03-19-07 agenda
CITY OF RICHFIELD, MINNESOTA
MONDAY, MARCH 19,2007
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD CITY HALL
COUNCIL CHAMBERS
6700 PORTLAND AVENUE
7:00 P.M.
AGENDA
Call to order
Roll call
1. Approval of minutes of Regular HRA Meeting of February 20, 2007
2. HRA approval of agenda
3. Consent Calendar contains several separate items which are acted upon by the HRA in
one motion. Once the Consent Calendar has been approved, the individual items and
recommended actions have also beenapproved. No further HRA action is necessary.
However, any HRA Commissioner may request that an item be removed from the
Consent Calendar and placed on the regular agenda for HRA discussion and action. All
items listed on the Consent Calendar are recommended for approval.
A. Consideration of approval of resolution authorizing issuance of Certificate of
Completion to Greater Metropolitan Housing Corporation for construction of single
family home at 6329-14th Avenue S.R. No.9
Notes:
4. Consideration of denial of reimbursement of $15,800 for "trade fixtures" for property
located at 6500 Cedar Avenue
Staff Report No. 10
Notes:
5. Consideration of agreement with PEER Engineering Inc. for writing of demolition
specifications for 7214 Cedar Avenue
Staff Report No. 11
Notes:
6. Consideration of redemption of 6225-14th Avenue with funds from Foreclosure
Redemption Revolving Fund not to exceed $117,142
Staff Report No. 12
Notes:
7. Executive Director report
8. Claims and payroll
Adjournment
Auxiliary aids for individuals with disabilities are available upon request. Requests
must be made at least 96 hours in advance to the City Clerk at 612-861-9738.
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AGENDA ITEM # 3A
REpORT # 9
~
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
MARCH 19, 2007
REpORT PREPARED By:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
REpORT PRESENTER:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of resolution regarding authorization to issue a Certificate of Completion to
Greater Metropolitan Housing Corporation for the construction of a single family home at 6329
14th Avenue.
I. RECOMMENDED ACTION:
By Motion: Authorize the Chair and Executive Director to execute the
Certificate of Completion in accordance with the attached resolution.
I II. BACKGROUND I
Development Agreements under the New Home Program provide for the issuance
of a Certificate of Completion when residential construction is completed. The
home at 6329 14th Avenue has been completed. Authorization for a Certificate of
Completion is requested.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. The Richfield Housing and Redevelopment Authority (HRA) must
authorize the issuance of Certificate of Completion.
031907 Comp Cert 6329 14th Ave
I B. CRITICAL ISSUES I
. Construction has been completed and the Inspections Department
has issued a Certificate of Occupancy.
. The issuance of a Certificate of Completion is required to release the
builder from the Contract for Private Development after construction
completion.
I C. FINANCIAL I _
. The project is completed and financial obligations have been met.
I D. LEGAL I
. The project is completed and legal obligations have been met.
I IV. ALTERNATIVE RECOMMENDATION(S) I
. Do not issue the Certificate of Completion at this time.
I V. ATTACHMENTS
. Resolution
. Certificate of Completion
I VI. PRlNCIP AL PARTIES EXPECTED AT MEETING
. N/A
jA~1
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING ISSUANCE OF A CERTIFICATE OF COMPLETION FOR
THE NEWLY CONSTRUCTED RESIDENTIAL PROPERTY AT 632914TH AVENUE
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (HRA) entered into contract with Greater Metropolitan Housing
Corporation for the construction of 6329 14th Avenue; and
WHEREAS, the new home is completed.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority in and for the City of Richfield, the Certificate of Completion for 6329 14th
Avenue can be issued.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of March 2007.
Suzanne M. Sandahl, Chairperson
ATTEST:
Donna Drummond, Secretary
031907 Camp Cert 6329 14th Ave
BA--~
FORM OF CERTIFICATE OF COMPLETION
The undersigned hereby certifies that The Greater Metropolitan Housing
Corporation has fully and completely complied with its obligations under Article IV of that
document entitled "Contract for Private Development", between the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota and The Greater
Metropolitan Housing Corporation dated March 20, 2006, filed June 6, 2006 as Document
No. 8806900 with respect to the construction of the approved construction plans at 6329
14th Avenue, legally described as Lot 17, Block 2, Nokomis Gardens Rearrangement of
Blocks 1, 2, 3, 4 and 5 Girard Parkview, and is released and forever discharged from its
obligations to construct under such above-referenced Article.
DATED:
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY RICHFIELD, MN
By
Its Chairperson
By
Its Executive Director
STATE OF MINNESOTA )
)SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this _ day of March,
2007, by the Chairperson of the Housing and Redevelopment
Authority in and for the City of Richfield, a public body corporate and politic under the laws
of the State of Minnesota on behalf of the public body corporate and politic.
Notary Public
STATE OF MINNESOTA )
)SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this _ day of March,
2007, by the Executive Director of the Housing and Redevelopment
Authority in and for the City of Richfield, a public body corporate and politic under the laws
of the State of Minnesota on behalf of the public body corporate and politic.
Notary Public
This instrument was drafted by:
The Housing and Redevelopment Authority
in and for the City of Richfield
6700 Portland Avenue South
Richfield, MN 55423
612-861-9760
AGENDA ITEM # 4
REpORT # 10
.......
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
MARCH 19, 2007
REpORT PREPARED By:
PAT SMITH, COMMUNITY DEVELOPMENT
MANAGER
NAME, TITLE
REpORT PRESENTER:
PAT SMITH, COMMUNITY DEVELOPMENT
MANAGER
ACTING DEPARTMENT DIRECTOR
REVIEW:
NAME, TITLE
REVIEWED BY EXECUTIVE DlRECTO
ITEM FOR BRA CONSIDERATION:
Denial of reimbursement of $15,800 for "trade fixtures" for the property located at 6500 Cedar
Avenue.
I. RECOMMENDED ACTION:
By Motion: Deny the request for reimbursement of $15,800 for "trade
fixtures" for the property located at 6500 Cedar Avenue.
I II. BACKGROUND I
On November 21, 2005 the Housing and Redevelopment Authority (H RA) approved
a resolution authorizing the condemnation of three parcels in the Cedar Point area.
One of these parcels was located at 6500 Cedar Avenue, previously owned by
Glynn Haag.
On April 5,2006 the HRA converted the condemnation to a "quick take" action. On
April 26,2006 the District Court approved the condemnation and appointed
condemnation commissioners to determine a value for the property.
At the Commissioners' hearings Mr. Haag presented an appraisal report prepared
by Robert Lunieski, asserting the value of the Subject Property was $530,000,
assuming the highest and best use of the Subject Property was to demolish the
existing improvements and redevelop the property for another commercial use.
031907 - Haag moveable fixtures
The HRA presented the opinion of Jason Messner, a real estate appraiser who
testified that the value ofthe real estate was $285,000.
On August 8, 2006 the court-appointed Commissioners filed their award in the
amount of $451 ,500 for the Subject Property. On August 21,2006 the HRA
approved the condemnation Commissioners' award. There was no appeal.
On October 5,2006 the HRA and Mr. Haag entered into a Stipulation of Final
Settlement (attached).
Mr. Haag is now requesting $15,800 for moveable trade fixtures. In the attached
letter by Mr. Haag's attorney, Leland Frankman, Mr. Haag contends that he has
never been compensated for fixtures, which were located on the Subject Property
at the time it was acquired by the HRA.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. HRA must make a determination on claims brought before the
Authority.
I B. CRITICAL ISSUES I
. HRA Legal Counsel is recommending denial of Mr. Haag's claim for
the following reasons:
1. Mr. Haag had the opportunity to, but did not, present any claim
to the Commissioners for the fixtures.
2. Mr. Haag's theory of damages for the real estate assumed that
the property should be redeveloped and that the existing
improvements and fixtures would be destroyed; therefore, Mr.
Haag cannot seek compensation for fixtures based on an
inconsistent theory that the fixtures had value.
3. Mr. Haag did not appeal the Commissioners' Award of
Damages within 40 days following Notice of Filing of the
Award, as required by Minn. Stat. 117.
4. Mr. Haag's attorney, on behalf of Mr. Haag, executed a
Receipt of Final payment, dated October 4, 2006, confirming
receipt of the "final amount due" pursuant to the Award of
Damages issued by the Court-Appointed Commissioners.
5. If Mr. Haag had wished to relocate the fixtures, he could have
requested the opportunity to do so. He did not make such a
request.
6. Section 2.05 of the Stipulation of Final Settlement, which was
signed by the HRA and Mr. Haag, states that Mr. Haag waives
any and all claims and causes of action which he may have
against the HRA in the Final Settlement.
. Before condemnation commenced, the HRA had obtained an
appraisal report from Steven Wall in which Mr. Wall had expressed
the opinion that the fixtures had a collective depreciation value in
place for continued use of $15,800. Mr. Wall has expressed to HRA
Legal Counsel that the value of the fixtures in the event of demolition
(i.e. removal and salvage) would be minimal, less than 10% of the
value in place.
I C.FINANCIAL I
. If the HRA denies the request, Mr. Haag has indicated that he may
attempt to reopen the condemnation proceedings to pursue his
fixtures claim. The HRA would incur legal fees in opposing that
attempt.
I D. LEGAL I
. HRA legal counsel recommends the denial of the request.
I IV. ALTERNATNE RECOMMENDATION(S) I
. Do not accept the recommendation and direct staff to reimburse Mr. Haag for
the moveable fixtures.
I V. ATTACHMENTS I
. Letter from Bob Lindall, Kennedy & Graven
. Letter from Leland Frankman
. Stipulation of Final Settlement
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING
. HRA Legal Counsel
Kennedy
..
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
(612) 337-9300 telephone
(612) 337-9310 fax
http://www.kennedy-graven.com
Affirmative Action, Equal Opportunity Employer
'-i-I
C H ART ERE D
ROBEHT J. LlNDALL
Attorney at Law
Direct Dial (612) 337-9219
Real Property Law Specialist
Certitied by Minnesota State Bar Association
March 5, 2007
CONFIDENTIAL ATTORNEY CLIENT PRIVILEGED COMMUNICATION
VIA FAX TO (612) 861-8974 AND U.S. MAIL
Patrick Smith
Community Development Manager
Housing and Redevelopment Authority
for the City of Richfield
6700 Portland Avenue South
Richfield, MN 55423
RE: The Housing and Redevelopment Authority in and for the City of Richfie1d v.
