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HomeMy WebLinkAbout2017 10-23 EDAPEDA MEETING City of Brooklyn Center October 23, 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. October 9, 2017— Regular Session 4.Commission Consideration Items a. Resolution Calling for a Public Hearing Regarding Sale of Land Located at 5801 Ewing Avenue North Requested Commission Action: —Motion to adopt resolution. 5.Adjournment S 0 MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION OCTOBER 9, 2017 CITY HALL - COUNCIL CHAMBERS IW1SXIMU]DIt1 The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Tim Willson at 7:16 p.m. 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, Acting City Engineer Mike Albers, Deputy Director of Building and Community Standards Jesse Anderson, City Attorney Troy Gilchrist, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. ITR7111 "T.1,liEu DIiWAU*l P7 Commissioner Ryan moved and Commissioner Butler seconded to approve the Agenda and Consent Agenda, and the following item was approved: 1. September 11, 2017— Regular Session Motion passed unanimously. I. all 4a. RESOLUTION NO 201746 APPROVING LOAN PROGRAM ADMINISTRATION SERVICES Deputy Director of Building and Community Standards Jesse Anderson introduced the item, discussed the history, and stated the purpose of the proposed resolution to approve a loan origination agreement with the Center for Energy and Environment and Loan Servicing Agreement with Community Reinvestment Fund. He explained the City's Lot Interest Fix Up Fund Program has been administered by the Greater Metropolitan Housing Corporation since it began in 2011. However, the City has been notified that Greater Metropolitan Housing Corporation (GMHC) is closing its Housing Resource Center and will no longer be able to 10/09/17 -1- DRAFT administer the Program. He explained that staff has worked with Center for Energy and Environment (CEE) to continue the Program and the cities of Crystal and Richfield are also intending to transfer their Fix Up Fund Program from GMHC to CEE. Mr. Anderson described the purpose of the Low Interest Fix Up Fund Program to buy down interest rates with Tax Increment Financing (TIF) 3 Housing Funds, allowing homeowners to borrow up to $50,000 for home improvement at 3%. He reviewed the Program activity since 2012 and stated the City has allotted $25,000 annually to the Program and the Community Revitalization Fund provides a match of the funds the City contributes. Mr. Anderson described the Renew Loan Program that provided down payment assistance for the purchase of vacant foreclosed properties to be owner occupied. This Program no longer issues new forgivable loans; however, remaining loans continue to require administration of these loans. Now that GMHC is closing the Housing Resource Center, the City would enter into an agreement directly with the Community Reinvestment Fund (CRF) for administration of the remaining Renew Loans. TIF 3 funds are used for this program and staff anticipates 2022 as the last year that TIF 3 housing expenditures would occur. Commissioner Graves moved and Commissioner Ryan seconded to adopt RESOLUTION NO. 2017-16 Approving Loan Program Administration Services. Motion passed unanimously. k. IJIIiUJtik1AIDItl Commissioner Ryan moved and Commissioner Graves seconded adjournment of the Economic Development Authority meeting at 7:19 p.m. Motion passed unanimously. 10/09/17 -2- DRAFT S S 0 DATE: October 23, 2017 TO: Curt Boganey, City Manag , FROM: Gary Eitel, Director of Business & Development 1 t. SUBJECT: Resolution Calling for a Public Hearing Regarding the Sale of Land Located at 5801 Ewing 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 5801 Ewing Avenue North. Background: 5801 Ewing Avenue North was a vacant and foreclosed property acquired in 2011 through the Remove & Rebuild program for the amount of $29,000. The property included a vacant single family residence constructed in 1950 that had structural and foundation deficiencies and determined to have a blighting influence on the neighborhood. The property is a corner lot with 75 feet of frontage on Ewing Avenue and 178 feet of frontage on 58th Avenue North/Bass Lake Road. Proposed Sales of 5801 Ewing Avenue North Novak-Fleck, Inc. an experienced residential building with infill development and the EDA's Remove and Rebuild Program has successfully developed and marketed 6 EDA lots (5400 Bryant, 5800 Bryant, 5331 Morgan, 5538 Logan, 5645 Brooklyn Boulevard, and 6905 Camden) and is currently in the process of building on two additional Remove & Rebuild Lots (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 !'Iissioiz: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for al/people and preserves the public trust I I I1'U M 34 L'i I ak'A [I) 1I 11A'AJ 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 November 30, 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. 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 5801 Ewing Avenue North. The adoption of this resolution would set a public hearing on the sales and/or conveyance of 5801 Ewing Avenue North for the November 13th 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 community that enhances the quality of life for all people and preserves the public (,':ist Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 2017 - RESOLUTION CALLING FOR A PUBLIC HEARING REGARDING SALE OF LAND LOCATED AT 5801 EWING AVENUE NORTH 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 November 13, 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 of Brooklyn Center at 5801 Ewing 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 of Brooklyn Center not less than 10, nor more than 20, days prior to November 13, 2017. October 23_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. 