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HomeMy WebLinkAbout1993 02-22 EDAP Regular Session EDA AGENDA CITY OF BROOKLYN CENTER FEBRUARY 22, 1993 (following adjournment of City Council meeting) 7 p.m. 1. Call to Order 2. Roll Call 3. Approval of Minutes: a. EDA Minutes - February 8, 1993 - Special Session 4. Discussion Item: a. Brooklyn Center Community Development Citizens Participation Committee for Community Development Block Grant (CDBG) Program 5. Resolution: a. Approving the Purchase of Real Property at 6715 and 6719 Humboldt Avenue North and Authorizing Execution of Purchase Agreement 6. Adjournment CITY OF BROOKLYN CENTER council Meeting Date February 22, 1993 Agenda Item Number REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: EDA MINUTES - FEBRUARY 8, 1993 - SPECIAL SESSION DEPT. APPROVAL: Brad Hoffman, A Coordinator MANAGER'S REVIEW/RECONEMENDATION: No comments to supplement this report Comments below /attac ed SUMMARY EXPLANATION: (supplemental sheets attached ) RECOMMENDED CITY COUNCIL ACTION • 3 a. 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 FEBRUARY 8, 1993 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Todd Paulson at 10:25 p.m. ROLL CALL President Todd Paulson, Commissioners Celia Scott, Dave Rosene, Barb Kalligher, and Kristen Mann, Also present were City Manager Gerald Splinter, Director of Community Development Brad Hoffman, Director of Finance Paul Holmlund, City Attorney Charlie LeFevere, and Council Secretary Nancy Berg. APPROVAL OF MINUTES JANUARY 11 1993 - SPECIAL SESSION There was a motion by Commissioner Rosene and seconded by Commissioner Kalligher to approve the minutes of the January 11, 1993, EDA meeting as printed. The motion passed unanimously, DISCUSSION ITEM AUTHORIZATION FOR MANAGEMENT AUDIT Of THE EARLE BROWN HERITAGE CENTEL The City Manager presented the authorization for management audit of the Earle Brown Heritage Center for discussion. He explained at the May 18, 1992, EDA workshop, state requested the commission to consider a proposal from Marquette Partners to perform a comprehensive evaluation of the Heritage Centcr's operation. He further explained staff suggested it would be oeneficial to have an independent review of the entire operation, including management, staffing levels, operation costs, market niche, and pricing. The Director of Community Development presented a proposal from Marquette Partners with a cost estimate not to exceed $10,000. He explained Marquette Partners had been recommended to the EDA from a variety of sources, all of whom were in the hospitality industry, 2/8/93 - 1 - President Paulson asked if Marquette Partners had any dealings with other businesses at the Heritage Gwen The Director of Community Development answered no, but they had been highly rccommended to staff, Commissioner Scott stated the proposal seemed to be a very comprehensive package -- just what the City was looking for. Commissioner Rosene expressed concern over the proposal amount of 810,040. Commissioner Kalligher suggested staff obtain at least two more proposals to pruvido a comparison for the EDA. There was a motion by Commissioner Mann and seconded by Commissioner Rosene to direct staff to prepare an KFP for a management audit of the Earle Brown Herita8c Cc iilcr. President Paulson explained he would like the consultant to Iook at the management and to also attempt to define public use versus commercial use at the Earle Brown Heritage Center. The motion passed unanimously. The Director of Community Development agreed to write a formal RFP for the EDA's review, ADJOURNMENT There was a motion by Commissioner Rosene and seconded by Commissioner Scott to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 10:35 p.m. I Todd Paulson, President Recorded and transcribed by: Nancy Berg TimeSaver Off Site Secretarial 2/8/93 -2- CITY OF BROOKLYN CENTER cameil Meeting Date E 2 I993 Agenda Item Number / a � REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: BROOKLYN CENTER COMMUNITY DEVELOPMENT CITIZENS PARTICIPATION COMMITTEE FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM DEPT. APPROVAL: Tom Bublitz, Community DevelojWhent Specialist MANAGER'S REVIEW/RECOMMENDATION: No comments to supplement this report Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached The Brooklyn Center Community Development Citizens Participation Committee was formed in the 1970s to provide citizen input as part of the citizen participation process of the Community Development Block Grant program. The committee format is not a requirement of the Community Development Block Grant program however, the City is required to hold a public hearing on the proposed CDBG spending program. The membership of the committee was originally composed of representatives from each of the City commissions and four at -large representatives. The chair of the committee was Barbara Jensen, who has resigned from the CDBG committee and Housing Commission. The remaining membership included Bud Sorenson, representing the Park and Recreation Commission, Agatha Eckman, representing the Human Rights and Resources Commission, and Tom Loberg, Lois Kline and Vernon Ausen as at -large representatives. The group met once a year to review and make recommendations regarding the allocation of funds under the City's Community