Glynn, R..Haag, et al.
Henl1e:piu'County District Court File No. 05-18464
6500 Cedar Avenue ("Subject Property")
Dear Pat:
Enclosed is a letter dated February 5, 2007 to me from Leland Frankman, attorney
for Glynn Haag, formerly fee owner of the above property ("Subject Property"), and
owner of Magnuson Sod Company, Inc., which formerly occupied the Subject Property.
The letter was submitted to me as a follow up to a telephone call placed to me by
Mr. Frankman.
In his letter, Mr. Frankman asserts Mr. Haag's contention that Mr. Haag had
never been compensated for fixtures which were located on the Subject Property at the
time it was acquired by the HRA. My contention is that Mr. Haag was compensated for
the fixtures in the award of damages issued by the Court Appointed Commissioners for
the Subject Property in this matter.
Before this proceeding was commenced, the HRA had obtained an appraisal
report from Steven Wall in which Mr. Wall had expressed the opinion that the fixtures
listed iIi Exhibit A attached hereto had a collective depreciated value in place for
continued use of $15,800. This value assumed that the highest and best use of the
Subject Property was as improved, for continued useas'a sod sales and distribution
facility.
30734Xv I RJL RC 125-258
Mr. Patrick Smith
March 5, 2007
Page20f3
4~1-
At the Commissioners hearings in this matter, Mr. Haag, as the party with the
burden of proving his claim for damages by the preponderance of the evidence, presented
the testimony and written appraisal report of Robert Lunieski, asserting that the value of
the Subject Property was $530,000, assuming the highest and best use of the Subject
Property was to demolish the existing improvements and redevelop the property for
another commercial use.
Mr. Haag testified that the value of the Subject Property was $697,850 but
presented no evidence of value for the fixtures in the Commissioners hearing. I contend
that this implies that the value of the fixtures was included in the value amount expressed
by Mr. Lunieski and the value an10unt testified to by Mr. Haag at the hearings.
The HRA presented the opinion of Jason Messner, a real estate appraiser who
testified that the value of the real estate was $285,000.
The Commissioners issued an award of damages in the amount of $451,500, on
August 8, 2006. There was no appeal.
On October 5, 2006, the HRA and Mr. Haag entered into a Stipulation of Final
Settlement in which Mr. Haag agreed as follows:
2.05 Subject to performance by HRA in accordance with this Agreement,
Owner (Mr. Haag and his wife and Magnuson Sod Company, Inc.) waives
any and all claims and causes of action which it may have against HRA in
the above-captioned matter.
I recommend that the Board of Commissioners deny the claim of Mr. Haag for
additional damages for the following reasons:
1. Mr. Haag did not present any claim to the commissioners for the fixtures.
2. Any value which the fixtures had if the improvements had continued to be
used would have been destroyed upon demolition of the improvements,
which was the assumption in Mr. Haag's claim of damages. I checked
with StevenWall and he advised me that ifhe had been asked to express
an opinion of the value of the fixtures in the event of demolition (i.e.
removal and salvage) the value would be minimal, less than 10% of the
value in place. If you wish him to do a letter opinion confirming this, the
cost would be about $400.
3. The amount of the Commissioners' award of damages was substantially
larger than the appraised value of Jason Messner who presented the only
appraisal of damages based on continued use of the Subject Property,
implicitly suggesting that the Commissioners value was based upon the
higher amount opined by Mr. LW1ieski, which was based on the value of
the property if the improvements were demolished.
307348vl RJL RC125-258
Mr. Patrick Smith
March 5, 2007
Page 3 of3
L{" 3
4. It would be contrary to law and generally accepted appraisal methodology
for damages to be awarded for the real estate based upon a highest and
best use of redevelopment (i.e.' both demolition of the real estate
improvements and fixtures) and the value of the fixtures based upon a
highest and best use of continued use of the improvements. This would be
contrary to the principle of consistent use.
5. Mr. Haag did not appeal the Commissioners' Award of Damages within
40 days following Notice of Filing of the Award, as required by Minn.
Stat. S 117. Appeals which are not timely filed are barred. If the
Commissioners had also awarded $15,800 for fixtures, I would have
recommended that the BRA appeal the award.
6. Mr. Frankman's associate, Harry Frankman, on behalf ofMr. Haag,
executed a Receipt of Final Payment, dated October 4, 2006, confirming
receipt of the "final amount due" pursuant to the A ward of Damages
issued by the Court-Appointed Commissioners.
7. If Mr. Haag had wished to relocate the fixtures, he could have requested
the opportunity to do so. He didn't make such a request.
8. The claim is barred by the Stipulation of Final Settlement.
I recommend that the Board deny the claim. Please let me know if you have any
questions about this matter.
V7i:iil~
Robert J. LindaU
RJL:crs
Enclosure
cc: Ken Helvey
John Dean
Corrine Thomson
307348vl RJL RC125-258
4-Lf
LELAND J. FRANKMAN
(612) 375-1600
LELAND J. FRANKMAN
_ ATTORNEYS AT LAW_
2000 U.S. BANK PLAZA
220 SOUTH SIXTH STREET
MINNEAPOLIS. MN 55402
(612) 375-1600
FAX (612) 335-3572
EMAIL: UFMNlaw@aol.com
HARRY A. FRANKMAN
DIRECT DIAL (612) 605-1035
ALSO ADMITTED IN FLORIDA
! 1 .._. _ ..~.._.~. ".,.._-.v." ._~_~...~..__,..",,,~ -, "'
February 5, 2007
FEB - 6 2007
Robert J. Lindall, Esq.
Kennedy & Graven
470 US Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
i
.........---"""
Re: HRA of Richfield v. Haag, et al
Court File No. 27 -CV -05-18464
Dear Mr. Lindall:
On August 8, 2006, the court-appointed commiSSIOners filed their award in the amount of
$451,500.00 for the taking of the Magnuson Sod Company located a~ 6500 Cedar A venue,
Richfield, Minnesota. In the original offer given to Magnuson Sod and its owner, Glynn R.
Haag, the City offered the sum of $15,800.00 for "trade fixtures". This amount was based on an
appraisal made by fixture appraiser, Steven J. Wall, but my client has not received anything for
his trade fixtures.
We believe that a mistake has been made in this condemnation matter that should be corrected,
and an additional $15,800.00 should be paid to the landowner for the following reasons:
1. Glynn Haag has indicated that he obtained an impression from individuals he talked to
from the City of Richfield that the items designated as trade fixtures could either be
removed, for which he would obtain relocation expenses, or, if they were abandoned, he
would receive the value of them in the amount of $15,800.00. This opinion is
strengthened by the fact that the fixtures are listed in the back of appraiser' Jason
Messner's appraisal without any amounts set out for the value or any total value put in fof
the amount of the fixtures. In fact, on page I of Messner's appraisal, Mr. Messner states
that "The property appraised includes the real property only (land and buildings), and
excludes furniture, fixtures, equipment, and other items of personal property. . The
immovable trade fixtures were identified and independently appraised by Steven J. Wall,
MAl, ASA, of Steven Wall Appraisal Services, Inc. As such, these items are not
included as part of the real property appraised in this report." It is the custom of
appraisers to list the valuation of the fixtures in the front of their report even if those
fixtures are estimated by a fixture appraiser and add those to the amount of the
appraiser's report as a separate item so that the commissioners can value them in the case.
Because of that, it was entirely reasonable that it appeared to both Glynn Haag and me
y--5
that the issue of "trade fixtures" was not before the commission and would be handled as
a relocation payment. However, you indicate that the fixtures are "real estate" in this
instance.
2. You and I have agreed that no evidence was presented to the commissioners by either
side as to these fixtures or as to the value of these fixtures and the commissioners did not
include in their award any money for these trade fixtures. You and I have also agreed
that the City offered $15,800.00 for those fixtures because they are being acquired by the
City, but that the City now will not pay the $15,800.00 for the fixtures as either real estate
or as relocation benefits. The reason you have given is that the landowner claimed that
the highest and best use of the subject property is for development and that neither the
building nor its contents would add value to the land. However, we submit that in the
market place, any buyer buying the property, even though he was going to raze the
building would have to pay the seller for his building and fixtures.
3. We do not believe that the City should offer $15,800.00 for fixtures that it is acquiring
and now not pay for those items because a mistake was made. We believe that this is
wrong. Therefore, we are asking that Magnuson Sod be paid the $15,800.00 originally
offered to it or that you agree to go back before the three court-appointed commissioners
and present our argument concerning this matter so that a quick decision can be made.
We look for your response within the next ten (10) business days.
an
LJF
cc: Glynn R. Haag
tj--G,
STATE OF MlNNESOTA
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Case Type: Condemnation
COUNTY OF HENNEPIN
S' :J['J7 ,: ,.F(rf~'f::~' ,
DISTRICT COURT
FOURTH JUDICIAL DISTRICT
Court File No. 27 -CV -05-18464
The Housing and Redevelopment Authority in and
for the City of Richfield, a public body corporate
and politic under Minnesota law,
Petitioner,
STIPULATION OF FINAL
SETTLEMENT
vs.
Glynn R Haag, individually and dba Magnuson .
Sod Company; Dianne D. Haag; Franklin National
Bank of Minneapolis; Magnuson Sod Company,
Inc., a Minnesota corporation; Iversons, Inc., a
Minnesota corporation; City of Richfield; County
of Hennepin; all other parties unknown, together
with unknown heirs or devisees and spouses, if
any,
(CCOf1f
Respondents
THIS AGREEMENT is entered into this
day of
, 2006, by and between THE
HOUSING AND REDEVELOPMENT AUfHORITY IN AND FOR THE CITY OF RICHFIELD,
a public body corporate and politic under the laws of Minnesota, located at 6700 Portland Avenue,
Richfield, MN 55423, Petitioner herein ("HRA"), and Respondents Glynn R Haag, i~dividually
and dba Magnuson Sod Company, Dianne D. Haag and Magnuson Sod Company, Inc., a Minnesota
corporation (collectively, "Owner").
