HomeMy WebLinkAbout1995 10-23 EDAP Regular Session EDA AGENDA
CITY OF BROOKLYN CENTER
OCTOBER 23, 1995
(following adjournment of City Council meeting)
I. Call to Order
2. Roll Call ,b a �
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 aA 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.
I. October 10, 1995 - Regular Session
4. Commission Consideration Items
a. Public Hearing Regarding the Sale of the Single - Family Property Located at
Q 8 Prn 6601 Bryant Avenue North for Redevelopment
I `7. Zesolution Authorizing President and Executive Director to Execute
Purchase Agreement and Contract for Deed for the Sale of the EDA- ' n ,,�
Owned P roper L cated at 6601 Bryant Avenue North
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5. Adjournment
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Council Meeting Date October 23. 1995
31 City of Brooklyn Center Agenda Item Number
Request For Council Consideration
• Item Description:
EDA Minutes - October 10, 1995 - Regular Session
Department Approval:
,�
G. Brad Hof an, Director of C um y evelopment
Manager's Review /Recommendation: Z
No comments to supplement this report Comments below /attached
Recommended City Council Action:
o Summary Explanation: (supporting documentation attached Yes )
October 10, 1995 - Regular Session
Barb Kalligher and Kristen Mann were absent from the meeting and the minutes will reflect their
abstention from the vote on these minutes.
•
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
OCTOBER 10, 1995
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 7:48 p.m.
ROLL CALL
President Myrna Kragness, Commissioners Kathleen Carmody and Debra Hilstrom. Also
present were Director of Public Services Diane Spector, Interim City Manager Cam Andre,
City Attorney Charlie LeFevere, Director of Community Development Brad Hoffman,
Community Development Specialist Tom Bublitz, and Commission Secretary Connie
Beckman.
Councilmember Barb Kalligher was absent and unexcused. Councilmember Kristen Mann
was absent and excused.
APPROVAL OF AGENDA AND CONSENT AGENDA
A motion by Commissioner Carmody and seconded by Commissioner Hilstrom to approve
the October 10, 1195, agenda and consent agenda passed unanimously.
APPROVAL OF MINUTES
A motion by Commissioner Carmody and seconded by Commissioner Hilstrom to approve
the following minutes passed unanimously: September 11, 1995 - Regular Session; September
13, 1995 - Special Session; September 25, 1995 - Regular Session.
RESOLUTIONS
RESOLUTION NO. 95 -29
Member Kathleen Carmody introduced the following resolution and moved its adoption:
RESOLUTION ELECTING OFFICERS FOR THE ECONOIVIIC DEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER
The motion for the adoption of the foregoing resolution was duly seconded by member Debra
Hilstrom, and passed unanimously.
10/10/95 - 1 -
RESOLUTION NO. 95 -30
Member Kathleen Carmody introduced the following resolution and moved its adoption:
0
RESOLUTION AUTHORIZING EXECUTION OF A TAX INCREMENT PLEDGE
AGREEMENT WITH THE CITY OF BROOKLYN CENTER RELATING TO $4,560,000
TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1995A
The motion for the adoption of the foregoing resolution was duly seconded b member Debra
P foregoing Y
Hilstrom, and passed unanimously.
COMMISSION CONSIDERATION ITEMS
RESOLUTION NO. 95 -31
Member Debra Hilstrom introduced the following resolution and moved its adoption:
RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR RESIDENTIAL
STRUCTURE REMOVAL AT THE EDA- OWNED PROPERTY AT 6637 HUMBOLDT
AVENUE NORTH
i
The motion for the adoption of the foregoing resolution was duly seconded by member
Kathleen Carmody, and passed unanimously.
ADJOURNMENT
A motion by Commissioner Hilstrom and seconded by Commissioner Carmody to adjourn
the meeting at 7:49 p.m. passed unanimously.
President
Recorded and transcribed by:
Connie Beckman
TimeSaver Off Site Secretarial.
I
10/10/95
_7)_
I
Council Meeting Date 10/23/95
3 City of Brooklyn Center Agenda Item Numbe
Request For Council Consideration
• Item Description:
Public Hearing Regarding the Sale of the Single - Family Property Located at 6601 Bryant Avenue North
for Redevelopment
and
Resolution Authorizing President and Executive Director to Execute Purchase Agreement and Contract
for Deed for the Sale of the EDA -Owned Property Located at 6601 Bryant Avenue North
Department Approval:
Tom Bublitz, Community Development Specialist
Manager's Review /Recommendation:
No comments to supplement this report Comments below /attached
Recommendation:
• Upon completion of the public hearing, staff recommends approval of the Resolution Authorizing
President and Executive Director to Execute Purchase Agreement and Contract for Deed for the Sale
of the EDA -Owned Property Located at 6601 Bryant Avenue North.
summary Explanation: (supporting documentation attached Yes
At its September 25, 1995 meeting, the EDA reviewed a proposal to purchase and construct a new
single - family home on the EDA -owned property located at 6601 Bryant Avenue North from Howard
Bohanon, President of Howard Bohanon Homes, Inc. The EDA accepted Mr. Bohanon's offer to
purchase the property and build a single - family home based on home designs reviewed at the September
25th meeting. The sale price of the lot is $22,000.
