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HomeMy WebLinkAbout2019 05-28 EDAPE conomic Development Authority City Hall - C ouncil Chambers May 28, 2019 AGE NDA 1.C all to Order The C ity Council requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet, including E D A (Economic Development Authority ), is available to the public . The packet ring binder is located at the entranc e of the council chambers. 2.Roll Call 3.Approval of Consent Agenda The following items are considered to be routine by the Ec onomic Development Authority (E D A ) and will been acted by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in whic h event the item will be removed from the c onsent agenda and considered at the end of C ommission Consideration I tems. a.A pproval of Minutes - Motion to approve minutes from the May 13, 2019, EDA meeting 4.C ommission C onsideration Items a.Resolution Approving the A cquisition of Certain P roperty L ocated at: 6921 B rooklyn Boulevard, Brooklyn C enter, MN - Motion to approve the resoluti on approving the acqui sition of certain property located at 6921 Brooklyn Boulevard, Brooklyn Center, MN. 5.Adjournment ED A ITEM MEMORAN D U M DAT E:5/28/2019 TO :C urt Bo ganey, C ity Manager T HR O UG H:Dr. R eggie Ed wards, Deputy C ity Manager F R O M:Barb S uc iu, C ity C lerk S UBJ E C T:Ap p ro val o f Minutes B ackground: S trategic Priorities and Values: O peratio nal Exc ellence AT TAC HME N T S : Desc rip tion Up lo ad Date Typ e 5-13-19 EDA 5/22/2019 Bac kup Material 05/13/19 -1- DRAFT 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 MAY 13, 2019 CITY HALL – COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Mike Elliott at 7:39 p.m. 2. ROLL CALL President Mike Elliott and Commissioners Marquita Butler, April Graves, Kris Lawrence- Anderson, and Dan Ryan. Also present were Executive Director Curt Boganey, Deputy Executive Director Reggie Edwards, Community Development Director Meg Beekman, Business and Work Force Development Coordinator Brett Angell, and City Attorney Jason Hill. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Ryan moved, and Commissioner Graves seconded to approve the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. April 8, 2019 – Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2019-09 APPROVING ACQUISITION OF CERTAIN PROPERTY LOCATED AT 6234 BROOKLYN BOULEVARD, BROOKLYN CENTER, MN Business and Work Force Development Coordinator Brett Angell reviewed the proposed purchase of property at 6234 Brooklyn Boulevard, a single-family residential property currently zoned R1 with an existing home built in 1946. He added the home is owned by Ms. Karen Brisset. He noted the purchase price of the property is $180,000 and $4,000 moving expenses, for a total of $184,000. 05/13/19 -2- DRAFT Mr. Angell stated an escrow account would be created to allow the seller to remain in the home until June 30, 2019. He added the closing would occur May 14, 2019, at City Hall, and TIF 3 funding would be used for acquisition of the property. He noted the property has redevelopment potential due to its neighboring uses and falls within the Brooklyn Boulevard Redevelopment Corridor as established in the Comprehensive Plan. President Elliott asked whether there is a timeline for the redevelopment of the property. Mr. Angell stated other redevelopment projects are being considered, and demolition would be completed under one project. He added the goal is to reduce access points along Brooklyn Boulevard by acquiring other properties along this corridor. President Elliott asked whether there might be another potential temporary use for this property and other newly acquired properties until they are developed. Mr. Angell stated City Staff could review potential temporary uses. Commissioner Lawrence-Anderson stated it is the perfect location for a community garden. Mr. Angell stated that it is a possibility. He added access to water on the site would be problematic. Commissioner Lawrence-Anderson stated the purchase price seems high. Mr. Angell stated the purchase price is based on assessed market value, comparable sales, and a 7-8% increase over recent years. Commissioner Ryan stated the 2012-13 Brooklyn Boulevard study identified single-family properties with driveways onto Brooklyn Boulevard an “obsolescent use” due to growing traffic congestion and speeds on Brooklyn Boulevard. He added the policy is consistent with what the City has done in recent years, and areas have been identified in the Comprehensive Plan as Overlay Districts with a better use for opportunities along Brooklyn Boulevard. Commissioner stated she agrees with President Elliott that they may be other temporary uses for the property. She added she is in favor of moving it forward. Commissioner Ryan moved, and Commissioner Lawrence-Anderson seconded to adopt RESOLUTION NO. 2019-09. To Approve Acquisition at 6234 Brooklyn Boulevard. Motion passed unanimously. 