I. RECITALS
1.01. The HRA commenced this proceeding to acquire the real estate located at 6500
Cedar Avenue, Richfield, MN 55423, which is legally described on Exhibit A attached hereto and
incorporated herein ("Parcel 4" or "Subject Property").
299072v2 RJL RCI25-258
y/1
'.
.1. .
1.02. The Court entered its Findings of Fact, Conclusions of Law and Order Appoipting
Commissioners with respect to Parcel 4 which was filed in the office of the District Court
Administrator on F ebruaiy 26, 2006.
1.03. The Court entered its Findings of Fact, Conclusions of Law and Order Transferring
Title and Possession of Property ('Quick Take Order") with respect to Parcel 4 which was filed in
the office of the District Court Administrator on April 26, 2006.
1.04 On August 8, 2006 the Court Appointed Commissioners filed their Award of
Commissioners determining the damages caused by the taking of Parcel 4 in the office of the
District Court Administrator in the amount of$451,500, including reimbursement of appraisal fees.
1.05 On August 8, 2006 counsel for the BRA served its Notice of Filing of the Award of
Commissioners upon all parties named herein with respect to Parcel 4 and their counsel, if any, as
required by law.
1.06 The time within which any party may file a notice of appeal from the Award of
Commissioners has passed without any party filing a notice of appeal as provided by law.
1.07. On August 25, 2006, the City deposited $230,855.00 with the District Court
Administrator as its estimate of the damages caused to the owners of Parcel 4 by the lIRA's taking
of Parcel 4 in this matter ("Quick Take Deposit"). The Quick Take Deposit remains on deposit with
the above Court and is accruing interest pursuant to law.
1.08 Parcel 4 is encumbered by a mortgage in favor of Franklin National Bank of
Minneapolis, dba Franklin Bank ("Bank") under which the amount remaining due is $93,903.12
plus interest of$23.48 per day from September 25,2006 to the date of payment.
1.09 On June 30, 2006, the lIRA and Owner entered into a Stipulation of Partial
Settlement under which Owner agreed to vacate Parcel 4 on or before September 30, 2006
notwithstanding any provision of the Quick Take Order to the contrary.
299072'12 RJL RC125-258
2
Y,8
1.10 lIRA could satisfy its obligations under the by law by making direct payment to
Owner of only the amount by which the Award of Commissioners (plus interest) exceeded the
Quick Take Deposit. lfthe HRA were to do so, the Owner would be obliged to make a motion for
withdrawal of the Quick Take Deposit. Owner would prefer to avoid making this motion, if
possible.
1.12 The parties desire to agree upon the arrangements for payment .by BRA of the
remaining amount owed to Bank and Owner and for assignment of the Quick Take Deposit to lIRA.
IT. AGREEMENT
NOW, THEREFORE, in consideration of the premises, their mutual promises and other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto hereby agree as follows:
2.01. Incorporation of Recitals. The foregoing recitals are made a part of this Stipulation.
2.02. Direct Payment of Compensation. HRA and Owners agree that ERA will make a
direct payment of the amount of$451,000, plus interest from August 8, 2006 to the date of payment
at the judgment rate (4%) less the Bank Payment, by c~~ck payable to Glynn R. Haag and Dianne
D. Haag and Leland Frankman, their attorney, within two business days following vacation by
Owners of Parcel 4, as continned by the HRA's Community Development Director, and execution
of this Agreement.
2.03 Assignment of Ouick Take Deposit. Owners hereby assign all their right, title and
ownership of the Quick Take Deposit to lIRA, including accrued interest.
2.04 Payment to Bank. Owner's represent that the indebtedness due to Bank as of the
date hereof pursuant to the mortgage in favor of Bank which encumbered Parcel 4 as of the date of
the filing of the lIRA's condemnation petition in this matter is as described in Section 1.08. lIRA
299072v2 RJL RC125.258
3
y~q
agrees to pay said amount to Bank in consideration for the amount to be paid to Owners being
decreased by that amount ("Bank Payment").
2.05 Subject to performance by BRA in accordance with this Agreement, Owner
waives any and all claims and causes of action which it may have against BRA in the above
captioned matter.
Dated:
() d. L 2006
By:
Leland 1. Frankman
Attorneys for Owners
2000 U.S. Bank Plaza
200. South Sixth Street
Minileapolis, MN 55402
(612) 375-1600
Dated:: /6 r 5-
-J 2006
By: ~// ~
GLYNNR.HAAG ~
By: ~ cl- l ~~tLr
DIANNED. HAAG, wifeofGLYNNR. HAAG
/0-<;'-0'
Dated: : v 2006
-J
10-7
-J 2006
MAGNUSON SOD COMPANY, INC., a
Minnesota corporation
By: ~P/ )
Glynn R. Haag, It's Prestdent
Dated :
299072v2 RJLRC125-258
4
Dated: 1& - / <?~ 2006
Dated: &~ q-, 2006
299072v2 RJL RC125-258
4//0
THE HOUSING AND REDEVELOP:MENT
AUIHORITY IN AND FOR lHE CITY OF
RICHFIELD
KENNEDY & ORA YEN, CHARlERED
By:
Robert 1. LindaU 63 77)
JohnM. LeFevre 01852)
Corrine H. Thomson (149743)
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis,:MN 55402
(612) 337-9300
Attorneys for The Housing and
Redevelopment Authority in and for
the City of Richfield
5
4, l \
....
EXHIBIT A
Parcel No.4 (Abstract Property) (pill No. 26-028-24-14-0057)
Property Address: 6500 Cedar Avenue, Richfield, MN 55423
Legal Description of Subiect Property:
All of Lot 6, and the North 25 feet of Lot 5, Block 1, "Iverson's Third Addition",
according to the recorded plat thereof, and situate in Hennepin County, Minnesota.
Together with abutting streets and alleys, vacated and to be vacated, accruing thereto
upon vacation.
Subject to drainage, utility and street easements as shown and dedicated on the recorded plat.
Subject to easements of record in-favor of City of Richfield, if any.
Description of Takings: The above described property, in fee simple.
A. Interests Berni! Acauired
. Nature of Interest
Fee owner
Inchoate
Mort agee
Tenant
S ecial Assessments and Easements, if any.
Real Estate Taxes
Any right, title or interest in the Subject
Pro ert
299072v2 RJL RC125-258
6
AGENDA ITEM # 5
REpORT # 11
........
STAFF REpORT
RICHFIELD
I
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
MARCH 19, 2007
REpORT PREPARED By:
CHRISTINE COSTELLO, COMMUNITY
DEVELOPMENT SPECIALIST
NAME, TITLE
REpORT PRESENTER:
CHRISTINE COSTELLO, COMMUNITY
DEVELOPMENT SPECIALIST
ACTING DEPARTMENT DIRECTOR
REVIEW:
NAME, TITLE
REVIEWED BY EXECUTIVE DIRECTO
ITEM FOR HRA CONSIDERATION:
Consideration of agreement with PEER Engineering Inc., for the writing of demolition
specifications for 7214 Cedar Avenue.
I. RECOMMENDED ACTION:
By Motion: Approve the attached agreement with PEER Engineering
Inc., for the writing of the demolition specifications for 7214 Cedar
Avenue.
I II. BACKGROUND I
In September 1995 the Richfield Housing and Redevelopment Authority (HRA)
purchased the property at 7214 Cedar Avenue. The property is zoned C-2, General
Commercial. Previously, Richfield Transmission occupied the building but relocated
their business to the 6900 block of Cedar Avenue for more space. The building was
then leased to another tenant, but that use was discontinued in August 2006. The
Department of Public Safety, occupied the open lot area as a "Seized Vehicle
Impound Lot", but discontinued that use in July 2001.
The building was constructed in 1967 and over the years has fallen into disrepair
beyond normal building maintenance (Le., roof leaking and exterior wall
deteriorating). In order to make the property more viable for future redevelopment,
the building should be removed and the lot sodded.
031907 - Demo Spec Approval 7214 Cedar
To begin the process of removing the building requires the writing of demolition
specifications by a qualified engineering firm. Bids for the writing of the demolition
specifications were obtained from three engineering firms (SRF Consulting, Inc.,
Stanley Group, and PEER Engineering, Inc.). The bids ranged from $10,000 to
$4,000. After a review of all of the bids, it was determined that PEER Engineering
Inc. had the lowest bid to write the specifications, at a cost that will not exceed
$4,000.
The writing of the demolition specifications by PEER Engineering Inc. will include:
completion of a pre-hazardous material survey required by the State, the
preparation of any specific requirement for the property, providing pre-bidding
assistance to help in the hiring of qualified contractor(s) for the removal of the
building by the HRA, as well as contractor(s) observation and any required
documentation during site demolition process.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. The HRA has no provision or resolution giving the Executive Director
of the HRA the authorization to approve contracts or agreements of a
certain dollar amount. Therefore, any contract with a dollar amount
must go to the HRA for approval.
. The contract for the actual demolition work will require approval from
the HRA after the writing of the demolition specifications and bidding
process is completed.
I B. CRITICAL ISSUES I
. . Approval of the writing of the demolition specifications is required in
order for the HRA to proceed with the removal of the building at 7214
Cedar Avenue.
. Estimated cost of demolition should be around $20,000.
I C. FINANCIAL I
. The HRA has the funds to proceed with the writing of the demolition
specifications and eventual removal of the building.
I D. LEGAL I
. The HRA attorney has reviewed the staff report and the attached
agreement.
I IV. ALTERNATIVE RECOMMENDATION(S)
. Amend the attached agreement.
. Deny the approval of the attached agreement.
I V. ATTACHMENTS
. Agreement
. Map of 7214 Cedar Avenue
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING
. N/A
5--1
Peer Engineering. Inc.
1'6.15 Golden Triangle Dr" Suite N
Etien Prairie. MN 55344
(952) 8313341 Fax (952) 831-4552
.:.~
integrated Environmental Soiution:5
Mr. Dave Conrads
City of Richiield Public Works
6700 Portland Avenue
Richfield, MN 55423-2599
February 12,2007
RE: Proposal for Consulting Services
Hazardous Materials Surveys and Demolition Specifications
7214 Cedar Avenue
Richiield, Minnesota
Dear Mr. Conrads:
Peer Engineerin& Inc. (peer) has prepared this proposal for engineering services related
to the demolition of structure located at 7214 Cedar Avenue in Richfield. The services
to be provided by Peer include completion of a pre-demolition hazardous materials
survey for the structure located on the property, preparation of a demolition
specification addressing the property, providing bidding-related assistance to facilitate
the hiring of a qualified demolition contractor by the City of Richfield, and contractor
observations and documentation during site demolition.
