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HomeMy WebLinkAboutCity Council Packet 01-22-2002 SpecialAgenda City of Plymouth Special City Council Meeting Tuesday, January 22, 2002 5:30 p.m. Lunch Room in City Hall 1. Call to Order 2. Options for Disposition of City Owned Homes on County Road 101 Report Appendices: A B C D E F G 3. Adjourn APPENDIX A Staff Reports From November 27, 2001 & January 8, 2002 Council Meetings. November 27, 2001 council meeting, set public hearing date for January 8, 2002 and reviewed the information the committee has received up to this date. Issues addressed were the involvement of IOCP and how many homes the City was willing to subside to them. Is extensive renovation the answer to getting these homes on the market or sell as is? Two of the homes are marketable immediately. Does the City sell these homes on our own or should we solicit a Realtor? January 8, 2002 council meeting, reset the public hearing for January 22, 2002 due to staff failed to send notice of public hearing to the City's official newspaper. This now has been done and was published on January 9 and 16, 2002. Also, Realtors were solicited in December to give commission fee proposals and these were received with additional information asked for in confirming that if all the homes were not listed would the fee proposal still be honored. Staff was to prepare an RFP for buying and rehabbing some of these homes. In addition, it was recommended that if the committee had all its information, it would recommend a Realtor at the January 22nd meeting. Agenda Number: / I DATE: November 16, 2001 for the City Council Meeting of November 27, 2001 TO: Dwight D. Johnson, City Manager FROM: G Daniel L. Faulkner, P.E. Director of Public Works SUBJECT: SET PUBLIC HEARING ON SALE OF CITY OWNED PROPERTIES ASSOCIATED WITH THE COUNTY ROAD 101 IMPROVEMENT PROJECT CITY PROJECT NO. 9005 ACTION REQUESTED: Make a motion to approve the attached resolution setting a public hearing for January 8, 2002, to authorize the sale of seven City owned properties associated with the County Road 101 Improvement Project. BACKGROUND: The City Charter requires that a public hearing be held prior to the sale of City property. Staff is recommending that the Council proceed with this necessary step for all of the homes at this time. The City and the County cooperated to purchase eight homes as a part of the County Road 101 project. Seven of the homes have been designated for re -sale after appropriate right-of-way deductions for the project. One home is adjacent to City water tower property and will be retained by the City. A report was made to the Council on August 14, 2001 on the status of the properties. Staff was originally planning to offer the properties for re -sale in the summer of 2002 after the project is generally complete and new buyers could see road as it will look in the future. However, on August 14th, Councilmembers expressed interest in getting at least some of homes sold to avoid maintenance costs over the Winter and minimize any possible deterioration resulting from the houses standing empty. A City staff committee was formed with representatives from the Engineering Division, Assessing, Building, and HRA to address the various issues involved with re -selling the seven properties. Councilmember Sandy Hewitt also attended most of the meetings. The committee has met several times. Some of the actions of the committee to date include: . Proposals from three realtors have been received and evaluated. A proposal from an auctioneer was received and reviewed. City inspectors have inspected the properties and an evaluation of needed repairs has been made. N.*w\Fnguwering\PR01ECTS\1990. 1999\9005\Maws\CRI01_Dwig*_Pub Hrg.doc SUBJECT: SET PUBLIC HEARING ON SALE OF CITY OWNED PROPERTIES ASSOCIATED WITH THE COUNTY ROAD 101 IMPROVEMENT PROJECT CITY PROJECT NO. 9005 Page 2 The committee met with representatives of Interfaith Outreach and Community Partners IOCP) who have proposed to buy up to five of the properties for affordable housing. Their proposal is below market. A few unsolicited offers from citizens have been received. These offers are considered below market value. Glory of Christ Church has expressed some initial interest in buying the home at 4020 County Road 101, but indicates they may not have the funds to make an offer. DISCUSSION: The staff committee believes that two of the properties, 17915 County Road 24 Porter) and 3030 County Road 101 (Pickering) could be marketed for sale soon after the January public hearing because only minimal repair and cleaning would be necessary to prepare these properties for sale. Also, neither of these properties are in the proposal from IOCP. Staff is currently considering offering these properties for sale without a realtor. A procedure to possibly do so would be developed in the coming weeks to be ready after the hearing is held. There are still a number of issues to resolve before the other five properties are re -sold. First, we must further evaluate the proposal from Interfaith Outreach and Community Partners. Since the proposal is well below market value, other affordable housing funds will need to be evaluated from state, county or the City's HRA. The needed funding has not been identified as of this date. Second, more evaluation of needed repairs or renovations on the remaining homes, including some life safety items, is needed. We will need to determine how much repair work to do, and if we do relatively few repairs or sell "as is," we need to consider what kind of buyers we might sell to. If major repairs are undertaken, we will need to consider the method of funding them, particularly if the repairs will not add the equivalent market value to the re -sale of the home. Also, it may not be desirable to try to sell all of the properties in the same way. We may need assistance with a realtor or an auctioneer for one or more of the remaining properties. Our experience with the first two houses will help determine this. RECOMMENDATIONS AND CONCLUSIONS: Since it is a requirement of the City Charter that any City sale of real property requires a public hearing, it is recommended that the City Council set a public hearing for the January 8, 2002, City Council meeting to authorize the sale of the seven City owned properties associated with the County Road 101 Improvement Project. Staff will continue to research and analyze the outstanding issues and questions and provide a further update for the January 8`h meeting. No Daniel L. Faulkner, P.E. Director of Public Works attachments: Resolution Map N \pwTngi ing\PROJECTSl1990.1999\9005\Maws CR 101 Dwight Pub_Hrg. doc CITY OF PLYMOUTH RESOLUTION NO. 2001 - SET PUBLIC HEARING ON THE SALE OF CITY OWNED PROPERTIES ASSOCIATED WITH THE COUNTY ROAD 101 IMPROVEMENT PROJECT CITY PROJECT NO. 9005 WHEREAS, through the Cooperative Construction Agreement with Hennepin County for the County Road 101 Improvement Project the City agreed to purchase eight properties and re -sell seven of these properties some time at or near the conclusion of the road improvement project in lieu of the county purchase of necessary right-of-way/easements from these properties; and WHEREAS, through the Construction Cooperative Agreement the county will share in the net loss on the re -selling of these properties at fair market value; and WHEREAS, it is a requirement of the City Charter that a public hearing is necessary prior to the City sale of any real property. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH, MINNESOTA: That a public hearing is set for January 8, 2002, at 7:00 p.m. in the City Council chambers to authorize the sale of seven City owned properties associated with the County Road 101 Improvement Project, City Project No. 9005. The seven properties are located at the following addresses: 1. 17915 - 30th Place North 2. 17920—30th Place North 3. 3030 County Road 101 4. 3225 County Road 101 5. 4020 County Road 101 6. 17915 County Road 24 7. 17825 County Road 24 Adopted by the City Council on November 27, 2001. NApw\EnSinming\PR0fECPS\1990- 1999\9005\An N wrnrnend Dispose on. doe City of Plymouth, Minnesota W+ E Engineering Department January, 2000 Agenda Number: (p , n ; CITY OF PLYMOUTH CITY COUNCIL AGENDA REPORT DATE: January 3, 2002 for the City Council Meeting of January 8, 2002 TO: Dwight D. Johnson, City Manager FROM: Daniel L. Faulkner, P.E. Director of Public Works SUBJECT: RESET PUBLIC HEARING ON SALE OF CITY OWNED PROPERTY ASSOCIATED WITH THE COUNTY ROAD 101 IMPROVEMENT PROJECT CITY PROJECT NO. 9005 ACTION REQUESTED: Make a motion to approve the attached resolution setting a public hearing for January 22, 2002, to authorize the sale of seven City owned properties associated with the County Road 101 Improvement Project. BACKGROUND: At the November 27, 2001, City Council meeting a resolution was approved setting a public hearing for January 8, 2002, to authorize the sale of the seven City owned properties associated with the County Road 101 Improvement Project. As part of the public hearing process, a minimum ten day notification must be printed in the City's official newspaper prior to the public hearing date. Staff failed to send the notice to the official newspaper, and therefore, the public hearing must be reset. The proper notice has now been sent to the Plymouth Sailor, and it will appear in the January 9 and 16, 2002 publications and thereby meet the minimum notice requirement for the January 22 City Council meeting. Since the November 27, 2001 City Council meeting, the City staff committee along with Councilmembers Hewitt and Johnson, met on December 6 to evaluate the available information pertaining to the seven City owned properties and discuss the pros and cons of various methods of selling these properties. In addition, the committee discussed the market analysis that was completed earlier this fall by three separate Realtors who proposed to sell these properties at a 6% Realtor's fee. Depending on the actual sale price of the seven properties, valued at a total cost of approximately $1.5 million, the City could be responsible for approximately $90,000 in Realtor's fees. The committee decided that since there are multiple properties to sell, there may be Realtors familiar with Plymouth that would be willing to accept a lower fee to sell the City owned properties. It was the consensus of the committee that a letter should be sent to all Realtors with a City of PlymoLith address requesting a fee proposal to sell the seven single family homes owned by the City. On December 13, 2001, the attached letter was sent to 23 local Realtors requesting their best N'pw EnginmingTROJECTS\1990. 1999\90U Me SSaPubhcHmg_I 3doc SUBJECT: RESET PUBLIC HEARING ON SALE OF CITY OWNED PROPERTY ASSOCIATED WITH THE COUNTY ROAD 101 IMPROVEMENT PROJECT Page 2 fee proposal for selling the City owned properties. On December 20, 2001, an informational meeting was held at City hall and attended by six separate Realty company representatives. A subsequent tour of the City owned properties was also conducted by City staff. The City staff committee along with Councilmember Hewitt met again on January 2, 2002, to review the eight fee proposals received and clarify what additional information is still necessary. It was determined that all eight Realtors will need to be contacted to clarify their proposals in order to fairly evaluate and compare them. After all necessary information is obtained, it is City staff's intention to bring a proposed agreement with one Realtor for approval to the January 22 City Council meeting. City staff is also obtaining additional cost information on the repair of code violation items as well as other "improvement" items. Staff will also be preparing a request for quotes from companies interested in buying and rehabbing some of the homes needing significant work. All available information, including the status of Interfaith Outreach and Community Partners' request will be provided to the City Council at their January 22 meeting. RECOMMENDATIONS AND CONCLUSIONS: As required by the City Charter prior to the City sale of real property, it is recommended that the city Council set a public hearing for the January 22, 2002 City Council meeting to authorize the sale of seven City owned properties associated with the County Road 101 Improvement Project. In addition, if all questions and clarifications are provided in a timely manner, an agreement with a realty company for the sale of at least some of the City owned properties will be proposed for approval at the January 22 meeting. Daniel L. Faulkner, P.E. Director of Public Works attachments: Resolution Letter 4 \pw FA&mcmnS\PR0JECTS\1990 - 1999\9005\Me \SaPubbcHmg_I l doc CITY OF PLYMOUTH RESOLUTION NO. 2002 - RESET PUBLIC HEARING ON THE SALE OF CITY OWNED PROPERTIES ASSOCIATED WITH THE COUNTY ROAD 101 IMPROVEMENT PROJECT CITY PROJECT NO. 9005 WHEREAS, through the Cooperative Construction Agreement with Hennepin County for the County Road 101 Improvement Project, the City agreed to purchase eight properties and resell seven of these properties sometime at or near the conclusion of the road improvement project in lieu of the County purchase of necessary right-of-way/easements from these properties; and WHEREAS, through the Construction Cooperative Agreement, the County will share in the net loss on the reselling of these properties at fair market value; and WHEREAS, it is the requirement of the City Charter that a public hearing is necessary prior to the sale of any real property. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH, MINNESOTA: That a public hearing is set for January 22, 2002, at 7:00 p.m. in the City Council Chambers to authorize the sale of seven City owned properties associated with the County Road 101 Improvement Project, City Project No. 9005. The seven properties are located at the following addresses: 17915 — 301h Place N. 17920 — 301h Place N. 3030 Co. Rd. 101 3225 Co. Rd. 101 4020 Co. Rd. 101 17915 Co. Rd. 24 17825 Co. Rd. 24 Adopted by the City Council on January 22, 2002. alpha2\ntdmkl\pw\Engmccrmg\PROJECfS\1990-1999\900SRcsot\ResvPH_Rcs9005. doc December 13, 2001 SUBJECT: REQUEST FOR FEE PROPOSAL TO SELL 7 SINGLE-FAMILY HOMES ALONG CSAH 101, C.P. 9005 Dear Office Manager: The City of Plymouth purchased 7 homes as part of County Road 101 Improvement Project along CSAH 101 between T.H. 55 and 30TH Place North. The City of Plymouth is looking at different options toward the disposition of these homes. If your agency is interested in working with the City in this endeavor, please send us your best fee proposal for selling these homes. The deadline for receiving your proposal is December 27, 2001. Enclosed are a location map and a list of the property addresses with other information that may be pertinent to your bid process. The City of Plymouth invites your representative for a short informational meeting and review of the homes on Thursday, December 20, 2001 at 1:OOpm in the Medicine Lake Room at City Hall, 3400 Plymouth Boulevard. If you have any questions, I may be reached at 763-509-5531. Thank you. Sincerely, Steve Deuth Sr. Engineering Technician Enclosures cc: Daniel L. Faulkner, P.E., Director of Public Works Anne Hurlburt, Director of Community Development D \TEWRedtoh fee bid doc APPENDIX B Properties Costs and History Background List of homes with appraisals done in April 2000, purchase price and date the City took ownership. A synopsis of each of the 7 homes with background on each home as to its condition and a selling price range compiled from a market analysis. Also, what Hennepin County would have paid for permanent and temporary easements if the homes were not sold. Location map of the homes along CSAH 101. Dwight's analysis on the resale of homes VOLUNTARY PROPERTY ACQUISITION COUNTY ROAD 101 HENNEPIN COUNTY NO. 8911 CITY PROJECT NO. 9005 PRIOR OWNER SITE ADDRESS P.I.D. Par.' No. JENKINS APPRAISAL JENKINS . DATES' BLINDMAN APPRAISAL BLINDMAN DATES PURCHASE PRICE CLOSING DATE ` Pickering 3030 Co. Rd. 101 19-41-0009 5 190,000 4/18/00 207,000 4/18/00 225,000 June 1, 2001 Mills 4020 Co. Rd. 101 18-41-0002 42 165,000 4/28/00 168,000 4/27/00 186,000 September 6, 2001 Anderson 17915-3 01h Place N. 19-42-0020 83 190,000 4/11/00 190,000 4/14/00 200,000 October 10, 2000 Porter 17915 Co. Rd. 24 19-42-0019 81 210,000 4/11/00 215,000 4/20/00 215,000 December 4, 2000 Hughes 17825 Co. Rd. 24 19-41-0008 6 150,000 4/11/00 165,000 4/26/00 180,000 March 29, 2001 Vicary 3225 Co. Rd. 101 19-13-0059 65 190,000 4/11/00 190,000 4/18/00 190,000 July 21, 2000 Phad 17920 — 3e Place N. 19-42-0003 82 200,000 4/13/00 200,000 4/14/00 200,000 June 23, 2000 Frost 3950 Co. Rd. 101 18-41-0004 40 165,000 4/11/00 180,000 4/26/00 217,000 May 23, 2001 City needs to grant easements to County on all parcels except 3225 Co. Rd. 101 (Vicary). Driveway access off #101 to Vicary parcel will be eliminated. Access will come off Queensland Lane on West property line. 3950 CSAH 101 (Frost) will be not be sold. N pw\EngmmnngTROIECTS\19%- 1999\9005Wix\V,i Pmpm _Acqui,icion.dx 3030 CSAH 101 Previous owner - Pickering Site Area - .73 acres Living Area - 1,450 s.f. Built - 1970 L-shaped stucco rambler w/front walkout basement. 2 -car attached garage. Newer Gas FWA furnace/CAC/electric air cleaner/humidifier. Newer asphalt shingle roof. BACKGROUND The City paid $225K for this home. This price was based on an appraisal done by William Warner, a Real Estate Appraiser, whom the seller contacted. Warner's appraised value was $225K. The City of Plymouth had two appraisals at $190K and $207K. Had this home not been bought, Hennepin County would have paid $3,978 for the permanent and temporary easements. Possession of this home was taken on June 1, 2001. The committee looked at some different selling options. There are three proposals from real estate agents. A real estate auction company submitted a proposal and a few individuals sent letters stating an interest in purchasing a home. The anticipated selling price ranges on this home went from $215K to $250K. General aesthetic updating is a common theme to these homes. This home was cited for two hazardous items. The first was a worn out electrical receptacle, which will need to be replaced with a ground fault circuit interrupter outlet. The second is a missing smoke detector outside a bedroom area. Costs of correcting these items and making cosmetic changes is estimated to cost $1200. SELLING OPTIONS & RECOMMENDATIONS The committee recommends selling this property ourselves at a cost of $241,900, with the City Attorney's office preparing the purchase agreement, warranty deed and clear title documentation on the property at an estimated cost of $1,000. 4020 CSAH 101 Previous owner - Mills Site Area - .58 acres Living Area - 1,576 s.f. Built - 1890 A turn -of -the -century Victorian -styled 2 -story home. Appears to have been moved to its present site w/newer concrete block foundation. Has a detached 2 -car garage. Gas FWA heating system without central -air. This building is on well and septic. BACKGROUND The City paid $186K for this home. This price was based on an appraisal done by Greg Callahan, CRRP, from Forsythe Appraisals Inc.(April 2, 2001), whom the seller contacted. Callahan's appraised value was $180K. The actual selling price was calculated by adding to the appraised value of $180K, the monthly increase in real estate value from April 2001 to September 2001. The City's two appraisals came in at $165K and $168K. Had this home not been bought, Hennepin County would have paid $18,737 for the permanent and temporary easements. Possession of this home was taken on September 6, 2001. The committee looked at some different selling options. There are three proposals from real estate agents. A real estate auction company submitted a proposal and a few individuals sent letters stating an interest in purchasing a home. The anticipated selling price ranges on this home went from $170K to $180K. General aesthetic updating is a common theme to these homes. There are a number of safety violations. A smoke detector is not functioning and there are some ungrounded receptacles. The staircase to the upper level lacks a handrail. To correct these items would be $500. The furnace is old and at minimum needs to be inspected and approved by a licensed contractor. Replacement of the furnace would increase the cost 2,000. SELLING OPTIONS & RECOMMENDATIONS The committee's recommendation is to sell this home ourselves, by making the safety improvements estimated at $4K and asking $170 for the property. Another option is to do major improvements at a estimated cost of $20K and selling the home for $190K, with the City Attorney's office preparing the purchase agreement, warranty deed and clear title documentation on the property at an estimated cost of $1,000. 17915301h Place Previous owner - Anderson Site Area - .52 acres Living Area - 1,282 s.f. Built - 1964 L-shaped rambler w/new aluminum siding, remodeled kitchen (10 years), New gas FWA furnace (6 years), new carpet (5 years), new shingles (8years). BACKGROUND The City paid $200K for this home. This price was based on the average of three appraisals. The City had two appraisals, both at $190K, and the owner's appraiser had a value of $21 OK. Had this home not been bought, Hennepin County would have paid 10,455 for the permanent and temporary easements. Possession of this home was taken on October 10, 2000. The committee looked at some different selling options. There are three proposals from real estate agents. A real estate auction company submitted a proposal and a few individuals sent letters stating an interest in purchasing a home. The anticipated selling price ranges on this home went from $180K to $200K. General aesthetic updating is a common theme to these homes. Two hazardous items on this home, one being a large hole in the firewall and a smoke detector not functioning. Approximate cost to repair these items is $150.There is a mold issue in the basement. Repair work and some updating are estimated to cost $3000. SELLING OPTIONS & RECOMMENDATIONS The committee's recommendation is to sell this home ourselves, with the City Attorney's office preparing the purchase agreement, warranty deed and clear title documentation on the property at an estimated cost of $1,000. This is the primary home that IOCP is interested in purchasing for $140K, which the City would need to subsidize $60K of the cost. The City might ask IOCP to find other sources of subsidizing to help with our loss on this home. If we put this home on the open market the asking price would be 204,900. 17915 CSAH 24 Previous owner - Porter Site Area - .46 acres Living Area - 1,390 s.f. Built - 1996 A "raised ranch" designed rambler w/sunken CT entry foyer. 3 -car attached garage. Gas fireplace and 2 built-in buffets/shelves. BACKGROUND The City paid $215K for this home. This price was based on the highest of the two appraisals the City had done, which was $215K, and accepting the review by Jerret Seebart, Mr. Porter's appraiser, done on the City's two appraisals. Mr. Seebart supported the higher appraisal done by Debra Blindman, because it was more detailed than the other done by Jenkins. Had this home not been bought, Hennepin County would have paid 13,585 for the permanent and temporary easements. Possession of this home was taken on February 16, 2001. The committee looked at some different selling options. There are three proposals from real estate agents. A real estate auction company also submitted a proposal. The anticipated selling price ranges on this home went from $234K to $245K. Only two violation which is an egress window in a lower level bedroom and a window in the lower level family room that needs either to be repaired or replaced. To make these minor repairs is estimated to cost $1,200. SELLING OPTIONS & RECOMMENDATIONS The committee's recommendation is to sell this home ourselves for $243,900, with the City Attorney's office preparing the purchase agreement, warranty deed and clear title documentation on the property at an estimated cost of $1,000. 