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HomeMy WebLinkAbout1996 05-13 EDAP Regular Session EDA AGENDA CITY OF BROOKLYN CENTER May 13, 1996 1. Call to Order 2. Roll Call 3. Approval of Agenda and Consent Agenda -The following items are considered to be routine by the Economic Development Authority and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in which event the item will be removed from the consent agenda and considered at the end of Commission Consideration Items. a. Approval of Minutes - Commissioners not present at meetings will be recorded as abstaining from the vote on the minutes. 1. April 22, 1996 - Regular Session b. Resolution Accepting Bids and Awarding Contract for Structure Demolition at 6550 West River Road (Premier Mechanical Building) 4. Public Hearing a. Regarding the Sale of Land by the Economic Development Authority in and for the City of Brooklyn Center 1. Resolution Authorizing President and Executive Director to Execute Purchase Agreement for the Sale of the EDA -Owned Property at 5449 Emerson Avenue North in Brooklyn Center • Requested Commission Action: -Open the public hearing. -Take public input. -Close the public hearing. - Motion to adopt resolution. 5. Commission Consideration Items a. Resolution Authorizing Acquisition of Certain Real Property Within the City of Brooklyn Center Located at 718 - 53rd Avenue North, and Authorizing Execution of Purchase Agreement and Payment for Acquisition Costs of Said Property • Requested Commission Action: -Adopt resolution. • 6. Adjournment MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION APRIL 22, 1996 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in regular session and was called to order by President Myrna Kragness at 7:19 p.m. ROLL CALL I , O President Myrna Kragness, Commissioners Kathleen Carmody, Debra Hilstrom, Kristen Mann, and Charles F. Nichols, Sr. Also present were Executive Director Michael J. McCauley, Director of Public Services Diane Spector, City Attorney Charlie LeFevere, and Council Secretary Carla Wirth APPROVAL OF AGENDA AND CONSENT AGENDA A motion by Commissioner Hilstrom and seconded by Commissioner Mann to approve the April 22 1996, agenda and consent agenda passed unanimously. • APPROVAL F O MINUTES A motion by Commissioner Hilstrom and seconded by Commissioner Mann to approve minutes of the April 8, 1996, regular session as printed passed unanimously. COMMISSION CONSIDERATION ITEMS RESOLUTION PROVIDING FOR A PUBLIC HEARING REGARDING THE SALE OF LAND BY THE ECONOMIC DEVELOPMENT E T AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER AND AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE A PURCHASE AGREEMENT FOR THE SALE OF SUCH LAND LOCATED AT 5449 EMERSON AVENUE NORTH IN BROOKLYN CENTER The Executive Director advised this land was previously purchased by the City to remove substandard housing. Now, a lot is available for development which will result in the building of a single- family residence and place the property back into taxable status. A motion by Commissioner Hilstrom and seconded by Commissioner Mann to open the public hearing at 7:20 p.m. passed unanimously. 04/22/96 -1- PUBLIC INPUT • No one appeared to address this item. The City Manager advised this project is similar to past programs which allows for affordable housing to be constructed which meets current Code and fits the character of the lot and neighborhood. He noted this property is geared for first -time home buyers. Commissioner Nichols asked if this will exclude buyers from outside the community. The City Manager explained the agreement will specify the type of building to be constructed which will then be sold on the open market. The City would sell the property to the developer who, after construction of the home, would make the home available for sale. Commissioner Nichols noted the option of first offering an option to purchase to surrounding property owners, but they would not be first -time home owners. The City Manager advised it is anticipated that if the Council chooses to move forward, another pubic hearing would be held and agreement finalized with Mr. Bohanon, unless another proposal comes forward. Commissioner Carmody noted the property has been held by the City since 1991 with no other proposals submitted. The City Attorney advised the matter under consideration is to direct staff to discuss with the proposed purchaser and come to an agreement. Then a public hearing would be scheduled on that , agreement, but not as a bidding process. A motion by Commissioner Carmody and seconded by Commissioner Mann to close the public hearing at 7:24 p.m. passed unanimously. RESOLUTION NO. 96 -14 Commissioner Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION PROVIDING FOR A PUBLIC HEARING REGARDING THE SALE OF LAND BY THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER AND AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE A PURCHASE AGREEMENT FOR THE SALE OF SUCH LAND LOCATED AT 5449 EMERSON AVENUE NORTH IN BROOKLYN CENTER The motion for the adoption of the foregoing resolution was duly seconded by Kristen Mann and passed unanimously. • 04/22/96 -2- ADJOURNMENT • A motion by Commissioner Hilstrom and seconded by Commissioner Mann to adjourn the meeting at 7:25 p.m. passed unanimously. President I Recorded and transcribed by: Carla Wirth Timesaver Off Site Secretarial • • 04/22/96 -3- 3b MEMORANDUM To: Michael J. McCauley, City Manager ; From: Tom Bublitz, Community Development Specialist , / Subject: Resolution Accepting Bids and Awarding