Development Block Grant program. Attendance has been poor over the past few years. In 1991, only two committee members attended and in 1992 only the chair attended. Since the City of Brooklyn Center is part of the Urban Hennepin County CDBG group, Hennepin County has also had citizen advisory committees comprised of representatives from member cities. Over the years, participation on the county committees has declined and presently, there are no citizen advisory committees at the county level. With the resignation of the chair and the attendance record at the annual meetings of the CDBG committee, I would recommend that the City Council use its required public hearing as the source of citizen input on the CDBG program rather than the CDBG committee. Staff will be prepared to discuss this item in more detail at the meeting. RECOMMENDATION: Staff recommends use of public hearing format for citizen input. • • CITY OF BROOKLYN CENTER cameil Meeting Date February zz. I993 Agenda Item Number SQL REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: RESOLUTION APPROVING THE PURCHASE OF REAL PROPERTY AT 6715 AND 6719 HUMBOLDT AVENUE NORTH AND AUTHORIZING EXECUTION OF PURCHASE AGREEMENT DEPT. APPROVAL: Tom Bublitz, Community Development Specialist AL MANAGER'S REVIEW/RECOAMENDATION: • No comments to supplement this report . Comments below /attached SUN MARY EXPLANATION: (supplemental sheets attached Yes This resolution would provide for the acquisition of the two (2) remaining buildings on the Humboldt Avenue site. One of the buildings included in this resolution is 6719 Humboldt Avenue North, which is the burned -out building on the site. The acquisition costs for the buildings are $36,900 for 6715 Humboldt Avenue North and $13,500 for 6719 Humboldt Avenue North. Copies of the purchase agreements for the properties are included with this form. RECOMMENDATION Staff recommends approval of the resolution. Sales C ontract U.S. Department of Housing fl • Property Disposition Program and Urban Development Office of Housing , r Federal Housing Commisioner OMB Approval No. 2502 -0306 HUD Case No. 46 I(We), Eronomi r T)PVPI onment Authori in anri for the C'i t3 of Rrnnk3- .T ( Purchaser( s)) agree to purchase onthe terms set forth herein', the following property, as more particularly Center described in the deed conveying the property to the Secretary of Housing and Urban Development 6719 Hmnhnl A'ranSta Nnri -n Brooklyn Cantor Hannopla County Mina sota (Street number, Street name, unit number, A applicable, city, county, State) 2. The Secretary of Housing and Urban Development (Seller) agrees to sell the property at the price and terms set forth herein, and to prepare a deed containing a covenant which warrants against the acts of the Seller and all claiming by, through or under him. Title will betaken in the following name(s) and style: 3 . The agreed purchase price of the property is .................................................................................. .............................. 3.S 13, 500.00 Purchaser has paid $ as eatnestmoney to be applied on the purchase price, and agrees to pay the balance of the purchase price, plus orminus proration, at the time of closing, in cash to S eller. The earnest money deposit shall be held by 4. ( )Purchaser is applying for HUD/FHA insured financing with acash down paymentof $ due at closing and the balance secured by a mortgage in the amount of S for months (does not include HUD/FHA Mortgage Insurance Premium). ( )Said mortgage involves arepair escrow amounting to .......... ............................... .............. .............................)0� 4. $ 0.00 ( ) Purchaser is paying cashor applying forconventional orother financing not involving HUD/FHA. 5. Seller will pay reasonable and customary costs, but not more than actual costs normore than paid by atypical Seller in the area, of obtaining financing and/or closing (excluding brokers commission) in an amount not to exceed .............. 0.00 6. Upon sales closing, Seller agrees to pay to the broker identified below a commission (including bonus, if applicable) of ................................................................................................................................ .............................)10. 6.$ 0.00 7. The net amount due Seller is (Purchaseprice, Item 3, less Item 4 escrow, if any, less Items 5 and 6) . .............................)No. ? $ 13,_500_flt) 8. Purchaser is ( ) owner - occupant (will occupy this property as the primary residence); ( ) investor. _ Time is of the essence as to closing. The sale shall close not later than March 8, 1993 Closing shall be held at 470 Pill Ghur14 ri ntpr,rjjnnaannl i c Minnpenta :D. If Seller does not accept this offer, Seller ( )may ( )may not hold such offer as aback -up to accepted offer. 11. An addendum ( ) is ( ) is not attached hereto and made part of this contract. 