17825 CSAH 24 Previous owner - Hughes Site Area - .76 acres Living Area - 1,635 s.f. Built - 1951 A custom-built by owner rambler on crawl space, no basement. Original porch has been converted to a large main level FM (on slab) with knotty pine walls. 2 -zone oil and wood fueled HW furnace with circulating pump. Heated floors in LR and FM. New custom windows. Recently painted exterior siding. Asphalt roof (10 years). BACKGROUND The City paid $180K for this home. This price was based on the City's highest appraisal of $165K (Debra Blindman, April 2000). The City's purchase price was based on an 11% increase in property values over the 10 months between the appraisal and closing. Had this home not been bought, Hennepin County would have paid $7,200 for the permanent and temporary easements. Possession of this home was taken on May 1, 2001. The committee discussed various selling options. Three Realtors and a real estate auction company submitted proposals. The anticipated selling price ranges on this home went from $145K to $185K, depending on the degree of improvements. Many violations need to be addressed in this home. A major issue is replacing the 7 fuse boxes with one electrical panel. Other concerns are outlet receptacles throughout the house as well as wiring that is not properly terminated and capped. The heating plant is a wood burning / fuel oil mixture. This system has been inspected and is functional, but very dated and recommended for replacement at cost of $4300. It is recommended to remove the fiberglass pool, cement decking, fencing and the pump house at a cost of 6,000. This includes fill, grading and seed. SELLING OPTIONS & RECOMMENDATIONS The committee's recommendation is to sell this home ourselves, with a new gas boiler installed and the above mentioned violations corrected for $180K, and with the City Attorney's office preparing the purchase agreement, warranty deed and clear title documentation on the property at an estimated cost of $1,000. In addition, IOCP is also interested in the property, but would be contingent on a subdivision approval and rezoning if required. IOCP is offering $95K with the City subsidizing $85K. 3225 CSAH 101 Previous owner - Vicary Site Area - .53 acres Living Area - 1,463 s.f. Built - 1920 Turn -of -the -century "4 -square" designed 2 -story w/reproduced open front porch. Leaded glass windows, Well-preserved & restored millwork. Updated kitchen (4 years). Gutted and rehabbed upper level. BACKGROUND The City paid $190K for this home. This price was based on the Blindman and Jenkins appraisals, which were both $190K. There would have been no permanent or temporary easements required by Hennepin County. Possession of this home was taken on July 21, 2000. The committee looked at some different selling options. There are three proposals from real estate agents. A real estate auction company also submitted a proposal. The anticipated selling price ranges on this home went from $185K to $200K. Many electrical deficiencies in this older house pertaining to ungrounded outlets and improper wiring techniques. Some windows need replacing or repairing. The furnace has a cracked heat exchanger and needs to be replaced at a cost of $1850. $12K would bring this structure up to code and buying appeal. Previously, there was request to obtain bids on what the cost would be to turn this structure 180 degrees and move it 60 feet to the west placing it on a new foundation. The estimated cost to just move the house and garage is $16K. A new concrete foundation, water and sewer hook-up, sidewalk, concrete stoop, new 80 foot bituminous driveway off Queensland Lane, that is required due to the closing of the access off CSAH 101, is estimated at $25K for a total cost of $41K. SELLING OPTIONS & RECOMMENDATIONS The committee's recommendation is to sell this home, in its present location, ourselves for $200K with just the rehab cost of $12K and with the City Attorney's office preparing the purchase agreement, warranty deed and clear title documentation on the property at an estimated cost of $1,000. IOCP would leave the structure in its present location and do the required rehab work and purchase for $90K, with the City subsidizing $100K. 17920301h Place Previous owner - Phad Site Area - .50 acres Living Area - 1,472 s.f. Built - 1962 A 60's walkout rambler whip roof and front brick fagade. Asphalt roof is about 12years old. Walkout basement with kitchenette w/ original built-in appliances. BACKGROUND The City paid $200K for this home. This price was based on Blindman and Jenkins appraisals which both were at $200K. Had this home not been bought, Hennepin County would have paid $10,950 for the permanent and temporary easements. Possession of this home was taken on June 23, 2000. The committee looked at some different selling options. There are three proposals from real estate agents. A real estate auction company also submitted a proposal. The anticipated selling price ranges on this home went from $155K to $200K, depending on the degree of improvements. There are major structural problems with the roof as to where the weight is being distributed and the overall design of the roof system. The lower level basically has to be gutted and considerable up dating is needed throughout the rest of the home. An estimated $80K would be necessary to place this house into a desirable condition for marketing. SELLING OPTIONS & RECOMMENDATIONS The committee's recommendation is to sell the house as is, either through an auctioneer or by us with full disclosure of all known items of repair. A real estate auction would possibly entice investors and contractors to view this as a possible renovation project, with the stipulation that the roof issue is corrected as part of occupancy of the house. The IOCP would be interested in purchasing this property for $50K, to demolish and rebuild, only if they can acquire the Anderson property (17915 30th Place) for $140K. lXllK9K•7;r M tl 1 iy OT Plvmeuth_ Minnesota r. oll r. r v/-411KII1II-1: Ti MIM IM 1k01i•f:r• m ll J[rIi—MoMiM'iUFMT4T Ts Y14INCiIHI-1: v' IV4.11 ofon IxiliOrm:r:mll L* Ixy OT Plvmouth. Minnesota January 20C J r oll v' 6lis btol[*f :r: v' J[TTTiTUiM'iIT TiT---T:T-i IXORKMZromil Mwofm TiLlkIIii7: IMIKere:r: m ll aivmeutn_ minnesd V4mefem:r r. INKIIN7: lXiiRK•7M:rMll Plvmeutn_ Minnesota 1 V. r. v' jf: v' r]r;;. L -4wm6r-llm m VIONKIMPOO. 1XIOROG:rmil immintim_ minnP_SAta _laniiary WIC 1 01r r. fit Y1411KIIH 7 : v' IKiIIK•:t:I i [1 Pivmoutn. minnesota January 20C L•qwAldr—Imm- WINKIIHMO. v' T, Li Gili170. RNMOUth_ minnesa IKi1IKmZlrGm[1 v Wf*Gm.Mr. 1411KiIja7: kLi cilji7: 601ty Of Plvmnuth_ Minnesota 1xilIK.u:roIii [l r. 61 Y1411KIIH7: oll kLIK H7: jivmoutn. minnesou 4M Ofo7M ,re IMIi.TO-:rmil li WILO iM: Y1411KIMI-1: OLLI C{lii7: 0911RO UZrn[1 J [r/'iTM i ilk Ji Mo T4zl• r. Y-411KIIHM: v Ti9.1t{li17: Plvmniitn_ Minnesota IK IIK w:T i[1 r 61 WmerfuZue YMIK HM: oll ObLIKili77: Plvmetjth_ Minnesot2 4mofm:r. IMIXOG:rmil COUNTY ROAD 101 HOMES Original Jenkins Blindman Average of Mos. To Inflator @ Expected Actual Underpaid Under Owner Address Appraisal Appraisal Appraisals Closing 1% per mo Price Price Overpaid) Overpaid) Pickering 3030 Co. Rd. 101 190,000 207,000 198,500 13 1.138 225,893 225,000 893 0.4 Mills 4020 Co. Rd. 101 165,000 168,000 166,500 16 1.172 195,138 186,000 9,138 4.7 Anderson 17915 30th PI 190,000 190,000 190,000 5 1.051 199,690 200,000 310) 0.2) Porter 17915 Co. Rd. 24 210,000 215,000 212,500 7 1.072 227,800 215,000 12,800 5.6 Hughes 17825 Co. Rd. 24 150,000 165,000 157,500 11 1.115 175,613 180,000 4,388) 2.5) Vicary 3225 Co. Rd. 101 190,000 190,000 190,000 3 1.03 195,700 190,000 5,700 2.9 Phad 17920 30th PI 200,000 200,000 200,000 2 1.02 204,000 200,000 4,000 2.0 Frost 3950 Co. Rd. 101 165,000 180,000 172,500 1 1.138 196,305 217,000 20,695) 10.5) 1,620,139 1,613, 000 7,138 0.4 RE -SALE OF COUNTY ROAD 101 HOMES Initial est. Re -sale Re -sale Committee costs of Realtors Net Appraisal Appraisal Assumed sale incl. Cost Gain or County IOCP Address Low est. High est. Price repairs at 6% Loss) ROW need Offer 3030 Co. Rd. 101 215,000 250,000 241,900 2,200 14,514 186 3,978 4020 Co. Rd. 101 170,000 180,000 170,000 5,000 10,200 31,200 18,737 90,000 17915 30th PI 180,000 200,000 204,900 4,000 12,294 11,394 10,455 140,000 17915 Co. Rd. 24 234,000 245,000 243,900 2,200 14,634 12,066 13,585 17825 Co. Rd. 24 145,000 185,000 180,000 11,300 10,800 22,100 7,200 95,000 3225 Co. Rd. 101 185,000 200,000 200,000 13,000 12,000 15,000 0 90,000 17920 30th PI 155,000 200,000 155,000 1,000 9,300 55,300 10,950 50,000 3950 Co. Rd. 101 to be retained by the City Utility Department) 1,395,700 38,700 83,742 122,742 64,905 APPENDIX C Individual Offer letters on Properties Kimberly Romine - interested in the property @ 3225 CSAH 101 (Vicary) Kevin May - interested in the property @ 17915 30th Place (Anderson) Robert Wostrel - interested in the properties @ 17915 & 17920 30th Place Anderson & Phad) Carol Wefel - interested in the property @ 17915 30th Place (Anderson) June 1, 2001 Kimberly A. Romine 3200 Queensland Lane N Plymouth, MN 55447 SUBJECT: ACQUISITION OF PROPERTY 3225 COUNTY ROAD 101 CITY PROJECT NO. 9005 Dear Kimberly: I am responding to your May 25, 2001 letter to Mayor Joy Tierney making an offer to acquire the property which the City owns at 3225 County Road 101. This property is one of eight houses which the City purchased along County Road 101 in conjunction with the Hennepin County Department of Transportation associated with the County Road 101 roadway improvement project. The City now owns eight properties along County Road 101. The agreement entered into between the City and the County states that after a majority of the roadway improvement project is completed, that these properties will be sold by the City for fair market value. The City is waiting to market the properties until any prospective purchaser will be able to view any impact to the property from the road improvement project. The City Council has not yet made a determination on the process for reselling the properties. City staff will be making a recommendation to the City Council on a proposed process either late this summer or early fall. I would recommend that you contact Steve Deuth, Right -of -Way Technician in the Engineering Division, later this summer to see if a schedule and process has been established for sale of the properties. Steve can be reached at 763-509-5531. I wish to thank you for showing interest in the purchase of the property, and will continue to show interest in purchasing the property for fair market value. Sincerely, Fred G. Moore, P.E. Director of Public Works cc: Mayor and City Council DATEMP\Romine 6 1.dM Steve Deuth From: Kevin May [kcm7873@yahoo.com] Sent: Monday, September 17, 2001 3:23 PM To: SDeuth@ci.plymouth.mn.us Subject: 17915 30th PI N Hi, As you have probably seen from a forwarded mail from Dan Faulkner, I am interested in the house at 17915 30th PI N. This is a house that was bought by the city due to the work project #9005. 1 have several questions about the house and the possible purchase of it. 1. Will the house be sold through an independent realtor or through the city? 2. Will the asking price be based on the County assessment ($136,000) or the price the city bought it for($200,000) or somewhere in the middle? 3. When, approximately, will the house go up for sale? 4. Is it possible to tour the house before it goes up for sale? 5. Could I have a list of other properties that the City is going to be selling? My Fiance and I are first time buyers, so please forgive us if we are a little naive on these subjects. Thank you very much Kevin May 26 W 22nd St, Apt 308 Minneapolis, MN 55404 612) 872-4975 (night) 952) 933-3222 x205 (day) Terrorist Attacks on U.S. - How can you help? Donate cash, emergency relief information http://dailynews.yahoo.com/fc/US/Emergency_lnformation/ ROBERT C. WOSTREL September 8, 2001 City of Plymouth Department of Engineering 3400 Plymouth Boulevard Plymouth, Minnesota 55447 To Whom It May Concern: 90OF 18405 -31sT AVENUE NORTH PLYMOUTH, MINNESOTA 55447 I am writing this letter at your request per our telephone conversation on Friday August 17th to inform you of my intentions should I be able to purchase the properties located at 17920 — 30th Place North, and 17915 — 30th Place North in Plymouth. My intent is to use one of the properties as my residence, and the other would possibly be my son's and his wife's permanent residence. As I am sure you know, the property value has decreased substantially due to the loss of property ceded to the County Road 101 expansion, and the extensive traffic and resulting traffic noise. Following are my assessments of the two properties. GRAYAND WHITE RAMBLER LOCATED AT 17920 — 30TH PLACE NORTH EXTERIOR: Need extensive repair: Siding Soffits Fascia Gutters Windows Brick INTERIOR: Need replacement: Concrete in front of house Driveway Concrete patio rear of house Needs repair up and down — could be extensive in some rooms. LANDSCAPING: At least one dead tree in front yard; several others need attention or removal. Landscaping in general needs to be redone, with re -grading a priority, to eliminate any present or future water problems. I can see an easy $60,000 needed in upgrades and repairs, both inside and outside of this home, to make it an asset to the City of Plymouth and its neighborhood. I am willing to do so if the property at 17920 — 30th Place North could be acquired for the sum of $80,000 or somewhere near that figure. City of Plymouth Department of Engineering September 8, 2001 Page Two L -SHAPED RAMBLER LOCATED AT 17915 — 30TH PLACE NORTH This property has some of the same problems I mentioned previously, especially pertaining to interior repair and updating requirements. I estimate $45,000 to $50,000 worth of remodeling and repairs. For the reasons mentioned, I believe a purchase price of $75,000 would be reasonable. I appreciate your time taken to discuss this matter with me. As a long-time resident of Plymouth (not far from these properties), I have an interest in maintaining the property values, as well as preserving the aesthetic appeal of this wonderful area. Please consider me an extremely interested party, and keep me informed of any developments in the sale of these two properties. Sincerely, Robert C. Wostrel 763) 473-7235 Robert C. Wostrel January 17, 2002 City of Plymouth Mayor and City Council Members 3400 Plymouth Boulevard Plymouth, Minnesota 55447 18405 — 31 st Avenue North Plvmouth, Minnesota 55447 Dear Mayor Tierney and Council Members Hewitt, Slavik, Stein, Black, Harstad, and Johnson: I am writing this letter to express my concern regarding the method of sale of the properties located at 17920 — 30th Place North, and 17915 — 30th Place North in Plymouth, and my interest therein. I feel any plan adopted by the City should include anyone interested in the properties, with preference given to City of Plymouth residents, especially those with intent to occupy the residence after purchase. Owner/occupancy is the most desirable result, as it is most beneficial to maintaining the property value, not to mention the quality and harmony of the neighborhood, especially in an established neighborhood such as Greentree. I propose that the bidding plan would be the most logical and fairest method. The winning bidder would be required to commit within 3 days, or the bid would go to the next highest bidder. The highest bidder would have 60 days to close with 1% down at time of commitment, non-refundable. I do not think involving a realtor would be practical, as this would only add costs to the City and potential buyers. The sooner these properties are sold, the better, as unoccupied properties have a tendency to deteriorate faster, which further reduces the value of the home. I have visually inspected the homes, and they appear to be in livable condition, but are definitely in need of several thousands of dollars of remodeling and cosmetic repair (est. $50,000 — 60,000) to be an asset to the city and neighborhood. I have already sent a letter to the engineering department outlining my intentions, which would be to purchase, remodel, and make our home in one of the two pieces of property I am interested in. In closing I would ask that you please consider the above, and keep me informed on any further developments pertaining to the sale of these properties. Respectfully, Robert C. Wostrel 763)473-7235 January 3, 2002 Stephen Deuth Senior Engineering Technician City of Plymouth 3400 Plymouth Blvd. Plymouth, MN 55447 Dear Mr. Deuth: Thank you for the information of Plymouth purchased to make Highway 101. I understand the these houses. I am interested Plymouth, MN. regarding the houses the City room for the expansion of City of Plymouth will be selling in the house at 17915 30th Place I have read the inspection report by Brindman Appraisals for 17915 30th Place and have also looked from the outside at the house. I also spoke to a neighbor (who asked what I was doing) who knew of the house. He stated the house (he believed) had water/moisture problems- both roof and ground (basement). I have been looking for a rambler for some time. Mostly the houses have been repaired before being put on the market and the price reflects new roofs, mechanicals, carpeting, etc. I am a long-time resident of Plymouth and hope that plus being a senior citizen might give the opportunity to purchase prior to other interested parties. The Brindman report shows items in need of replacement or extensive repair. The roof (which now has a second layer of shingles with evidence of moisture in attic) needs probably, replacement, the fireplaces are in need of parts replacement and/or cleaning and maintenance (damper does not work properly) The windows will need extensive repair or replacement to open and to seal off outside weather. Rewiring needs to be done (multiple wiring to a single lug). The deck needs replacement (decaying wood). The water heater and water softener need replacement or repair. The lot will need grading to fix existing drainage problems and any that might be on the East side. Also noise barrier to quiet highway traffic noise, such as trees would need to be planted by buyer. There may be further defects that weren't checked (inside walls, supports, insects, toxins, etc.) - due to the age, and moisture problems, much could be possible. With the above statements, I am aware the house is to be sold in "as is" condition and again would like the opportunity to view (inside) the house and to purchase the house. Please call me at 763-476-1156 for questions or any further information, such as viewing, bidding, etc. Sincerely, 17010 - 11th Avenue North Plymouth, MN 55447 Page 1,tf APPENDIX D Realtor Lists & Written Proposals Initial list of 25 Realtors that were mailed a solicitation letter on December 11, 2001 for a commission fee proposal. Response proposal letters from the initial mailing and follow up letters to committee request for additional information from Realtors. Compilation of Realtor bid proposals from their original letters. LIST OF PLYMOUTH REALTORS FOR MAILING OF DECEMBER 11, 2001 1. Adam Associates - 10700 CSAH 15 2. Bedrock Real Estate - 16405 91h Ave. 3. Burnet Realty - 4100 Berkshire Lane 4. Cavanaugh Realty - 3105 Niagara Lane 5. Coldwell Banker - 4485 State Hwy. 169 6. Counselor Realty - 10405 6`h Ave. 7. Edina Realty - 3020 Harbor Lane 8. Edina Realty - 4425 State Hwy. 169 9. Entry One - 13895 Industrial Park Blvd., Suite 145 10. John Hite Real Estate - 16915 32nd Ave. 11. Lighthouse Realty - 2820 Vicksburg Lane 12. Market Realty - 3700 Vinewood Lane 13. Meadowbrook Properties - 11425 State Hwy 55 14. Plymouth Realty - 10800 CSAH 15 15. Quest Development - 10700 Old Cty Rd. 15 16. Re/Max Results - 2605 Campus Drive 17. James M. Raddatz Real Estate - 3025 Harbor Lane 18. Re/Max Results - 2604 Campus Drive 19. Sellers Home Network - 3300 Fernbrook Lane 20. Sentinel Realty - 2600 Fernbrook Lane 21. United Properties - 505 State Hwy. 169 22. Counselor Realty - 4585 Norwood Lane 23. Liberty Realty - 11282 491h Ave. 24. Edina Realty - 150 Lake Street West, Wayzata 25. Coldwell Banker - 7550 France Ave., Edina Bedrock Real Estate, Inc. 16405 Ninth Avenue North Plymouth, MN 55447 763475-9320 phone 763475-9339 fax December 26, 2001 SUBJECT: REQUEST FOR FEE PROPOSAL TO SELL 7 SINGLE-FAMILY HOMES ALONG CSAH 101, C.P. 9005 Dear Mr. Steve Deuth, Bedrock Real Estate is very excited to work with the City of Plymouth in the disposition of the above homes. Please accept my fee proposal as follows: Bedrock Real Estate will list and sell the above properties at a commission rate of 3.9% of the sales price. This commission fee will include the following services: Multiple Listing Service on the Northstar MLS System which will reach every licensed real estate agent in the state of Minnesota with the details of the properties. Taking all inquiries and setting up all showing appointments for the properties to qualified buyers. A Supra security lock box, standard in the industry, on each property for access by authorized parties. A Bedrock Real Estate FOR SALE sign on each property. Negotiating purchase agreements with potential buyers and the city, which includes professional real estate consultation, communications, and research as required. Determining current market values and reasonable repairs to successfully sell these properties within a 60-90 day time period. Newspaper advertising will be billed directly to the city of Plymouth. Bedrock Real Estate, Inc. will write the ads and field all phone calls and showings to qualified buyers. A cap on advertising dollars to be spent can be determined by the City. An OPEN HOUSE for each property will be scheduled so that the general public may be notified and allowed to view these properties. As president of Bedrock Real Estate, Inc., I will be your main contact and look forward to being of service to you and the City of Plymouth. I consider it both an honor and an opportunity. Bedrock Real Estate was founded here in Plymouth in 1994. I have had a Minnesota Real Estate Sales License since 1987, a Minnesota Brokers License since 1993, and a Real Property Appraisers License since 1995. With 15 years of real estate sales experience and my constant dedication to doing a professional and thorough job, I believe you will be very glad that you chose to work with me on this project. Sincerely yours, Therese Griffith President Bedrock Real Estate, Inc. FROM : GRIFFITH APPRAISALS/BEDROCK PHONE NO. : 7634759339 Jan. 03 2002 10:02AM P1 Bedrock Real Estate, Inc. 16405 Ninth Avenue North Plymouth, MN 55447 763475-9320 phone 763475-9339 fax January 3, 2002 SUBJECT: ADDENDUM TO FEE PROPOSAL TO SELL 7 SINGLE-FAMILY HOMES ALONG CSAH 101, C.P. 9005 Dear Mr. Steve Deuth, As per our phone conversation on January 2, 2002, I would like to clarify my fee proposal dated December 26, 2001. The commission rate of 3.90/6 will be divided as follows: 2.7% will be paid to the selling broker by Bedrock Real Estate, Inc., and 1.2% of the commission will be retained by Bedrock, Inc. for the services listed on the proposal submitted. All fees are paid at the closing of sales. Would it be possible for me to attend the meeting of the City Council on January 8th regarding these properties so that I may be of assistance, or answer any questions the Council may have? Sincerely yours, Therese Griffith President Bedrock Real Estate, Inc. FROM : GRIFFITH APPRAISALS/BEDROCK PHONE NO. : 7634759339 Jan. 04 2002 03:20PM P1 Bedrock Real Estate, Inc. 16405 Ninth Avenue North Plymouth, MN 55447 763.475-93211 phone 763-475-9339 fax January 4, 2002 SUBJECT: ADDENDUM TO FEE PROPOSAL TO SELL 7 STNOLE-FAMILY HOMES ALONG CSAH 101, C.P. 9005 Dear Mr. Steve Death, The 3.9% commission rate on the proposal submitted on December 26th, 2001 is effective for the above properties listed individually. The rate will not change if less than 7 of the properties are listed_ The rate will remain constant regardless of how many of the properties are listed with Bedrock Real Estate, Inc. In consideration of the size of my company, please realize that as a small business, I can dedicate my energies exclusively to this project. My husband, Thomas Griffith, is also a Minnesota licensed Real Estate Agent under my brokerage. He will be my assistant on the project. He has 20 years of real estate experience as a real estate appraiser and 5 years as a sales agent_ With our knowledge of the industry behind you, I assure you, the City of Plymouth will be pleased with the service and results you will get from Bedrock Real Estate, Inc. Sincerely, Therese Griffith Presidient Bedrock Real Estate, Inc. 7 PaJAPE FROM : GRIFFITH APPRAISALS/BEDROCK PHONE NO. : 7634759339 Jan. 04 2002 03:21PM P2 Productivity Report Page 1 of 2 office: BEDROCK REAL Broker: THERESE GRIFFITHESTATE --- Productivity Report Reported for: THERESE GRIFFITH Current Office: BEDROCK REAL ESTATE Covered period: 11112000 -11412002 Single Family Residential Res MLS Address List List Sales Sales Sales Broker Portion Broker portion of Sales MLS No. No- Ust Office Broker Office Brokee Price of sales We office Broker Otnee Broker ce aroker Price Of Sales Transaction 1460315 6300 salmi Sales 1 1020690 1 1 2637 ST MENDELSSOHN 6349 14748 7666 13210 SZ70.000 135,000 0.5 4!282000 STREET NE ELK AVE N 1483113 2615 Z 6UCHANAN ST 3429 74672 7666 13210 132,000 66,000 0,5 5131/2000 NE 3 1261A HO 8722 68496 7666 13210 147.000 73,500 0.5 9/20/2000 4 1514501 14275E H 5T 1130 84527122138 7666 13210 135,000 67,500 0.5 928/,2000 5 53LTO6 529 CAARISSA 4345 1%6 13210 163.000 61,500 0.5 11/302000 6 1 358 3900 GARFIELD 5242 3532 7666 13210 219,800 109,900 0.5 11/30Y1000AVE. SO. 7 1504.111 4812 7666 13210 1344 84048 118,500 59,250 0.5 1/29/2001 A6TEVENS 8 1686325 730 67TH AVE N 1547 84422 7W6 13210 138,900 69,950 0,5 8!1/2001 9 16074t4. 