HomeMy WebLinkAbout1997 01-27 EDAP Regular Session CITY COUNCIL AGENDA -4- January 27, 1997
f. Presentation on Police, Fire, and Americans with Disabilities Act Building
Requirements
- Requested Council Action:
- Presentation by City Manager.
10. Adjournment
EDA AGENDA
CITY OF BROOKLYN CENTER
January 27, 1997
7 p.m.
1. Call to Order
2. Roll Call
3. Approval of Agenda
4. Commission Consideration Item
a. Resolution Authorizing Acquisition, Establishing Offer of Just Compensation,
Authorizing Negotiation and Execution of Purchase Agreement, Authorizing
Payment for Acquisition, Closing Costs and Relocation Claims for Various
Properties Located in the 53rd Avenue Development and Linkage Project
- Requested Commission Action:
- Motion to adopt resolution.
5. Adjournment
• Memorandum
To: Michael J. McCauley, City Manager
From: Tom Bublitz, Community Development Specialis
Date: January 23, 1997 '
Subject: Resolution Authorizing Acquisition, Establishing Offer of Just Compensation,
Authorizing Negotiation and Execution of Purchase Agreement, Authorizing
Payment for Acquisition, Closing Costs and Relocation Claims for Various
Properties Located in the 53rd Avenue Development and Linkage Project
This memorandum addresses four appraisal reports completed for properties in the 53rd Avenue
Development and Linkage Project. With these four appraisals, there is only one remaining
property to be appraised. The. reason for the delay in obtaining the last appraisal is due to an
ongoing co '
g conflict with the homeowner's work schedule. The EDA
g s ro e appraiser h
P P rty PP as
informed me he has been able to schedule an inspection of the last property for the week of
January 20. The appraisal report should be available for the first EDA meeting in February.
The following table provides a summary of the four appraisals and a comparison of the appraised
• values to the 1996 estimated market values (EMVs) for the properties:
Address Appraised Value 1996 EMV Percent Over 1996 EMV
802 -53rd Ave. No. $61,500 $55,500 11%
5320 Bryant Ave. No. $76,000 $63,600 19.5%
610 -53rd Ave. No. $128,000 $122,000 5%
(fourplex)
620 -53rd Ave. No. $148,000 $123,500 20%
(fourplex)
Upon approval by the EDA, Evergreen Land Services Company will present a letter to the
respective homeowners offering to purchase their property at the property's appraised value. If
the offer of appraised value is acceptable to the owner, the EDA Executive Director is authorized
to execute the purchase agreement on behalf of the EDA. A copy of the purchase agreement is
attached. Also, excerpts from the appraisals, along with the review appraisals, are included with
this memorandum.
In addition to the purchase agreement, Evergreen Land Services Company will be meeting with
• eligible homeowners and tenants to prepare relocation claims. This is a separate process from
the purchase agreement, and the attached resolution will authorize the EDA Executive Director
to authorize payment of the claim pursuant to the City's purchasing policy.
Commissioner introduced the following resolution and
moved its adoption:
EDA RESOLUTION NO.
RESOLUTION AUTHORIZING ACQUISITION, ESTABLISHING OFFER OF
JUST COMPENSATION, AUTHORIZING NEGOTIATION AND EXECUTION
OF PURCHASE AGREEMENT, AUTHORIZING PAYMENT FOR
ACQUISITION, CLOSING COSTS AND RELOCATION CLAIMS FOR
VARIOUS PROPERTIES LOCATED IN THE 53RD AVENUE
DEVELOPMENT AND LINKAGE PROJECT
WHEREAS, EDA Resolution No. 96 -214 directed the Economic Development
Authority in and for the City of Brooklyn Center ( "Brooklyn Center EDA") to administer and
execute the 53rd Avenue Development and Linkage Project, including administration and
execution of all project activities; and
WHEREAS, the following properties to be acquired are included in the 53rd
Avenue Development and Linkage Project area:
802 -53rd Avenue North
• 5320 Bryant Avenue North
610 -53rd Avenue North
620 -53rd Avenue North
WHEREAS, the EDA wishes to provide a procedure for acquiring the above -
described properties by negotiated purchase when possible; and
WHEREAS, the Brooklyn Center EDA has reviewed the following items relative
to the appraisals of the real property located at the addresses listed in paragraph 2 above: (a)
appraisal reports; (b) review appraisals; and
WHEREAS, the fair market values of the real property located at the addresses
listed above have been established by the appraisal and review appraisal for each property; and
WHEREAS, it is the intent of the Brooklyn Center EDA to present offers to the
owners of the properties listed above based on the appraisal and review appraisals completed on
the properties.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development
Authority in and for the City of Brooklyn Center as follows:
1. The appraisal and review appraisal documents referenced in paragraph 4 for the
following properties are hereby accepted and the fair market values, as
established by the appraisal and review appraisals, are hereby established as
just compensation for the following properties as follows:
EDA RESOLUTION NO.
Property Address Appraised Value
802 -53rd Avenue North $61,500
5320 Bryant Avenue North $76,000
610 -53rd Avenue North - $128,000
620 -53rd Avenue North $148,000
2. The Brooklyn Center EDA Executive Director is hereby authorized to make a
written offer in the amount of the appraised value to the owners of the real
property listed in paragraph 1 above for the acquisition of the property.
3. The EDA Executive Director is hereby authorized to negotiate and execute
purchase agreements on behalf of the Brooklyn Center Economic Development
Authority for the properties listed in paragraph 1 above in the amount
determined by the appraisal and review appraisal ( "Appraised Value "), in
accordance with the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, as amended ( "Uniform Relocation Act "),
regulations promulgated pursuant thereto, and pursuant to the purchase
agreement form attached.
4. In cases in which the owners of the properties described in paragraph 1 above
do not agree to the sale of such properties for the Appraised Value, the EDA
Executive Director shall attempt to negotiate with such owners a purchase
agreement acceptable to the landowner and secure the execution of such
purchase agreement by the owner, which purchase agreement shall be
submitted for approval to the EDA Board of Commissioners.
5. Claims for relocation benefits required by the Uniform Relocation Act duly
submitted and in accordance with the requirements of the Uniform Relocation
Act may be approved by the EDA Executive Director and paid in accordance
with the City purchasing policy.
Date President
The motion for the adoption of the foregoing resolution was duly seconded by commissioner
and upon vote being taken thereon, the following voted in
favor thereof:
• and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
i
J. Scott Renne, MAI
• , - Real Estate Appraiser • Consultant • REALTOR
2729 IRVING AVENUE SOUTH • MINNEAPOLIS, MINNESOTA 55408'
( (6I 2) 871 -1417 FAX (612) 871 -1481 • PAGER (612) 661 -3256
January 12, 1997
Brad Hoffman
Community Development Director
City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, Minnesota 55430
Subject: Market value appraisal of a single family home located at 802 53rd Avenue
North, Brooklyn Center (Thompson property); Development process, complete
appraisal/Report type, summary appraisal report
Dear Mr. Hoffman:
Pursuant to your request, I have completed a market value appraisal report of the above
referenced property. s
The purpose of the appraisal is to arrive at an estimate of market value of the fee simple
• interest of the subject property as of December 30, 1996. The report is subject to the
contingent and limiting conditions and certification stated in the report.