2. Should Purchaser refuse or otherwise fait to: perform in accordance with this contract, including the time •limitation, Seller may, at` SeHer'ssoleoption retainalloraportionofthedepositasliquidateddamages. TheSellerreservestherighttoapplytheearnestmoney ,? or any portion thereof, to anysums which may be owed by the Purchaser to the Seller for rent. Purchaser(s)lnifiats: Selieeslnifals_ 13. This contract is subject to the Conditions of Sale on the reverse hereof, which are incorporated herein and made part of this contract. Certification of Purchaser. The undersigned certifies that in affixing his/her /its signature to this contract he /she/it understands all the contents thereof (including the Conditions of Sale) and is in agreement therewith without protest. Purchasw(s): (type or print names, social security numbers, and sign) Purchaser(s) Address: Economic Development Authority in and for the 6301 Shingle Creek Parkway ' City of Brooklyn Center Brooklyn Center, MN 55430 Phone No.: Date Contract Signed by Purchaser(s): B y : B y : 569 -3300 Seller. Secretary of Housing and Urban Development Date Contract Accepted by HUD: BY: (type name & fide, & sign) X Certification of Broker: The undersigned certifies that: (1) neither he /she nor anyone authorized to act for him/her has declined to sell the property described herein to or to make it available for inspection or consideration by a prospective purchaser because of his/her race, color, religion, sex, or national origin; (2) he/she has executed and filed with HUD, form HUD -9556, Joint HUD -VA Nondiscrimination Certification (Sales Broker); and (3) he/she has both provided and explained to the purchaser the notice regarding use of HUD's closing agent; and (4) he /she is in compliance with HUD's earnest money policy as set forth in Agreement to Abide executed on , 19 Business Name & Address of Broker (Include Zip Code)(For IRS reponing) Broker's Social Security No. or Employer ID No. Area Code & Phone No. of Broker . (Include hyphens) Signature of Broker Typ* or print the name and phone number of sales person: This section for HUD use only. Broker notified of: By: Date w . H Acceptance F1 Back -Up No. iRejection Return Earnest Morley Deposit X Previous Editions are Obsolete form HUD -9548 (11/90) __ Original ref. Handbook 4310.5 Sales Contract U.S. Department of housing • Property Disposition Program and Urban Development Office of Housing r Federal Housing Commisioner OMB Approval No. 2502 -0306 HUD Case No. I(We), Economic Development A tthori ty in and for 1 Gi tW of Brookl yu (Purchaser(s)) agree to purchase on the terms set forth herein, the following property, as more particularly Center described in the deed conveying the property to the Secretary of Housing and Urban Development: 6715 Humboldt Avenue North, Brooklyn Center, Hennepin County Minne (Strad number, Strad name, unit number, ( applicable, city, county, State) 2. The S ecretary of Housing and Urban Development (Seller) agrees to sell the property at the price and terms set forth herein, and to prepare a deed containing a covenant which warrants against the acts of the Seller and all claiming by, through or under him. Title will be taken in the following name(s) and style: 3. The agreed purchase price of the property is ................................................................................. ............................... 3. $ 3 f , 9 0 0. 0 0 = Purchaser has paid $ as earnest money to be applied on the purchase price, and agrees to pay the balance of the purchase price, plus or minus proration, at the time of closing, in cash to S eller. The eames t money depo sit shall be held by 4. ( ) Purchaser is applying for HUD/FHA insured financing with acash down paymentof $ due at closing and the balance secured by a mortgage in the amount of $ for months (does not include HUD/FHA Mortgage Insurance Premium). ( ) Said mortgage involves arepair escrow amounting to ............:: )100.4.$ 0 nn ( ) Purchaser is paying cashor applying forconventional or other financing not involving HUD/FHA. 5. Seller will pay reasonable and customary costs, butnot more than actual costs nor more than paid by atypical Seller in the area. of obtaining financing arid/or closing (excluding broker's commission) in an amount not to exceed .............. 5.$ 0.00 6. Upon sales closing, Seller agrees to pay to the broker identified below a commission (including bonus, if applicable) of ..:....... 6.$ 0.00 7. The net amount due Seller is (Purchase price, Item 3, less Item 4 escrow, if any, less Items 5 and 6) 36, 9(3€1 00 8. Purchaser is ( ) owner - occupant (will occupy this property as the primary residence); ( ) investor. Time is of the essence as to closing. 'Me sale shall close notiaterthan _ Marrh A, 1993 Closing shall be held at 470 Pillsbury I" pntpr , Mi nnpnpnl_i g , MinnesOtn 0. i If Sellerdoes not accept this offer, Seller Omay Omaynotholdsuchofferasaback- utptoacceptedoffer. 11. An addendum ( ) is ( )is not attached hereto and madepart of this contract. 1 . 