509197v2 CBR BR305-1 17 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, November 13, 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 5801 Ewing Avenue North and legally described as: Lot 5, Block 3, Grimme's 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: 509197v2 CBR BR305-1 17 I 0z IjJ> Z LU coIt) -IWflayu Ivmmw Now= douRed"imAmw wan= 21 Tm.018w""Md 22" aICLV TTMI W b -. 4Lamw^ww 7LV N.Mmmmm L CL 44L r pi IW1I I4L owhLLVTB CL m i 7WEW.i SaIVILMD VTWAVOgaMWOOMM AM gm4mom OHM$ Th, I au 6v am alwol Th, mu OL T%1 4U AU7T r M4IW1 ai4LU VJa di GROUP I SOILS I RUN 1)GWGN I1couDnoNGA i' PASSIVE RADON SYSTEM WINDOW FLASHING DETAIL '''--[1ti IllIflhhIllIll___IIIHhIIIIIlIP,____ • •:4,:-_________________ WA 5801 Ewing Aveue North, Brooklyn Center, MN 1.Parties. This Purchase and Redevelopment Agreement is made as of November 13, 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 5, Block 3, Grimme's Addition. [Tonens] 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 December 31, 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 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 509198v2 CBR BR305-117 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 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. 2 509198v2 CBR BR305-1 17 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: IZI 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 substantially in accordance with the plans on file in City Hall. Construction of the Minimum Improvements must be substantially completed by November 30, 2018. Construction will be considered substantially complete when the final 509198v2 CBRBR3O5-117 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: (i) any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the Seller, necessary 4 509198v2 CBR BR305-117 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. (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 509198v2 CBR BR305-1 17 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 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 509198v2 CBR BR305-1 17 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 (b) Second, to reimburse the Buyer for the balance of the purchase price remaining after the reimbursements specified in paragraph (a) above. Such reimbursement VA 509198v2 CBR BR305-1 17 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. 509198v2 CBRBR3O5-117 In witness of the foregoing, the parties have executed this agreement on the year and date written above. SELLER: ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER, MINNESOTA 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 S-i 509198v2 CBRBR3O5-117 ZJ Fe m ir I[Ei] i i) iv i By: Its: STATE OF MINNESOTA ) } COUNTY OF HENNEPIN ) The foregoing was acknowledged before me this day of 2017, by 3 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 509198v2 CBR BR305-1 17 EXHIBIT A to PURCHASE AND REDEVELOPMENT AGREEMENT FORM OF QUIT CLAIM DEED Deed Tax Due: $85.00 I [IJ iYA Dated: i wu'Àu oi 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 5, Block 3, Grimme' s Addition. [Torrens ] Check here if all or part ofproperty 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-i 509198v2 CBR BR305-1 17 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 November 30, 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 against the Grantee, its successors and assigns, and every successor in interest to the Property, or A-2 509198v2 CBR BR305-117 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. IZI The Seller certifies that the Seller does not know of any wells on the described real property. D A well disclosure certificate accompanies this document or has been electronically filed. (If electronically filed, insert WDC number: j.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 509198v2 CBR BR305-117 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 (TJG) 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 509198v2 CBR BR305-1 17 *i :11 :i U i (II Hi I : P DWWI 1 )J al'i I XI a FORM OF CERTIFICATE OF COMPLETION B-i 509198v2 CBR BR305-1 17 I U Ii (I Ei] LS)k' I J U t[IiI 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 509198v2 CBR BR305-1 17 Dated: , 20 ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER, MINNESOTA By Its President By Its Executive Director STATE OF MINNESOTA ) ) ss COUNTY OF HENNEP1N ) 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 509198v2 CBR BR305-1 17 Resolution Calling for a Public Hearing Regarding the Sale of Land Located at 5801 Ewing Avenue North BACKGROUND 5801 Ewing Avenue North was a vacant and foreclosed property acquired in 2011 through the Remove & Rebuild program for the amount of $29,000. The property included a vacant single family residence constructed in 1950 that had structural and foundation deficiencies and determined to have a blighting influence on the neighborhood. The property is a corner lot with 75 feet of frontage on Ewing Avenue and 178 feet of frontage on 58th Avenue North/Bass Lake Road. 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 November 30, 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 November 13, 2017 Regarding Sale of Land Located At 5801 Ewing Avenue North QUESTIONS? Recommendations