The term market value is defined as:
The most probable price, as of a specified date, in cash, or in terms equivalent to
l cash, or in other precisely revealed terms, for which the specified property rights should
sell after reasonable exposure in a competitive market under all conditions requisite to
fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self- i
interest, and assuming that neither is under undue duress.
The function of this assignment was to estimate the value for purposes of a possible I
property acquisition. This report was prepared in conformance with the Uniform
s;
Standards of Professional Appraisal Practice. The development process for this appraisal
was a complete appraisal and the report type is summary appraisal report.
The scope of the assignment included:
Physical inspection of the subject neighborhood and property on December
30, 1996. The owner accompanied the appraisers on the inspection.
f _
• Survey and analysis of comparable sales and offerings for sale
i
s
r
- Highest and best use analysis
• g Y
Application of the appraisal process
A general description of legal data is:
- According to Hennepin County records the fee owner is James K.
P tY
Thompson
- The PID is 01- 118 -21 -34 -0027• The legal description is:
g
East 50 feet of Lot 11, Block 3, Bellvue Acres
The subject has taxes payable in 1996 of $738.99 plus specials of $9.49 for a
total of $748.48 based on an estimated market value of Land $16,700;
Building $34,200; Total $50,900
- According to Hennepin County records the property has not sold within
the past five years.
•
•
Page 2
Reconciliation
•
Based on the analysis described in this letter the estimate of the market value for the
subject property as of December 30, 1996 is:
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. ...............................
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:...................::?:•?}}:•: i;:; ?T: ^TT +:•T:G ?.ti : ?T:•T:•:ti4T:•:: .:...... ,...t. ........A \t \ + V . h\.. ,n, •.... ,t T,..,.,....n .•h n.?w: •.v.??v.:4. {fi v. { {w::: } }:ii::
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.........:.:v.:;;.T• {.; :•: {: }::irT4.f•:i•v.. ...... ... n.. ....., ....t .1.,. •T: ? ?�4'i {v ? ............. ................. ...... { h,;,; v::: tii:. .,v: { ?v }i:•T }:•TT:• ::-' }Ti ?:'•:
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.::: n::: ':; :.: .:'+::.:? - }}}:\•:{{ J: w. x n:: v:::;•::: v: yv.:v v:v:v:•:h• ?v::n::t••. ^h -+. , ... v .... ... ..... ........... v..................... >.•: hv.v:tw: ...... +..•:... ;...
- - •,•:::::::�- ?�:• : <�.:: 3..:...h.. .,•..::: T ?: ? { ?... .. :: r:: .: ,. ..,, •y ...}}?: n?T:'• : {•TT:::- .::.{vw::r.::.,::::::: ny::.::::: ,,tv:: .:.:: -: }•:.;
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v: hv: ?:::::::: r. t.} •}: T. }:J }T: '<•.: v.,wn:vn V ,'{•.:vttr.4 }.v� •:. ♦MT.vT: h* 9iG v:.$h• :,Y�,v:. A:. .......... }... ..OLv-
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Cost Approach $57,800
Sales Comparison Approach $61,500
Income Approach Not applied
VALUE CONCLUSION $61,500
This conclusion is based upon our personal inspection and review of the subject property,
. comparable sales, and application of the appraisal process.
Respectfully Submitted,
J. Scott Renne, MAI, CAE Marri K. Renne, CAE
•
Page 17
REVIEW APPRAISAL
•
A. APPRAISAL IDENTIFICATION
1. Owner of Property: James K. Thompson
2. Location of Property: 802 53rd Ave. N., Brooklyn Center, Mn.
3. Appraiser(s): J. Scott Renne and Marri Kunik Renne
4. Project: 53rd Avenue Project
5. Just Compensation: $61,500.00
B. DATA
1. Highest and Best Use: R -1 Single Family
2. Zoning: R -2
3. Cost Approach: Utilized Marshall and Swift Residential Building Cost
e Land value determined by comparable sales.
4. Income Approach: Considered but not applied.
5. Market Approach: Standard method using five comparable sales in the subjects
neighborhood. Three sales were "arms - length ", one sale
utilized was an estate sale and one sale was a sale to
government. All sales were in the proximity of the subject.
Note was made in the appraisal of the above mentioned sales.
•
•
C . ANALYSIS OF DATA: A complete review of all data contained in this report was made.
All data appears to be representative of the market for the
subject property. No adjustments to the Renee's conclusions
were necessary. All calculations and determinations were
considered to be accurate and within applicable standards.
D. ANALYSIS OF VALIDITY: All of the appraiser's methods, judgements, and
conclusions appear to be valid and in conformity with
applicable standards. No different approaches to value were
deemed necessary.
E. RECOMMENDATION OF VALUE: It is the conclusion of the review appraiser that the
value of $61,500 (Sixty One Thousand Five
Hundred Dollars) recommended by Mr. & Mrs.
Renee be considered the fair market value for
December 30, 1996.
•
CERTIFICATION
• I have reviewed the appraisal listed below for the property owned by James K. Thompson, on
this 14th Day of January, 1997 and certify the following statements regarding this review to be
true and complete to the best of my knowledge:
1. 1 have made a complete review of the above - referenced appraisal for the subject property. The
purpose of this review is to recommend the fair market value of the subject property for purposes
of establishing a reasonable acquisition price. Fair market value is defined as the price which the
property will bring in a competitive market under all conditions requisite to a fair sale, which
would result from negotiations between a buyer and a seller, each acting prudently, with
knowledge and without undue stimulus.
2. I have made an exterior inspection of the subject property and of all parcels used as
comparable sales by the appraiser.
I I am not aware of any unlawful occupancy of the property appraised and reviewed herein.
4. 1 believe that the work of the appraiser(s) with respect to the subject property has been
performed in a competent manner in accordance with applicable State law, the Uniform Act, and
Department of Housing and Urban Development policies and requirements.
• 5. 1 have re ared the attached written ort rep delineates the subject property and the
P P P� J P Pe rtY
interest to be acquired therein, identifies the property by name of owner, parcel number or other
identification, establishes just compensation (fair market value) for the property, and identifies
and examines the appraisal report reviewed.
Based upon my review of the above- listed appraisal and any other pertinent data and in
conjunction with the established policy and regulations, the FAIR MARKET VALUE of land
and improvements (other than those listed in a separate fixture appraisal) as of January 14,
1997, is recommended at $61,500.00 (Sixty One Thousand Five Hundred Dollars).