1 Should Purchaser refuse or otherwise fail to perform in accordance with this contract, including the time limitation, Seller may, at Seller'ssoleoption retain all ora portion of the depositas liquidated damages. The Sellerreserves the right to apply theearnestmoneyi or any portion thereof, to anysums which maybe owed by the Purchaser to the Seller for rent♦ Purctaser(s)lnitials> gellet's in fafs Z 13. This contract is subject to the Conditions of Sale on the reverse hereof, which are incorporated herein and made part of this contract. ` Certification of Purchaser. The undersigned certifies that in affixing his/her /its signature to this contract he/ she /it understands all the contents thereof - ± (including the Conditions of Sale) and is in agreement therewith without protest. Purchaser(s): (type or print names, social security numbers, and sign) Purchaser(s) Address: c Economic Development Authority in and for the 6301 Shingle Creek Parkway -City of Brooklyn Center Brooklyn Center MN 55430 • iQ: .r s `... y '� • , Phone No.: Date Contract Signed by Purchaser(s): �> By B 5 } ;,. !; Seller. Secretary of Housing and Urban Development Date Contract Accepted by HUD: «. By: (type name 3 title, 8 sign) Certification of Broker: The undersigned certifies that: 1 neither he/she nor anyone aut him/h has declined to sell the p g () / y thonz d to act for him/h p party described herein to or to make it available for inspection or consideration by a prospective purchaser because of his/her race, color, religion, sex, or national origin; (2) he/she has executed and filed with HUD, form HUD -9556, Joint HUD -VA Nondiscrimination Certification (Sales Broker); and (3) he/she has both P rovided and explained to the purchaser the notice regarding use of HUD's closing agent; and (4) he /she is in compliance with HUD's earnest money policy as set forth in Agreement to Abide executed on , 19 _ Business Name 6 Address of Broker (Include Zip Code)(For IRS reporting) Broker's Social Security No. or Employer ID No. Area Code & Phone No. of Broker (include hyphens) Signature of Broker X ype or print the name and phone number of sales person: Y ` u LA. . This section for HUD use only. Broker notified of: By: r Date Acceptance Back -Up No. C . I . Re)ection Return Earnest Money Deposit X Previous Editions are Obsolete forrn HUD -9548 (11/'90) Original ref. Handbook 4310.5 Fr ADDENDUM TO SALES CONTRACT LEAD -BASH PAINT HEALT11 AAZnRD _ PROPERTY CONSTRIICTED PRIOR TO 1978 (This addendum survives the closing of the sale.) This property was constructed prior to 1978 and a lead based paint health hazard may be present This addendum must be signed by all purchasers, dated on or before the date of the Sales Contract, and forwarded to HUD with the Sales Contract. Contracts which are not in conformance with these instructions will not be accepted by HUD RE (FELA C— N.-hr) (P-P -M AAd—) SECTION A (APPLICABLE TO OWNER - OCCUPANT AND INVESTOR PURCHASERS) 1. This addendum replaces the last sentence of Condition K on the reverse of the Sales Contract. 2 Purchaser hereby acknowledges and certifies that he/sheAL a. Has received the Notice entitled Watch Out For Lead -Based Paint Poisoning: b. Understands fully the contents of the aforementioned Notice. c Has signed the aforementioned Notice on the same or earlier date as the Sales Contract. 3. If purchaser's offer involves FHA - insured Ifnancing, purc understands that the mortgage lender must be provided, as a condition to processing the mortgage application, with the aforementioned Notice, containing purchaser's original signature and date. [ ] I am an Investor Purchaser [ ] I am an owner- occupant Purchaser SECTION B (TO BE COMPLETED By OWNER.00CUpANT PURCHASER ONLY) (Check and comPlete the following, as appr»prurte.) [ ] I (we) do not have a child under the age of seven years [ ] I (we) do have a child under the age of seven years Their names and ages are as follows: Name Age (Check only one of the following blocks if children under seven are indicated above.) ( ] I (we) understand that within 15 days after acceptance by HUD of my (our) offer to purchase, I (we) will, at my (our) expense, have each of the above -named children tested for an elevated blood level (EBL) and that I (we) will provide these test results to HUD. If I (we) fail to provide the test results to HUD within the 15-day time frame, the eonhoact W01 be pled immediately without further notice. Further, I understand that If an EBL condition is identified, and the property tests positive for the presence of lead -based paint, HUD may elect not to treat the property. In such a case, the contract will be canceled and the earnest money refunded. ( ] I (we) filly understand that it a blood lead level screening program is not reasonably available, if I (we) refuse to have my (our) child(ren) tested, or, if HUD is unable to test the property for the existence of lead -based paint, I (we) have the Option of closing this sale. I (we) hereby acimowiedge that this property I (we) am (are) pulchmsing frDEM the Department of IIomiirrg and Urban Ikyedopment may contain ''a' : mred paint, IIowever, despite this parsubaity, I we clod to ckw-e the sale on this property. Further, I (we) agree to bold IIUD harmless for this action. (Sirp.nn •[ Wimru) (Sira•an .( P.nb.••r) (Du.l (51r.•un .7 P•nbaur7 (U•�r7 NOTE TO RFaL F%T,\TE BROKFIa_S TO ENSURE PROPER CONSIDER %'nON OF YOUR CUETTS OFFER TO PURCU,%SE A PROPERTY CONS ED PRIOR TO t97& nits ADDL 40UM MUST BE ATTACHED TO ,LND .SLIDE A PART OF L%CII SALES coym%CT. BROILERS ,%RE RESPONSIBLE FOR REPRODUCING THIS DOCUMENT. 'U.S. Govwmrnl Pnntinq Me: 1992 — 372.21 &60275 ADDENDUM TO SANS CONTRACT LEAD -BASED PAINT BM%,LM HAZARD - PROPERTY CONSTRUCTID PRIOR TO 1978 (This addendum survives the closing of the sale.) This property was constructed prior to 1978 and a lead -based paint health hazard may be present This addendum must be signed by all purchasers, dated on or before the date of the Sales Contract, and forwarded to HUD with the Sales Contract. Contracts which are not in conformance with these instructions will not be accepted by HUD RE- (Ft1A Cue N.m►er) (PnPerry AA4—) SECTION A (APPLICABLE TO OWNER - OCCUPANT AND INVESTOR PURCHASERS) 1. This addendum replaces the last sentence of Condition K on the reverse of the Sales Contract. 