Pursuant to state law, at the September 25th meeting, the EDA approved EDA Resolution No. 95 -28
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 this evening's meeting. Upon completion of the public hearing, the
EDA will be requested to consider the approval of the purchase agreement and contract for deed for
the sale of the property.
• Staff has prepared a purchase agreement and contract for deed for the sale of the property to Howard
Bohanon Homes, Inc. The main features of the documents are as follows:
1. The contract for deed is drafted to provide assurances to the EDA that the home proposed
for the lot will be built in accordance with the plans and specifications submitted and also
that the EDA is protected with appropriate insurance protection during the course of
Request For Council Consideration Page 2
construction.
• 2. Final payment to the EDA for the lot would be made when the home is completed and a
certificate of occupancy is issued, but no later than the date specified in the contract for
deed.
Since this project was initially purchased with Community Development Block Grant (CDBG) funds,
the sale proceeds from the lot must be paid back to the Department of Housing and Urban Development
(HUD) for redeposit in the city's CDBG scattered site account. The EDA must repay the fair market
value of the lot even if it is sold for less than fair market value. In a memorandum from the City
Assessor regarding the value of the lot (attached), the sale price of $22,000 has been established as the
fair market value for the property. Given the time period the lot was on the market for $24,000 with
no sales, the City Assessor believes the $22,000 figure represents a reasonable fair market value for
the ro
P Perty
A representative of the buyer will be at the meeting Monday evening and staff will be prepared to
respond to any questions the council may have regarding the purchase agreement or contract for deed.
•
{ =z
D
PURCHASE AGREEMENT
• THIS AGREEMENT, made de and entered into this day of , 1995, by
and between the ECONOMIC DEVELOPMENT 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.
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 contract for deed 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 6601 Bryant 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 Twenty-Two Thousand Dollars ($22,000) 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) $21,500 by Contract for Deed in the form attached.
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 1995 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 1996 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 October 31,
1995. 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 .
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
With copy to: Corrine Thomson
Kennedy & Graven, Chartered
470 Pillsbury Center
Minneapolis, MN 55402
2
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 Merizer The terms, covenants, and conditions of this
Purchase Agreement, and particularly paragraph 9 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 Closin The following documents shall be
delivered at closing:
By Seller:
(1) A Contract for Deed in the form attached hereto.
(..) A Seller's Affidavit, in standard form.
(3) Well Disclosure Certificate.
By Buyer:
(1) A Certificate of Real Estate Value.
11. Design Ap roval Prior to construction of any improvements on the Property,
Buyer shall submit to Seller a design proposal for such improvements for approval by the Seller.
Seller shall approve construction of such improvements only upon a determination, in the
absolute and sole discretion f
o Seller, that the ublic interests would be served b construction
P y
of such improvements. No improvements shall be constructed on the Property which are not
P
consistent with such approved design proposal.
12. Well Disclosure Statement Exhibit B attached hereto is a completed form of a
Minnesota Well Disclosure 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.
P rtY
15. Default 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 an of the agreements herein, y b n, 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 period shall be thirty (30) days as permitted by Subdivision 4 of
MSA 559.21.
3
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
Howard Bohanon
SELLER:
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF BROOKLYN CENTER
a Minnesota municipal corporation
By:
Its President
• By:
Its Executive Director
STATE OF MINNESOTA )
ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 1995, by the of
Howard Bohanon Homes, Inc., a Minnesota corporation.
Notary Public
•
4
STATE OF MINNESOTA )
• ) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
1995, by Myrna Kragness and Cam Andre, 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 said Authority.
Notary Public
•
•
5
EXHIBIT A
Legal Description
That part of Lot 43 lying easterly of a line running from a point
in the north line thereof, distance 163.3 feet west from the
northeast corner thereof, to a point in the south line thereof,
distance 163.28 feet west from the southeast corner thereof except
street, Lot 43, Auditor's Subdivision 310 to Hennepin County.
6
A#" Form No. 1519-W
MIN'INTESOTA WELL DISCLOSURE STATEMENT
• Minnesota Law requires that before signing an agreement to sell or transfer real property after
June 30, 2990, 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 Iocation
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 disc-lose the existence 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
aix 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: —5An1 gr r R ookivn ( >nrer HeZneuin
CUY C-
2. LEGAL DESCRIPTION
That part of Lot 43 lvine easterly of aline running from a point in the north line
thereof, distance 163.3 feet west from the northeast corner thereof, to a'point in
- the _south line thereof 11 —nce 163.28 west from the southeast corner thereof exc
street, Lot 43, auditor's Subdivision 310 to Hennepin County.
3. WELL DISCLOSURE STATEMENT
(Check the appropriate box.)
C The seller certifies that the seLTer does not know of any wells on the above described real
• properrty. •
If this option is checked, then skip to the last line and sign and date this statement.
C The seller certii:es that the following wells are located on the above described rest property,
M.N. unique Well Year of Well LN USE NOT IN =.ALZD
Weil No. Depth Const. Type USE
Well 77+ r nWr� siRaTv_F,mi1. [ l.'1 �t
Well 2 residential y C C L
WeI13 C C C
4. SEALED WELL INFORtiL•kTION
For each well designated as sealed above, complete this section.
When was the well sealed? 6 -30 -93
Who sealed the well? Lens Welt 5 pure Sen
Was a Sealed Well Report Eled with the .Minnesota Departm —ent of Health? Yes x No
5. MAP
Complete the attached map showing the Iocation of each well on the real property.