Contract for Structure Demolition at 6550 West River Road (Premier Mechanical Building) Date: May 8, 1996 Bids were received for the demolition of the EDA -owned property located at 6550 West River Road (Premier Mechanical building) on May 7, 1996. Bids were received from seven demolition contractors. The low bid was submitted by K. A. Stark Excavating, Inc., in the amount of $10,550. However, K. A. Stark Excavating did not submit the proper bid security with the bid and staff is recommending the EDA accept the second lowest bid which was submitted by Carl Bolander and Sons Company in the amount of $10,890, which is $340 more than the low bid submitted by K. A. Stark Excavating, Inc. Staff believes the bids received on this demolition were very competitive bids, and recommends the EDA Board accept the bid from Carl Bolander and Sons Company and authorize the EDA President and Executive Director to execute a contract for the demolition. Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR STRUCTURE DEMOLITION AT 6550 WEST RIVER ROAD (PREMIER MECHANICAL BUILDING) WHEREAS, pursuant to an advertisement for bids for structure demolition at 6550 West River Road, Brooklyn Center, Minnesota (Premier Mechanical building), the following bids were received, opened and tabulated by a representative of the Community Development Director on the 7 day of May, 1996: Belair Excavating $11,835 Yes Herbst and Sons $15,900 Yes Thomas Contracting $18,200 Yes Veit & Company, Inc. $13,670 Yes Carl Bolander & Sons Co. $10,890 Yes DKH Excavating, Inc. $17,784 Yes K. A. Stark Excavating, Inc. $10,550 No WHEREAS, K. A. Stark Excavating, Inc., submitted the lowest bid for structure demolition of 6550 West River Road (Premier Mechanical building), but did not submit the correct bid security as required by the specifications; and WHEREAS, due to the lack of a proper bid security, the Economic Development Authority in and for the City of Brooklyn Center considers it appropriate to award the contract for structure demolition at 6550 West River Road to the next lowest responsible bidder, Carl Bolander & Sons Co., in the amount of $10,890. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center that: 1. The EDA President and Executive Director are hereby authorized to execute a contract with Carl Bolander & Sons Co. for structure demolition t at 6550 West River Road, Brooklyn Center, Minnesota (Premier Mechanical building) in the amount of $10,890. I • EDA RESOLUTION NO. 2. All costs associated with the J ro'ect shall be accounted P o for in the EDA special operating fund. 4 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. • Memorandum To: Michael J. McCauley, City Manager From: Tom Bublitz, Community Development Specialist Date: May 8, 1996 Subject: Public Hearing Regarding the Sale of Land by the Economic Development Authority in and for the City of Brooklyn Center and Resolution Authorizing President and Executive Director to Execute Purchase Agreement for the Sale of the EDA -Owned Property Located at 5449 Emerson Avenue North in Brooklyn Center At its April 22, 1996, meeting, the EDA reviewed a proposal to purchase and construct a new single - family home on the EDA -owned single- family property located at 5449 Emerson Avenue North. The proposal was submitted by Howard Bohanon Homes, Inc. At the April 22 meeting, the EDA accepted Mr. Bohanon's offer to purchase the property and build a single - family home based on the home designs reviewed at the meeting and contingent on holding a public hearing on the terms and conditions of the sale of the property to Mr. Bohanon. The sale price of the lot is $15,000, which is in the market value range established by the City Assessor's • department of $13,600- $17,000. Pursuant to state law, at the April 22 meeting the EDA approved EDA Resolution No. 96 -14 which authorized a public hearing to consider the terms and conditions of the sale of the property to Mr. Bohanon. The public hearing is scheduled for the May 13 EDA meeting. Upon completion of the public hearing, the EDA will be requested to consider the approval of the purchase agreement for the sale of the property. It should be noted that, although not required by statute, notices of the hearing were mailed to the property owners in the area immediately surrounding the lot at 5449 Emerson Avenue North. Staff has prepared a purchase agreement for the sale of the property to Howard Bohanon Homes, Inc., a copy of which is attached to this memorandum. It is the intent of Howard Bohanon Homes, Inc., to provide construction financing for the proposed home and at the point of construction financing, the EDA will be "cashed out" of the project. The plans for the proposed home were submitted for EDA review at the April 22, 1996, EDA meeting. The estimated price of the home is $92,000, and first -time home buyer mortgage funds have been reserved for the property. Additionally, • Howard Bohanon Homes, Inc., has specified the types of materials to be used in • EDA RESOLUTION NO. construction of the home which include the following: • Exterior siding - vinyl • Soffit - vinyl • Fascia - vinyl • Front door - metal insulated • Windows - vinyl thermopane • Garage door - metal raised panel • Landscaping - sod and grading A representative of Howard Bohanon Homes, Inc., will be at Monday's meeting and staff will be prepared to respond to any questions the EDA may have regarding the purchase of this property by Howard Bohanon Homes, Inc. ■ • • PURCHASE AGREEMENT THIS AGREEMENT, made and entered into this 