3837 1 STH AVE 5W2 2597 7666 13210 162,0W 81,000 0.5 8!6/2001 10 Tow 0, 3936 OH AVE 7 13210 3026 74906 134,900 67,450 0.5 arZ32o01 11 Imm" 7583 DUNMORE 7666 13210 7666 GRIFF} 122.500 61,250 0.5 8/3112001ROAD No records were found that matched your criteria for Lots & Land property. MultiFamily Broker Broker Broker Broker NIMLS Mui MLS No. Address Ust List sales sales sales Portion Portion of sales office Broker Otnee Broker ce aroker Price Of Transaction Data salmi Sales 1 1020690 1 1503176 2637 ST 1062 80086 7666 13210 105,000 52,500 0.5 8/912000 STREET NE ELK Commercial/Mixed Use Broker Broker Corn NI MLS Address List List sales Sales Sales Portion Portion of Sales office Broker Office Broke Price of Twonseation Date salmi 1 1020690 2750 JOHNSON GM 13490 7666 13210 265,000 132,5W 0.5 11/27!2001 STREET NE This report has been generated on Jan 4 2002 02:41PM Page 1 of 1 Steve Deuth From: therese griffith [bedrockrealty@mediaone.net] Sent: Thursday, January 10, 2002 4:30 PM To: sdeuth@ci.plymouth.mn.us Subject: Fee Proposal to sell Plymouth owned homes on CSAH 101, CP 9005 Dear Mr. Steve Deuth, Regarding the fee proposal dated December 26, 2001 Bedrock Real Estate would like to adjust the issue of newspaper advertising to read as follows: The cost of any newspaper advertising will be covered by Bedrock Real Estate, Inc. The amount of advertising dollars to be spent will be determined by Bedrock. In addition, I would like the City Council to know that as an employee of Griffith Appraisals, Inc. I was involved in the market research done for 58 appraisals in the city of Plymouth in the year 2001. As a result, I feel that I am very familiar with, and quailified to sell homes here in the Plymouth real estate market. Bedrock Real Estate, Inc. has established itself as a referral only company and all my business has come from satisfied clients who have recommended me to their friends and relatives. I have a two agent office dedicated to professional, high quality real estate service. My goalsare to offer the best service for the best price. A large office with staff and big self -promotions would not allow me to offer relatively low commission rates. When selecting a real estate agency to sell these properties, please keep in mind that a small company reaches the same number of people through the MLS, internet, and a FOR SALE sign as a larger company. Thank you for considering Bedrock Real Estate, Inc. for this project. 1/16/02 Gordy Rabens, Broker Meadowbrook Properties f Integrity With Results Homes • Lots pun IvA 11425 Highway 55 Plymouth, MN 55441 Office: (763) 546-4755 Fax: (763) 546-4920 Cell: (612) 1011JOW NYS An affiliate of Edina Realty Home Services, a complete real estate services company January 8, 2002 Mr. Steve Deuth Engineering City of Plymouth 3400 Plymouth Boulevard Plymouth, Minnesota 55447 Re: Supplemental proposal for Disposition of Co. Rd. 101 Properties Dear Steve: This letter will supplement our proposal covering the above referenced matter which was addressed to Jim Barnes and submitted to the City of Plymouth on October 1, 2001. You have asked us to present a cost proposal to market the properties in accordance with our initial proposal. We are willing to charge a commission of 5% of the sale price provided that the following conditions are agreed upon: 1) Properties will be listed on the MLS at 6% and 1 % will be refunded from the selling side) to the City at closing. This insures that the cooperating agents have an incentive to show the property. 2) All properties will be listed with The Buffham Team at Edina Realty, Inc. This is necessary because a couple of the properties will be far more difficult to market given the distressed condition and the fact that the City is selling the properties in "as -is" condition. 3) Our team will be able to hold multiple Open Houses simultaneously which provides a synergy to our marketing efforts. Rather than competing with another agent during an Open House, our Team would encourage potential Buyers to look at the other properties we have open and are marketing. 4) As we stated in our proposal, we believe that a couple of the properties should be marketed to investors. We ourselves are seasoned investors and do a lot of business with investment and commercial clients/properties. We currently have a small commercial building listed in Hamel and we located all of the Famous Dave's sites in the Minneapolis area (including the one on PLYMOUTH/ HIGHWAY 55 OFFICE 3021 Harbor Lane Plymouth, MN 55447 PHONE 612.5677000 FAX 612.5677096 An affiliate of Edina Realty Home Services, a complete real estate services company 5) Highway 55 — the former Dairy Queen). Investment property is not marketed the same as residential property. 6) Listing the properties with one agent provides the City with a single person to communicate with thereby affording the City and the agent better control over the transactions. A good analogy would be that the City would not hire multiple contractors to rebuild Co. Rd. 101. 7) We will need a schedule and designs to show prospective buyers how the completed landscape and paths will look — the properties will likely be sold prior to completion of these items. We feel very strongly that the properties be listed with one agent (whether us or someone else). If the City elects to sell the properties on their own, the public perception would be that there is a bargain to be had (similar to HUD properties) and the price to the City would be less than if marketed on the open market. In addition, the market that the City would attract is far less limited than that accessed by the open market. Time is money and the longer the properties are held and out for sale, the greater expense and the smaller the purchase price Please feel free to call us to discuss our proposal and any other details or questions that you might have. Thank you again for allowing the chance to offer this proposal to the City of Plymouth. Sincerely, Tim and Pat Buffham PLYMOUTH/HIGHWAY 55 OFFICE 3021 Harbor Lane Plymouth, MN 55447 PHONE 612-567.7000 FAX 612 567,7096 Wednesday, January 16, 2002 at 1:52 p.m. Hi! Steve, this is Tim Buffham with Edina Realty returning your call in regard to the two houses. Yes, we would be interested in those two houses and we would agree to the 5% effective commission. We would list them for 6% and give you 1% back upon a successful closing. Yes, we would still agree to that proposal for those two houses. Any questions, call me back 612-799-5255. That's my cell phone number. Thanks. D:\TEMP\VM_Buffh m.doc www.edinarealty.com AN AFFILIATE OF EDINA REALTY HOME SERVICES, A COMPLETE REAL- ESTATE SERVICES COMPANY January 15, 2001 Honorable Mayor and Members of the Plymouth City Council City of Plymouth 3400 Plymouth Boulevard Plymouth, MN 55447 RE: PROPOSAL TO SELL THREE CITY -OWNED HOMES 3225 COUNTY ROAD 101 NORTH 1791530TH PLACE NORTH 1792030TH PLACE NORTH Dear Mayor and Council Members: In November of 2000, 1 was contacted by Plymouth City Staff and asked to submit a proposal for the marketing of three properties within the City of Plymouth. Subsequently, on November 28, 2000, 1 submitted a letter of proposal and market analysis for the sale of the three properties see enclosed copy). On December 6, 2000, City Staff informed me that based on the information they obtained from auctioneers and another realtor, they would not be listing the properties with a realtor, but that they would be marketing the properties themselves. Soon after on December 8, 2000, 1 approached Fred Moore and discussed a negotiated commission in the event that I found buyers for the three properties. Fred indicated that he would give consideration to my request for a negotiated commission in this instance. After speaking with Fred, I met with June Patrin, a realtor in my office and we discussed the possibility of having these properties being used for affordable housing. We then approached Interfaith Outreach and Community Partners with that idea. They expressed interest and personally wanted to view the properties. Working closely with City Staff on two occasions June and I showed the properties to the Interfaith Outreach Board members and Staff (December 14th and December 29th) I then met with Rebecca Stoen, HRA Specialist, regarding opportunities for City involvement and or financial programs available to assist Interfaith Outreach in the purchase of these specific properties. In further discussion with representatives of Interfaith Outreach, June and I were informed that it was their intent to make an offer to purchase all three properties for affordable housing. It is my understanding that their offer will be a creative proposal requesting the City to participate financially, as well as the possibility of financial help from local churches. WAYZATA/LAKE MINNETONKA OFFICE 150 Lake Street West Suite 100 Wayzata MN 55391 PHONE 952 475.2411 FAX 952 476 5333 Honorable Mayor and Members of the Plymouth City Council January 15, 2001 Page 2 Based on the above background information, June and I propose the following: 1. We will assist the City and Interfaith Outreach to complete all three transactions. 2. We will be ret-ponsible for all paper work needed for the closing of each property. 3. We will be available to show the properties to officers of Interfaith Outreach at any time to assist them in the process of obtaining bids, etc. In the spirit of cooperation and in an effort to provide affordable housing in the City of Plymouth, Edina Realty, June and I propose the following fees for our services rendered, including time, expertise, marketing, and liability, $3,000 lump sum per each transaction or as an alternative 2.5% for the sale of each property based on the negotiated transaction price. The original proposal included fees ranging from 6% to 7%. if the properties were sold on MLS at the high end of the range in the original proposal, the total commissions on all three would have reached $35,000. As part of our charitable contribution and in an effort to make this a viable transaction, Edina Realty, June, and I hereby agree to have our lump sum fee of $3,000 for each property (or the alternative 2.5%) be all-inclusive. We hereby request that the City Staff be authorized to prepare and enter into an agreement based on the terms set forth in this letter. As experienced realtors with knowledge of Plymouth and the metropolitan area, we are extremely pleased to be a part of this excellent chance to provide affordable housing opportunities to several families. We appreciate the opportunity to work with the City and Interfaith Outreach on this worthwhile endeavor. Sincerely, JRS:dls Enclosure c: Dwight Johnson Fred Moore Steve Deuth Wfie Patrin Realtor Z bKeith AndersonI/ Broker www.edinarealty.com AN AFFILIATE OF EDINA REALTY HOME SERVICES, A COMPLETE REAL- ESTATE SERVICES COMPANY December 27, 2001 The Honorable Mayor and Members of the City Council City of Plymouth 3400 Plymouth Boulevard Plymouth, MN 55447 RE: PROPOSAL TO SELL SEVEN CITY -OWNED HOMES Dear Mayor and Council Members: This letter is in response to a letter from Steve Deuth dated December 20, 2001 requesting a fee proposal for selling seven City -owned homes in the vicinity of State Highway 101 and County Road 24. 1 originally viewed the first three properties that were acquired in November 2000, and submitted a proposal to assist in selling the homes (see enclosed copy). It was at that time that I brought Interfaith Outreach to the City staff to view these three properties for consideration of purchasing one or all. BACKGROUND In October 2001, 1 viewed five additional properties and submitted another proposal to Steve Deuth for consideration by a staff committee for the sale of the homes. (See enclosed copy.) It was determined at that time that the City would retain ownership of one home, thereby having seven homes for potential placement on the market. Following is my proposal as requested in Steve's letter of December 201H PROPOSAL It is my understanding that the City wants the lowest fee possible to sell the homes. I spoke with Keith Anderson, Managing Broker, Edina Realty, we are prepared to submit the following for review and consideration for a full-service real estate firm to list and sell up to seven homes in the vicinity of County Roads 101 and 24. It is also my understanding that Interfaith Outreach may still have an interest in purchasing one or more of the seven homes. If that is the case, I propose that they be listed as an exception from the Listing Agreement for up to three weeks from the decision of the City Council to sell the homes. If they do not reach an agreement with the City by that time then those homes should be included in the overall list of properties to be sold. wAYZATA/LAKE MINNETONKA OFFICE 150 Lake Street West Suite 100 Wayzata MN 55391 PHONE 952 475.241 1 FAX 952 476 5333 The Honorable Mayor and Members of the City Council December 27, 2001 Page 2 Following are the terms of my proposal: A one-year exclusive listing commitment from the City to support the overall cost to market all of the properties effectively is required. In consideration for an exclusive listing of all seven homes for a period of one year, we will market the homes for a commission rate of 6%, and provide the services of a full- service real estate company, with the provision that with each closed sale on a property, Edina Realty will rebate 1% of the purchase price to the City. Therefore, the payout for each sale will be 5% but the properties can be more effectively marketed on MLS for a 6% payout that allows a buyer/broker commission of 2.7% on each sale. (Based on the traditional commission split of 55% to the listing side and 45% to the selling side.) A 6% commission rate is proven to be more attractive to realtors who show the properties, and will provide for more showings and ultimately a quicker sale. Studies have shown that for each percent the commission is increased, the properties sell in a time frame that is approximately 30% quicker. A property listed for 6% with atypical payout (6% x.45 = 2.7%), will draw more realtors and therefore more potential buyers, than properties listed for 5% with a 2.25% payout thereby providing shorter market time. MARKETING Enclosed is a marketing plan that I will enact once a Listing Agreement has been signed by the City of Plymouth. Mayor and Council, I look forward to hearing from you. If you have any questions, please call me at 952-476-3409. Thank you! j erely, R. Sweeney, GRI JRS:dIs Enclosures c: Steve Deuth Keith Anderson MARKETING PLAN STEPS TAKEN FOLLOWING A LISTING AGREEMENT 1. Install a combination lock box for easy access for showings 2. Install a small "step-in" New Listing sign in the yard 3. Submit information to the RMLS (Regional Multiple Listing Service) 4. Submit information to the Internet 5. Submit information to my personal website 6. Order the installation of the large reflective Edina Realty yard sign 7. Order the Edina Realty Home Hotline (your personal home commercial) 8. Create the "Hotline to Hot Properties" dialogue for your commercial 9. Record the "Hotline to Hot Properties" home commercial 10. Create the Home Marketing Binder to leave at your property 11. Create Feature Sheets and/or brochures for prospective buyers 12. Perform "Reverse Prospecting" on the RMLS computer 13. Fax feature sheets to the prospective buyers' agents 14. Submit your property to be on the Edina Realty office tour and hold a "Realtors' Open" for all agents of all companies 15. Prepare a "Do you know a buyer for..." mailing 16. Advertise in appropriate publications as needed 17. Hold public Open Houses at our discretion and timetable 18. Make follow-up phone calls after all showing appointments 19. Provide a biweekly written marketing report to you 20. Perform a monthly market up -date information and report findings 21. Present all offers to you promptly and review and evaluate them with you 22. Negotiate the contract terms in your best interest MARKETING PLAN STEPS TAKEN FOLLOWING A LISTING AGREEMENT cont) 23. Prepare an Estimated Net Proceeds for you based on the sales price 24. Coordinate all phases of the title work process for you 25. Follow-up on all aspects of the buyer's financial application 26. Arrange a convenient closing "celebration" appointment time 27. Attend closing "celebration" with you or for you November 28, 2000 Mr. Fred Moore Mr. Steve Deuth Director of Public Works Senior Engineering Technician City of Plymouth City of Plymouth 3400 Plymouth Boulevard 3400 Plymouth Boulevard Plymouth, Minnesota 55447 Plymouth, Minnesota 55447 RE: PROPOSAL TO SELL THREE CITY -OWNED HOMES Dear Fred and Steve: I am pleased to respond to your request for information regarding the listing and sale of three homes owned by the City of Plymouth. Enclosed is the Comparative Market Analysis (CMA) for each home, and this letter outlining the services I will provide through Edina Realty for the following properties located in Plymouth: 3225 County Road 101 North 17915 30th Place North 17920 30'' Place North BACKGROUND ON EDINA REALTY Edina Realty has been a tradition in Minnesota since 1955. Today, Edina Realty operates over 60 offices in three states with annual sales of more than $3.5 billion. Our sales associates are continually rated number one nationally in customer satisfaction. Edina Realty was the first real estate company in Minnesota to own both a mortgage and title company, the first to have a computer service for sales associates and the first to have a Hotline, a 24-hour interactive phone system. WHAT EDINA REALTY WILL DO FOR THE CITY OF PLYMOUTH Marketing As one of the country's largest firms, Edina Realty offers you more experience, better sales tools and more marketing muscle. Our website, www.edinareafy.com, has over 3,000,000 hits per month. Our site offers full-color detailed information and global exposure for all of our listings. Mr. Fred Moore Mr. Steve Deuth November 28, 2000 Page 2 Edina Realty is the number one real estate advertiser in the market utilizing: Colored pictures Visible open house directories Newspapers (local and the Star Tribune) Television Direct mailings Once the properties are listed they will appear on MLS, the Internet, and on our exclusive Hotline,. I will network with 90 associates from our office, another 120 from the two Edina Realty offices in Plymouth, as well as other agents from other firms. Detailed and informative marketing materials will be prepared to promote the individual properties. This should result in expeditious sales and closings on the properties. I will be responsible for all tours and showings and will supervise the required open houses for each property. I will also respond to all telephone inquiries within six hours and all e-mail requests within four hours. My Background and Qualifications Having previously worked for the City of Plymouth for over 20 years, I believe that it is unlikely that you will find another agent with the overall knowledge of Plymouth and expertise in Public Improvement Projects such as the proposed upgrading of County Road 101. My unique background should prove invaluable in marketing the properties with the ability to accurately answer all questions regarding the adjacent improvement project. As a consumer in the real estate market, you will benefit from the services of an experienced realtor throughout the selling process. I will evaluate the properties, provide tips on preparing the properties for sale, and prepare marketing materials and actively market the properties. Edina Realty is able to qualify prospective buyers, complete the purchase agreements, and negotiate the sale. I am able to assist with financing, promote communication between agents and buyers, arrange for inspections, and once the homes are sold, schedule, prepare and participate in the closings. Mr. Fred Moore Mr. Steve Deuth November 28, 2000 Page 3 COMPARATIVE MARKET ANALYSIS (CMA) Details While utilizing the individual appraisals made in. April 2000 for the three properties prior to purchase by the City, my estimate of their present value is based on the following additional information: Sales of comparable properties since January 2000. Price opinion of 11 Edina Realty Sales Associates on November 28, 2000. These Associates are very familiar with the real estate market in Plymouth as well as neighboring communities, and have over 200 years of experience in the real estate industry. Consideration of the impact of upgraded County Road 101 North on each of the properties. Enclosed with this letter are three copies of the CMA for each house. Additional copies will be provided upon request. FEES/COMMISSION The City of Plymouth would pay a commission to Edina Realty, the listing broker, based on a percentage of the selling price as agreed upon in the Listing Agreement for each home. All three properties have special marketing requirements to expedite their sale. Requirements and the estimated range of the market values for the properties are: 3225 County Road 101 North: Range ($160,000 to $185,000) Marketing Challenges Sell as is. Impact of upgraded County Road 101. Relocate existing driveway from County Road 101 to the interior city street. Address problem of garage door on the wrong side after the driveway is relocated: Only bathroom in home is on the second floor. Decking remains after in -ground swimming pool was removed. Recommended asking price: $184,900 with a 6% commission based on the final sale price. Mr. Fred Moore Mr. Steve Deuth November 28, 2000 Page 4 17915 3e Place North: Range ($180,000 to $195,000) Marketing Challenges Sell as is. Impact of upgraded County Road 101. Impact of concrete median extending southerly from County Road 24 beyond the intersection of County Road 101 and 30th Place — preventing a left turn (to the north on County Road 101). Need for interior updating such as painting and new flooring materials. Recommended asking price: $194,900 with a 