6. CERTIFICATION BY SELLER
I certi - that the infor...ation provided above is accurate and complete to the best of my
lmowledge.
• = c..c,.w D.�
EXHIBIT B
INLAP
Please use the space below to sketch the real property being sold and the location of EACH well
on the property. Include distances from fixed reference points such as streets and buildings
•
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USE ADDITIONAL SPACE ON BACK IF N=ED
EXHMIT C
Septic System Disclosure Statement
The Economic Development Authority n and for the City tY of
Brooklyn Center has n
y o knowledge of and is not aware of any
septic system existing on the property located at 6601 Bryant
Avenue North in Brooklyn Center and legally described in
Exhibit A attached to this purchase agreement.
s
CONTRACT FOR DEED Form No. 56 -11 yin ,.•,,, „ n r , n r „ ,,,, n itl, ., n rK, M,11- n . (% a .
t'urponuwn - I' M—ft,v Seiler
No delinquent taxes and transfer entered;
Certificate of Real Estate Value
( )filed ( )not required
. 19— .
County Auditor
By
Deputy
(reserved for recording data)
MORTGAGE REGISTRY TAY DUE HEREON:
(reserved for mortgage registry tax payment data)
Date: 19—
THIS CONTRACT FOR DEED is made on the above date by the Ec onomic Deve lnnmpn t.
Authority in and for the public body the State of
' f'_• nr �* ^^klyzri ntes a cor rate and col i G eer the Iaws of Minnesota
Seiler, and - Howard Bohanon Homes Inc a Minnesota corporation
Purchaser (whether one or more).
Seller and Purchaser agree to the following terms:
1. PROPERTY DESCRIPTION. Seiler hereby sells, and Purchaser hereby buys, real property in
® Hennepin County, Minnesota, described as follows:
That part of Lot 43 lying easterly of a line running
from a point in the north line thereof, distance 163.3
feet west from the northeast corner thereof, to a
point in the south line thereof, distance 163.28 west
from the southeast corner thereof except street, Lot
43, Auditor's Subdivision 310 to Hennepin County.
together with all hereditaments and appurtenances belonging thereto (the Property).
- �=+ �J.. �:. ��' rT�II�II '�' rr its -grrtratt�-st_r�ec*-oni�No-t�e
fIIii'OU itig' csceptivrrs
�a7� s,^' estriCionS- aeel' araciona- 3nri- Case .^.rezYts -e3twccv% - zF -tea°+
-t) Buit . 119, mnin and bubdivibUU hLW5 and te g u latioTTS;
- id) The .___- of 37rC1" 2nStclTlIISL1Tt' 3' Cf' 3' pCC ��zfc� smeres -vrkic3rsre�aveble�±r
��r�rasea•- p�rreae�s�e�ars�eet��- ef- �k i��� ae ���
- t��e- €el}e�g- li�r�a�e�eet'aaees:
• 3. DELIVERY OF DEED AND EVIDENCE OF TITLE. Upon Purchaser's prompt and full performance
of this contract, Seller shall:
(a) Execute, acknowiedge and deliver to Purchaser a ouit C1a;m Deed, in
recordable form, conveying marketable title to the Property to Purchaser, subject only to the
ftriltrwiag-e ereIItivas
= Fl�ese- aa�c3e}�sioW afer }i1- ag�a>�l -=e; aid {dam;s- satxas:;
-- I.LOASr6iSG3iAaLZACAB...,ZGyL A Qw==r. icby 2 .y,rr•n mar -1�.�c rroa tot3 ciiffar
rmm L-a at us contra -anri
; and
(b) Deliver to Purchaser the abstract of title to the Property or, it' the title is registered, the owner's
duplicate certificate of title.
t. PURCHASE PRICE. Purchaser shall pay to Seller, at 6301 Shingle Creek Parkway
Brooklyn C enter, Minnesota , the sum of
Twenty -Two Thousand Dollars and No 100------- - - - - -- ( ??,Ono )
as and for the purchase price for the Property, payable as follows:
(a) Five Hundred Dollars ($500) earnest money, which has heretofore
been received; and
(b) Twenty -cne Thousand Five Hundred Dollars ($21,500) to be paid by cash,
certified or cashier's check, or wire transfer of guaranteed funds to
Seller's bank account on the date of closing. The date of closing shall
be a date within 30 days following the completion of the improvements
required to be constructed by paragraph _2 _ of the Addendum to this
contract and the issuance of a certificate of occupancy for said
improvements, but in no case shall the closing be later than
June 30. 1096
o. PREPAYMENT, unless otherwise provided in this contract, Purchaser shall have the right to fully or
partially prepay this contract at any time without penalty. Any partial prepayment shall be applied
first to payment of amounts then due under this contract, including unpaid accrued interest, and the
balance shall be applied to the principal installments to be paid in the inverse order of their maturity.
Partial prepayment shall not postpone the due date of the installments to be paid pursuant to this
contract or change the amount of such installments.
6. REAL. ESTATE TAXES AND ASSESSMENTS. Purchaser shall pay, before penalty accrues, all real
estate taxes and installments of special assessments assessed against the Property which are due and
payable in the year 19 —and in all subsequent years. Real estate taxes and installments of special
assessments which are due and payable in the year in which this contract is dated shall be paid as
follows: Property is exempt from real estate taxes payable in the year 1995.
