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HomeMy WebLinkAbout2017 11-13 EDAPEDA MEETING City of Brooklyn Center November 13, 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 23, 2017 —Regular Session 4. Public Hearings a.Resolution Approving Purchase and Redevelopment Agreement and Conveyance of Certain Property Located at 5801 Ewing Avenue North —On October 23, 2017, the EDA called for a Public Hearing to be held November 13, 2017; notice was published in the official newspaper on November 2, 2017. Requested Commission Action: —Motion to open Public Hearing. —Take public input. —Motion to close Public Hearing. —Motion to adopt resolution. b.Resolution Approving Purchase Agreement and Conveyance of Approximately 2.5 Acre Portion of Lot 1, Block 1, Northbrook Center 2' Addition —On August 28, 2017, the EDA approved the execution of a Letter of Intent which authorized the preparation of a Purchase Agreement and the scheduling of a Public Hearing; notice was published in the official newspaper on November 2, 2017. Requested Commission Action: —Motion to open Public Hearing. —Take public input. —Motion to close Public Hearing. —Motion to adopt resolution. 5. Commission Consideration Items 6. Adjournment FDA Agenda I[tm N0 3i 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 23, 2017 CITY HALL - COUNCIL CHAMBERS The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Tim Willson at 7:42 p.m. President Tim Willson and Commissioners Marquita Butler, April Graves, Kris Lawrence- Anderson, and Dan Ryan. Also present were Executive Director Curt Boganey, Director of Business and Development Gary Eitel, City Attorney Troy Gilchrist, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Ryan moved and Commissioner Butler seconded to approve the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. October 9,2017—Regular Session Motion passed unanimously. [S)iEI]FiI I] I IS)I II hU1 RESOLUTION NO. 2017-17 CALLING FOR A PUBLIC HEARING -REGARDING SALE OF LAND LOCATED AT 5801 EWING AVENUE!i NORTH Director of Business and Development Gary Eitel introduced the item and staff's recommendation that the EDA adopt the draft resolution to call for a public hearing regarding the sale of land located at 5801 Ewing Avenue North, which is a vacant and foreclosed property acquired in 2011 through the Remove & Rebuild Program for $29,000. He noted the property included a vacant single-family residence that had structural and foundational deficiencies and was determined to have a blighting influence on the neighborhood. This is a corner lot with 75 10/23/17 -1- DRAFT feet of frontage on Ewing Avenue and 178 feet of frontage on 58th Avenue North/Bass Lake Road. Mr. Bitel stated the proposed sale is to Novak-Fleck, Inc., who has successfully developed and marketed six 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). He described the minimum improvements required, reviewed the income standards, and presented the proposed floor plan. Mr. Bitel stated if approved, the public hearing would be held at the November 13, 2017, EDA meeting. Commissioner Ryan moved and Commissioner Graves seconded to adopt RESOLUTION NO. 2017-17 Calling for a Public Hearing Regarding the Sale of Land Located at 5801 Ewing Avenue North. Motion passed unanimously. ' 1jul11 1Ik II I Commissioner Graves moved and Commissioner Ryan seconded adjournment of the Economic Development Authority meeting at 7:46 p.m. Motion passed unanimously. 10/23/17 -2- DRAFT S . S I MIY1 U DATE: November 13, 2017 TO: Curt Boganey, City Manag FROM: Gary Eitel, Director of Business & Development SUBJECT: Resolution Approving Purchase and Redevelopment Agreement and Conveyance of Certain Property located at 5801 Ewing Avenue North Recommendation: It is recommended that the Economic Development Authority open the Public Hearing, take public input, close the Public Hearing, and consider adoption of Resolution Approving Purchase and Redevelopment Agreement and Conveyance of Certain Property Located at 5801 Ewing Avenue North. Background: On October 23, 2017, the EDA considered an offer from Novak & Fleck, Inc. to acquire the vacant lot at 5801 Ewing Avenue North for the purpose of constructing a 3-bedroom, 2-bath split entry home with a two car attached garage. The EDA adopted Resolution No. 2017-17, a resolution calling for a public hearing on November 13, 2017 regarding the sale of land located at 5301 James Avenue North. Attached for your reference is a copy of the October 23, 2017 staff memorandum and copy of the floor plans and building exterior provided by Novak-Fleck, Inc. for a 1,980 sf. split-entry home that includes the following: • 1,040 sf. on the main floor (2 bedrooms, bath, living room, dining room, kitchen, with options for a deck off of the living are); • 940 sf on the lower lookout level (identified as future 1 bedroom, bath, family room and mechanical room; and • a two car garage. On November 2, 2017, a notice of public hearing regarding this land sale was published in the Official Newspaper. Purchase and Redevelopment Agreement 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 community that enhances the quality of life for all people and preserves the public trust FA Ms',' • 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 2 bedroom house with approximately 1,980 gross square feet; lower level expansion for a future bedroom, bathroom, and family room; and a 2-car attached garage that 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. • 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. 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 Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 2017- RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT AGREEMENT AND CONVEYANCE OF CERTAIN PROPERTY LOCATED AT 5801 EWING AVENUE NORTH, BROOKLY CENTER, MN BE IT RESOLVED by the Board of Commissioners ("Board") of the Economic Development Authority of Brooklyn Center, Minnesota ("Authority") as follows: Section 1. Recitals. 1.01. The Authority is authorized pursuant to Minnesota Statutes, Sections 469.090 to 469.1081 (the "EDA Act"), to acquire and convey real property and to undertake certain activities to facilitate the development of real property by private enterprise. 1.02. To facilitate development of certain property in the City of Brooklyn Center, Minnesota (the "City"), the Authority proposes to enter into a Purchase and Redevelopment Agreement (the "Contract") between the Authority and Novak-Fleck Incorporated (the "Buyer"), under which, among other things, the Authority will convey the property located in the City at 5801 Ewing Avenue North and legally described as: Lot 5, Block 3, Grimme's Addition. [Torrens] (the "Property") to the Buyer to construct a new single family dwelling on the Property, intended for sale to an individual or family for residential occupancy. 1.03. The Authority has on this date conducted a duly noticed public hearing regarding the sale of the Property to Buyer, at which all interested persons were given an opportunity to be heard. 1.04. The Authority finds and determines 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 provide an opportunity for increased housing opportunities in the City and serve as an impetus for further development. Section 2. Authority Approval: Further Proceedings. 2.01. The Board hereby approves the Contract in substantially the form presented to the Board, including conveyance of the Property to Buyer, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Contract by those officials shall be conclusive evidence of their approval. 5092630 CBRBR305-117 2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority's obligations under the Contract as a whole, including without limitation execution of any documents to which the Authority is a party referenced in or attached to the Contract, and any deed, mortgage or other documents necessary to convey the Property to Buyer, all as described in the Contract. November 13, 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. 2 PURCHASE AND REDEVELOPMENT AGREEMENT 5801 Ewing Avenue 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. [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 October 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 CBRBR3O5-117 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: LZI 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 1040 sf. of finished floor area (foyer, 2- bedrooms, bathroom, kitchen, dining room, living room) on the main level and approximately 940 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 3 509198v2 CBR BR305-1 17 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 BR305417 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 6 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 7 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 CBR BR305-117 In witness of the foregoing, the parties have executed this agreement on the year and date written above. Ft'Mi 1iU,'1LtIIi 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 c m c i By: Its: STATE OF MINNESOTA ) } COUNTY OF HENNEPIN ) 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 509198v2 CBR BR305-117 EXHIBIT A to PURCHASE AND REDEVELOPMENT AGREEMENT FORM OF QUIT CLAIM DEED Deed Tax Due: $85.00 ECRV Dated: EMIKKIMEOMMI 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 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-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. El 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 509198v2 CBR 830-117 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 BR305-117 10.14 001119ydHvl TO PURCHASE AND REDEVELOPMENT AGREEMENT FORM OF CERTIFICATE OF COMPLETION B1 509198v2 CBRBR3O5-117 [i*iIi III [SiU a(s) a(S1i]kTiI J U a N [S)I 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 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 509198v2 CBRBR3O5-117 DATE: October 23, 2017 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business & Development 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 Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust ai LA i u'i ie iwi ,isj I 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 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 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 trust I 0zUi> 0 Z Ui 0coU, 1Ø -. w _i . IL aN ø* au o rMdI L •1 !!i'J 'WW 1W ..