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HomeMy WebLinkAbout2016 06-13 EDAPEDA MEETING City of Brooklyn Center June 13, 2016 AGENDA 1.Call to Order —The EDA requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet, including EDA (Economic Development Authority), is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 2.Roll Call 3.Approval of Agenda and Consent Agenda —The following items are considered to be routine by the Economic Development Authority (EDA) and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in which event the item will be removed from the consent agenda and considered at the end of Commission Consideration Items. a. Approval of Minutes 1. May 23, 2016 - Regular Session 4.Commission Consideration Items a.Resolution Authorizing the Acquisition of Property to Facilitate Transportation Improvements and Redevelopment Opportunities within the Brooklyn Boulevard Corridor (5401, 5407 & 5415 Brooklyn Boulevard) Requested Council Action: —Motion to adopt resolution. b.Resolution Authorizing the Acquisition of Property to Facilitate Transportation Improvements and Redevelopment Opportunities within the Brooklyn Boulevard Corridor (6939 Brooklyn Boulevard) Requested Council Action: —Motion to adopt resolution. 5. Adjournment EDA Agenda Item Noe 3a MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEP[N AND THE STATE OF MINNESOTA REGULAR SESSION MAY 23, 2016 CITY HALL - COUNCIL CHAMBERS 1.CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Tim Willson at 7:49 p.m. 2.ROLL CALL President Tim Willson and Commissioners April Graves, Kris Lawrence-Anderson, Lin Myszkowski, and Dan Ryan. Also present were Executive Director Curt Boganey, Interim Assistant to the City Manager Reggie Edwards, Director of Business and Development Gary Eitel, Planning and Zoning Specialist Tim Benetti, Deputy Director of Building and Community Standards Jesse Anderson, City Attorney Troy Gilchrist, and Michaela Kujawa-Daniels, TimeSaver Off Site Secretarial, Inc. 3.APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Ryan moved and Commissioner Lawrence-Anderson seconded to approve the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES May 9, 2016 - Regular Session Motion passed unanimously. 4.COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2016-14 APPROVING A CONTRACT FOR PRIVATE DEVELOPMENT (BROOKLYN CENTER HOTEL GROUP, LLC, EMBASSY SUITES PHASE II) Director of Business and Development Gary Eitel introduced the item, discussed the history, and stated the purpose of the proposed resolution approving a contract for private development (Brooklyn Center Hotel Group, LLC, Embassy Suites Phase II). 05/23/16 4- DRAFT President Willson asked if there is an estimated value of the property upon completion. Mr. Eitel replied the value will be approximately $5.6 million dollars. He also noted the value will most likely increase as hospitality fees are generated. Commissioner Ryan asked when they intend to be up and running. Mr. Eitel stated they want to open in 2017 and plan to be fully established by the time the 2018 Super Bowl is hosted here in Minnesota. Commissioner Ryan stated the hotel will be a great addition to the City as well as noted how ideal the location is being so close to the Earle Brown Heritage Center. President Willson stated he read that 1 million people are expected to be attending the 2018 Super Bowl in Minnesota, so he expects the hotel would want to be fully operational by that date. Mr. Eitel invited John Sheehan, representing the developer, Brooklyn Center Hotel Group, LLC, to say a few words and answer questions of the Commissioners. Mr. Sheehan stated they have wanted to complete a project like this for several years and the recession in 2008 put a damper on their plans. He stated right now is the right time and they have the right place. He noted having the most powerful hotel chains, Marriott and Hilton partnered on this project, indicates it will be very successful. He commented on the question President Willson previously asked regarding the estimated value of the property, stating hotel values are strange due to the updates they undergo every few years, so the value is constantly changing. He noted this hotel will cost approximately $9 million dollars to build. He also noted they built a hotel almost identical to the one they are starting in Brooklyn Center last year in Rochester. He invited them to stop by and see it if they are interested in the outcome. Commissioner Graves asked how many possible jobs the hotel may create. Mr. Sheehan stated at approximately 70% occupancy rate they would expect to have about 12 - 15 jobs being created for the hotel. He noted this number will fluctuate based on the amount of business being generated at the hotel ultimately. Commissioner Ryan moved and Commissioner Graves seconded to adopt RESOLUTION NO. 2016-14 Approving a Contract for Private Development (Brooklyn Center Hotel Group, LLC, Embassy Suites Phase II). Motion passed unanimously. 5. ADJOURNMENT Commissioner Lawrence-Anderson moved and Commissioner Graves seconded adjournment of the Economic Development Authority meeting at 8:12 p.m. Motion passed unanimously. 05/23/16 -2- DRAFT EPA Agenda Item No. 4a EDA ITEM MEMORANDUM DATE: June 13, 2016 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business & Development Y SUBJECT: Resolution Authorizing the Acquisition of Property to Facilitate Transportation Improvements and Redevelopment Opportunities within the Brooklyn Boulevard Corridor (5401, 5407 & 5415 Brooklyn Boulevard) Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of Resolution Authorizing the Acquisition of Property to Facilitate Transportation Improvements and Redevelopment Opportunities within the Brooklyn Boulevard Corridor (5401, 5407 & 5415 Brooklyn Boulevard) Background: The Brooklyn Boulevard Corridor Study identified improvements to the 55thi Ave. and Brooklyn Boulevard intersection which included the acquisition of additional right of way to facilitate a realignment of the frontage road to provide an increased separation of its intersection from Brooklyn Boulevard and improved lane distance for vehicles stacking for western leg of the Brooklyn Boulevard intersection. Attached is an exhibit from the Brooklyn Boulevard Corridor Study identifying these improvements and the proposed acquisition of former Northport Clinic site, 5415 Brooklyn Boulevard and the adjacent residential lot at 5407 Brooklyn Boulevard. The ability to also acquire the adjacent residential lot at 5401 Brooklyn Boulevard, a large residential lot (23,190 sf.) enables the EDA to consider future redevelopment options for this parcel and remnants from 5407 Brooklyn Boulevard. Purchase Agreement: The City Attorney has prepared the attached purchase agreement for 5415, 5407, and 5401 Brooklyn Boulevard for $825,000. The negotiated price was based on the following consideration: - 5415 Brooklyn Boulevard (former Northport Clinic) has a lot area of 27,818 sf1 with a 2016 assessed valuation of $560,000. - 5407 Brooklyn Boulevard (a rental property built in 1954) has a lot area of 16,466 sf. with a 2016 assessed valuation of $110,000. - 5401 Brooklyn Boulevard (a rental property built in 1949) has a lot area of 23,190 sf. with a 2016 assessed valuation of $118,000. Mission: Ensuring an attractive, clean, safe, inclusive coinnuinit' that en/maces the quality of l?fe foi' all people and preserves the public trust I I I N*4 UhYA I 4hYA (I) 1I 111Jh'A I - The combined 2016 assessed valuation, which is based on 2015 sales data, is 95.5% of the negotiated sales price and considered to be representative of a fair market value for the 3 properties. There are no pending or levied special assessments and the taxes due and payable in 2016 will be prorated based on the closing date. The EDA would be assigned the current month-month leases (5401 Brooklyn Boulevard has a monthly rent of $1,035 and 5407 Brooklyn Boulevard has a monthly rent of $950) and has the option of continuing to lease the properties to the current tenants pending scheduling of the 2018 Brooklyn Boulevard Improvements. Dan Wilson, Wilson Development Services, a relocation specialist that has been used by the FDA to ensure compliance with all State and Federal relocation requirements will be retained to assist in the termination of the current leases and relocation of the tenants. It is the EDA' s intention to have the former Northport Clinic and its parking lot removed in 2016. Budget Issues: The costs for the acquisition, removal of the structures, and lot restoration, are proposed to be funded by the following sources: 1. The City's Capital Improvement Fund would be used for the acquisition, demolition, and lot restoration of 5415 Brooklyn Boulevard (former Northport Clinic) 2, The TIF 3 Housing Fund would be used for the acquisition, demolition, lol restoration, and future redevelopment of 5401 & 5407 Brooklyn Boulevard. Strategic Priorities: Key Infrastructure Investments Targeted Redevelopment Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for al/people and preserves fliepu bile trust Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO.__________ RESOLUTION AUTHORIZING THE ACQUISITION OF PROPERTY TO FACILITATE TRANSPORTATION IMPROVEMENTS AND REDEVELOPMENT OPPORTUNITES WITHIN THE BROOKLYN BOULEVARD COORIDOR (5401, 5407 & 5415 Brooklyn Boulevard) WHEREAS, on May 28, 2013, the City Council adopted Resolution No. 2013-60, a Resolution Adopting the Brooklyn Boulevard Corridor Study Plan As a Planning and Development Guide for Brooklyn Boulevard from 1-94 to 49th Avenue.; and WHEREAS, on December 7, 2015, the City Council adopted Resolution No. 2015-184, a Resolution Approving the 2016-2030 Capital Improvements Plan which identified the southern portion of the Brooklyn Boulevard Improvements, including the 55th Avenue intersection improvements, as a 2018 Project; and WHERESA, on May 9, 2016, the City Council adopted Resolution No. 2016-71, a Resolution Establishing Improvement Project No. 2018-05, Brooklyn Boulevard Reconstruction and Streetscape Improvements, 49 t" to Bass Lake Road and adopting the 2016 Capital Program; and WHEREAS, the Brooklyn Center Economic Development Authority, Minnesota has hereto established Housing Development and Redevelopment Project No. 1, and has established the Tax Increment Financing District No. 3 and adopted a Tax Increment Financing Plan which includes the following objectives: a)To enhance the tax base of the City; b)To provide maximum opportunity, consistent with the needs of the City, for development by private enterprise; c)To better utilize vacant or underdeveloped land; d)To attract new businesses; e) To acquire blighted or deteriorated residential property for rehabilitation or clearance and redevelopment; and f) To develop housing opportunities for market segments underserved by the City including housing for the disabled and elderly; and EDA RESOLUTION NO. WHEREAS, the real properties located at 5401, 5407, and 5415 Brooklyn Boulevard, Brooklyn Center, Minnesota (the "Subject Properties") are a voluntary sale by the property owner; and WHEREAS, City staff have negotiated a purchase agreement for the purchase by the EDA of the Subject Properties in the amount of $825,000 of which $560,000 is proposed to be funded by the Capital Improvements Program and $265,000 to be funded by the Tax Increment District 3 Housing Fund; and NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of Brooklyn Center, Minnesota as follows: The purchase agreement for the Subject Properties is hereby approved. 