Seller shall nay all special assessments assessed against the property which are
payable in the year 1995.
Seller warrants that the real estate taxes and installments of special assessments which were due and
pavable in the years preceding the year in which this contract is dated are paid in full.
7. PROPERTY INSURANCE.
(a) INSURED RISKS AND AMOUNT. Purchaser shall keep all buildings, improvements and
fixtures now or later located on or a pan of the Property insured against loss by fire, extended
coverage perilg, vandalism, malicious mischief and. if applicable, steam boiler explosion for at
least the amount of 522.000 plus the cost of any construction financing
If any of the buildings, improvements or fixtures are located in a federally designated flood prone
area, and if flood insurance is available for that area, Purchaser shall procure and maintain flood
insurance in amounts reasonably satisfactory to Seller.ccmmonly called "all risk perils"
(b) OTHER TERMS. The insurance policy shall contain a loss payable clause; n favorof Seller which
provides that Seller's right to recover under the insurance shall not be impaired by any acts or
omissions of Purchaser or Seller, and that Seller shall otherwise be afforded all rights and
Privileges customarily provided a mortgagee under the so- called standard mortgage clause.
(c) NOTICE OF DAMAGE. in the event of damage to the Property by fire or other casualty,
• Purchaser shall promptly give notice of such damage to Seller and the insurance company.
8. DAMAGE TO THE PROPERTY.
(a) APPLICATION OF INSURANCE PROCEEDS. If the Property is damaged by fire or other
casualty, the insurance proceeds paid on account of such damage shall be applied to payment of
the amounts payable by Purchaser under this contract, even if such amounts are not then due to be
Paid, unless Purchaser makes a permitted election described in the next paragraph. Such amounts
shall be first applied to unpaid accrued interest and next to the installments to be paid as provided
in this contract in the inverse order of their maturity. Such payment shall not postpone the due
date of the installments to be paid pursuant to this contract or change the amount of such
installments. The balance of insurance proceeds, if any, shall be the property of Purchaser.
o� i' fiLti:l�ctt r i. iIu iv it l iLi1. It Purchaser is not in deiauit under this contract, or
after curing anv such default. and if the mortgagees in any prior mortgages and sellers in anv
prior contracts for deed do not require otherwise, Purchaser may elect to have that portion of such
insurance proceeds necessary to repair, replace or restore the damaged Property (the repair work)
deposited in escrow with a bank or title insurance company qualified to do business in the State of
Minnesota, or such other party as may be mutually agreeable to Seller and Purchaser. The election
may only be made by written notice to Seller within sixty days after the damage occurs. Also, the
election will only be permitted if the plans and specifications and contracts for the repair work are
approved by Seller, which approval Seller shall not unreasonably withhold or delay. If such a
permitted eiection is made by Purchaser, Seller and Purchaser shall jointly deposit, when paid,
such insurance proceeds into such escrow. If such insurance proceeds are insufficient for the
repair work, Purchaser shall, before the commencement of the repair work, deposit into such
escrow sufficient additional money to insure the full payment for the repair work. Even if the
insurance proceeds are unavailable or are insuffficient to pay the cost of the repair work,
Purchaser shall at all times be responsible to pay the full cost of the repair work. All escrowed
funds shall be disbursed by the escrowee in accordance with generally accepted sound
construction disbursement procedures. The costs incurred or to be incurred on account of such
escrow shall be deposited by Purchaser into such escrow before the commencement of the repair
work. Purchaser shall complete the repair work as soon as reasonably possible and in a good and
workmanlike manner, and in anv event the repair work shall be completed by Purchaser within
one year after the damage occurs. If, following the completion of and payment for the repair work,
there remain any undisbursed escrow funds, such funds shall be applied to payment of the
amounts payable by Purchaser under this contract in accordance with paragraph 8 (a) above.
9. INJURY OR DAMAGE OCCURRING ON THE PROPERTY.
(a) LIABILITY. Seller shall be free from liability and claims for damages by reason of injuries
occurring on or after the date of this contract to any person or persons or property whileon or about
the Property. Purchaser shall defend and indemnify Seller from all liability, loss, costs and
obligations, includin g reasonable attorneys' fees, on account of or arising out of any such injuries.
However. Purchaser shall have no liability or obligation to Seller for such injuries which are
caused by the negligence or intentional wrongful acts or omissions of Seller.
(b) LIABILITY INSURANCE. Purchaser shall, at Purchaser's own expense, procure and maintain
liability insurance against claims for bodily injury, death and property damage oceuring on or
about the Property in amounts reasonably satisfactory to Seller and naming Seller as an
additional insured.
10. INSURANCE, GENERALLY. The insurance which Purchaser is required to procure and maintain
pursuant to paragraphs 7 and 9 of this contract shall be issued by an insurance company or companies
licensed to do business in the State of Minnesota and acceptable to Seller. The insurance shall be
maintained by Purchaser at all times while any. amount remains unpaid under this contract. The
insurance policies shall provide for not less than ".art' day Ii4R;n notice to Seller before cancellation,
non - renewal, termination or change in coverage, and Purchaser shall deliver to Seller a duplicate
original or certificate of such insurance policy or policies.
11. CONDEMNATION. If all or any part of the Property is taken in condemnation proceedings instituted
under power of eminent domain or is conveyed in lieu thereof under threat of condemnation the money
paid pursuant to such condemnation or conveyance in lieu thereof shall be applied to payment of the
amounts ayable b Purchaser p . P c. aser under thi • contract, v
Y s co c , even if such amounts are not then due to be P a'
td.