- V n 1= 14 mii MLON iIiJ r-___IIHIIIHHHI ____--------- -uI.III..•: -..a '. SIDRIG -HOUSE WRAP FLASHING - GROUP ISOILS ST(JDSR2I BATtS INSULATION DATE: 122117 ADDRESSxxVintsgeST IOSB SHEATHING I I COm1ACTOR NOVAK-FLECK INC LICENSE A OOOjJ I XVAUM I ------FLOOR SYSTEM [xoo1cEAuiflJ UWWNkIHM &.4 1/2" DRYWALL lwii - AV.flAM R I?tM 11VP.IlTflR - tY RA-& EXPOSED TOP OF WALLI! 'I1.J.I.A. •ç . IF REQD .I II.1. , . 1.L I.. ---2X4 FURRING W/1" SPACE IF FIN I II I II II 1 II ,.'..n'w-...-J__.J_..!.!jL_.1_._U..,.:..:... 1iIJI. .n. r- .p. ( — .1 S.II C — _J.aI•..OI ...I,:,suS,'I.l:I,l .... I I. •:...I•,'.,I .• u.!.IL_-_1-. ________________ wNCSLAB WaJJil1JI RW II CAULK ALL PASSIVE RADON sysIEU WINDOW HASHING DETAIL s...•t.:a.....: .,.':..'.gI_._. I ,/..• T EDA MEETING NOVEMBER 13, 2017 EDA ITEM NO. 4. A RESOLUTION APPROVING THE PURCHASE AND REDEVELOPMENT AGREEMENT AND CONVEYANCE OF CERTAIN PROPERTY LOCATED AT 5801 EWING AVE 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. On October 23, 2017, the EDA considered an offer from Novak & Fleck, Inc. to acquire the vacant lot at 5801 Ewing Avenue North for the purpose of constructing a 3-bedroom, 2-bath split entry home with a two car attached garage. The EDA adopted Resolution No. 2017-17, a resolution calling for a public hearing on November 13, 2017 regarding the sale of land located at 5301 James Avenue North. Notice of the public hearing was published in the November 2 , 2017 edition of the Brooklyn Center Sun Post. 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. Open the Public Hearing; Take public input; Close the Public Hearing; Adopt Resolution Approving the Purchase and Redevelopment Agreement and Conveyance of Certain Property - located at 5801 Ewing Avenue North Recommendations EDA Agenda Item N©0 4b EDA ifEM MEMORANDUM DATE: November 13, 2017 TO: Curt Boganey, City Manage FROM: Gary Eitel, Director of Business & Development SUBJECT: Resolution Approving Purchase Agreement and Conveyance of Approximately 2.5 acre portion of Lot 1, Block 1, Northbrook Center 2 Addition Recommendation: It is recommended that the Economic Development Authority open the Public Hearing, take public input, close the Public Hearing, and consider adoption of Resolution Approving Purchase and Conveyance of Approximately 2.5 acre portion of Lot 1, Block 1, Northbrook Center 2 Addition. Background: On August 14, 2017, City Council/EDA Work Session included a discussion on an option for the EDA to enter into a Letter of Intent with Ebert Construction for the commercial development of approximately 2 acres of the northern portion Lot 1, Block 1, Northbrook Center 2nd Addition (the 57th & Logan site) for a four story, 112,000 sf. commercial storage building. The consensus the EDA was a favorable response to the following policy issues: 1.Does the EDA believe that the development plan submitted by Ebert Construction is compatible with the EDA's Targeted Redevelopment Strategy for the 57th & Logan Site? 2.Does the EDA wish to proceed with a Letter of Intent and Purchase Agreement with Ebert Construction for the conveyance of a portion of the 57th & Logan Avenue site? On August 28, 2017, the EDA adopted Resolution No. 2017M11, A Resolution Approving and Authorizing the Execution of a Letter of Intent to Sell the Property at 1950 57" Avenue North. Attached for reference is a copy of the August 28th staff memorandum. Purchase and Redevelopment Agreement The City Attorney has prepared the enclosed Purchase Agreement which includes the following components: Purchase Price: $346,000 Earnest Money: $ 50,000 The buyer/developer will prepare a site plan and storm water plan needed for the development of the 4 story - 112,000 sf. commercial storage building. Mission: Ensuring an attractive, clean, safe, inclusive conilnunity that enhances the quality of life for all people and preserves the public trust The EDA will be responsible for the necessary zoning and subdivision approvals to create this as a buildable lot. The buyer/developer will have a 90 day Due Diligence Period with up to two 60 day extension periods to complete their site investigations, testing, financing, and governmental approvals including site & building plan and environmental approvals. The closing date will occur within 30 days day the expiration of the Due Diligence Period or sooner as mutually agreed by EDA and buyer/developer. Budget Issues: The proceeds from this land sale are considered Tax Increment Revenues and will be placed back into the TIF 3 Fund. Targeted Redevelopment Mission: Ensuring on attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public (rust Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 2017- RESOLUTION APPROVING PURCHASE AGREEMENT AND CONVEYANCE OF APPROXIMATELY 2.5 ACRE PORTION OF LOT 1, BLOCK 1, NORTHBROOK CENTER 2ND ADDITION TO E&R INVESTMENTS LOCATED IN, BROOKLYN CENTER, MN BE IT RESOLVED by the Board of Commissioners ("Board") of the Economic Development Authority of Brooklyn Center, Minnesota ("Authority") as follows: Section 1. Recitals. 1.01. The Authority is authorized pursuant to Minnesota Statutes, Sections 469.090 to 469.1081 (the "EDA Act"), to acquire and convey real property and to undertake certain activities to facilitate the development of real property by private enterprise. 1.02. To facilitate development of certain property in the City of Brooklyn Center, Minnesota (the "City"), the Authority proposes to enter into a Purchase Agreement (the "Contract") between the Authority and E & R Investments, LLC (the "Buyer"), under which, among other things, the Authority will plat property located in the City and legally described as: Lot 1, Block 1, NORTHBROOK CENTER 2ND ADDITION ("Parcel 1") and convey to Buyer an approximately 2.5 acres of the northern portion of Lot 1, Block 1, NORTHBROOK CENTER 2ND ADDITION (the "Property" or "Parcel 2") to the Buyer to construct a storage facility. 1.03. The Authority has on this date conducted a duly noticed public hearing regarding the sale of the Property to Buyer, at which all interested persons were given an opportunity to be heard. 1.04. The Authority finds and determines 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 promote business within the City, increase tax base, and serve as an impetus for further development. Section 2. Authority Approval Further Proceedings. 2.01. The Board hereby approves the Contract in substantially the form presented to the Board, including conveyance of the Property to Buyer, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Contract by those officials shall be conclusive evidence of their approval. 510349v2 CBR BR305-122 2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority's obligations under the Contract as a whole, including without limitation execution of any documents to which the Authority is a party referenced in or attached to the Contract, and any deed, mortgage or other documents necessary to convey the Property to Buyer, all as described in the Contract. November 13, 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. 2 uasi uii :r aw UM 1I I THIS PURCHASE AGREEMENT ("Agreement") is made and entered into as of the Effective Date (as defined below in Section 10.16) by and between E&R Investments, LLC, a Minnesota limited liability company, ("Purchaser") and the Economic Development Authority of Brooklyn Center, a public body corporate and politic under the laws of the State of Minnesota ("Seller"). In consideration of the mutual covenants and agreements contained herein, including the costs and expenses incurred by Purchaser to perform due diligence related to the acquisition of the Property, and for other good and valuable consideration, Purchaser and Seller do hereby make and enter into this Agreement upon the following terms and conditions: ARTICLE I PURCHASE AND SALE 1.1 Agreement of Purchase and Sale. Seller agrees to sell to Purchaser that certain portion of Parcel 1, described as Parcel 2 below, and Purchaser agrees to buy from Seller, that real property that Seller owns, or will own or have control over, within the land located in the City of Brooklyn Center, County of Hennepin, State of Minnesota, together with any improvements thereon, and all easements and rights benefitting or appurtenant to Parcel 2. The parcels that are the subject of this Agreement are described as follows: Parcel 1: Seller is the fee owner of Parcel 1, which is described as Lot 1, Block 1, NORTHBROOK CENTER 2ND ADDITION ("Parcel 1"). Parcel 2: Is part of Parcel 1, is to be split as part of the replatting of the Seller's property, and is generally described as approximately 2.5 acres of the northern portion of Lot 1, Block 1, NORTHBROOK CENTER 2ND ADDITION. Parcel 2 is hereinafter referred to as "Parcel 2" or the "Property." Outlot A: Seller is also the fee owner of Outlot A, which is described as Outlot A, NORTHBROOK CENTER 2ND ADDITION. Outlot A contains approxaimtely 0.85 acres, is located in the northern most tip of the property, and contains a monitoring well that was installed as part of a superfund site cleanup. Parcel 2 does not contain any protion of Outlot A. 1.2 Purchase Price and Manner of Payment. The purchase price for the parcels of the Property shall be as follows: (a) For Parcel 2 the purchase price shall be Three Hundred, Forty-Six Thousand and no/100 Dollars ($346,000.00), the "Purchase Price." The Purchase Price, subject to prorations and adjustments set forth in this Agreement, shall be payable in frill at Closing in cash, by wire transfer of immediately available funds or by a Title Company check to Seller. 