4b. RESOLUTION NO. 2019-10 APPROVING THE ACQUISITION OF CERTAIN PROPERTY LOCATED AT 7014 BROOKLYN BOULEVARD, BROOKLYN CENTER, MN Mr. Angell reviewed the proposed purchase of property at 7012 Brooklyn Boulevard, a single- family residential property with an existing home built in 1939. He added the home is owned by 05/13/19 -3- DRAFT Mr. Robert Skiff. He noted the purchase price of the property is $235,000 and $5,000 moving expenses, for a total of $240,000. Mr. Angell stated a $1000 escrow would enable the seller to stay in the home until August 31, 2019, as he has been renting the property for the past few years. He added, if approved, the closing would occur by the end of May 2019, and TIF 3 would be utilized for the acquisition. He noted the property owner was considering the option of moving the house, but it will probably be demolished at the cost of $20,000. Mr. Angell stated City Staff were recently approached by an agent representing the property owner to the east and will continue to work with those parties until the property becomes available. He added this would eliminate a Brooklyn Boulevard access point. Commissioner Ryan asked whether that property is 7015 Kyle Avenue N? Mr. Angell confirmed this. Commissioner Ryan stated it is a great opportunity, and the City should move forward with this purchase. President Elliott asked whether other uses for the home have been considered since it is in good condition. He added another organization might be interested in moving the house, which would reduce costs if the house was not demolished. Mr. Angell stated City Staff could explore other options. Commissioner Graves asked whether the City will act as a landlord if the owner remains on the property, in both of these cases, and what would happen if there were complications. Mr. Angell stated the property owner had given notice to his tenants. He added the property owner is required to make any necessary repairs under Exhibit B in the Purchase Agreement. Commissioner Lawrence-Anderson asked who carries liability insurance on the property. Mr. Angell stated that would fall on the grantee or seller, which in this case is Mr. Skiff. Commissioner Ryan moved, and Commissioner Lawrence-Anderson seconded to Approve RESOLUTION NO. 2019-10 Approving Acquisition of Certain Property Located at 7014 Brooklyn Boulevard, Brooklyn Center, MN. 5. ADJOURNMENT Commissioner Lawrence-Anderson moved, and Commissioner Ryan seconded adjournment of the Economic Development Authority meeting at 8:05 p.m. Motion passed unanimously. ED A ITEM MEMORAN D U M DAT E:5/28/2019 TO :C urt Bo ganey, C ity Manager T HR O UG H:Meg Beekman, C o mmunity Development Directo r F R O M:Brett Angell, Busines s and Workfo rce Development S p ec ialis t S UBJ E C T:R es o lutio n Approving the Ac quis ition of C ertain P roperty Loc ated at: 6921 Bro o klyn Boulevard, Bro o klyn C enter, MN B ackground: T he property, loc ated at 6921 Bro o klyn Boulevard , is a s ingle-family res idential p ro p erty with a total ac reage of 0.21. T he p roperty has a wid th of 78 feet and d ep th of 120 feet with d irect ac c es s and frontage onto Bro o klyn Boulevard. T he p rimary s tructure was b uilt in 1953 and the p ro p erty has a 2019 as s es s ed market value of $145,000. Upon review o f the p ro p erty and c omparable p ro p erties, staff believe the assessed market value is b elo w the fair market value for the property. T his property has the lowes t as s es s ed market value o f any res id ential pro p erty on Bro o klyn Boulevard and many comparable p ro p erties , which have had mo re rec ent s ales , have a muc h higher assessed value. Neighb o ring us es to this property inc lude, three EDA owned p ro p erties to the north, S lims R es taurant to the s o uth, single family res idential to the wes t, and c ommerc ial to the eas t. T he EDA p urc hased the three p ro p erties to the north b etween 1994 and 2016. In each c as e, the C ity d emolis hed any s tructures o n each res p ective p roperty after p urc hase and they have s at vac ant since. T he property had been owned b y Mr. Bruce Burkholder, who passed away in January. T he C ity had b een engaged in co nvers ations and negotiations to ac quire the p ro p erty with Mr. Burkho ld er for the past dec ade. P