13 day of May, 1996, by and between the ECONOMIC DEVELOPMENT LO MENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER, a public body corporate and politic, with offices at 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430 (the "Seller ") and HOWARD BOHANON HOMES, INC., a Minnesota corporation (the "Buyer "). WITNESSETH 1. Description of Land Sold Seller, in consideration of the covenants and agreements of Buyer hereinafter contained, hereby sells and agrees to convey unto Buyer, or its successors and assigns, by quit claim in the form attached, upon the prompt and full performance by Buyer of their part of this Agreement, the tract of land lying and being in the County of Hennepin, located at 5449 Emerson Avenue North and legally described in Exhibit A attached hereto (hereinafter "land sold herein" or the "Property"). 2. Purchase Price Buyer, in consideration of the covenants and agreements of Sellers, contained herein, hereby agrees to purchase the Property and agree to pay to Seller as and for the purchase price the sum of Fifteen Thousand Dollars ($15,000) (the "Purchase Price "). The Purchase Price shall be payable by Buyer to Seller in the manner and at the times following, to • wit: (a) $500 cash, earnest money, receipt of which is hereby acknowledged. (b) $14,500, paid at time of closing by cash, certified or cashier's check, or wire transfer of guaranteed funds to Seller's bank account on the date of closing. 3. Taxes and Special Assessments Seller shall pay all real estate taxes, interest and penalties, if any, and all installments of special assessments relating to the land sold herein which were due and payable in the year 1996 and all prior years. Buyer shall pay (and hereby assumes) all real estate taxes and installments of special assessments, relating to the land sold herein which become due and payable in the year 1997 and all subsequent years thereafter. Sewer availability charges (SAC) attributable to the Property shall be paid by Seller. 4. Title Unless waived by Buyer, performance by Buyer hereunder shall be expressly contingent upon the Buyer being able to obtain, at its own expense, an Owners Title Policy in the' amount of the Purchase Price, or other evidence of title satisfactory to Buyer, showing good and marketable title in Seller. Buyer shall be allowed thirty (30) days from the date of this Agreement to investigate the state of title to the Property and to make any objections thereto, said objections to be made in writing or deemed to be waived. Pending cure of the objections, the payments hereunder required shall be postponed, but upon cure of the objection and within five (5) days after written notice, Buyer shall perform as provided in this Agreement. If the objections to title • are not cured within one hundred and twenty (120) days from the date of written objection thereto as above - provided, this Agreement shall, at the option of Buyer, be void and neither party shall be liable for damages hereunder to the other party; but if the objections shall be cured within said time, and Buyer shall default in any of the agreements and continue to default for a period of five (5) days after written demand by Seller upon Buyer setting forth the specific default of Buyer hereunder, then, and in that case, Seller may terminate this Agreement. 5. Right of Entry Buyer shall have the right, prior to the closing date, to enter upon the land sold herein for the purpose of taking soil tests, borings, making surveys and maps and performing preliminary investigative work in connection with the Buyer's purchase of land sold herein, provided, however, that Buyer shall indemnify and hold harmless Seller from any mechanic liens or any claim arising out of such preliminary development work by Buyer. 6. Closing Date The closing of the sale of the subject property shall take place on a date as may be mutually agreed upon by the Seller and Buyer but not later than July 15, 1996. The closing shall take place at the offices of the Economic Development Authority in and for the City of Brooklyn Center, 6301 Shingle Creek Parkway, Brooklyn Center, MN 55430, or at a location mutually agreed on by Buyer and Seller. At the closing, Seller and Buyer shall deliver to one another the instruments and funds specified herein. 7. Warranties of Seller Seller represents and warrants, which representations of • warranty shall be true as of the Closing Date and shall survive the Closing (and shall be a condition precedent of the obligations of Buyer hereunder) as follows: (a) There is no environmental litigation pending or threatened against the Property. (b) The Property is served by a sanitary sewer system and municipal water system. 8. Notices. All notices provided herein shall be given in person or sent by United States Mail, postage prepaid, to the parties at the following addresses (or such other addresses as either party may, from time to time, designate in writing to the other): If to Buyer, to: Howard Bohanon Homes, Inc. P.O. Box 486 Anoka, MN 55303 If to Seller, to: Economic Development Authority in and for the City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, Minnesota 55430 -2- • With copy to: Corrine Thomson Kennedy & Graven, Chartered 470 Pillsbury Center Minneapolis, MN 55402 Deposit in United States Mail of said notice on the date such notice is to be given, or earlier, shall be deemed timely and acceptable. 