1.3 Earnest Money. Within five days after this Agreement is fully executed, Purchaser shall deposit with the Title Company (as defined below) the sum of Fifty Thousand and no/100 Dollars ($50,000.00) ("Earnest Money") in good funds, either by certified bank or cashier's check or by wire transfer. The Title Company shall hold the Earnest Money in accordance with the terms and 509209v4 TJG BR305-122 conditions of this Agreement and any escrow agreement entered into by Seller, Purchaser and Title Company. Interest, if any, accruing on such sum shall become a part of the Earnest Money and shall be distributed as Earnest Money in accordance with the terms of this Agreement. The Earnest Money shall be refundable as set forth in this Agreement. The Earnest Money shall be applied towards payment of the Purchase Price. 1.4 Subdivision. Parcel 2 is part of Parcel 1, which is a larger parcel owned by the Seller that needs to be subdivided in accordance with this Section and Section 2.2. The parties understand that the subdivision is necessary to procure a legal description of the Property for Seller's deed, Purchaser's mortgage, if any, and obtaining acceptable title insurance for the Property. The subdivision or platting of the Property shall be done in compliance with applicable state, county and municipal laws, ordinances and regulations relating to the subdivision or platting of property. Seller shall, at its cost, be responsible for the subdivision of the Property and obtaining such platting and subdivision approvals as are necessary so that the Property will be a legally subdivided tax parcel or parcels as of the date of Closing. All costs assessed or charged (whether by special assessment or otherwise) or incurred for offsite improvements, utility improvements or other public improvements required by the City of Brooklyn Center or other governmental authority related to the development of Parcel 2 shall be the responsibility of Seller. The obligations of Seller contained in this Section shall survive and be enforceable after Closing and delivery of the deed. 1.5 Stormwater. The parties acknowledge and agree a stormwater plan will need to be developed and implamented for the entire site, which may involve one or more stormwater ponds that will collect stormwater from both Parcel 1 and Parcel 2. The parties understand the development of either parcel will require review and approval by the local watershed management organization, which the parties may seek jointly and may enter into a separate agreement for the construction and maintenance of the required stormwater facilities. Buyer shall be responsible for providing any engineering and stormwater calculations that may be needed as part of the stormwater approval process for Parcel 2. ARTICLE 2— TITLE AND SURVEY 2.1 Title Examination. Purchaser has obtained an ALTA title insurance commitment ("Title Commitment") from Commercial Partners Title ("Title Company") covering the entire Property. The Title Commitment shows all matters affecting title to the Property and binds the Title Company to issue at Closing an ALTA 2006 form B owner's title insurance policy to Purchaser in the full amount of the Purchase Price ("Title Policy"). The Title Commitment includes copies of all recorded documents affecting the Property with proper searches for bankruptcies, judgments, liens and assessments. Purchaser shall pay the cost of the premium for the Title Policy and any endorsements required by Purchaser. 2.2 Survey/Plat. Purchaser shall, at its option and cost, employ a surveyor, licensed or registered by the state where the Property is located, to prepare an ALTA survey or plat of the Property ("Survey/Plat"). The Survey/Plat shall include the requirements and items determined by Purchaser, including the proposed location and square footage of the Property, and any lots/outlots proposed by Seller. A copy of the Survey/Plat shall be delivered to Seller when obtained by the Purchaser. The Seller shall be responsible for replating Parcel 1 to establish Parcel 2 and any other parcels the Seller may wish to establish on the retained portion of Parcel 1. Purchase Agreement Page 2 of 12 509209v4 TJG BR305-122 2.3 Title Objections Cure of Title Objections. Purchaser shall have until the later of the expiration of the Due Diligence Period or the date that is 10 days after receipt of both the Title Commitment and Survey to notify Seller in writing of such objections as Purchaser may have to anything contained in the Title Commitment or Survey ("Objections"). Purchaser's failure to make Objections within such time period will constitute a waiver of Objections. However, any matter which is not referenced in the Title Commitment and is first recorded, discovered or disclosed after the effective date of the Title Commitment, whichever is later may be objected to by Purchaser in the manner described herein. Purchaser need not object to mortgages or other liens. If not sooner satisfied, Seller shall cause the Property to be released from any mortgages or other liens against the Property at the closing. Any matter shown on the Title Commitment, other than a mortgage or other lien and not objected to by Purchaser shall be a "Permitted Encumbrance" hereunder. Within seven days after receipt of Purchaser's Objections, Seller shall notify Purchaser in writing if Seller elects not to cure the Objections. If such notice is given within said seven day period, Purchaser may either waive the Objections or terminate this Agreement by giving written notice of termination to Seller within 10 days after Seller's notice is given to Purchaser. If written notice by Seller is not given within the 10 day period, Seller shall use commercially reasonable efforts to correct any Objections within 30 days after the expiration of the 10 day period ("Cure Period"). If the Title Company is willing to issue a title insurance policy to Purchaser that does not except from title insurance coverage an item Purchaser has objected to, the objection relating to such item shall be deemed cured. If the Objections are not cured within the Cure Period, Purchaser shall have the option to do any of the following: (a)Terminate this Agreement by giving written notice to Seller within 10 days after the expiration of the Cure Period and neither Seller nor Purchaser shall have further rights or obligations hereunder. In such event Seller shall return all Earnest Money to Purchaser. (b)Waive the objections and proceed to close without reduction in the Purchase Price. ARTICLE 3- INSPECTION AND CONTINGENCIES 3.1 Right of Inspection. As of the Effective Date, Purchaser and its agents shall have the right to access the Property to make physical and visual inspections, investigations, surveys and testing as the Purchaser deems necessary. Purchaser agrees that its on-site activities at the Property shall be conducted at reasonable times and shall not unreasonably interfere with the use of the Property by Seller. Seller agrees to meet with the parties conducting any inspections, investigations, surveys and testing and to cooperate in answering questions concerning the Property as requested. Purchaser shall pay all costs and expenses of such inspections, investigations, surveys and testing conducted by Purchaser. Purchaser shall repair and restore any damage to the Property caused by Purchaser's activities at the Property to substantially the same condition as existed prior to such entry. Purchaser agrees to indemnify and hold Seller and the Property harmless from all claims, costs, expenses or damages, including reasonable attorneys' fees, for injuries or damages resulting from such activities. Seller agrees to hold Purchaser harmless from all claims, costs or damages, including reasonable attorneys' fees, for damages resulting from Purchaser's reporting of any hazardous substances revealed by Purchaser's actions under this Section. These obligations of Purchaser shall survive Closing or any termination of this Agreement. 3.2 Due Diligence Period. The "Due Diligence Period" shall be from the Effective Date through the date that is 90 days after the Effective Date. Purchase Agreement Page 3 of 12 509209v4 TJG BR305-122 3.3 Extension of Due Diligence Period. Purchaser shall have the right to obtain up to two consecutive 60 day extensions of the Due Diligence Period upon written notice to Seller. Upon such extension by the Purchaser the definition of Due Diligence Period shall be changed to such extended date. To exercise the first 60 day extension, Purchaser shall provide written notice to Seller prior to the expiration of the Due Diligence Period. To exercise the second 60 day extension, Purchaser shall provide written notice to Seller prior to expiration of the first extension period. The consideration for these extensions shall be the due diligence costs that Purchaser has incurred in the development of the Property, and no additional monetary consideration shall be required. 