rio r to his pas s ing, Mr. Burkho ld er had vac ated the property and mo ved into an as s is ted living facility. His d aughter, Amy Burkholder, had p o wer o f atto rney over her father's es tate and had nego tiated a p urc hase agreement for the property with the C ity. S everal days before the EDA meeting to ap p ro ve the purchas e agreement, Mr. Burkho ld er passed away without a will, fo rcing the property into p ro b ate. T he p ro p erty has b een vac ant s inc e that point. C onversatio ns with the C ity and Ms . Burkholder c ontinued o nc e the p ro p erty cleared p ro bate and a p urc hase agreement for the property was d rafted and s igned b y Ms. Burkholder. T he to tal acquis itio n cost for the property is $165,000. T he attached purchas e agreement d etails the terms and cond itions of the p ro p erty ac q uisitio n. T he s eller wo uld b e respons ib le for any as s es s ments or taxes that the p ro p erty had ac c umulated p rio r to c lo s ing. T he terms of the purchas e would als o allo w fo r the s ellers to leave b ehind any items that are unwanted. C ity staff have ins p ected the p ro p erty and es timate that the total c o s t to remo ve the belo ngings from the ho me wo uld be ap p ro ximately $4,000 to $5,000. T he family o f Mr. Burkho ld er have went through the p ro p erty and remo ved any items that they would like to keep . Up o n acquis itio n and remo val o f personal belo ngings from the ho me, the C ity wo uld have the s tructures on the p ro p erty demo lis hed. T he estimated cost fo r demolitio n is $15,000. O nc e d emo lis hed, the C ity wo uld look to red evelop this p ro p erty with the ad d itional three EDA-owned p ro p erties to the north. T he c o mb ined acreage o f the fo ur parc els is 0.88. C ity s taff have b een in regular c o mmunicatio ns with the o wners of the neighboring S lims restaurant who have develo p ment interes t in this loc ation. B udget Issues: T I F #3 funds will be utilized for the ac q uisition of this property. S trategic Priorities and Values: Targeted R edevelo p ment AT TAC HME N T S : Desc rip tion Up lo ad Date Typ e R esolution 5/20/2019 R es o lutio n Letter P urchas e Agreement 5/20/2019 Bac kup Material Loc ation Map 5/20/2019 Exhib it Aerial Map 5/20/2019 Exhib it 557965v1 CBR BR305-151 Commissioner __________ introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 2019- ___ RESOLUTION APPROVING THE ACQUISTION OF CERTAIN PROPERTY LOCATED AT: 6921 BROOKLYN BOULEVARD, BROOKLYN CENTER, MN 55429 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 desires to acquire a parcel (PID 27-119-21-33-0014) located at 6921 Brooklyn Boulevard, situated in the State of Minnesota, County of Hennepin, and which is legally described as follows: That part of Lot 4, Block 1, Sunset Manor, which lies southwesterly of a line run parallel with and distance 42 feet southwesterly of the following described line: Beginning at a point on the South line of Section 27, Township 119 North, Range 21 West distance 1607.8 feet West of the South quarter corner thereof; thence run northwesterly at angle of 53 degrees 20 minutes 37.5 seconds with said South Section line for 800 feet and there terminating. [Torrens Certificate No. 657652] (the “Property”). 1.03. The Authority finds and determines that the acquisition of the Property is in the public interest and will further the objectives of its general plan of economic development. Section 2. Authority Approval; Further Proceedings. 2.01. The Board hereby approves the Agreement in substantially the form presented to the Board, including the acquisition of the Property by the Authority, 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 Agreement by those officials shall be conclusive evidence of their approval. 2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority’s obligations under the Agreement as a whole, including without limitation execution of any documents to which the Authority is a party referenced in or attached to the Agreement, and other documents necessary to convey the Property to the Authority, all as described in the Agreement. 557965v1 CBR BR305-151 2 May 28, 2019 Date President The motion for the adoption of the foregoing resolution was duly seconded by Commissioner and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 1 550921v4BR305-153 PURCHASE AGREEMENT 1. PARTIES. This Purchase Agreement (“Purchase Agreement”) is entered into this ___ day of _______________, 2019, by and between Amy Jean Burkholder as Personal Representative of the Estate of Bruce E. Burkholder, a single person (“Seller”) and the Economic Development Authority of Brooklyn Center, Minnesota, a public body corporate and politic under the laws of the State of Minnesota (“Buyer”). 