SIGNED: Joseph J. D aB=i C k- Review Appraiser � 0 v` Date
Cert. General Real Prop. #4003156
Witness Date
e
1 -23 -1 997 1:55PM FROM J. SCOTT RENNE 612 871 1481 P.2
J. Scott Renne, MAI
Real Estate Appraiser • Consultant . REALTOR
2729 IRVING AVENUE SOUTH • MINNEAMOIIS, MINNESOTA 5S408
(6 12) 871 -1417 • FAX (612) 871 -1481 PAGER (6 12) 661 -3256
January 12, 1997
Brad Hoffinan
Community Development Director
City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, Minnesota 55430
Subject: Market value appraisal of a single family home located at 5320 Bryant Avenue
I
North, Brooklyn enter c
yn ( M c Nally property); Development rocess, complete
appraisal/Report P
e s P
typ s appraisal report
Dear Mr. Hoffman:
Pursuant to your request, I have completed a market value appraisal report of the above
referenced property.
The purpose of the appraisal is to arrive at an estimate A ` .
of market value
PP or cur fee t simple
interest of the subject property P
� as of January 6 1997. The report is subject t o the
contingent i P P rh' and limiting �' P J
conditions ns and certification staled '
g in the report.
The term market value is defined as:
The most probable price, as of a specified date, in cash, or in terms equivalent to
Cash, or in other precisely revealed terms, for which the specified property rights should
sell after reasonable exposure in a competitive market under all conditions requisite to
fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self -
interest, and assuming that neither is under undue duress.
The function of this assignment was to estimate the value for purposes of a possible
property acquisition. This report was prepared in conformance with the Uniform
Standards of Professional Appraisal Practice. The development process for this appraisal
was a complete appraisal and the report type is summary appraisal report.
The scope of the assignment included:
Physical inspection of the subject neighborhood and property on January 6,
1997. The owners accompanied the appraisers on the inspection.
• - Survey and analysis of comparable sales and offerings for sale
P g
- ,.--- -_ �.= ri °I r r[l.;i�l 1, j�,U I 1-CGIVIVC b i " � /• i I d,`j j
r. 3
• Reconciliation
Based on the analysis described in this letter the estimate of the market value for the
subject property as of January 6, 1997 is:
,: � ..aura w ,ty •, , ....• , y., ,.o • , , r+
• � yk5 � ' � , ��� � �y � , y���w ro ��,a 7i`• �! �vu �' R �y'w'•. Y w.•,� Y �'
\NN •NCI YJ kn
4wJb wn�.fAVt�Y4vo*+ ,�.7 `'!"��y �� ... � �, w,,, \ � - you,,, y S
`�
C �W` ?�'�'L \�\.i����.uaawn�`S�' Nv� � Sri. YS w F'!i'M• „n w. W � �.k' ... �... � v .0
w\.. y�Cui•�MN:.... w.+. NU`.4:% w\ v� \ i�V. r.`4`� Ck U ::SK"..+ -uu�a
Cost Approach $80,500
Sales Comparison Approach $73,500
Income Approach Not applied
VALUE CONCLUSION $76,000
This conclusion is based upon our personal inspection and review of the subject property,
comparable sales, and application of the appraisal process.
Respectfully Submitted,
S
J. Scott Renne, MAI, CAE Marri K Renne, CAE
Page 17
• REVIEW APPRAISAL
A. APPRAISAL IDENTIFICATION
1. Owner of Property: Stephen Allen McNally
2. Location of Property: 5320 Bryant Ave. N., Brooklyn Center, Mn.
3. Appraiser(s): J. Scott Renne and Mani Kunik Renne
4. Project: 53rd Avenue Project
5. Just Compensation: $76,000.00
B. DATA
1. Highest and Best Use: R -1 Single Family
2. Zoning: R -2
3. Cost Approach: Utilized Marshall and Swift Residential Building Cost
• Land value determined by comparable sales.
4. Income Approach:
Considered but not applied
5. Market Approach: Standard method using five comparable sales in the subjects
neighborhood. Three sales were "arms - length ", two sales
utilized were estate sales. All sales were in the proximity of
the subject. Note was made in the appraisal of the estate
sales.
•
•
C . ANALYSIS OF DATA: A complete review of all data contained in this report was made.
All data appears to be representative of the market for the
subject property. No adjustments to the Renee's conclusions
were necessary. All calculations and determinations were
considered to be accurate and within applicable standards.
D. ANALYSIS OF VALIDITY: All of the appraiser's methods, judgements, and
conclusions appear to be valid and in conformity with
applicable standards. No different approaches to value were
deemed necessary.
E. RECOMMENDATION OF VALUE: It is the conclusion of the review appraiser that the
value of $76,000 (Seventy Six Thousand
Dollars) recommended by Mr. & Mrs.
Renee be considered the fair market value for
January 6, 1997.
I
•
CERTIFICATION
• I have reviewed the appraisal listed below for the property owned by Stephen Allen McNally, on
this 14th Day of January, 1997 and certify the following statements regarding this review to be
true and complete to the best of my knowledge:
1. I have made a complete review of the above - referenced appraisal for the subject property. The
purpose of this review is to recommend the fair market value of the subject property for purposes
of establishing reasonable acquisition rice. Fair market value is defined as the rice which the
g q P P
property will bring in a competitive market under all conditions requisite to a fair sale, which
would result from negotiations between a buyer and a seller, each actin prudently, with
g Y � g P Y�
knowledge and without undue stimulus.
2. I have made an exterior inspection of the subject property and of all parcels used as
comparable sales by the appraiser.
3. I am not aware of any unlawful occupancy of the property appraised and reviewed herein.
4. I believe that the work of the appraisers) with respect to the subject property has been
performed in a competent manner in accordance with applicable State law, the Uniform Act, and
Department of Housing and Urban Development policies and requirements.
• 5. I have prepared the attached written report, which delineates the subject roe and the
P J property rtY
interest to be acquired therein, identifies the property by name of owner, parcel number or other
identification, establishes just compensation (fair market value) for the property, and identifies
and examines the appraisal report reviewed.
Based upon my review of the above- listed appraisal and any other pertinent data and in
conjunction with the established policy and regulations, the FAIR MARKET VALUE of land
and improvements (other than those listed in a separate fixture appraisal) as of January 14,
1997, is recommended at $76,000.00 (Seventy Six Thousand Dollars).