3.4 Purchaser's Contingencies. The obligations of Purchaser under this Agreement are contingent upon each of the following: (a)Title and Survey. Title and Survey shall have been found acceptable by Purchaser as provided in Article 2. (b)Testing and Inspection. Purchaser shall have determined, in its sole discretion, on or before the expiration of Due Diligence Period, that it is satisfied with the condition of the Property and the results of all inspections and testing of the Property, including, but not limited to, all soil tests, well tests, engineering inspections, property condition reports, hazardous waste and environmental reviews of the Property. (c)Due Diligence Materials and Other Documents Provided By Seller. Purchaser shall have determined, in its sole discretion, on or before the expiration of the Due Diligence Period, that it is satisfied with the Due Diligence Materials and other documents and information concerning the Property provided by Seller under this Agreement. (d)Government Approvals. Purchaser shall have determined, in its sole discretion, on or before the expiration of Due Diligence Period, that it is satisfied that all governmental approvals, permits or authorizations necessary or desired by Purchaser for the Property have or will be obtained. Purchaser shall have determined, in its sole discretion, on or before the expiration of the Due Diligence Period, that all applicable zoning ordinances, building and use restrictions and codes, required building permits, and any requirements with respect to licenses, permits and agreements necessary for the lawful use and operation of the Property as Purchaser elects, have been or will be issued or complied with. (e)Third Party Approvals. Purchaser shall have obtained from any third party, on or before the expiration of the Closing, all agreements, covenants, approvals, easements and adequate assurance that Purchaser, in its sole discretion, deems necessary or appropriate for use of the Property as contemplated by Purchaser. (f)Flood Plain. Purchaser shall have determined, in its sole discretion, on or before the expiration of the Due Diligence Period, that the Property is not located within a flood area unacceptable to Purchaser. (g) Development Feasibility. Purchaser shall have determined, in its sole discretion, on or before the expiration of Closing, that it is satisfied with the feasibility of its development of the Property. Purchase Agreement Page 4 of 12 509209v4 TJG BR305-122 (h)Financing. Purchaser having obtained a financing commitment in order for Purchaser to purchase and develop the Property, on or before the Closing, at market rates and terms acceptable to Purchaser, in its sole discretion. (i)PUD. Purchaser, on or before the Closing, shall have received all approvals for a planned unit development ("PUD") and site plan from the City of Brooklyn Center for the Property and met all conditions imposed on the PUD, all so such PUD and site plan approvals are acceptable to Purchaser in its discretion to accommodate its proposed use of the Property. 3.5 Right of Termination. Seller agrees that in the event Purchaser determines in its sole discretion that a contingency contained in Section 3.4 has not been satisfied on or before the date specifically set forth for the contingency, Purchaser shall have the right to terminate this Agreement by written notice to Seller on or before three days after the expiration of Due Diligence Period, or three days after the date specifically set forth for the contingency, as applicable. Upon such termination, the Earnest Money shall be returned to Purchaser. If Purchaser acknowledges the satisfaction or waiver of a contingency by written notice to Seller, or if Purchaser does not provide a written notice of termination by the date required, Purchaser shall no longer have a right to terminate this Agreement under this Section because of such contingency. All the contingencies set forth in Section 3.4 are specifically for the benefit of the Purchaser. ARTICLE 4- REPRESENTATIONS AND WARRANTIES 4.1 "As Is" Sale and Release. Subject only to the express representations and warranties made under this Agreement, Purchaser is purchasing the Property "as is" and "where is" based on its own investigation and inquiry and is not relying on any representation or warranty of Seller. Subject only to the express representations and warranties made under this Agreement, Purchaser waives any and all warranties pertaining to the Property whether express, implied, statutory or other. Subject only to the express representations and warranties made under this Agreement, Purchaser hereby forever waives, releases and covenants not to bring any demand, claim, cost recovery action or lawsuit it may now or hereafter have or accrue against Seller, its officials, employees, agents, contractors and assigns arising from any environmental release or matter related to the Property, including, but not limited to: (a) any hazardous substances currently located or which come to be located within the Property; or (b) the release of any hazardous substances into, from or through the Property, whether or not attributable to the handling, storage, generation, transportation or disposal of hazardous substances or the mere presence of hazardous substances within the Property; or (c) any hazardous substances which have migrated, leached or traveled onto or off of the Property from any source. This section shall survive and be enforceable for an unlimited period after the date of Closing and delivery of the deed. 4.2 Representations and Warranties of Seller. Seller represents and warrants to Purchaser as follows: (a) Organization and Authority. Seller is a public body corporate and politic duly organized and validly existing in good standing under the laws of Minnesota. Seller has the requisite power and authority to enter into and perform this Agreement. Seller has or will have the requisite power and authority to transfer all of the Property Purchase Agreement Page 5 of 12 5092090 TJG BR305-122 in accordance with this Agreement. The persons signing this Agreement and Seller's closing documents on behalf of the Seller are authorized to do so. (b)Exclusive Right to Purchase. Seller and its agents shall not conduct any discussions or negotiations or respond in writing to any solicitations by third parties relating to the purchase of the Property during the term of this Agreement. Seller has not entered into any other contracts for the sale of the Property, nor has Seller granted any rights of first refusal or options to purchase the Property or any other rights to others that might prevent the consummation of this Agreement, and Seller will not enter into any such contracts relating to the sale of the Property with any other parties. (c)Due Diligence Materials and Other Documents Provided by Seller. Seller shall deliver to Purchaser, within five days after the Effective Date, copies of all of the following relating to or affecting the Property which Seller has access to or are in Seller's possession or control: soil and environmental reports and tests; inspection notices, reports and results; surveys; site plans; title work; property tax and special assessment bills together with any notices concerning assessment, valuation or property tax or special assessment; agreements with any governmental authority; notices of violation from and other correspondences with governmental authority; governmental authority and third party consultants responses and conclusions with respect to review of the Property; and any other material correspondences and documents, notices and items relating to or affecting the Property. Seller shall also deliver to Purchaser, within five days after the Effective Date, correct and complete copies of all existing agreements or contracts related to or affecting the Property. The obligation of Seller to provide the above referenced items is ongoing through Closing in the event that Seller gains access to, or possession or control of, any additional or updated above referenced items after the Effective Date. Seller shall cooperate in all reasonable respects with Purchaser's due diligence efforts. Seller shall not be entitled to any compensation in connection with such cooperation. (d)Proceedings. There is no action, litigation, investigation, condemnation, eminent domain or proceeding of any kind pending or threatened against the Property to Seller's actual knowledge. Seller has not received any notice from any governmental authority as to the violation of any law, ordinance or regulation or from any third party as to the breach of any covenants or easements affecting the Property. (e)Wells. Individual Sewage Treatment Systems and Storage Tanks. There are no wells or individual sewage treatment systems, whether in use or abandoned, at the Property. To the Seller's actual knowledge, there are no underground or above ground storage tanks of any size or type at the Property. (I) Seller Activities shall not Change the Property. Seller shall not perform or authorize any activities that change the physical characteristics of the Property from its existing state as of the date of the Effective Date. Seller shall not perform or authorize any removal or alteration of any improvements, trees or vegetation at the Property and Purchase Agreement Page 6 of 12 509209v4 TJG BR305-122 shall not perform or authorize any excavation or earth moving after the Effective Date. The parties understand and agree the Seller will, if required, perform any monitoring or related activities on the Property prior to or after Closing. (g) Seller's Cooperation. Purchaser shall cooperate in all reasonable respects and in good faith with Seller in obtaining governmental and third party approvals, consents and agreements, and shall execute such applications, permits, agreements and other documents as may be reasonably required