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HomeMy WebLinkAbout2017 08-14 EDAPa Al1 MakIM, Mol It EPA MEETING City of Brooklyn Center August 14, 2017 AGENDA 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 podium. 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. July 24, 2017 -Regular Session 4. Commission Consideration Items a.Resolution Calling for a Public Hearing Regarding the Sale of Land Located at 5315 James Avenue North Requested Commission Action: —Motion to adopt resolution. b.Resolution Calling for a Public Hearing Regarding the Sale of Land Located at 5301 James Avenue North Requested Commission Action: —Motion to adopt resolution. 5. Adjournment EDA Agndi Horn N0 3a 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 JULY 24, 2017 CITY HALL - COUNCIL CHAMBERS UyS The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Tim Willson at 7:50 p.m. 2.ROLL CALL President Tim Willson and Commissioners Marquita Butler, April Graves, Kris Lawrence Anderson, and Dan Ryan. Also present were Executive Director Curt Boganey, Deputy City Manager Reggie Edwards, Director of Business and Development Gary Eitel, Deputy Director of Building and Community Standards Jesse Anderson, City Attorney Troy Gilchrist, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. 3.APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Ryan moved and Commissioner Graves seconded to approve the Agenda and Consent Agenda, and the following item was approved: UDI1 1. July 10, 2017—Regular Session Motion passed unanimously. 4, COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 201708 APPROVING CONVEYANCE OF CERTAIN PROPERTY LOCATED AT 6330 CAMDEN AVENUE NORTH Director of Business and Development Gary Eitel introduced the item, discussed the history, and stated the purpose of the proposed resolution to cite EDA findings and determination that conveyance of the property to the buyer is in the public interest and will further the objectives of its general plan of economic development because it will increase the tax base in the City and serve as an impetus for further development. Notice was published in the official newspaper on July 13, 2017. Mr. Eitel described the project and displayed a graphic illustration of the proposed project, noting the Regal Theater site is located within Tax Increment Financing 07/24/17 -1- DRAFT District No. 3, which is scheduled to expire in 2021. The current assessed valuation of the Regal Theater and its northern parking area is approximately $7.2 million. The construction of the Topgolf facility is projected to exceed $20 million and provide 450 to 500 jobs. Commissioner Ryan moved and Commissioner Graves seconded to open the hearing. Motion passed unanimously. No one appeared to speak. Commissioner Lawrence-Anderson moved and Commissioner Butler seconded to close the hearing. Motion passed unanimously. Commissioner Graves moved and Commissioner Ryan seconded to adopt RESOLUTION NO. 2017-108 Approving Conveyance of Certain Property Located at 6630 Camden Avenue North. President Willson stated he is glad to see this new business coming, which is a destination facility, and that parking for Metro Transit will remain. Motion passed unanimously. Relay for Life Commissioner Ryan asked for a point of privilege to suspend the rules and allow a resident to make a brief announcement. President Willson agreed. Diane Sannes, resident, announced the Relay for Life that will be held on Friday at the Brooklyn Center High School and urged all to attend. Commissioner Ryan stated he and his wife, who is a cancer survivor, are both active with the Relay for Life. He also urged all to attend this great and inspiring event. Al IMIIU 1h'A I IIII Commissioner Ryan moved and Commissioner Graves seconded adjournment of the Economic Development Authority meeting at 8:02 p.m. Motion passed unanimously. 07/24/17 -2- DRAFT Agendn Item Ni r. EDA ]ITEM MEMORANDUM DATE: August 14, 2017 TO: Curt Boganey, City Mana1 FROM: Gary Eitel, Director of Business & Development SUBJECT: Resolution Calling for a Public Hearing Regarding the Sale of Land Located at 5315 James Avenue North. Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of a Resolution Calling for a Public Hearing Regarding the Sale of Land Located at 5315 James Avenue North. Background: On January 11, 2017, a fire at 5315 James Ave. N. resulted in extensive interior and exterior damage to this single family home, resulting in the structure being declared a hazardous building. Consideration of acquiring this property through the Remove & Rebuild Program was initially considered at the February 13, 2017 EDA Meeting and tabled until the March 27th EDA Meeting, at which time the EDA moved to approve Resolution No. 2017-04, Resolution Authorizing the Acquisition of Blighted Property in Connection with the Remove and Rebuild Program (5315 James Avenue North). Attached for reference is a copy of the EDA Resolution No. 2017-04 and March 27th .staff memorandum. On April 12, 2017, the property was acquired for $20,000 and on June 27thi the demolition and final grading/restoration of the lot were completed. Proposed Sales of 5315 James Avenue North Novak-Fleck, Inc. an experienced residential building with infill development and the EDA's Remove and Rebuild Program, successfully developing and marketing 6 EDA lots (5400 Bryant, 5800 Bryant, 5331 Morgan, 5538 Logan, 5645 Brooklyn Boulevard, and 6905 Camden ), has expressed an interest in acquiring 5315 and 5301 James Avenue North. The City Attorney has prepared the enclosed Purchase and Redevelopment Agreement, which includes the following components related to the EDA's sales of this vacant lot for an infill development of a new single family residence: The purchase price is $25,000. Mission: Ensuring an attractive, clean, safe, inclusive coInFnu,!ty that enhances the quality of life for all people and preserves the public (just o The buyer agrees that it will construct a new single family dwelling on the Property, intended for sale to a person or persons for residential occupancy (an Owner Occupant). o The minimum improvements shall consist of a split entry (look-out) house with two car garage having approximately 1140 sf. of finished floor area (foyer, 2-bedrooms, bathroom, kitchen, dining room, living room) on the main level and approximately 840 sf. floor area for future expansion area (bedroom, family room, and bath) and a utility/laundry room on the lower level and shall be constructed substantially in accordance with the plans on file in City Hall. o The minimum improvements must be substantially completed by September 15, 2018. Construction will be considered substantially complete when the final certificate of occupancy has been issued by the City of Brooklyn Center building official. At that time, a Certificate of Completion for the Minimum Improvements will be issued by the EDA. o The Buyer shall convey the Property to an Owner Occupant whose household income does not exceed: (a)100% of median income in the case of one or two person household Owner Occupant, or (b)115% of the median income in the case of three or more persons household Owner Occupants. The average median income for the seven-county metropolitan area for 2017 is $86,600. o Provisions which provide the EDA with the rights to re-enter and take possession of the property in the event the buyer does not carry out the obligations with respect to the construction of the Minimum Improvements or abandons or substantially suspends construction. Attached is a copy of the Purchase Agreement and proposed building plans for 5315 James Avenue North. The adoption of this resolution would set a public hearing on the sales and/or conveyance of 5315 James Avenue North for the September 10th EDA Meeting. Budget Issues: The proceeds from this land sale are considered Tax Increment Revenues and will be placed back into the TIF 3 Housing Fund. Strategic Priorities: Targeted Redevelopment Mission: Ensuring an attractive, clean, safe, inclusive coinnhlinit)' that enhances the quality of life for (11/people and preserves the public trust BE IT RESOLVED by the Board of Commissioners (the "Board") of the Economic Development Authority of Brooklyn Center, Minnesota (the "EDA"), as follows: Section 1. Public Hearing. This Board shall meet on September 10, 2017, at approximately 7:00 P.M., to hold a public hearing on the proposal of the EDA on the sale of land located in the City at 5315 James Avenue North, pursuant to Minnesota Statutes, Section 469.105. Section 2. Notice of Public Hearing, Filing of Plans. EDA and consultants are directed and authorized to prepare the necessary documents and the EDA Secretary is authorized and directed to cause notice of the hearing in substantially the form attached as Exhibit A hereto, to be published at least once in the official newspaper of the City not less than 10, nor more than 20, days prior to September 10, 2017. August 14, 2017 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. EDA RESOLUTION NO. NOTICE OF PUBLIC HEARING REGARDING LAND SALE NOTICE IS HEREBY GIVEN that the Board of Commissioners of the Economic Development Authority of Brooklyn Center, Minnesota (the "EDA") will meet at City Hall at 6301 Shingle Creek Pkwy, Brooklyn Center, Minnesota (the "City") at or after 7:00 p.m. on Monday, September 10, 2017 to conduct a public hearing on the proposed sale of certain real property ("Property") located in the City to Novak-Fleck, Inc. The Property is located in the City at 5315 James Avenue North and legally described as: Lot 4, Block 3, Humbolt Addition", Hennepin County, Minnesota. [Torrens] The EDA will meet at the public hearing to determine if the sale is advisable. A copy of the terms and conditions of the proposed sale of the Property will be on file and available for inspection at City Hall during regular business hours. Any person wishing to express an opinion on the matters to be considered at the public hearing will be heard orally or in writing. BY ORDER OF THE BOARD OF COMMISSIONERS Publish: Oh 0-J .> DLfl JLLJ F'OD I 14! 8f& * _I VIN34241= um wooma=9 au Ad C0042= M TV Q'o, ;., Imlo " i - -11-11'^on scAb V4O. TH U S 1W YThU VINDO&IM 1w WIIWM 24T fl j QjcqmHa4d OU - 4 01 UOwwam ,wtuZM CLL WDquP SIDING - HOUSE WRAP STUDS R=21 DATES OSB SHEATHING -FLOOR SYSTEM 1/2' DRYWALL -SPRAY-FOAM @ RIM INTERIOR & EXPOSED TOP OF WALL R-5 SHEET FOAM IF REQD 12' BLOCK WALL 2X4 FURRING WI1' SPACE IF FIN 1/2 DRYWALL IF FIN STUDS R=21 BATIS INSULA SHEATHING DNC SLAB 5 INSUL IF REQD ILOCK WALL ATTIC T GROUP I SOILS PASSIVE RADON SYSTEM YINDOW FLASHING DETAIL R'L . _______IIHHIHHhIIiki " I1 I r i':; 4.1 •kr4 - r1 -- --'-.-______-fl IN PAW ^.Wfklf DWI 5315 James Aveue North, Brooldyn Center, MN 1.Parties. This Purchase and Redevelopment Agreement is made as of 2017 between the ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER, MINNESOTA, a public body corporate and politic under the laws of Minnesota having its office located at 6301 Shingle Creek Parkway, Brooklyn Center, MN (the "Seller"), and NOVAK-FLECK Incorporated, a Minnesota corporation (the "Buyer"). 