responsible for all City/HRA out of pocket expenses with an initial escrow deposit of $10,000. [This amount can be financed with the project costs.] Any unused portion of the escrow shall be refundable to the Association. U. The City Council/HRA reserves the rights to deny funding for specific improvements if they are determined not to be in keeping with the intent of the policy. Adopted by the Edina Housing and Redevelopment Authority on the _________ day of _______________ 2021. Adopted by the City of Edina City Council on the _________ day of _______________ 2021. APPLICATION HOUSING IMPROVEMENT AREA FINANCING Legal Name of Association: _______________________________________________________ Mailing Address:________________________________________________________________ Name of Contact Person:____________________________ Phone:_______________________ Email:_________________________________ Name of Management Firm/Agent (if different than contact person) ______________________________________________________Phone:__________________ Email: _________________________________ Legal Description of the Project Site:________________________________________________ ______________________________________________________________________________ REQUIRED INFORMATION Addendum shall be attached hereto addressing in detail the following: 1.Provide a general description of the project. 2.Explain how the project will meet the goals of the City of Edina and the Housing and Redevelopment Authority (HRA) as identified in Section 3.01 of Edina‘s Housing Improvement Area Policy. 3.Provide a proposed timeline for the project including the dates of membership meetings to discuss a project, submittal of required petitions, public hearings, construction start, submission of first draw request and project completion. 4.List of improvements and estimated project budget. 5.Explain why Housing Improvement Area financing is necessary to undertake the project. Attach documentation regarding efforts to secure private financing. 6.Explain the process used to determine the scope of the proposed project and the desire for HIA financing among the association members. Provide documentation regarding owner meetings discussing project. Attach a copy of the following: Letters from two private financial institutions denying loan approval Association Bylaws Recorded Association declaration Certificate of Good Standing from the Secretary of State Audited financial statements for the last two years Documentation of the results of a vote of the membership clearly showing the proposed HIA project has the support of at least 60% of the owners. Current Association Financial Plan which identifies how both maintenance and operation of the common elements will be paid for and a long-range plan to conduct and finance capital improvements (if available – required with the Supplement Application) What is the proposed term of the HIA: ________________years. How do you propose the fee to be charged to the affected property owners: Equally among all properties Other: for example-based on unit size, percent interest in association or value. If Other, please identify: ___________________________________________________ ________________________________________________________________________ Amount of HIA financing requested: $___________________________________________ Are there any properties within the HIA which should be exempt from the fee? No Yes If Yes, please explain: ________________________________________________________ REQUIREMENTS FOR HOUSING IMPROVEMENT AREA (HIA) FINANCING To a.pply for HIA financing, the Association must agree to the following: 1. Must use City/HRA's choice of Bond Council and Financial Advisor(s). 2. Disbursements of bond/loan proceeds must be made through an escrow agent to be selected by the City/HRA. 3.Payment of an administrative fee to the City/HRA of one percent of the total project amount or flat fee of $7,500, whichever is greater. Plus an escrow payment of $10,000 to cover out of pocket expenses. Excess fundswill be returned to the association. 4.City/HRA staff or its agents will review the performance and level of outstanding debt of previous HIAs before recommending the approval of additional HIA debt. 5.The bond (s) shall be for an issue not less than $250,000, other HRA sources may be used, and the HRA determines if bonds are to be used. By signing this application the Association hereby agrees to the following: 1.I have read and will abide by all the requirements of the HRA for taxable bond financing. I will also commit all contractors, subcontractors, and any other major contributors to the project to all segments applicable to them. 2.The information contained in this application, including all addenda, is true and correct. 3.The Association will pay all costs involved in the legal and fiscal review of this project. These costs include the Bond Counsel, Financial Advisor and HRA Attorney, and all costs involved in the issuance of the bonds to finance the project. 