Such amounts shall be ap first to
Pp unpaid accrued interest and next to the installments to be pai
P p d
as provided in this contract in the inverse order of their maturity. Such paymentshall not postpone the
due date of the installments to be paid pursuant to this contract or change the amount of such
installments. The balance, if any, shall be the property of Purchaser.
12. WASTE, REPAIR AND LIENS. Purchaser shall not remove or demolish any buildings, im-
provements or fixtures now or later located on or a part of the Property, nor shall Purchasercommit or
allow waste of the Property. Purchaser shall maintain the Property in good condition and repair.
Purchaser shall not create or permit to accrue liens or adverse claims against the Property which
constitute a lien or claim against Seller's interest in the Property. Purchaser shall pay to Seller all
amounts, costs and expenses, including reasonable attorneys' fees, incurred by Seller to remove any
such liens or adverse claims.
1S. DEED AND MORTGAGE REGISTRY TAXES. Seller shall. upon Purchaser's full performance of this
contract, pay the deed tax due upon the recording or filing of the deed to be delivered by Seller to
Purchaser. The mortgage registry tax due upon the recording or filing of this contract shall be paid by
the party who records or files this contract; however, this provision shall not impair the right of Seller
to collect from Purchaser the amount of such tax actually paid by Seller as provided in the applicable
law governing efault and service of notice f ter
g e o urination of this contract.
1.1. NOTI r
CE OF ASSIGNMENT. Ifeithe. Seller or Purchaser ass igns t ei i
h r nteresttn the Property, a copy
of such assignment shall promptly be furnished to the non - assigning party.
15. PROTECTION OF INTERESTS. If Purchaser fails to pav any sum of money required under the terms
of this contract or fails to perform any of Purchaser's obligations as set forth in this contract, Seller
may, at Seller's option, pay the same or cause the same to be performed, or both, and the amounts so
paid by Seller and the cost of such performance shall be payable at once, with interest at the rate stated
in paragraph -1 of this contract, as an additional amount due Seiler under this contract.
If there now exists, or if Seller hereafter creates, suffers or permits to accrue, any mortgage, contract for
deed, lien or encumbrance against the Property which is not herein expressly assumed by Purchaser.
and provided Purchaser is not in default under this contract. Seller shall timely pay all amounts due
thereon, and if Seller fails to do so. Purchaser may, at Purchaser's option, pay any such delinquent
amounts and deduct the amounts paid from the installment(s) next coming due under this contract.
16. DEFAULT. The time of performance by Purchaser of the terms of this contract is an essential part of
this contract. Should Purchaser fail to timely perform any of the terms of this contract, Seller may, at
Seller's option, elect to declare this contract cancelled and terminated by notice to Purchaser in
accordance with applicable law. All right. title and interest acquired under this contract by Purchaser
shall then cease and terminate, and all improvements made upon the Property and all payments made
by Purchaser pursuant to this contract shall belong to Seller as liquidated damages for breach of this
contract. Neither the extension of the time for payment of any sum of money to be paid hereunder nor
any waiver by Seiler of Seller's rights to declare this contract forfeited by reason of any breach shall in
any manner affect Seller's right to cancel this contract because of defaults subsequently occurring, and
no extension of time shall be valid unless agreed to in writing. After service of notice of default and
failure to cure such default within the period allowed by law, Purchaser shall, upon demand, surrender
possession of the Property to Seiler, but Purchaser shall be entitled to possession of the Property until
the expiration of such period.
17. BINDING EFFECT. The terns of this contract shall run with the land and bind the _parties hereto and
their successors in interest.
111 Or COr1t�Crue C,._ "IC11
19. ASSESS,.MENTS BY OWNERS' ASSOCIATION. If the Property is subject to a recorded declaration
providing for assessments to be levied against the Property by any owners' association, which
assessments may become a :ten against the Property if not paid, then:
(a) Purchaser shall promptly pay, when due, all a :sessments imposed by the owners' association or
other governing body as required by the provisi of the declaration or other related documents;
and
• (b) So long as the owners' association maintains a master or blanket policy of insurance against fire,
extended coverage penis and such other hazards and in such amounts as are required by this
contract, then:
(i) Purchaser's obligation in this contract to maintain hazard insurance coverage on the
Property is satisfied; and
(ii) The provisions in paragraph b of this contract regarding application of insurance proceeds
shall be superseded by the provisions of the declaration or other related documents; and
(iii) In the event of a distribution of insurance proceeds in lieu of restoration or repair following an
insured casualty loss to the Property, any such proceeds payable to Purchaser are hereby
assigned and shall be paid to Seller for application to the sum secured by this contract, with
the excess, if any, paid to Purchaser.
20. ADDITIONAL TERMS:
(a) Well Disclosure Certificate. Exhibit A attached hereto is a completed form
Of a Minnesota Well Disclosure Certificate and is incorporated herein as if
fully set forth herein.
(b) Additional Terns. Additional terms as set forth in the attached Addendum.
SELLER PURCHASER(S)
ECONOMIC DEULOP.MENT AUIHORITy IN HaWD BOHANON HCMES, INC.