by Purchaser, provided that such items may be effective as of the Closing. This obligation shall include, but not be limited to, the cooperation of Purchaser in the subdivision of Parcel 1 by Seller so that the Property is legally subdivided tax parcels and the execution of any plat and other governmental agreements and documents required for this subdivision. Purchaser shall not be entitled to any compensation or reimbursement of costs in connection with such cooperation. The representations and warranties contained in this Section shall survive and shall be true and correct on the Effective Date and as of the Closing. Seller shall indemnify and hold Purchaser harmless from, any expenses or damages, including reasonable attorneys' fees, that Purchaser incurs by reason of, or arising out of, any breach of any of the above representations and warranties, whether such breach is discovered before or after Closing. This indemnification obligation of Seller shall survive Closing or any termination of this Agreement. ARTICLE 5- CLOSING 5.1 Time and Place. Closing ("Closing") shall occur as follows. Purchaser shall be required to purchase Parcel 2, in one Closing. The Closing for Parcel 2 shall occur within 30 days after the expiration of the Due Diligence Period, our sooner as mutually agreed by Purchaser and Seller; provided that any extension of the Closing under this subsection shall be only allowed for administrative issues and shall not be greater than 10 days or upon such earlier date agreed upon by the parties. The Closing for Parcel 2 may be extended by Purchaser in the event that an environmental release or related action by MPCA has been initiated by Purchaser to attempt to obtain marketable title and release of interest in this parcel. The Closing for Parcel 2 may be extended by Purchaser for up to six months after expiration of Due Diligence Period if Purchaser is pursuing an MPCA release or related action to attempt to obtain marketable title and interest in the Property. Seller and Purchaser may mutually agree in writing to extend the Closing for up to 90 days. Purchaser shall use reasonable efforts to give at least 10 days' notice to Seller of the extended Closing for Parcel 2. This Closing may occur by deed and money escrow. 5.2 Seller's Obligations at Closing. At the Closing of the Property, Seller shall deliver to Purchaser a duly executed quit claim deed in recordable form, conveying to Purchaser fee simple marketable title to the Property being conveyed to Purchaser and all rights appurtenant, free and clear of all mortgages, liens and encumbrances together with a seller's affidavit, FIRPTA affidavit, evidence as to the authority of the persons executing documents on behalf of Seller, well certificate and all other documents reasonably necessary to consummate the transaction contemplated by this Agreement. Seller shall also deliver possession of the parcel of Property being purchased to Purchaser at the Closing. 5.3 Purchaser's Obligations at Closing. At the Closing of the Property, Purchaser shall pay to Seller the Purchase Price for the Property being purchased as set forth in Section 1.2, as increased or Purchase Agreement Page 7 of 12 509209v4 TJO BR305-122 decreased by prorations or adjustments set forth in this Agreement, and shall deliver to Seller all other documents reasonably necessary to consummate the transaction contemplated by this Agreement. Purchaser and Seller agree that the Earnest Money shall be delivered to Seller at the Closing of the Property being purchased and applied towards payment of the Purchase Price for the Property. 5.4 Closing Costs. Seller and Purchaser agree to the payment of costs in connection with the Closing as follows: (a) Seller and Purchaser each will pay one-half of any reasonable and customary closing fees or charges imposed by the Title Company for the Closing; (b) Seller shall pay all state deed tax for the recording of the deed; (c) Seller shall pay the cost of recording all documents necessary to place record title in the condition warranted by Seller in this Agreement and Purchaser will pay the cost of recording the deed conveying the Property to Purchaser; and (d) any other costs required to be paid by Purchaser or Seller at Closing pursuant to this Agreement. ARTICLE 6- REAL ESTATE TAXES AND SPECIAL ASSESSMENTS 6.1 Real Estate Taxes and Special Assessments. On or before the Closing, Seller shall pay all general real estate taxes for the parcel of the Property being purchased due and payable in years prior to the year of Closing. General real estate taxes for the Property being purchased due and payable in the year of Closing shall be apportioned between Purchaser and Seller based on a 365 day calendar year as if Purchaser were vested with title to the Property on the Closing. Purchaser shall pay or assume all special assessments levied or pending against the Property as of the Closing. General real estate taxes for the parcel of the Property being purchased shall be calculated by uniformly allocating the general real estate taxes for the Property and the other property being subdivided that is retained by Seller on a square foot basis. Seller shall remain responsible for the payment of all general real estate taxes, all levied and pending special assessments and all deferred taxes for that portion of the property being subdivided that is retained by Seller. If required as a result of the subdivision, Purchaser and Seller agree to prepay at the Closing their share of the general real estate taxes and special assessments allocated to their property for the entire year of Closing. The obligations of Purchaser and Seller contained in this Section shall survive Closing and delivery of the deed. ARTICLE 7- COMMISSIONS 7.1 Brokerage Commissions. Seller represents and warrants that it has not been involved with any real estate brokers or agents on its behalf in connection with the transaction contemplated under this Agreement and that no commissions or costs are owed or being paid to any real estate broker or agent in connection with this transaction. Purchaser represents and warrants that it has not been involved with any real estate brokers or agents on its behalf in connection with the transaction contemplated under this Agreement and that no commissions or costs are owed or being paid to any real estate broker or agent in connection with this transaction. Purchaser and Seller agree to indemnify and hold harmless the other party from any loss, liability, cost, damage or expense resulting from, or relating to, the breach of its representation under this Section and any claim for real estate commissions or costs resulting from the indemnifying party's actions in connection with this transaction not provided for above. These obligations of Purchaser and Seller shall survive Closing or any termination of this Agreement. Purchase Agreement Page 8 of 12 509209v4 TJG BR305-122 ARTICLE 8- EMINENT DOMAIN 8.1 Eminent Domain. If eminent domain proceedings, other than the eminent domain proceedings that may be necessary for Seller to acquire Parcel 1 are commenced prior to the Closing against all or any part of the Property prior to it being conveyed to Purchaser, Seller shall immediately give written notice to Purchaser, together with a legal description of the property being taken, and Purchaser shall have the right, at its option, to terminate this Agreement by giving written notice within 15 days of Seller's notice. If Purchaser gives notice of termination of the Agreement under this Section, the Agreement shall terminate and the Earnest Money shall be returned to Purchaser. If Purchaser does not give notice of termination, then the parties shall proceed to Closing, with no reduction in the Purchase Price, and Seller shall assign to Purchaser all of Seller's right, title and interest to appear in and receive any award from such proceeding. In the event any awards are made prior to Closing, Seller shall place such awards in escrow with the Title Company, which will release such awards to Purchaser upon Closing or to Seller upon termination of this Agreement. ARTICLE 9- DEFAULT AND REMEDIES 9.1 Default. Purchaser or Seller shall be in default under this Agreement if either fails to observe, perform or comply with any term, condition or obligation of this Agreement and such failure continues for a period of 10 days after written notice of the failure to the Purchaser or Seller from the other party. 9.2 Remedies. Upon default by a Purchaser or Seller, the other party shall have the following remedies: (a)Purchaser's Remedies. Upon Seller's default under this Agreement, then the remedies available to Purchaser shall be (1) to terminate this Agreement pursuant to law by written notice to Seller and to receive the return of the Earnest Money prior to the Closing of the first parcel of Property, and (2) to seek specific performance of this Agreement on or before six months after Seller's default during which time the Closing will be postponed until such time as Seller has cured its default, and (3) to seek any remedy or damages available at law or in equity. All rights, powers, options or remedies available to Purchaser pursuant to this Agreement shall be cumulative and not alternative, and the exercise of one right, power, option, or remedy shall not bar any other rights, powers, options or remedies allowed hereunder or by applicable law. The rights and remedies of this Section shall survive Closing or any termination of this Agreement. (b)Seller's Remedies. Upon Purchaser's default under this Agreement prior to the Closing of the Property, then the sole and exclusive remedy available to Seller shall be to terminate this Agreement pursuant to law by written notice to Purchaser and upon such termination to receive the Earnest Money as liquidated damages. Upon such termination, Purchaser shall be released from all liability hereunder and neither party shall have further rights or obligations under this Agreement. Seller expressly waives its rights to seek damages in excess of the liquidated damage amount in the event of Purchaser's default. Seller has agreed to these liquidated damages because of the difficulty of ascertaining Seller's actual damages given the uncertainties of the Purchase Agreement Page 9 of 12 5092090 TJG BR305-122 real estate market, fluctuating property values and differences of opinion with respect to such matters. The rights and remedies of this Section shall survive Closing or any termination of this Agreement. ARTICLE 10- MISCELLANEOUS 10.1 Successors or Assigns. This Agreement shall be binding upon and inure to the benefit of the parties, and their respective successors and assigns. 