2- Purchaser hereby acknowledges and certifies that he/she/W a. Has received the Notice entitled Watch Out For Lead -Based Paint Poisoning! b. Understands fully the contents of the aforementioned Notice. e Has signed the aforementioned Notice on the same or earlier date as the Sales Contract. 3. If purchaser's offer involves FHA - insured financing, purchaser understands that the mortgage lender must be provided, as a condition to processing the mortgage application, with the aforementioned Notice, contai purchaser's original signature and date. [ } I am an Investor Purchaser [ ] I am an owner- occupant Purchaser SECTION B (TO BE COMPLETED BY OWNER - OCCUPANT PURCHASER ONL1) (Check and complete the jollowing, as appropriate.) [ ) I (we) do not have a child under the age of seven years. [ ] I (we) do have a child under the age of seven years. Their names and ages are as follows. Name Age (Check only one of the jollowing blocks if children under seven are indicated above.) [ ] I (we) understand that within 15 days after acceptance by HUD of my (our) offer to purc I (we) will, at my (our) expense, have each of the above -named children tested for an elevated blood level (EBL) and that I (we) will provide these test results to HUD. If I (we) fail to provide the test results to HUD within the 15-day time frame, the emama will be canceled immediately without further notice- Further, I understand that if an EBL condition is Identified, and the property tests positive for the presence of lead -based paint, HUD may elect not to treat the property. In such a case, the contract will be canceled and the earnest money refunded. [ ] I (we) fully understand that if a blood lead level screening program is not reasonably available, if I (we) refuse to have MY (our) child(ren) tested, or, U HUD is unable to test the property for the existence of lead -based paint, I (we) have the option of closing this sale. I (we) hereby acknowiedge that this property I (we) am (arse) p—hasi ng from the Department of IIoaxi , and Urban Development may contain 'a'-base; paint. However, despite this paraubrlity, I (we) elea to close the sale on this property. Farther, I (we) agree to hold HUD harmless for this action, (Sipeten er Witaree) (Sgnean .( Pen6esry (Dee) (Sirmm� .r Pen6a..rl (Ue�el NOTE TO REAL ESrATT. BROKERS TO ENSURE PROPER CONSIDERATION OF YOUR CLIESTS OFFER TO PURCILLSE A PROPERTY CONS'IRL'CIFD PRIOR TO l9?t, TT115 ADDEYDUN SIUST BE ATTACULD TO ,AND NUDE A PART OF EACH SALES CO.YIRICT. BROILERS ,UtE RESPONSIBLE: FOR REPRODUCING TT1IS DOCUNIE \T. (Zr_1 'U.S. Govwmrnl Panting cmce: IM — 312.218160235 SELLER'S POLICIES The following is intended to interpret and supplement several of the Conditions of Sale of the HUD Sales Contract, HUD 9548. This statement of Seller's Policies incorporated by reference into the Sales Contract is intended to supersede any provisions of the Sales Contract which are inconsistent herewith and will govern all sales of the Minneapolis -St. Paul office of HUD. CONDITION OF SALE A Taxes Real estate taxes due and payable in and for the year of closing shall be prorated between Seller and Buyer on a calendar year basis to the actual date of closing. Buyer shall pay all real estate taxes due and payable in the year following closing and thereafter. Assessments (By taxing authorities) Buyer and Seller shall prorate as of the date of closing ll special assessments i 4 P certified for payment with the real estate taxes due and payable in the year of closing. Buyer shall assume all other special assessments levied or pending as of the date of this Sales Contract. Water bills and property maintenance charges by the city (summary abatement /board- up /nuisance charges), which can become assessments, will be paid in full at closing if presented by the purchaser(s). Water bills and city maintenance charges not paid at closing become the responsibility of the purchaser. Homeowner Association Fees Foreclosure extinguishes all subordinate debts and liens, including Association Fees. Therefore, HUD will pay at closing only Association fees owing from the date of acquisition by HUD to the date of closing. Association special assessment installment payments are treated as fees: amounts payable between date of acquisition by HUD and date of closing will be paid by HUD. It is the purchaser's responsibility to present the Association bill at closing; bills not paid at closing will not be paid by HUD. CONDITION OF SALE D HUD will evidence good and marketable title through a Title Insurance Policy in the Department's name for abstract properties or a Certificate of Title for torrens properties. HUD does not guarantee the availability of an abstract and will not pay to have one reconstructed if it does not exist. CONDITION OF SALE E Seller assumes risk of major loss or damage. Minor loss or damage will not be repaired and may not be used by the purchaser as a basis for not closing; earnest money will be forfeited. Major damage is represented by such items as fire, flood, severe