SIGNED: Joseph J. DaBruzzi,, J
Review Appraiser �, u' Date // y /
Cert. General Real Prop. #40 3156
Witness Date
•
' 1
J. Scott Renne, MAI
• Real Estate Appraiser •Consultant •REALTOR
2729 IRVING AVENUE SOUTH • MINNEAPOLIS, MINNESOTA 55408
(612) 871 -1417 • FAX (612) 871 -1481 • PAGER (612) 661 -3256
January 17, 1997
Brad Hoffinan
Community Development Director
City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, Minnesota 55430
Subject: Market value appraisal of a four unit apartment building located at 610 53rd
Avenue North, Brooklyn Center (Ortega property); Development process, complete
appraisal/Report type, summary appraisal report
Dear Mr. Hoffman:
Pursuant to your request, I have completed a market value appraisal report of the above
referenced property.
The purpose of the appraisal is to arrive at an estimate of market value of the fee simple
interest of the subject property as of January 11, 1997. The report is subject to the
contingent and limiting conditions and certification stated in the report.
II � The term market value is defined as:
The most probable price, as of a specified date, in cash, or in terms equivalent to
i cash, or in other precisely revealed terms, for which the specified property rights should
sell after reasonable exposure in a competitive market under all conditions requisite to
fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-
interest, and assuming that neither is under undue duress.
The function of this assignment was to estimate the value for purposes of a possible
property acquisition. This report was prepared in conformance with the Uniform
Standards of Professional Appraisal Practice. The development process for this appraisal
was a complete appraisal and the report type is summary appraisal report.
}
The scope of the assignment included: ?
Physical inspection of the subject neighborhood and property on January
11, 1997. The owner accompanied the appraisers on the inspection. Two of
the four units (which were vacant at the time of inspection) were viewed.
The upper and lower units are reported to be occupied according to the
owner.
i
- Survey and analysis of comparable sales and offerings for sale
• -
Telephone discussion with Jen
p anune Atchison, Housing Official for the City
of Brooklyn Center
- Highest and best use analysis
Application of the appraisal process
A general description of legal data is:
- According to Hennepin County records the owner is SeIwin Ortega etal.
- The PID is 01- 118 -21 -43 -0074; The legal description is:
The East 100 feet of the West 199.32 f
f eet o Lot 11, Block Z Bellvue Acres
- The subject has taxes axes payable in 1996 of $5,299.40 plus specials of $21.26
for a total of $5,320.66 based on an estimated market value of Land
$30,000; Building $84,000; Total $114,000
- According to Hennepin County records the roe sold in February,
for $120,700 on a warranty deed.
p p IY�
Page 2
3
1
1 Reconciliation
•
Based on the analysis described in this letter the estimate of the market value for the
subject property as of January 11, 1997 is:
.::::::.:............... ...............................
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.w; :•::::.:w:::.v. :v ? }:C } :: r.::: {::.v: }:ijiC;:: C::::t- } ?:: •......:. -... v.
:::.. v : ::�:::.�w.... ? }:. }: ^ }i } }:•: ^ ?; }•: };;• } } } ?:x:: ::n. v.:::.v: ,.::..... :::::::nom, tt - }:Sv:
:..:v.......... r..::.� ::....... ...:...:::. ...... . n.. .. }r:}:• }ii ? } }: {::::: :•.w.vv.., .. •. :: •. �: :: r: r. �::: .:::: •::.. v : . - ... .. vv: r :.:• } }, :: }:::ti {t• ?:::: v..v... { ...?.. yr }r. ;vti$�::
�� .....; : .:::::::::::: K;:::::::::.Y::::; :}.. ;. ...:.:......•:.v::::::::::::••: xw: yn} }:C ?. :, is :. .... ..... r.... . /.( ............. v....} ... i
nv:.. :::.v; v: { {� }} }.v; }: }::•? iii?:{{• Y:::;•}: K{{{ C.;,v: ^:iC } } };;::::::::::::n:v: n ::......::::::. . .. .. ..v.... \ ......n. \:::.............v..... r..•. +.•:; ::,`.:.:
�tt
v....... .......:. ....,.: \...,.......:: ...... a n........ ...v........,.n :....:?......{....... {. r. x 4 ..r .}.n.. n.... v.n .. .....
:::.. v:. vv:: w:. v::; n:•} i };:::::CV;::n..v :::.::..:::::: {::: r::.tC:•i }.v:;: :.r:{•'rt }: nw::: •. ::....... ,. ...... n.n.... ............. ..........•....... v�?�{...............n ...
{..v .......v::; •::: x, v.......... nv:.v 4 .v......... v,r... v:. :........ . v.. r. v .................. k...Mt?:; };.::.
{.?:•}:^}?:{^ w:. v:.t t:•;•:- i}}: Y:; n.• vn• v:::: •::.�n..•w:.. :: x:::::. w: :.::: •v ............... .. 4....�. �........ v \...- ........n.:. x........xn...... .w. nn. .. ...... \....
.........: ... .....:.....:......::::...... ;.:...........,.. .......:::::.::.vv............. ..0.•..:::•::i• {:::::::: '•:........::.............: \,....................., K.$:,K... t....n.n...
.iW:; v ;•: ; v::::;•. �:::::::::.:{ 4: i6? ii:{• ::n} } }::.iv.v:::::::.v::.v::::: r n_:::::: • ..........:::::.... .. •i :: �: .. .. ,......, n........::::::.......
K ^: { { {;t. ? }: { {:::: :} ?;± ?:i: ii; ...n;:•v,;v •:{ G;^}..,:....::.. yv{•• ::::::::: iC:; uv ::vw::: :.v:?:.:C;•} }?* ?: {v : :.. ....v............
...................... ............................... . ......w:::•;::.: •:::::::::v: x:::; . }•v:::::::, ....... nv:::;- n- ..:::::ti A;; v; •: -. v::: }Si:::vK•} .. , �
.................... ......::::.:. � ..:. ,. :..:.:• ::::..: •.:::.. ?i ? }:' {{ t {•:•:• }:CY,r.v.::?,..:: <:•?::^i}.:-}:•.{•. i{ v?' r ?isy % ?::'i:ii:ii:�:::r.:n { }ij: • :v::: {:::::
Cost Approach $109,700 {
Sales Comparison Approach $128,000
i
In c o me me
Approach PP 128
$ 500
i
VALUE CONCLUSION $128,000 r
This conclusion is based upon our personal inspection and review of the subject property,
. comparable sales, and application of the appraisal process.
i
i
Respectfully Submitted, I
I
J. Scott Renne, MAI, CAE '
Mam Renne, CAE
I
ii
If
It
i�
�t
i-
s
1
Page 25
• REVIEW APPRAISAL
A. APPRAISAL IDENTIFICATION
1. Owner of Property: Selwin and Odelia Ortega
2. Location of Property: 610 53rd Ave. N., Brooklyn Center, Mn.
3. Appraiser(s): J. Scott Renne and Marri Kunik Renne
4. Project: 53rd Avenue Project
5. Just Compensation: $128 000.00
P ,
B. DATA
1. Highest and Best Use: R -1 Single Family
2. Zoning: R -2
3. Cost Approach: Utilized Marshall and Swift Residential Building Cost
• Land value determined by comparable sales.