2.Offer/Acceptance. Buyer offers to purchase and Seller agrees to sell real property legally described as follows (the "Property"): Lot 4, Block 3, "Humbolt Addition", Hennepin County, Minnesota. [Torrens] 3.Price and Terms. The price for the Property is Twenty-Five Thousand Dollars ($25,000.00) which Buyer shall pay as follows: Earnest money of Five Hundred Dollars ($500.00) by check, receipt of which is hereby acknowledged by Seller, and the balance of Twenty-Four Thousand and Five Hundred Dollars ($24,500.00) to be paid by certified check on the Date of Closing. The "Date of Closing" shall be 2017, or such other earlier or later date as the parties mutually agree. 4.Personal Property Included in Sale. There are no items of personal property or fixtures owned by Seller and currently located on the Property for purposes of this sale. 5.Deed. Upon performance by Buyer, Seller shall deliver a quit claim deed conveying title to the Property to Buyer, in substantially the form attached as Exhibit A (the "Deed"). 6.Real Estate Taxes and Special Assessments. The parties agree and understand that the Property is exempt from real estate taxes for taxes payable in the current year. Seller shall pay on Date of Closing all special assessments levied against the Property as of the date of this agreement, including those certified for payment with taxes due and payable in 2017. Seller represents that there are no special assessments pending as of the date of 1 504413v2 BR305-145 this agreement. If a special assessment becomes pending after the date of this agreement and before the Date of Closing, Buyer may, at Buyer's option: A.Assume payment of the pending special assessment without adjustment to the purchase agreement price of the Property; or B.Require Seller to pay the pending special assessment and Buyer shall pay a commensurate increase in the purchase price of the Property, which increase shall be the same as the estimated amount of the assessment; or C. Declare this agreement null and void by notice to Seller, and earnest money shall be refunded to Buyer. 7.Closing Costs and Related Items, The Seller shall be responsible for the following costs: (a) recording fees and conservation fees for all instruments required to establish marketable title in Seller; and (b) deed transfer taxes and conservation fees required to be paid in connection with the Deed being given by Seller. Buyer shall be responsible for the payment of the following costs: (c) recording fees required to be paid in connection with this Agreement and the Deed to be given by Seller; (d) the cost of all title evidence, including all search and commitment fees and the premium for an owner's policy of title insurance, and (e) closing fee, if any. Each party shall be responsible for its own attorneys' fees and costs. 8.Sewer and Water. Seller warrants that city sewer and water are available at the Property line. 9.Condition of Property. Buyer acknowledges that it has inspected or has had the opportunity to inspect the Property and agrees to accept the Property "AS IS." Buyer has the right, at its own expense to take soil samples for the purpose of determining if the soil is suitable for construction of the dwelling described in section 14 below. If the soil is determined to be unacceptable the Buyer may rescind this agreement by written notice to the Seller, in which case the agreement shall be null and void and all earnest money paid hereunder shall be refunded to the Buyer. Seller makes no warranties as to the condition of the Property. 10.Marketability of Title. The Buyer may order, in Buyer's sole discretion and at the Buyer's expense, a commitment (the "Title Commitment") issued by any title insurance company acceptable to Buyer ("Title"), for an owner's title insurance policy in the full amount of the Purchase Price, showing fee simple title to the Property in Seller. Buyer shall have fifteen (15) business days after receipt of the Title Commitment to examine the same and to deliver written objections to Title, if any, to Seller. Seller shall have the greater of: (i) the number of days remaining until the Date of Closing; or (ii) thirty (30) days to have such objections removed or satisfied. 11. Title Clearance and Remedies. If Seller shall fail to have title objections timely removed, the Buyer may, at its sole election: (a) terminate this Agreement without any 2 504413v2 BR305-145 liability on its part, in which event the earnest money shall be promptly refunded in exchange for a quit claim deed to the Property from Buyer; or (b) take title to the Property subject to such objections. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect either of the following options, as permitted by law: A.Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation; or B.Seek specific performance within six months after such right of action arises, including costs and reasonable attorney's fees, as permitted by law. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted by law: C.Seek damages from Seller including costs and reasonable attorney's fees; or D.Seek specific performance within six months after such right of action arises. 12.Well Disclosure: O The Seller certifies that the Seller does not know of any wells on the described real property. o A well disclosure certificate accompanies this document or has been electronically filed. (If electronically filed, insert WDC number: o I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. 13.Individual Sewage Treatment System Disclosure. Seller certifies that there is no individual sewage treatment system on or serving the Property. 14. Construction and Sale of Dwelling. Buyer agrees that it will construct a new single family dwelling on the Property, intended for sale to a person or persons for residential occupancy (an "Owner Occupant"). This covenant shall survive the delivery of the Deed. A.The single family dwelling described in this Section is referred to as the "Minimum Improvements." B.The minimum improvements shall consist of a split entry (look-out) house with two car garage having approximately 1140 sf. of finished floor area (foyer, 2- bedrooms, bathroom, kitchen, dining room, living room) on the main level and approximately 840 sf. floor area for future expansion area (bedroom, family room, and bath) and a utility/laundry room on the lower level and shall be constructed 3 504413v2 BR305-145 substantially in accordance with the plans on file in City Hall. Construction of the Minimum Improvements must be substantially completed by September 15, 2018. Construction will be considered substantially complete when the final certificate of occupancy has been issued by the City of Brooklyn Center building official. C.Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of the Buyer to construct such Minimum Improvements (including the date for completion thereof), the Seller will furnish the Buyer with a Certificate of Completion for such improvements. Such certification by the Seller shall be (and it shall be so provided in the Deed and in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement and in the Deed with respect to the obligations of the Buyer and its successors and assigns, to construct the Minimum Improvements and the dates for completion thereof. The certificate provided for in this Section of this Agreement shall be in such form as will enable it to be recorded in the proper office for the recordation of deeds and other instruments pertaining to the Property. If the Seller shall refuse or fail to provide any certification in accordance with the provisions of this Section, the Seller shall, within 30 days after written request by the Buyer, provide the Buyer with a written statement, indicating in adequate detail in what respects the Buyer has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Seller, for the Buyer to take or perform in order to obtain such certification. D.The Buyer represents and agrees that until issuance of the Certificate of Completion for the Minimum Improvements: (1)Except for any sale to an Owner Occupant, the Buyer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity (collectively, a "Transfer"), without the prior written approval of the Seller's Board of Commissioners. The term "Transfer" does not include encumbrances made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable the Buyer or any successor in interest to the Property, or any part thereof, to construct the Minimum Improvements or component thereof. (2)If the Buyer seeks to effect a Transfer to any person or entity other than an Owner Occupant prior to issuance of the Certificate of Completion, the Seller shall be entitled to require as conditions to such Transfer that: 4 504413v2 BR305-145 (i)any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the Seller, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Buyer as to the portion of the Property to be transferred; (ii)Any proposed transferee, by instrument in writing satisfactory to the Seller and in form recordable in the public land records of Hennepin County, Minnesota, shall, for itself and its successors and assigns, and expressly for the benefit of the Seller, have expressly assumed all of the obligations of the Buyer under this Agreement as to the portion of the Property to be transferred and agreed to be subject to all the conditions and restrictions to which the Buyer is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the Seller) deprive the Seller of any rights or remedies or controls with respect to the Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit the Seller of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Property that the Seller would have had, had there been no such transfer or change. In the absence of specific written agreement by the Seller to the contrary, no such transfer or approval by the Seller thereof shall be deemed to relieve the Buyer, or any other party bound in any way by this Agreement or otherwise with respect to the Property, from any of its obligations with respect thereto; and (iii) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Property governed by this subsection D. shall be in a form reasonably satisfactory to the Seller. (3) If the conditions described in paragraph (2) above are satisfied, then the Transfer will be approved and the Buyer shall be released from its obligation under this Agreement as to the portion of the Property that is transferred, assigned, or otherwise conveyed. The provisions of this paragraph (3) apply to all subsequent transferors. 