The following outlines the anticipated scope of services, cost estimate and terms of
service.
Scope of Services
Task I - Pre-Demolition Hazardous Materials Surveys
A pre-demolition hazardous materials survey will be completed at the property
building. The purpose of the proposed work is to identify regulated asbestos
containing materials (ACM), lead-based paint (LBP) and other hazardous materials
associated with the building that will require abatement or removal prior to demolition.
The work will be performed in accordance with generally recognized industry
standards and applicable Minnesota Department of Health (MDH) and Minnesota
Pollution Control Agency (MPCA) requirements, where applicable.
Affirmative Action, Equal Opportunity Employer
5-~
Mr. Dave Conrads
City of Richfield
Page 2
February 12, 2007
The asbestos-related work will include a walk-through reconnaissance of the structure
to identify suspect ACM. The suspect ACM will be inventoried and sampled for
laboratory analysis. For purposes of this proposal, we have assumed that up to 20
samples will be collected for asbestos analysis from the building. We will employ
destructive survey methods to ensure that all ACM is identified prior to demolition as
required by MDH guidelines.
The work related to hazardous building materials component will include observations
to identify building components that typically contain hazardous substances. Typical
items addressed during hazardous materials inventories include fluorescent light bulbs
and ballasts, mercury-containing switches and thermostats, lead paint, PCB-containing
electrical equipment, and chemicals stored in tanks, drums or smaller containers.
Preliminary testing of delaminated painted for lead will also be completed using an x-
ray fluorescence (XRF) lead analyzer.
The results of the Pre-Demolition Hazardous Materials Surveys will be summarized
in a report. The report will identify the type, location and estimated quantities of
identified ACM and hazardous materials that require removal prior to demolition or
special handling during demolition.
Task II - Demolition Specifications
Peer will prepare technical specifications for the demolition of structure and selected
improvements located on the property. The specifications document will include
relevant building demolition requirements including utility disconnects, pre-demolition
removal of asbestos/hazardous materials, removing exterior improvements (e.g.,
parking lots), and final grading/seeding. We will incorporate the City's standard up
front contracting requirements into the specifications document, as appropriate.
The specifications will be submitted to the City of Richfield in draft form for review
prior to being finalized. An engineer' 5 estimate for the project will also be prepared.
5/3
Mr. Dave Conrads
City of Richfield
Page 3
Task III - Proiect Bidding Support
February 12, 2007
Peer will assist the City of Richfield with the public bidding of the demolition work as
set forth in the specifications. This work will include scheduling and attending a pre-
bid meeting with prospective bidders, preparing an addendum to the specifications
based bidder questions (if necessary), review of contractor bids, and providing
recommendations regarding the lowest responsive bid.
Task IV - Observations and Documentation
Peer will provide personnel to conduct contractor observations and documentation
during site demolition. Site visits will be ma9.e at key project intervals including:
following hazardous materials abatement- during demolition, and upon completion of
demolition (up to three total site visits). In addition, Peer will prepare a letter report
documenting the hazardous materials abatement and demolition activities completed at
the property.
Cost Estimate
The following presents Peer's not-to-exceed Cost Estimate to complete the anticipated
scope of services: -
Description
Task I - Pre-Demolition Surveys
Task II - Demolition Specifications
Task III - Project Bidding Support
Task IV - ObserVations and Documentation
Estimated Project Total:
Terms of Service
$1,200
$1,600
$400
$800
$4,000
Work will be provided and invoiced in accordance with the attached Agreement of
General Conditions and Schedule of Charges and Equipment Rates. Payment for
services is net 30 days with interest added to unpaid balances.
This proposal is being furnished in duplicate. Please sign one copy of the proposal and
return it to us as an authorization to proceed.
5-~
Mr. Dave Conrads
City of Richfield
Page 4
February 12, 2007
vVe appreciate the opportunity to be of service. If you have any questions, please do not
hesitate to contact us at your earliest convenience.
Sincerely,
Peer Engineering, Inc.
~4:L
Kenneth A. Larsen, P.E., P.G.
Vice President
Attachments
The undersigned authorizes Peer Engineering, Inc. to proceed in accordance with the
above stated terms and assumes responsibility for payment.
Date
Client' 5 Name
Authorized Signature
Title
JAN-18-2007 15:00 From:PEER ENGINEERING
9528314552
5-5
Peer Englneeri ng, Inc.
Sehedule of Charges
JaDuary Z007
PROFESSTONATJ SF.RVJCES
Clerical I
Clerical II
Clerical III
Techniciau I
Technician U
Technician ill
Associate Professional T
Associate Professional II
A~uciate ProfessionalllI
Professional I
PIofl;;ssiunal II
Professional III
Senior Professional T
Scni"T Prolessi<.lual II
Senior. Professional III
Supervising Pr()It:~sional I
Supervising Professional II
Supervising Prolessional TIT
Principal
Services Assisting Litigation
EXPENSES
Subcontract services
Expenses
UNIT CHARGES (EQUIPMENT, SUPPLIES AND TRAVEL)
Per Schedule (see other side or attached proposal)
(l) quoted on a per project basis.
To:6128619181
PER HOUR
$40.00
$45.00
$50.00
$50.00
$55.00
$60.00
$50.00
$55.00
$60.00
$6().OO
$65.00
$75.00
$80.00
$85.00
$95.00
$100.00
$105.00
$115.00
$140.00
(1)
RATE
Cost + 15%
(;usl + 15%
P.5/1l
JriN-18-2007 15:00 From:PEER ENGINEERING
9528314552
To:6128619181
5/(P
Peer .Engineering, Inc.
l1nit Char~e Schedule (Equipment, Supplies and Trovel)
January 2007
l'f,I!:.~l
Equipmcllt
Air Sampling Pump
COO'-Tete Coring Machine
. Dissolved Ox.ygen Meter
Confined Space Entry Bquipment
Filter, Vacuum Unit
, (1CTlcmlur
<1PS MApper
Hand Auger
I...BL Meter
Metal Detecwr .
Multi-Gas Monitor (OiT .EUH2S/CO)
Photoioni7.atiol1 J"Jetector (pm)
'Portable Computer
Product Pl't)bc
Pump, Gnmdtos Submersible
Pump, Purge
Radios, Two-WltY (pair)
Sampling Equipment, Ground Wllter
Sensidyne Pump
Slug Test Kit
Surwy Equipmenl
Van, Pickup
Water Levelll1dicator
XRf' Analyzer
RATlt
$75/day
$125/day
$35/day
$SO/day
$16/day
$40/day
$IOO/day
$20/day
$30/day
$3S/day
$90/day
$90/day
$4O/day
$50/u<lY
$70/day
~5/day
$25/day
$45/day
SIO/day
$SO/cach
$SO/day
S40fday
$lO/day
S2S0/day
Supplie.,
BaUer, Disposable Polyethylene
l3ioaclivily Tests
Ice
Padlock
PPF., Level C (per pcr::\on)
PPE, Modified Level D (per pernon)
Radon Canister
Soil Sampling Supplies (unit,... 70 gloves, 3$ bags)
S12/each
$S/cach
$21each
$15!1;lach
$60/day
.$4U/day
$13.s0/each
$lS/unil
OffICe
, Photocopies
Plan Sheets
$O,20/pa~Q
$3/4;lach
Travel
Per Diem (excluding lod~ing)
Lodging
Vehicle Mill:uge:
$.3 S/duy
Cll~L + 15%
$O.55/mile
Peer reserves the right to periodically add equipment or modifY these unit charges.
P.7"11
JRN-18-2007 15:01 From:PEER ENGINEERING
9528314552
10:6128619181
p.a"ll
5//
1J1/03 Rev.
Peer Engineering, I nc..
SECTION I, ~EkVI(:J<:.." ANIJ f,,:OMllJl:NSAl'ION.
AGREEMENT 0[1' (TENI1:I{AI, CONDITIONS
l.J Th~ p4r1iCli' '~ :"'"l(~d" ,,,..,,,j~4~ ~lf P~~R'H pl\lpo~1II III
whil:h Ihil; Al\ll:cnlolnl cI G.l"~I':\1 (:ulldiliUIl~ 16 111111("",,-"1. lhi~
A;peelllllnl o( (icncrnl COlllliliOlIl;, <In)' cnnlinrlJlllln or
(\lIl~Uliun lIIIdInr .lChcclnl.; (,f ~harj,'l:.S i1lll1Ched Il1I'HI~K'.\
IJl'llpllSlll, rind 1lI1)' wrincn IlUpplemenlx lherckl :lp.n::M tll lIy tit"
p:lni~ iUltlll;.!iUl'd oy I'tiHR. ThCllC d()!.;Ullllnl;; af'C! (;ullllcrively
r.;fcrl\llllv u the: I:IlIIlr:u dlll~lllT.nl.~ ..lid if any Ienllh) IIf lII1Y
~ontl'llCI dOl:unllllll Ilonflic:tlI nr i.~ incnfl~i~IMr willi "IIY lenl~6)
(If' It.is Aa,l\:U1~n\ uf ('.cMI"ll1 (:nnditjm~, 1M I~I~"M uf Ibill
Agr('.cn'V;nl c{ CieJIt:ral Clllldlrlllm sh.111 8ovr.rn WId CO,~1tI1.
1.2 P....... F.a'lli'~II~, blll. (I'~v.a~ will provide Cl.IIlNT lhe
5Cl'Vlccs Ilud DllI':UlIlIlnlnlllln 'f'l~,;tirJl in the ('.onll\tCt (refetml
10 n~ Ill; "Scrllim") in iICcnnlancc \\Illll th<~ en"" "':I'~ It:I'lIlS,
S.:rvieci not sP\o'CilicIUy c:nul1lCIl1lCd in WJ'i'i,,~ ill 1I~
(:O/ltruct Ire not included in the ICIIpll nt' Pl'itiR's ~'~k:\lll U1aJ
arc: nCM I'MtiR'~ rIl(pM~blllly llool'r lhi~ CIl/lIrllct. PEER will
ptovidc JlCI"YI<:cll kl C:I.IRNT .... 1m illdelll:fJdmt wnll1ll:11lT uncI
801M IIIe CLI~1'lIll111pl~.t', 118MI, r.~11 hl~'. uc'juiut VWllun:r.