4. Income Approach: Utilized the Gross Rent Multiplier method. Rents and
Multiplier were the product of the 14 sales reviewed.
Data appears to be representative of the market.
5. Market Approach: Five comparable sales were utilized in this approach, out
of the fourteen sales that were reviewed. It appears that a
great deal of effort was expended in this approach. It appears
that the conclusion of value is representative of the market and
no adjustment is necessary to the Renee's conclusion.
•
•
C . ANALYSIS OF DATA: A complete review of all data contained in this report was made.
All data appears to be representative of the market for the
subject property. No adjustments to the Renee's conclusions
were necessary. All calculations and determinations were
considered to be accurate and within applicable standards.
D. ANALYSIS OF VALIDITY: All of the appraiser's methods, judgements, and
conclusions appear to be valid and in conformity with
applicable standards. No different approaches to value were
deemed necessary.
E. RECOMMENDATION OF VALUE: It is the conclusion of the review appraiser that the
value of $128,000 (One Hundred Twenty Eight
Thousand Dollars) recommended by Mr. & Mrs.
Renee be considered the fair market value for
January 11, 1997.
•
• CERTIFICATION
I have reviewed the appraisal listed below for the property owned by Selwin and Odelia Ortega,
on this 22nd Day of January, 1997 and certify the following statements regarding this review to
be true and complete to the best of my knowledge:
1. 1 have made a complete review of the above - referenced appraisal for the subject property. The
purpose of this review is to recommend the fair market value of the subject property for purposes
of establishing a reasonable acquisition price. Fair market value is defined as the price which the
property will bring in a competitive market under all conditions requisite to a fair sale, which
would result from negotiations between a buyer and a seller, each acting prudently, with
knowledge and without undue stimulus.
2. I have made an exterior inspection of the subject property and of all parcels used as
comparable sales by the appraiser.
3. 1 am not aware of any unlawful occupancy of the property appraised and reviewed herein.
4. 1 believe that the work of the appraiser(s) with respect to the subject property has been
performed in a competent manner in accordance with applicable State law, the Uniform Act, and*
Department of Housing and Urban Development policies and requirements.
re
�I ! P g P P q
5. I have prepared the attached written report, which delineates the subject property and the
interest to be acquired therein, identifies the property by name of owner, parcel number or other
identification, establishes just compensation (fair market value) for the property, and identifies
and examines the appraisal report reviewed.
Based upon my review of the above - listed appraisal and any other pertinent data and in
conjunction with the established policy and regulations, the FAIR MARKET VALUE of land
and improvements (other than those listed in a separate fixture appraisal) as of January 22,
1997, is recommended at $128,000.00 (One Hundred Twenty Eight Thousand Dollars).
SIGNED: Joseph J. DaBruzzi
Review Appraiser Y w Date ilz- /
Cert. General Real Prop. # 003156
Witness Date
•
J. Scott Renne, NW
• Real Estate Appraiser • Consultant • REALTOR
2729 IRVING AVENUE SOUTH • MINNEAPOLIS, MINNESOTA SS408
■ (612) 871 -1417 • FAX (612) 871 -1481 • PAGER (612) 661 -3256
4
January 17, 1997
Brad Hoffman
Community Development Director
City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, Minnesota 55430
Subject: Market value appraisal of a four unit apartment building located at 620 53rd
Avenue North, Brooklyn Center (Berg/Nelson/Steile property); Development process,
complete appraisal/Report type, summary appraisal report
Dear Mr. Hoffman:
Pursuant to your request, I have completed a market value appraisal pp al re ort of the above
referenced
need prope
rt y .
The purpose of the appraisal is to arrive at an
PP estimate of market value of th
II ' • interest of the subject roe a fee simple
property rty as of December 9, 1996. The report is subject to the
contingent and limiting conditions and certification stated in the report.
The term market value is defined as:
The most probable puce, as of a specified date, in cash, or in terms equivalent to
cash, or in other precisely revealed terms, for which the specified property rights should
sell after reasonable exposure in a competitive market under all conditions requisite to
fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-
interest, and assuming that neither is under undue duress
The function of this assignment was to estimate the value for purposes of a possible s
property acquisition. This report was prepared in conformance with the Uniform
Standards of Professional Appraisal Practice. The development process for this appraisal
was a complete appraisal and the report type is summary appraisal report.
The scope of the assignment included:
Physical inspection of the subject neighborhood and property on December
9, 1996. The owners accompanied the appraisers on the inspection.
• - Survey and analysis of comparable sales and offerings for sale
a
- Highest and best use analysis !
• -
Application of the appraisal PP PP process
P
A general description of legal data is:
- According to Hennepin County records the fee owner is Jack Fahrenholz
and wife; the vendees under a contract for deed are Harriet Berg, Dwaine
Nelson, and Donald Steile
The PID is 01- 118 -21-43 -0073; The legal description is:
The West 99.32 eet o Lot 11 Block llvue Acres
f f � Be
- The subject has taxes payable in 1996 of $2,325.92 plus specials of $22.00
for a total of $2,347.92 based on an estimated market value of Land
$30,000; Building $88,000; Total $118,000
- According to Hennepin County records the roe sold in December
P tY property riY ,
1988 for $123,600 on a contract for deed.
I �
4
d
•
Page 2
• Reconciliation
Based on the analysis described in this letter the estimate of the market value for the
subject property as of December 9, 1996 is:
............ w; ; ; ..; ; .:::::::::::.}•,. }: ^: {Sw::: Si'Sfi:;..................... ' ........ }n.. vx;: ;•: }. ......v..4 } .x..}:: „w:;:•i• ^:.
++((�� .; � ?:'iih } }.� •.:;:::::::}: {S }:vv:::::.vw: }v;:;•:' v;h };• }::.;. n.v v... r... .........
. �::: :....... y } } }iv:S';: } }i';5: :• :. \:: v'::::.:t-v n. v ... : :• ::::::::::....... .. ::: ..: }:Si :•:
................. :.: �\.,............,...................:..:}:,,........... x...... ..,....:,.....................: r:,t:. •acv •:.
:Y`(:i::: {{: ?::: ; Liv:} ?; %': % } ::iiy:4�'ti `:i•:::Xii iiv: i }:v 4'ri:>i:;i,;:
Cost Approach $145,000
Sales Comparison Approach $150,000
Income Approach $143,000
VALUE CONCLUSION $148
I
i
This conclusion is based upon our personal inspection and review of the subject property, !
• comparable sales, and application of the appraisal process.