9. Successors and Assigns: No Merger The terms, covenants, and conditions of this Purchase Agreement, and particularly paragraph 11 of this Agreement, shall be binding upon and inure to the benefit of the successors and assigns of the respective parties hereto, and shall survive closing and shall not merge with any deed or other instrument of conveyance. Time is of the essence of all matters to be performed in this Agreement. 10. Documents to be Delivered at Clo ing The following documents shall be delivered at closing: By Seller: (i) A Quit Claim Deed. (2) A Seller's Affidavit, in standard form. (3) Well Disclosure Certificate. • By Buyer: (1) A Certificate of Real Estate Value. 11. Design Approval a) Buyer agrees to construct on the property a detached single - family dwelling structure (the "Improvements ") according to the plans and specifications presented and reviewed at the April 22, 1996, and May 13, 1996, meeting of the Economic Development Authority in and for the City of Brooklyn Center and which have been approved by Seller and are on file in Seller's offices. The provisions set forth in this paragraph shall survive closing; b) Buyer agrees to commence construction of the Improvements no later than July 1, 1996, and to complete construction of the Improvements no later than December 1, 1996; and c) All construction of the Improvements shall be performed in a workerlike fashion and according to the Approved Plans. Any material deviation from the Approved Plans must be approved by Seller, which approval shall not be withheld unreasonably. 12. Well Disclosure Statement Exhibit B attached hereto is a completed form of a Minnesota Well Disclosure Statement and is incorporated as if fully set forth herein. 13. Septic System Disclosure Exhibit C attached hereto is a statement regarding disclosure of any septic system on the Property. • 14. Closing Costs Seller to pay for costs related to updating Abstract for the Property and for state deed tax. Buyer to pay costs associated with the recording of the deed on the Property. -3- 15. Dew If Buyer defaults in any of the agreements herein, Seller may terminate this Agreement, and on such termination all payments made hereunder shall be retained by Seller as liquidated damages. If Seller defaults in any of the agreements herein, Buyer may terminate this Agreement and seek return of the earnest money. This provision shall not deprive either party of the right of enforcing the specific performance of this Agreement, provided this Agreement is not terminated and action to enforce specific performance is commenced within six months after such right of action arises. In the event Buyer defaults in its performance of the terms of this Agreement and Notice of Cancellation is served upon the Buyer pursuant to MSA 559.21, the termination eriod shall be thirty 30 days as permitted b P rtY ( ) P Y Y Subdivision 4 of MSA 559.21. IN WITNESS WHEREOF, Buyer and Seller have executed this Purchase Agreement on the date and year first above written. BUYER: HOWARD BOHANON HOMES, INC., a Minnesota corporation • By. Howard R. Bohanon Its: President SELLER: ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER a Minnesota municipal corporation By: Its President By: Its Executive Director • -4- STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 1996, by the of Howard Bohanon Homes, Inc., a Minnesota corporation. Notary Public STATE OF MINNESOTA ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of g Y , 1996, by Myrna Kragness and Michael J. McCauley, the President and • Executive Director, respectively, of the Economic Development Authority in and for the City of Brooklyn Center, a Minnesota municipal corporation, on behalf of the Authority. Notary Public i -5- • EXHIBIT A Legal Description Lot 3, Block 2, N and E Perkin's Addition to Minneapolis, according to the plat thereof on file and of record in the Office of the County Recorder in and for the County of Hennepin, State of Minnesota • A"Form No. 1519W Ywr.or Mhn Dhc+o.un aw«mnuN.+,wm Yuw.o.a. yp., o,,,,,. MINNESOTA WELL DISCLOSURE STATEMENT • Minnesota Law requires that before signing n agreement to sell or transfer real property 8 P PertY after June 30, 1990, the seller must disclose information in writing to the buyer about the status and location of all known 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 well, whether the well is in use, not in use or sealed. A seller who fails to disclose the existence of a well at the time of sale and knew of, or had reason to ]mow 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. 1. PROPERTY DESCRIPTION Street address: 5449 E7 Son Avenue North. Rnaik l Yn Center, HPnnPni n Cnr C®ay 2. LEGAL DESCRIPTION Lot 1. Block 2 N and F Perkin's Addition to MinneaDolis ammrrlinn -n 4-hi, plat therenf on file and of re—rd in "he Office of the _ County Recorder in and for the County of Hennepin state of Minnesota . 