6% commission based on the final sale price 17920 30'* Place North: Range ($150,000 t0 $175,000) Marketing Challenges Sell as is. Impact of upgraded County Road 101. Impact of concrete median extending southerly from County Road 24 beyond the intersection of County Road 101 and 30th Place — preventing a left tum (to the north on County Road 101). Impact of pet odors. House needs substantial updating and/or renovating on the interior. Settled exterior concrete slab in front of house. May be limited in types of financing available (may not qualify for FHA financing). Recommended asking price: $174,900 with a 7% commission based on the final sale price SUMMARY I recommend'that each home be inspected and provided with a one-year home warranty. ' This can be obtained through Edina Realty for a fee of $599 for each home — based on a cost of 215 for the inspection and $384 for the home warranty. I believe that this would help expedite the sale of each home. With this and the availability of quick closings, the properties should sell quickly. I also recommend that if the properties do not sell within the first three weeks or in the event of negative feedback after six showings, that consideration be given to lowering the asking price of the respective property or properties. Mr. Fred Moore Mr. Steve Deuth November 28, 2000 Page 5 Fred and Steve, I am excited about the opportunity to work with the City of Plymouth and I thank you for the opportunity to submit this proposal. If you have any questions regarding this proposal or the enclosed CMAs, please call me at 952/476-3409. Sincerely, John R. Sweeney JRS/dls Enclosures www.edinarealty.com AN AFFILIATE OF EDINA REALTY HOME SERVICES, A COMPLETE REAL ESTATE SERVICES COMPANY Steve Ganz CRS Nancy Lehrman GRI Miria Thompson Chris Wahl December 27, 2001 City of Plymouth 3400 Plymouth Blvd Plymouth, MN 55441 RE: Fee Proposal — County Road 101 Improvement project between T.H. 55 and 30th Place North for resale of 7 existing properties. This proposal is submitted by Steve Ganz and Nancy Lehrman - Edina Realty Plymouth office 4425 Hwy 169 N., Plymouth, MN. Mr. Ganz and Mrs. Lehrman propose to market these properties as a team. Included with our team will be our full time licensed assistant, Miria Thompson, Chris Wahl with Edina Mortgage will be assisting us with mortgage information and is available to prospective buyers on an on call basis. Marketing strategy: We envision a strategy to market the properties through Edina Realty and the Regional Multiple Listing Service. We would like to include the City of Plymouth in our advertising. This will paint a good picture of the city redeveloping an area. Our team will absorb the cost of such advertising entirely. Marketing plan: A series of advertisements in the following print media: The Sun Sailor, Star Tribune and the Real Estate Book. Brochures will be developed for each property. We will describe work orders as identified by the City of Plymouth, and a description of an "as is" sale situation. The brochure will also include mortgage information for each property as well as a list of the other properties available in this project. Direct mailer to apartment complexes in the cities of New Hope and Plymouth. Properties will be marketed on Edina Realty's web page http://www.edinarealty.com which receives an average of 12,000 hits per day. Agents from both Plymouth offices of Edina Realty will tour the properties and will give us immediate feedback as to price and condition of properties. PLYMOUTH OFFICE 4425 Highway 169 North Plymouth, MN 55442 PHONE 763.559.2894 FAX 763.557.4595 www.edinarealty.com AN AFFILIATE OF EDINA REALTY HOME SERVICES, A COMPLETE REAL ESTATE SE RVICLS COMPANY The properties will be listed on our 24-hour interactive telephone hotline. This gives perspective buyers the ability to gain information on any property at any time, day or night. Through Edina Realty's Guarantee Sale Program we have the ability to guarantee the sale of the buyers backup home, which helps facilitate the sale of the subject properties. We will arrange for an "Open House" extravaganza in which we will hold all properties open simultaneously. Fee Schedule: 5.5% if all properties listed concurrently. 6 % if properties are listed individually throughout the year. Thank you for considering our proposal, and we look forward to the opportunity of working with the City of Plymouth. p Steven G. Ganz CRS Nancy rman GRI 763-557-4554 763-5 74556 PLYMOUTH OFFICE 4425 Highway 169 North Plymouth, MN 55442 PHONE 763.559.2894 FAX 763.557.4595 Sent by: Edina Realty Plymouth 763 557 4595; 01/07/2002 13:59; #497; Page 212 www.edincrechy.com A N A T I I I I A 'I r 0 r r t:) I N A M. I.: A r I Y rt C"> M C R V I (. E S, A C. 0 M l' I F'. T r u t A t. L I A r r r K V I i' S C Q rut P A N Y' January H, 2002 Steve Dcutlt City of Plymoutil 3400 Plymouth Blvd. Plymouth, MN 55441 Dcar Stcvc, In response to your phone call of January 4, 2002; 1) Steve and I parlicipatcd in the sale of 21 properties in the Northwest suburbs this lust year. Thus is in addition to 65 other sales throughout the metro area. or special note — 2 of ticc properties were in the RaUlund Development of Cobblestone Corners — which is part of the Highway 101 cnh;cncentcM project. 2) We will list the 4-5 properties (as opposed to the original 7) at it 5,5% commission, as long as we market them together. We would be using a marketing plat( that references catch of tllc properlics for maxinttun cxposurc. Any other questions please feel free to call Steve Ganz at 763-557-4554 or Nancy I chrntan at 763- 557-4556. Sincere Steven C;. Ganz CRS SG/kns PLYMOUTH OFFICE 447'.', Hielhw+py 169 Nnrth Vtymnwth, MN 55442 PHONE '763.559.1[01 FAX CRAIG "GUS" GASS Realtor` Certified Residential Specialist December 27, 2001 City of Plymouth Project Committee No. 9005 3400 Plymouth Boulevard Plymouth, Minnesota 55447 Dear Project Committee, As per your letter dated December 12, 2001 enclosed is the fee proposal for selling these properties along the Improvement Project along CSAH 101 between T.H. 55 and 30th Place North. Our proposed fee for the disposition of these properties is 4.8% of the selling price. We will also offer a MLS payout of 2.7% of the selling price, which is based on a higher commission rate. Therefore, this will not affect MLS and company activity. In reviewing these properties and attending the short informal meeting and in discussing this proposal with Steve Deuth, Sr. Engineering Technician, it was mentioned that this project letter should be fee oriented. We do feel that some of the properties will need work and others hardly any at all. The list prices will be reflected in this determination. We will be able to do this working with and along side city personnel. Keep in mind we are a full service Real Estate company and offer full Internet capabilities along with a real guarantee program. This would involve us purchasing a backup home when I am the selling agent on a property to avoid contingencies. I am proud to be considered for the proposed selling of seven acquisition properties in Plymouth. Thank you for this opportunity and I look forward to working with you. S erely, raig',` tts" Gass Directs 763-559-8742 Cell: 612-750-6474 3622 COUNTY ROAD 101 SOUTH, #100 • WAYZATA, MN 55391 • BUS. 612-473-9500 • FAX 612-473-5530 counsel6r realty, inc. CRAIG "GUS" GASS Realtor„, Certified Residential Specialist January 7, 2002 City of Plymouth Mr. Steve Deuth Senior Engineering Technician 3400 Plymouth Boulevard Plymouth, Minnesota 55447 Dear Steve Deuth, In response to a request for a personal biography, enclosed you will find a few copies of my credentials that can be found on my web page. This material will best summarize my vast experience, knowledge and ethical moral that I take with me in every transaction. My enclosed credentials will give you the sense that I am worthy of the Plymouth Project number 9005. And prove that this project will be successful when we work together. I am also sticking with the 4.8% listing commission on the sale of these properties whether there are seven properties or as few as five properties. Again, I am proud to be considered for the proposal in Plymouth. Literally, I live and sell Real Estate in the community of Plymouth. I look forward to future discussions of this project. r Sincerely, Crai`Gus” Gass Direct: 763-559-8742 Cell: 612-750-6474 3622 COUNTY ROAD 101 SOUTH, #100 • WAYZATA, MN 55391 • BUS. 612-473-9500 • FAX 612-473-5530 counselor realty, inc. Credentials - Craig "Gus" Gass Craig "Gus" Gass Realtor CRS Page 1 of 1 Top producer since 1976 Certified Residential Specialist, "CRS" Licensed Real estate broker & salesperson Executive Homes Division About Me . New Construction Consultant Counselor Realty Relocation Service to serve out of state Credentials moves Contact Me Referral Network International member Guaranteed Sales Program Inforrnatlon Buyer Representation for Buyers Homeowners Warranty Program Professional Closer & Staff since 1970 Information Free Computerized Analysis of your home for Sellers Owner/Partner Counselor Realty. Inc. Unks Past President of Counselor Realty, Inc. Created Assurance Title - and served as it original President Served as Guarantee Chairperson Created Advertising / Growth Committee and served as its original Chairperson Served as Treasurer for Counselor Realty, Inc. Created the Annual CRI Golf Tournament with proceeds going to non-profit organizations Received Real Estate 10 Presidential Award for being in the top 10 Producers Active member of the Minneapolis & National Association of Realtors Member of the Multiple Listing Service Computerized & Internet Services Computerized Buyer's Credit Check Home Inspections Service Referrals Insurance, Legal & Tax Referrals Handyman & Repair Referrals House Staging Preparations - redecorations & remodeling A [a Q Mss r..f. 2000-2001 Craig Gass - Copy and photos. 2000-2001 Obsidian Bay - Art and Code. http://www.craiggass.com/Credentials.html 1/7/2002 Counselor Realty - CRAIG "GUS" GASS - 888/580-8881 Craig "Gus" Gass Realtor CRS Page 1 of 1 What else is there: 100% "Gus" Work - 0% Guesswork! O9 You will benefit from my 25+ years of knowledge and experience in serving people with real estate needs. Throughout my career, About Me clients and Realtors have looked to me for guidance. And, most importantly, whether a first time or an executive home buyer or Credenfia is seller, you will be provided with personalized and confidential service handling your specific needs. Contact Me To assure your success, I have an experienced and well-trained Information staff and utilize the best mortgage people with the finest and most for Buyers innovative programs in our marketplace. At your closing, you will find that we have retained the most knowledgeable closer in our Information business today. for Sellers When you are selecting your Realtor, contact me. You will be Links represented with a proactive philosophy and I will negotiate on your behalf for the best possible price and terms, as well as All coordinate the entire closing process. YOU WILL PROFIT FROM MY EXPERIENCE! About Me • Credentials • Contact Me • Links Info for Buyers - Info for Sellers 02000 Craig Gass - Copy and photos. 02000 Obsidian_Bay - Art and Code. http://www.craiggass.com/ 1/7/2002 About Me - Craig "Gus" Gass Craig "GUS" Gass Realtor CRS Page 1 of 1 sr,r,l 02000-2001 Craig Gass - Copy and photos. 020002001 Obsidian Bay - Art and Code. http://www.craiggass.com/About.html 1/7/2002 Owner/Partner Counselor Realty. Inc. Past President of Counselor Realty, Inc. ILI Created Assurance Title - and served as it original President Served as Guarantee Chairperson About Me Created Advertising / Growth Committee and served as its original Chairperson Credentials Served as Treasurer for Counselor Realty, Inc. Created the Annual CRI Golf Tournament with proceeds going Contact Me to non-profit organizations Received Real Estate 10 Presidential Award for being in the top Information 10 Producers for Buyers Served in the US Army, received a citation for "Outstanding Service Award" Information Active member of the Minneapolis & National Association of for Sellers Realtors Married 29 years (to the SAME spouse) 3 Children Unks Member of Mt. Olivet Church Active Member of the Minneapolis Downtown Council Supporter of the Boys & Girls Club of Minneapolis Volunteer for "Dinner at your door" Local Resident - Born and Raised in the Twin Cities Metropolitan Area sr,r,l 02000-2001 Craig Gass - Copy and photos. 020002001 Obsidian Bay - Art and Code. http://www.craiggass.com/About.html 1/7/2002 lit ENTRY OR4iIQ'er2 Rp STATE SERVICES Mr. Stephen Deuth City of Plymouth 3400 Plymouth Blvd. Plymouth, MN. 55447 Dear Stephen: Thank You for inviting us to bid on your 7 Single Family Home Sale in 2002. I understand you are seeking only the fee proposal at this time and that a review of proposed marketing plaits would follow for the successful bidder. As discussed at the city initially, Entry One Realty would list, market, and sell them each for 3.5% (no other Agent involved) or 5.5% when cooperating with Agent representing a buyer. We would pass along 2.7% to Buyers' Agent... thereby reducing our side to 2.8%. In the alternative, we would also offer a separate proposal if the City would supply the Buyer (without an Agent). The breakdown as follows: 2.5% - City supplies Buyer (No Agent involved). 4.0% - Tom supplies Buyer (No Buyer Agent involved). 5.0% - Buyer's Agent supplies Buyer. Either way, we would represent the City of Plymouth as your Sellers' Broker and provide a full range of real estate services from start to finish. This is NOT a deep discount approach where we expect you or your staff to do some of our traditional obligations. Please refer to our standard contract. I think we would be a good choice for this project. We are an independent company with more flexibility than bigger, more rigid companies who must follow established guidelines and policy. Second, we are full time real estate professionals earning our complete income selling homes, not simply looking to add to our investment portfolio and "cherry -pick" one or more of these homes without offering it to the general public where mass exposure and demand will ensure you get top dollar. Last, we have been business in Plymouth since 1985... so have a degree of stability, recognition, and professional ethics within our trade. Best Personal Regards Thomas O' Learyd", Broker G 13895 Industrial Park Blvd. Suite 145 Plymouth, MN 55441 763) 557-1557 Q ®mss 01/08/2002 10:15 557-8933 ENTRY ONE INC PAGE 02 1tt ENTRY O}VE 8, 2UO2 L ESTATE SERVICES Mr. Stephen Deuth City of Plymouth 3400 Plymouth Blvd. Plymouth, MN. 55447 Dear Stephen: As a follow-up to our proposal, I do understand that the project will be revised from 7 to 5 homes. Thanks for the heads -up. My proposal will not change. If you choose the "2.5 — 4.0 — 5.0%" option, I would want to get the names of your potentiallyinterestedlistbeforeIbeginmarketingsoastoavoidanyconfusionupfront. Second, my personal sales volume varies each year between $4,000,000 and 8,000,000. It depends a lot on the price range of my clients homes. Last year, it was 4,768,000 (residential only) plus commercial and a large land sale. Residential wasbrokendownasfollows: Sal /000 T nsactio 100-$199 200-$299 4 300-$399 6 400- up Total 19 My primary focus is residential homes. Those sales provide my basic income but I am also a Broker and as such, can use my experience outside the area of general real estate. I have held a MN real estate license since 1985 and 15 of them as a Broker. As such, I feel confident I can bring a wealth of experience into this project. Assuming you choose me, I would like an alert as soon as possible. This wouldhelpmeinplanothercommitmentssoIcangiveyourprojecttheattentionitwillneed_ THANK YOU and 13895 Industrial Park Blvd. Suite 145 Plymouth, MN 55441 763) 557-1557 Best Personal Regards, 910 sellers home network 3300 Fernbrook Lane North Phone: 763.559-2304 Suite 170 Fax: 763.3839370 Plymouth, MN 55447 Toll Free: 800-317-2110 City of Plymouth Email: homes0sellershomenetwork.com 3400 Plymouth Boulevard www.sellershomenetwork.co m Plymouth, MN 55447 Attn: Steve Deuth Dear Steve, Thank you for the opportunity to bid on selling the 7 home sites listed below. Our per residence fee is $2,995.00 with an additional 2.7% sales price paid to the selling agent. We require an initial down payment of $495.00 with the balance ($2,500.00) due upon the closing of each residence. Listed below is a sample of our services provided for the $2,995.00 fee: REALTOR Member Market Analysis (CMA) Buyer Representation Mail "Just Listed" cards Closing Company Discount Listing on Top Web Sites For Sale & Directional signs Regional MLS Network Strong Newspaper Presence In Home Consultation Strong Internet Presence Lock -Box Showing Service Closing Coordinator Warranty for Buyer National referral network Hold Open House Fully Computerized Notify Top 100 Agents In -House Mortgage Broker Monthly CMA update Color Photo Brochures Should each property sell at its purchased price, the following charges would be assessed: Listing Address Purchased Buyer's Agent's SHN set Price 2.7% Commission Listing Fee 3030 Co Rd 101 225,000 6,075 2,995 4020 Co Rd 101 186,000 5,022 2,995 17915 30`I' P1 N 200,000 5,400 2,995 17915 Co Rd 24 215,000 5,805 S2.995 17825 Co Rd 24 180,000 4,860 2,995 3225 Co Rd 101 190,000 5,130 2,995 17920 30`I' P1 N 200,000 5,400 2,995 Total: 1,396,000 37,692 20,965 If you would like any additional information please contact me by phone at 763-559-2304. Should you prefer a consultation I would be pleased to meet with you at your convenience. Sincere] Thomas J. Castaneda Principal Broker and Owner January 2, 2002 TO: City of Plymouth Steve Deuth Sr. Engineering Technician RE: Plymouth Project Proposal My proposal to sell the 7 homes that the City of Plymouth have purchased will be as follows: 4.5% Selling Fee - For each home sold through a co-operating Real Estate Agent (other than myself). 3% Selling Fee - If I sell the home myself through my client resources, open houses, newspaper ads and internet contacts. I appreciate you contacting me about these homes being listed and would love to have the opportunity to market and sell these homes for you. Sincerely, Dave Jaunich Realtor, GRI, Broker 0 FWMW Results January 7, 2002 TO: Steve Deuth Sr. Engineering Technician FROM: Dave Jaunich, Realtor RE/MAX Results Thank you for taking the time to meet with me last week regarding the homes that will be for sale in Plymouth. Along with this letter, there is a copy of my sales and listing transactions for the past year. All of these transactions have sold and closed. My commission proposal for these homes in Plymouth are as follows: 5-7 homes 4.5% 3-4 homes 5% 1-2 homes 5.5% Just a reminder that any homes sold by another agent other than myself will be paid 2.7% of the above referenced percentages. Thanks again for your time. Dave Jaunic Realtor 0 1*/JMW Results DAVID M. JAUNICH 11282 - 49th Avenue North Plymouth, Minnesota 55442 763) 509-9977 GOAL: Establish relationship with reputable builder and become top sales agent in western suburbs EDUCATION: Graduate of Realtors Institute (GRI) March 1999 Licensed Broker February 1996 UNIVERSITY OF MINNESOTA -DULUTH Bachelor of Business Administration Degree May 1991 ST. CLOUD STATE UNIVERSITY Associate Degree in Science May 1989 SALES QUALIFICATIONS: Self -motivated and well organized; able to work independently. Thrive in a competitive, challenging environment. Ability to analyze and solve problems. WORK EXPERIENCE: RESPONSIBILITIES 11/99 to Present Real Estate Sales Sales of existing and new Re/Max Results construction homes, hobby farms, Plymouth, MN commercial and land development 3/96 to 11/99 Owner/Broker Managed small brokerage of Liberty Realty 5 real estate sales people Plymouth, MN 12/93 to 3/96 Real Estate Sales Licensed Realtor selling existing Coldwell Banker Burnet and new construction residential Maple Grove, MN homes 6/91 to 8/93 Second Lieutenant Planning, organizing, coordinating, United States Air Force and directing executive support Minot AFB, North Dakota activities. Student, Undergraduate Reese AFB, Texas Pilot Training (UPT) Program 9/89 to 5/91 Air Force Reserve Responsible for program development Officer Training Corps and supervision of cadets to achieve Duluth, Minnesota individual and corps objectives 5/86 to 5/91 Carpenter Assistant Roughing, finishing, insulating, Jaunich Construction roofing, and cementing of residential Delano, Minnesota and commercial buildings AWARDS AND ACCOMPLISHMENTS: Re/Max Platinum Club 2001, Top 1 % Agent Nationally Re/Max 100% Club 2000, Top 10% Agent Nationally University of Minnesota Dean's List Private Pilot License Financed 100% of College through Summer Work and Scholarships Air Force Commendation Medal, Military Order of World Wars - Award of Merit, Outstanding Unit Award, and National Defense Ribbon ACTIVITIES: Golf, Softball, Camping Collegiate Intramural Captain in Softball and Basketball and Team Member in Football and Floor Hockey Commission Analysis -- Closed Transactions Range: Once: Agent. Printed: 0I-01-01 to 12-12-01 All O.fices All Agents 12-Dec-01 Agent: JAUNICH, DAVID Sale # Street Address Prop Type Type Units Volume Commission Closing Date 29712 6974 PIMA LANE RES -MN Other 1.00 0.00 150.00 01/02/2001 29536 5131 ST STREET N.E. RES -MN Sale 1.00 120,055.00 3,601.65 01/02/2001 29712 6974 PIMA LANE RES -MN Sale 1.00 128,900.00 4,060.35 01/02/2001 29945 207 CRYSTAL LN RES -MN Sale 1.00 143,543.00 4,134.00 01/25/2001 29519 18376 178TH STREET RES -MN Other 1.00 0.00 150.00 01/26/2001 29519 18376 178TH STREET RES -MN Listing 1.00 214,900.00 3,868.20 01/26/2001 29442 4613 ROSEWOOD LANE NOR RES -MN Sale 1.00 149,000.00 4,023.00 01/26/2001 26947 XXX HIGH ST RES -MN Listing 1.00 36,000.00 360.00 03/01/2001 29817 4129 DURHAM COURT RES -MN Other 1.00 0.00 150.00 03/01/2001 30276 15430 88TH STREET RES -MN Other 1.00 0.00 146.00 03/01/2001 30276 15430 88TH STREET RES -MN Sale 1.00 154,250.00 4,858.88 03/01/2001 29817 4129 DURHAM COURT RES -MN Sale 1.00 132,500.00 3,577.50 03/01/2001 27192 XXX HIGH ST RES -MN Listing 1.00 36,000.00 360.00 03/09/2001 30878 XXX 47TH AVE SE RES -MN Sale 1.00 106,900.00 3,367.35 04/02/2001 30877 XXX EATON AVE SE RES -MN Sale 1.00 99,000.00 3,118.50 04/02/2001 30676 705 ELM AVE. RES -MN Listing 1.00 158,000.00 4,740.00 04/24/2001 31874 809 DUTCHMANS WAY RES -MN Listing 1.00 174,900.00 5,247.00 05/25/2001 31709 221 CO RD 30 SW RES -MN Sale 1.00 $2,350,000.00 7,050.00 05/25/2001 30669 504 ROCKFORD AVE. RES -MN Listing 1.00 149,900.00 4,132.70 06/01/2001 30669 504 ROCKFORD AVE. RES -MN Other 1.00 0.00 250.00 06/01/2001 32259 1405 DALE AVE RES -MN Other 1.00 0.00 456.00 06/15/2001 32259 1405 DALE AVE RES -MN Listing 1.00 152,000.00 4,560.00 06/15/2001 32644 315 14TH STREET RES -MN Sale 1.00 149,000.00 0.00 06/20/2001 32644 315 14TH STREET RES -MN Other 1.00 0.00 250.00 06/20/2001 32644 315 14TH STREET RES -MN Listing 1.00 149,000.00 5,960.00 06/20/2001 30033 SEC 14 TOWNSHIP 118 RANG RES -MN Listing 1.00 31,250,000.00 43,750.00 06/20/2001 31960 107 5TH STREET SO RES -MN Sale 1.00 144,000.00 0.00 06/22/2001 31776 809 SOUTHWOOD DR RES -MN Sale 1.00 205,000.00 5,535.00 06/22/2001 31960 107 5TH STREET SO RES -MN Listing 1.00 144,000.00 5,760.00 06/22/2001 32591 216 WESTMINSTER RES -MN Sale 1.00 158,000.00 0.00 06/27/2001 32993 638 COUNTRY LANE RES -MN Listing 1.00 239,500.00 7,059.00 06/27/2001 32591 216 WESTMINSTER RES -MN Other 1.00 0.00 300.00 06/27/2001 32591 216 WESTMINSTER RES -MN Listing 1.00 158,000.00 9,480.00 06/27/2001 32794 235 HISSOP CT RES -MN Sale 1.00 177,800.00 5,334.00 07/02/2001 31633 5258 20TH ST SW RE, S-NIN Sale 1.00 188,000.00 5,227.47 07/02/2001 31436 113 WESTMINSTER AVENUE RES -MN Listing 1.00 104,000.00 3,120.00 07/02/2001 33740 14562 LOCKSLIE TR RES -MN Sale 1.00 173,835.00 5,095.05 07/10/2001 30880 40 ACRES FRANKLIN, MN RES -MN Sale 0.50 591,520.00 59,152.00 07/19/2001 33281 304 17TH ST SO RES -MN Listing 1.00 124,900.00 3,747.00 07/20/2001 33471 212 4TH STREET SOUTH RES -MN Other 1.00 0.00 300.00 07/26/2001 33471 212 4TH STREET SOUTH RES -MN Sale 1.00 150,000.00 0.00 07/26/2001 33471 212 4TH STREET SOUTH RES -MN Listing 1.00 150,000.00 9,000.00 07/26/2001 33873 128 2ND ST SO RES -MN Listing 1.00 121,400.00 3,642.00 07/27/2001 33873 128 2ND ST SO RES -MN Other 1.00 0.00 150.00 07/27/2001 33821 129 3RD ST RES -MN Sale 1.00 134,500.00 0.00 08/01/2001 33821 129 3RD ST RES -MN Listing 1.00 134,500.00 5,380.00 08/01/2001 33543 2735 OAKVIEW LANE RES -MN Other 1.00 0.00 150.00 08/01/2001 33543 2735 OAKVIEW LANE RES -MN Sale 1.00 248,500.00 6,709.50 08/01/2001 33821 129 3RD ST RES -MN Other 1.00 0.00 150.00 08/01/2001 Page 174 Commission Analysis -- Closed Transactions Listing Sales Sales Total Range: Total Ofrce: Trans: Agent. Trans: Volume: Printed: 01-01-01 to 12-12-01 All Offices T 291 nntatsJV A11 Agents 3 ..50 1-2 007,525,7. 