AND FOR THR M77 OF L;gcrKTyx C 7 a Minnpantn rnrnnrnHcn
By
Myrna Kragness By Howard R. Bchanon
Its President Tts President
By Cam Andre
Its Fxec ut i v T)i rar ,nr
State of Minnesota
rr. •
County of
The foregoing instrument was acknowledged before me this — day of ' 19 95 ,
b Howard R Bohanon and
the P aidant and of tjnwnrR Pnnannn Lktmac, Tnn_
a corooraticn under the laws of the State of Minnesota
on behalf of the corroration
NOTARIM n'TAMP oR 8F.A1.,OR OTHER 71TI.F. OR RANK1
SIGNATCRF. OF VOTARY PCRI.IC OR OTHER OFFICIAL
State of Minnesota
rr
County of uennepin
The foregoing instrument was acknowledged 'before me this — day of 1991 ,
by LMyrna Kr-Gness and (`am r ra the tN si d nt -.nrJ 7 ut- i via ni rc — of tho
Fcnnnmi r naval rt^rnant pl t', in and for tha C J t�P Brmkl = r' -n or , a nuhl i c .
n.., t -ir • * i
VOT.iRIAI. ?ASiP OR SF,AL.OR7THF.R T;TLF. OR RANK,
Sif.VATCRE OF NOTARY ?CAL;C' OR OTH F,R OFFICIAL Tax stalePeniS 1of `Ie' orooery oesUW^?11 !n rNs;nsiNntenl snould oe sent to
Hcward R. 3charon, President
THIS IVCTR('N1 F.VT `.v:\S I?R:1 FTF. f) RY \: \JI F.:U'1). \Itl1R F.S?! H rwarc Bonarcn Homes, Inc.
P.O. Box 486
• KF '�= & GRAVEN Anoka, NN 55303
470 Pillsbury Center
Minneapolis, %V 55402
FAILURE TO RECORD OR FILE THIS CONTRACT FOR DEED MAY GIVE OTHER PARTIFS
ADDENDUM TO CONTRACT FOR DEED
THIS ADDENDUM is made to that certain Contract for Deed of even date herewith
by and
between the Economic Development Authority in and for the City of Brooklyn Center
(Seller) and Howard Bohanon Homes, Inc., a Minnesota corporation (Purchaser).
1. The terms of this Addendum are in addition to and not in substitution of any
terms in the attached Contract for Deed.
2. Purchaser agrees to construct on the Property a detached single- family
dwelling structure (the "Improvements ") according to the plans and specifications dated
which have been approved by the Seller and are on file in Sellers'
offices (the "Approved Plans ").
3. Purchaser agrees to commence construction of the Improvements no later than
and to complete construction of the Improvements no later than
4. 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.
5. At all times during the construction of the Improvements, Purchaser shall keep
i in force a policy or policies of insurance providing the following coverage, which must name
the Seller as an additional insured:
CoveraLye Limits
Property:
Builder's Risk, Completed Value Form Value of Dwelling
Coverage to Include:
Perils of "All Risk"
Worker's Compensation:
Coverage A, Indemnity Statutory
Coverage B, Employer's Liability 100,000
Commercial General Liability:
Bodily Injury and Property Damage
Combined Single Limits
Per Occurrence 1,000,000
Aggregate 1,000,000
Coverage to Include:
Operations
Products /Completed Operations
Personal Injury
Contractual Liability
Independent Contractors' Contingent Liability
Automobile
Bodily Injury and Property Damage
Combined Single Limits
Per Occurrence 1,000,000
Coverage to Include:
All Owned, Non -Owned and Hired Automobiles
Purchaser agrees to provide Seller with a certificate of insurance evidencing said insurance
policies before Purchaser requests a building permit for the Improvements. Purchaser
specifically agrees that Seller may request that the City of Brooklyn Center withhold issuance
of a building permit until Seller acknowledges receipt of the certificate of insurance. Purchaser
waives and releases all claims against Seller or the City of Brooklyn Center for withholding a
building permit pursuant to this paragraph.
SELLER:
S Economic Development Authority in
and for the City of Brooklyn Center
By:
Myrna Kragness
Its: President
By:
Cam Andre
Its: Executive Director
BUYER:
Howard Bohanan Homes, Inc.,
a Minnesota corporation
Howard R. Bohanon
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of ,
1995, by Howard R. Bohanon, President 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 ,
1995, by Myrna Kragness and Cam Andre, 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 said Authority.
Notary Public
-3-
MINNESOTA DEPARTMENT OF HEALTH
WELL DISCLOSURE CERTIFICATE
PLEASE TYPE OR PRINT ALL INFORMATION
-arson filing deed must attach ,$10 foe payable to county recorder, _
A. PROPERTY DESCRIPTION
Attach a legal description of property If the property does not have a lot number, block number,
and addition name. ,
COUNTY LOT NUMBER BLOCK NUMBER ADDITION NAME
Hennepin
STREET ADRESS (see attached)
6601 Bryant Avenue North
CITY STATE ZIP CODE
Brooklyn Center MN 55430
B. PROPERTY BUYER MAILING ADDRESS AFTER CLOSING
FIRST NAME MIDDLE INITIAL
LAST NAME
Howard R. Bohanon
COMPANY NAME (IF APPLICABLE)
Howard Bohanon Homes, Inc.