2. SALE OF PROPERTY. Seller is the owner of that certain real estate (“Property”) located at 6921 Brooklyn Boulevard, Brooklyn Center, MN 55429, Hennepin County, Minnesota and legally described as follows: That part of Lot 4, Block 1, Sunset Manor, which lies southwesterly of a line run parallel with and distance 42 feet southwesterly of the following described line: Beginning at a point on the South line of Section 27, Township 119 North, Range 21 West distance 1607.8 feet West of the South quarter corner thereof; thence run northwesterly at angle of 53 degrees 20 minutes 37.5 seconds with said South Section line for 800 feet and there terminating. [Torrens Certificate No. 657652] 3. OFFER/ACCEPTANCE. In consideration of the mutual agreements herein contained, Buyer offers and agrees to purchase and Seller agrees to sell and hereby grants to Buyer the exclusive right to purchase the Property and all buildings, improvements, and fixtures thereon, together with all appurtenances, including, but not limited to, plant, shrubs, trees, and grass. 4. NO PERSONAL PROPERTY INCLUDED IN SALE: There are no items of personal property or fixtures owned by Seller and currently located on the Property included in the Purchase Price for purposes of this sale. Any personal property remaining on the Property 30 days after at closing will be deemed to be forfeited by Seller and may be disposed of by Buyer. 5. PURCHASE PRICE AND TERMS: A. PURCHASE PRICE: The total Purchase Price (“Purchase Price”) for the Property is One Hundred Sixty Five Thousand and No/100ths Dollars ($165,000.00). B. TERMS: (1) EARNEST MONEY. The sum of Zero Dollars ($0.00) Earnest Money (“Earnest Money”) shall be paid by the Buyer to the Seller. (2) BALANCE DUE SELLER: Buyer agrees to pay by check or wire transfer on the Closing Date (“Closing”) any remaining balance due according to the terms of this Purchase Agreement. 2 550921v4BR305-153 (3) DEED/MARKETABLE TITLE: Subject to performance by Buyer, Seller agrees to execute and deliver a Personal Representative’s Deed conveying marketable title to the Property to Buyer, subject only to the following exceptions: a. Building and zoning laws, ordinances, and state and federal regulations. b. Reservation of minerals or mineral rights to the State of Minnesota, if any. c. Public utility and drainage easements of record which will not interfere with Buyer’s intended use of the Property. d. Title defects waived by Buyer pursuant to paragraph 6 below. 6. CONTINGENCIES. A. Notwithstanding any other provision in this Agreement to the contrary, the parties agree that the purchase of the Property is subject to the following contingencies, which must be accepted or waived before the Date of Closing hereafter defined, unless a shorter period is expressly provided herein: (1) Title to the Property shall be acceptable to Buyer, in its sole discretion. (2) The Property’s environmental condition must be acceptable to Buyer, in its sole discretion. B. Buyer shall satisfy or waive the above contingencies on or before the Date of Closing. On or before the Date of Closing, Buyer shall, by giving written notice to Seller, either: (1) Terminate this Agreement if any one or more of the contingencies above have not been satisfied to the satisfaction of Buyer; or (2) Waive the contingencies listed above and proceed to closing. If Buyer elects to terminate this Agreement under paragraph (B)(1) above, then upon, Seller’s receipt of Buyer’s written notice of termination, this Purchase Agreement shall be null and void, all Earnest Money shall be returned by Seller to Buyer, and neither party shall have any further obligation to the other. 7. DOCUMENTS TO BE DELIVERED AT CLOSING BY SELLER. 3 550921v4BR305-153 A. Personal Representatives Deed free and clear of encumbrances subject only to the exceptions stated in paragraphs 5 (C) (3)(a), (b), (c), and (d) of this Purchase Agreement. B. Standard form Affidavit of Seller. C. Well disclosure certificate, if required. D. Waiver of Relocation Benefits in the form attached hereto as Exhibit A. E. Such other documents as may be reasonably required by Buyer’s title examiner or title insurance company. 8. CLOSING DATE. The closing of the sale of the Property shall be on or before _____________________, 2019. The closing shall take place at the offices of Economic Development Authority of Brooklyn Center, 6301 Shingle Creek Parkway, Brooklyn Center, MN 55430 (or at such other location as the parties shall agree). 