3. WELL DISCLOSURE STATEMENT (Check the appropriate boa.) • ® 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 1 ❑ ❑ ❑ 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. CERTIFICATIOhT BY SELLER I certify that the information provided above is accurate and complete to the best of my knowledge. EXHIBIT B • EXHIBIT C Septic System Disclosure Statement The Economic Development Authority in and for the City of Brooklyn Center has no knowledge of and is not aware of any septic system existing on the property located at 5449 Emerson Avenue North in Brooklyn Center and legally described in Exhibit A attached to this purchase agreement. • • • Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING PRESIDENT AND EXECUTIVE DIRECTOR TO EXECUTE PURCHASE AGREEMENT FOR THE SALE OF THE EDA - OWNED PROPERTY LOCATED AT 5449 EMERSON AVENUE NORTH IN BROOKLYN CENTER WHEREAS, EDA Resolution No. 96 -14 provided for a public hearing regarding the sale of the EDA -owned property located at 5449 Emerson Avenue North (the "Property") and legally described as Lot 3, Block 2, N and E Perkin's Addition to Minneapolis, according to the plat thereof on file and of record in the Office of the County Recorder in and for the County of Hennepin, State of Minnesota, to Howard Bohanon Homes, Inc. for $15,000; and WHEREAS, the Brooklyn Center EDA held the public hearing on the sale of the property at its May 13, 1996, EDA meeting; and WHEREAS, after conducting a public hearing the EDA considered the terms and conditions of the proposed sale of the property to Howard Bohanon Homes, Inc., as contained in the purchase agreement prepared for the sale of the property; and • WHEREAS, the Brooklyn Center EDA has determined it is in the best interest of the City of Brooklyn Center to sell the property to Howard Bohanon Homes, Inc., pursuant to the terms and conditions of the purchase agreement reviewed at their May 13, 1996, meeting. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center that its President and Executive Director are hereby authorized and directed to execute the purchase agreement and all other documents required for the sale of the EDA -owned property located at 5449 Emerson Avenue North to Howard Bohanon Homes, Inc. 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. 5P Memorandum To: Michael J. McCauley, City Manager From: Tom Bublitz, Community Development Specialist Date: May 8, 1996 Subject: Resolution Authorizing Acquisition of Certain Real Property Within the City of Brooklyn Center Located at 718 - 53rd Avenue North, and Authorizing Execution of Purchase Agreement and Payment for Acquisition Costs of Said Property At the April 29, 1996, Council work session, the City Council expressed an interest in focusing on acquisition of properties for redevelopment along 53rd Avenue North in Brooklyn Center. The single - family property located at 718 - 53rd Avenue North recently went on the market, and staff believes it provides an opportunity to make an acquisition from a willing seller on a voluntary basis. Since this is a voluntary acquisition, staff is recommending the EDA authorize acquisition of the property at the seller's asking price of $58,900. The current assessed value of the property is $51,600. The property is listed with a real estate broker and the broker commission will be paid out of the sale proceeds and will not be an additional cost of the acquisition. Staff is recommending the funding for this acquisition come from the EDA redevelopment budget. A purchase agreement has been prepared for this acquisition and has been approved and signed by the seller. A copy of the purchase agreement is attached to this memorandum. ■ • PURCHASE AGREEMENT I. PARTIES. This Purchase Agreement is made this 6th day of May, 1996 by and between MICHAEL C. PHILLIPS, a single person, owner of 718 - 53rd Avenue North, Brooklyn Center, MN 55430 ( "Seller ") and the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER, a public body corporate and politic under the laws of Minnesota, located at 6301 Shingle Creek Boulevard, Brooklyn Center, MN 55430 ( "Buyer "). 2. SUBJECT PROPERTY. Seller is the owner of that certain real estate (the "Property ") located at 718 53rd Avenue North, Brooklyn Center, Hennepin County, and legally described as follows: The East 50 feet of the West 100 feet of Lot 10, Block 3, BELLVUE ACRES, Hennepin County, Minnesota and The South half of the East 50 feet of the West 100 feet of Lot 9, Block 3, BELLVUE ACRES 3. OFFER /ACCEPTANCE. In consideration of the mutual agreements herein contained, Buyer offers and agrees to purchase g p and Seiler agrees to sell and hereby grants to Buyer the exclusive right to purchase the Property p y all improvements thereon together P g her with all appurtenances, including, but not limited to, garden bulbs, plants, shrubs, trees, and grass. 4. CONTINGENCY /ACCEPTANCE DEADLINE. This Purchase Agreement shall be presented to the Buyer's board of commissioners within 30 days of the date it is submitted to Buyer, fully executed by Seller herein. If the Buyer's board of commissioners does not approve this Purchase Agreement, all Earnest Money shall be refunded to the Buyer. 5. PERSONAL PROPERTY INCLUDED IN SALE. The following items of Personal property and fixtures owned by Seller and currently located on the Property are included in this sale: storm windows and inserts, storm doors, screens, awnings, window shades, blinds, curtain traverse - drapery rods, attached lighting fixtures 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, Seller shall also deliver a Bill of Sale for the above personal property. 