5 504413v2 BR305-145 (4) Upon issuance of the Certificate of Completion, the Buyer may Transfer the Property and/or the Buyer's rights and obligations under this Agreement with respect to such Property without the prior written consent of the Seller, except to the extent required under subsection F of this Section. E.The Buyer, and its successors and assigns, agree that they (a) will use the Minimum Improvements only as a single family dwelling, and in the case of an Owner Occupant, will occupy the Property as a residence, (b) will not seek exemption from real estate taxes on the Property under State law, and (c) will not transfer or permit transfer of the Property to any entity whose ownership or operation of the Property would result in the Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City of Brooklyn Center or Seller in accordance with this Agreement). The covenants in this subsection run with the land, survive both delivery of the Deed and issuance of the Certificate of Completion for the Minimum Improvements, and shall remain in effect for 15 years after the Date of Closing. F.The Buyer shall convey the Property (either before or after issuance of the Certificate of Completion) to an Owner Occupant whose household income does not exceed: (a) 100% of median income in the case of one or two person household Owner Occupants; or (b) 115% of median income in the case of three or more person household Owner Occupants. The term "median income" means the median income in the seven-county metropolitan area, or the State as a whole, whichever is greater, using income data available from the Minnesota Housing Finance Agency as of the date of closing on sale to the Owner Occupant. Prior to closing on sale the Property by Buyer to an Owner Occupant, Buyer shall: (1)Notify the Seller in writing that the proposed Owner Occupant will meet the income qualifications under this paragraph; and (2)Submit to Seller evidence of Owner Occupant's income in a form satisfactory to Seller, evidencing compliance with the income limits described above. The covenant in this Section applies only to the first sale of the Property to an Owner Occupant, and does not apply to any subsequent sale by an Owner Occupant to any other person or party. 15. Revesting Title in Seller upon Happening of Event Subsequent to Conveyance to Buyer. In the event that subsequent to conveyance of the Property or any part thereof to the Buyer and prior to receipt by the Buyer of the Certificate of Completion for of the Minimum Improvements, the Buyer, subject to Unavoidable Delays (as hereafter defined), fails to carry out its obligations with respect to the construction of the Minimum Improvements (including the nature and the date for the completion thereof), or abandons or substantially suspends construction work, and any such failure, abandonment, or suspension shall not be cured, ended, or remedied within 30 days after written demand from the Seller to the Buyer to do so, then the Seller shall have the right to re-enter and take possession of the Property 6 504413v2 BR305-145 and to terminate (and revest in the Seller) the estate conveyed by the Deed to the Buyer, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to the Buyer shall be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of any default on the part of the Buyer and failure on the part of the Buyer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, the Seller at its option may declare a termination in favor of the Seller of the title, and of all the rights and interests in and to the Property conveyed to the Buyer, and that such title and all rights and interests of the Buyer, and any assigns or successors in interest to and in the Property, shall revert to the Seller, but only if the events stated in this Section have not been cured within the time periods provided above. For the purposes of this Agreement, the term "Unavoidable Delays" means delays beyond the reasonable control of the Buyer as a result thereof which are the direct result of strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the Seller in exercising its rights under this Agreement) which directly results in delays. Unavoidable Delays shall not include delays in the Buyer's obtaining of permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such construction is required under this section of this Agreement. 16. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in the Seller of title to and/or possession of the Property or any part thereof as provided in Section 15, the Seller shall apply the purchase price paid by the Buyer under Section 3 of this Agreement as follows: (a) First, to reimburse the Seller for all costs and expenses incurred by the Seller, including but not limited to proportionate salaries of per in connection with the recapture, management, and resale of the Property or part thereof (but less any income derived by the Seller from the Property or part thereof in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property or part thereof (or, in the event the Property is exempt from taxation or assessment or such charge during the period of ownership thereof by the Seller, an amount, if paid, equal to such taxes, assessments, or charges (as determined by the Seller assessing official) as would have been payable if the Property were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property or part thereof at the time of revesting of title thereto in the Seller or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Buyer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Minimum Improvements or any part thereof on the Property or part thereof and any amounts otherwise owing the Seller by the Buyer and its successor or transferee; and 7 504413v2 BR305445 (b) Second, to reimburse the Buyer for the balance of the purchase price remaining after the reimbursements specified in paragraph (a) above. Such reimbursement shall be paid to the Buyer upon delivery of an executed, recordable warranty deed to the Property by the Buyer to the Seller. 17.Time is of the essence for all provisions of this contract. 18.Notices. All notices required herein shall be in writing and delivered personally or mailed to the address shown at Section 1 above and, if mailed, are effective as of the date of mailing. 19.Minnesota Law. This contract shall be governed by the laws of the State of Minnesota. 20.Specific Performance. This Agreement may be specifically enforced by the parties, provided that an action is brought within one year of the date of alleged breach of this Agreement. 21.No Remedy Exclusive. No remedy herein conferred upon or reserved to the Seller or Buyer is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. 22.No Merger of Representations, Warranties. All representations and warranties contained in this Purchase Agreement shall not be merged into any instruments or conveyance delivered at closing, and the parties shall be bound accordingly. 23. Recording. This Agreement shall be filed of record with the Hennepin County Registrar of Titles. Buyer shall pay all recording costs. 8 504413v2 BR305-145 In witness of the foregoing, the parties have executed this agreement on the year and date written above. ECONOMIC DEVELOPMENT AUTHORIT OF BROOKLYN CENTER, MINNESOTA I By: Tim Willson Its President By: Cornelius L. Boganey Its Executive Director STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN This instrument was acknowledged before me on this ______ day of _, 2017, by Tim Willson and Cornelius L. Boganey, the President and Executive Director, respectively, of the Economic Development Authority of Brooklyn Center, Minnesota, a public body corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic. (Stamp) Notary Public 5-1 504413v2 BR305-145 l m a[SI S Ii[EI] U S) Nail] By: Its: STATE OF MINNESOTA ) } COUNTY OF HENNEPIN ) The foregoing was acknowledged before me this the Minnesota corporation, on behalf of the corporation. (Stamp) day of 2017, by of Novak-Fleck Incorporated, a Notary Public This document drafted by: Kennedy & Graven, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 S-2 504413v2 BR305145 EXHIBIT A to PURCHASE AND REDEVELOPMENT AGREEMENT I [SI 1YtSJ awi V SJ P1 I 10 Deed Tax Due: $85.00 I arsi 4'1 El =11 ani THIS INDENTURE, between the Economic Development Authority of Brooklyn Center, Minnesota, a Minnesota public body corporate and politic (the "Grantor"), and Novak-Fleck Incorporated, a Minnesota corporation (the "Grantee"). WITNESSETH, that Grantor, in consideration of the sum of $25,000 and other good and valuable consideration the receipt whereof is hereby acknowledged, does hereby grant, bargain, quitclaim and convey to the Grantee, its successors and assigns forever, all the tract or parcel of land lying and being in the County of Hennepin and State of Minnesota described as follows, to-wit (such tract or parcel of land is hereinafter referred to as the "Property"): Lot 4, Block 3, "Humbolt Addition", Hennepin County, Minnesota. Check here if all or part ofproperly is registered (Torrens) To have and to hold the same, together with all the hereditaments and appurtenances thereunto belonging. SECTION 1. It is understood and agreed that this Deed is subject to the covenants, conditions, restrictions and provisions of the Purchase and Redevelopment Agreement recorded herewith, between the Grantor and Grantee, dated as of _____________, 2017 (the "Agreement") and that the Grantee shall not convey this Property, or any part thereof, except as permitted by the Agreement until a certificate of completion releasing the Grantee from certain obligations of said Agreement as to this Property or such part thereof then to be conveyed, has been placed of record. This provision, however, shall in no way prevent the Grantee from mortgaging this Property in order to obtain funds for the purchase of the Property hereby conveyed or for erecting the Minimum Improvements thereon (as defined in the Agreement) in conformity with the Agreement, any applicable development program and applicable provisions of the zoning ordinance of the City of Brooklyn Center, Minnesota, or for the refinancing of the same. A-1 504413v2 BR305-145 It is specifically agreed that the Grantee shall promptly begin and diligently prosecute to completion the redevelopment of the Property through the construction of the Minimum Improvements thereon, as provided in the Agreement. Promptly after completion of the Minimum Improvements in accordance with the provisions of the Agreement, the Grantor will furnish the Grantee with an appropriate instrument so certifying. Such certification by the Grantor shall be (and it shall be so provided in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants of the Agreement and of this Deed with respect to the obligation of the Grantee, and its successors and assigns, to construct the Minimum Improvements and the dates for the beginning and completion thereof. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Grantee to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance the purchase of the Property hereby conveyed or the Minimum Improvements, or any part thereof. All certifications provided for herein shall be in such form as will enable them to be recorded with the County Recorder, or Registrar of Titles, Hennepin County, Minnesota. If the Grantor shall refuse or fail to provide any such certification in accordance with the provisions of the Agreement and this Deed, the Grantor shall, within thirty (30) days after written request by the Grantee, provide the Grantee with a written statement indicating in adequate detail in what respects the Grantee has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Grantor, for the Grantee to take or perform in order to obtain such certification. SECTION 2. The Grantee's rights and interest in the Property are subject to the terms and conditions of Sections 14 and 15 of the Agreement relating to the Grantor's right to re-enter and revest in Grantor title to the Property under conditions specified therein, including but not limited to the condition subsequent that the Grantee substantially complete construction of the Minimum Improvements by and that the Grantee shall transfer or convey the Property and Minimum Improvements thereon only in accordance with Sections 14D and 14F. SECTION 3. The Grantee agrees for itself and its successors and assigns to or of the Property or any part thereof, hereinbefore described, that the Grantee and such successors and assigns shall comply with Section 14E of the Agreement for a period of 15 years after the date hereof. It is intended and agreed that the above and foregoing agreements and covenants shall be covenants running with the land for the respective terms herein provided, and that they shall, in any event, and without regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided in this Deed, be binding, to the fullest extent permitted by law and equity for the benefit and in favor of, and enforceable by, the Grantor A-2 504413v2 BR305-145 against the Grantee, its successors and assigns, and every successor in interest to the Property, or any part thereof or any interest therein, and any party in possession or occupancy of the Property or any part thereof. In amplification, and not in restriction of, the provisions of the preceding section, it is intended and agreed that the Grantor shall be deemed a beneficiary of the agreements and covenants provided herein, both for and in its own right, and also for the purposes of protecting the interest of the community and the other parties, public or private, in whose favor or for whose benefit these agreements and covenants have been provided. Such agreements and covenants shall run in favor of the Grantor without regard to whether the Grantor has at any time been, remains, or is an owner of any land or interest therein to, or in favor of, which such agreements and covenants relate. The Grantor shall have the right, in the event of any breach of any such agreement or covenant to exercise all the rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach of agreement or covenant, to which it or any other beneficiaries of such agreement or covenant may be entitled; provided that Grantor shall not have any right to re-enter the Property or revest in the Grantor the estate conveyed by this Deed on grounds of Grantee's failure to comply with its obligations under this Section 3. IN WITNESS WHEREOF, the Grantor has caused this Deed to be duly executed in its behalf by its President and Executive Director. O The Seller certifies that the Seller does not know of any wells on the described real property.o A well disclosure certificate accompanies this document or has been electronically filed. (If electronically filed, insert WDC number:o I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. GRANTOR: ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER, MINNESOTA By Tim Willson Its President By Cornelius L. Boganey Its Executive Director A-3 504413v2 BR305-145 STATE OF MINNESOTA ) ) ss COUNTY OF HENNEPIN ) This instrument was acknowledged before me on this -day of by Tim Willson and Cornelius L. Boganey, the President and Executive Director, respectively, of the Economic Development Authority of Brooklyn Center, Minnesota, a public body corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic. (Stamp) Notary Public This instrument was drafted by: Kennedy & Graven, Charted (JSB) 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (612) 3379300 Tax Statements should be sent to: Novak-Fleck Incorporated 8857 Zealand Avenue North Brooklyn Park, MN 55445 A-4 504413v2 BR305-145 M :1 u:i Ii I (II auitt.i I r aws 1 II i asi ai I I I S] LII SJ M I I [Nil I )D] LEI) I J I DI I [I)I B-i 504413v2 BR305-145 *3I WHEREAS, the Economic Development Authority of Brooklyn Center, Minnesota, a public body, corporate and politic (the "Grantor"), conveyed land in Hennepin County, Minnesota to Novak-Fleck Incorporated, a Minnesota corporation (the "Grantee"), by a Deed recorded in the office of the Registrar of Titles in and for the County of Hennepin and State of Minnesota, as Document Number and WHEREAS, said Deed contained certain covenants and restrictions set forth in Sections 1 and 2 of said Deed; and WHEREAS, said Grantee has performed said covenants and conditions insofar as it is able in a manner deemed sufficient by the Grantor to permit the execution and recording of this certification; NOW, THEREFORE, this is to certify that all building construction and other physical improvements specified to be done and made by the Grantee have been completed and the above covenants and conditions in said Deed and the agreements and covenants in Sections 14 and 15 of the Agreement (as described in said Deed) have been performed by the Grantee therein, and the Registrar of Titles in and for the County of Hennepin and State of Minnesota is hereby authorized to accept for recording and to record, the filing of this instrument, to be a conclusive determination of the satisfactory termination of the covenants and conditions of Sections 14 and 15 of the Agreement and the covenants and restrictions set forth in Sections 1 and 2 of said Deed; provided that the covenants set forth in Sections 14E of the Agreement, and in Section 3 of the Deed, remain in full force and effect through the period stated thereon. B-2 504413v2 BR305-145 Dated: , 20 ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER, MINNESOTA By Its President By Its Executive Director STATE OF MINNESOTA ) ) ss COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of______________ 20, by and , the President and Executive Director, respectively, of the Economic Development Authority of Brooklyn Center, Minnesota, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the public body corporate and politic. Notary Public This document drafted by: KENNEDY & GRAVEN, CHARTERED 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (612) 337-9300 B-3 504413v2 BR305-145 Commissioner Dan Ryan introduced the following resolution and moved its adoption: EDA RESOLUTION NO, 201 7-04 RESOLUTION AUTHORIZING THE ACQUISITION OF BLIGHTED PROPERTY IN CONNECTION WITH THE REMOVE AND REBUILD PROGRAM (5315 James Avenue North) WHEREAS, Tax Increment Finance (TIF) District No. 3 was created in 1994 as a Redevelopment District to provide assistance to various commercial redevelopment and housing development projects within the District. The housing objectives included the following: To acquire blighted or deteriorated residential property for rehabilitation or clearance and redevelopment; and To develop housing opportunities for market segments underserved by the City including housing for the disabled and elderly; and WHEREAS, On January 12, 2009, the EDA adopted Resolution No. 2009-02, "A Resolution Establishing Housing Programs and Approving the Use of Funds from the Tax Increment District No. 3 Housing Account" which authorized the following: • The creation of the Renew Loan and Renew Grant programs. • The creation of the Remove and Rebuild program. • The initial budgets for the Renew Loan and Renew Grant Program and Remove and Rebuild Program. • The use of the Greater Metropolitan Housing Corporation to administer the programs; and WHEREAS, the Remove & Rebuild Program was created to remove blighted, distressed, and unmarketable properties and to return these properties to an enhanced and compatible use with the neighborhood and consistent with zoning regulations and the City's Comprehensive Plan; and WHEREAS, on January 11, 2017, a house fire at 5315 James Avenue North caused extensive damage to the interior and exterior of this residence resulting in the home to be declared to be uninhabitable and a blighted building; and WHEREAS, the real property located at 5315 James Avenue North, (the "Subject Property") is a voluntary sale of a vacant and uninhabitable single family residence for the amount of $20,000 (the 2017 assessed land value of $35,000 minus the estimated demolition costs of $15,000). WHEREAS, the EDA has determined acquisition of the Subject Property is consistent with the goals and objectives of the Tax Increment District No. 3 Housing Program RESOLUTION NO. 2017-04 and is in the best interest of the City of Brooklyn Center and its citizens. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City 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. March 27, 2017 Date President The motion for the adoption of the foregoing resolution was duly seconded by Commissioner April Gravesand upon vote being taken thereon, the following voted in favor thereof: Tim Willson, Marguita Butler, April Graves, Dan Ryanand the following voted against the same: whereupon said resolution was declared duly passed and adopted. E]11A ATENA MEMORANDUM DATE: March 27. 2017 10: Curt Boganey, City Man 05 FROM: Gary Eitel, Director of Business & Development SUBJECT: Resolution Authorizing the Acquisition of Blighted Property in Connection with the Remove and Rebuild Program (5315 James Avenue North) Reco nneiid ation: It is recommended that the Fconomic Development Authority consider approval/adoption of Resolution Authorizing the Acquisition of Blighted Property in Connection with the Remove and Rebuild Program (5315 James Aven tie North). Background: January 11, 2017, a fire at 5315 James Ave. N. resulted in extensive interior and exterior damage to this single family home, resulting in the structure being declared a hazardous building. The property owner was aware of the FDA's program of acquiring and removing blighted buildings and inquired if the EDA would be interested in possibly acquiring his property. On February 13, 2017, the FDA considered the proposed acquisition of 5315 James Ave. N. for its assessed land value ($35,000); the estimated demolition cost to remove the fire damaged building and accessory structure ($15,000); the potential resale of the property; and the potential of other possible acquisition options. The EDA moved to table this matter to review other possible acquisition options. Remove and Rebuild Program: On January 12. 