9. DELIVERY OF DOCUMENTS . Within seven business days of signing this Purchase Agreement, Seller shall have provided Buyer with copies of all relevant material in Seller’s possession relating to the Property, including but not limited to, title reports, soil reports, environmental studies, surveys, environmental reports, agreements with governmental authorities, or other records of the Property that Seller has in Seller’s possession (collectively, the “ Documents ”). 10. INTENTIALLY OMMITTED . 11. ENVIRONMENTAL INSPECTION. Seller, prior to vacation of the Property, shall remove all substances that, under state or federal law, must be disposed of at an approved disposal facility. This requirement does not apply to hazardous substances integrated into the building improvements (e.g., asbestos) or soil but applies only to movable equipment, supplies and materials that are located or stored on the Property. Buyer and Seller will conduct a joint inspection of the Property at a time to be mutually agreed upon prior to closing for the purpose of identifying materials that must be removed by Seller. 12. LEAD. If the dwelling structure on the Property was constructed prior to 1978, a lead paint disclosure accompanies this Agreement. 13. REAL ESTATE TAXES. A. Seller will pay at or prior to closing all real estate taxes due and payable in 2018 and prior years on the Property, including any delinquent real estate taxes. B. Real estate taxes due and payable in 2019 shall be prorated as of the date of closing between Buyer and Seller. If the amount of real estate taxes due and payable in 2019 is not available on the date of closing, the pro-rated taxes will be based on the amount of real estate taxes due and payable in 2018. 4 550921v4BR305-153 14. SPECIAL ASSESSMENTS. A. Seller shall pay on or prior to closing the balance of all special assessments levied for payment in 2018 and prior years. Buyer shall pay all special assessments pending or levied in 2019 and future years. B. Seller shall pay any deferred real estate taxes or special assessments, payment of which is required as a result of the Closing of this sale. C. As of the date of this Purchase Agreement, Seller has not received a notice of hearing for a new public improvement project from any governmental assessing authority, the costs of which project may be assessed against the Property. D. Notwithstanding any other provision of this Agreement, Seller shall at all times be responsible to pay special assessments, if any, for delinquent sewer or water bills, removal of diseased trees prior to the date of this Purchase Agreement, snow removal, or other current services provided to the Property by the assessing authority while Seller is in possession of the Property. 15. MARKETABILITY OF TITLE. Buyer shall, within a reasonable time after execution of this Purchase Agreement by both parties, obtain a commitment for title insurance or other evidence satisfactory to Buyer (“Title Evidence”) for the Property. Buyer shall have ten (10) business days after receipt of a fully executed purchase agreement and the Title Evidence to examine the same and to deliver written objections to title, if any, to Seller. Seller shall have until the Date of Closing to make title marketable, at Seller’s expense. In the event that title to the Property cannot be made marketable or is not made marketable by Seller by the Date of Closing, then, at the option of Buyer, Buyer may terminate this Purchase Agreement in accordance with paragraph 6 (B)(1) of this Purchase Agreement. 16. CLOSING COSTS AND RELATED ITEMS. Seller will pay: (a) any deed transfer taxes and conservation fees and recording fees for all instruments required to establish marketable title in Seller and to allow Seller to record its deed from Seller; (b) any deed transfer taxes and conservation fees required to enable Buyer to record its deed from Seller under this Purchase Agreement; (c) the cost of the title commitment, title search, name searches, and exam fees; and (d) one-half of the closing fee charged by the title insurance or other closing agent, if any, utilized to close the transaction contemplated by this Purchase Agreement. Buyer shall be responsible for the payment of the following costs: (a) recording fees for deed from Seller under this Purchase Agreement; (b) the title insurance premium, and any endorsements, if any; and (c) one-half of the closing fee charged by the title insurance or other closing agent, if any, utilized to close the transaction contemplated by this Purchase Agreement. Each party shall be responsible for its own attorneys’ fees and costs. 