6. PURCHASE PRICE AND TERMS: A. PURCHASE PRICE: The total Purchase Price for the real and personal property and fixtures included in this sale is Fifty -eight Thousand Nine Hundred and No /100ths Dollars ($58,900.00). CAE103996 98305 -60 1 B. TERMS: • (1) EARNEST MONEY. The sum of Five Hundred Dollars ($500.00) Earnest Money paid by the Buyer to the Seller, the receipt of which is hereby acknowl- edged. (2) BALANCE DUE SELLER. Buyer agrees to pay by check on the Closing Date any remaining Balance Due according to the terms of this Purchase Agreement. (3) ASSUMPTION OF EXISTING INDEBTEDNESS. The Buyer, in its discretion and in partial payment of the pur- chase price, may, to the extent assumable, assume or take title subject to any existing indebtedness encumbering the Property, in which case the cash to be paid at the time of closing shall be reduced by the then remaining indebtedness. (4) DEED /MARKETABLE TITLE. Subject to performance by Buyer, Seller agrees to execute and deliver a Warranty Deed conveying marketable title to the Property to Buyer, subject only to the following exceptions: a. Building and zoning laws, ordinances, state and federal regulations. b. Reservation of minerals or mineral rights to the State of Minnesota C. Utility and drainage easements. (5) DOCUMENTS TO BE DELIVERED AT CLOSING. In addition to the Warranty Deed required at paragraph 4B(4) above, Seller shall deliver to Buyer: a. Bill of Sale for personal property. b. Standard form Affidavit of Seller. C. Owner's Duplicate Certificate of Title, if applicable. d. Waiver of relocation benefits, as required by paragraph 18 of this Agreement. e. Such other documents as may be reasonably required by Buyer's title examiner or title insurance company. • f. Keys for all buildings on the Property and garage door openers, if any. CAE 103996 9:1305-60 2 7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. • A. Seller shall a at or prior to c P Y P losing all real estate taxes due and payable in 1995 and prior years. B. Seller shall pay at or prior to closing the balance of all special assessments P levied prior to closing.. C. Real estate taxes due and payable in 1996 shall be prorated as of the date of closing between Buyer and Seller. D. There are no special assessments pending as of the date of this Purchase Agreement. Buyer shall assume special assessments that become pending after the date of this Purchase Agreement, except that Seller shall at all times be responsible to pay special assessments, if any, for delinquent sewer or water bills, removal of diseased trees, snow removal, or other current services provided to the Property by the assessing authority while the Seller is in possession of the Property. 8. MARKETABILITY OF TITLE. The Seller shall, within five (5) days after approval of Buyer's board of commissioners, deliver to the Buyer an abstract of title or registered property abstract to the Property, certified to a current date. Buyer shall have twenty (20) days after receipt of the updated abstract to examine the same and to deliver written objections to title, if any, to Seller. Seller shall have sixty (60) days after receipt of written objections to cure title defects. Seller shall permit no addition- al encumbrances to be made upon the Property between the date of this Purchase Agreement and the Closing Date. 9. COSTS TO CLEAR TITLE. Seller shall bear any and all costs to clear title to the Property. In the event Seller fails to clear title to the extent herein required, the Buyer may clear title to the extent required and charge the cost of clearing to the Seller, including attorney's fees court costs condemnation Y awards, amounts aid for releases, waivers aivers or quit claims and all other costs actually incurred by Buyer, unless waived by Buyer. In the event that title to the Property cannot be made marketable by the Seller by the Closing Date, then, at the option of the Buyer, this Purchase Agreement shall be null and void and the Earnest Money shall be refunded to the Buyer. 10. CLOSING DATE. The closing of'the sale of the Property shall take place on or before June 5, 1996, or at such earlier or later date as may be mutually agreed upon by the Seller and Buyer. In no event shall the Closing Date be after July 5, 1996. The closing shall take place at the offices of Kennedy & Graven, Chartered, 470 Pillsbury Center, Minneapolis, MN 55402, or such other location as mutually agreed upon by the parties. CAS103996 9A305 -60 3 ' J r � \ yi 11. POSSESSION The Seller shall deliver possession of the • Property to SQ44er by 10:00 p.m. on the Closing Date in the same condition as the Property existed on the date of this Purchase Agreement, reasonable wear and tear excepted. 12. DAMAGES TO REAL PROPERTY. If the Property is substantially damaged prior to closing, this Purchase Agreement shall terminate and the earnest money shall be refunded to Buyer. If the Property is damaged materially but less than substantially prior to closing, Buyer may rescind this Purchase Agreement by notice to Seller within twenty -one (21) days after Seller notifies Buyer of such damage, during which 21 -day period Buyer may inspect the real property, and in the event of such rescission, the Earnest Money shall be refunded to Buyer. , 13. CONDITION OF PROPERTY. Seller warrants that all appliances, fixtures, heating and air conditioning equipment, wiring, and plumbing used and located on the property are in working order on the Closing Date. Seller ((HAS NOT) had a wet basement or water in the basement. Seller discloses that the roof ( (HAS NOT) leaked. Seller shall remove all debris and all personal property not included in this sale from the Property prior to transferring possession to Buyer; Seller shall hold the Buyer harmless for the disposal of personal property left in or at the Property by the Seller after the Closing Date. Seller has not received any notice from any governmental authority as to the existence of any dutch elm disease, oak wilt,,or other disease of any trees on the Property. Seller's warranties and representations contained in this paragraph 13 shall survive the closing of this transaction. Buyer shall have the right to have inspections of the Property