12 -Dec -01 34090 131 CRYSTAL CIR RES -MN Sale 1.00 143,525.00 4,305.75 08/01/2001 32994 128 42ND STREET RES -MN Sale 1.00 232,000.00 0.00 08/01/2001 32994 128 42ND STREET RES -MN Listing 1.00 232,000.00 9,280.00 08/01/2001 33274 116 WESTMINSTER AVE RES -MN Listing 1.00 144,500.00 4,335.00 08/01/2001 33050 13100 FERRIS ST RES -MN Sale 1.00 223,000.00 5,859.00 08/01/2001 34105 600 RIVER ROAD WEST RES -MN Sale 1.00 160,500.00 4,815.00 08/24/2001 34068 631 PLEASANT ST E RES -MN Sale 1.00 142,000.00 2,794.50 08/24/2001 34849 327 MINDY LN RES -MN Sale 1.00 159,154.00 4,624.00 08/29/2001 34866 729 NORTHWOOD DRIVE RES -MN Listing 1.00 255,000.00 9,817.50 09/14/2001 34146 417 STEVEN ST SE RES -MN Listing 1.00 148,000.00 4,440.00 09/20/2001 34428 9002 WOODHALL CIRCLE RES -MN Listing 1.00 235,000.00 4,230.00 09/20/2001 34428 9002 WOODHALL CIRCLE RES -MN Other 1.00 0.00 150.00 09/20/2001 34146 417 STEVEN ST SE RES -MN Other 1.00 0.00 150.00 09/20/2001 34862 11651 ZION ST NW RES -MN Listing 1.00 139,200.00 4,593.60 09/24/2001 33839 1319 WOODSCREEK DR RES -IAN Other 1.00 0.00 3150.000 09/25/2001 33839 1319 WOODSCREEK DR RES -MN Listing 1.00 232,700.00 6,981.00 09/25/2001 34769 11548 57TH ST RES -MN Other 1.00 0.00 150.00 09/25/2001 34769 11548 57TH ST RES -MN Listing 1.00 148,600.00 4,903.80 09/25/2001 34787 120 MAPLE RIDGE CIRCLE RES -MN Sale 1.00 149,500.00 4,036.50 10/01/2001 34465 8935 OLIVE LANE RES -MN Sale 1.00 178,400.00 4,816.80 10/01/2001 33470 7555 KURT STREET RES -MN Listing 1.00 158,500.00 5,230.50 10/01/2001 35997 152 CRYSTAL CIR RES -MN Sale 1.00 135,530.00 4,065.90 11/01/2001 35395 1908 HILLSBORO AVE NO RES -MN Listing 1.00 164,300.00 1,778.90 11/21/2001 35747 124 WILLOW DRIVE RES -MN Other 1.00 0.00 150.00 12/03/2001 35747 124 WILLOW DRIVE RES -MN Listing 1.00 173,000.00 5,190.00 12/03/2001 35793 11274 49TH AVE N RES -MN Sale 1.00 217,500.00 6,851.25 12/03/2001 35507 14650 41 ST AVE NO RES -MN Sale 1.00 275,000.00 7,425.00 12/03/2001 36158 450 WILLIAM LANE RES -MN Listing 1.00 119,500.00 3,447.00 12/03/2001 36564 5305 72ND CIR RES -MN Sale 1.00 105,300.00 2,737.70 12/06/2001 36570 1908 HILLSBORO AVE N RES -MN Other 1.00 0.00 2,000.00 12/10/2001 List Listing Sales Sales Total Total In- Total Total Prop Type Trans: Volume: Trans: Volume: Trans: Volume: Rets: Commision: Lines: RES -MN 29.00 $5,647,300.00 31.50 $7,825,712.00 60.50 13,473,012.00 0 366,920.85 79 List Listing Sales Sales Total Total In- Total Total Trans: Volume: Trans: Volume: Trans: Volume: Rets: Commision: Lines: T 291 nntatsJV J4/,30 .l/ 5,6 00 00 3 ..50 1-2 007,525,7. 60.50 S13,473,012.00 0 366,920.85 79 Page 175 FEE BID PROPOSALS TO SELL ALL SEVEN HOMES City Project 9005 BEDROCK REAL ESTATE - Therese Griffith Full service bid 3.9% - includes paying buyers agent. Any newspaper advertising would be paid by the City REMAX RESULTS - Dave Jaunich Full service bid 4.5% - if sold through a co-operating agent 3% - if Dave sells the home SELLER HOME NETWORK - Tom Castaneda Full service bid SHN fee of $2,995 on each home 2.7% to buyer's agent ENTRY ONE - Tom O'Leary Full service bid 2.5% - City supplies buyer (No agent involved) 4.0% - Tom supplies buyer (No buyer agent involved) 5.0% - Buyer's agent supplies buyer MEADOWBROOK PROPERTIES - Gordy Rabens Full service bid 4.9% - on all 7 homes with 2.7% going to buyer's agent 5% - on single units, if the process is divided COUNSELOR - Craig Gass Full service bid 4.8% - includes 2.7% to buyer's agent EDINA REALTY - Steve Ganz, Nancy Lehrman Full service bid 5.5% - if all properties listed concurrently 6% - if properties are listed individually throughout the year EDINA REALTY - John Sweeney Full service bid 6% - all inclusive listing with the provision that each closed sale will generate a 1 % rebate from Edina Realty. Therefore, the pay out will be based on 5%. COLDWELL BANKER - Milly Whittington Full service bid 6% - all inclusive listing with 2.7%, if applicable, going to buyer's agent. EDINA REALTY - Tim & Pat Buffham Full service bid 6% - all inclusive listing with the provision that each closed sale will generate a 1 % rebate from Edina Realty. Therefore, the pay out will be based on 5%. EXHIBIT E Interfaith Outreach & Community Partners (IOCP) Correspondence Letter dated January 22, 2001 to Mayor Tierney and City Council proposing to partner with the City of Plymouth to provide three affordable home ownership opportunities. Letter dated September 13, 2001 to Council member Sandy Hewitt thanking her for setting up the upcoming meeting on September 18, 2001 with the committee and also mentioned in the letter were the history and credentials of IOCP. Purchase offer proposal submitted at the September 18, 2001 committee meeting. Five homes are cited in the letter. Proposal narrative dated January 17, 2002 to the committee detailing IOCP's intent and the process to purchase the property at 17915 30th Place (Anderson). January 22, 2001 The Honorable Joy Tierney and Plymouth City Council Members City of Plymouth 3400 Plymouth Blvd N Plymouth, MN 55447 Dear Mayor and Council Members, Outreach Development Corporation (ODC) proposes to partner with the City of Plymouth, Interfaith Outreach and Community Partners (IOCP), several area churches, and local volunteers and businesses to provide three affordable homeownership opportunities in Plymouth. Outreach Development Corporation is a non-profit organization founded by board and committee members of IOCP in June 2000. ODC's mission is to provide affordable housing opportunities to low- and moderate -income households. ODC is very interested in purchasing the homes located at 3225 County Road 101, 17915 and 17920 30`h Place North from the City of Plymouth. Our proposed project includes substantial rehabilitation work to the homes and selling them to low- or moderate -income buyers. Priority would be given to residents and/or employees of Plymouth. Outreach Development Corporation and IOCP successfully completed two similar projects in 2000. In June, 2000 Outreach Development Corporation purchased a single- family home in Long Lake. IOCP helped organize volunteers from area churches. Over three months, 75 volunteers contributed more than 760 hours to make necessary improvements to this home. With the help of secondary financing from the IOCP Housing Fund, West Hennepin Community Builders, and the Minnesota Housing Finance Agency's below market -rate interest first mortgage program, the home was sold to a low- income (less than 50 percent of the area median income) immigrant family of seven that had been living and working in the community for years. In October, 2000 Outreach Development Corporation purchased a home located at 16705 County Road 6 in Plymouth (southwest corner of Dunkirk & Co Rd 6). IOCP organized a group of volunteers to make some minor improvements to the home, and it was sold to a low-income (less than 50 percent of the area median income) single -parent family of three in December. This homebuyer has lived in Plymouth her entire life, and also works in Plymouth. Thanks to the IOCP Housing Fund, Minnesota Housing Finance Agency's below market -rate interest first mortgage program, and the Plymouth HRA's First Time Homebuyer Program, this family was able to realize their dream of homeownership and stay in the community. We commend the City of Plymouth's dedication to and proactive pursuit of its affordable housing goals. We also strongly believe that this proposal presents an opportunity for the City to work directly with local non -profits, community residents and businesses toward these goals. The fact that these homes are close to transportation, employment, schools, churches, and services also makes this an ideal affordable housing project. John Sweeney and June Patrin from Edina Realty made us aware of these properties. Several board and committee members from ODC and IOCP walked through them and developed a detailed proposal that includes estimates of their market values after improvements are made, as well as a list of rehabilitation work necessary to make these homes safe and an asset to the neighborhood and community. These volunteers are real estate, home building, and finance professionals. We respectfully request an opportunity to present this proposal to the City as soon as possible. Thank you for taking the time to consider our request. We look forward to discussing this exciting opportunity with you in greater detail. In the meantime, please call me with any questions at (952) 473-2436. Sincerely, LaDonna Hoy, Board of Directors, Outreach Development Corporation cc: Dwight Johnson, City Manager Anne Hurlburt, Community Development Director Ed Goldsmith, HRA Supervisor OUTREACH DEVELOPMENT CORPORATION r._. L11C Grand Avenue North, Wayzata, MN 55391 952) 473-2436 September 13, 2001 Sandy Hewitt Plymouth City Council member, HRA Board member 3400 Plymouth Boulevard Plymouth, NvIN 55447 Dear Councilmember Hewitt, Thank you for scheduling a meeting with members of Outreach Development Corporation and Interfaith Outreach & Community Partners to discuss affordable housing opportunities in Plymouth. In January 2001, Outreach Development Corporation (ODC) submitted the attached letter indicating interest in purchasing three of the properties acquired by the City as part of the County Road 101 Improvement Project. The purpose of this letter is to reaffirm our strong interest and provide background information describing our strengths as a potential partner. Outreach Development Corporation (ODC) proposes to partner with the City of Plymouth, Interfaith Outreach & Community Partners (IOCP), the faith community, and volunteers and businesses to provide affordable housing opportunities in Plymouth. Outreach Development Corporation is a 501(c)(3), non-profit organization founded by board and committee members of IOCP in June 2000. ODC's mission is to provide affordable housing opportunities to low-income households. Since June 2000, Outreach Development Corporation has acquired and rehabilitated three single- family homes. Nearly 150 volunteers contributed more than 1,500 hours and materials and services valued at several thousand dollars to the projects. The first home, located in Long Lake, was sold to a low-income immigrant family of seven that has been living and working in the communivy for years. The second home, located in Plymouth, was sold to a low-income single -parent family. This homebuyer has lived in Plymouth her entire life, and also works in Plymouth. The third home, also in Plymouth, is near completion. Interfaith Outreach & Community Partners has a twenty-year history of providing housing assistance to Pl-,mouth residents. In 2000, IOCP provided 583,160 in financial assistance to thirteen Plymouth households to help them purchase, rehabilitate, or prevent foreclosure on their homes. IOCP also provided $152,944 in emergency housing assistance to 162 Plymouth households to prevent homelessness. Currently; IOCP is partnering with the City of Plymouth to provide do-vN'npavment and closing cost assistance to at least five low-income households purchasing an income -restricted townhome at Rottlund's "Reserve" development. Increased and persistent demand for IOCP housing assistance indicates an urgent need for additional affordable housing opportunities in this community; and the city -owned properties off of County Road 101 are conveniently located near transportation, employment, schools, churches, and services. ODC and IOCP have a successful track record of completing similar projects, the ability to marshal volunteers and donations, the support of the local faith and business community, a long history of providing services to low-income Plymouth residents, and the ability to raise funds. As shown in the attached proposed project description, we also have substantial financial resources to contribute to the project. ODC and IOCP propose to work with the City throughout the home rehabilitation process to ensure that all applicable safety and building codes are met, and to meet other City objectives, such as granting preference to homebuyer candidates who live or work in Plymouth, and considering mechanisms for long-term affordability. A description of proposed project partners and roles, and directories of the IOCP Housing Fund Committee, IOCP Site Search Committee, and Outreach Development Corporation Board of Directors are attached. Also attached are letters of support from pastors of three local congregations: St. Phillip the Deacon Church in Plymouth, Wayzata Community Church in Wayzata, and Holy Name of Jesus Church in Medina. Pastors and parishioners from St. Barnabas, Christ Memorial and Plymouth Presbyterian Churches in Plymouth, St. Bartholomew's in Wayzata, and St. Edward's in Orono have also requested an opportunity to participate in an affordable housing project. The Plymouth Lions offered to recruit skilled laborers from their group to volunteer on a rehabilitation project. The need for affordable housing in this community is staggering. ODC and IOCP propose to partner with the City on a project that will create affordable homeownership opportunities for low-income Plymouth residents, and coalesce wide community support and involvement from all sectors. We look forward to meeting with you on September 18, and to discussing our proposal in greater detail. In the meantime, if you have any questions, please contact LaDonna Hoy or Andrea Brennan at IOCP at (952) 473-2436. Sincerely, 4" pdf,6,is-c - LaDonna Hoy Executive Director, Interfaith Outreach & Community Partners Board member, Outreach Development Corporation Enclosures (6) Interfaith Outreach & Community Partners (IOCP) Housing Committees September 2001 IOCP HOUSING FUND COMMITTEE John Berg, Chair Group Executive Vice President, Central Banking Group, Wells Fargo 612-667-2343(u) Nancy Berg Community Volunteer 952-475-1084 (h) Megan Berg Marketing Services Associate, Upsher-Smith Steve Bohl* Owner, Bohland Development/Pillar Homes Doug Mayo 612-720-6505 (m) Andrea Brennan Housing Coordinator, TOCP Greg Merz 952-473-2436 (x) Bill Dittmore Associate Director Community Affairs & Volunteerism, General Mills June Pauin 763-473-0959 (h); 763-764-4508 (w) Bob Fisher Owner, Bob's Shoe Repair Christopher Pierson 952-473-8248 (w) Bonnie Johnson Community Volunteer Dane Swenson 952-473-8004 (h) Mick Johnson President, Park Nicollet Foundation; Senior Vice President of Community Advancement, Park Nicollet HealthSystem 952-993-5026 (w) Kevin O'Connor CPA, O'Connor, Gearty & Co., Ltd 763-550-1100 (x) Gary Obermiller President, Deltak 763-473-3261 (h); 763-557-7445 (w) Greg Rye Owner, Arnold & Rye, Ink 952-475-2363 (h); 952-476-8392 (x) Dan Vaughan CPA, retired 952-473-3660 (h) Joe Wierschem Deacon, Retired Corporate Executive 763-475-9139 (h) also serves on site search committee IOCP SITE SEARCH COMMITTEE Megan Murray Bennett Attorney, Murray, Bennett, Hennen & Rogers 952-404-2513 Mari Bildsoe Realtor, Re -flax Results 763-476-4732 (h); 763-591-6054 (w) Rick Carlson Jyland Distinctive Homes 952-404-0600 (w) John Dettloff Financial Manager 952-473-6914 (x) Doug Mayo Director of Housing Development, CommonBond Communities 651-290-6245 61) Greg Merz GTM Consulting, Inc. 763-557-8978 (i+) June Pauin Realtor. Edina Realh_ , 952-476-5318 60 Christopher Pierson Attorney, Pierson & Pierson 763-473-0969 (h); 952-473-1400 (w) Dane Swenson President, ,Alpine Capital 9.52-249-9079 (w) Outreach Development Corporation Board of Directors John Berg, President Christopher Pierson, Vice President Steve Bohl, Secretary Joe Wierschem, Treasurer Bill Dittmore LaDonna Hoy Descriution of Prowsed Proiect Partners & Roles Partner Role Outreach Development Purchase the homes from the City of Plymouth Corporation Manage project, recruit volunteers, donations Obtain financing from the IOCP Housing Fund for rehabilitation costs Sell houses to low- -income homebuyers within one year of purchase City of Plymouth Sell houses to Outreach Development Corporation Recruit and organize volunteers to rehabilitate homes and solicit donations of materials and services with a total estimated Churches value of $10,000 per house. IOCP Housing Fund Provide up to $10,000 per house for rehab expenses Provide up to $30,000 per household in second mortgage financing in the form of deferred loans to low-income homebuyers Provide up to $20,000 per household in second mortgage financing to Plymouth HRA low-income homebuyers Plymouth and MHFA- Approved Lender MHFA below-market interest rate first mortgage program Homebuyers will be required to attend "Home Stretch" workshop Community Action for offered by CASH and participate in one-to-one homebuyer Suburban Hennepin counseling. WAYZATA COMMUNITY 125 EAST WAYZATA BOULEVARD WAYZATA, MINNESOTA 56761 CHURCH ( 612) MM" • FAX 475.2665 January 23, 2001 Mr. John Berg, President Outreach Development Corporation 110 Grand Avenue South Wayzata, Minnesota 55391 Dear John, I support Outreach Development Corporation's proposal to purchase and rehabilitate three homes in Plymouth for the purpose of providing affordable housing. Wayzata Community Church participated in the 1999 and 2000 "Housing Week" campaigns organized by Interfaith Outreach & Community Partners, by raising both funding and awareness to address affordable housing needs in this community. The shortage of affordable housing is an issue that impacts and concerns Wayzata Community Church parishioners. This is an exciting opportunity for our parish and our community. I commit to lead our congregation to participate through volunteer efforts in this project. Sincerely, The Reverend Robert Baggott III Senior Minister Holy Name of )esus Church 1 S S County Road 24 Wayzata, Minnesota 55341 January 29, 2001 John Berg, President Outreach Development Corporation 110 Grand Avenue South Wayzata, MN 55391 Dear John, Holy Name of Jesus is pleased to participate in the affordable housing initiative proposed by Outreach Development Corporation and Interfaith Outreach & Community Partners, Holy Name participated in the 1999 and 2000 "dousing Week" campaigns organized by Interfaith Outreach & Community Partners, by raising both funding and awareness to address affordable housing needs in this community. The shortage of affordable housing is an issue that impacts and concerns Holy Name parishioners. Holy Name will participate in this proposed project by recruiting and organizingvolunteers. This is an exciting opportunity for our parish and our community. We look forward to working with you and other area churches on this project. Sincerely, Q baae&, Arnold W, eber, Pastor January 19, 2001 John Berg, President Outreach Development Corporation 110 Grand Ave. S Wayzata, MN 55391 Dear John, St. Philip the Deacon Church is pleased to participate in the affordable housing initiative proposed by Outreach Development Corporation and Interfaith Outreach & Community Partners. St. Philip the Deacon participated in the 1999 and 2000 "Housing Week" campaigns organized by Interfaith Outreach & Community Partners, by raising both funding and awareness to address affordable housing needs in this community. The shortage of affordable housing is an issue that impacts and concerns St. Philip the Deacon parishioners. St. Philip the Deacon will participate in this proposed project by recruiting and organizing volunteers. We would also like to explore with Outreach Development Corporation the possibility of moving a rambler -style home currently owned by our parish to one of the home sites, if demolition is deemed the best course of action. This is an exciting opportunity for our parish and our community. We look forward to working with you and other area churches on this project. StrKerely, The Reverend Dr. Dav Hoffman, Senior pastor VF - 10 144 /01 We propose to purchase five properties from the City of Plymouth. Specifically, we propose to purchase two properties before March 31, 2002, and three properties after April 1, 2002 (the beginning of IOCP's next fiscal year). Each offer for individual properties could be considered individually, with the exception of 17920 1 PI N Phad). We would only acquire this property as part of a larger project involving the property across the street (17915 30th P1 N — Anderson). Purchase offers for the following two (2) properties to close before March 31, 2002 17915 301h PI N (Anderson) This house requires improvements to address code issues, including installing drain tile to correct the ongoing moisture infiltration problem. It is also very much in need of interior cosmetic improvements. Rehabilitation expenses are projected to be $10,000, plus value-added from volunteer labor and material contribution. Purchase offer: $140,000 17920 301h Pl N (Phad) We believe that this house is not fit for human habitation and the cost of addressing the expanse of safety, health, structural, electrical, heating, plumbing, and cosmetic issues is prohibitive. We propose to purchase the home, demolish it as soon as possible after acquisition, and construct a new 1,200 square foot home in its place. We would also consider the alternative of moving an existing home onto this site, if an appropriate fit is found. Demolition and new construction costs are projected to be $110,000. Purchase offer: $50,000 (land value less demolition costs). Purchase offer for the following three (3) properties to close after April 1, 2002 4020 Co. Rd. 101 (Mills) We believe that this old house would require $60,000 to 80,000 in repairs to achieve code compliance and meet our standards of safe and decent housing. Purchase Offer: $90,000 17825 Co Rd 24 (Hughes) Theis house is a slab -on -grade home with no basement, an ancient heating system, an in -ground pool, and several code deficiencies. We believe that the 39,022 square foot lot, on the corner of two major thoroughfares — County Roads 101 24, could support higher density. We propose to purchase the property, demolish the existing house, and build a twin home in its place. Purchase Offer: $95,000, contingent on subdivision approval, and rezoning if required 3225 Co Rd 101 (Vicarv). We do not believe it is necessary to physically rotate the house and build a new foundation. We would leave the house where it is and reframe the back of the house (fronting Queensland) to look like an entrance. Driveway access from Queensland would be added, and we would reframe the garage to create an entrance on the opposite side. Cost projections for improvements, reorientation, and code compliance total $65,000. Purchase Offer: $90,000 INTERFAITH 6124734337 01117102 10:48 r :02/03 N0:392 Outreach Development Corporation Proposal Narrative 1/17/02 Background Outreach Development Corporation (ODC:) proposes to partner with the City of Plymouth, Interfaith Outreach & Community Partners (IOCP), the faith community, and volunteers and businesses to provide affordable housing opportunities in Plymouth. Over the past year, ODC, IOCP, and City of Plymouth staff and elected