vandalism. Examples of minor damage /loss include but are not limited to such items as a broken door; missing appliances, mini - blinds, or drapery rods /draperies; a damaged or missing light fixture; stained glass windows; leaking water pipes and /or damaged or missing faucets. It is the buyer's responsibility to inspect the property immediately prior to closing to ascertain that no major loss or damage has occurred. Closing on the sale is considered acceptance of the property condition. No warranty on condition is given. CONDITION OF SALE N Earnest Money All sales (FHA and non -FHA) - $500 for properties on which the bid amount is $50,000 or less. $1,500 for properties over $50,000 but no more than $75,000. $2,000 for properties over $75,000. The required amount must be in the broker's trust account before the offer is submitted. Failure to close by the date specified in the HUD contract acceptance letter (or an extended closing date approved by HUD in writing) will result in forfeiture of all earnest money, except as provided below in the Return /Forfeiture section. Return /Forfeiture of Earnest Money as related to specific types of properties: Condominium Properties - Purchasers using the 15 -day right of recision provision allowed by Minnesota law are not subject to loss of earnest money or the $50.00 cancellation fee (for FHA- eligible sales) if the required documents are submitted within the time limit. For all condo cancellations, however, a $25.00 copying fee will be withheld from earnest money if the condominium documents are not returned at the time of cancellation. Sales of property eligible for FHA insurance or VA guarantees - If, using due } "' diligence, the purchaser is unable to obtain credit approval for an FHA - insured (or VA e-= guaranteed) loan, the proper cancellation procedures as specified in the Broker Guie must be followed. If the process in the Broker Guide is correctly followed and HUD approves the Cancellation, a $50.00 cancellation fee will be required by HUD from the earnest money deposit and the remainder of the earnest money will be authorized to be returned to the purchaser. If the property is eligible for FHA financing but the purchaser elects to seek financing other than FHA - insured or VA- guaranteed loans and the purchaser is unable to obtain credit approval for that financing, this provision does not apply. An owner - occupant purchaser would be treated as outlined below for owner- occupant purchasers of properties not eligible for FHA insurance. An investor purchaser would forfeit all earnest money. Sales of property not eligible for FHA insurance which have an owner- occupant purchaser - If, using due diligence, the owner- occupant purchaser is unable to obtain financing for the purchase from a recognized mortgage lender, the proper cancellation procedures as set forth in the Broker Guide must be followed. If the process is correctly followed and HUD approves the cancellation, HUD will require an amount equal to 508 of the earnest money deposit and allow the remainder to be returned to the purchaser. Investor purchasers of properties not eligible for FHA insurance who do not close on the sale forfeit all earnest money. These provisions which permit return of earnest money apply only to sales cancellations submitted in accord with the procedures set forth in the Broker Guide and approved before the HUD- established deadline for closing. Extension Policy Extensions to the established deadline for closing are granted at the sole discretion of HUD. They should be requested and paid for in advance through the HUD Closing Agent. However, if advance payment is not made and HUD allows the closing to occur after the deadline closing date, funds will be retained by HUD at closing to cover the extension fee. A $150 extension fee is charged for each 15 -day extension period or portion thereof for properties with a bid amount of $50,000 and under. A $300 extension fee is charged for each 15 -day extension period or portion thereof for properties with a bid amount of over $50,000. The extension request and fee payment must be made in accord with the procedures set forth in the Broker Guide. Credit for unused portions w given at closing at the rate of $10.00 per day for $150 extension fees and $20 pe for $300 extension fees. If closing does not occur, the entire fee ($150 or $300) be forfeited to HUD. Back -up Offers The HUD office may retain back -up offers from those offers received during the established bid period where the bidders indicated on the HUD 9548, Sales Contract, a desire to have the bid held as a back -up offer, (Item 10). If the first offer fails to close, the other offers may be considered. No offer submitted after the established period will be accepted as a back -up offer. Closing and Financing Costs HUD will pay the actual amount of closing and financing costs up to the amount listed in Line 5 of the Sales Contract (HUD- 9548), which may be a maximum of 5% of the bid amount. In no event may Line 5 funds be used to pay a closer for services on behalf of the lender. For FHA - insured financing: Closing costs must be reasonable and customary according to standard FHA policy. Line 5 funds may not be used to pay a closer for services on behalf of the lender nor for an appraisal since the executed sales