conducted and to test for the presence of asbestos containing materials prior to Closing. Unless required by local ordinance or lending regulations, Seiler does not plan to have the Property inspected. Other than the representations made in this paragraph, the property is being sold "AS IS" with no express or implied representations or warranties by Seller as to physical conditions, quality of construction, workmanship, or fitness for any particular purpose. (This paragraph is not intended to waive or modify any provisions of Minn. Stat., Chapter 327A.) 14. DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM. Seller discloses that there (10�- (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, Seller discloses that the system (IS NOT) in use and Seller further discloses that the type of system is a 'r ,,; -� -'� system and the location is shown on map attached cis Exhibit B. to this Purchase Agreement. 15. CONDITION OF SUBSOIL AND GROUND WATER. Seller hereby warrants to Buyer that during the time the Seller has owned the Property 0103996 38305 -60 4 there have been no acts or occurrences upon the Property that have caused or could cause impurities in the subsoil or ground water of the Property or other adjacent properties. This warranty shall survive the closing of this transaction. Seller agrees to indemnify and hold harmless Buyer from any and all claims, causes of action, damages, losses, or costs (including reasonable attorney's fees) relating to impurities in the subsoil or groundwater of the Property or other adjacent properties which arise from or are caused by acts or occurrences upon the Property prior to Buyer taking possession of the same. This indemnity shall survive the closing of this transaction. 16. WELL DISCLOSURE. Buyer acknowledges receipt of a well disclosure statement which is attached to this Purchase Agr eement as Exhibit A. 17. SELLER'S WARRANTIES. Seller warrants that buildings, if any, are entirely within the boundary lines of the property. Seller warrants that there is a right of access to the real property from a public right -of -way. Seller warrants that there has been no labor or material furnished to the property for which payment has not been made. Seller warrants that there are no present viola - tions of any restrictions relating to the use or improvement of' the Property. These warranties shall survive the closing of this transaction. IS. WAIVER OF RELOCATION BENEFITS. Seller represents and acknowledges that Seller had placed the Property for sale on the public market prior to the Buyer's taking any action that would indicate Buyer's intent to acquire the Property. Seller agrees to voluntarily waive any relocation assistance, services, payments and benefits for which Seller would otherwise be eligible, and agrees to execute an instrument to that effect and deliver the same to Buyer at Closing. This agreement to waive relocation benefits is made voluntarily and is not made under threat of acquisition by the Buyer. 19. AGENCY. DISCLOSURE. The- Seller is represented in this transaction by Judy Piche, a licensed real estate agent under the laws of Minnesota. Seller represents and warrants that Seller will pay the broker's commission due in connection with the transaction contemplated by this Purchase Agreement. Buyer represents and warrants to Seller that there is no broker involved in this transaction to whom Buyer has agreed to pay a broker commission. 20. NO MERGER representations G R OF REPRESENTATIONS, WARRANTIES. All and warranties contained in this Purchase Agreement shall not be merged into any instruments or conveyance delivered at closing, and the parties shall be bound accordingly. 21. ENTIRE AGREEMENT; AMENDMENTS. This Purchase Agreement constitutes the entire agreement between the parties, and no other agreement prior to this Purchase Agreement or contemporaneous CAS103996 BIUC5 -60 5 herewith shall be effective except as expressly set forth or • incorporated herein. Any purported amendment shall not be effective unless it shall be set forth in writing and executed by both parties or their respective successors or assigns. 22. BINDING EFFECT; ASSIGNMENT. This Purchase Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors and assigns. Buyer shall 1 not assign i n its rights fights and interest hereunder without notice to Seller, and Seller shall give notice to Buyer of assignment of its interests in the manner prescribed in paragraph 23. 23. NOTICE. Any notice, demand, request or other communication which may or shall 1 be given or served by the parties 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 re a'd P �. and addressed g prepaid r ssed as follows: a. If to Seller: Michael Phillips 718 - 53rd Avenue North Brooklyn Center, MN 55430 b. If to Buyer: Tom Sublitz Brooklyn Center EDA 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 24. SPECIFIC PERFORMANCE. This Purchase Agreement may be specifically enforced by the parties. This paragraph is not intended to create an exclusive remedy for breach of this agree- ment; the parties reserve all other remedies available at law or in equity. IN WITNESS WHEREOF, the parties have executed this agreement as of the date written above. SELLER Mi C. Phil'&ips r • CAH103996 9.305 -60 6 BUYER ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER By Its By Its CAS103996 BRt305 -60 7 AMENDMENT TO PURCHASE AGREEMENT This form approved by the Minnesota Association of "A Family Tradition Since 195.5 "'° REALTORS' Minnesota Association of REALTORS' disclaims any liability arising out of use or misuse of this form. 1. Date n Y1 C / C � 2. The undersigned parties ,�q �� �J / r V g pa es to a Purchase Agreement dated i_ f! k) / 19_ pertainin g to l .