I l b, uJdilivl1 IV lhi: ScrviCl;5, PEER will Jlnwidc: ~1lL1l,
"^,ld;liUl~ll SwvI~L'~" u.~ lIl\l rcque~lcd by CUI3N'I', "r which
le~ull fnllll 'W lire dill! III in~reMr~$t in lhli JC(.vpe nt' 1l1e
~rvi~cs or tu dc:lilY(s) G.II~ fly n .'''NT 'I mlY Ihin! puny.
I'I::i~H will ptO<<cd wilh .~II~h A&litionl1l ~rvi<;",~ U~"'l
l'UENr s orlll lluthori;(ljlion.
t .4 If while 1..~l1hnni/lg lice ServiCl:li Wly "Humrdclu.\ Sllbslllll(:~S"
an: di~llld C'Il etWRI,"~I""" whiuh p<l!Illllllllnlieipntl;rl ri,~
ot 00SIli. il is asr-t tlllll th~ $\.'vllt uf SllniCl:K, ti/fl: ~chl:dllll!
Ilud lice e:ililllillc:d CIlIItrilL'1 COlliS Mlnlllw I1XllIUiwc::n:d iIIId rhal
thil; ('(llIh\\1,"\ limy. It I'Ii.HJf~ c1pIi(ll1. 00 rc.Jl\ljlUlillled ur
lCllIlinahlll. I( 11111 Cnnlnlr.l l~ 1;(\ l\'I'minnlCd. P!ll!R shall he
pOlio lOr iu IUllII chlIrllC~ fr.- ilS SolI vii"", mill AdJilKlIIal
Sc;l'\Iiees pafonllGd IIlIl cxrx:nl.C:.\ ill<~lIIl'1,,1 l~' HII:' dUll: vi
JcnniJlJllinn plus PECR's _,nablo ~Rlilll:lti(jU Will
Uc:l/Inh1l17.1rloo ~n.(15 and o!Jl~INC.~.
1.5 Fur 1M pnrpn._ r,l' ll~ C\Wllrucl. IllI.' l~,"n "H~7N(k\w
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urdlnRnm!, n:/.!III~lion. rule. ender, or IUl)' ,iullit.:iul Ilr
i11lmini~raIlVl~ I'k!lmlllillUliulI, judJ:lIlCn. t1r decree. illcluc.li"ll
without IimilmiOll: Ih.. t~llIpn:lK'nKlve I:'JlVII\'lI11l1<:lIlal
Rl;6j)Oll~ CutIl\ll::U:\lIlillll llnd llnhility ^<;\ uf 19\\0. iL'i
nmenc1c:.:1 fblrwfler "CHKCI.A"ji iI"l R_'llI\'\j C\NII;I.'r'YIUi'lII
IInd RccoVC'J')' A\;\ of 1910, a.~ amcnc1t.l1 f/lI!II,,,n"J I<CKAJ: ifill
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IUllI::lIlbllllntK lCllIo,id Il1w~, "'1111 ~Il pi~. PJ~,'Gllllr I'ulun: Slale
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w1lich i. U~Il'CJ III lilt: US ~patllllCnl of Tr<lll~pMlIlinn
Hi.wduu., Mali:rinbl Table r49 erR Sec. 172.I()Ij: IUILI (1:)
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loeaI J,"lIY1ll1Imeat, al:Ql\:Y, aulhlll'ity III' Ullil.
I II If t'li~ IN dclll)'ed :11 nn)' timll in ilJi JlllI'f<<maro:c. ()( 1l111~1
J~r(urUl in WI IIIcRicic:nl malllu:r dU\' III an lICl. delA)' Ill' failure
tu ~ Ilf U.IIi.N'I', CI ,1J.l.NT'l n&etu>> or lIDY !hird party. (11' by
nil)' Olhllt' circunu.t:Jncc heyoo\c" f,JRF.R't: dilWl IIlUI rua.'WlIIahlc
conlrQ\. then Ihe lin~ tnI' PllI'\R'~ ,:nm(lI~liull of ils S<lrvil.'llq
~hnll be: tIIl\Ollllllkully c:xtcn&:d ba.lOO Ul!U1I Ihe: Ilumlllln
nile! illl~~l\;1 1)( _oft IlUI.'h cWllly IIn" PEER lIiutU he cntitk:d h~
~c1/1ll1l'K''''' I:lJlllpeIlSilllon.
1. 7 CUJ::NT shall ~ for Ihe ScrvicCII lI.' ~ fnrth i.. II", CVJltr,"-,1
mu.! lmy cslinlll1C nr ~mC'l1C1II 0( pnlNblc ~ nlftd.l I"
Cr.IlSN"hil.w1 /lVI be: !:lindine OIl PCt!R ulllc.ljJ; PEBR 1m
wntinlll:d IblU II:lmc i~ n 'n~'lo-...-Il_'<i C(~~I" in wrili/lil, In
addilion. CUliNT N1nlll~'Y r~... all AIllIltlunW Scrvic~ III the
mtc:(s) spclc!ne:d In the ("'.l'IlIlmtt, (:L.I~T 1Il,.'=\ rhot PP.P.R
m'ly int-"I'C,1iIC its billing ral\:.'llft~ on llaI.illllllualllRDlvm;:ny Of
Ihi~ n '''''''~1.
1.8 PI'.I5R s)IAU ililiUll llM"llhly InYnlllC'\ for lIS Servic~ iIIlCi any
Additionlll Sm-iCiCIIln CI U..N'l' tJlll.I \\i\dl lllYui~e i.'\ [lIl)'lIbk: in
filII wilhin:10 <bY" nt. iAAI~'Il':r.. l11Vl~CI:'Ii nul plIl1l in jiJlI when
clllC Shlllllll.'l.11.Ic: inlerc:.'Il OIl aU unpakJ balwll~' hum lhtl 'i I.u
clny rollowinll ilil;\lllllCC nt tIlC rnle IIf 1-1/2 percent pcr 11".1111,
... II.... IIQt,uIIlUlII n11~ allawccl by b, whi\:hllYl:J' I., 111M. III
nddi lilln IIJ :111 ul ils IJlhcr rcll1Cdjcs. jf eUEN'J' r;Ji~ '0 pey any
luyuiu: 111 lull wilhln 'In dlIys ';lfiL'l i.'iSUancc, lit it$ JOIc: opI1un
[>~r.R muy 11cr.11I~ lhj.~ (l".Ir.1\:1 ill ueluull unci tcrminate; nil oi
ils dUlieo hc:n:llndcr wil'''~ll/ "abiljly lu 1....UI:;NT or Q1h,~.
lof'l
JAN-1B-2007 15:01 From: PE;;.E;;.~ E;;.N(:i.l.Nl:.I::KLN(:!
llpon .\u..11 1I'ollliIlHI;',1II. CLIeNT shull immcdimcly pay
PHF.R r..... ,,11 &. vi....~. all\! MUiLionul Sl.n' icc~ thell rcndcl'l:d.
plll& PEER's llllllil"lahlllllll'llllnlllilm myl rlmnnbi1i?fttioll C.('Ijj&
and tlXpen=.
SECTION l. GF.NEAAL lU'.SfONSIBII.ITIE.<l.
2.1 l'1lliK willlesl !Illmplc~ $lIbll1itl~ by CUUNT. Ill' will aIltaln
.Illll 11:.0;1 liWIIflk:~ 4., lIJ'Wd IIplXl by the panic;;. C/./F.lNT
acknllwk.~If,l~~ nnd /Ign;>.U thnt (11 PEER will nClI ~Impl~ C<lCh
incmmenl of the a!~ or uhjL'li1 It) hi; tested; (2) tbe I'I1sullA or
such lC.\llnS will hwll,~l~ lilt< itclUuJ conditions llol)! nf tl\o.II:
Ipc:dnc: inc~n;nts which o.uc u\;lually ,"jllllplul linlll whir.h
PEER ClIII make ""ain InfClll~ llI1d Ihal. (:l) hc:1."'lI,"~
pU..Vc UllIIcriaII, 'OlIL t>uiIIia.; ~ 4lNi ~ .are
;~ 'lln1Ile-. ~. lIII\'l ~ 'in 1IlIIUIC.
Pl!ER ""not and dl'lCl< "'~ li\,,,....,..l<<-. "'ilm."l ,,, R:pre,",nl in
any l~ lhat ill pmccdll~~ ~nlll~MI" will vr,..'\lul~ NsullS or
in~l which am 1IC11J1IUy ICp~r.atlVl!l of lllll t!1~jJlllRlIIll'
llhjc:r.r ti'(m wIIidllbe iMR.'lOOlllul !IlImp~(s) was ttll;en
Z.2 Pf.I5R .11:111 nul be ICSptll\.~i blc tOr tile pctlOnIWlCe of lII1)'
activity Ill" ubli,L,'1lilll'l llIhr.r rb.,n tile COI1t1'tlctuwly spc:cifJCd
S<<vi_ ArXl I'HIiR'A j'lCIf'lfllll""'" sl",t1llul be ~'(J(I.1IUXl as
n:lieVina CLmNT ~1I' aIIj1 thillt (I.,l1y or IlMlit '~I~ibililillli.
I'''",N ...,11 haw no re.~pom;ihiJity tor. l'1l' lllly li<llJilily
pcMinillf, 1',: (I) II~ ~up.-riI1lMdinll- sUpLTVisinl. or din:clinv
tlf the wnrk...f AllY illd'1"lIMhIlL t'.unlrw:ll>r. agc:nr or employ"
or C'J.,lIiNT Cf nny UlinJ llW1y: or (2) thl~ r~lllS Of
C~lCllil:quenCQ\ of wor\r. p<<fonned hy 3"~ su,~h Il\d"'po'I"~1I1
CUl\lnWIlll',lItlent or cmplo)'\.'Il ofCLJ[lN"I' or any thirtll""ly; I...