2009, the EDA adopted Resolution No. 200902, A Resolution Establishing Housing Programs and Approving the Use of Funds from Tax Increment District No. 3 Housing Account, which authorized the Remove and Rebuild Program The program was created to remove blighted, distressed, and unmarketable properties and to return these properties to an enhanced and compatible use with the neighborhood and consistent with zoning regulations and the City's Comprehensive Plan. Additionally, the program recognized that if an appropriate use for the land is not imminent, the property will be land banked until such time an appropriate use becomes available. ftc program has resulted in the construction of 7 new single family homes that have been sold to owner occupants meeting the affordability requirement of the TIF 31-lousing Fund ( a Family of 2 or less not to exceed the average household niedian income for the metro area or 115% of the average household median for a family of 3 or more). Mission: Ensuring (UI riutracln'e, clean, safe, inclusive coninuitilt' that enhances the quality of life fior all people (111(1 preserves the public 1risI I MIJ: IVWA I 0) tiI I1IJA I Novak & Fleck Construction, the developer of 6 of these properties, has indicated that they would be interested in building a spilt entry home with a 2+ car garage on this property. Attached is a copy of the floor plan of the proposed single family home which meets the minimum side yard setback of 10 feet on the house side and 5 feet on the garage side. Proposed Acquisition: The property is an interior lot, with 50' of frontage on James Avenue N. and 119.03' of depth with rear access from a 30 foot wide alley. The tax records indicate that the residence was built in 1942. The home to the north was constructed in 1959 and the home to the south was constructed in 1958. The 2017 property tax value is shown at $97,000. Bldg. Value $62,000 Lot Value $35,000 There are no special assessments levied on this property. Staff now understands that the property owner's insurance policy is sufficient to cover the outstanding mortgage and the property owner is in a position to reduce the sales price to cover the estimated cost of the demolition. Budget Issues: The acquisition of this blighted property for its assessed lot valuation of $20,000 is proposed to be funded from the Tax Increment District No. 3 Housing Account. The estimated cost for a single family demolition and site restoration is approximately $15,000. The proceeds from the sales of this lot are considered to be future tax increment revenue for Tax Increment Financing District No, 3 Housing Account. Strategic Priorities: o Enhanced Community Image Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public (just _%c F V•I ! IF Al ELI w - -- - _1L1 ;H• v k4 'iii±r: r - 'I - CO I' )' - ¶'Z1 , ____L 4, '' 4HLO Lo is 1 t q _______ It 7 ---- ___ I P L I " •1 •i•. IIt .1 00 We , k 1? \ rm IW I All :1 E1l1 -I- -- i• Ecid L-. 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Cl' P10I ABOVE1 106' OF I'TGJ UNEXGAVATEI7 LOWER LEVEL PLAN5CAI.E V4"H'O' bt e.2u'L V. I; EDA Meeting August 14, 2017 EDA Item 4.a Subject Location Map-5301 James Ave N. & 5315 James Ave N. Background On January 11, 2017, a fire at 5315 James Ave. N. resulted in extensive interior and exterior damage to this single family home, resulting in the structure being declared a hazardous building. The EDA considered acquiring this property through the Remove & Rebuild Program on February 13, 2017 and on March 27th the EDA approve Resolution No. 2017-04, Resolution Authorizing the Acquisition of Blighted Property in Connection with the Remove and Rebuild Program (5315 James Avenue North). On April 12, 2017, the property was acquired for $20,000 and on June 27th the demolition and final grading/restoration of the lot were completed. Subject Location Map – 5315 James Avenue N. January 11, 2017 - fire resulted in extensive interior and exterior damage to home; structure later declared a hazardous building. Owner was aware of EDA's program of acquiring/removing blighted buildings; inquired if the EDA would be interested in possibly acquiring his property. Purchase Agreement •The purchase price is $25,000. •The buyer agrees that it will construct a new single family dwelling on the Property, intended for sale to a person or persons for residential occupancy (an Owner Occupant). •The minimum improvements shall consist of a split entry (look-out) house with two car garage having approximately 1140 sf. of finished floor area (foyer, 2-bedrooms, bathroom, kitchen, dining room, living room) on the main level and approximately 840 sf. floor area for future expansion area (bedroom, family room, and bath) and a utility/laundry room on the lower level and shall be constructed substantially in accordance with the plans on file in City Hall. •The minimum improvements must be substantially completed by September 15, 2018. Construction will be considered substantially complete when the final certificate of occupancy has been issued by the City of Brooklyn Center building official. At this time, a Certificate of Completion for the Minimum Improvements will be issued by the EDA. Purchase Agreement (continued) •The Buyer shall convey the Property to an Owner Occupant whose household income does not exceed: (a)100% of median income in the case of one or two person household Owner Occupant, or (b) 115% of the median income in the case of three or more persons household •Owner Occupants. The average median income for the seven-county metropolitan area for 2017 is $86,600. Provisions which provide the EDA with the rights to re-enter and take possession of the property in the event the buyer does not carry out the obligations with respect to the construction of the Minimum Improvements or abandons or substantially suspends construction. RECOMMENDATION Recommend the Economic Development Authority consider approval/adoption of the Resolution Calling for a Public Hearing on September 10, 2017. Regarding Sale of Land Located at 5315 James Ave North. EIA Ada Dem N©0 4b ERA IfTEM MEMORANDUM DATE: August 14, 2017 TO: Curt Boganey, City FROM: Gary Eitel, Director of Business & Development SUBJECT: Resolution Calling for a Public Hearing Regarding the Sale of Land Located at 5301 James Avenue North Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of a Resolution Calling for a Public Hearing Regarding the Sale of Land Located at 5301 James Avenue North Background: On February 9, 2009, the EDA approved Resolution No. 200903, A Resolution Authorizing the Acquisition of Property in Connection with the Remove and Rebuild Program (5301 James Avenue North). The property included a vacant and foreclosed building single family slab on grade residence that was constructed in 1938 on a 6,017 sf. corner lot with 118 feet of frontage on 53rd Avenue North and 51 feet of frontage on James Avenue North. The EDA acquired the property for $19,000. The following options for the future use of the property were identified in the February 9, 2009 staff memorandum: 1.Community Trail Corridor The 2000 Comprehensive Plan identified a major trail corridor along 53 rd Avenue from the Mississippi River Trail to Humboldt Avenue. The current 2010 Comprehensive Plan is considering the westerly extension of this proposed trail corridor to the Shingle Creek Corridor to the west of Humboldt Avenue. 2.Infill Development When market conditions are favorable, the redevelopment of this lot with a single family residence with proper orientations to James Avenue and the service alley that is consistent with the neighboring properties. 3.Land Combination to the Adjacent Property The option of completing the trail corridor and other streetscape improvements and conveying the residue of the property to the adjoining land use to the north. 4.Redevelopment Project A major redevelopment of the 53rd Avenue corridor comparable to the Humboldt Greenway. The regional trail connection between the Shingle Creek Corridor and the Mississippi River Corridor was decided to follow the 57th Avenue Corridor. Mission: Ensuring an attractive, clean, safe, i,,clzisive community that enhances the quality of life for al/people and preserves the public trust Planning concepts to assemble available properties and renovate the 53rd Avenue Corridor similar to the Bellevue neighborhood or the Humbolt Greenway did not materialize. The residential market for this area now enables the infill development option and provides new opportunity for owner occupants to move into the neighborhood. Proposed Sales of 5315 James Avenue North Novak-Fleck, Inc. an experienced residential building with infill development and the EDA's Remove and Rebuild Program, successfully developing and marketing 6 EDA lots (5400 Bryant, 5800 Bryant, 5331 Morgan, 5538 Logan, 5645 Brooklyn Boulevard, and 6905 Camden), has expressed an interest in acquiring 5315 and 5301 James Avenue North. The City Attorney has prepared the enclosed Purchase and Redevelopment Agreement, which includes the following components related to the EDA's sales of this vacant lot for an infill development of a new single family residence: • The purchase price is $25,000. • The buyer agrees that it will construct a new single family dwelling on the Property, intended for sale to a person or persons for residential occupancy (an Owner Occupant). • The minimum improvements shall consist of a split entry (look-out) house with two car garage having approximately 1140 sf. of finished floor area (foyer, 2-bedrooms, bathroom, kitchen; dining room, living room) on the main level and approximately 840 sf. floor area for future expansion area (bedroom, family room, and bath) and a utility/laundry room on the lower level and shall be constructed substantially in accordance with the plans on file in City Hall. • The minimum improvements must be substantially completed by September 15, 2018. Construction will be considered substantially complete when the final certificate of occupancy has been issued by the City of Brooklyn Center building official. At this time, a Certificate of Completion for the Minimum Improvements will be issued by the EDA. • The Buyer shall convey the Property to an Owner Occupant whose household income does not exceed: (a)100% of median income in the case of one or two person household Owner Occupant, or (b)115% of the median income in the case of three or more persons household Owner Occupants. The average median income for the seven-county metropolitan area for 2017 is $86,600. • Provisions which provide the EDA with the rights to re-enter and take possession of the property in the event the buyer does not carry out the obligations with respect to the construction of the Minimum Improvements or abandons or substantially suspends construction. flvjjssio,z: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for al/people and preserves the public Iiiist I DILl I V*'A U I )k'A (I) UI I1Uh I The proposed sales of this lot would be conditioned upon establishing a side yard setback along 53rd Avenue North of 10 feet, which is consistent with the development of other single family homes constructed on 50 foot wide lots in this portion of the City. Budget Issues: The proceeds from this land sale are considered Tax Increment Revenues and will be placed back into the TIF 3 Housing Fund. Strategic Priorities: Targeted Redevelopment Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for al/people and preserves the public trust BE IT RESOLVED by the Board of Commissioners (the "Board") of the Economic Development Authority of Brooklyn Center, Minnesota (the "EDA"), as follows: Section 1. Public Hearing. This Board shall meet on September 10, 2017, at approximately 7:00 P.M., to hold a public hearing on the proposal of the EDA on the sale of land located in the City at 5301 James Avenue North, pursuant to Minnesota Statutes, Section 469.105. Section 2. Notice of Public Hearing, Filing of Plans. EDA and consultants are directed and authorized to prepare the necessary documents and the EDA Secretary is authorized and directed to cause notice of the hearing in substantially the form attached as Exhibit A hereto, to be published at least once in the official newspaper of the City not less than 10, nor more than 20, days prior to September 10, 2017. August 14, 2017 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. EDA RESOLUTION NO. NOTICE OF PUBLIC HEARING REGARDING LAND SALE NOTICE IS HEREBY GIVEN that the Board of Commissioners of the Economic Development Authority of