2. The President and Executive Director of the EDA are authorized and directed to execute the purchase agreement, and the Executive Director is authorized and directed to take all such further steps as are necessary to effect the terms thereof. June 13, 2016 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. _____ • ,.,' ,II,'. ;;I IIIlJ /; I 1 7 --- -&-•• '•j; JL - 4 \\\\\\\\ fLY I- • 1t_41ii, \\\\\\\W' rr- I I1 b \\\\\\ \\\\\' I - - _______ ;ii \\\\\:\ — \? \ • x------- r'j4 -. \\\\\ \\\4; •' \ ' _•-:----%j\ ___ ;r:\\ 1i V a _. \\\\\\ \\\\\\ — — ,\ \1 1 ,--q ' __-9r1 1 : ç \\ \\\' , \ 4 r\ 4II \I1\ 4' - t • = [----- . .c--* •i! :t';r • I - 1 IL T\ I_-_JL- T4 -. _W1 f - '- yi LAO- All IV - xv 7j Ir lie I1 [flir1r I1rT1IJL LLL LI I SEE INSET S REGTflri TPAI!1 L 1 # -i-JIP1"aARBYS '0 BROP"nAlCAF I...nw PURCHASE AGREEMENT 1.PARTIES. This Purchase Agreement ("Purchase Agreement") is entered into this 1st day of June, 2016, by and between Karen T. Urn and Duane L. Urn, as Trustees of the Karen T. Urn Revocable Trust dated January 21, 2014 ("Trustees for Trust 1"); and Duane L. Urn and Karen T. Urn, as Trustees of the Duane L. Urn Revocable Trust dated January 21, 2014 ("Trustees for Trust 2"), together ("Trustees" and "Seller"); and the Economic Development Authority of Brooklyn Center, Minnesota, a public body corporate and politic under the laws of the State of Minnesota ("Buyer"). 2.SALE OF PROPERTY. The Trustees for Trustees for Trust 1 are the fee owners of that certain real estate located at 5407 Brooklyn Boulevard, Brooklyn Center, MN 55429, Hennepin County Minnesota and legally described as Parcel 3 below and the Trustees for Trust 2 are the fee owners of that certain real estate located at 5401 and 5415 Brooklyn Boulevard. Brooklyn Center, MN 55429, Hennepin County, Minnesota and legally described as Parcels 1 and 2 below; and the (the "Property"): Parcel 1: The North 95 feet of the South 230 feet of the North 755 feet of Lots 34 and 35, Auditor's Subdivision Number 216, Hennepin County, Minnesota. Parcel 2: That part of the South 150 feet of the North 450 feet of Lots 34 and 35, lying south of the following described line: Commencing at the Southeast corner of Lot 1, Block 3, Balfanys Northport 1St Addition, thence Northeasterly along the extension of the southeasterly line of said lot distant 256.84 feet; thence northeasterly on a tangential curve to the right having a radius of 438.97 feet, a distance of 196.64 feet; thence easterly along a line tangent to said curve to the east line of Lot 35, all in Auditor's Subdivision Number 216, Hennepin County, Minnesota. Parcel 3: South 75 feet of the North 525 feet of Lot 34, and the South 75 feet of the North 525 feet of Lot 35 as measured on a line parallel with the West line of said Lot 35, all in Auditors Subdivision Number 216, Hennepin County, Minnesota. 3. OFFER/ACCEPTANCE. In consideration of the mutual agreements herein contained, Buyer offers and agrees to purchase and Seller agrees to sell and hereby grants to Buyer the exclusive right to purchase the Property and all improvements and fixtures thereon, together with all appurtenances, including, but not limited to, plant, shrubs, trees, and grass. 4.PERSONAL PROPERTY INCLUDED IN SALE: The items of personal property and fixtures owned by Seller and currently located on the Property included in the Purchase Price are listed on Exhibit A. 5.PURCHASE PRICE AND TERMS: A.PURCHASE PRICE: The purchase price for Parcel 1 is $130,000.00, the purchase price for Parcel 2 is $565,000.00, and the purchase price for Parcel 3 is $130,000.00, for a total Purchase Price ("Purchase Price") for the Property of Eight Hundred Thousand and No/lOOths Dollars ($825,000.00). B.TERMS: (1)EARNEST MONEY. The sum of Zero Dollars ($0.00) Earnest Money ("Earnest Money") shall be paid by the Buyer to the Seller, the receipt of which is hereby acknowledged. (2)PAYMENT OF PURCHASE PRICE: Buyer agrees to pay by check or wire transfer on the Closing Date ("Closing") the full Purchase Price according to the terms of this Agreement. (3) DEED/MARKETABLE TITLE: Subject to performance by Buyer, Seller agrees to execute and deliver a Warranty Deed conveying marketable title to the Property to Buyer, subject only to the following exceptions: a.Building and zoning laws, ordinances, state and federal regulations. b.Reservation of minerals or mineral rights to the State of Minnesota, if any. C. Public utility and drainage easements of record which will not interfere with Buyer's intended use of the Property. d.Title defects waived by Buyer pursuant to paragraph 12 below. e.The rights of Tenants leasing Parcels 1 and 3 ("Tenants"; see, also, Section 14 below). 2 6. DOCUMENTS TO BE DELIVERED AT OR PRIOR TO CLOSING BY SELLER. A.Prior to Closing, Seller shall provide a Statement of Leases, Rents and Security Deposits, if any, as to Parcels 1 and 3, in substantially the forms attached hereto as Exhibit B. B.Trustees Deed from Trustees of Trust 2 conveying Parcels 1 and 2, free and clear of encumbrances subject only to the exceptions stated in Section 5B (i.e., items 3a, 3b, 3c, 3d, and 3e in said Section). C.Certificate of Trust from Trustees of Trust 2 pursuant to Minn. Stat. Sec. 501C.1013. D.Affidavit of Trustee from Trustees of Trust 2 pursuant to Minn. Stat. Sec 501C. 10 14. E.Standard form of Seller's Affidavit from Trustees of Trust 2 as to Parcels land 2. F.Well disclosure certificate, if required for Parcels 1 and 2, or, if there is no well on Parcels 1 or 2, the Warranty Deed must include the following statement: "The Seller certifies that the seller does not know of any wells on the described real property" G.Trustees Deed from Trustees of Trust 1 conveying Parcel 3, free and clear of encumbrances subject only to the exceptions stated in Section SB (i.e., items 3a, 3b, 3c, 3d, and 3e in said Section). H.Certificate of Trust from Trustees of Trust 1 pursuant to Minn. Stat. Sec. 501C.1013. I.Affidavit of Trustees of Trust 1 pursuant to Minn. Stat. Sec 501C.1014. J.Standard form of Seller's Affidavit from Trustees of Trust 1 as to Parcel 3. K.Well Disclosure Certificate as to Parcel 3. L.Assignment of Leases and Rents. M. Such other documents as may be reasonably required by Buyer's title examiner or title insurance company. 7. CLOSING DATE. The closing of the sale of the Property shall take place within 60 days after the date of this Agreement ("Closing") or at an earlier date as mutually agreed by the parties. The closing shall take place at the offices of Economic Development Authority of Brooklyn Center, 6301 Shingle Creek Parkway, Brooklyn Center, MN 55430. 8.ENVIRONMENTAL INSPECTION. Buyer and Seller have conducted a joint inspection of the Property and have agreed that there are no items, materials (including, without limitation, any hazardous materials) located on the Property that Seller is obligated to remove from the Property. 9.LEAD. If the dwelling structure on the Property was constructed prior to 1978, a lead paint disclosure accompanies this Agreement as Exhibit C. 3 10. REAL ESTATE TAXES. A.Seller will pay at or prior to Closing all real estate taxes due and payable in 2015 and prior years on the Property, including any delinquent real estate taxes. B.Real estate taxes due and payable in 2016 shall be prorated as of Closing between Buyer and Seller. If the amount of real estate taxes due and payable in 2016 is not available on the date of closing, the pro-rated taxes will be based on the amount of real estate taxes due and payable in 2015. 11. SPECIAL ASSESSMENTS. A.Special Assessments due and payable in 2016 shall be prorated as of Closing between Buyer and Seller. B.Buyer shall pay special assessments pending or assessed in 2017 and thereafter. C.As of the date of this Agreement, Seller has not received a notice of hearing for a new public improvement project from any governmental assessing authority, the costs of which project may be assessed against the Property. If a notice of pending special assessment is issued after the date of this Agreement and on or before Closing, Buyer shall assume payment of all of any such special assessments and Seller shall provide for payment on date of closing of none of any such special assessments. D.Notwithstanding any other provision of this Agreement, Seller shall at all times be responsible to pay special assessments, if any, for delinquent sewer or water bills, removal of diseased trees prior to the date of this Agreement, snow removal, or other current services provided to the Property by the assessing authority while the Seller is in possession of the Property. 12. MARKETABILITY OF TITLE. Upon execution of this Purchase Agreement, Seller shall deliver all abstracts of title and copies of any title insurance policies covering the Property to Buyer. Buyer shall, at its expense and within a reasonable time after Seller's acceptance of this Agreement, obtain a commitment for title insurance or other evidence satisfactory to Buyer ("Title Evidence") for the Property or examine the abstract of title. Buyer shall have ten (10) business days after receipt of a fully executed purchase agreement and the Title Evidence to examine the same and to deliver written objections to title, if any, to Seller. Seller shall have until the Closing (or such later date as the parties may agree upon) to make title marketable, at the Seller's expense. In the event that title to the Property cannot be made marketable or is not made marketable by the Seller by the Closing, then, at the option of the Buyer, this Agreement shall be null and void and all Earnest Money will be returned to Buyer, if any. 13.CLOSING COSTS AND RELATED ITEMS. Seller will pay: (a) any deed transfer taxes and conservation fees and recording fees for all instruments required to establish marketable title in Seller; (b) any deed transfer taxes and conservation fees required to enable the Buyer to record its deeds from Seller under this Agreement, Buyer shall be responsible for the payment of the following costs: (a) recording fees required to enable the Buyer to record its deeds from Seller under this Agreement (b) the title search, name search and assessment search fees and other fees incurred in preparation of the Commitment for title insurance or other Title Evidence, and title insurance premium, if any; and (c) any closing fee charged by the title insurance or other closing agent, if any, utilized to close the transaction contemplated by this Agreement. Each party shall be responsible for its own attorneys' fees and costs. 