Respectfully Submitted,
c �
J. Scott Renne, MAI, CAE Mam Renne, CAE
I
•
Page 25
REVIEW APPRAISAL
•
A. APPRAISAL IDENTIFICATION
1. Owners of Property: Harriet J. Berg, Donald E. Steile, Dwaine Nelson, and
Helen L. Morales
2. Location of Property: 620 53rd Ave. N., Brooklyn Center, Mn.
3. Appraiser(s): J. Scott Renne and Mani Kunik Renne
4. Project: 53rd Avenue Project
5. Just Compensation: $148,000.00
B. DATA
1. Highest and Best Use: R -1 Single Family
2. Zoning: R -2
• 3. Cost Approach: Utilized Marshall and Swift Residential Building Cost
Land value determined by comparable sales. Determination
of physical depreciation was discussed with Mr. Renee
and found to be reliable based on updates completed by
the current owners.
4. Income Approach: Utilized the Gross Rent Multiplier method. Rents and
multiplier were the product of the 14 sales reviewed.
Data appears to be representative of the market.
5. Market Approach: Five comparable sales were utilized in this approach, out
of the fourteen sales that were reviewed. It appears that a
great deal of effort was expended in this approach. It also
appears that the conclusion of value is representative of the
market and no adjustment is necessary to the Renee's
conclusion. A discussion with Mr. Renee concerning the
adjustment made for age /condition/quality indicated this
was necessary due to extensive updating of three units to a
level that is not typical in investment property.
C . ANALYSIS OF DATA: A complete review of all data contained in this report was made.
All data appears to be representative of the market for the
i
subject property. No adjustments to the Renee's conclusions
were necessary after an indepth conversation with Mr. Renee
concerning the improvements made to the subject. All
calculations and determinations were considered to be accurate
and within applicable standards.
D. ANALYSIS OF VALIDITY: All of the appraiser's methods, judgements, and
• conclusions appear to be valid and in conformity with
applicable standards. No different approaches to value were
deemed necessary.
E. RECOMMENDATION OF VALUE: It is the conclusion of the review appraiser that the
value of $148,000 (One Hundred Forty Eight
Thousand Dollars) recommended by Mr. & Mrs.
Renee be considered the fair market value for
December 9, 1996.
•
CERTIFICATION
I have reviewed the appraisal listed below for the property owned by Harriet J. Berg, Donald E.
Steile, Dwaine Nelson, and Helen L. Morales, on this 23rd Day of January, 1997 and certify the
following statements regarding this review to be true and complete to the best of my knowledge:
1. I have made a complete review of the above - referenced appraisal for the subject property. The
purpose of this review is to recommend the fair market value of the subject property for purposes
of establishing
a reasonable acquisition rice. Fair market value is defined as the price which the
q p A
property will bring in a competitive market under all conditions requisite to a fair sale, which
would result from negotiations between a buyer and a seller, each acting prudently, with
knowledge and without undue stimulus.
2. I have made an exterior inspection of the subject property and of all parcels used as
P Y
J p p p
comparable sales by the appraiser.
3. I am not aware of any unlawful occupancy of the property appraised and reviewed herein.
4. I believe that the work of the appraiser(s) with respect to the subject property has been
performed in a competent manner in accordance with applicable State law, the Uniform Act, and
Department of Housing and Urban Development policies and requirements.
5.1 have prepared the attached written report, which delineates the subject property and the
interest to be acquired therein, identifies the property by name of owner, parcel number or other
identification, establishes just compensation (fair market value) for the property, and identifies
and examines the appraisal report reviewed.
Based upon my review of the above - listed appraisal and any other pertinent data and in
conjunction with the established policy and regulations, the FAIR MARKET VALUE of land
and improvements (other than those listed in a separate fixture appraisal) as of January 23,
1997, is recommended at $148,000.00 (One Hundred Forty Eight Thousand Dollars).
SIGNED: Joseph J. DaBruzzi
Review Appraiser
Cert. General Real Prop. #4003156
Witness Date
-- -- --' -- - -_---
PURCHASE AGREEMENT
This Purchase Agreement is made ,199
by and between and
(collectively referred to as "Seller ")
ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN
CENTER, (EDA) a public body corporate and politic under the laws
of Minnesota, located at 6301 Shingle Creek Parkway, Brooklyn
Center, MN 55430 ( "Buyer ").
R - .i al s
A. Seller is the owner of that certain real estate located
at _ City of Brooklyn'Center, Hennepin
County, Minnesota, legally described as:
together with all improvements thereon (the "Property ").
B. Buyer desires to acquire the Property by voluntary sale
• in fee simple absolute.
C. Seller agrees to sell the Property to Buyer.
Aarppment
In consideration of the mutual agreements made herein,
Seller and Buyer agree as follows:
1. QffgK/Acceptan Buyer agrees to purchase and Seller
agrees to sell the Property under the terms and conditions stated
in
this Agreement. Seller is being allowed, as part of this
Agreement, to remove the personal property more fully described
in the attached Bill of Sale. With the exception of said
described items, the sale contemplated by this agreement includes
all fixtures and improvements on the property, including storm
widows and inserts, storm doors, screens, awnings, window shades,
blinds, curtain /traverse /drapery rods, attached lighting fixtures
g g
with bulbs, plumbing fixtures, sump pumps, water heaters, heating
systems, built -in appliances, water softeners, garbage disposals,
installed carpeting, work benches, television antennas and hood
fans. Upon delivery of the deed, Sellers shall also deliver a
Bill of Sale for the above personal property.
2. Purchase Price The purchase price for the Property
• shall be _
($ ) and shall be payable as follows:
• a. (S ) as earnest
money, payable upon EDA execution of this
agreement.
b. The balance of the Purchase Price in cash or
by certified funds or the equivalent on the
Closing Date (as hereafter defined).
The Buyer, in its discretion and in partial payment of the
purchase price, may assume or take title subject to an existing
7 Y 9
indebtedness encumbering the Subject Property, in which case the
cash to be paid at the time of closing shall be reduced by the
then remaining indebtedness.
3. Marketability of Tile The Seller shall, on or prior
to the date of this Purchase Agreement, deliver to the Buyer all
unrecorded instruments relating o interests in the Subject
Property,
g
7
and an
abstract of title or registered property
abstract, as applicable. The Buyer shall, at its cost, have the
abstract certified to a current date or, if necessary, have a
registered property abstract prepared. After the date of
delivery of the abstract or registered property abstract or the
date of this Agreement, whichever is later, the Buyer shall have
UP to twenty (20) days for the examination thereof, and to
I
li
dever written e objections if an t h
• J y, o the Seller. Seller shall
have 30 days after receipt of Buyer's written objections to make
title marketable.
a. If the Seller proceeds in good faith to make title
marketable but fails to do so within the 30 day period,
Buyer may terminate this Agreement without any liability on
its part, and Seller shall promptly refund to Buyer the
Earnest Money paid.
b. If Seller fails to make title marketable within
the 30 day period due to Seller's failure to proceed in good
faith, or, if title is marketable
but Seller default i
s nits
obligations under this Agreement, Buyer u er ma seek an o f the
following g Y Y remedies Y
e edies
g permitted under law: (i? terminate this
Agreement by notice to Seller, in which event the Seller
shall refund to Buyer the Earnest Money paid; or (ii) seek
specific performance of this Agreement.