(3) uny clllllns IIr alk:g:lIiOllS or riiV1ts by any perM)n or pM)'
ulhcr than <<:I JHNT rel:uln. 10 ally Scrvk'C~. JlncnmcnlAtiOfl
or reIl"CM"13t;"II~ V((..i.JN vr Illade by 1'r.I'!R: Qr (4) fot
UWI'<lU jm ~te Aar,~ly M II~ 1l.ll.':IIiuII whlt'h i~ the ~1I\)j~1 of
lhl~ Conlract (~n:lIltcl' Ul~ "Sit!!");
2.:1 Ntllhine illlhj. C.usllrolCl slllIll be gl)fl~I/Ilcd ns ~qllirin, PEER
10 become, 3SSUJlle UIl! ~1"'uM tlf. I r lneur lh~ liabilities of an:
Ownl;r. Op;n\lor. GenlS"tll<lr. Smrr.r, 'rll'l"~, HIllIkf'.
OispmIll Flleilily. AnlllllF. RcAfwlnsihlc "'~I':'oI'lII \If iVIY
siITlillll' dcRiJnation wilhin Ille r.cClpO of ',(:5R.CLt\". "RCl{A"
Ill' :11\)' 111111:1' lledefal, Stale or locul "'alure. lalll. ordi~ rule:
or rcr.lllati....1l 1~l\iIl...Jinll the hWKlIin~, 1TQ1111l1.1ll. $IOl'llll\l or
di~l tit' .'HII~IUlJ\.IUM Suh:l\lIIII:I:" IS defined h~l'I1in. All
"H.'IZ:Irdous Sul,~lllIlL'1!J<" llIICIMlntt,"'II:II the Site oflllll /Ilmwn
tlic:nt's property and 1'1l1~R .~h.~lI n\:\jll;lt'l OIboolultlly Ill]
<>wncr.ohip in sanlll. Shtlllkl Clilml .1c:r.ill1 111 diN~ ur WI)'
"HIVJIRtnl\~ Sllb51"lnu~" ('lit'lll shall BI'rll1lr.C rClr will bllw
MilCh nutcrlnl\ lutllOjJUl1tllln II finul diR~'1 facility .wIec.:lllcl
by C:liClllIL~jll~ It lIulllir<.'l;1 .o;if:lR.'d by (:lIcnl:1$ rho; "v.:nlll'illlll'''
nnd "ArrllllW:r".
':Joct:!.;.l<tO:J>:::
lo:bl>:::t:lbl'::llt:ll
1-'. ':V 11.
5"~
lJ 1I1l3 Rev,
2.4 l'IillR will Ilo~' respunsible fur 1ll1luinin(ot ooIy lhoS<:
. iovc:mJ\\:nlallll!llllib.. anM11V1l!l; :nl 1I11Ihcm7.,tiQl1S which are
,pcI.,fied in Ihll ~CllJ'lO of ,'lr.rviCI1R (Ir tlte a.lIU'iIL1. While
I'IlER will lIlIC It It l'e:'lUln.,hk\ \~ffl)l1~ It) Ilbl.ill _ullh .p.'Q\tio:d
pcnlliL\ arIll approvllls In II Ihndy IlllllUltU. ""hK MI~~II nl~ ~
Iillblll r~lI' uny cklDy~. <klllla&e$ ilmlfoc impill:l~ n:.'i\lltinr.. from
allY ll\lwmllKlnl1ll ur third pMy c1clay.~ III' lIl:li'1RH.
lS lJnlc..~ athcrwiM: '~lpl\'ti~ly "ll~.u by the I'lIl1lc~ In a wrlllne
cxr.CUI..... hy bl'tb Pwtil:>>. CLlto:NT nnrl I'EER iIi.'I'ee: lhal
PHliR', perform4111:ll \It il~ Sllrvjglln and IlXcl'l!i~ nf Irs care
and !Ilclllls ",ole))' nnd llxcluHively far the ~clit .,r CI ,IF-NT.
IInlL no p.:r.cllR Qr P"l'IY Othlll'lW CLII.lNT /;!Iall be (';I1lil"~d
It.J my I.IpaD MY l)pr-\W3C;t~.. -IP""'-"~ ~
~l_ IIr ~r.e ~ or peIfoclnnc:4 b)' Pl:Ir.'R or upon
any rallure "y PJ;P.R I.' "l(tk~ iUIY n:oprel;c.nlaunn or RrOIClI\Cnl
or provide Iny SCfYi~~l; ,UI.J IJwl t'J:;J:;R mukes nQ
I'Cpl'C~.ftIIlLion~. warrllnties OJ' pa'ojlli_ to 1I11Y ptlmKlllr f'IIrty
(llll>!.,' 1111111 CLIENT.
SE(,'TION~" CI,l~:N'I' 1I11,sI'ONSlBlLn'IEIt
:l.1 WCNT shall ndvlf4: PRRR ur ;111 t!Ul:Urul::nl~ IIIId intQrmalion
Mown to CLlf:NT re,~rdin& cxistilll: WIU 1X1l1lRlI Clll1IUlinn.\
nf Ihe Sile lIIId dIall pmmpll)' notify PriER of Iny nc:w
Inl'nrmnriflfl CLl~NT ~"lllnes aWlI'/l of wllich I\IlIleriully
dif'ti:rs frm, lhr:. infurlllUlJOIl prcyjOlL~Iy provided. cJ.J[!N.r
~knowlcd8lla LIIiII PSF.I{ will rnly llpen tile ClCClll'ICy of svc:h
inflll'l\'llllion withwl independent ycrifh~llljl)lI i'l plunni/l~ anu
pcnurminc thc Sl.iviClllI und PRfI.R ~h.,II bt! enlilled IU
~IlIllJll~nSlllinn for all elltrll wtll'k and AddiliolW Slllyi!;ll/i
C.1lvJtl:d hy (N' .-:o~uhil1l1 fl\llll lht: flIl1urc of lhll inromllllinll
prnvldc:rt I,~ :M;L'ur.llely .rSl..'lihc: Ihe Site ..ondililtn~.
(:L1~NT sball :WYll, indclImHy, ddi'J1c1 and hold biltlnle.'l.~
I'I:iIiR. anti i t~ ~m~eJll. din:c:tn~. fthOlI'Ch"J("'r.. l!1I1p1U)<<'li
:tilt! i11.!l'1I1s. lOr atl claims, damapM. ~ ~lId t~I"I...:1
':Xflllll""'~ (im;ludinll. wilhout limitmion. rCiIlIlIIIahlc attOrney
~s. diabll"~IlIlR:Jlls. cllp.:n wilness foes. IUId 1111 mv~ or
COlIn a.Il<llitiplian) in ~ny 1I\'~III..ruri~ill' (MU or rcrt~ining
to MER', inlcrft:n:nc:c with ..n' IIIIIIIUI\I: lu ~ubll:l'Tllneln
~trIlCllll'C.S, pjpe.,. Iilnb Ind IIlililiC$ tLiIt '" nlll lIl:l:ur:aIl:I~
,lj",lusw<l by 1I1~ inr'lI'm41lqn fumi,hlld Iu Pnl.lR.
:1.2 With Itw! exCtpliOl1 uf I~ spccilitll.! ~~ I"l,HW.'
rr..<flOIl~lhjlily III l.hr:. Score (If ScrvieC$, CLIIlNT ,hail till"K:ly
obtnin 110 I~II'Y \XnlUI.'l, govtmrncm.\1 app'nvals. .~od
ncc~~ ~1lX111111111; III ullllw PkHH find its ni-cnlS OOCc~~ I'> the
Sile and Iny builditlir(5) lhereon. r:r .IRNT 1'/o$\lIIlOai 11I1 k~,,~
unll dllmlp. inciul.6nll il.'l IlWn and PF.F.R ',~ lrllp<ICl t'USl~ and
dlllllllgcS, Mulling from CJ..II::N"f's illllbilily In l"Nain ~lIIl: in
U blll"l)' 1I111Il1ll.". If CLIENT wi..hc.os I'HFR to Il"Sj~1 il ill
20f'l
JAN-18-2007 15:B2 From:PEER ENGINEERING
oblaininll ~u~h additional penniv;, flprnwal~ 1lI.I.IIIiI
ne:r,~enll.\nlS, I"E13R will <k):It) Il.~ an AddilinMI Service.
~, Whilo: f1:;t:K will lUI;c l'\:usonllhlc precaullons IOlllinillli:a:
dalll~ CUt':.N'l' 1'1~U" lblll damage may occur \0 llle Sil1:.
buiklin~ Ill" Mn\pled ""1l11rillL' ,I",ill~ II"" "'-"'Iwl ,'wr.<e ul'lhc
, SllrVice., and rh.,t nil re,~ulti neo dalll('l.It.'i ;".J lillbililit'li 'rUIII
~u~h dilnaltl= ,'iball be the rcspoc~~lbillty or CUr-NT, AI
CLIENr~ lllCIlICIII, 1'F.r::1~ will ~d such diu11lljl:CIi a~ an
ACditi<lM1 ~rvicc.
:1.4 AIIIU'i/ hllmplJ:~ :un ann ~naJl remoin lhe IJ'upa1YIlt' CUf!NT
and in nn even. rJ1nll PF.,I?R I_II'" lille II' HWIK:, All
reuwning Nlmpb rJllIlI ~ dili"ll<MI,llJf ill ~Ill\~ WlIh
appliCllbIt: law, unll:)\,~ (:I.leNT rcqUCSlJ) hi' wl'i lilllllhal I'HliK
~l'-'l: lbelll QI\ CLlt::NT'1 hc:hl1lf, If I'fl!R NUCijlI1:C.'. CUtiN1'
"- .hall pily .....=1< ill; CI",t~ p19' IS p<o:rc.:rll ll1; ill1 Ad,lirkmal
Set viell.
SI!:l.....ION 4. DOaJMENTA'r'ON.
4.1 AN pmt III" its &rvi~~J:, Pl!fR willlJ'Ovidc, CLlHN'r wlrh lWO
oopie.. !It' PF.F.R'A "'ii\~11 I':I"'-'IU whi~h ~hWl IX1lIlllin Itl~
Tel<Illt~ nnd tl1hll( ilr.,ll. "f_lIWir;~ illllw lAAlJIIllll' Scrvi"~ of the:
Cllllll1lCt.