14.ASSIGNMENT OF LEASES. At Closing Seller will assign to Buyer, and Buyer will accept from Seller, all of Seller's rights and obligations under the present lease arrangements with the Tenants residing at Parcels I and 3. Buyer and Seller shall prorate between them the rent payments for Parcels 1 and 3 made for the month in which the Closing occurs to the date of Closing. Buyer agrees to honor and perform all of the obligations and fulfill all of the responsibilities of the landlord under said lease arrangements from and after the date of Closing. 15.POSSESSION/CONDITION OF PROPERTY. Seller shall deliver possession of the Property to Buyer immediately after Closing. Buyer and Seller have conducted a joint inspection of the Property and acknowledge that there is no personal property located at Parcel 2 that Buyer is obligated to remove from said Parcel 2. Any furniture, fixtures, equipment or other personal property remaining at the Parcel 2 as of Closing shall be deemed the property of Buyer and may be used by Buyer or disposed of by Buyer as Buyer sees fit. Seller represents that Seller does not own any of the personal property, except as listed on Exhibit A, on Parcels 1 and 3 and to Seller's knowledge any such personal property on Parcels 1 or 3 is owned by the Tenant occupying that Parcel. 16.DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM. Seller discloses that there is not to Seller's knowledge an individual sewage treatment system on or serving the Property. If there is an individual sewage treatment system on or serving the Property, Seller discloses that the system is not in use. 17. WELL DISCLOSURE. Seller discloses that there may have been wells on or serving the Property that may need to be located and sealed by a licensed well contractor. Buyer agrees to pay for the cost of locating and sealing the wells. 5 18.SELLER'S WARRANTIES. Seller warrants that buildings, if any, are entirely within the boundary lines of the Property. Seller warrants that there is a right of access to the Property from a public right-of-way. Seller warrants that there has been no labor or material furnished to the Property for which payment has not been made, excluding only any labor or material that may have been contracted for by the Tenants at Parcels 1 or 3. Seller warrants he has not been informed of, and has no knowledge, of any such Tenant- acquired labor or material being done for or at Parcels 1 or 3. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the Property. Seller has good and marketable simple title interest to the Property (subject only to the exceptions stated in Section 5B (i.e., items 3a, 3b, 3c, 3d, and 3e in said Section) and no consents or approvals from any third parties are required. Seller will not enter into a lease for the Property after the date of this Agreement. Seller represents that the Parcel 2 is vacant and that Parcels 1 and 3 are occupied by Tenants pursuant to verbal lease agreements. Seller agrees to pay all charges for sewer, water, electric, gas, rubbish removal and cable television incurred for service to the Property prior to Closing. These warranties shall survive the Closing of this transaction. 19.RELOCATION BENEFITS. Seller acknowledges that the Seller initiated negotiations with Buyer for the transaction contemplated by this purchase agreement, and that this transaction is not made under threat of condemnation by Buyer. Seller represents that Parcel 2 is vacant and unoccupied. Seller agrees to waive any and all relocation benefits, assistance and services to which Seller might otherwise be eligible. Seller agrees to provide to Buyer at Closing an executed waiver of relocation benefits that might be payable to Seller in substantially the form of the attached as Exhibit D. The foregoing release does not extend to, and does not release any right of any Tenants occupying Parcels 1 or 3 to receive, any relocation benefits the Tenants at Parcels 1 or 3 may be entitled to. 20.NO MERGER OF REPRESENTATIONS, WARRANTIES. All representations and warranties contained in this Agreement shall not be merged into any instruments or conveyance delivered at Closing, and the parties shall be bound accordingly. 21.ENTIRE AGREEMENT; AMENDMENTS. The Exhibits to this Agreement are part of this Agreement. This Agreement constitutes the entire agreement between the parties to this Agreement, and no other agreement prior to this Purchase Agreement or contemporaneous herewith shall be effective except as expressly set forth or incorporated herein. Any purported amendment shall not be effective unless it shall be set forth in writing and executed by both parties or their respective successors or assigns. 22. BINDING EFFECT; ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors and assigns. Buyer shall not assign its rights and interest hereunder without prior notice to Seller. 6 23.NOTICE. Any notice, demand, request or other communication which may or shall be given or served by the parties shall be deemed to have been given or served on the date the same is deposited in the United States Mail, registered or certified, postage prepaid and addressed as follows: SELLER: Duane Urn and Karen T. Urn 4401 Avondale Road Golden Valley, MN 55416 With copy to ATTORNEY FOR SELLER: Henningson & Snoxell, Ltd. Attn: James Snoxell 6900 Wedgwood Road N. #200 Maple Grove, MN 55311 BUYER: Economic Development Authority of Brooklyn Center Attn: Gary Eitel 6301 Shingle Creek Parkway Brooklyn Center, MN 55430-2113 With copy to ATTORNEY FOR BUYER: Kennedy & Graven, Chartered Attn: Troy Gilchrist 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 24.BROKER COMMISSIONS. Buyer and Seller each represents and warrants to each other that there is no broker involved in this transaction with whom either has negotiated or to whom the representing party has agreed to pay a broker commission or finder's fee in connection with negotiations for purchase or sale of the Property. 25. SPECIFIC PERFORMANCE. This Agreement may be specifically enforced by the parties, provided that any action for specific enforcement is brought within six months after the date of the alleged breach. This paragraph is not intended to create an exclusive remedy for breach of this agreement; the parties reserve all other remedies available at law or in equity. (Signatures follow on the next page.) 7 IN WITNESS WHEREOF, the parties have executed this agreement as of the date written above. SELLER Karen T. Urn, as Trustee of the Karen T. Urn Revocable Trust dated January 21, 2014 Duane L. Orn, as Trustee of the Karen T. Urn Revocable Trust dated January 21, 2014 Karen T. Urn, as Trustee of the Duane L. Urn Revocable Trust dated January 21, 2014 Duane L. Urn, as Trustee of the Duane L. Urn Revocable Trust dated January 21, 2014 Economic Development Authority of Brooklyn Center, Minnesota By: Its: President By: Its: Executive Director 8 EXHIBIT A PERSONAL PROPERTY INCLUDED IN SALE None. EXHIBIT B STATEMENTS AS TO LEASES, RENTS AND SECURITY DEPOSITS Parcel 1 STATE OF MINNESOTA) COUNTY OF HENNEPIN) The undersigned, Duane L. Urn and Karen T. Urn, as Trustees of the Duane L. Urn Revocable Trust dated January 21, 2014 ("Trustees for Trust 2") and Joel Anderson and Ronald Bellfield ("5401 Tenant") state as follows: 1.The Trustees of Trust 2 are the fee owners of that certain real estate located at 5401 Brooklyn Boulevard, Brooklyn Center, MN 55429, Hennepin County, Minnesota and legally described as follows (the "Property"): The North 95 feet of the South 230 feet of the North 755 feet of Lots 34 and 35, Auditor's Subdivision Number 216, Hennepin County, Minnesota. 2.That the Property is occupied by Carlatte Bellfield and Ronald Bellfield ("5401 Tenant") pursuant to a verbal lease entered into between Trustees for Trust 2 and 5401 Tenant on or about July 1, 2006. 3.That the Security Deposit received on July 1, 2006 from 5401 Tenant is $930.00, and has accrued interest in the amount of $93.00 as of July 1, 2016, with a per diem of $0.0254. 4.That the tenancy is month to month. 5.That rent is due on the first of each month in the amount of $1,035.00. 6.That the rent is current as of the date hereof. 7. That additional terms of the Lease follows: None. Dated this day of ,2016 Trustees for Trust 2 (Seller/Landlord): 5401 Tenant (Tenant): Karen T. Urn, Trustee of the Duane L. Urn Carlatte Bellfield Revocable Trust dated January 21, 2014 Duane L. Urn, as Trustee of the Duane L. Urn Ronald Bellfield Revocable Trust dated January 21, 2014 10 EXHIBIT B STATEMENTS AS TO LEASES, RENTS AND SECUIUTY DEPOSITS Parcel 3 STATE OF MINNESOTA) COUNTY OF HENNEPIN) The undersigned, Duane L. Urn and Karen T. Urn, as Trustees of the Karen T. Urn Revocable Trust dated January 21, 2014 ("Trustees for Trust 1") and Joel Anderson ("5407 Tenant") state as follows: 1.The Trustees of Trust 1 are the fee owners of that certain real estate located at 5407 Brooklyn Boulevard, Brooklyn Center, MN 55429, Hennepin County, Minnesota and legally described as follows (the "Property"): South 75 feet of the North 525 feet of Lot 34, and the South 75 feet of the North 525 feet of Lot 35 as measured on a line parallel with the West line of said Lot 35, all in Auditors Subdivision Number 216, Hennepin County, Minnesota. 2.That the Property is occupied by Joel Anderson ("5407 Tenant") pursuant to a verbal lease entered into between Trustees for Trust 2 and 5407 Tenant on or about July 1, 1994. 3.That the Security Deposit received on July 1, 1994 from 5407 Tenant is $675.00, and has accrued interest in the amount of $148.50 as of July 1, 2016, with a per diem of $0.01 85. 4.That the tenancy is month to month. 5.That rent is due on the first of each month in the amount of $950.00. 6.That the rent is current as of the date hereof. 7. That additional terms of the Lease follows: None. Dated this day of ,2016 Trustees for Trust 1 (Seller/Landlord): 5407 Tenant (Tenant): Karen T. Urn, Trustee of the Karen T. Urn Joel Anderson Revocable Trust dated January 21, 2014 Duane L. Urn, as Trustee of the Karen T. Urn Revocable Trust dated January 21, 2014 11 EXHIBIT C LEAD PAINT DISCLOSURE See the Lead Paint Addendum for Housing Constructed Before 1978 and the therein referenced EPA pamphlet Protect Your Family From Lead Paint in Your Home that following on unnumbered pages. 12 a.AePespemrOrrtt.i1 (es;000t/ LEAD PAft4T ADDENDUM FOR HOUSING CONSTRUCTED BEFORE 1975 ©c -tsrzoss i .ruesre sees cerer wear, vase. rues ; teases saeaee s eseeirel p erewr_asewr Sthneeres Sale 5Athiisa 25033 Tnis adjendum is a continuation mi -the Purchssa between KTDmand Dusr.et_Om.anTraeleal dated- eomteTrsl dated' itt' and 25 Sellers, mr/n 6 9 10 12 13 15 17 15 20 25 26 27 25 29 so 31 34 35 37 35 39 40 4-1 42 43 44 15 46 45 45 50 51 52 53 54 0) 56 57 55 59 60 6! 