contract is the FHA conditional commitment. You should note that HUD -paid closing costs will affect the mortgage amount and down - payment required. WELLS In accord with Minnesota law HUD has provided all known information concerning the existence and status of wells on the subject property. It is possible that abandoned wells may exist unknown to HUn and its aaenta. Pnrrh— ar acknnwiaanac *r,;, , n A ate __ all responsibility for sealing abandoned wells to meet provisions of the Groundwater Protection Act. I certify that I have been given a copy of Seller's Policies and agree that they are incorporated into the Sales contract. Signature of Purchaser(s) Date Signature of Purchaser(s) Date January, 1992 SELLER'S POLICIES The following is intended to interpret and supplement several of the Conditions of Sale of the HUD Sales Contract, HUD 9548. This statement of Seller's Policies in by reference into the Sales Contract is intended to supersede any provisions of the Sales Contract which are inconsistent herewith and will govern all sales of the Minneapolis -St. Paul office of HUD. CONDITION OF SALE A Taxes Real estate taxes due and payable in and for the year of closing shall be prorated between Seller and Buyer on a calendar year basis to the actual date of closing. Buyer shall pay all real estate taxes due and payable in the year following closing and thereafter. Assessments (By taxing authorities) Buyer and Seller shall prorate as of the date of closing all special assessments certified for payment with the real estate taxes due and payable in the year of closing. Buyer shall assume all other special assessments levied or pending as of the date of this Sales Contract. Water bills and property maintenance charges by the city (summary abatement /board- up /nuisance charges), which can become assessments, will be paid in full at closing if presented by the purchaser(s). Water bills and city maintenance charges not paid at closing become the responsibility of the purchaser. Homeowner Association Fees Foreclosure extinguishes all subordinate debts and liens, including Association Fees. Therefore, HUD will pay at closing only Association fees owing from the date of acquisition by HUD to the date of closing. Association special assessment installment payments are treated as fees: amounts payable between date of acquisition by HUD and date of closing will be paid by HUD. It is the purchaser's responsibility to present the Association bill at closing; bills not paid at closing will not be paid by HUD. CONDITION OF SALE D HUD will evidence good and marketable title through a Title Insurance Policy in the Department's name for abstract properties or a Certificate of Title for torrens properties. HUD does not guarantee the availability of an abstract and will not pay to have one reconstructed if it does not exist. CONDITION OF SALE E Seller assumes risk of major loss or damage. Minor loss or damage will not be repaired and may not be used by the purchaser as a basis for not closing; earnest money will be forfeited. Major damage is represented by such items as fire, flood, severe vandalism. Examples of minor damage /loss include but are not limited to such items as a broken door; missing appliances, mini - blinds, or drapery rods /draperies; a damaged or missing light fixture; stained glass windows; leaking water pipes and /or damaged or missing faucets. It is the buyer's responsibility to inspect the property immediately prior to closing to ascertain that no major loss or damage has occurred. Closing on the sale is considered acceptance of the property condition. No warranty on condition is given. CONDITION OF SALE N Earnest Money All sales (FHA and non -FHA) - $500 for properties on which the bid amount is $50,000 or less. $1,500 for properties over $50,000 but no more than $75,000. $2,000 for properties over $75,000. The required amount must be in the broker's trust account before the offer is submitted. Failure to close by the date specified in the HUD contract acceptance letter (or an extended closing date approved by HUD in writing) will result in forfeiture of all earnest money, except as provided below in the Return /Forfeiture section. Return /Forfeiture of Earnest Money as related to specific types of properties: Condominium Properties - Purchasers using the 15 -day right of recision provision allowed by Minnesota law are not subject to loss of earnest money or the $50.00 cancellation fee (for FHA - eligible sales) if the required documents are submitted within the time limit. For all condo cancellations, however, a $25.00 copying fee will be withheld from earnest money if the condominium documents are not returned at the time of cancellation. Sales of property eligible for FHA insurance or VA guarantees - If, using due - diligence, the purchaser is unable to obtain credit approval for an FHA- insured (or VA guaranteed) loan, the proper cancellation procedures as specified in the Broker G must be followed. If the process in the Broker Guide is correctly followed and HUD approves the cancellation, a $50.00 cancellation fee will be required by HUD from the earnest money deposit and the remainder of the earnest money will be authorized to be returned to the purchaser. If the property is eligible for FHA financing but the purchaser elects to seek financing