Brooklyn Center, Minnesota (the "EDA") will meet at City Hall at 6301 Shingle Creek Pkwy, Brooklyn Center, Minnesota (the "City") at or after 7:00 p.m. on Monday, September 10, 2017 to conduct a public hearing on the proposed sale of certain real property ("Property") located in the City to Novak-Fleck, Inc. The Property is located in the City at 5301 James Avenue North and legally described as: Lot 1; and the South 13.5 feet of the West 21.15 feet of Lot 2, Block 3, "Humbolt Additon, Hennepin County, Minnesota. [Torrens] The EDA will meet at the public hearing to determine if the sale is advisable. A copy of the terms and conditions of the proposed sale of the Property will be on file and available for inspection at City Hall during regular business hours. Any person wishing to express an opinion on the matters to be considered at the public hearing will be heard orally or in writing. BY ORDER OF THE BOARD OF COMMISSIONERS Publish: 3 wi 119.00' 21.15 LOT 1 and part of Lot 2, BLOCK 3, "HUMBOLDT ADDTION"5301 JAMES AVE. N. IN?WIVLA!J I MINE HW t 'Ejjwjwo4mmAwwr MU M jMWW mm OMYOW-Va .11611M 0004 "a 2U 'U aL W12- _I I -(IO. TII 6- -I /4x I/2I a-I /4II 1/ TIMBOMPAW I •TW flW Th14 Y fl 19 ILL -C=A=m 0400944 24 aL .fla4 2MON F PLVJI#77 r -- I fl AY KWK - __ ___* L ai L04 4W €EILE i - SIDING - HOUSE WRAP GROUP I SOILS 0001631]_-2X6 STUDS R=21 BATtS INSULATION i D ATE 3t22/17 ADDRESS vVirita00 ST ,7/16" OSB SHEATHING lUAU? IUAT?dLUL)LU<A1100 -FLOOR SYSTEM I OEUIUUEAUICAL EQLUIU?M 1/2 DRYWALL BALI UEOE WA-SB gALLON SPRAY-FOAM ® R INTERIOR B UEUElA A goal 42V1V01 LCIsouumpopgoNUEIoNal& EXPOSED TOP OF WALL lOCATION K-VALUE -R-5 SHEET FOAM IF RBQD or IURETIO}i WALL IWÜAL -12 BLOCKWALL ._2X4 FURRING W/1 0 SPACE IFFIN tKAE0E UalU0LUUUEA BAAAIAO --I/2 DRYWALL IF FIN STUDS R21 BA TIS INSULATION RE REIU0 o0IREA SHEATHING IVSICA0 flOg UUTY'JIBAJIOO 1001'. 000000CIUBO& 001)0*I! WBKThUOCUO I3AIUSK.0) -10100 0. UALAPICOBIIUV OULOI000IN 0I LOCATION 7KVU?410A00N I0TALVTI{lTEIHJ ONC SLAB -5 INSTiL IF EEQD BLOCK WALL 40 B RE AC - SPAOE ...- 10011 OR 3 th Ftm L PASSIVE RADON SYSTEM V6HDOW FLASHING DETAIL Y'- -'iiiIIIIIIIIIII___iIHhIIIIIU1i ____ /lç,.y: ..-••-____ 1 _ om i )JIDJ1l3Il1Ik'AF3k1i 5301 James Aveue North, Brooklyn Center, MN 1.Parties. This Purchase and Redevelopment Agreement is made as of 2017 between the ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER, MINNESOTA, a public body corporate and politic tinder the laws of Minnesota having its office located at 6301 Shingle Creek Parkway, Brooklyn Center, MN (the "Seller"), and NOVAKFLECK INCORPORATED, a Minnesota corporation (the "Buyer"). 2.Offer/Acceptance. Buyer offers to purchase and Seller agrees to sell real property legally described as follows (the "Property"): Lot 1; and the South 13.5 feet of the West 21.15 feet of Lot 2, Block 3, "Humbolt Addition", Hennepin County, Minnesota. [Torrens] 3.Price and Terms. The price for the Property is Twenty-Five Thousand Dollars ($25,000.00) which Buyer shall pay as follows: Earnest money of Five Hundred Dollars ($500.00) by check, receipt of which is hereby acknowledged by Seller, and the balance of Twenty-Four Thousand and Five Hundred Dollars ($24,500.00) to be paid by certified check on the Date of Closing. The "Date of Closing" shall be September 15, 2017, or such other earlier or later date as the parties mutually agree. 4.Personal Property Included in Sale. There are no items of personal property or fixtures owned by Seller and currently located on the Property for purposes of this sale. 5.Deed. Upon performance by Buyer, Seller shall deliver a quit claim deed conveying title to the Property to Buyer, in substantially the form attached as Exhibit A (the "Deed"). 6.Real Estate Taxes and Special Assessments. The parties agree and understand that the Property is exempt from real estate taxes for taxes payable in the current year. Seller shall pay on Date of Closing all special assessments levied against the Property as of the date of this agreement, including those certified for payment with taxes due and payable in 2017. Seller represents that there are no special assessments pending as of the date of 504412v4 BR305-97 this agreement. If a special assessment becomes pending after the date of this agreement and before the Date of Closing, Buyer may, at Buyer's option: A.Assume payment of the pending special assessment without adjustment to the purchase agreement price of the Property; or B.Require Seller to pay the pending special assessment and Buyer shall pay a commensurate increase in the purchase price of the Property, which increase shall be the same as the estimated amount of the assessment; or C. Declare this agreement null and void by notice to Seller, and earnest money shall be refunded to Buyer. 7.Closing Costs and Related Items. The Seller shall be responsible for the following costs: (a) recording fees and conservation fees for all instruments required to establish marketable title in Seller; and (b) deed transfer taxes and conservation fees required to be paid in connection with the Deed being given by Seller. Buyer shall be responsible for the payment of the following costs: (c) recording fees required to be paid in connection with this Agreement and the Deed to be given by Seller; (d) the cost of all title evidence, including all search and commitment fees and the premium for an owner's policy of title insurance, and (e) closing fee, if any. Each party shall be responsible for its own attorneys' fees and costs. 8.Sewer and Water. Seller warrants that city sewer and water are available at the Property line. 9.Condition of Property. Buyer acknowledges that it has inspected or has had the opportunity to inspect the Property and agrees to accept the Property "AS IS." Buyer has the right, at its own expense to take soil samples for the purpose of determining if the soil is suitable for construction of the dwelling described in section 14 below. If the soil is determined to be unacceptable the Buyer may rescind this agreement by written notice to the Seller, in which case the agreement shall be null and void and all earnest money paid hereunder shall be refunded to the Buyer. Seller makes no warranties as to the condition of the Property. 10.Marketability of Title. The Buyer may order, in Buyer's sole discretion and at the Buyer's expense, a commitment (the "Title Commitment") issued by any title insurance company acceptable to Buyer ("Title"), for an owner's title insurance policy in the full amount of the Purchase Price, showing fee simple title to the Property in Seller. Buyer shall have fifteen (15) business days after receipt of the Title Commitment to examine the same and to deliver written objections to Title, if any, to Seller. Seller shall have the greater of: (i) the number of days remaining until the Date of Closing; or (ii) thirty (30) days to have such objections removed or satisfied. 11, Title Clearance and Remedies. If Seller shall fail to have title objections timely removed, the Buyer may, at its sole election: (a) terminate this Agreement without any 2 504412v4 BR305-97 liability on its part, in which event the earnest money shall be promptly refunded in exchange for a quit claim deed to the Property from Buyer; or (b) take title to the Property subject to such objections. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect either of the following options, as permitted by law: A.Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation; or B.Seek specific performance within six months after such right of action arises, including costs and reasonable attorney's fees, as permitted by law. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted by law: C.Seek damages from Seller including costs and reasonable attorney's fees; or D.Seek specific performance within six months after such right of action arises. 12.Well Disclosure: o The Seller certifies that the Seller does not know of any wells on the described real property. o A well disclosure certificate accompanies this document or has been electronically filed. (If electronically filed, insert WDC number:o I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. 13.Individual Sewage Treatment System Disclosure. Seller certifies that there is no individual sewage treatment system on or serving the Property. 14. Construction and Sale of Dwelling. Buyer agrees that it will construct a new single family dwelling on the Property, intended for sale to a person or persons for residential occupancy (an "Owner Occupant"). This covenant shall survive the delivery of the Deed. A.The single family dwelling described in this Section is referred to as the "Minimum Improvements." B.The Minimum Improvements shall consist of a split entry (look-out) house with two car garage having approximately 1140 sf. of finished floor area (foyer, 2- bedrooms, bathroom, kitchen, dining room, living room) on the main level and approximately 840 sf. floor area for future expansion area (bedroom, family room, 3 504412v4 BR305-97 and bath) and a utility/laundry room on the lower level and shall be constructed substantially in accordance with the plans on file in City Hall. Construction of the Minimum Improvements must be substantially completed by September 15, 2018. Construction will be considered substantially complete when the final certificate of occupancy has been issued by the City of Brooklyn Center building official. C. Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of the Buyer to construct such Minimum Improvements (including the date for completion thereof), the Seller will furnish the Buyer with a Certificate of Completion for such improvements. Such certification by the Seller shall be (and it shall be so provided in the Deed and in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement and in the Deed with respect to the obligations of the Buyer and its successors and assigns, to construct the Minimum Improvements and the dates for completion thereof. The certificate provided for in this Section of this Agreement shall be in such form as will enable it to be recorded in the proper office for the recordation of deeds and other instruments pertaining to the Property. If the Seller shall refuse or fail to provide any certification in accordance with the provisions of this Section, the Seller shall, within 30 days after written request by the Buyer, provide the Buyer with a written statement, indicating in adequate detail in what respects the Buyer has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Seller, for the Buyer to take or perform in order to obtain such certification. D. The Buyer represents and agrees that until issuance of the Certificate of Completion for the Minimum Improvements: (1)Except for any sale to an Owner Occupant, the Buyer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity (collectively, a "Transfer"), without the prior written approval of the Seller's Board of Commissioners. The term "Transfer" does not include encumbrances made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable the Buyer or any successor in interest to the Property, or any part thereof, to construct the Minimum Improvements or component thereof. (2)If the Buyer seeks to effect a Transfer to any person or entity other than an Owner Occupant