10.2 Severability. In the event any provision of this Agreement shall be held to be invalid, unenforceable or in conflict with the law of the jurisdiction, the remaining provisions of this Agreement shall continue to be valid, enforceable and not be affected by such holding. 10.3 Waiver. No term or condition of this Agreement will be deemed waived or amended unless expressed in writing. The waiver of any condition or the breach of any term will not be a waiver of any subsequent breach of the same or any other term or condition. 10.4 Assignment. Purchaser may not assign its rights under this Agreement, without prior written consent of Seller. Seller may assign its rights under this Agreement. 10.5 Notices. Any notice required or permitted pursuant to this Agreement shall be in writing and delivered by (a) personal delivery, (b) reputable overnight delivery service, or (c) United States mail, postage prepaid, either certified or first class mail. All notices shall be sent to a party at the address set forth below, or to such other address or person as the party shall have designated in writing. Notices shall be deemed given upon the earlier of the date of actual receipt or (i) as of the earlier of the date of delivery or the date of first attempted delivery if by personal delivery or overnight delivery, or (ii) as of the earlier of the date of delivery or the date the post office first leaves notice of the mailing if by certified mail. If to Purchaser: E&R Investments, LLC Attn: Gregory R. Ebert 23350 County Road 10 Corcoran, MN 55357 Fax: (763) 498-9951 Email: gebertebertconst.com With a copy to: If to Seller: City of Brooklyn Center Curt Boganey, City Manager 6301 Shingle Creek Pkwy Brooklyn Center, MN 55430 With a copy to: Kennedy & Graven, Chartered Attn: Troy Gilchrist 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 Purchase Agreement Page 10 of 12 509209v4 TJG BR305-122 10.6 Further Assurances. Each party agrees that it will execute and deliver such other documents and take such other action, whether prior or subsequent to Closing, as may reasonably be requested by the other party, to further consummate the transaction contemplated by this Agreement, without further consideration. 10.7 Termination. If this Agreement is terminated by either Purchaser or Seller pursuant to a right of termination expressly set forth in this Agreement, neither party shall have any further rights or obligations under this Agreement, except for the obligations concerning the Earnest Money and to the extent any rights or obligations expressly survive such termination. 10.8 Time of Essence. Time is of the essence of this Agreement. 10.9 Calculation of Time Periods. Except as specifically set forth in this Agreement, in computing any period of time described in this Agreement, the day of the act or event after which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included, unless such last day is on a Saturday, Sunday or legal holiday, in which event the period shall run until the end of the next business day following such Saturday, Sunday or legal holiday. As used herein, the term "legal holiday" means any state or federal holiday for which financial institutions or post offices are generally closed in the state where the Property is located. 10.10 Governing Law. This Agreement shall in all respects be interpreted, construed and enforced according to the laws of the state where the Property is located. 10.11 Counterparts. This Agreement may be executed separately and independently in any number of counterparts and each and all of which together shall be deemed to have been executed simultaneously and regarded as one agreement dated the Effective Date. 10.12 Captions. The captions and headings contained in this Agreement are for convenient reference only and shall not affect the interpretation of this Agreement. 10.13 Attorneys' Fees and Costs. Purchaser and Seller will pay their own attorneys' fees for the transaction contemplated by this Agreement, except as follows. 10.14 Survival. All of the terms of this Agreement, including, without limitation, the representations and warranties contained herein, shall survive and be enforceable after the Closing and delivery of the deed. 10.15 Entire Agreement/Amendment. This Agreement constitutes the entire agreement between the parties with respect to the subject matter herein and fully supersedes all prior written or oral agreements between the parties with respect to such matters. No other agreement, statement or promise made by any party and no amendment, modification or other change of any provision of this Agreement shall be effective unless in writing signed by the parties. 10.16 Effective Date. The date that the last party executed this Agreement as evidenced by the dates in the signature block of this Agreement shall constitute the Effective Date. If either party fails to date this Agreement by its signature, the date by the signature of the other party shall constitute the Effective Date. Upon execution, a party shall promptly forward a signed original to the other party. Purchase Agreement Page I 1 of 12 5092090 TJG BR305-122 IN WITNESS WHEREOF, Purchaser and Seller have executed this Purchase Agreement as of the Effective Date. PURCHASER: E&R Investments, LLC a Minnesota Limited Liability Company By: Print: Gregory R. Ebert Title: President Dated: SELLER: ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER, a public body corporate and politic under the laws of the State of Minnesota By: Name: Tim Willson Title: President By: Name: Curt Boganey Title: Executive Director Purchase Agreement Page 12 of 12 509209v4 TJG BR305-122 EDA JITEM MEMORANDUM DATE: August 28, 2017 TO: Curt Boganey, City Manag FROM: Gary Eitel, Director of Business & Development SUBJECT: Resolution Approving and Authoring the Execution of a Letter of Intent to Sell Property at 1950 57th Avenue North Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of the Resolution Approving and Authoring the Execution of a Letter of Intent to Sell Property at 1950 57th Avenue North Background: On August 14, 2017, City Council/EDA Work Session included a discussion on an option for the EDA to enter into a Letter of Intent with Ebert Construction for the commercial development of approximately 2 acres of the northern portion Lot 1, Block 1, Northbrook Center 2nd Addition (the 57th & Logan site) for a four story, 112,000 sf. commercial storage building. The consensus the EDA was a favorable response to the following policy issues: 1.Does the EDA believe that the development plan submitted by Ebert Construction is compatible with the EDA's Targeted Redevelopment Strategy for the 57 t "& Logan Site? 2.Does the EDA wish to proceed with a Letter of Intent and Purchase Agreement with Ebert Construction for the conveyance of a portion of the 57' & Logan Avenue site? Attached for reference is a copy of the August 14, 2017 staff memorandum. Letter of Intent with Ebert Construction for a Commercial Storage Building at 57th & Logan: The proposal by Ebert Construction provides for the acquisition of approximately 2 acres within the northern portion of the & Logan Site for the construction of a four story, 112,000 sf. commercial storage building. The site plan illustrates the positioning of the building to the south of Outlot A, presently the location of the MPCA's monitoring wells for the ongoing groundwater and vaper investigation of contamination caused by a former dry cleaning operation. Additionally, Ebert Construction has indicated they would coordinate on-site storm water management with the planned development of the southern portion of the 57" & Logan site. The proposed purchase price is $346,000 (approximately $4.00 per sf.), including $50,000 in earnest money. Mission: Ensuring an attractive, clean, safe, inchisive comnhlulity that enhances the quality of life for all people (111(1 preserves the pu b/ic trust I I JU I I U I 3k'A [I] 1lJi The developer has indicated that their proposal does not involve any financial assistance, noting that they have discussed this development with the original environmental engineer employed by the EDA (Scoff Tracy) and the original clean up contractor (John Hink), and that any remaining environmental work to be done on this site will not affect their offer of $346,000. The architectural rendering of the proposed building illustrates the quality of their construction and building materials which will meet the architectural guidelines established by the EDA for the Shingle Creek Crossing Development. A similar four story commercial storage building, located in the northeast corner of Douglas Ave. and Hwy 55 in Golden Valley has an assessed