4 Z TIlt' CUtiNT lIf.lk/lllWk:clgllll tl1nt ~ n:plll1H, will, plan~.
s~cilkalit)fili. ~re!;r...nlldinn", "nrTt'_.poodence ill\4 all ,1th4lr
docuUlCnlli pn:piIRd by I'l\HK aR );0" .;II" jl~ St1'vi~ lIIKIAIr
Addiliunul ScrviI:Cll under thi,' nmlo'I,,;1 I ~vlko;ti vriy lI:'k:m11
to as "DllCUDlCntatilm'" 31'0 inatl'UlIlCIllt. ur :;tIrvil:ll. U.IENT
1ll;'.!r.(!A tfl !lave. deC~. inlk:mnlt')r lInd bold rI!l3R i111d its
nfti,cr:\, di(~:..;Ul>, .:iI.amIU~'T1i, cll\ploycc~ linG 3l:C111lI
hllnnlCAA I'm," [u,,1 :~Iirl~ I,ll c!WlIl/;, \Jll1TIlISC~. ~lll:S nlld
rclall:d CXPCllloci. (illdudillj\. wilhuul linlillllilln, nil r(,.uo/)''IbJe
UHlllDcy 'ec:~, diabul'SClIlCllli, C1\1XlI1 wlmll.~~ fee<; m11l11 "~"I"
...i" IlUIJrt WId lifisnri(lll) in UII)' lIlanllCr ari.'lins 'rM\ ,'It
pertaillill~ Ill: (a) Iny re-1I111~ nf llle nocUlllClltaliun willlllull~
prier wtiUl:Il autnlTl7.:ltlnn ot' I'a-:nl~ Ill, (\I) dilimM by IIn)'
third parly ...ther than C:I.IF.NT II). WIU.llIl Cl.la:;NT
o1i~ribllted cr llnwidoro any nf the: D<x::UlllllulaliulI. ~illllll'
lll~lly, rhroUah 1I11 lll:CIl1. (lr h)' rc:qucslilll! tllat PeEK
rll'Cwi,lo: il III 11'0: thin! parly. wirhont the; priol' wrincn
Jlulhnri7.1tinn M I"Rlil(
4.3 .f CIJeNT doos lKll Ihncly P,1Y PR"R'~ IaIYUK"'(S) ill full,
(1)ElNT s!l/lU IIlIIlfll 111 PI'lHK ;111 J)f':1I1\"~,Il"li(ll, r uUli:>lJCU by
"Wit 10 CLIENT \)I' C1.1ENn Jgcn~. includillll AlL C~.)~
nnd 1'C(JnllllluiI.HIS or 51111ll!. lIJld no 1"111 of the DocurllUJlllIliol\
,~nl1 be w;.'.(11Jy CLll:t"T. it u~lIlli. IIr ~ny thi rd party flS iUly
rulJlO" wha1601:VCf, Wilhuul lill,illlll.~ I"~I'.H'.~ I~hcr l\'med;C$,
C,:1.,If.!NT shall Ix: .ubj<<lln Iht IllIiclllnili~rlliulI ...l~~ati,-,u; uf
9528314552
10: bld:Jbl '::Ill::ll
t-',1tVll
5/q
1I11U3 Rev.
Sc.~lkln 4.2 fOf any IISC of the OIIl:UIll~lalillll f1mhil;!ite(l DY
linN :lcl:li!l/I,
SII.CnnN 5. UMlTAT10N ANI) CONUl'flONS 0.'
UABn,JTY.
5.1 C1.IENT Ulld<<s(iII\U.~ Ih,ll Ihe S;:t'\Iicc:.~ IlC\)vid....' by PF.F.R
InVolVe l~ nPflliculion uf .~cic:nrilic Gild ICChllk:~1 ~"jlJ.
jwa:uJl:J1I,uK1 diliC.'R.1illn which 1$ not on CXllCl s.-1lll1L'II ancllhal
I'tiCH 1.'UI\1lI11 anel (Inc:~ nOlIlNlrnmy the n:~uhl\ I)f il/i ScrviCCl\.
'n..;tI:lKI, PHIo:R 1lf,1r.l".~ In pct(oolllhe Sl.'rviCIlS u~illS that ~
of care .and ~kill "JlTliI\'b'i1y '~IIIII,'i,..,.J ulllItol' ,'lilllilllf
citcullL'ilaoo:H hy n:&1ll1nhk: I11cm')I"l\ of j(~ ill\Ju~lry pnlClicinll
ill Ihc 1IU1l1ll lIlCillll)'. NO OTHER WAr<RANTV,
F.XPRESS[!D OR /MI)UI-:J), INCJ.UDING TlII3 IMPUIJJ)
Wt\f(RJ\Nn~ 01' MI:(RCHANTARIUTY AND ATNr:...ClS
FOR ^ P^~TIl..'ULAK t'URP()~1i L'I MAOe OR IN1tlNOOD
RBSI'ECTlNO THti ~iliHV'C1'~"'. AI,I. WARRANTIES AND
IlHrRESENTATIONS AI(I: MAilE FOR THFll\QI-'~ /\NO
HXCl.USIVE B8Nnrrr 011 Cl.lHNT ANn PRfiR MM<F.S
NO WARRANTIES OR RI1PR(~':;HNTATIONS
WtlATSOkVtiH HlIl THE 8ENEFIT OF ANY (m-lI:iR
TlIIRI) PliR:\nN OR PARTY.
~,2 UPON RHQUEST, PI!ER WILL IlUI<NISH CI JFNr ^
CCIUlI'K.'ATt.: nt'. IN1illRANCE DVIOl!NCINC, PriRR'1\
CUT<~CNI' I'UU<:Y(S) ANl) niB TYPO ANI)
AGOREClATB 'AMOIINT ()to" THF, COVI!RAGES
I'ROVIDl!D. '1' CUHNT RF.Ql.lfiSTS ADDrnONAL. OR
INCREA.'1llD IN:lIJRAN\.P, r.OVP.RI\t:;&S) OV~H !"l,(JSH
SI'ECIPIt!D IN TBJ: CHRTIt'1CA lB, If IT IS RP.ASONAI'll.V
II().'.,l\lRl.F. TO 00 SO. P~R W1L.l. PURCIIASI! SUCH
AnnITIONAI. INSUAANL'1i AT ('UI"NrS p.XP~~ AS
AN AODmON^L SEkYI('ti lJNl>t\R THI": CON'rnACT.
I'HER'S MAXIMUM POTliNTIAI.I.IAHII.rrv TOeLIENT
K)K ANY AND ALL DAMACiES. rI.l\lM(!;) OR
OL'L'UKIUiNC:I'.{S) IS CO.IlX'mNSIVIi WITH THB
AMOl.JNJ' Of' INSIJRANCF. CovERACE AC""IJAL.I,Y
AVAILADLH ANI) PROVIOFO TO SATISfY c-'WiN"!"S
OAMAOI?S. CLAIM(S) OR OC(,UKI{l:Nl.:~S)
l'llRSUANT TO .'I".I!WS APPLICA&LE POLI(:II...:i THl-'oN
IN F"""ECT. IN NO INHNT SHAI.1. !'EER. OR ANY 01'
ITS OFFlCcKS. UIKHcmRS. S"'i\REIlOLDl1RS.
IiMPLQYEES ANOIOt< ACIHNI'S, H~ I.~DLC m
CI..If.iNT fTm< ANY I)AMAUf;S. CI.MM(S) OR
OCCURRl!NCIZ(S) 1ll!YONO ANY AMOUNT WHICH
I'BER IS IlNTI'Il.IiI) TO RECOVER. OR WHICH I'I",Jo;K'S
INSURER IS R~QIJJRF.I) TO rAY, lINlJliK THH
IN$;URMCLi I'OLICY(S) ACTUALLY APPLlBl) TO
PROVIOE CUV~AUI:\ Ofl) SATISFY cunNTS
I)"'MAOES, CLAIM(S) OK ()( .ct.lI~I<IiN(.'t!(S). E.XCEPT
THAT PIlDR'S MAXIMUM POn=.NTll\l L1AUiUTY
,~ ()f 4
JAN-18-2007 15:03 From:PEER ENGINEERING
INCUJ\)k$ lHI:! THEN EXISTING MINIMUM
UNSA'rJSrll:!O OBDUCTIBIL IF ANY. or ANY t'Ol.ICY
I1NI>HH WHIC'" INSllRANCE COVCRA(jl! I'OH
CLlEN1"S I)AMM11o:S IS AcrUA1L YPROVIOOD.
;';.3 I'HliH ~n hQ~ no liability f(n (lUY fil!lull:lu perf'llII urdcblV
in pclfonllMCll dUtl to 0IIl)' cin:ulllI;!llnl:OlO beynnd it5 (M5M/lhk~
eOlllI'QI. AdditiQllally. in nIl event 5hull !>HHR h.: I1llhk~ "'
rc~JXlIlSiblc tQ CLII!NT 01' any uther pcr&Ol1 (or (Ill)
consequenti.l. spe..'illl. il\~idmllll. clICmpllll1. l)I' punhhc
durn... in~luding but llOf limited to. eoytl'lllllcnllll lincK,
IlC'lwlil:s or IwbililiCll, 10liI pmtil~ nr <)Iher ceotlOlllic 10"
(wllellJcr ;ui5illll fn.u lIegli~ncl:. em I"'. nmi55ions. bR'.och
of cOallllcl. mIlCh nf wtlrfllnty, tnrl, ~h'kl li,,!lility VI'
Otberwja,,). 11l51111inll from lInr Cl3i/llCd I'llr...:1 I~( I.Ittli.;i""""y
in the Slltvic;e~ provided b)' J'I!I!K or nny failure by reEf( tll
pt'(Jvido: Sc:,,,i~',,,,.
SECTION" INDEMNITY.