ADDRESS
P.O. Box 486
ADDRESS
CITY STATE
ZIP CODE TELEPHONE NUMBER
Anoka MN 55303 ( 612 427 -0041
C. CERTIFICATION BY SELLER
I cer* that the Information provided on this Certificate is accurate and complete to the best of my knowledge.
Signature of Seller or Designated Representative of Seller
. Date .
D. CERTIFICATION BY BUYER
The buyer or person authorfred to act on beW of the buyer, must sign a Well Disclosure Certificate for all deeds given In fulfinment of
a cor►h= for deed If Mere.Is a well on the property.
In the absence of a seller's signatura, the buyer, or . person authorized orrzed
to act on
bah
do Hato elf of the b
91 9 nature is required aY the buyer d the sailer has signed abmre, buyer may sign this well Certiric8iz.
Based on disclosure information provided tome by the seller or other available Information, I Certify that the Information on this certlflcate
rate and complete to the best of my knowledge.
Signature of Buyer or Designated Representative of Buyer pate
(OVER)
MINNESOTA DEPARTMENT OF HEALTH
FP WELL INFORMATION
PLEASE TYPE OR PRINT ALL INFORMATION
Fill out a separate well information page if more than three wells are located on the property. _
t1L LOCATION1
COUNTY QUARTER SECTION NUMBER TOWNSHIP NUMBER RANGE NUMBER
Herm.Qpla— 16 Vff-M STATUS 119 21
YEAfi WELL WAS SEALED (IF IUIBWta)
WELL IS: QIN USE (1) Q NOT IN USE (2) Q SEALED BY LICENSED WELL CONTRACTOR (3)
1993
WELL LOCATION #2
COUNTY QUARTER SECTION NUMBER TOWNSHIP NUMBER RANGE NUMBER
WELL STATUS
YEAR WELL WAS SEALED (IF KNOWN)
WELL IS: QIN USE (1) ❑ NOT IN USE (2) ❑ SEALED BY LICENSED WELL CONTRACTOR (3)
WELL LOCATION #3
COUNTY I QUARTER SECTION NUMBER TOWNSHIP NUMBER I RANGE NUMBER
WELL STATUS
YEaIi WELL was SEALED (IF KNOWN) -
IS: QIN USE (1) E I NOT IN USE (2) 0 SEALED BY LICENSED WELL CONTRACTOR 3
SKETCH MAP - Sketch the location of the wen(s) and Include astimatad distances from roads, asbvets, and buildings.
IF L40;tE THAN ONE WELL ON PROPERTY, USE THE WELL LOCATION NUMBER ABOVE TO IDENTIFY EACH WELL
V
ti
-
ti
O n
M1
•
Information provided on this form Is Classified as public Information under Minnesota Statutes. Chapter 13.
M./ WR"/0MQWVWCL0$U -FRM OIM R
Commissioner introduced the following resolution
• and moved its adoption:
EDA RESOLUTION NO.
RESOLUTION AUTHORIZING PRESIDENT AND EXECUTIVE DIRECTOR
TO EXECUTE PURCHASE AGREEMENT AND CONTRACT FOR DEED
FOR THE SALE OF THE EDA -OWNED PROPERTY LOCATED AT 6601
BRYANT AVENUE NORTH
WHEREAS, EDA Resolution No. 95 -28 provided for a public hearing regarding
the sale of the EDA -owned property located at 6601 Bryant Avenue North (the "Property ") to
Howard Bohanon Homes, Inc., for $22,000; and
WHEREAS, the Brooklyn Center EDA held the public hearing on the sale of the
property at its October 23, 1995 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 and contract for deed prepared for the sale of the property; and
WHEREAS, the 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 and contract for deed reviewed at their October 23, 1995
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, contract for deed and all
other documents required for the sale of the EDA -owned property located at 6601 Bryant
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.
MEMORANDUM
• Date: October 23, 1995
To: Honorable Mayor and City Council
From: Tom Bublitz, Community Development Specialist /
Subject: Sale of 6601 Bryant Avenue Property
In preparation for the closing on the 6601 Bryant Avenue North property, staff discovered
title to the property is in the name of the City of Brooklyn Center rather than the Brooklyn
Center EDA. As a result, we need to formally convey the property from the City Council to
the EDA.
Since the City has only nominal title to the property, the resolution before the City Council
would convey the property from the City to the EDA.
Also, the buyer, Howard Bohanon Homes, Inc., will be paying the EDA the full amount of
the lot price at closing, so a contract for deed will not be necessary. A revised purchase
agreement and resolution for this transaction is also included for EDA action. Also attached
is a memorandum from the City Assessor regarding the land value.
Member introduced the following resolution and
moved its adoption:
RESOLUTION NO.
RESOLUTION AUTHORIZING MAYOR AND CITY MANAGER TO
EXECUTE A QUIT CLAIM DEED TO THE ECONOMIC DEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER FOR
CERTAIN REAL PROPERTY LOCATED AT 6601 BRYANT AVENUE
NORTH
WHEREAS, on October 13, 1992, the Economic Development Authority in and
for the City of Brooklyn Center authorized the execution of a purchase agreement for the
acquisition of 6601 Bryant Avenue North (the "Property "), legally described as:
That part of Lot 43 lying easterly of a line running from a point
in the north line thereof, distance 163.3 feet west from the
northeast corner thereof, to a point in the south line thereof,
distance 163.28 feet west from the southeast corner thereof except
street, Lot 43, Auditor's Subdivision 310 to Hennepin County;
and
WHEREAS, the Economic Development Authority in and for the City of
Brooklyn Center acquired the property pursuant to Minnesota Statutes 469.012, Subd. 7.; and
WHEREAS, title to the property was inadvertently placed in the name of the
City of Brooklyn Center; and
WHEREAS, the City of Brooklyn Center has only nominal title to the property
since the acquisition of the property was authorized and funded by the Economic Development
Authority in and for the City of Brooklyn Center; and
WHEREAS, the City of Brooklyn Center desires to quit its claim to the property.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center to authorize its mayor and city manager to execute a quit claim deed to the
Economic Development Authority in and for the City of Brooklyn Center for the property.