17. POSSESSION . Seller shall deliver possession of the Property on the Closing Date. 5 550921v4BR305-153 18. DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM. Seller discloses that there is not an individual sewage treatment system on or serving the Property. 19. WELL DISCLOSURE. Seller discloses that there is a well on or serving the Property. A well disclosure Certificate accompanies this Purchase Agreement; or Seller does not know of a well on the Property. 20. SELLER’S WARRANTIES. Seller warrants that buildings, if any, are entirely within the boundary lines of the Property. Seller warrants that there is a right of access to the Property from a public right-of-way. Seller warrants that there has been no labor or materials furnished to the Property for which payment has not been made. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the Property. Seller represents that Seller has good and marketable simple title interest to the Property and no consents or approvals from any third parties are required. Seller represents that there are no third parties in possession of the Property, or any part thereof; and that there are no leases, oral, or written, affecting the Property or any part thereof. Seller agrees that Seller will not enter into a lease for the Property after the date of this Purchase Agreement. Seller agrees to pay all charges for sewer, water, electric, gas, rubbish removal, Internet, cable/satellite television, and any other utility charges incurred prior to closing. These warranties shall survive the Closing of this transaction. 21. RELOCATION BENEFITS. Seller acknowledges that Seller initiated negotiations with Buyer for the transaction contemplated by this Purchase Agreement, and that this transaction is not made under threat of condemnation by Buyer. Seller acknowledges the Property is vacant. Seller agrees to provide to Buyer at closing an executed waiver of relocation benefits in substantially the form of the attached Exhibit A. 22. NO MERGER OF REPRESENTATIONS, WARRANTIES. All representations and warranties contained in this Purchas Agreement shall not be merged into any instruments or conveyance delivered at closing, and the parties shall be bound accordingly. 23. ENTIRE AGREEMENT; AMENDMENTS. This Purchase Agreement constitutes the entire agreement between the parties, and no other agreement prior to this Purchase Agreement or contemporaneous herewith shall be effective except as expressly set forth or incorporated herein. Any purported amendment to this Purchase Agreement shall not be effective unless it shall be set forth in writing and executed by both parties or their respective successors or assigns. 24. BINDING EFFECT; ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors, and assigns. Buyer shall not assign its rights and interest hereunder without notice to Seller. 25. NOTICE. Any notice, demand, request or other communication which may or shall be given or served by the parties shall be deemed to have been given or served on the date the same is 6 550921v4BR305-153 deposited in the United States Mail, registered or certified, postage prepaid and addressed as follows: SELLER: Bruce E. Burkholder c/o Amy Burkholder, Attorney in Fact 17729 Kettering Trail Lakeville, MN 55044-9354 BUYER: Economic Development Authority of Brooklyn Center Attn: Brett Angell 6301 Shingle Creek Parkway Brooklyn Center, MN 55430-2113 AGENT: Kennedy & Graven, Chartered Attn: Troy Gilchrist 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 26. BROKER COMMISSIONS. Buyer and Seller each represent and warrant to the other that there is no broker involved in this transaction with whom either has negotiated or to whom the representing party has agreed to pay a broker commission or finder’s fee in connection with negotiations for purchase or sale of the Property. Buyer and Seller agree to indemnify, defend, and hold the other party harmless against any and all claims of brokers, finders, or the like, and against the claims of all third parties, claiming any right to commission or compensation by or through acts of the indemnifying party or its partners, agents, or affiliates in connection with this Purchase Agreement. The indemnifying party’s indemnity obligations shall include all damages, losses, costs, liabilities, and expenses, including reasonable attorneys’ fees and litigation costs, which may be incurred by the other party. 27. METHAMPHETAMINE DISCLOSURE. To the best of Seller’s knowledge, methamphetamine production has not occurred on the Property. 