C. If title is marketable or is corrected within the
30 day period and Buyer defaults in any of the agreements
herein, Seller may terminate this Agreement and retain all
Payments made under this Agreement as liquidated damages.
The termination period for a Notice of Cancellation of this
Agreement shall be 30 days as permitted by Minnesota
Statutes, Section 559.21, subd. 4.
• d. Notwithstanding anything in this Agreement to the
contrary, Buyer retains the right to initiate condemnation
proceedings against the subject property to assure timely
acquisition.
4. Conditions to Closina The closing of the transaction
contemplated by this Agreement and the obligation of the Buyer to
purchase the Property shall be subject to the following
conditions:
a. Buyer shall have determined on or before the
Closing Date that it is satisfied, based upon the results of
and matters disclosed by any environmental or soil
investigations or testing of the property, that there are no
environmental or soil conditions that would materially
affect the value of the Property or that would interfere
with Buyer's proposed use of the Property for residential
redevelopment purposes. Buyer and Seller each acknowledge
that at environment
al contamination of any kind would interfere
with Buyer's e s ro osed use of the Property
Y P proposed
Y
b. Buyer shall have reviewed and approved title to
the property pursuant to Paragraph 3 of this Agreement.
•
5. Environmental and Soil Tnvestigat Buyer and its
agents shall have the right, at its sole option and risk, to
enter the Property for the purpose of testing soils, testing for
asbestos containing materials, surveying, or doing such other
work as may be necessary to determine the suitability of the
Property for uses by the Buyer. If Buyer investigates and tests
the Property pursuant to this section, Buyer shall pay all costs
and expenses of such investigation and testing. Upon request of
Buyer, Seller shall also permit Buyer to review all environmental
reports and files, if any, relating to the Property and in
Seller's possession.
6.
R On o
eal F.�ta Q x a r before the
— Closing Date,
Seller wi ll ill pay all delinquent real estate taxes, pen and
interest, if any. Real estate taxes payable in the year of
closing will be p 9 p aced between Buyer and Seller as of the
Closing Date. Seller warrants that real estate taxes
payable in
199 are (homestead non -hom
( estead) .
7. S� Pn iAl Assessments On or before the Closing Date,
Seller will pay all installments of special assessments certified
for payment with real estate taxes payable in the year of
• closing. Seller will pay on the Closing Date all other special
assessments levied as of the date of this Agreement and
assessments, if any, pending as of the Closing Date. Seller's
• provision for payment of pending assessments shall be by payment
into escrow of 1.5 times the estimated amount of the assessments.
Deferred ASCPssmen s and Tax„ps Seller shall pay On
date of closing n deferred
ecial real estate taxes or s
g Y p
assessments payment of which is required as a result of the
closing of this sale.
8. Clnsinff Date The closing shall take place at a
location designated by Buyer on , 199
9. Documents to he D 1iy_r d at CInsina On the Closing
Date, Buyer shall deliver to Seller the balance of the purchase
Price and Seller shall deliver to Buyer:
a. A duly executed general warranty deed, conveying
marketable title to the Property to Buyer, subject only
to: (i) building and zoning laws, ordinances, state and
federal regulations; (ii) utility and drainage
easements which do not interfere with Buyer's intended
use of the property; (iii) reservation of any minerals
or mineral rights to the State of Minnesota.
b. A duly executed affidavit of Seller.
• C. A receipt evidencing payment of real estate taxes for
which payment was due prior to the Closing Date.
d. All documents necessary to establish marketable title
to Buyer.
10. Cloyinq Cnsrs Buyer shall pay all expenses of
examination of title and recording of the Seller's warranty deed.
Buyer shall also pay state deed tax. Seller shall pay all
recording fees and charges relating to the obtaining of and
filing of instruments required to make title marketable.
11. L7tilitian Seller shall be responsible for payment of
all utilities and insurance premiums through the date of closing
or date of vacation, whichever is later
12. Covenants, Rpm esPntati nns and Warranti Ac of Sellg .
a. The signatories to this Agreement represent that they
are the fee owners of the Property and are authorized
to execute this Agreement.
b. Seller warrants that it will take no actions to
encumber title to the Property after the date of this
• Agreement and that it will indemnify and hold the Buyer
harmless against any liens or encumbrances established
in violation of this provision.
I
• C. Seller warrants that it has not used the Prop for
p Y
the storage of hazardous substances or petroleum
products and, as of the date of this Agreement, is not
aware of any facts the existence of which would
constitute a violation of any local, state or federal
environmental law, regulation or review procedure, or
which would give any person a valid claim under the
Minnes Environmental Rights Act or the federal
Comprehensive Environmental response, Compensation and
P � P
Liability Act.
d. Seller warrants that there has been no labor or
material furnished to the Property for which payment
has not been made.
e. Seller warrants that there are no present violations of
any restrictions relating to the use or improvement of
the Property.
f. The warranties made in this paragraph shall survive
closing without merger in the deed.
13. Covenant's, R _nr _s -nt'atinns. and Warrant•LPG of B uv r
• Buyer is the EDA in and for the City of Brooklyn Center under the
laws of the State of Minnesota and has the power to enter into
this Agreement and to carry out its obligations hereunder. The
signatories to this Agreement represent that they are authorized
to execute this Agreement on Buyer's behalf.
14. No ArokPr TnvolvPrl The Seller and Buyer represent and
warrant to each other that there is no broker involved in this
transaction with whom it has negotiated or to whom it has agreed
to pay a broker commission or finder's fee in connection with
negotiations for the sale of the Property.
15 . Possession and TnAnranrc Seller shall deliver
Possession of the Property to Buyer on the Closing Date in the
same condition as exists on the date of this Agreement, with the
exception of removal of the items described in paragraph 1
hereof. Risk of loss from casualty or any liability incurred by
or as a result of the use or contact with the Property shall be
the Seller's until delivery of possession to the Buyer as herein
provided.
16 Personal Prope on the date when possession is
transferred to Buyer, the Seller shall have removed from the
Property any and all personal property belonging to him which is
not included in this sale. Any personal property which is not
• removed by the date of transfer of possession shall be considered
abandoned. The Seller agrees to indemnify and hold the Buyer
harmless for all costs incurred in disposing of personal property
__, �_, _� -• �•-• _� O���OvOu_� C vC:[I:K�GV LrH�iL � G'C'J ;' -l:C Cir
• left in or at the Property by the Seller after the date of
transfer of possession.