officials have explored ODC's specific proposal to purchase properties acquired by the City as part of the County Road 101 improvement project (a copy of letters dated January 22 and September 13, 2001 and background information enclosed). Pr000sgd Terms Enclosed please find a purchase agreement from Outreach Development Corporation (ODC) to purchase the property located at 17915 306i Place North. The purchase agreement contains a purchase price offer of $170,000. ODC will provide a $2,500 earnest money check with the balance paid at closing. ODC; is willing to close on the property at the City's earliest convenience. We would like to close before May 1, 2002, to organize a late spring project for volunteers to rehabilitate the house. Factors Supporting Offer City staff identified a sale price for the property of $189,545, which is roughly the amount the City paid for the property, less County Road 101 right-of-way expense. ODC's offer uses this price as a base, and subtracts a 7 percent real estate commission (513,268) that the City would not have to pay if it sold directly to ODC. The resulting sale price is $176,276. ODC's offer also subtracts 56,277 toward the rehabilitation work required on the house. Market comparables in Plymouth support ODC's offer. In Plymouth, thirteen properties in the same school district with the same number of bedrooms and bathrooms, and ranging in finished square feet between 997 to 1944 (the 17915 30a' Place property has approximately 1,200 of finished square feet) sold in the last quarter of 2001. The range in sale price of properties was 167,000 to S 189,900, with an average of $182,130. The average number of days on the market was 32. The properties selling for more than the average price were updated and do not require the extensive updating of flooring, paint, appliances, counters, and other necessary repairs required by the 17915 30d'Place property. Sale to LowLModerate Income Ho UDC will sell the home to a qualified low/moderate income buyer for the same price ($170,000). The cost of repairs will be provided in the form of grant funds, volunteer labor, and in-kind contributions. This lower purchase price (as opposed to the City's proposed price of $189,545) will allow the selected homebuyer to use the Minnesota Housing Finance Agency's (MFWA's) below market rate mortgage program (maximum purchase price limit for this program is 175,591), thus making the home affordable to a lower income family. Proposed buyer financing: Purchase price: - $170,000 Plymouth FTHB program: $ 20,000 (up to) IOCP second mortgage: $ 30,000 (up to) Homebuyer V' mortgage: $120,000 (minimum 1" mortgage amount) 1NTERFAiTH 6'1 4 S4S3r uii iriVe- iu:4a L' :wiw nV:y If the homebuyer uses the MFIFA first mortgage program (currently at less than 6% interest for a 30 -year fixed-rate loan), the monthly payment could be as low as M.5, including principal, interest, taxes and insurance. This housing payment is affordable to a household earning as little as $38,000 per year. For a family of four, this is less than 60 percent of the 2001 metropolitan area median income. Leveraged Resources The City's subsidy in writing down the sale price of the home to ODC's purchase offer of170,000 and providing a deferred loan of up to $20,000 to the homebuyer through the City's First Time Homebuyer Program will leverage an additional $10,000 in approximate value in rehabilitation work through grants from TOCP, volunteer labor, and in-kind contributions. it will also leverage up to $30,000 in additional funds through IOCP's second mortgage financing, which would be subordinate to the City's second mortgage. Community Partnership City staff prepared a project proforma resulting in a purchase price to TOCP of $189,545. ODCandIOCPrecognizethatatthispricetheCitycouldmeetitsgoalofprovidingahomeownership opportunity to a household with an annual income of 80 percent of the area median income. Although there is a need for housing affordable to this income level, the Plymouth households served by TOCP have lower incomes. The City's affordable owner -occupied housing goals strive to serve households earning less than 80 percent of median income. The City's affordable rental housing goals strive to serve households at 50 percent of the area median income or less. Often, due to limited funding and a strong housing market, affordable housing initiatives reach only the upper limit of these income ranges. ODC and IOCP propose to provide a homeownership opportunity for households earning approximately 60 percent of the area median income. A unique aspect of this proposal is the significant involvement of Plymouth citizens in the project, thereby expanding local support of the City's affordable housing efforts. Several area churches are ready to recruit volunteers to rehabilitate the house to meet all city codes and requirements, and also make cosmetic and aesthetic improvements such as interior updating and exterior landscaping. Successful affordable housing development often involves public and private partnerships. IOCP has served the Plymouth community for 22 years, sixty-five percent of IOCP's year-to- date expenditure ($427,055) on emergency services has been used to assist Plymouth residents. In response to this data, IOCP will continue to work on affordable housing initiatives in Plymouth, and we look forward to partnering with the City. In addition to providing emergency housing assistance to Plymouth residents, IOCP also works in partnership with the City on homeownership projects. A recent example is that TOCP committed up to $25,000 to assisthouseholdspurchasingatownhomeattheReserve, which helped the City leverage funding from the Minnesota Housing Finance Agency for the project. Seven households have been approvedfordownpaymentassistanceattheReserve. ODC and IOCP value this partnership, and we have generated a lot of enthusiasm for this proposed homeownership project in Plymouth. We hope that together we can make this project work. Outreach Development Corporation Proposal Narrative Page 2 APPENDIX F Inspection Reports Inspections were done on each of the homes by Inspecta Homes, a company that specializes in reviewing homes for code violations as well as structural concerns, prior to the City purchasing each home. Warren Kulesa, the Housing Inspector reviewed each of the reports done by Inspecta Homes and felt that hazardous or life safety violations should be addressed. Warren then went through each of the eight homes and listed items that needed to be corrected before any occupancy of these homes would be allowed. These inspections were done the months of August and September 2001. DATE: September 13, 2000 TO: Anne Hurlburt, Director Community Development FROM: Warren Kulesa, Housing Inspector SUBJECT: Inspection at 17920 30th Place North At your request I inspected the property at 17920 30th Place North. This property was purchased by the City after previously being owned by the Phad family. The following list of code violations was prepared in accordance with Plymouth City Code section 405 concerning housing maintenance. This section of code contains provisions relating to the maintenance of residential properties, either owner occupied or rental. The violations noted were as follows: 1. The furnace in the lower level, which is used to provide heat to the family room addition, is old and very filthy. The furnace should be inspected and cleaned by a heating contractor. Any necessary repair work should be completed. 2. The electrical panel located in the lower level in the kitchen area lacks the proper clearance so that the panel cover can be opened. The enclosure around the electric panel should be removed so as to provide proper clearances to the electric panel. 3. There are several open slots in the electrical panel. These slots should be sealed with breaker blanks. 4. In the lower level kitchen on the underside of the electric cooktop is a junction box which lacks a cover plate. As this cover plate is missing the wires supplying power to the cooktop are exposed. A junction box cover will need to be provided. 5. Improper plumbing materials (accordion pipe) have been used for the sink drain in the lower level kitchen. Additionally, this drain line has a sag in it. The Inspection 17920 30`h P1. Page 2 September 13, 2000 accordion style piping should be removed and standard plumbing pipe utilized. A continual downward pitch must be maintained. 6. The lower level bathroom has no exhaust fan. An exhaust fan will need to be installed and vented to the exterior. 7. In the lower level as you head down the hallway, the first room on the right has a light fixture in a closet which is improper as it does not have sufficient clearances to combustibles. This light fixture will need to be removed and if it is reinstalled it will need to be placed on the ceiling of the closet. 8. In the lower level as you head down the hallway the first room to the right lacks any sort of window that can be opened; therefore, it has no ventilation. A window would need to be installed which opens to the exterior to provide ventilation to this room. It should also be noted that this room is not permitted to be used as a bedroom as it lacks any type of egress window. 9. In the lower level as you head down the hallway, the second room on the right hand side of the hallway lacks a window screen for the window in this room. The crank mechanism for the window is also missing. The window will need to be repaired or replaced. 10. In the lower level as you walk down the hallway, the room to the left has a missing outlet cover plate, the window in the room will not close and the glass in the window is cracked. The glass will need to be replaced and the window repaired so that it can be fully closed. A cover plate will need to be installed. This room is not permitted to be used as a bedroom as it lacks any type of egress window. 11. An outlet adapter has been screwed in to a single bulb fixture in the mechanical room. The outlet adapter will need to be removed. 12. There is extensive mold and water damage to the sheetrock behind the laundry tubs. This sheetrock will need to be removed and replaced. 13. In the lower level, the windows in the family room lacked screens. Provide screens for these windows. 14. On the main level in the family room as you look out the windows, the window to the left lacks a screen and the sill is rotted such that the crank mechanism no longer can be properly used. A screen will need to be provided and the window will need to be repaired or replaced. 15. On the main level in the living room one window sill is rotted so that the mechanism to open the window cannot be properly used. Thus, the window Inspection 17920 30`h PI. Page 3 September 13, 2000 will not open and close properly. Neither of the windows within the living room has a screen. Repair or replace the windows in the living room and provide screens. 16. The exterior of the oven door is separating from the interior portion. This will need to be repaired or the oven replaced. 17. There is improper clearance to the fixture bulb above the kitchen sink. As this is a heat lamp type bulb, it requires a minimum of one inch clearance around the entire bulb. 18. The window over the kitchen sink has no screen. Provide a screen. 19. The electrical outlet in the main level bathroom is worn out so that it will not provide an adequate ground. This outlet will need to be replaced with a ground fault circuit interrupter outlet. 20. In the main floor bathroom, the tile in the tub area is very loose from the wall and lacks grout. The tile should be reset to the wall and then regrouted. 21. In the master bedroom the window lacks a screen. It cannot be properly opened as the sill is rotted and the mechanism will not function properly. Additionally, the lever lock is broken so that the window cannot be locked. The window will need to be repaired or replaced and a screen provided. 22. In the bedroom adjacent to the master bedroom, there is a damaged outlet and a missing cover plate. The outlet will need to be replaced and a cover plate provided. 23. In the garage an extension cord has been used to supply power to the garage door opener. The extension cord will need to be removed and an outlet installed into which this electrical device can be plugged directly. 24. In the garage there is a large hole in the ceiling. The damaged sheetrock will need to be removed and 5/8" type x sheetrock will need to be installed to provide the proper fire separation. 25. A vent for the furnace located in the lower level is running through the garage without proper fire collars. Vent -fast fire collars will need to be installed where the vent enters into the garage at the floor level as well as the ceiling level where it exits. 26. The service door between the garage and the residence does not self -close to a latched position. A closer will need to be installed so that the door is self- closing to a latched position to provide the proper separation. Inspection 17920 30`h Pl. Page 4 September 13, 2000 27. A heat vent has been installed in the garage area. This heat vent will need to be removed and the opening will need to be sheetrocked with 5/8" type x sheetrock. 28. The carpet adjacent to the lower level kitchen is pulling up and creating a tripping hazard. The carpet will need to be secured to the floor. 29. The sidewalk area along the front of the house adjacent to the garage has sunk creating a significant tripping hazard as you attempt to access the garage through the service door. The concrete will need to be mudjacked or removed and replaced in order to eliminate this tripping hazard. 30. The fireplace located in the upper level family room appears to not have been used for a considerable amount of time. Per the City of Plymouth assessing records the fireplace is non-functional. The interior of the fireplace and chimney should be inspected and cleaned. Any corrective action will be based upon the findings of the contractor which conducts this inspection. GENERAL NOTES The following items listed do not constitute violations of Plymouth City Code but rather are conditions that detract from the general appearance and may impact the potential value of the property at the point of resale. Although these items do not constitute violations of Plymouth City Code, I recommend that the City consider addressing these items in order to provide an attractive property for the sales market. Throughout the interior of the property there is an extremely strong odor which appears to be from animal urine. The carpets throughout the property could be cleaned; however, this may not eliminate this odor. Carpeting may need to be removed and subfloors sealed. The well for the property has not been capped. State code does require that a well that is no longer in service be capped once the property is sold. On the property there are several aesthetic items such as the concrete spalling in the sidewalk area, some minor paint peel on the soffits and fascia boards as well as on the brick chimney. Additionally there is a garbage can which lacks a lid and which has overflowing garbage on the rear side of the house. There is a tire as well as several bags of materials leaning against the fence. An additional item to note concerns the roof of the residence. I could not locate a scuttle hole within the interior of the house to view the attic of the home. The roofline of the house has several dips as well as humps. It appears that the shingles on the Inspection 17920 30" P1. Pa.e 5 September 13, 2000 house are relatively new; however, there are at least two layers of shingles on the roof and the humps and dips are quite evident. None of the windows in the bedrooms meet egress requirements as established by thebuildingcode. This structure was built in approximately 1962. The windows do not meet the building code requirements from 1961 concerning minimum requirements for windows in bedrooms. In all likelihood, no inspections of this house occurred duringthebuildingprocess. WK: jb ihm\WK\17920 30th PI Insp DATE: August 1, 2001 TO: Anne Hurlburt, Director - Community Development FROM: Warren Kulesa, Housing Inspector SUBJECT: Inspection at 3950 Co. Rd. 101 (Frost) At your request I inspected the property at 3950 Co. Rd. 101. This property was purchased by the City after previously being owned by the Frost family. The following list of code violations was prepared in accordance with Plymouth City Code Section 405 concerning housing maintenance. This section of code contains provisions relating to the maintenance of residential properties, either owner occupied or rental. The violations noted were as follows: 1. There is an open junction box on the side of the house in the porch area. This junction box should either have a light fixture installed on it or a cover plate to enclose it. 2. A screen in the window next to this junction box has been damaged. The screen should be replaced. 3. There are Christmas lights hung on the house which are plugged into some sort of a cord which originates somewhere above the roof line above the porch which I could not view. The cord has a lamp -like base wired to it and into that base a screw in adapter has been installed into which the Christmas lights are plugged. This cord should be removed. 4. In the garage an extension cord has been used to supply power. This extension cord should be removed from use and an electrical outlet installed. 5. The right overhead garage door is badly damaged. The door should be replaced. 3950 Co. Rd. 101 Page 2 August 1, 2001 6. The front storm door could not be opened. The door should be pulled off and planed or repaired so that it functions properly. 7. The door to the enclosed porch area does not latch. The door should be repaired so that it latches. 8. Outlet cover plates are missing in the kitchen dining area. Install cover plates over these outlets. 9. The gas line located behind the stove area is uncapped and the pipe is bent beyond the allowable maximum. This gas piping will need to be replaced. 10. In the living room area there are two broken window panes. These window panes should be replaced. 11. In the living room there are three outlets that are three prong grounded receptacles. However, none of these receptacles are grounded. If approved by the electrical inspector they should be refitted with two prong receptacles. 12. In the upper level the bedroom area has an outlet which is damaged. This outlet will need to be replaced. 13. The light switch in the upper level bedroom lacks a cover plate. A cover plate should be installed. 14. The upper level bathroom lacks any sort of ventilation. A window or exhaust fan should be installed to vent this bathroom. 15. The toilet in the upper level bathroom is quite filthy and mold covered. The seat and cover area are beyond cleaning and will need to be replaced. 16. In the knee wall area on the upper level there is a large accumulation of grass, hay, feathers, and other assorted miscellaneous debris from an infestation of birds of some type. This area should be thoroughly cleaned and any infiltration point by which the birds are entering should be sealed. 17. The furnace is extremely old and quite filthy. It should be serviced by a heating contractor. 18. A wood burning stove is present in the basement area and connected to electrical components. However, it is not vented. The electrical component should be disconnected so the device cannot be used. 19. There is a light fixture in the basement area which is hanging by the wiring and not secured to a junction box. Additionally, the light fixture appears to be 3950 Co. Rd. 101 Page 3 August 1, 2001 damaged. The fixture should be removed and the box sealed or a new fixture installed. WK: jb ihm\WK\3950 Co. Rd. 101 DATE: October 9, 2001 TO: Jim Barnes, Housing Supervisor FROM: Warren Kulesa, Housing Inspector SUBJECT: City Purchased Houses - County Road 101 Improvement Project At your request I have reviewed the inspection reports of the houses purchased by the City in conjunction with the County Road 101 improvement project. I have attempted to establish from these reports those items which would be considered hazardous or life safety violations. I have also included with this information a rough estimate of the costs associated with correcting the hazardous violations as found at each property. I have attached to this memo inspection reports for each house. Those violations not listed in this memo could be repaired by the new property owner. An agreement would have to be reached on a specific time frame. Follow up inspections would then occur by City staff to ensure compliance. The Pickering home at 3030 County Road 101 has two hazardous items. The first is violation #1 concerning a worn out electrical receptacle which will need to be replaced with a ground fault circuit interrupter protected outlet. The second concerns violation 3, a missing smoke detector outside of a bedroom area. A battery operated smoke detector will need to be installed. The costs of correcting these items will be approximately $150. The Mills property at 4020 County Road 101 has several hazardous violations. The first would be violation #3 which is a smoke detector which does not function. It needs to be repaired or replaced. The second item concerns violation #4 which are some ungrounded receptacles. The receptacles will need to be grounded or replaced. The next violation concerns violation #8, the lack of a handrail in the staircase to the upper level. A section of handrail would need to be installed. The final violation cited as hazardous concerns violation #11, the furnace for the house. The furnace is extremely old and minimally will need to be inspected and approved by a licensed heating contractor. All corrective work to eliminate these violations would costs approximately Co. Rd. 101 Improvement Project Page 2 October 9, 2001 500. The amount could be substantially higher should it be determined that the furnace for the property is no longer serviceable. A new furnace installation would cost an additional $2,000 - $3,000. The first hazardous item on the Anderson property at 17915 30' Place North concerns item #1 in my report, a large hole in the firewall. Sheetrock would need to be installed. A second item concerns violation #4 which is a smoke detector which did not sound. It will need to be repaired or replaced. Approximate cost to repair these items would be $150. The Porter property at 17915 County Road 24 has only one violation which concerns item #1 which is an egress window in the lower level which did not fully open. The window would need to be repaired. Approximate cost may be up to $1,500 should the window itself need to be replaced. The Hughes property, 17825 County Road 24, has several violations listed in my report which are considered hazardous. The first would be item #2 which concerns exposed electrical wiring on the exterior of the home. It would need to be installed in a junction box. The next is Item #6 concerning an ungrounded outlet. The outlet would need to be grounded or a ground fault circuit interrupter outlet installed. Item 7 in my report concerns the overfused subpanels for the electrical system in this house. New fuses would need to be installed corresponding to the size of the wiring. The next item concerns violation #8 which is some exposed wiring on electrical motors attached to the heating plant. The wiring would need to be installed in some junction boxes. The next concerns violation #9, the heating plant itself. It is a combination boiler system which should be inspected by a licensed heating contractor. The next item concerns #10 in my report related to the lack of a pipe coming off the relief valve for the water heater. A pipe would need to be installed. The next item concerns violation #16 and the lack of a firewall between the house and the garage. Sheetrock would need to be installed. The next item concerns violations #17, #18 and #19. These all concern improper electrical wiring within the garage area. Some rewiring would need to be done. Estimate cost to repair these items is $1,500. However, this amount could substantially increase should additional electrical deficiencies be found by the electrician performing some of the repair work. As well this amount could substantially increase should the heating contractor determine that the current heating plant is no longer serviceable and must be replaced. The total cost could approach $7,000 for this property. One item which was not cited as hazardous but should be mentioned in this report concerns the swimming pool on the property. The pool liner is damaged and all pump equipment and such has been removed. In all essence the only practical alternative would be to demolish the swimming pool. Approximate cost would be $4,000. Co. Rd. 101 Improvement Project Page 3 October 9, 2001 The next property is the Vicary property at 3225 County Road 101. There are several violations which are hazardous on this property. The first would be item #5 on my report concerning an outlet in the kitchen area which is not grounded. The outlet would need to be grounded. Item #8 in my report concerning a switch/electrical outlet combination is improperly wired. It will need to be rewired. The next item would concern violations #10 — 13. This concerns numerous receptacles within the upper level bedrooms which are either ungrounded or improperly wired. All of these would need to be wired properly. The next item would concern item #15 in my report, hazardous electrical wiring in the attic. Wiring would need to be removed and the area rewired. The next item would concern item #17 on my report, all of the electrical wiring in the basement area. There are numerous violations in this area. Some wiring would need to be removed and replaced while other wiring would need to be capped. The next item would be item #18 which concerns the vent for the water heater. It is improperly vented. A final item not found in my initial inspection report but later determined by a heating contractor is that the furnace in this property has a cracked heat exchanger; it will need to be replaced prior to anyone occupying the house. Total estimated costs of repair work of hazardous items is approximately $7,000. The next property is the Phad property 17920 30' Place North. The first item would concern violation #1, a very old furnace stuck in a closet in the lower level. The furnace will need to be evaluated. The next item concerns violations #2 and #3 in my report which address proper clearance to the electrical panel and open slots in the electrical panel. The cabinet in which the panel is located should be removed and the slots filled. The next item concerns violation #4 which is some exposed wiring beneath an electric cooktop located in the lower level. Wiring will need to be contained in a junction box. The next item would be violation #12 concerning extensive mold and water damage to the sheetrock behind the laundry tubs. The sheetrock would need to be removed. The next item would be violation #16 in my report. This concerns the oven door separating from the interior portion of the oven. The oven would need to be replaced. The next item concerns violation #17 which is an improper clearance to the light fixture bulb above the kitchen sink. It lacks the required clearance to combustible materials. The next item would be violation #19 in my report. The electrical outlet in the main level bathroom is worn out. It will need to be replaced with a ground fault circuit interrupter outlet. Item #21 concerns the window not functioning in the master bedroom. The window will need to be repaired or replaced. Violation #24 concerns a hole in the ceiling of the garage. This area is to provide a fire separation between the house and garage. Sheetrock will need to be installed. The next item concerns violation #25 in my report which is a furnace vent which exits through the garage. This vent where it enters and exits the garage would need to have fire rated collars installed. The next item concerns violation #27 in my report which is a heat vent installed in the fire wall of the garage. The heat vent would need to be removed and the opening sealed with sheetrock. The final item concerns violation #30 as listed in my report which is a fireplace which appears to be in very poor condition. It would need to be evaluated and any repairs made. Co. Rd. 101 Improvement Project Page 4 October 9, 2001 The final item listed does not appear on my inspection report. However in a subsequent date to my report additional sheetrock was removed from the ceiling area of the garage in an attempt to determine whether the garage appeared to be pulling away from the house or what structural conditions were occurring which made the garage appear to be settling. It appears that the framing is substantially overspanned and has begun to sag. The framing in the garage would need to be properly supported and then tied in to the rafters of the garage. In accessing the rafter space above the garage it was also noted that the substantial overhang which extends from the front door over to the garage area is not properly supported and also appears to be settling. It is currently being supported by some structural members along with two decorative wrought iron members. Additional footings and posts should be installed to properly support this area. In attempting to determine a cost estimate of the repair work needed for this property, many factors have to be considered including the substantial construction work which may be involved to properly support the garage roof and front overhang of the house. Additionally the lower level furnace may need to be replaced or removed and the upper level fireplace is also a concern should it be found to be in a serious state of disrepair. Cost estimate for the repair of these hazardous items could vary anywhere from 10,000 to $30,000. The final property is the Frost property at 3950 County Road 101. The first item is violation #9 in my report concerning a gas line which is severely kinked and uncapped. The piping will need to be removed and reinstalled. The next would be item #11 in my report concerning several outlets in the living room area which are not properly grounded. The receptacles will need to be replaced or grounded. The next item concerns violation #17 in my report, the furnace for the property which is quite old and very filthy; it will need to be serviced by a heating contractor. Violation #18 addresses the wood burning stove which is connected to some electrical components in the basement but not vented in any manner. It would need to be disconnected and removed. The final item concerns violation #19 which is a light fixture hanging by the electrical wiring. The fixture would need to be properly mounted to the junction box into which it is wired. Cost estimate to correct these violations would be approximately $1,000. However, should the furnace be found to be no longer serviceable, the replacement of the furnace may cause the cost of these items to approach $5,000. It should be noted that the cost to correct the hazardous items as estimated in this report are very raw estimates. The costs will be greatly impacted by any other conditions which may be found. WK: jb ihm\ WK\CoRd 101 -houses DATE: October 4, 2001 TO: Anne Hurlburt, Director - Community Development FROM: Warren Kulesa, Housing Inspector SUBJECT: Inspection at 3030 County Road 101 (Pickering) At your request I inspected the property at 3030 Co. Rd. 101. This property was purchased by the City after previously being owned by the Pickering family. The following list of code violations was prepared in accordance with Plymouth City Code Section 405 concerning housing maintenance. This section of code contains provisions relating to the maintenance of residential properties, either owner occupied or rental. The violations noted were as follows: 1. The electrical outlet in the main floor bathroom is worn out such that it no longer shows a proper ground. This outlet will need to be replaced with a ground fault circuit interrupter protected outlet. 2. No exhaust fan is present in the basement bathroom. An exhaust fan will need to be installed for this bathroom. 3. No smoke detector is present outside of the basement bedroom. A smoke detector will need to be installed. 4. The guard rail on the deck as well as one of the support posts are very rotted. The deck is hanging down on one corner. The deck should be jacked back up and new support posts placed throughout its entire length. The guard rail should be removed. Since the deck is almost at ground level, no guard rail is required for the deck. WK:jb ihm\WI{\3030 Co. Rd. 10t Insp.doc DATE: October 1, 2001 TO: Anne Hurlburt, Director - Community Development FROM: Warren Kulesa, Housing Inspector SUBJECT: Inspection at 4020 County Road 101 (Mills) At your request I inspected the property at 4020 Co. Rd. 101. This property was purchased by the City after previously being owned by the Mills family. The following list of code violations was prepared in accordance with Plymouth City Code Section 405 concerning housing maintenance. This section of code contains provisions relating to the maintenance of residential properties, either owner occupied or rental. The violations noted were as follows: 1. The service door to the garage is rotted. The door should be replaced. 2. There is an open junction box and a missing outlet cover plate in the garage. Both items should have plates. 3. The smoke detector on the main level in the house did not function. Repair or replace. 4. On the upper level both three prong receptacles in the blue bedroom are ungrounded. They will either need to be grounded or the plugs will need to be changed to two prong ungrounded receptacles. 5. On the upper level in the green bedroom the plaster ceiling is falling down. This ceiling will need to be repaired. 6. In the upper level green bedroom the windows do not function properly as they will not stand in a held open position. The windows will need to be repaired or replaced. 711 MEMO:. tri 400 PTS OYYM UT kBOULEVARD,9 PLYMOb-Tl-M 5447 DATE: October 1, 2001 TO: Anne Hurlburt, Director - Community Development FROM: Warren Kulesa, Housing Inspector SUBJECT: Inspection at 4020 County Road 101 (Mills) At your request I inspected the property at 4020 Co. Rd. 101. This property was purchased by the City after previously being owned by the Mills family. The following list of code violations was prepared in accordance with Plymouth City Code Section 405 concerning housing maintenance. This section of code contains provisions relating to the maintenance of residential properties, either owner occupied or rental. The violations noted were as follows: 1. The service door to the garage is rotted. The door should be replaced. 2. There is an open junction box and a missing outlet cover plate in the garage. Both items should have plates. 3. The smoke detector on the main level in the house did not function. Repair or replace. 4. On the upper level both three prong receptacles in the blue bedroom are ungrounded. They will either need to be grounded or the plugs will need to be changed to two prong ungrounded receptacles. 5. On the upper level in the green bedroom the plaster ceiling is falling down. This ceiling will need to be repaired. 6. In the upper level green bedroom the windows do not function properly as they will not stand in a held open position. The windows will need to be repaired or replaced. 3225 Co. Rd. 101 Page 2 August 1, 2001 7. In the large upstairs bedroom the window does not function properly as it will not stay in an open position. It will need to be repaired or replaced. 8. No handrail is present to the upper level landing area. A handrail should be installed to the upper level landing area. 9. In the basement there are numerous open junction boxes, switches with missing cover plates, and outlets with missing cover plates. All electrical boxes will need to have plates installed. 10. The sump pump in the basement area is plumbed to the laundry tub. This sump pump will need to be directed so as to discharge to the exterior. 11. The furnace in the house is quite old; it should be inspected by a licensed contractor to ensure that if functions properly. WK: jb ihm\WK\4020 Co. Rd. 101 Insp.doc DATE: August _ 1, 2001 TO: Anne Hurlburt, Director - Community Development FROM: Warren Kulesa, Housing Inspector SUBJECT: Inspection at 17915 30th Place North (Anderson) At your request I inspected the property at 17915 30th Place North. This property was purchased by the City after previously being owned by the Anderson family. The following list of code violations was prepared in accordance with Plymouth City CodeSection405concerninghousingmaintenance. This section of code contains provisions relating to the maintenance of residential properties, either owner occupied or rental. The violations noted were as follows: 1. There is a large' hole in the fire wall between the garage and the house providing access to the rafter area. This should be sealed with 5/8" sheetrock. 2. A garage door opener is supplied with power through the use of an extension cord. This extension cord should be removed and an outlet installed into which the opener can be plugged directly. 3. The fire door between the house and the garage does not self -close to a latched position. This fire door should have a closer installed to make it self-closing. 4. The smoke detector outside of the upper level bedrooms did not sound when tested. It should be repaired or replaced. 5. In the basement across from the bar area there is active mold growth on the window sill as well as the wall beneath the window sill. There appears to be an ongoing moisture infiltration problem. The water infiltration problem should be corrected and the mold growth killed. Inspection 17915 301h Pl. Page 2 August 1, 2001 6. Directly above the toilet is an electrical subpanel. This panel has a padlock on it which prohibits access to the interior of the box. This small padlock should be cut and removed. 7. No guardrail is present on the open side of the steps leading to the basement area. A guardrail will need to be installed. WK:jb ihm\WK\17915 30th P1 Insp DATE: August 1, 2001 TO: Anne Hurlburt, Director - Community Development FROM: Warren Kulesa, Housing Inspector SUBJECT: Inspection at 17915 Co. Rd. 24 (Porter) At your request I inspected the property at 17915 Co. Rd. 24. This property was purchased by the City after previously being owned by the Porter family. The following list of code violations was prepared in accordance with Plymouth City Code Section 405 concerning housing maintenance. This section of code contains provisions relating to the maintenance of residential properties, either owner occupied or rental. The violations noted were as follows: 1. The egress window in the lower level left bedroom window does not fully open. Repair the window so it fully opens. 2. In the basement family room the window on the right side does not fully close when opened. The window on the left side is detached from the arms which hold it into the frame and has partially fallen out of the opening. The window is completely inoperable and it appears that someone has tried to enter the residence through this window. Both sides of the window will need to be repaired. WK:jb ihni\WK\17915 Co. Rd. 24 DATE: August 1, 2001 TO: Anne Hurlburt, Director - Community Development FROM: Warren Kulesa, Housing Inspector SUBJECT: Inspection at 17825 Co. Rd. 24 (Hughes) At your request I inspected the property at 17825 Co. Rd. 24. This property was purchased by the City after previously being owned by the Hughes family. The following list of code violations was prepared in accordance with Plymouth City Code Section 405 concerning housing maintenance. This section of code contains provisions relating to the maintenance of residential properties, either owner occupied or rental. The violations noted were as follows: 1. No house numbers are present on the structure. House numbers should be installed and be visible from the street. 2. There is exposed electrical wiring on the underside of the soffit adjacent to the side entry door where a light fixture has been removed. A light fixture should be reinstalled or the wiring capped and a cover plate installed over the junction box. 3. In the porch area overlooking the pool there are two cracked window panes. These window panes should be replaced. 4. The small bathroom adjacent to the porch area does not have any means of ventilation. An exhaust fan would need to be installed. 5. An outlet cover plate is missing from the area in which the refrigerator would normally sit. Install a cover plate. 6. The outlet adjacent to the kitchen sink is not grounded. This outlet will need to be grounded and ground fault circuit interrupter protected. 17825 Co. Rd. 24 Page 2 August 1, 2001 7. The electrical subpanels for the house adjacent to the boiler area are all substantially over -fused as almost all fuses present are 30 amp fuses. Due to the number of subpanels present and the lack of any sort of diagram indicating which fuse operates which system in the house, I am unable to determine if there are other significant problems with the systems. 8. There are two electrical motors connected to the heating plant for the property. The wiring to both motors is exposed and not concealed within junction boxes. Some type of junction boxes would need to be installed to protect and conceal this wiring. 9. The heating plant is of a configuration of which I have never seen before. It appears to be a wood burning fuel oil mixture. Due to the uniqueness of the plant, I am unable to evaluate its condition. I would recommend that a heating contractor examine the components to determine if they are properly connected and functioning in a proper manner. 10. The water heater lacks a pipe coming off of the relief valve. A pipe the same diameter of the relief valve would need to be installed to within 18" of the floor. 11. In the shed which contains the pool equipment there is a hole cut through the roof of the shed. The hole would need to be repaired. 12. In one side of the pool shed there is a toilet which has been installed which is not connected to a water supply. The toilet will need to be removed and if there is sewer access below the toilet it will need to be properly sealed. 13. Adjacent to the toilet is a plumbing clean out with a rag stuffed in it. The clean out would need to be repaired so that it is properly capped. 14. A portion of the pump equipment for the swimming pool has been removed. Additionally all piping leading to the pool has been cut. I would suggest that a pool contractor review the system to determine its ability to function and any upgrades it may need. 15. No electrical receptacle is present in the bathroom. An electrical receptacle should be installed which is ground fault protected. 16. The fire wall between the house and the garage has been removed. 5/8" sheetrock will need to be applied to the wall as well as the ceiling area to provide a fire separation. 17825 Co. Rd. 24 Page 3 August 1, 2001 17. The garage door opener is supplied with power through the use of an extension cord. An outlet should be installed into which the garage door opener can be plugged directly. 18. The outlet into which the extension cord supplying power to the garage door opener is plugged is ungrounded. This outlet will need to be repaired so it is ground fault protected. 19. In the garage there is some electrical wiring which does not terminate within a junction box and it is not capped. This wiring should be capped and a junction box installed into which it can terminate. 9r1 i' ihm\WK\17825 Co. Rd. 24 DATE: August 1, 2001 TO: Anne Hurlburt, Director - Community Development FROM: Warren Kulesa, Housing Inspector SUBJECT: Inspection at 3225 Co. Rd. 101 (Vicary) At your request I inspected the property at 3225 Co. Rd. --101. This property was purchased by the City after previously being owned by the Vicary family. The following list of code violations was prepared in accordance with Plymouth City Code Section 405 concerning housing maintenance. This section of code contains provisions relating to the maintenance of residential properties, either owner occupied or rental. The violations noted were as follows: 1. On the north side of the house there is one screen which is torn and damaged. This screen should be replaced. 2. A window on the porch is broken.- The glass will need to be replaced. 3. An extension cord is in use to supply power to the garage door opener. This extension cord will need to be removed and an outlet installed into which the garage door opener can be plugged directly. 4. In the outdoor decorative electric light sitting in the middle of the yard, the glass has been broken. There are shards of glass extending from the light fixture. The broken glass should be removed and replaced. 5. In the kitchen area there is an electrical outlet located in the area where the stove would sit. This outlet is not grounded. The outlet will need to be grounded. 6. A window screen in the dining room area is damaged. This screen should be replaced. 3225 Co. Rd. 101 Page 2 August 1, 2001 7. One window in the dining area has a broken window pane. The window pane should be replaced. 8. In the dining area the switch outlet combination as you enter into the dining area is wired improperly as the electrical outlet shows reversed polarity on my tester. The outlet should be rewired properly. 9. In the right bedroom at the top of the staircase the outlet behind the bedroom door has a broken cover plate. The cover plate will need to be replaced. Additionally this outlet is ungrounded. The outlet will need to be grounded. 10. In the same bedroom the outlet located left of the door as you enter into the bedroom has two problems. The top receptacle has no power to it; the bottom receptacle is ungrounded. The outlet should be rewired so that it is wired properly. 11. At the top of the staircase the bedroom to the far left, both outlets are ungrounded. They should be wired properly so that they are grounded. 12. In the bedroom to the left and forward of the staircase, all outlets are ungrounded. The outlets should be wired so that they are properly grounded. 13. In the bedroom to the right and forward of the staircase all outlets are not grounded. The outlets should be rewired so as to be grounded. In lieu of grounding the receptacles it should be determined if the electrical inspector would allow two -prong ungrounded receptacles to be reinstalled as this appears to be a very old portion of the house and in all likelihood had such receptacles prior to these being installed. 14. In the bedroom to the right and forward of the staircase one window screen is badly damaged. This screen should be replaced. 15. In the attic space there is a junction box with pendant wiring emanating from it leading to a porcelain single bulb fixture which has a multi -outlet adapter screwed into it. The entire system should be removed. A new junction box installed into which all the wires can junction and a cover plate placed on this box. Additional wiring should be run from that box to a new light fixture. 16. In the living room area on the first floor there are two broken window panes. Both window panes should be replaced. 17. In the basement there are numerous electrical deficiencies including uncapped wiring, wiring which does not terminate within a junction box, switch and outlet boxes without covers, wiring which is improperly supported, and a large 3225 Co. Rd. 101 Page 3 August 1, 2001 knock out missing from the side of the electric panel. All violations should be corrected. 