valuation of $5,300,000. The projected closing date is identified as on or before December 29, 2017. Resolution Approving and Authorizing the Execution of Letter Intent to Sell Property at 195057 th Avenue North The City Attorney has prepared the attached resolution providing for the EDA' s approval of the Letter of Intent; authorizing the President and Executive Director to execute the Letter of Intent on behalf of the EDA; and authorizing the EDA staff and officials to negotiate the terms of a purchase agreement for review and approval by the EDA after conducting a public hearing on this proposed sale. The terms of the purchase agreement will include the necessary planning, zoning, and subdivision actions, including site and building plan approval; a C-2 PUD rezoning; and subdivision/land division necessary to create this 2 acre commercial lot. Budget Issues: The 57th & Logan Site was acquired with funds from Tax Increment District No. 3. The proceeds from the future sales of this property will be considered tax increment and available for other eligible TIF 3 budget expenditures or debt service. Strategic Priorities: Targeted Redevelopment j1'Jissio,,: Ensuring an attractive, clean, safe, inclusive coinfliunhly that enhances the quality of life for all people and preserves the public trust Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF A LETTER OF INTENT TO SELL THE PROPERTY LOCATED AT 195057TH AVENUE NORTH WHEREAS, the Economic Development Authority of the City of Brooklyn Center, Minnesota ("EDA") is authorized pursuant to Minnesota Statutes, Sections 469.090 to 469.1081 to acquire and convey real property and to undertake certain activities to facilitate the development of real property by private enterprise; and WHEREAS, Ebert Construction (dba E&R Investments LLC) ("Purchaser") is interested in purchasing the approximately two acres of property the EDA owns at 1950 57th Avenue North ("Property") for the purposes of developing it for a storage facility and other commercial uses in accordance with the City of Brooklyn Center's regulations; and WHEREAS, the Purchaser submitted a letter of interest ("LOT") dated July 28, 2017, which is incorporated herein by reference, proposing to purchase the Property on terms that include the following: A purchase price of three hundred forty six thousand dollars ($346,000), including fifty thousand ($50,000) earnest money; 2.A proposed closing date on or before December 29, 2017; 3.The Purchaser having one hundred eighty (180) days from the execution of the purchase agreement to satisfy itself regarding the environmental conditions and title of the Property; and 4. The EDA providing the Purchaser certain information regarding the Property within particular periods after the execution of the purchase agreement; and WHEREAS, the EDA and Purchaser both acknowledge and agree the terms of the LOT are not binding, that the parties will instead work to negotiate the terms of a binding purchase agreement for the sale of the Property, and that the EDA must conduct a public hearing on the proposed sale before it can approve a proposed purchase agreement. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Economic Development Authority of Brooklyn Center, Minnesota ("Board") as follows: EDA RESOLUTION NO. 1.The Board hereby approves the LOT with the Purchaser regarding the sale of the Property. 2.The EDA President and Executive Director are authorized to execute the LOT on behalf of the EDA. EDA staff and officials are authorized to negotiate the terms of a purchase agreement with the Purchaser regarding the sale of the Property for review and approval by the EDA after conducting a public hearing on the proposed sale. August 28. 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. MEMORANIDUM EDA WORK SESSION DATE: August 14, 2017 TO: Curt Boganey, City Manage FROM: Gary Eitel, Director of Business & Development SUBJECT: Discussion regarding a Letter of Intent with Ebert Construction for the Commercial Development of approximately 2 acres of the northern portion of Lot 1, Block 1, Northbrook Center 2"d Addition. (four story 112,000 sf. commercial storage building - 57th & Logan) Recommendation: It is recommended that the City Council consider providing direction to staff regarding the potential development of approximately 2 acres within the northern portion of Lott, Block 1, Northbrook Center 2 nd Addition for a four story, 112,000 sf. commercial storage building. Background: The 2018-2020 Strategic Plan includes Target Redevelopment Project Areas for 3 sites within the City's Central Commerce District (the Opportunity Site, the 57th and Logan Site, and the Jerry's Food Site) The desired outcome established for the 57th & Logan 8 acre site is a redevelopment that is inviting, attractive, and vibrant. The target for this redevelopment includes a 20,000 sf. retail use and 50 residential units by 2020. The redevelopment target was established based on previous development concepts that had been accepted by the EDA: 2006, a Letter of Intent with the Steiner Development Group for a mixed use commercial & residential development. Attached is a copy of the proposed concept which followed the Northbrook Development Guidelines prepared by Damon Farber Associates in conjunction with the Opportunity Site Study. 2014, a Letter of Intent with Told Development for S potential commercial sites with an architectural theme similar to the Shops of Wedgwood in Maple Grove to distinguish the commercial character of the project. Attached is a copy of the conceptual development plan. Both developers experienced market issues and the projects were withdrawn or canceled. Over the last 18 months, staff has had ongoing discussions on the potential use of the southeast corner of this site (approximately 3 acres) for a 30,000 sf. grocery store. Additionally, earlier this year, staff has had conversations with a developer on the potential of a market rate housing project on a portion of the property. While both parties have expressed an interest in portions of ilJission: Ensuring an at/ru ctn'e, clean, safe, inclusive conuhiiinitjthat enhances the qiitilitj of life for till people anti preserves the public trust IY4 I M!A 0] I1lJ - M 7W!LI) 1 C4i IL%1 [I]I the property, neither have sufficiently demonstrated that their development concepts are financially feasible. Proposal by Ebert Construction for a Commercial Storage Use at 57th & Logan: Attached is a proposal by Ebert Construction to acquire approximately 2 acres within the northern portion for the construction of a four story 112,000 sf. commercial storage building. The site plan illustrates the positioning of the building to the south of Outlot A, presently the location of the MPCA's monitoring wells for the ongoing groundwater and vaper investigation of contamination caused by a former dry cleaning operation. Additionally, Ebert Construction has indicated they would coordinate on-site storm water management with the planned development of the southern portion of the 57th & Logan site. The proposed purchase price is $346,000 which is approximately $4.00 per sf. The developer has indicated that their proposal does not involve any financial assistance, noting that they have discussed this development with the original environmental engineer employed by the EDA (Scott Tracy) and the original clean up contractor (John Hink), and that any remaining environmental work to be done on this site will not affect their offer of $346,000. An architectural rendering of the proposed building illustrates the quality of their construction and building materials which will meet the architectural guidelines established by the EDA for the Shingle Creek Crossing Development. Attached for your reference is a copy of the tax and value information of a similar four story commercial storage building located in the northeast corner of Douglas Ave. and Hwy 55 in Golden Valley. This project was referenced in City's previous consideration of an approval for a 1.62 acre site adjacent to the Regal Theater and has been identified as a comparable development. The valuation of this building is $5.3 M. The projected closing date is identified as on or before December 29, 2017. Policy Issues: Does the EDA believe that the development plan submitted by Ebert Construction is compatible with the EDA's Targeted Redevelopment Strategy for the 57th & Logan Site? Does the EDA wish to proceed with a Letter of Intent and Purchase Agreement with Ebert Construction for the conveyance of a portion of the 57 th & Logan Avenue site? Strategic Priorities: o Targeted Redevelopment Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for al/people and preserves the public trust July 28, 2017 Gary Eitel City of Brooklyn Center 6301 Single Creek Parkway Brooklyn Center, MN 55430-2199 RE: 57th Ave N & Logan Gary Eitel: We are pleased to present this offer to purchase. Purchaser: Ebert Construction DBA (E&R Investments LLC) 23350 County Road 10 Corcoran, MN 55357 Phone 763-498-7844 Seller: Economic Development Authority, City of Brooklyn Center. Property: 1950 57th Ave. N, Brooklyn Center, MN - north 1/2 / approx. 