17. Removal of Hazardous Ma _e ial. Seller, prior to
vacation of the Property, shall remove all substances which,
under state or federal law, must be disposed of at an approved
disposal facility. This includes, but is not limited to, used
oil, paints, solvents, fertilizers, poisons, and the like.
18. Re1oc_ation Costs The Buyer acknowledges that any
responsibility to pay relocation costs and benefits in accordance
with Minnesota St atutps , Chapter 117, is a separate obligation,
no part of which is reflected in the purchase price contained in
paragraph 2 above.
19 well Disc losure . Buyer acknowledges, to the extent
applicable, receipt of a well disclosure statement from Seller,
attached as Exhibit A to this Agreement.
20. Disrl oytire: Tndividual Sewacre Trgatment Syste
Sellers disclose that there (is) (is not) an individual sewage
treatment system on or serving the Property. If there is an
individual sewage treatment system on or serving the Property,
Sellers disclose that the system (is) (is not) in use, and
Sellers further disclose that the type of system is a
system and the location is shown on the map
attached as Exhibit B to this Purchase Agreement.
21. Ent�i rpAgreement Amen m n s . This Agreement
represents the complete and final agreement of the parties and
supersedes any prior or contemporaneous oral or written
understanding between the parties. This Agreement may be amended
only in writing, signed by both parties.
22 Rind F. : Assignm This Purchase Agreement
shall be binding upon the parties hereto and their respective
heirs, executors, administrators successors and assig Each
party agrees to give the other party notice prior to assigning
its interest in the Property or this Agreement.
23. Notice Any notice, demand, request or other
communication which may or shall be given or served to or on
Seller by Buyer or to or on Buyer by Seller shall be deemed to
have been given or served on the date the same is deposited.in
the United States mail, registered or certified, postage prepaid
and addressed as follows:
•
X770 �..• c r C11�OvCvi� r. VtRla'<G�i'Y �Hl�lL SERV Y'A"GE
• (1) If to Seller:
(2) If to Buyer: Thomas R. Bublitz
Community Development Specialist
City of-Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, MN 55443
23. Specific Per formance . This Purchase Agreement may be
specifically enforced by the Buyer.
IN WITNESS WHEREOF, the undersigned have caused this
Agreement to be executed on the date written above.
BUYER SELLERS:
I
Economic Development Authority
Y
in and for the City of
Brooklyn Center
• By.
Michael J. McCauley
Executive Director
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•
A"Form No. 1 5 19 - W�w.�„w.uo� «e.W +cu�.T.nN..�wci
MINNESOTA WELL DISCLOSURE STATEMENT
• Minnesota Law requires that before signing an agreement to sell or transfer real ro
June 30, 1990, the seller must disclose information in writing to the buyer about the s wand
location of all )mown wells on the property. This requirement is satisfied by delivering to the buyer
either a statement by the seller that the seller does not know of any wells on the property, or a
disclosure statement indicating the legal description and county and a map showing the location
of each well. In the disclosure statement the seller must indicate, for each wa whether the well is
in use, not in use or sealed.
A seller who fails to disclose the eiistence of a well at the time of sale and knew of, or had reason
to know of. the existence of a well is liable to the buyer for costs relating to the sealing of the well
and reasonable attorney fees for collection of costs from the seller, if the action is commenced within
six years after the date the buyer closed the purchase of the real property where the well is located.
Instructions for completion of this form are on the reverse side.
I. PROPERTY DESCRIPTION
Street address:
«.' C—hy
2. LEGAL DESCRIPTION
3. WELL DISCLOSURE STATEMENT
(Check the appropriate box.)
• ❑ The seller certifies that the seller does not know of any wells on the above described real
Property.
If this option is checked, then skip to the last line and sign and date this statement.
❑ The seller certifies that the following wells are located on the above described real property.
MN. Unique Well Year of Well IN USE NOT IN SEALED
Well No. Depth Const. Type USE
well ❑ ❑ ❑
Well 2 ❑ ❑ ❑
Well 3 ❑ ❑ ❑
4. SEALED WELL INFORMATION
For each well designated as sealed above, complete this section.
When was the well sealed?
Who sealed the well?
Was a Sealed Well Report filed with the Minnesota Department of Health? Yes No
5. MAP
Complete the attached map showing the location of each well on the real property.
6. CERTIFICATION BY SELLER
I certafy that the information provided above is accurate and complete to the best of my
knowledge.
• SQW
INSTRUCTIONS FOR COMPLETING THE WELL DISCLOSURE STATEMENT
DEFINITION
A "well" means an excavation that is drilled, cored, bored, washed, driven, dug, jetted, or
• otherwise constructed if the excavation is intended for the location, diversion, artificial
recharge, or acquisition of groundwater.
MINNESOTA UNIQUE WELL NUMBER
All new wells constructed AFTER January 1, 1975 should have been assigned a Minnesota
unique well number by the person constructing the well. If the well was constructed after this
date you should have the unique well number in your property records. If you are unable to
locate your unique well number and the well was constructed AFTER January 1. 1975, contact
your well contractor. If no unique well number is available, please indicate the depth and year
of construction for each well
WELL TYPE
Use one of the following terms to describe the well type.
WATER WELL A water well is any type of well used to extract undwater for
private or public use. Examples of water wells are: domestic wells. drive-point wells, dug
wells, remedial wells. and municipal wells.
IRRIGATION WELL An irrigation well is a well used to irrigate agricultural lands.
These are typically large diameter wells connected to a large pressure distribution system
MONITORING WELL A monitoring well is a well used to monitor groundwater
contamination. The well is typically used to access groundwater for the extraction of
samples.
DEWATERING WELL A dewatering well is a well used to lower groundwater levels
to allow for construction or use of underground spaces.
INDUSTRIAUCOMMERCIAL WELL An industriallcommercial well is a nonpotable
well used to extract groundwater for any nonpotable use including groundwater thermal
thermal exchange wells (heat um sand heat loops).
P P
•
WELL USE STATUS
Indicate the use status of each well. CHECK ONLY 1 BOX PER WELL
IN USE A well is "in use" if the well is producing sufficient water to meet its intended
use and is being operated on a regular basis.
NOT IN USE A well is "not in use" if the Wallis inoperable and not in use or the well is
disconnected from a power supply and is not sealed.
SEALED A well W'sealed "if the well has been sealed by a licensed contractor and there
is a Sealed Well Report on file at the Minnesota Department of Health. A properly sealed
well has been sealed by a licensed contractor by pumping grout throughout the entire
borehole from tna bottom of the well
NOTE. If a well is inoperable and not in use or disconnected from a power source, it
must be sealed by a licensed well contractor or a well owner must obtain a maintenance
permit from the Minnesota Department of Health and pay an annual maintenance fee. If a
well is operable and properly maintained, a maintenance permit is not required.
•