4.I understand that the HRA/City reserves the right to deny approval of the application. Signature of Representative: _____________________________ Date____________ Please print and sign by hand Printed Name: _____________________________ Title: _____________________________ SUPPLEMENT TO APPLICATION To be submitted upon request by the HRA, following satisfactory preliminary review of the application and site visit by HRA and City staff. Application Fee – $500.00 (non-refundable) – Payable to the Edina HRA Current Association Financial Plan and/or Reserve Study which identifies how both maintenance and operation of the common elements will be paid for and a long-range plan to conduct and finance capital improvements (if not previously submitted) By Christopher Kleman, 651-296-8959 Housing Improvement Areas February 2020 What are housing improvement areas? A housing improvement area (HIA) is a defined area in a city in which housing improvements in condominium or townhome complexes may be financed with the assistance of the city, or the city’s economic development authority (EDA) or housing and redevelopment authority (HRA). Prior to 1996, cities needed special legislation to establish an HIA. In 1996, cities were granted the authority under general law. The general law, codified in Minnesota Statutes, sections 428A.11 to 428A.21, sunsets June 30, 2028. What improvements can be made in an HIA? The improvements that can be made under this law include improvements to the common elements in a condominium complex or townhome development. Examples include roofing, siding, landscaping, roadways, and walkways. How is an HIA established? At property owners’ request. An HIA can only be established at the request (petition) of at least 50 percent of the owners of the housing units in the proposed area. If the petition is filed, then the city prepares an ordinance that: describes the area specifically; states the basis for imposing fees and the number of years the fees will be imposed; makes a finding that without the HIA, the proposed improvements could not be made; and specifies if the city, the EDA, or HRA will implement the ordinance. In addition, the city must fully disclose the public expenditures and financing for the projects, and determine whether the association or the implementing agency will contract for the work. Notice, public hearing, ordinance. Before adopting the ordinance, the city must hold a public hearing at which the proposed improvements, affected housing units, and the exempt units are listed. Potentially affected property owners may testify at the hearing. Objection and appeal. Prior to the adoption of the ordinance or at the hearing, a property owner may file a written objection with the city clerk to the imposition of a fee for the reason that the property will not benefit from the improvements. The city must make a determination regarding the exclusion of the property in the HIA within 60 days. Within 30 days after that determination is made, a property owner may appeal the city’s decision to the district court. The ordinance may be adopted within six months after the conclusion of the public hearing. If 45 percent or more of the affected residents file an objection, the HIA is not established. Housing Improvement Areas How are the improvements financed? The city may finance the housing improvements by: 1)advancing funds available to the city and then recovering the costs by charging the property owners fees; or 2)issuing bonds and then imposing fees to repay the bonds. The bonds are not included in the city’s net debt and no election is required for their issuance. In addition to adopting the ordinance establishing an HIA, the city must adopt a resolution imposing the fees, and must provide public notice and hold a public hearing on the proposed resolution. Within six months of the conclusion of the public hearing, the city may adopt the resolution. Fees can be imposed on the basis of the tax capacity (value) of the housing unit, total square footage of the housing unit, or a method determined by the city and specified in the resolution. Before a city uses an alternative method to set fees, it must make a finding that the alternative basis is more fair and reasonable. The city, HRA, or EDA may collect the fees in the same manner as provided for the collection of property taxes. The due dates, penalties, and interest applicable to property taxes apply to fees collected under this authority. What plans or reports are required? Before the city imposes and collects the fee, the condominium or townhome association must develop a long-term plan to maintain the complex. The plan must address operations, maintenance, and necessary capital improvements of the common elements. It must identify financing for the projects. The association must also submit its audited financial report to the city annually. Are any other local units of government allowed to establish an HIA? In 2014, the legislature passed a law authorizing the Ramsey County Housing and Redevelopment Authority to exercise housing improvement district powers. This is the same authority granted to the Dakota County Community Development Agency in 2013. Minnesota House Research Department provides nonpartisan legislative, legal, and information services to the Minnesota House of Representatives. This document can be made available in alternative formats. www.house.mn/hrd | 651-296-6753 | 600 State Office Building | St. Paul, MN 55155