� 3. purchase and sale of the property at � U l�� 4. hereby mutually agree to amend said Purchase Agreement as follows: 5 . rn � 6. 7. _�'Ql.i Vtt^ s. u 9. •10. 11. 12. 13. 14. 15. 16 1 7. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 29. 29. All other terms and conditions of the Purchase Agreement to remain the same. • / ' .�. 1� 30 L � � le t�+o 31. (Dare) (t3uy -) - (oat.) ;sa.wn ;Cale) (Buyer 32 (car.) (s°"^q Ag-e) (care) 33- THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYERS AND SELLERS 34. ER 101 (11191) IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL WELL DISCLOSURE STATEMENT • • This form approved by the Minnesota Association of REALTORS', which disclaims any liability arising out of use or misuse of this form. - A Family Tradition Since 1955 1. Date 2. Page 1 of Pages: THE REQUIRED MAP IS 3. ATTACHED HERETO AND MADE A PART HEREOF i 4. Minnesota Salutes Sec. 1031.235 requires that before signing an agreement to sell or transfer real property, the Seller must 5. disclose information in writing to the Buyer about the status and location of all known wells on the property. This requirement 6. 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, 7. or a disclosure statement indicating the legal description and county, and a map showing the location of each well. In the 8. disclosure statement the Seller must indicate, for each well, whether the well is in use, not in use or sealed. 9. A Seller who fails to disclose the existence of a well at the time of sale and knew of, or had reason to know of, the existence 10. 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 11, from the Seller, if the action is commenced within six years after the date the Buyer closed the purchase of the real 12. property where the well is located. 13. Instructions for completion of this form are on the reverse side. 14. PROPERTY DESCRIPTION 15. Street address: - 713 S3 16. LEGAL DESCRIPTION cxy Ca y 17. 18. 19. 20. WELL DISCLOSURE STATEMENT -HE APP9CP4;AT E 40X.1 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.) 23. ❑ The Seller certifies that the following wells are located on the above described real property. 24. MN. Unique Well Year Of Well IN USE NOT IN SEALED 25. Well No. Depth Const. Type USE 26. Well ❑ ❑ ❑ 27. Well ❑ ❑ ❑ 28. Well ❑ ❑ ❑ 29. SEALED WELL INFORMATION 30. For each well designated as sealed above, complete this section. 31. When was the well sealed? 32. Who sealed the well? 33. Was a Sealed Well Report filed with the Minnesota Department of Health? Yes_ No - 34, MAP 35. Complete the attached MAP showing the location of each well on the real property. 36 CERTIFICATION BY SELLER 37. I certify that the information provided above is accurate and complete to the best of my knowledge. l .3464! o:..esgra:ec �acrasan;anveP"' - ;�a:al ',3aar ,, ,-, 95 :'itaP -aC r95antacr +a, Coral 39. BUYER'S ACKNOWLEDGEMENT 40. lauYar) ;Carat .;3uYer1 ;0ate1 41. MN - WOS (7/94) ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER ER 125 (7194) • Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING ACQUISITION OF CERTAIN REAL PROPERTY WITHIN THE CITY OF BROOKLYN CENTER LOCATED AT 718 - 53RD AVENUE NORTH, AND AUTHORIZING EXECUTION OF PURCHASE AGREEMENT AND PAYMENT FOR ACQUISITION COSTS OF SAID PROPERTY WHEREAS, the Economic Development Authority in and for the City of Brooklyn Center (EDA) is authorized, pursuant to Minnesota Statutes, Section 469.012, Subd. 1(7), within its area of operation, and without the adoption of an urban renewal plan, to acquire real property and to demolish or remove the buildings and improvements thereon; and WHEREAS, the owner of the property located at 718 - 53rd Avenue North in the City of Brooklyn Center, legally described as: The East 50 feet of the West 100 feet of Lot 10, Block 3, BELLVUE ACRES, Hennepin County, Minnesota, and The South half of the East 50 feet of the west 100 feet of Lot 9, Block 3, BELLVUE ACRES (the "property"), has listed the property for sale with a licensed real estate agent; and WHEREAS, the building located on the property is substandard and obsolescent within the meaning of Minnesota Statutes Section 469.012; and WHEREAS, the sale price of the property is $58,900; and WHEREAS, the owner of the property has agreed to sell the property to the EDA for the sale price of $58,900 on a voluntary basis. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center as follows: 1. The EDA hereby finds and determines that the property is substandard and obsolete within the meaning of Minnesota Statutes, Section 469.012. 2. The terms of the purchase agreement for acquisition of 718 - 53rd Avenue North in Brooklyn Center are hereby approved and the President and Executive Director of the Brooklyn Center Economic Development Authority are hereby authorized to execute the purchase agreement on behalf of the Brooklyn Center Economic Development Authority. 3. The Brooklyn Center Economic Development Authority hereby authorizes EDA RESOLUTION NO. payment of $58,900 for the acquisition of 718 - 53rd Avenue North in Brooklyn Center to be paid to the owner on the day of closing for the property as per the terms and conditions of the purchase agreement. 4. All costs associated with the acquisition of 718 - 53rd Avenue North shall be accounted for in the EDA redevelopment budget. 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. •