Date Mayor
•
RESOLUTION NO.
•
ATTEST:
Deputy Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
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.
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 6601 BRYANT AVENUE NORTH
WHEREAS, EDA Resolution No. 95 -28 provided for a public hearing regarding
the sale of the EDA -owned property located at 6601 Bryant Avenue North (the "Property") to
Howard Bohanon Homes, Inc., for $22,000; and
WHEREAS, the Brooklyn Center EDA held the public hearing on the sale of the
property at its October 23, 1995 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 October 23, 1995
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 6601 Bryant 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.
PURCHASE AGREEMENT
THIS AGREEMENT, made and entered into this 23 day of October, 1995, by and
between the ECONOMIC DEVELOPMENT 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 contract for deed 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 6601 Bryant 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 Twenty -Two Thousand Dollars ($22,000) (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) $21,500, 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 1995 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 1996 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 October 31,
1995. 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
With copy to: Corrine Thomson
Kennedy & Graven, Chartered
470 Pillsbury Center
Minneapolis, MN 55402
-2-
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 Closin The following documents shall be
delivered at closing:
By Seller:
(1) 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 September 25, 1995, Economic Development Authority in and for
the City of Brooklyn Center meeting 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 May 1, 1996, and to
complete construction of the Improvements no later than August 31, 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.
15. Default 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
-3-
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 period shall be thirty (30) days as permitted by 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
STATE OF MINNESOTA )
ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
1995, by the of
Howard Bohanon Homes, Inc., a Minnesota corporation.
Notary Public
-4-
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 1995, by Myrna Kragness and Cam Andre, 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
-5-
EXHIBIT A
Legal Description
That part of Lot 43 lying easterly of a line running from a point
in the north line thereof, distance 163.3 feet west from the
northeast corner thereof, to a point in the south line thereof,
distance 163.28 feet west from the southeast comer thereof except
street, Lot 43, Auditor's Subdivision 310 to Hennepin County.
s
i
-6-
MINNESOTA WELL DISCLOSURE STATEMENT
Minnesota Law requires that before signing an agreement to sell or
June 30, 1990, the seller must disclose information in writing to transfer real pip, after
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 prop disclosure statement indicating the legal description and county and a map showing the location or a
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 fie' 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 of a well is liable to the buyer for costs relating to the
and reasonable attorney fees for collection of costs from the seller. if the action is mm o wi well
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 aide.
I. PROPERTY DESCRIPTION
Street address N or t h
k vn inter Henneuin
2. LEGAL DESCRIPTION
That art of Lot Al !yin easterly of a line running from a point in the north line
thereof. distance 163.3 feet west from the northeast corner thereof, to a ° point in
_Lhe so„rh ire hereof, distance 163.28 west from the southeast corner thereof exc
street, Lot 43, auditor's Subdivision 310 to Hennepin Countq.
3. WELL DISCLOSURE STATEMENT
(Check the appropriate box.)
Cl The seller certifies that the seller does not know of any wells on the above described real
prope-'tY•
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 desc:a ed real grope :3
MN. Unique Well Year of Well LN USE NOT L*t SE
Well No. Depth Const. Type USE
Well no snot +�� 77' n�k�own _sinol f�mit.
Well residential ❑ K
Well 3 C ❑ ❑
4. SEALED WELL INFORMATION
For each well designated as sealed above, complete this section.
When was the well sealed? 6 -30 -93
Who sealed the well? Lens w 11 � P „in St, ..t
Was a Sealed Well Report filed with the Minnesota Department of health? Yes x No
5. MAP
Complete the attached map showing the location of each well on the real property.
6. CERTIFICATION BY SELLER
I certify that the information provided above is ac= -ate and complete to the best of my
know!
Dau
Dw
EXHIBIT B
Please use the space below to sketch the real property on of EACH w
on the property. Include distances from filed reference
big sold and the locati points such as streets and begs well
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Z t } �
C b
a zycrf .4
VV
J; 4V //_
�O � � TUw.✓ �v Sca /�� .
LSE ADDITIONAL SPACE ON BACK IF NEEDED
EX MIT 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 6601 Bryant
Avenue North in Brooklyn Center and legally described in
Exhibit A attached to this purchase agreement.
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M E M O R A N D U M
DATE: September 27, 1995
TO: Tom Bublitz
FROM: Stephen Baker
RE: Land Value - 6601 Bryant Avenue North
PID 36- 119 -21 -24 -0009
A review of recent Brooklyn Center land sales and listings indicates a range of value for
the subject lot of $20,000 to $24,000. Based on this information and your experience
marketing this property I feel a current estimate of market value for the land parcel at
6601 Bryant Ave. North, is $22,000
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