62 63 65 66 Si 65 69 70 71 72 73 prouy_rty located al or desoibad an LEAD WAPJ4INO STATEIeIENT Everj purchaser of any interest in residential real property on which a residential dwelling v/as built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may piece young children at risk of developing lead poisoning. Lead poisoning in young children rray produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioralproblems, and impaired memory. Lead poisoning also poses a particular risk to pregnant woman. The seller of any interest in residential real property is required to provide the buyer with any information on Iead-baed paint hazards from risk assessments or inspections in the srrlleris possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase. LEAD PAINT INSPECTION CONTINGENCY Buyer shall have 10 days from the signing of this Agreement to conducts risk assessment or inspect/on tar the presence of lead- based paint and lead-based paint hazards and to give seller the inspector or risk assess ment report and a list of repairs required by buyer to correct problems set out in the report. (intact lead-based paint that is in good condition is not necessarily a hazard. See EPA pamphlet Protect Your Family From Lead in Your Home for more information.) lithe report discloses problems seller shalt have seven (7) days after receipt of the report and list to elect in writing whether to correct the problems prior to closing. If seller elects to make the correctiors,saller shall provide buyer prior to closing wit'n certificetion from a risk assessor orinapectton demonstrating that the problems have been corrected. If seller does not elect to make the corrections, buyarshatl have three (3) days to electto take the property in its 'as iof condition as to problems select in the report, or this purchase agreement is vo/d. Buyer may waive in writing the rights contained in this contingency at any time. Seller's Disclosure (s) Presence of lead-based paint or lead-based paint hazards (check (i'l or (t/) below): (i)FXJ lead-based paint or lead-based paint hazards are present in the housing (expisin) Structures as the s-jbject property were constructed before 1978 so Sellers assume there are lead-based paint or lead-based paint hazards present. (ii)fl Seller has no knowledge of lead-based painter lead-based paint hazards in the housing. (b) Records and reports available to seller (check (i) or (t/) below): (i)Seller has provided buyerwith all records and reports in sellers possession or reasonably obtainable by seller pertaining to lead-based paint and lead-based paint Hazards in the housing (list documents below). (ii)Seller has no reports or records pertaining to lead-based painter lead-based paint hazards in the housing. Buyer's Acknowledgment (initial) (c) - Buyer has received copies of all irtfomiation listed at (b)W above. (d) - Buyer has received the pamphlet. Protect Your Family from Lead in Your Home, en EPA publication available at 'swzecs.00vllead/oubsflesdodte.odf. (a) - — Buyer has (check (i) or (ii) below): received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead-based paint and lead-based paint hazards; or, waives the opportunity to conduct a risk assessment or inspecton for the presence of lead- based paint and lead-based paint hazards. Agent's Acknowledgment (initial) (f Agent has informed seller of ache/s obligations under 42 USC. 4852d and is aware of agents responsibility to ensure compliance. Certification of Accuracy Thet/oiowino part/es have -ed t formation above and certify, to the beat of their knowledge, that the information they have oroided js'(nie and soc - 7 /Trustees of the rn Revocable Trust date Purchaser Economic Development Authority of B.C. data 0 LV/1M/ Seller Trustees of Duane L Orn Revocable Trust date Purchaser date Listing broker I agent date Selling broker! agent date LEAjD PAiNT ADDENOUM FOR HOUSING CONSTRUCTED BEFORE 1978 P2 See Protect Your Family From Lead in your Home phsnphIet accompanying this Exhibit Are You Planning to Buy or Rent a Home Bulk Before 19787 Did you know that many homes built before 1978 have lead-based paint? Lead from paint, chips, and dust can pose serious health hazards. Read this entire brochu-re to learn: • How lead gets into the body • About health effects of lead • What you can do to protect your family • Where to go for more information Before renting or buying a pre-1978 home or apartment, federal law requires: Sellers must disclose known information on lead-based paint or lead- based paint hazards before selling a house. Real estate sales contracts must include a specific warning statement about lead-based paint. Buyers have up to 10 days to check for lead. Landlords must disclose known information on lead-based paint and lead-based paint hazards before leases take effect. Leases must include a specific warning statement about lead-based paint. If undertaking renovations, repairs, or painting (RRP) projects in your pre-197& home or-apartment: Read EPA's pamphlet, The Lead-Safe Certified Guide to Renovate Right, to learn about the lead-safe work practices that contractors are required to follow when working in your home (see page 12). Sm.p1e Steps to Protect Your Famiy from Lead Hazards If you think your home has lead-based paint: Don't try to remove lead-based paint yourself. Always keep painted surfaces in good condition to minimize deterioration. Get your home checked for lead hazards, Find a certified inspector or risk assessor at epa.gov/lead. Talkto your landlord about fixing surfaces with peeling or chipping paint. Regularly clean floors, window sills, and other surfaces. Take precautions to avoid exposure to lead dust when remodeling. • When renovating, repairing, or painting, hire only EPA- or state- approved Lead-Safe certified renovation firms. Before buying, renting, or renovating your home, have it checked for lead-based paint. Consult your health care provider, about testing your children for lead, Your pediatrician can check for lead with a simple blood test. Wash children's hands, bottles, pacifiers, and toys often. • Make sure children avoid fatty (or high fat) foods and eat nutritious meals high in iron and calcium. Remove shoes or wipe soil off shoes before entering your house. 1 Lead Gets tnto the Bady in Many Ways Adults and children can get lead into their bodies if they: Breathe in lead dust (especially during activities such as renovations, repairs, or painting that disturb painted surfaces). Swallow lead dustthat has settled on food, food preparation surfaces, and other places. Eat paint chips or soil that contains lead. Lead is especially dangerous to children under the age of 6. At this age, children's brains and nervous systems are more sensitive to the damaging effects of lead. Children's growing bodies absorb more lead. Babies and young children often put their hands and other objects in their mouths. These objects can have lead dust on them. Women of childbearing age should know that lead is dangerous to a developing fetus. Women with a high lead level in their system before or during pregnancy risk exposing the fetus to lead through the placenta during fetal development. 2 r,in $,r,, Damage HeaFth Effects of Lead- Lead affects the body in many ways. It is important to know that even exposure to low levels of lead can severely harm children. In children, exposure to lead can cause: Nervous system and kidney damage Learning disabilities, attention deficit disorder, and decreased intelligence Speech, language, and behavior problems Poor muscle coordination Decreased muscle and bone growth Hearing damage While low-lead exposure is most common, exposure to high amounts of lead can have 3T 5 devastating effects on children, including seizures, unconsciousness, and, in some cases, death. Although children are especially susceptible to lead exposure, lead can be dangerous for adults, too. In adults, exposure to lead can cause: Harm to a developing fetus Increased chance of high blood pressure during pregnancy Fertility problems (in men and women) High blood pressure Digestive problems Nerve disorders • Memory and concentration problems Muscle and joint pain 3 Check Your Famy for Lead Get your children and home tested if you thinkyour home has lead. Children's blood lead levels tend to increase rapid lyfrom 6 to 12 months of age, and tend to peak at 18to 24 months of age. Consult -your doctor for advice on testing your children. A simple blood test can detect lead. Blood lead tests are usually recommended for: Children at ages 1 and 2 Children or other family members who have been exposed to high levels of lead • Children who should be tested under your state or local health screening plan Your doctor can explain what the test results mean and if more testing will be needed. 4 Where Lead-Based Paint Is Found In general, the older your home or childcare facility, the more likely it has lead-based paint) Many homes, including private, federally-assisted, federally- owned housing, and childcare facilities built before 1978 have lead-based paint In 1978, the federal government banned consumer uses of lead-containing paint? Learn how to determine if paint is lead-based paint on page 7. Lead can be found: • In homes and childcare facilities in the city, country, or suburbs, • In private and public single-family homes and apartments, • On surfaces inside and outside of the house, and In soil around a home. (Soil can pick up lead from exterior paint or other sources, such as past use of leaded gas in cars.) Learn more about where lead is found at epa.gov/lead. 1 "Lead-based paint" is currently defined by the federal government as paint with lead levels greatrthan or equal to 1.0 milligram per square centimeter (mg/cm), or more than 0.5% by weight. 2 "Lead-containing paint" is currently defined by the federal government as lead in new dried paint in excess of 90 parts per million (ppm) by weight. 