28. SPECIFIC PERFORMANCE. This Purchase Agreement may be specifically enforced by the parties, provided that any action for specific enforcement is brought within six months after the date of the alleged breach. This paragraph is not intended to create an exclusive remedy for breach of this agreement; the parties reserve all other remedies available at law or in equity. 7 550921v4BR305-153 IN WITNESS WHEREOF, the parties have executed this agreement as of the date written above. SELLER The Estate of Bruce E. Burkholder By: Amy Jean Burkholder Its: Personal Representative BUYER Economic Development Authority of Brooklyn Center, Minnesota By: Its: President By: Its: Executive Director 8 550921v4BR305-153 EXHIBIT A FORM OF WAIVER OF RELOCATION BENEFITS I, the undersigned, acknowledge that I met with a representative of the Economic Development Authority of Brooklyn Center, Minnesota (EDA) on _______________, 20__. The representative, _____________________________, explained that in the event that the EDA acquires my property located at 6921 Brooklyn Boulevard, Brooklyn Center, Minnesota, I may be entitled to certain relocation benefits, in addition to the amount of money being paid to me to acquire my property. These benefits may include: 1. Moving Expenses: a. A payment for actual reasonable moving expenses; or b. A fixed payment determined in accordance with the applicable schedule approved by the Federal Highway Administration. 2. Replacement Housing Payment: A 180-day homeowner is eligible to receive a replacement housing payment to cover the following costs: a. If the homeowner must pay more to buy a comparable replacement home than homeowner receives for the property, then homeowner may be compensated for the difference. b. Homeowners may be entitled to compensation for incidental and closing expenses related to the purchase of a decent, safe, and sanitary replacement home, such as recording fees, title insurance, appraisal, and inspection fees. c. If a homeowner must pay a higher interest rate on a mortgage to finance the purchase of a replacement home than the rate on the mortgage of the property, then homeowner may be entitled to compensation for increased mortgage interest costs. 3. Other Relocation Assistance: This includes referrals and other assistance to help the owner(s) relocate to a comparable decent, safe, and sanitary dwelling. These payments and services are required under the regulations of the Department of Housing and Urban Development (HUD). The owner(s) cannot be required to move from his/her home unless he/she is given reasonable opportunities to relocate to a comparable decent, safe and sanitary dwelling unit that he/she can afford. 9 550921v4BR305-153 Finally, it was explained to me that the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 as amended, entitles me to these relocation benefits; and if I sign this waiver, I will be waiving those relocation benefits. After having these benefits explained to me, I agree to waive them. In signing this waiver, I acknowledge that no threats have been made to me, either expressly or by implication, that my property will be taken from me through condemnation. If after signing this waiver, I attempt to collect relocation benefits, I will have to prove that, contrary to what I am agreeing to in this waiver, my waiver of relocation benefits was not entered into voluntarily. This wavier is conditioned upon the Economic Development Authority of Brooklyn Center, Minnesota purchasing my property for the gross purchase price of $165,000.00. If this commitment to me is not fulfilled, this waiver is null and void. _________________ Date The Estate of Bruce E. Burkholder By: Amy Jean Burkholder Its: Personal Representative WITNESS: So ur ces : Esr i, H ERE , G arm in , In te r m ap , i n cr em ent P Co rp ., GEBCO, USGS, FAO,NPS, N R CA N, G eo B as e , IGN , K adas te r N L, Or dnance Su rvey, Esri Ja pan, M ET I, EsriChina (H ong Ko ng), (c ) Ope n Str ee tM ap c o ntri bu tors, and the GIS User Co m m u ni ty Loca ti on Map : 69 21 Brookl yn Bl vd Re sid ent ial Labels Ad dr esses Hig hways Str eets Ro ad E dge City Park s Pa rcels 5/2 0/2 019, 4:11:43 PM 1 inch = 18 8 feet So ur ces : Esr i, H ERE , G arm in , In te r m ap , i n cr em ent P Co rp ., GEBCO, USGS, FAO,NPS, N R CA N, G eo B as e , IGN , K adas te r N L, Or dnance Su rvey, Esri Ja pan, M ET I, EsriChina (H ong Ko ng), (c ) Ope n Str ee tM ap c o ntri bu tors, and the GIS User Co m m u ni ty,He n nep in Co u nty Aeria l Ima ge: 692 1 Brookl yn Bl vd Re sid ent ial Labels Ae ria l s 2015 Re d: Ba nd_1 Gre en : Band_2 Blu e: Band_3 5/2 0/2 019, 4:15:44 PM 1 inch = 18 8 feet