~.! In Iddilioolo lbc OIlier 1Il111l::llit/\ lit' IhiK <:nnlw:t. CUFiNT
ugn:cs to SlIYC. indemnify, dllrenc:l and hold hannlfm "aER. iu
3I'1lU:IfI.'!i, nnd rhftlr ~pel"llve dlreclQn;.. llffiCCl1i. xmhol~
cmJlIaycc&. :ar,cntA, .....hl:fllI"I"~\IIX. ~Uf,;~"li allY uz;....llIIli trom
and .iIw ull clnim~, c1.1n~1gtl., k_ alUJ zWuwd Upunse5
(includintl. without Iimil:ltioo. 1~llltl alkJl1ltly~' f~,
di~bu~ull:III~. Clp;r1 witncss tCts. 1I11d all LtJ.'Il. of ~rt). In
allY 1I1W11M:lt wi';1l1S nul of or ~4t~ 10: (i) OIlY bnlll~h by
CUENT ur thili Cunlnu.'1 111' Any other ~8rCell\all btlWl.~
PEER and CLlf!l'H: (II) me J'llL.'SI.~I~. di.""lulIJl", I"~~ ur
l13Cipll ol un)' kind nf Hamrdl'lll~ 1lIlI'l'lIall.....' ot <:II. IlCin llle
Sile; (iiilllw lICI~. CQlldal<:' Qr neglilC1lIal IIf 1IllY illlltl\ll:Illlllsnl
. contr8etor.llgenl. employee or dclcilllCC of CUtiNT; Ill' 0...)
IIICl illlcqll1:talila Ill' U!il: Clf tbe 1'I;1ult$ Qt'l'EER's Servicl:lI o(
11.. lAA"UII"ullliun !,"widcd by lleer, ot~r tMIl fllr Ibc
purposa. ",llI-lIul/lUI i~1l by J.II::1.i~ In wTilinl!'
SEC'l'lON 7. 1)~1'tI'.[~
?I Wilholu Ilmilln8, Pl!ER'~ ~11tI' right.~ IIIlll JI.'1nl.:dic!l. ~hollld
CUHNT dcftalll/ an it~ J)iIYIlll:lll wlixuiilJtl~ iv I'bl::R und
Pl3UH rarainl IIlSNl,'lOunscl kI wlleL1 its fa:ll. 11l1:li. III Illldililln
10 till! unpuid fl:L'!; lIJId intcn:st. CUENT .hilll be liable In
J'~ fur uU Clllk;clif)ll I;l~n~ illdudinr n::.:lIi(1I'labk:
lltl~ fWl, dilthllrllCmcnlS. c~pctt wilJl\lli.~ f".~ lUlIl ~1I1:C1l11~
ur \.'IlUri Ind bllt',~lir.m.
7,2 If 11IigaliunllrlliCli nme( thil< ClJ"lllI~:1 in I.Yhkh II UIS/lIIN.'iIlI.
-vict. judgmc"t Of othei fallll IIf t.lcci~ilql (illcll/(hny. nny
Ilooisil~ nf A.ltel'l1l\tlVC Dispute ReM,lutil1n procecdinl:'~) i~
rtrnkl/l.'d wblCh aol~ the IIli\U.cr in favnl' of one (WtY IIlld
lIgaiMt lhe Olhcr. lhc:n the ~lli party sllall(.\ly III illl: WilHlil~
9528314552
To:6128619181
P.1J....ll
5~IO
11110) Rev.
flAl1y Ill\'! willllillll p:uty'~ 1'Ull.'l\ll1uh1~ Ullunll..'y'H Ii:\:,~.
dl~bllr$l\llIellts. tlllpl:l'l wibl~~ la:s WId wi cml~ of LI)lIFt illld
nli~ti\J\l.
S~:r..-1'I0N lJ. MISCELLANEOUS.
!I. I TIIiH Cl.lllln&l.1 iK IhI: entirc n,gr<;Cl1lellt lxlWllCn P13T.!R illlI)
CI..lIiNJ'lIIld it ,\II~ nil prior W1itll;;l\ <It l.II'lIi ~tI':nl~
wilh r~~fIl.'Cl III ltar. Hllhjm m.,ltl'r ~f, i111.~llc:lillll C1./UN"J"S
illlditillllal or dltli:n~1I1 terms ~II \;Ulldi,iI.lIlli tlull !Ill)' be
~1~llI~i'IC\1 i'l ilIIY lluld1a.<iI: llRIt.~. Wink order, JIl:knowlt;dJ.lllcnl
fl\l'm, or otl~r dOl."UIlIl!llJ\ IaIbllli\1IlI1 by CUI'.NT In p~r.tt, all of
which iII'C hen:by cbjcl:1Cd to :and Illilll:lcrl by I'liI':K Nil
&/Ix.:ndm;nt or assllll1lWl1\ of the Q\ntlilCt &hall be ctft.ctlvc
unll.'5.~ lIFo:d to ill 1'1 'Vri1inll Kigncd by DII!hori7l.'II
n:preSl~nllllhll'lOl (II' tao4h p.'U'tie~.
8.2 The pmvi~inn~ M' thi!. C':tlI\IHI(-' le~llill~ lu IJII~ hnlwtillll Ilf'
Iiilbilily 1M dllJllllSC'. 1II:W:ulliIl5. illl"I.,ili~lIliun. II~ III'
p11Ul5. KlX-~;fi~lItion~. n:poru Mc:l till ~hrs' DtlCumeIIlatinn
p/Vvid...-l hy J1tiI-iK. lI/'Id thoSt; 5pxifyl~ choice ullaw. diApure
nu;tlluliul1, II/ltia:, W1liVl'J", 1100 JC~tllbili1t snull ,~lIrvive
1Ilnmnmillll (If thi~ (:!IIl1rnr.l_
1l.3 The 1Ct1llA l1f lhiK C\)nlr~t And i15 cnf'CW::lll:llil wltl
inle/'pl'etaliol1 5hull ~ snwmcd hy !1Ie sub$lll/ltiw la....s, and
11111 IhlS law..; uf c:oldhcls 1I1~ the Stille of Mill~la. If iIl1Y
pmvi.\i()ll Ilf IlJi~ CUllIn..' i~ W:tmllil1\:d In be: unlawful. invalid
nr IIncJlfl)/~'Ilabl.. 1I1111 IHuYillilm sI1l1l1 hi.' M.'vr.fI'.(t from Ihol
CnntrQCt and wllll()t I1lndcr thili C:ootrDcl, nr onv nllul. "r i 15
otlK.:r pl~vi.siotls. unlawfuL invalid 111' ulH:nft1rcc.1hlr..
4 of 4
5-11
Location of 7214 C dar Avenue South
Ih~:= I
-
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-
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./ 72n( S :rAl'\t ' ~
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7':lrr Sr~~t
f----- - - Legend
I---
I---- f--- I--- - ~. 7214 Cedar Avenue South
I---- f---
I--- N
I---- -
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I---- -
- -
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I---- - - \
~.
Source: Hennepin County Oblique Aerial, Flight April 2006
~z
AGENDA ITEM # 6
REpORT # 12
........
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
MARCH 19, 2007
REpORT PREPARED By:
BRUCEPALMBORG,COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
REpORT PRESENTER:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
REVIEWED BY EXECUTIVE DIRECTOR:
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
ITEM FOR HRA CONSIDERATION:
Authorization to redeem real estate at 6225 14th Avenue.
I. RECOMMENDED ACTION:
By Motion: Authorize the redemption of 6225 14th Avenue with funds
from the Foreclosure Redemption Revolving Fund not to exceed
$117,142.
I II. BACKGROUND I
In the fall of 2006 the Housing and Redevelopment Authority (HRA) established a
process for responding to mortgage foreclosures involving an HRA mortgage. The
primary objectives are three;
. Help maintain the supply of affordable housing,
. Project the investment of the HRA ; and
. Improve the condition of existing housing and strengthen the neighborhoods.
In September 2006 the HRA took action to initiate the redemption process on 6225
14th Avenue by authorizing the filing of a Notice of Intention to Redeem. The HRA
has a mortgage lien in second position of $20,000 dating from ,1994.
The dollars needed for the HRA to redeem would approximate the following:
0319076225 14th Ave
AHR Construction, Inc.
(purchased the balance due on
MHFA mortgage at Sheriff's sale)
TC Habitat for Humanity
TCF National Bank
Delinquent water bill
Attorney's fees
Sheriff's fee
Other fees
TOTAL
$40,656
$ 4,412
$19,800
$ 274
$ 1,500
$300
$ 2,000
$68,942
The Sheriff's office has been requested to determine the exact amount due. The
payoff letter from the Sheriff is pending.
Other matters of interest include the following:
. The house approximates 1 ,008-sq. ft. and was constructed in 1993.
. It has three bedrooms.
. A garage is absent.
. Renovation/repairs/construction is estimated at $48,200. This is an estimate
without benefit of an interior evaluation;
$ 6,000
$ 2,000
$ 5,000
$ 3,000
$20,000
New roof
General cleaning
Paint/repairing
Carpet/floor
Garage/d riveway
(subsequent to the sale of the property by the HRA
the HRA decided that garages should be an element
of the New Home Program projects)
Contingency, scope of work, marketing
TOTAL
$12,200
$48,200
The Assessor's office has valued the property at $187,000.
I III. BASIS OF RECOMMENDA nON I
I A. POLICY I
. The HRA has in place a process for responding to mortgage
foreclosures when the foreclosure involves a property with an HRA
lien.
. Authorizing the redemption of this property would bring to two the
number of properties the HRA has redeemed and the maximum
number established by the HRA fora pilot program.
I B. CRITICAL ISSUES I
. The Notice of Intent to Redeem will be filed shortly. The deadline
being April 12, 2007.
. The EMW of $187,000 (2006 value with 2007 likely higher) exceeds
the estimated cost of $117,142 to redeem and repair.
I C. FINANCIAL I
. The cost to redeem and to renovate would be taken from the
Foreclosure Revolving Fund with monies transferred from the HRA
Capital Fund based on actions of the HRA in February.
. Estimated sales transaction:
- . Sell to six-member family with income at 80% of median of
$72,880.
- 1/3 of income for PITI is $24,050 or say $2,000/month.
Sale Price
HRA Lien
Balance
Buyer down payment
Mortgage amount
Total Monthly PITI
HRA cash out say
$200,000
$ 10,000
$190,000
$ 5,000
$185,000
$ 1,600
$ 67,000
I D. LEGAL I
. Staff at Kennedy & Graven has been assisting HRA staff.
I IV. ALTERNATIVE RECOMMENDATION(S)
. Do not authorize redemption.
I V. . ATTACHMENTS
. N/A
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING
. N/A