5 Identifyg Lead-Based Paint and Lead-Basad Pant Hazards Deteriorating lead-based paint (peeling, chipping, chalking, cracking, or damaged paint) is a hazard and needs immediate attention. Lead-based paint may also be a hazard when found on surfaces that children can chew or that get a lot of wear and tear, such as: On windows and window sills Doors and door frames Stairs, railings, banisters, and porches Lead-based paint is usually not a hazard if it is in good condition and if it is not on an impact orfriction surface like a window. Lead dust can form when lead-based paint is scraped, sanded, or heated. Lead dust also forms when painted surfaces containing lead bump or rub together. Lead paint chips and dust can get on surfaces and objects that people touch. Settled lead dust can reenter the air when the home is vacuumed or swept, or when people walk through it. EPA currently defines the following levels of lead in dust as hazardous: 40 micrograms per square foot (pg/—,'L -) and higher for floors, including carpeted floors 250 pg/ft 2 and higher for interior window sills Lead in soil can be a hazard when children play in bare soil or when people bring soil into the house on their shoes, EPA currently defines the folloWing levels of lead in soil as hazardous: 400 parts per million (ppm) and higher in play areas of bare soil 1,200 ppm (average) and higher in bare soil in the remainder of the yard Remember, lead from paint chips—which you can see—and lead dust—which you may not be able to see—both can be hazards. The only way to find out if paint, dust, or soil lead hazards exist is to test for thern.The next page describes how to do this. Checking Your Home for Lead You can get your home tested for lead in several different ways: A lead-based paint inspection tells you if your home has lead- based paint and where it is located. It won't tell you whether your home currently has lead hazards.A trained and certified testing professional, called a lead-based paint inspector, will conduct a paint inspection using methods, such as: - Portable x-ray fluorescence (XRF) machine Lab tests of paint samples A risk assessment tells you if your home currently has any lead hazards from lead in paint, dust, or soil. It also tells you what actions to take to address any hazards. A trained and certified testing professional, called a risk assessor, will: * Sample paint that is deteriorated on doors, windows, floors, stairs, and walls • Sample dust near painted surfaces and sample bare soil in the yard • Get lab tests of paint, dust, and soil samples • A combination inspection and risk assessment tells you if your home has any lead-based paint and if your home has any lead hazards, and where both are located. Be sure to read the report provided to you after your inspection or risk assessment is completed, and ask questions about anything you do not understand. 7 Checkhig Your Home for Lead, conthuied In preparing for renovation, repair, or painting work in a pre-1 978 home, Lead-Safe Certified renovators (see page 12) may: • Take paint chip samples to determine if lead-based paint is present in the area planned for renovation and send them to an EPA-recognized lead lab for analysis. In housing receiving federal assistance, the person collecting these samples must be a certified lead-based paint inspector or risk assessor • Use EPA-recognized tests kits to determine if lead-based paint is absent (but not in housing receiving federal assistance) Presume that lead-based paint is present and use lead-safe work practices There are state and federal programs in place to ensure that testing is done safely, reliably, and effectively. Contact your state or local agency for more information, visit epa.gov/lead, or call 1 -8O-424-LEAD (5323) for a list of contacts in your area? Hearing- or speech-challenged individuals may access this number through —1 by calling the Federal Relay Service at 1-800-877-8399. What You Can Do Now to Protect Your Famy if you suspect that your house has lead-based paint hazards, you can take some immediate steps to reduce your family's risk: If you rent, notify your landlord of peeling or chipping paint. Keep painted surfaces clean and Free of dust. Clean floors, window frames, window sills, and other surfaces weekly. Use a mop or sponge with warm water and a general all-purpose cleaner. (Remember: never mix ammonia and bleach products together because they can form a dangerous gas.) Carefully clean up paint chips immediately without creating dust. Thoroughly rinse sponges and mop heads often during cleaning of dirty or dusty areas, and again afterward. • Wash your hands and your children's hands often, especially before they eat and before nap time and bed time. • Keep play areas clean. Wash bottles, pacifiers, toys, and stuffed animals regularly. Keep children from chewing window sills or other painted surfaces, or eating soil. When renovating, repairing, or painting, hire only EPA- or state- approved Lead-Safe Certified renovation firms (see page 12). • Clean or remove shoes before entering your home to avoid tracking in lead from soil. • Make sure children avoid fatty (or high fat) foods and eat nutritious meals high in iron and calcium. Children with good diets absorb less lead. Reducing Lead Hazards Disturbing lead-based paint or removing lead improperly can increase the hazard to your family by spreading even more lead dust around the house. In addition to day-to-day cleaning and good nutrition, you can temporarily reduce lead-based paint hazards by taking actions, such as repairing damaged painted surfaces and planting grass to cover lead- contaminated soil. These actions are not permanent solutions and will need ongoing attention. You can minimize exposure to lead when renovating, repairing, or painting by hiring an EPA- or state- certified renovator who is trained in the use of lead-safe work practices. If you are a do-it-yourselfer, learn how to use lead—safe work practices in your home. To remove lead hazards permanently, you should hire a certified lead abatement contractor. Abatement (or permanent hazard elimination) methods include removing, sealftg, or enclosing lead-based paint with special materials. Just painting over the hazard with regular paint is not permanent control. Always use a certified contractor who is trained to address lead hazards safely. • Hire a Lead-Safe Certified firm (see page 12) to perform renovation, repair, or painting (RRP) projects that disturb painted surfaces. • To correct lead hazards permanently, hire a certified lead abatement professional. This will ensure your contractor knows how to work safely and has the proper equipment to clean up thoroughly. Certified contractors will employ qualified workers and follow strict safety rules as set by their state or by the federal government. 10 Reducing Lead hazards, continued If your home has had lead abatement work done or if the housing is receiving federal assistance, once the work is completed, dust cleanup activities must be conducted until clearance testing indicates that lead dust levels are below the following levels: * 40 micrograms per square foot (pg/ft 2 ) for floors, including carpeted floors • 250 ig/ft 2 for interior windows sills 400 Jg/ft2 for window troughs For help in locating certified lead abatement professionals in your area, call your state or local agency (see pages 14 and 15), or visit epagov/1ead, or call 1-800-424-LF-AD. 11 Renovating, RemodeUg, or Reparrg (RRP) a Home with Lead-aed Paint If you hire a contractor to conduct renovation, repair, or painting (RRP) projects in your pre-1978 home or chiidcare facility (such as pre-school and kindergarten), your contractor must: Be a Lead-Safe Certified firm approved by EPA or an EPA-authorized state program Use qualified trained individuals (Lead-Safe Certified renovators) who follow specific lead-safe work practices to prevent lead contamination Provide a copy of EPA's lead hazard information document, The Lead-Safe certified Guide to Renovate Right RRP contractors working in pre-1978 homes and childcare facilities must follow lead-safe work practices that: Contain the work area.The area must be contained so that dust and debris do not escape from the work area. Warning signs must be put up, and plastic or other impermeable material and tape must be used. Avoid renovation methods that generate large amounts of lead-contaminated dust. Some methods generate so much lead- contaminated dust that their use is prohibited. They are: Open-flame burning or torching Sanding, grinding, planing, needle gunning, or blasting with power tools and equipment not equipped with a shroud and HEPA vacuum attachment and Using a heat gun at temperatures greater than 11 00'F • Clean up thoroughly, The work area should be cleaned up daily. When all the work is done, the area must be cleaned up using special cleaning methods. • Dispose of waste properly. Collect and seal waste in a heavy duty bag or sheeting. When transported, ensure that waste is contained to prevent release of dust and debris. To learn more about EPA's requirements for RRP projects visit epa.gov/getleadsafe, or read The Lead-Safe certified Guide to 12 Renovate Right. Other Sources of Lead While paint, dust, and soil are the most common sources of lead, other lead sources also exist: • Drinking water. Your home might have plumbing with lead or lead solder. You cannot see, smell, or taste lead, and boiling your water will not get rid of lead. If you think your plumbing might contain lead: Use only cold water for drinking and cooking. • Run water for 15 to 30 seconds before drinking it, especially if you have not used your water for a few hours. Call your local health department or water supplier to find out about testing your water, or visit epa.govliead for EPA's lead in drinking water information. Lead smelters or other industries that release lead into the air. • Your job. If you work with lead, you could bring it home on your body or clothes. Shower and change clothes before coming home. Launder your work clothes separately from the rest of your family's clothes. Hobbies that use lead, such as making pottery or stained glass, or refinishing furniture. Call your local health department for information about hobbies that may use lead. • Old toys and furniture may have been painted with lead-containing paint. Older toys and other children's products may have parts that contain lead.4 Food and liquids cooked or stored in lead crystal or lead-glazed pottery or porcelain may contain lead. Folk remedies, such as "greta't and "azarcon," used to treat an upset stomach. In 1978, the federal government banned toys, other children's products, and furniture with lead-containing paint (16 CFR 1303).. In 2008, the federal government banned lead in most children's products. The federal government currentlybans lead in excess of 100 ppm by weight in most children's products (76 FR 44463). 