prior to issuance of the Certificate of Completion, the Seller shall be entitled to require as conditions to such Transfer that: El 5044120 BR305-97 (i)any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the Seller, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Buyer as to the portion of the Property to be transferred; (ii)Any proposed transferee, by instrument in writing satisfactory to the Seller and in form recordable in the public land records of Hennepin County, Minnesota, shall, for itself and its successors and assigns, and expressly for the benefit of the Seller, have expressly assumed all of the obligations of the Buyer under this Agreement as to the portion of the Property to be transferred and agreed to be subject to all the conditions and restrictions to which the Buyer is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the Seller) deprive the Seller of any rights or remedies or controls with respect to the Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit the Seller of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Property that the Seller would have had, had there been no such transfer or change. In the absence of specific written agreement by the Seller to the contrary, no such transfer or approval by the Seller thereof shall be deemed to relieve the Buyer, or any other party bound in any way by this Agreement or otherwise with respect to the Property, from any of its obligations with respect thereto; and (iii) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Property governed by this subsection D. shall be in a form reasonably satisfactory to the Seller. (3) If the conditions described in paragraph (2) above are satisfied, then the Transfer will be approved and the Buyer shall be released from its obligation under this Agreement as to the portion of the Property that is transferred, assigned, or otherwise conveyed. The provisions of this paragraph (3) apply to all subsequent transferors. 5 5044120 BR305-97 (4) Upon issuance of the Certificate of Completion, the Buyer may Transfer the Property and/or the Buyer's rights and obligations under this Agreement with respect to such Property without the prior written consent of the Seller, except to the extent required under subsection F of this Section. E.The Buyer, and its successors and assigns, agree that they: (a) will use the Minimum Improvements only as a single family dwelling, and in the case of an Owner Occupant, will occupy the Property as a residence; (b) will not seek exemption from real estate taxes on the Property under State law; and (c) will not transfer or permit transfer of the Property to any entity whose ownership or operation of the Property would result in the Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City of Brooklyn Center or Seller in accordance with this Agreement). The covenants in this subsection run with the land, survive both delivery of the Deed and issuance of the Certificate of Completion for the Minimum Improvements, and shall remain in effect for 15 years after the Date of Closing. F.The Buyer shall convey the Property (either before or after issuance of the Certificate of Completion) to an Owner Occupant whose household income does not exceed: (a) 100% of median income in the case of one or two person household Owner Occupants; or (b) 115% of median income in the case of three or more person household Owner Occupants. The term "median income" means the median income in the seven-county metropolitan area, or the State as a whole, whichever is greater, using income data available from the Minnesota Housing Finance Agency as of the date of closing on sale to the Owner Occupant. Prior to closing on sale the Property by Buyer to an Owner Occupant, Buyer shall: (1)Notify the Seller in writing that the proposed Owner Occupant will meet the income qualifications under this paragraph; and (2)Submit to Seller evidence of Owner Occupant's income in a form satisfactory to Seller, evidencing compliance with the income limits described above. The covenant in this Section applies only to the first sale of the Property to an Owner Occupant, and does not apply to any subsequent sale by an Owner Occupant to any other person or party. 15. Revesting Title in Seller upon Happening of Event Subsequent to Conveyance to Buyer. In the event that subsequent to conveyance of the Property or any part thereof to the Buyer and prior to receipt by the Buyer of the Certificate of Completion for of the Minimum Improvements, the Buyer, subject to Unavoidable Delays (as hereafter defined), fails to carry out its obligations with respect to the construction of the Minimum Improvements (including the nature and the date for the completion thereof), or abandons or substantially suspends construction work, and any such failure, abandonment, or suspension shall not be cured, ended, or remedied within 30 days after written demand from the Seller to the Buyer to do so, then the Seller shall have the right to re-enter and take possession of the Property 504412v4 BR305-97 and to terminate (and revest in the Seller) the estate conveyed by the Deed to the Buyer, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to the Buyer shall be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of any default on the part of the Buyer and failure on the part of the Buyer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, the Seller at its option may declare a termination in favor of the Seller of the title, and of all the rights and interests in and to the Property conveyed to the Buyer, and that such title and all rights and interests of the Buyer, and any assigns or successors in interest to and in the Property, shall revert to the Seller, but only if the events stated in this Section have not been cured within the time periods provided above. For the purposes of this Agreement, the term "Unavoidable Delays" means delays beyond the reasonable control of the Buyer as a result thereof which are the direct result of strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the Seller in exercising its rights under this Agreement) which directly results in delays. Unavoidable Delays shall not include delays in the Buyer's obtaining of permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such construction is required under this section of this Agreement. 16. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in the Seller of title to and/or possession of the Property or any part thereof as provided in Section 15, the Seller shall apply the purchase price paid by the Buyer under Section 3 of this Agreement as follows: (a) First, to reimburse the Seller for all costs and expenses incurred by the Seller, including but not limited to proportionate salaries of personnel, in connection with the recapture, management, and resale of the Property or part thereof (but less any income derived by the Seller from the Property or part thereof in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property or part thereof (or, in the event the Property is exempt from taxation or assessment or such charge during the period of ownership thereof by the Seller, an amount, if paid, equal to such taxes, assessments, or charges (as determined by the Seller assessing official) as would have been payable if the Property were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property or part thereof at the time of revesting of title thereto in the Seller or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Buyer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Minimum Improvements or any part thereof on the Property or part thereof; and any amounts otherwise owing the Seller by the Buyer and its successor or transferee; and 7 504412v4 BR305-97 (b) Second, to reimburse the Buyer for the balance of the purchase price remaining after the reimbursements specified in paragraph (a) above. Such reimbursement shall be paid to the Buyer upon delivery of an executed, recordable warranty deed to the Property by the Buyer to the Seller. 17.Time is of the essence for all provisions of this contract. 18.Notices. All notices required herein shall be in writing and delivered personally or mailed to the address shown at Section 1 above and, if mailed, are effective as of the date of mailing. 19.Minnesota Law. This contract shall be governed by the laws of the State of Minnesota. 20.Specific Performance. This Agreement may be specifically enforced by the parties, provided that an action is brought within one year of the date of alleged breach of this Agreement. 21.No Remedy Exclusive, No remedy herein conferred upon or reserved to the Seller or Buyer is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. 22.No Merger of Representations, Warranties. All representations and warranties contained in this Purchase Agreement shall not be merged into any instruments or conveyance delivered at closing, and the parties shall be bound accordingly. 23. Recording. This Agreement shall be filed of record with the Hennepin County Registrar of Titles. Buyer shall pay all recording costs. 8 504412v4 BR305-97 In witness of the foregoing, the parties have executed this agreement on the year and date written above. By: Tim Willson Its President By: Cornelius L. Boganey Its Executive Director STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN This instrument was acknowledged before me on this day of __________, 2017, by Tim Willson and Cornelius L. Boganey, the President and Executive Director, respectively, of the Economic Development Authority of Brooklyn Center, Minnesota, a public body corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic. (Stamp) Notary Public 5-1 504412v4 BR305-97 aU h LM& e rim r i 1'd u By: Its: STATE OF MINNESOTA ) } COUNTY OF HEINNEPIN ) The foregoing was acknowledged before me this day of 2017, by ___________ the of Novak-Fleck Incorporated, a Minnesota corporation, on behalf of the corporation. (Stamp) Notary Public This document drafted by: Kennedy & Graven, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 S-2 504412v4 BR305-97 EXHIBIT A to PURCHASE AND REDEVELOPMENT AGREEMENT I ] 1 tO] ZIIU N LSJi1liDI1HJ Deed Tax Due: $85.00 I 3(* 4'4 THIS INDENTURE, between the Economic Development Authority of Brooklyn Center, Minnesota, a Minnesota public body corporate and politic (the "Grantor"), and Novak-Fleck Incorporated, a Minnesota corporation (the "Grantee"). WITNESSETH, that Grantor, in consideration of the sum of $25,000 and other good and valuable consideration the receipt whereof is hereby acknowledged, does hereby grant, bargain, quitclaim and convey to the Grantee, its successors and assigns forever, all the tract or parcel of land lying and being in the County of Hennepin and State of Minnesota described as follows, to-wit (such tract or parcel of land is hereinafter referred to as the "Property"): Lot 1; and the South 13.5 feet of the West 21.15 feet of Lot 2, Block 3, "Humbolt Addition", Hennepin County, Minnesota. Check here if all or part ofproperty is registered (Torren) To have and to hold the same, together with all the hereditaments and appurtenances thereunto belonging. SECTION 1. It is understood and agreed that this Deed is subject to the covenants, conditions, restrictions and provisions of the Purchase and Redevelopment Agreement recorded herewith, between the Grantor and Grantee, dated as of , 2017 (the "Agreement") and that the Grantee shall not convey this Property, or any part thereof, except as permitted by the Agreement until a certificate of completion releasing the Grantee from certain obligations of said Agreement as to this Property or such part thereof then to be conveyed, has been placed of record. This provision, however, shall in no way prevent the Grantee from mortgaging this Property in order to obtain funds for the purchase of the Property hereby conveyed or for erecting the Minimum Improvements thereon (as defined in the Agreement) in conformity with the Agreement, any applicable development program and applicable provisions of the zoning ordinance of the City of Brooklyn Center, Minnesota, or for the refinancing of the same. A-i 504412v4 BR305-97 It is specifically agreed that the Grantee shall promptly begin and diligently prosecute to completion the redevelopment of the Property through the construction of the Minimum Improvements thereon, as provided in the Agreement. Promptly after completion of the Minimum Improvements in accordance with the provisions of the Agreement, the Grantor will furnish the Grantee with an appropriate instrument so certifying. Such certification by the Grantor shall be (and it shall be so provided in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants of the Agreement and of this Deed with respect to the obligation of the Grantee, and its successors and assigns, to construct the Minimum Improvements and the dates for the beginning and completion thereof. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Grantee to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance the purchase of the Property hereby conveyed or the Minimum Improvements, or any part thereof. All certifications provided for herein shall be in such form as will enable them to be recorded with the County Recorder, or Registrar of Titles, Hennepin County, Minnesota. If the Grantor shall refuse or fail to provide any such certification in accordance with the provisions of the Agreement and this Deed, the Grantor shall, within thirty (30) days after written request by the Grantee, provide the Grantee with a written statement indicating in adequate detail in what respects the Grantee has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Grantor, for the Grantee to take or perform in order to obtain such certification. SECTION 2. The Grantee's rights and interest in the Property are subject to the terms and conditions of Sections 14 and 15 of the Agreement relating to the Grantor's right to re-enter and revest in Grantor title to the Property under conditions specified therein, including but not limited to the condition subsequent that the Grantee substantially complete construction of the Minimum Improvements by September 15, 2018, and that the Grantee shall transfer or convey the Property and Minimum Improvements thereon only in accordance with Sections 14D and 14F. SECTION 3. The Grantee agrees for itself and its successors and assigns to or of the Property or any part thereof, hereinbefore described, that the Grantee and such successors and assigns shall comply with Section 14E of the Agreement for a period of 15 years after the date hereof. It is intended and agreed that the above and foregoing agreements and covenants shall be covenants running with the land for the respective terms herein provided, and that they shall, in any event, and without regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided in this Deed, be binding, to the fullest extent permitted by law and equity for the benefit and in favor of, and enforceable by, the Grantor A-2 504412v4 BR305-97 against the Grantee, its successors and assigns, and every successor in interest to the Property, or any part thereof or any interest therein, and any party in possession or occupancy of the Property or any part thereof. In amplification, and not in restriction of, the provisions of the preceding section, it is intended and agreed that the Grantor shall be deemed a beneficiary of the agreements and covenants provided herein, both for and in its own right, and also for the purposes of protecting the interest of the community and the other parties, public or private, in whose favor or for whose benefit these agreements and covenants have been provided. Such agreements and covenants shall run in favor of the Grantor without regard to whether the Grantor has at any time been, remains, or is an owner of any land or interest therein to, or in favor of, which such agreements and covenants relate. The Grantor shall have the right, in the event of any breach of any such agreement or covenant to exercise all the rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach of agreement or covenant, to which it or any other beneficiaries of such agreement or covenant may be entitled; provided that Grantor shall not have any right to re-enter the Property or revest in the Grantor the estate conveyed by this Deed on grounds of Grantee's failure to comply with its obligations under this Section 3. IN WITNESS WHEREOF, the Grantor has caused this Deed to be duly executed in its behalf by its President and Executive Director. o The Seller certifies that the Seller does not know of any wells on the described real property. O A well disclosure certificate accompanies this document or has been electronically filed. (If electronically filed, insert WDC number:o 1 am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. GRANTOR: ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER, MINNESOTA By Tim Willson Its President By Cornelius L. Boganey Its Executive Director A-3 504412v4 BR305-97 STATE OF MINNESOTA ) )ss COUNTY OF HENNEPIN ) This instrument was acknowledged before me on this day of_________ 2017, by Tim Willson and Cornelius L. Boganey, the President and Executive Director, respectively, of the Economic Development Authority of Brooklyn Center, Minnesota, a public body corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic. (Stamp) Notary Public This instrument was drafted by: Kennedy & Graven, Charted (JSB) 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (612) 337-9300 Tax Statements should be sent to: Novak-Fleck Incorporated 8857 Zealand Avenue North Brooklyn Park, MN 55445 A-4 504412v4 BR305-97 I flk . 11 J II 1 II IIFá U IIU 1 I [0) t1YA tO] I* DI II ND(S) D(S) W II DN N [I)I B-i 504412v4 BR305-97 [;DI 1 I1ltVU atSJEI1kI m iN(SAI WHEREAS, the Economic Development Authority of Brooklyn Center, Minnesota, a public body, corporate and politic (the "Grantor"), conveyed land in Hennepin County, Minnesota to Novak-Fleck Incorporated, a Minnesota corporation (the "Grantee"), by a Deed recorded in the office of the Registrar of Titles in and for the County of Hennepin and State of Minnesota, as Document Number and WHEREAS, said Deed contained certain covenants and restrictions set forth in Sections 1 and 2 of said Deed; and WHEREAS, said Grantee has performed said covenants and conditions insofar as it is able in a manner deemed sufficient by the Grantor to permit the execution and recording of this certification; NOW, THEREFORE, this is to certify that all building construction and other physical improvements specified to be done and made by the Grantee have been completed and the above covenants and conditions in said Deed and the agreements and covenants in Sections 14 and 15 of the Agreement (as described in said Deed) have been performed by the Grantee therein, and the Registrar of Titles in and for the County of Hennepin and State of Minnesota is hereby authorized to accept for recording and to record, the filing of this instrument, to be a conclusive determination of the satisfactory termination of the covenants and conditions of Sections 14 and 15 of the Agreement and the covenants and restrictions set forth in Sections 1 and 2 of said Deed; provided that the covenants set forth in Sections 14E of the Agreement, and in Section 3 of the Deed, remain in full force and effect through the period stated thereon. B-2 5044120 BR305-97 Dated: 20 ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER, MINNESOTA By Its President By Its Executive Director STATE OF MINNESOTA ) ) ss COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of______________ 20, by and , the President and Executive Director, respectively, of the Economic Development Authority of Brooklyn Center, Minnesota, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the public body corporate and politic. Notary Public This document drafted by: KENNEDY & GRAVEN, CHARTERED 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (612) 337-9300 B-3 504412v4 BR305-97 Resolution Calling for a Public Hearing Regarding the Sale of Land Located at 5301 James Ave North Subject Location Map-5301 James Ave N. & 5315 James Ave N. BACKGROUND On February 9, 2009, the EDA approved Resolution No. 2009-03, A Resolution Authorizing the Acquisition of Property in Connection with the Remove and Rebuild Program (5301 James Avenue North). The property included a vacant and foreclosed building single family slab on grade residence that was constructed in 1938 on a 6,017 sf. corner lot with 118 feet of frontage on 53rd Avenue North and 51 feet of frontage on James Avenue North. The EDA acquired the property for $19,000. PURCHASE AGREEMENT •The purchase price is $25,000. •The buyer agrees that it will construct a new single family dwelling on the Property, intended for sale to a person or persons for residential occupancy (an Owner Occupant). •The minimum improvements shall consist of a split entry (look-out) house with two car garage having approximately 1140 sf. of finished floor area (foyer, 2-bedrooms, bathroom, kitchen, dining room, living room) on the main level and approximately 840 sf. floor area for future expansion area (bedroom, family room, and bath) and a utility/laundry room on the lower level and shall be constructed substantially in accordance with the plans on file in City Hall. •The minimum improvements must be substantially completed by September 15, 2018. Construction will be considered substantially complete when the final certificate of occupancy has been issued by the City of Brooklyn Center building official. At this time, a Certificate of Completion for the Minimum Improvements will be issued by the EDA. PURCHASE AGREEMENT (continued) •The Buyer shall convey the Property to an Owner Occupant whose household income does not exceed: (a)100% of median income in the case of one or two person household Owner Occupant, or (b) 115% of the median income in the case of three or more persons household Owner Occupants. The average median income for the seven-county metropolitan area for 2017 is $86,600. •Provisions which provide the EDA with the rights to re-enter and take possession of the property in the event the buyer does not carry out the obligations with respect to the construction of the Minimum Improvements or abandons or substantially suspends construction. Recommend the Economic Development Authority consider approval/adoption of the Resolution Calling for a Public Hearing on September 10, 2017 Regarding Sale of Land Located At 5301 James Ave North QUESTIONS? Recommendations