18. The vent for the water heater has a bow in the middle and has almost no rise as it dumps into the old chimney stack. The venting should be redone for the water heater. WK:jb ihm\WK\3225 Co. Rd. 101 Insp A PPEN DIX G REQUEST FOR PROPOSALS Acquisition -Rehabilitation Of Four City Owned Houses City of Plymouth Deadline for Submission: To Be Determined FBI 'AIN Contact: Jim Barnes, Housing Manager Community Development Department City of Plymouth 3400 Plymouth Blvd. Plymouth, MN 55447 763) 509-5412 Fax (763) 509-5407 e-mail jbarnes@ci.plymouth.mn.us Project Description The City of Plymouth seeks proposals (bids) from Housing Rehabilitation and Construction firms interested in acquiring one to four homes that the City purchased as part of the Highway 101 reconstruction Project (see attached map). These four houses will require various degrees of rehabilitation, which the City will inspect prior to permitting occupancy. The City would prefer to sell these units to a single firm in order to manage the project more effectively; however, we recognize that individual firms may not have the capacity or resources to acquire and rehabilitate all of the units. Therefore, the City will accept proposals (bids) for one or all of the units. Pre -Bid Inspections Pre-bid inspections can be arranged by contacting Warren Kulesa, Housing Inspector at (763) 509-5445. Unit Information The City of Plymouth will require all of the properties identified to be brought up to either the code that was in place at the time the house was built (repair items) or current Building Codes (replacement items) and will not allow occupancy until they have past inspection by the City. Below are the property addresses, along with a brief description of the house and a list of items, which the City will require be repaired. 17920 30th Place North — This walkout rambler was built in the 1960's and has a hip roof with a partial brick facade. Minimum Bid $ 155,000 Health/Safety & Code issues to be addressed are as follows: 1. Roof System — The roof is severely stressed and must be corrected by either replacement or having a Structural Engineer certify the repair work. 2. Heating System — Inspect the entire heating system to ensure that it is in a good and safe operating condition. At a minimum the City will require the furnace to be certified by a licensed heating contractor. 3. Electrical System — Remove enclosure around electrical panel to provide for proper clearance. Also ensure that the entire electrical system, including fixtures are in a safe condition relative to the size of the house and so it meets the provisions of the Minnesota State Electrical code. 4. Bathroom Ventilation — Install fan and vent to exterior. 2 FINEffiffi 5. Plumbing — Inspect the entire plumbing system so it meets the provisions of the Minnesota State Plumbing code. 6. Windows — Repair or replace all windows so that they are in good operating condition, including having screens present. One room in the lower level has no window and would need a window to be installed if it remained a separate room. An egress window would be required if any rooms were to be used as a bedroom. 7. Mold and Water Damage — Identify the cause of the mold and water damage and repair as needed. All mold is to be cleaned or removed from the property. 8. Appliances — Repair or replace the range so it is safe to use. 9. Ceramic Tile — Repair or replace loose tile in main floor bathroom. If replacement is chosen, contractor may use material other than tile such as a tub surround. 10. Garage — Repair hole in ceiling with 5/8" type x Sheetrock to provide proper fire separation. Install closer on garage service door between the residence and the garage. Remove Heat vent and repair hole with 5/8' type x Sheetrock. 11. Flooring — Repair or replace and damaged floor covering within the unit. There is a strong animal urine odor throughout the unit. Clean or replace all affected flooring so the odor no longer exists. 12. Chimney/Fireplace — Inspect and repair as needed. The City currently classifies this fireplace as "non-functional". 13. Exterior Concrete — Repair all deteriorated concrete so it is not a safety issue. 17825 County Road 24 — This is a custom built rambler with no basement. Minimum Bid $ 170,000 Health/Safety & Code issues to be addressed are as follows: 1. In -ground Swimming Pool — Repair existing pool to a safe operating condition. Another alternative would be to remove the pool and fill in the hole. The pool remains, the equipment shed will need to have the hole in the roof repaired and the toilet removed or brought up to current code. 2. Heating System — Inspect the entire heating system to ensure that it is in a good and safe operating condition. At a minimum the City will require the furnace to be certified by a licensed heating contractor. 3 DRAFT 3. Electrical System — Ensure that the entire electrical system, including fixtures are in a safe condition relative to the size of the house and so it meets the provisions of the Minnesota State Electrical code. 4. Plumbing — Inspect the entire plumbing system so it meets the provisions of the Minnesota State Plumbing code. 5. Windows — Repair or replace all windows so that they are in good operating condition, including having screens present. 6. Water Heater — Install drop pipe from pressure relief valve to meet current code. 7. Garage — Install 5/8" type x Sheetrock on the wall between the house and garage, and to the ceiling to provide adequate fire separation. 3225 County Road 101 — This is a turn of the century "4 -square" designed 2 story home. Minimum Bid $ 180,000 Health/Safety & Code issues to be addressed are as follows: 1. Heating System —Inspect the entire heating system to ensure that it is in a good and safe operating condition. At a minimum the City will require the furnace to be certified by a licensed heating contractor. 2. Electrical System — Ensure that the entire electrical system, including fixtures are in a safe condition relative to the size of the house and so it meets the provisions of the Minnesota State Electrical code. 3. Plumbing — Inspect the entire plumbing system so it meets the provisions of the Minnesota State Plumbing code. 4. Windows — Repair or replace all windows so that they are in good operating condition, including having screens present. 5. Water Heater — Redo venting to meet current code. 6. Install new driveway so it enters on Queensland Avenue. 4 11 ' 4020 County Road 101 — This is a turn -of -the -century 2 -story home that appears to have been moved to the present location. Minimum Bid $ 180,000 Health/Safety & Code issues to be addressed are as follows: 1. Heating System — Inspect the entire heating system to ensure that it is in a good and safe operating condition. At a minimum the City will require the furnace to be certified by a licensed heating contractor. 2. Electrical System — Ensure that the entire electrical system, including fixtures are in a safe condition relative to the size of the house and so it meets the provisions of the Minnesota State Electrical code. 3. Plumbing — Inspect the entire plumbing system so it meets the provisions of the Minnesota State Plumbing code. 4. Garage — Replace service door. 5. Ceilin — Repair all damaged ceiling areas. 6. Windows — Repair or replace all windows so that they are in good operating condition, including having screens present. 7. Handrail — Install handrail at upper level landing area. 8. Smoke Detectors — Verify all smoke detectors are in working order. Selection Process Schedule The following schedule has been established for receiving and evaluating responses to this Request for Proposals (RFP). The review committee will consist of City staff members. Issue RFP: Deadline for response to RFP: Review and select proposals Present recommendations to Council DRAFT Content of Responses to RFP Submissions shall be delivered to the Community Development Department no later than 4:30 p.m. on TBD. A complete response must include the following information: Qualifications of Firm: List and provide examples of other projects that demonstrate the qualifications of the firm to undertake the project, including a list of references. Qualifications of Individuals: Provide qualifications of the individuals within the firm who would be assigned to complete the project, including identification of the project manager. Financial Information: Provide documentation ensuring that your firm has the financial capacity to carry out the project in a timely manner. Also include financial references. For Additional Information Questions should be directed to: Jim Barnes, Housing Manager City of Plymouth 3400 Plymouth Blvd. Plymouth, MN 55447 Phone (763) 509-5412, Fax (763) 509-5407 E-mail jbarnes@ci.plymouth.mn.us 2 17920 30TH Place N. The furnace in the lower level, which is used to provide heat to the family room addition, is old and very filthy. The furnace should be inspected and cleaned by a heating contractor. Any necessary repair work should be completed. 2. The electrical panel located in the lower level in the kitchen area lacks the proper clearance so that the panel cover can be opened. The enclosure around the electric panel should be removed so as to provide proper clearances to the electric panel. 3. There are several open slots in the electrical panel. These slots should be sealed with breaker blanks. 4. In the lower level kitchen on the underside of the electric cooktop is a junction box that lacks a cover plate. As this cover plate is missing the wires supplying power to the cooktop are exposed. A junction box cover will need to be provided. 5. Improper plumbing materials (accordion pipe) have been used for the sink drain in the lower level kitchen. Additionally, this drain line has a sag in it. The accordion style piping should be removed and standard plumbing pipe utilized. A continual downward pitch must be maintained. 6. The lower level bathroom has no exhaust fan. An exhaust fan will need to be installed and vented to the exterior. 7. In the lower level as you head down the hallway, the first room on the right has a light fixture in a closet that is improper as it does not have sufficient clearances to combustibles. This light fixture will need to be removed and if it is reinstalled it will need to be placed on the ceiling of the closet. In the lower level as you head down the hallway the first room to the right lacks any sort of window that can be opened; therefore, it has no ventilation. A window would need to be installed which opens to the exterior to provide ventilation to this room. It should also be noted that this room is not permitted to be used as a bedroom as it lacks any type of egress window. 9. In the lower level as you head down the hallway, the second room on the right hand side of the hallway lacks a window screen for the window in this room. The crank mechanism for the window is also missing. The window will need to be repaired or replaced. 10. In the lower level as you walk down the hallway, the room to the left has a missing outlet cover plate, the window in the room will not close and the glass in the window is cracked. The glass will need to be replaced and the window repaired so that it can be fully closed. A cover plate will need to be installed. This room is not permitted to be used as a bedroom as it lacks any type of egress window. 101 Houses Page 2 11. An outlet adapter has been screwed in to a single bulb fixture in the mechanical room. The outlet adapter will need to be removed. 12. There is extensive mold and water damage to the sheetrock behind the laundry tubs. This sheetrock will need to be removed and replaced. 13. In the lower level, the windows in the family room lacked screens. Provide screens for these windows. 14. On the main level in the family room as you look out the windows, the window to the left lacks a screen and the sill is rotted such that the crank mechanism no longer can be properly used. A screen will need to be provided and the window will need to be repaired or replaced. 15. On the main level in the living room one window sill is rotted so that the mechanism to open the window cannot be properly used. Thus, the window will not open and close properly. Neither of the windows within the living room has a screen. Repair or replace the windows in the living room and provide screens. 16. The exterior of the oven door is separating from the interior portion. This will need to be repaired or the oven replaced. 17. There is improper clearance to the fixture bulb above the kitchen sink. As this is a heat lamp type bulb, it requires a minimum of one -inch clearance around the entire bulb. 18. The window over the kitchen sink has no screen. Provide a screen. 19. The electrical outlet in the main level bathroom is worn out so that it will not provide an adequate ground. This outlet will need to be replaced with a ground fault circuit interrupter outlet. 20. In the main floor bathroom, the tile in the tub area is very loose from the wall and lacks grout. The tile should be reset to the wall and then regrouted. 21. In the master bedroom the window lacks a screen. It cannot be properly opened as the sill is rotted and the mechanism will not function properly. Additionally, the lever lock is broken so that the window cannot be locked. The window will need to be repaired or replaced and a screen provided. 22. In the bedroom adjacent to the master bedroom, there is a damaged outlet and a missing cover plate. The outlet will need to be replaced and a cover plate provided. 23. In the garage an extension cord has been used to supply power to the garage door opener. The extension cord will need to be removed and an outlet installed into which this electrical device can be plugged directly. 101 Houses Page 3 24. In the garage there is a large hole in the ceiling. The damaged sheetrock will need to be removed and 5/8" type x sheetrock will need to be installed to provide the proper fire separation. 25. A vent for the furnace located in the lower level is running through the garage without proper fire collars. Vent -fast fire collars will need to be installed where the vent enters into the garage at the floor level as well as the ceiling level where it exits. 26. The service door between the garage and the residence does not self -close to a latched position. A closer will need to be installed so that the door is self-closing to a latched position to provide the proper separation. 27. A heat vent has been installed in the garage area. This heat vent will need to be removed and the opening will need to be sheetrocked with 5/8" type x sheetrock. 28. The carpet adjacent to the lower level kitchen is pulling up and creating a tripping hazard. The carpet will need to be secured to the floor. 29. The sidewalk area along the front of the house adjacent to the garage has sunk creating a significant tripping hazard as you attempt to access the garage through the service door. The concrete will need to be mudj acked or removed and replaced in order to eliminate this tripping hazard. 30. The fireplace located in the upper level family room appears to not have been used for a considerable amount of time. Per the City of Plymouth assessing records the fireplace is non-functional. The interior of the fireplace and chimney should be inspected and cleaned. Any corrective action will be based upon the findings of the contractor that conducts this inspection. 101 Houses 17825 Co Rd. 24 No house numbers are present on the structure. House numbers should be installed and be visible from the street. Page 4 2. There is exposed electrical wiring on the underside of the soffit adjacent to the side entry door where a light fixture has been removed. A light fixture should be reinstalled or the wiring capped and a cover plate installed over the junction box. 3. In the porch area overlooking the pool there are two cracked window panes. These window panes should be replaced. 4. The small bathroom adjacent to the porch area does not have any means of ventilation. An exhaust fan would need to be installed. 5. An outlet cover plate is missing from the area in which the refrigerator would normally sit. Install a cover plate. 6. The outlet adjacent to the kitchen sink is not grounded. This outlet will need to be grounded and ground fault circuit interrupter protected. 7. The electrical subpanels for the house adjacent to the boiler area are all substantially over -fused, as almost all fuses present are 30 amp fuses. Due to the number of subpanels present and the lack of any sort of diagram indicating which fuse operates which system in the house, I am unable to determine if there are other significant problems with the systems. There are two electrical motors connected to the heating plant for the property. The wiring to both motors is exposed and not concealed within junction boxes. Some type of junction boxes would need to be installed to protect and conceal this wiring. 9. The heating plant is of a configuration of which I have never seen before. It appears to be a wood burning fuel oil mixture. Due to the uniqueness of the plant, I am unable to evaluate its condition. I would recommend that a heating contractor examine the components to determine if they are properly connected and functioning in a proper manner. 10. The water heater lacks a pipe coming off of the relief valve. A pipe the same diameter of the relief valve would need to be installed to within IS" of the floor. 11. In the shed that contains the pool equipment there is a hole cut through the roof of the shed. The hole would need to be repaired. 12. In one side of the pool shed there is a toilet that has been installed which is not connected to a water supply. The toilet will need to be removed and if there is sewer access below the toilet it will need to be properly sealed. 101 Houses Page 5 13. Adjacent to the toilet is a plumbing clean out with a rag stuffed in it. The clean out would need to be repaired so that it is properly capped. 14. A portion of the pump equipment for the swimming pool has been removed. Additionally all piping leading to the pool has been cut. I would suggest that a pool contractor review the system to determine its ability to function and any upgrades it may need. 15. No electrical receptacle is present in the bathroom. An electrical receptacle should be installed which is ground fault protected. 16. The fire wall between the house and the garage has been removed. 5/8" sheetrock will need to be applied to the wall as well as the ceiling area to provide a fire separation. 17. The garage door opener is supplied with power through the use of an extension cord. An outlet should be installed into which the garage door opener can be plugged directly. 18. The outlet into which the extension cord supplying power to the garage door opener is plugged is ungrounded. This outlet will need to be repaired so it is ground fault protected. 19. In the garage there is some electrical wiring that does not terminate within a junction box and it is not capped. This wiring should be capped and a junction box installed into which it can terminate. 101 Houses 3225 Co. Rd. 101 Page 6 On the north side of the house there is one screen which is torn and damaged. This screen should be replaced. 2. A window on the porch is broken. The glass will need to be replaced. 3. An extension cord is in use to supply power to the garage door opener. This extension cord will need to be removed and an outlet installed into which the garage door opener can be plugged directly. 4. In the outdoor decorative electric light sitting in the middle of the yard, the glass has been broken. There are shards of glass extending from the light fixture. The broken glass should be removed and replaced. In the kitchen area there is an electrical outlet located in the area where the stove would sit. This outlet is not grounded. The outlet will need to be grounded. 6. A window screen in the dining room area is damaged. This screen should be replaced. One window in the dining area has a broken window pane. The window pane should be replaced. In the dining area the switch outlet combination as you enter into the dining area is wired improperly as the electrical outlet shows reversed polarity on my tester. The outlet should be rewired properly. 9. In the right bedroom at the top of the staircase the outlet behind the bedroom door has a broken cover plate. The cover plate will need to be replaced. Additionally this outlet is ungrounded. The outlet will need to be grounded. 10. In the same bedroom the outlet located left of the door as you enter into the bedroom has two problems. The top receptacle has no power to it; the bottom receptacle is ungrounded. The outlet should be rewired so that it is wired properly. 11. At the top of the staircase the bedroom to the far left, both outlets are ungrounded. They should be wired properly so that they are grounded. 12. In the bedroom to the left and forward of the staircase, all outlets are ungrounded. The outlets should be wired so that they are properly grounded. 13. In the bedroom to the right and forward of the staircase all outlets are not grounded. The outlets should be rewired so as to be grounded. In lieu of grounding the receptacles it should be determined if the electrical inspector would allow two -prong ungrounded receptacles to be reinstalled as this 101 Houses Page 7 appears to be a very old portion of the house and in all likelihood had such receptacles prior to these being installed. 14. In the bedroom to the right and forward of the staircase one window screen is badly damaged. This screen should be replaced. 15. In the attic space there is a junction box with pendant wiring emanating from it leading to a porcelain single bulb fixture that has a multi -outlet adapter screwed into it. The entire system should be removed. A new junction box installed into which all the wires can junction and a cover plate placed on this box. Additional wiring should be run from that box to a new light fixture. 16. In the living room area on the first floor there are two broken window panes. Both window panes should be replaced. 17. In the basement there are numerous electrical deficiencies including uncapped wiring, wiring which does not terminate within a junction box, switch and outlet boxes without covers, wiring which is improperly supported, and a large knock out missing from the side of the electric panel. All violations should be corrected. 18. The vent for the water heater has a bow in the middle and has almost no rise as it dumps into the old chimney stack. The venting should be redone for the water heater. 101 Houses 4020 Co. Rd. 101 The service door to the garage is rotted. The door should be replaced. Page 8 2. There is an open junction box and a missing outlet cover plate in the garage. Both items should have plates. 3. The smoke detector on the main level in the house did not function. Repair or replace. 4. On the upper level both three prong receptacles in the blue bedroom are ungrounded. They will either need to be grounded or the plugs will need to be changed to two prong ungrounded receptacles. On the upper level in the green bedroom the plaster ceiling is falling down. This ceiling will need to be repaired. 6. In the upper level green bedroom the windows do not function properly as they will not stand in a held open position. The windows will need to be repaired or replaced. 7. In the large upstairs bedroom the window does not function properly as it will not stay in an open position. It will need to be repaired or replaced. No handrail is present to the upper level landing area. A handrail should be installed to the upper level landing area. 9. In the basement there are numerous open junction boxes, switches with missing cover plates, and outlets with missing cover plates. All electrical boxes will need to have plates installed. 10. The sump pump in the basement area is plumbed to the laundry tub. This sump pump will need to be directed so as to discharge to the exterior. 11. The furnace in the house is quite old; it should be inspected by a licensed contractor to ensure that it functions properly.