13 For More nformtio The National Lead Information CenterLearn how to protect children from lead poisoning and get other information about lead hazards on the Web at epa.gov/lead and hud.gov/lead, or call 1-800-424-LEAD (5323). EPA's Safe Drinking Water Hotline For information about lead in drinking water, call 1-800-426-4791, or visit epa.gov/lead for information about lead in drinking water. Consumer Product Safety Commission (CPSC) Hotline For information on lead in toys and other consumer products, or to report an unsafe consumer product or a product-related injury, call 1-800-638-2772, or visit CPSC's website at cpsc.goV or saferproductS.goV . State and Local Health and Environmental Agencies Some states, tribes, and cities have their own rules related to lead- based paint. Check with your local agency to see which laws apply to you. Most agencies can also provide information on finding a lead abatement firm in your area, and on possible sources of financial aid for reducing lead hazards. Receive up-to-date address and phone information for your state or local contacts on the Web at epa.gov!lead, or contact the National Lead Information Center at 1-800-424-LEAD. Hearing- or speech-challenged individuals may access any of the phone numbers in this brochure through TTY by calling the toll- free Federal Relay Service at '1-8-00-B77-8339 14 U. S. Environmental Protectfor, Agency (EPA) Regional Offices The mission of EPA is to protect human health and the environment Your Regional EPA Office can provide further information regarding regulations and lead protection programs. Region 1 (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island, Vermont) Regional Lead Contact U.S. EPA Region 1 5 Post Office Square Suite 100, DES 05-4 Boston, MA 02109-3912 (888) 372-7341 Region 2 (New Jersey, New York, Puerto Rico, Virgin Islands) Regional Lead Contact U.S, EPA Region 2 2890 Wood bridge Avenue Building 205, Mail Stop 225 Edison, NJ 08837-3679 (732)321-6671 Region 3 (Delaware, Maryland, Pennsylvania, Virginia, DC, West Vi rginia) Regional Lead Contact U.S. EPA Region 3 1650 Arch Street Philadelphia, PA 19103 (215) 814-2088 Region 4 (Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina,Tennessee) Regional Lead Co4tect U.S. EPA Region 4 AFCTower, 12th Floor, Air, Pesticides &Toxics 61 Forsyth Street, SW Atlanta, GA 30303 (404) 562-8998 Region (Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin) Regional Lead Contact U.S. EPA Region S (DT-8J) 77 West Jackson Boulevard Chicago, IL 60604-3666 (312) 886-7836 Region 6 (Arkansas, Louisiana, New Mexico Oklahoma, Texas, and 66 Tribes) Regional Lead Contact U.S. EPA Region 1445 Ross Avenue, 12th Floor Dallas,TX 75202-2733 (214) 655-2704 Region 7 (Iowa, Kansas, Missouri, Nebraska Regional Lead Contact US. EPA Region 7 11201 Renner Blvd. WWPDIr0PE Lenexa, KS 66219 (800) 223-0425 Region )Colorado, Montana, North Dakota, South Dakota, Utah, Wyoming) Regional Lead Contact U.S. EPA Region 1595 Wynkoop St. Denver, CO 80202 (303) 312-6966 Region 9 (Arizona, California, Hawaii, Nevada) Regional Lead Contact U.S. EPA Region 9 (CMO-4-2) 75 Hawthorne Street San Frandsco, CA 94105 (415) 947-4280 Region 10 (Alaska, Idaho, Oregon, Washington) Regional Lead Contact U.S. EPA Region 10 Solid Waste &Toxics Unit (WCM-1 28) 1200 Sixth Avenue, Suite 900 Seattle, WA 98101 (206) 553-1200 iJ Consumer Product Safety Commsson (CPSC) The CPSC protects the public against unreasonable risk of injury Irom consumer products through education, safety standards activities, and enforcement. Contact CPSC for further information regarding consumer product safety and regulations cPsc 4330 East West Highway Bethesda, MD 20814-4421 1-800-638-2772 cpsc.gov or saferproducts.gov U. S. Department of Housing and Urban Devebpment (HUD) HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. Contact HUD's Office of Healthy Homes and Lead Hazard Control for further information regarding the Lead Safe Housing Rule, which protects families in pre-1978 assisted housing, and for the lead hazard control and research grant programs. HUD 451 Seventh Street, SW, Room 8236 Washington, DC 20410-3000 (202) 402-7698 hudgov/offices!leadi This document is in the public domain. It may be produced by an individual or organization without permission Information provided in this booklet is based upon current scientific and technical understanding of the issues presented and is reilective of the jurisdictional boundaries established by the statutes governing the co-authoring agencies. Following the advice given will not necessarily provide complete protection in -Bit situations or against all health hazards that can be caused by lead exposure. U. S. EPA Washington DC 20460 EPA-747-K-1 2-001 U , Bethesda laiD 20814 September 2013 U. S. HUD Washington DC 20410 16 IpORThNT! Lead From PaIitr Dust, and 5cR in and Around Your Home Can Be Dangerous If Not Managed Property Children under 6 years old are most at risk for lead poisoning in your home. Lead exposure can harm young children and babies even before they are born. Homes, schools, and child care facilities built before 1978 are likely to contain lead-based paint. Even children who seem healthy may have dangerous levels of lead in their bodies. Disturbing surfaces with lead-based paint or removing lead-based paint improperly can increase the danger to your family. People can get lead into their bodies by breathing or swallowing lead dust, or by eating soil or paint chips containing lead. • People have many options for reducing lead hazards. Generally, lead-based paint that is in good condition is not a hazard (see page 10). EXHIBIT D WAIVER OF RELOCATION BENEFITS See the Waiver of Relocation Benefits following on unnumbered pages. 13 AGREEMENT REGARDING WAIVER OF RELOCATION BENEFITS THIS AGREEMENT REGARDING WAIVER OF RELOCATION BENEFITS (this "Agreement") is made as of the day of, 2016, by and between Karen T. Orn and Duane L. Orn, as Trustees of the Karen T. Orn Revocable Trust dated January 21, 2014 ("Trustees for Trust 1"); and Duane L. Om and Karen T. Om, as Trustees of the Duane L. Om Revocable Trust dated January 21, 2014 ("Trustees for Trust 2"), together ("Trustees" and "Seller") and the Economic Development Authority of Brooklyn Center, Minnesota, a public body corporate and politic under the laws of the State of Minnesota ("Purchaser"). RECITALS A.Purchaser has entered into a Purchase Agreement with Seller under which Seller has agreed to convey to Purchaser the property legally described on Exhibit A (the "Property") and Purchaser has agreed to purchase the Property. B.Seller acknowledges that it sought and received advice of legal counsel, and has been specifically advised by such counsel, as to relocation benefits that may be available to Seller in connection with the Property under the federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 as amended, and similar provisions under Minnesota law (together, the "Act"). C. Seller and Purchaser desire to enter into this Agreement to confirm their understanding that the Purchaser's performance of the Purchase Agreement will satisfy in full any claim for any relocation benefits and/or other relocation costs due or payable to Seller, whether pursuant to the Act or otherwise, NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto do hereby agree as follows: 1.Seller acknowledges that the Purchaser's performance of the terms and conditions of the Commercial Purchase Agreement, satisfies in full any amounts for relocation assistance or relocation benefits that Purchaser otherwise may be obligated to pay to Seller under the Act or any other federal or state law, and that performance of the Commercial Purchase Agreement will constitute full compensation due Seller for all claims of any description against Purchaser under the Act, including but not limited to attorneys' fees, relocation benefits, and any damages to the going concern or goodwill of any business located on the Property. 2.Accordingly, Seller disclaims and waives any right to receive relocation benefits or payments under the Act or any other applicable federal or state law with respect to the Property. Seller and Purchaser agree that notwithstanding the foregoing, Seller's disclaimer and waiver of relocation benefits or payments does not extend to, and does not release any right of, any tenants occupying either Parcel 1 or Parcel 3 as those Parcels are described in Exhibit A hereto, to receive any relocation benefits any of said tenants may be entitled to. 1 477010v1 BR305-136 3.In signing this waiver, Seller acknowledges that no threats have been made by Purchaser to Seller or any representative of Seller (either expressly or by implication) that if Seller did not sell the Property, the Property may be acquired by the Purchaser under the power of eminent domain. Seller acknowledges that Seller has been informed in writing that Purchaser would not acquire the Property unless the parties reached a mutually satisfactory agreement. 4.Seller acknowledges that it has freely waived such rights of its own volition. 5.Seller acknowledges that it has waived such rights with full knowledge of the specific relocation benefits to which it would otherwise be entitled. 6.This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. IN WITNESS WHEREOF, this Waiver of Relocation Benefits Agreement has been executed by the parties hereto as of the day and year first above written. SELLER Karen T. Orn, as Trustee of the Karen T. Om Revocable Trust dated January 21, 2014 Duane L. Om, as Trustee of the Karen T. Om Revocable Trust dated January 21, 2014 Karen T. Orn, as Trustee of the Duane L.. Om Revocable Trust dated January 21, 2014 Duane L. Orn, as Trustee of the Duane L. Om Revocable Trust dated January 21, 2014 BUYER Economic Development Authority of Brooklyn Center, Minnesota By: Its: President By: Its: Executive Director 2 477010v1 BR305-136 EXHIBIT A TO AGREEMENT REGARDING WAIVER OF RELOCATION BENEFITS LEGAL DESCRIPTION OF PROPERTY Parcel 1: The North 95 feet of the South 230 feet of the North 755 feet of Lots 34 and 35, Auditor's Subdivision Number 216, Hennepin County, Minnesota. Parcel 2: That part of the South 150 feet of the North 450 feet of Lots 34 and 35, lying south of the following described line: Commencing at the Southeast corner of Lot 1, Block 3, Balfanys Northport 1 " Addition, thence Northeasterly along the extension of the southeasterly line of said lot distant 256.84 feet; thence northeasterly on a tangential curve to the right having a radius of 438.97 feet, a distance of 196.64 feet; thence easterly along a line tangent to said curve to the east line of Lot 35, all in Auditor's Subdivision Number 216, Hennepin County, Minnesota. Parcel 3: South 75 feet of the North 525 feet of Lot 34, and the South 75 feet of the North 525 feet of Lot 35 as measured on a line parallel with the West line of said Lot 35, all in Auditors Subdivision Number 216, Hennepin County, Minnesota. A-i 477010v1 BR305-136 Resolution Authorizing the Acquisition of Property to Facilitate Transportation Improvements and Redevelopment Opportunities within the Brooklyn Boulevard Corridor 5401, 5407 & 5415 Brooklyn Boulevard EDA Agenda Item No. 4a 06-13-2016 Purchase Agreement: •The City Attorney has prepared the attached purchase agreement for 5415, 5407, and 5401 Brooklyn Boulevard for $825,000. •The negotiated price was based on the following consideration: •5415 Brooklyn Boulevard (former Northport Clinic) has a lot area of 27,818 sf. with a 2016 assessed valuation of $560,000. •5407 Brooklyn Boulevard (a rental property built in 1954) has a lot area of 16,466 sf. with a 2016 assessed valuation of $110,000. •5401 Brooklyn Boulevard (a rental property built in 1949) has a lot area of 23,190 sf. with a 2016 assessed valuation of $118,000. •The combined 2016 assessed valuation, which is based on 2015 sales data, is 95.5% of the negotiated sales price and considered to be representative of a fair market value for the 3 properties. •There are no pending or levied special assessments and the taxes due and payable in 2016 will be prorated based on the closing date. •The EDA would be assigned the current month-month leases (5401 Brooklyn Boulevard has a monthly rent of $1,035 and 5407 Brooklyn Boulevard has a monthly rent of $950) and has the option of continuing to lease the properties to the current tenants pending scheduling of the 2018 Brooklyn Boulevard Improvements. •Dan Wilson, Wilson Development Services, a relocation specialist that has been used by the EDA to ensure compliance with all State and Federal relocation requirements will be retained to assist in the termination of the current leases and relocation of the tenants. •It is the EDA’s intention to have the former Northport Clinic and its parking lot removed in 2016. Budget Issues: •The costs for the acquisition, removal of the structures, and lot restoration, are proposed to be funded by the following sources: •The City’s Capital Improvement Fund would be used for the acquisition, demolition, and lot restoration of 5415 Brooklyn Boulevard (former Northport Clinic) •The TIF 3 Housing Fund would be used for the acquisition, demolition, lot restoration, and future redevelopment of 5401 & 5407 Brooklyn Boulevard. Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of Resolution Authorizing the Acquisition of Property to Facilitate Transportation Improvements and Redevelopment Opportunities within the Brooklyn Boulevard Corridor (5401, 5407 & 5415 Brooklyn Boulevard) EDA Agenda Item No 4b EDA IIT]EM MEMORANDUM DATE: June 13, 2016 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business & Development SUBJECT: Resolution Authorizing the Acquisition of Property to Facilitate Neighborhood Improvements and Redevelopment Opportunities within the Brooklyn Boulevard Corridor (6939 Brooklyn Boulevard) Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of the Resolution Authorizing the Acquisition of Property to Facilitate Neighborhood Improvements and Redevelopment Opportunities within the Brooklyn Boulevard Corridor, located at 6939 Brooklyn Boulevard. Background: 6939 Brooklyn Boulevard is a corner triangular shaped lot having a lot area of 11,260 sf1 that was developed in 1953 with a single family residence with an attached two-car garage. The property is a double fronted lot with 145-feet of frontage on Brooklyn Boulevard and 184 feet of frontage on Lee Ave. The property is zoned C-i Service/Office, and identified on the 2030 Comprehensive Plan as Office/Service Business/Retail Business. This area is in an area of transition with commercial uses to the east and south: Boulevard Market, a commercial PUD on the east side of Brooklyn Boulevard was developed in 2002-2004 as a component of the Brooklyn Boulevard Redevelopment and Streetscaping Improvement Project that includes a Culvers restaurant, Super-America gas & convenience station, and a multi-tenant strip center. - Slim's Pizza, the 2012 renovation of the former Starbuck Coffee shop, which also included the acquisition and removal of an adjacent blighted property to facilitate an expanded parking lot; and - The adjacent properties include two vacant lots identified as 6933 Brooklyn Boulevard, and 6927 Brooklyn Boulevard, both acquired by the EDA in 1994 and 2013, respectively. Attached for reference is an area map of the 69th Ave. & Brooklyn Boulevard commercial intersection and an aerial photo of the northwest quadrant of the intersection with property ownerships and lot sizes identified. Mission: Ensuring an attractive, clean, safe, inclusive co!,iinhinity that en Ii (in CCS the quality of life for all people ai!(lpJeserres the public trust I I Mk'A L'A I K'A [0) 1I USJhAI The subject property has been rented since 2005, with the current 2 year rental license expiring in December, 2016. City Staff have had several conversations with property owners in this area and have expressed the following: the voluntary sales/acquisition of property in this area is consistent with the Brooklyn Boulevard corridor studies; and - the City's Comprehensive Plans have recognized the significance of the removal of single family residences and their driveway from this highly visible and traveled roadway. The significance of this acquisition is that it aligns with the intersection of 70th Avenue North, and could potentially accommodate a commercial access drive to serve these combined properties under a future commercial redevelopment plan. Additionally, the assemblage of these Brooklyn Boulevard properties may also enable a future mid-density residential redevelopment option, with the inclusion of the two single-family residential lots to the west. Purchase Agreement: The purchase price of $158,000 was negotiated based on the property owner's 2002 acquisition price of $155,000 and the 2015 Median Sales Price reported through the month of November, 2015 by the Minneapolis Area Association of Realtors of $154,950. The purchase agreement includes the standard language relative to the allocation of taxes payable in 2016. There are no special assessments levied or pending on this property. Dan Wilson, Wilson Development Services, a relocation specialist that has been used by the EDA to ensure compliance with all State and Federal relocation requirements will be retained to assist in this acquisition. It is the EDA' s intention to have the structure and driveway entrance removed and the land combined with the adjacent EDA parcels for future redevelopment. Budget Issues: The costs for the acquisition, removal of the structures, and lot restoration, are proposed to be funded by TIF 3 as an eligible pooled expenditure. Strategic Priorities: Targeted Redevelopment Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves flue public trust Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 2016 - _______ RESOLUTION AUTHORIZING THE ACQUISITION OF PROPERTY TO FACILITATE NEIGHBORHOOD IMPROVEMENTS AND REDEVELOPMENT OPPORTUNITIES WITHIN THE BROOKLYN BOULEVARD CORRIDOR (6939 BROOKLYN BOULEVARD) WHEREAS, the Brooklyn Center Economic Development Authority, Minnesota has hereto established Housing Development and Redevelopment Project No. 1, and has established the Tax Increment Financing District No. 3 and adopted a Tax Increment Financing Plan which includes the following objectives: a) To enhance the tax base of the City; b) To provide maximum opportunity, consistent with the needs of the City, for development by private enterprise; c) To better utilize vacant or underdeveloped land; d) To attract new businesses; e) To acquire blighted or deteriorated residential property for rehabilitation or clearance and redevelopment; and f) To develop housing opportunities for market segments underserved by the City including housing for the disabled and elderly; and WHEREAS, the real property located at 6939 Brooklyn Boulevard, Brooklyn Center, Minnesota (the "Subject Property") is a voluntary sale by the property owner; and WHEREAS, City staff have negotiated a purchase agreement for the purchase by the EDA of the Subject Property in the amount of $158,000; and WHEREAS, the EDA has determined that acquisition of the Subject Property on the terms and conditions set forth in the proposed purchase agreement are consistent with the goals and objectives of the Brooklyn Boulevard Streetscape Amenities Study, the City’s Comprehensive Plans, the Objectives of Tax Increment District No. 3 and is in the best interests of the City of Brooklyn Center and its citizens. EDA RESOLUTION NO._______________ NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of Brooklyn Center, Minnesota as follows: 1. The purchase agreement for the Subject Property is hereby approved. 2. The President and Executive Director of the EDA are authorized and directed to execute the purchase agreement, and the Executive Director is authorized and directed to take all such further steps as are necessary to effect the terms thereof. June 13, 2016 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. 1 1 7022 •^A _______ I miV^ 'I, Nit.^r , , : I . ^:^. 7025) ew : s. \ \ \ .- ,7015.& -e -•-' -'\. .- -.. .. . •:.t-1 '\ \ \ __70 H AVE N \ \ VE.N 445 . - - -- - --=---- -\ ...- .-. I —1Alt i 6945 1 3939 69iN gn firL kj5927TO OUT 6924). 692iI j?\\K 6930 I rF F \ \ '!:iIL 1g Pr qzellCLIl T,^ 6^ 7^ 69THA EN - ---- ---.,-------1 L - - . -_----- ______ I L ISAM-151 _11T 1 \\ r_1 / E - 6837 119 _:__ 11 1 F -' ' a- 6800 - I '\ 4 I i _____ . ) ..-. 6848' - \ r-i -_.- 6845 44 7FZ-W? 6815 I / I a I-PP RM ' \ \\ 111 AV f . ,- Iw. rrl9 ts') \\ - Ii3 I ' \ \\ la t'. k- 1 1fl1 - - - . -- \ \\6700 I --Y i - ----- - --- -- - -I -.. 4501 3?3I, 9I' :Of C C 6900 BLOCK BROOKLYN BOULEVARD = City Owned Parcels PURCHASE AGREEMENT 1.PARTIES. This Purchase Agreement ("Purchase Agreement") is entered into this day of 2016, by and between Jacob L. Yanish, a single person ("Seller") and the Economic Development Authority of Brooklyn Center, Minnesota, a public body corporate and politic under the laws of the State of Minnesota ("Buyer"). 2.SALE OF PROPERTY. Seller is the owner of that certain real estate ("Property") located at 6939 Brooklyn Blvd. Brooklyn Center, MN 55429, Hennepin County, Minnesota and legally described as follows: All that part of Lot 1, which lies Southwesterly of a line run parallel with and distant 42 feet Southwesterly of the following described line: Beginning at a point on the South line of Section 27, Township 119, Range 21, distant 1607.8 feet West of the South Quarter corner thereof; thence run Northwesterly at an angle of 53 degrees 20 seconds 37.5 minutes with said South Section line for 1000 feet and there terminating, Block 1, Sunset Manor, according to the recorded plat thereof on file in the office of the Hennepin County Registrar of Titles. 3.OFFER/ACCEPTANCE. In consideration of the mutual agreements herein contained, Buyer offers and agrees to purchase and Seller agrees to sell and hereby grants to Buyer the exclusive right to purchase the Property and all improvements and fixtures thereon, together with all appurtenances, including, but not limited to, plant, shrubs, trees, and grass. 4.NO PERSONAL PROPERTY INCLUDED IN SALE: There are no items of personal property or fixtures owned by Seller and currently located on the Property included in the Purchase Price for purposes of this sale. 5. PURCHASE PRICE AND TERMS: A.PURCHASE PRICE: The total Purchase Price ("Purchase Price") for the Property is One Hundred Fifty Eight Thousand and No/lOOths Dollars ($158,000.00). B.TERMS: (1)EARNEST MONEY. The sum of Zero Dollars ($0.00) Earnest Money ("Earnest Money") shall be paid by the Buyer to the Seller, the receipt of which is hereby acknowledged. (2)BALANCE DUE SELLER: Buyer agrees to pay by check or wire transfer on the Closing Date ("Closing") any remaining Balance Due according to the terms of this Agreement. 479671v2 CBRBR3O5-139 (3) DEED/MARKETABLE TITLE: Subject to performance by Buyer, Seller agrees to execute and deliver a Warranty Deed conveying marketable title to the Property to Buyer, subject only to the following exceptions: a.Building and zoning laws, ordinances, state and federal regulations. b.Reservation of minerals or mineral rights to the State of Minnesota, if any. C. Public utility and drainage easements of record which will not interfere with Buyer's intended use of the Property. d. Title defects waived by Buyer pursuant to paragraph 12 below. 