2 acres Purchase Price: $346,000 - Three Hundred Forty Six Thousand and no/lOU Initial Earnest Money: $50,000.00 to be deposited with escrow agent, Commercial Partners Title upon the execution of a purchase agreement. The Earnest Money shall be credited against the Purchase Price at Closing. //CIOAD N Conditions to Purchase: The Purchaser shall have a period One Hundred Eighty (180) days from the date of a Fully executed purchase agreement to satisfy or waive the following Conditions to Closing: (i)Purchaser obtaining a satisfactory environmental study & report. (ii)Purchaser obtaining satisfactory soil tests at purchaser's expense. (no constructive damage) (iii)Purchaser receiving approvals to construct a multi story self storage building. (iv)Purchaser accepting all environmental reports and entitlements to construct the proposed building without extraneous environmental clean-up / approvals. (v)Purchaser reviewing and accepting title insurance commitment. (vi)Purchaser reviewing and accepting Seller's Information as defined below. Purchaser must satisfy or waive the above Conditions to Purchase within the time period of the date of the Purchase Agreement. If, despite Purchaser's best efforts, Purchaser is unable to satisfy or waive the above Conditions to Purchase. Purchaser shall have the right to extend the Condition Date by an additional Sixty (60) days. Defined as applications with environmental agencies, or the City for development. In no event shall the Purchase Agreement be terminated if Purchaser is still actively pursuing and waiting on City schedules for final review permits or approvals (planning commission, EDA, City Council) If Purchaser does not send Seller a written notice of Purchaser's waiver of the Conditions to Purchase, or right to extend, the purchase agreement shall be deemed terminated, Purchaser's Earnest Money shall be returned to Purchaser and the parties shall have no further rights or obligations to each other. Seller shall cooperate with and reasonably aid Purchaser in the satisfaction of the aforementioned contingencies. Seller Information: Within Thirty (30) days of execution of the purchase agreement, Seller shall provide Purchaser with the following: (i) All information Seller has related to the conditions of the site including environmental and soil conditions. Seller will provide Purchaser with copies of any reports previously obtained or information previously received, including without limitation any information or reports of any governmental agency concerning the property that are in the Seller's possession or control. (ii) A copy of any current survey, engineering drawings or plats. www.ebertconst.cbm (iii) Copies of all architectural drawings and plans previously prepared for the site. Closing Date: On or before December 29th, 2017. Title Inspection: Within fifteen (15) days of the execution of a purchase agreement, Seller will provide Purchaser a title insurance commitment. It will be the Purchaser's responsibility for any owner's policy of title insurance and associated premium. Purchaser will have thirty (30) days after receipt of the title insurance commitment to notify Seller of any objections to title and Seller shall have sixty (60) days to cure any defects. Seller Warranties: Seller warrants to Purchaser at the time of execution of the purchase agreement and upon Closing that the following are true and correct: 1)Seller is in good standing and has all the appropriate authority. 2)Property is in full compliance with all applicable codes, laws and orders. 3)Convey good and marketable title. 4)No action or litigation pending. 5)No leases, easements, options or right of first refusal exist. 6)Cooperation with Purchaser in obtaining any necessary approvals. 7)Seller will locate and cap all wells located upon property. 8)No environmental issues other than those that are disclosed. Real Estate Taxes: Real estate taxes payable in the year of closing shall be prorated between the Seller and Purchaser. All prior years paid in full by Seller. Assessments: Seller shall pay all levied, pending and/or deferred special assessments at Closing. Agreement: Prior to Closing, the Purchaser may assign the obligations of the purchase agreement to an affiliate of Purchaser with sufficient financial ability to Close on the Purchase. Brokerage: None SIGNATURE PAGE FOLLOWS rI)ertcst.EEnl This letter is intended to be an expression of interest by the parties signing or accepting this letter to the transaction herein. Notwithstanding anything to the contrary, in no event shall this letter be deemed to be or constitute a binding contract agreement or other legally enforceable obligation between said persons or entities as to such matters. Upon signing of this letter agreement, the parties agree to negotiate the terms of a binding purchase agreement. Sincerely, t - 4ff-^- Greg Hayes VP Real Estate & Development Purchaser: Seller: Ebert Construction Economic Development Authority City of Brooklyn Center, MN By: By: Its: Vice President Its: Date: July 28, 2017 Date: r lertconst.conl ^z-lcMi7_1 LU Ico N N 31W NVDO1 DIMS IDS I fl 1= IN. I\ II I I I I III'N . 00 II / I /7 I / \\I / I! / II O 2 LU I Ui N MEmN ci E cncc III fy wLL 2 00 02 0. 0CO0z -J W> Cl)2WI— w —J HzW0 0)Ui z ca IIIJJ •!tLi11 -- -•rOF Il 1 n I I IL/I I di r rI SVDO I, uI u ::i! :' II / / rII /I/V/h H\ imIII'! II!I UJ'b'1WI00uJQ LL< F-2W z 0 >- F-2W -H 2UiUiiy- 0 Ui 0 z jLL - ii D 3flN3AVNVDO]-it - Jul MIR Li L2 0 I - J• "1 ': 0 I "- \j '.2 n rj! f - - -AN .•\ - iff / 'VO J - - - _ PREL IMINA R Y PLA X- / A VA // ORTHBROOK CENTER 2ND /' ' ADDITION F vl /r \ -::::::: DEDICATED :::::nI E1ENTS OutiotA1 I I IPROPOSED DEDICATION OF LOGAN AVE/ [ I/ (t/' 3,O74+/8F H 0.85+I Ac jH I IPROPOSED DEDICATION OF 57TH AVE / zt71//7,.// D—sao4.40 SE '50 -26 -E .2 887 J p IEXISTING ELECTRIC WLFF8 EASEMENT ,// )Ol)?j 1j ///4, /\ I • •— . t / IA/f/ i, . / Add NO 57Th 8, 1Jj J//-'\ BLOCK 1 ;i 1 ri / \ LOT I T I/'N I I / 319/; \ 5 E /025 / U o /jr 7 ,' I I I \ N - \ NL / --- . I JIADVD7EAA,oj I 1' N N N / 8 I /TT I /_ HAd 0V57THA ftd& VI 8 JI L57TH t4 o oo _ — ----------- N. III I 111!II II 111 1 Lid LI ly — ilhI! HU I tiit 1 ii I in i I j L. It M I s i'llI i'tJ I p1 I I — J L - LN—.------------------------------------.-----.-----.— _L_.._.__..__..__._ r . .i . / \ ... 1---- H I eiljJ /:;!N L I P 4' ti Hennepn County Property Map Date: 8/8/2 017 L r I - i! 1 ow - -. 4141 %k .1 - 1 * 4 1 inch 200 feet Comments:PARCEL ID: 3311821230013 OWNER NAME: Lock Up Golden Valley Lic PARCELADDRESS: 6250 Olson Memorial Hwy, Golden Valley MN 55422 PARCEL AREA: 1.53 acres, 66,561 sq ft A-T-B: Abstract SALE PRICE: $900,000 SALE DATA: 05/2014 SALE CODE: Vacant Land ASSESSED 2016, PAYABLE 2017 PROPERTY TYPE: Industrial-Preferred HOMESTEAD: Non-Homestead MARKET VALUE: $5,357,000 TAX TOTAL: $216,040.85 ASSESSED 2017, PAYABLE 2018 PROPERTY TYPE: Industrial- preferred HOMESTEAD: Non-homestead MARKET VALUE: $5,357,000 This data (i) is furnished 'AS IS' with no representation as to completeness or accuracy; (ii) is furnished with no warranty of any kind; and (iii) is notsui table for legal, engineering or surveying purposes. Hennepin County shall not be liable forany damage, injury or loss resulting from this data. COPYRIGHT ©HENNEPIN COUNTY 2017 EDA Agenda Item 4 b November 13, 2017 Background: On August 14, 2017, City Council/EDA Work Session included a discussion on an option for the EDA to enter into a Letter of Intent with Ebert Construction for the commercial development of approximately 2 acres of the northern portion Lot 1, Block 1, Northbrook Center 2nd Addition (the 57th & Logan site) for a four story, 112,000 sf. commercial storage building. The consensus the EDA was a favorable response to the following policy issues: Does the EDA believe that the development plan submitted by Ebert Construction is compatible with the EDA’s Targeted Redevelopment Strategy for the 57th & Logan Site? Does the EDA wish to proceed with a Letter of Intent and Purchase Agreement with Ebert Construction for the conveyance of a portion of the 57th & Logan Avenue site? –On August 28, 2017, the EDA approved the execution of a Letter of Intent which authorized the preparation of a Purchase Agreement and the scheduling of a Public Hearing; notice was published in the official newspaper on November 2, 2017. Proposal by Ebert Construction for a Commercial Storage Use at 57th & Logan: Ebert Construction proposes to acquire approximately 2 acres within the northern portion for the construction of a four story 112,000 sf. commercial storage building. The site plan illustrates the positioning of the building to the south of Outlot A, presently the location of the MPCA’s monitoring wells for the ongoing groundwater and vaper investigation of contamination caused by a former dry cleaning operation. The proposed purchase price is $346,000 which is approximately $4.00 per sf. and provides for the developer to assume any remaining environmental corrective actions . Resolution Approving Purchase Agreement and Conveyance of Approximately 2.5 Acre Portion of Lot 1, Block 1, Northbrook Center 2nd Addition7th The City Attorney has prepared the Purchase Agreement which includes the following components: Purchase Price: $346,000 Earnest Money: $ 50,000 The buyer/developer will prepare a site plan and storm water plan needed for the development of the 4 story - 112,000 sf. commercial storage building. The EDA will be responsible for the necessary zoning and subdivision approvals to create this as a buildable lot. The buyer/developer will have a 90 day Due Diligence Period with up to two 60 day extension periods to complete their site investigations, testing, financing, and governmental approvals including site & building plan and environmental approvals. The closing date will occur within 30 days day the expiration of the Due Diligence Period or sooner as mutually agreed by EDA and buyer/developer. Recommendation: Requested Commission Action: –Motion to open Public Hearing. –Take public input. –Motion to close Public Hearing. –Motion to adopt resolution: Resolution Approving Purchase Agreement and Conveyance of Approximately 2.5 Acre Portion of Lot 1, Block 1, Northbrook Center 2nd Addition