other than FHA - insured or VA- guaranteed loans and the purchaser is unable to obtain credit approval for that financing, this provision does not apply. An owner - occupant purchaser would be treated as outlined below for owner - occupant purchasers of properties not eligible for FHA insurance. An investor purchaser would forfeit all earnest money. Sales of property not eligible for FHA insurance which have an owner- occupant purchaser - If, using due diligence, the owner - occupant purchaser is unable to obtain financing for the purchase from a recognized mortgage lender, the proper cancellation procedures as set forth in the Broker Guide must be followed. If the process is correctly followed and HUD approves the cancellation, HUD will require an amount equal to 508 of the earnest money deposit and allow the remainder to be returned to the purchaser. Investor purchasers of properties not eligible for FHA insurance who do not close one the sale forfeit all earnest money. These provisions which permit return of earnest money apply only to sales cancellations submitted in accord with the procedures set forth in the Broker Guide and approved before the HUD - established deadline for closing. Extension Policy Extensions to the established deadline for closing are granted at the sole discretion of HUD. They should be requested and paid for in advance through the HUD Closing Agent. However, if advance payment is not made and HUD allows the closing to occur after the deadline closing date, funds will be retained by HUD at closing to cover the extension fee. A $150 extension fee is charged for each 15 -day extension period or portion thereof for properties with a bid amount of $50,000 and under. A $300 extension fee is charged for each 15 -day extension period or portion thereof for properties with a bid amount of over $50,000. The extension request and fee payment must be made in accord with the procedures set forth in the Broker Guide. Credit for unused portions wil given at closing at the rate of $10.00 per day for $150 extension fees and $20 pe for $300 extension fees. If closing does not occur, the entire fee ($150 or $300) L be forfeited to HUD. Back -up Offers The HUD office may retain back -up offers from those offers received during the established bid period where the bidders indicated on the HUD 9548, Sales Contract, a desire to have the bid held as a back -up offer, (Item 10). If the first offer fails to close, the other offers may be considered. No offer submitted after the established period will be accepted as a back -up offer. Closing and Financing Costs _ HUD will pay the actual amount of closing and financing costs up to the amount listed in Line 5 of the Sales Contract (HUD- 9548), which may be a maximum of 58 of the bid amount. In no event may Line 5 funds be used to pay a closer for services on behalf of the lender. For FHA - insured financing: Closing costs must be reasonable and customary according to standard FHA policy. Line 5 funds may not be used to pay a closer for services on behalf of the lender nor for an appraisal since the executed sales contract is the FHA conditional commitment. You should note that HUD -paid closing costs will affect the mortgage amount and down - payment required. WELLS In accord with Minnesota law HUD has provided all known information concerning the existence and status of wells on the subject property. It is possible that abandoned wells may exist unknown to HUD..and its acents. Purchaser acknnwlpdaPC Chic anA ­­_ all responsibility for sealing abandoned wells to meet provisions of the Groundwater Protection Act. I certify that I have been given a copy of Seller's Policies and agree that they are incorporated into the Sales contract. Signature of Purchaser(s) Date Signature of Purchaser(s) Date January, 1992 Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION APPROVING THE PURCHASE OF REAL PROPERTY AT 6715 AND 6719 HUMBOLDT AVENUE NORTH AND AUTHORIZING EXECUTION OF PURCHASE AGREEMENT WHEREAS, the Board of Commissioners of the Economic Development Authority in and for the City of Brooklyn Center, Minnesota (EDA) has determined that it is in the best interests of the EDA and the public to acquire certain real estate located at 6715 and 6719 Humboldt Avenue North in the City of Brooklyn Center (the Property); and WHEREAS, the EDA staff has negotiated a proposed purchase agreement between the Department of Housing and Urban Development (HUD), the owner of the Property, and the EDA. NOW, THEREFORE, BE IT RESOLVED: 1. The Board of Commissioners hereby approves the purchase by the EDA of the properties located at 6715 and 6719 Humboldt Avenue North in the City of Brooklyn Center, legally described on the attached Exhibit A, for the purchase price of $36,900 for the real property at 6715 Humboldt Avenue North in Brooklyn Center and $13,500 for the real property at 6719 Humboldt Avenue North in Brooklyn Center, and subject to the terms and conditions of the purchase agreement between HUD and the EDA. 2. The President and Secretary are authorized and directed to execute the purchase agreement between HUD and the EDA for the purchase of the Property and all other documents necessary to the completion of the purchase transaction. Date Todd Paulson, 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.