6. DOCUMENTS TO BE DELIVERED AT CLOSING BY SELLER. A.Warranty Deed free and clear of encumbrances subject only to the exceptions stated in 5B (3a, 3b, 3c and 3d). B.Standard form Affidavit of Seller. C.Well disclosure certificate, if required, or, if there is no well on the Property, the Warranty Deed must include the following statement: The Seller certifies that the seller does not know of any wells on the described real property". D.Such other documents as may be reasonably required by Buyer's title examiner or title insurance company. 7. CLOSING DATE. The closing of the sale of the Property shall take place within 60 days after the date of this Agreement ("Closing") or at an earlier date as mutually agreed by the parties. The closing shall take place at the offices of Economic Development Authority of Brooklyn Center, 6301 Shingle Creek Parkway, Brooklyn Center, MN 55430. 8.ENVIRONMENTAL INSPECTION. Seller, prior to vacation of the Property, shall remove all substances that, under state or federal law, must be disposed of at an approved disposal facility. This requirement does not apply to hazardous substances integrated into the building improvements (e.g., asbestos) or soil but applies only to movable equipment, supplies and materials that are located or stored on the Property. Buyer and Seller will conduct a joint inspection of the Property at a time to be mutually agreed upon prior to Closing for the purpose of identifying materials that must be removed by Seller. 9.LEAD. If the dwelling structure on the Property was constructed prior to 1978, a lead paint disclosure accompanies this Agreement. 479671v2 CBR BR305-139 2 10. REAL ESTATE TAXES. A.Seller will pay at or prior to Closing all real estate taxes due and payable in 2015 and prior years on the Property, including any delinquent real estate taxes. B.Real estate taxes due and payable in 2016 shall be prorated as of Closing between Buyer and Seller. 11. SPECIAL ASSESSMENTS. A.Seller shall pay on or prior to Closing the balance of all special assessments levied or pending. B.Seller shall pay any deferred real estate taxes or special assessments, payment of which is required as a result of the Closing of this sale. C.As of the date of this Agreement, Seller has not received a notice of hearing for a new public improvement project from any governmental assessing authority, the costs of which project may be assessed against the Property. If a notice of pending special assessment is issued after the date of this Agreement and on or before Closing, Buyer shall assume payment of all of any such special assessments and Seller shall provide for payment on date of closing of none of any such special assessments. D.Notwithstanding any other provision of this Agreement, Seller shall at all times be responsible to pay special assessments, if any, for delinquent sewer or water bills, removal of diseased trees prior to the date of this Agreement, snow removal, or other current services provided to the Property by the assessing authority while the Seller is in possession of the Property. 12.MARKETABILITY OF TITLE. Upon execution of this Purchase Agreement, Seller shall deliver all abstracts of title and copies of any title insurance policies covering the Property to Buyer. Buyer shall, at its expense and within a reasonable time after Seller's acceptance of this Agreement, obtain a commitment for title insurance or other evidence satisfactory to Buyer ("Title Evidence") for the Property or examine the abstract of title. Buyer shall have ten (10) business days after receipt of a fully executed purchase agreement and the Title Evidence to examine the same and to deliver written objections to title, if any, to Seller. Seller shall have until the Closing (or such later date as the parties may agree upon) to make title marketable, at the Seller's expense. In the event that title to the Property cannot be made marketable or is not made marketable by the Seller by the Closing, then, at the option of the Buyer, this Agreement shall be null and void and all Earnest Money will be returned to Buyer, if any. 13.CLOSING COSTS AND RELATED ITEMS. Seller will pay: (a) any deed transfer taxes and conservation fees and recording fees for all instruments required to establish marketable title in Seller; (b) any deed transfer taxes and conservation fees required to enable the Buyer to record its deeds from Seller under this Agreement, Buyer shall be responsible for 479671v2 CBR BR305-139 3 the payment of the following costs: (a) recording fees required to enable the Buyer to record its deeds from Seller under this Agreement (b) the title search, name search and assessment search fees and other fees incurred in preparation of the Commitment for title insurance or other Title Evidence, and title insurance premium, if any; and (c) any closing fee charged by the title insurance or other closing agent, if any, utilized to close the transaction contemplated by this Agreement. Each party shall be responsible for its own attorneys' fees and costs. 14.POSSESSION/CONDITION OF PROPERTY. Seller shall deliver possession of the Property to Buyer immediately after Closing. Seller shall remove all personal property from the Property prior to Closing. Any furniture, fixtures, equipment or other personal property remaining at the Property as of Closing shall be deemed the property of Buyer and may be used by Buyer or disposed of by Buyer as Buyer sees fit. Buyer and Seller will conduct a joint inspection of the Property at a time to be mutually agreed upon prior to Closing. 15.DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM. Seller discloses that there (is) (is not) an individual sewage treatment system on or serving the Property. If there is an individual sewage treatment system on or serving the Property, Seller discloses that the system (is) (is not) in use. In the event there is a sewage treatment system, a map of said location of the system is attached. 16.WELL DISCLOSURE. Seller discloses that there is/is not a well on or serving the Property. If a well is present, a well disclosure statement accompanies this agreement. 17.SELLER'S WARRANTIES. Seller warrants that buildings, if any, are entirely within the boundary lines of the Property. Seller warrants that there is a right of access to the Property from a public right-of-way. Seller warrants that there has been no labor or material furnished to the Property for which payment has not been made. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the Property. Seller has good and marketable simple title interest to the Property and no consents or approvals from any third parties are required. Seller will not enter into a lease after the date of this Agreement. Seller represents that the Property is vacant. Seller agrees to pay all charges for sewer, water, electric, gas, rubbish removal and cable television incurred prior to Closing. These warranties shall survive the Closing of this transaction. 18.RELOCATION BENEFITS. Seller acknowledges that the Seller initiated negotiations with Buyer for the transaction contemplated by this purchase agreement, and that this transaction is not made under threat of condemnation by Buyer. Seller agrees to waive any and all relocation benefits, assistance and services to which Seller might otherwise be eligible. Seller agrees to provide to Buyer at closing an executed waiver of relocation benefits in substantially the form of the attached Exhibit A. 19.NO MERGER OF REPRESENTATIONS, WARRANTIES. All representations and warranties contained in this Agreement shall not be merged into any instruments or conveyance delivered at Closing, and the parties shall be bound accordingly. 479671v2 CBR BR305-139 4 20.ENTIRE AGREEMENT; AMENDMENTS. This Agreement constitutes the entire agreement between the parties, and no other agreement prior to this Purchase Agreement or contemporaneous herewith shall be effective except as expressly set forth or incorporated herein. Any purported amendment shall not be effective unless it shall be set forth in writing and executed by both parties or their respective successors or assigns. 21.BINDING EFFECT; ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors and assigns. Buyer shall not assign its rights and interest hereunder without notice to Seller. 22.NOTICE. Any notice, demand, request or other communication which may or shall be given or served by the parties shall be deemed to have been given or served on the date the same is deposited in the United States Mail, registered or certified, postage prepaid and addressed as follows: SELLER: Jacob L. Yanish, 5608 Nevada Ave. N. Crystal, MN 55428 BUYER: Economic Development Authority of Brooklyn Center Attn: Gary Eitel 6301 Shingle Creek Parkway Brooklyn Center, MN 55430-2113 AGENT: Kennedy & Graven, Chartered Attn: Troy Gilchrist 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 23.BROKER COMMISSIONS. Buyer and Seller each represents and warrants to each other that there is no broker involved in this transaction with whom either has negotiated or to whom the representing party has agreed to pay a broker commission or finder's fee in connection with negotiations for purchase or sale of the Property. 24. SPECIFIC PERFORMANCE. This Agreement may be specifically enforced by the parties, provided that any action for specific enforcement is brought within six months after the date of the alleged breach. This paragraph is not intended to create an exclusive remedy for breach of this agreement; the parties reserve all other remedies available at law or in equity. 479671v2 CBR BR305-139 5 IN WITNESS WHEREOF, the parties have executed this agreement as of the date written above. SELLER By L J cob L. Yanish BUYER Economic Development Authority of Brooklyn Center, Minnesota By: Its: President By: Its: Executive Director 479671v2 CBR BR305-139 6 Agenda Item 4.b 06-13-2016 The purchase price of $158,000 was negotiated based on the property owner’s 2002 acquisition price of $155,000 and the 2015 Median Sales Price reported through the month of November, 2015 by the Minneapolis Area Association of Realtors of $154,950. The purchase agreement includes the standard language relative to the allocation of taxes payable in 2016. There are no special assessments levied or pending on this property. Dan Wilson, Wilson Development Services, a relocation specialist that has been used by the EDA to ensure compliance with all State and Federal relocation requirements will be retained to assist in this acquisition. It is the EDA’s intention to have the structure and driveway entrance removed and the land combined with the adjacent EDA parcels for future redevelopment. The costs for the acquisition, removal of the structures, and lot restoration, are proposed to be funded by TIF 3 as an eligible pooled expenditure. It is recommended that the Economic Development Authority consider approval/adoption of the Resolution Authorizing the Acquisition of Property to Facilitate Neighborhood Improvements and Redevelopment Opportunities within the Brooklyn Boulevard Corridor, located at 6939 Brooklyn Boulevard.