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IP #997Request for Action August 28, 2017 Approved by: Kirk McDonald, City Manager Originating Department: Community Development By: Aaron Chirpich, CD Specialist Agenda Section EDA Item Number 5 Agenda Title Resolution awarding the contract for rehabilitation work in association with the EDA owned property located at 3984 Zealand Avenue North (improvement project 997). Requested Action Staff requests that the EDA award Day Construction with the rehabilitation contract for the remodel and rehabilitation of 3984 Zealand Avenue North as part of the scattered site housing program. Policy/Past Practice It is the practice of the EDA to award contracts to the lowest responsible bidder for the completion of rehabilitation work. Background On April 27, 2017, the EDA purchased the vacant and foreclosed single-family home located at 3984 Zealand Avenue North for $165,000. The intent of the purchase was to rehabilitate the home for resale and maximize the value of the finished product. There is substantial work needed for the exterior and interior of the home. Staff completed multiple inspections of the property and compiled a list of project specifications. The proposed scope of work includes a "base" level of work to be completed that staff considers the minimum level of improvements necessary. Staff worked with a relator to estimate the value of the completed home based upon the desired scope of work. The estimated value of the home following completion of the base improvements is $265,000. Based upon this assumption, the EDA would have a budget of approximately $75,000 to complete the base improvements and break even. Staff also developed a list of "alternates" to consider as part of the project that may have the ability to increase the end value of the home and subsequent sales price. Following review of the base specifications and alternates with the Council, staff requested quotes from six contractors. The contractors were asked to provide a cost for the base improvements and individual costs for each alternate. Staff received quotes from three contractors. The bid results are listed in the tables below. Due to the large spread in bids, alternate amounts are only provided for Day Construction, as they have provided the only viable bid for the project. Table 1. Base Bids Contractor Base Bid Amount Day Construction, LLC $84,129 B.E. Homes $151,898 Higgins Construction, LLC $172,000 I:\ RFA\ COMM DEV \Development\ Q & R -Award Rehabilitation Contract for 3984 Zealand Avenue Project 997.docx Request for Action, Page 2 Table 2. Alternate Bids Contractor Alternate Type Bid Amount • Install granite countertops • $2,223* in kitchen in place of laminate • Install ceramic tile • $1,552* backsplash in kitchen • Install ceramic tile in place • $1,640* of vinyl flooring (multiple Day Construction locations) • Re -roof house $5,735 • Install shower in master • $5,706* bath • Replace driveway with (- $600*) new asphalt in place of repairing existing concrete • Move washer and dryer to $1,058 new location *indicates an alternate that is recommend for approval Recommendation In review of the quotes received, staff recommends awarding the contract to Day Construction, as they are the only contractor to produce a viable bid. The base bid submitted by Day Construction is $9,129 over the budgeted amount of $75,000 for base improvements. Despite the projected deficit, staff believes the project should move forward. Staff also recommends including the following alternates as part of the project: • Install granite countertops in kitchen • Install tile backslash in kitchen • Install ceramic tile in place of vinyl (multiple locations) • Install shower in master bath • Replace concrete driveway with asphalt Total Cost of Recommended Alternates = $10,521 Request for Action, Page 3 After discussing alternate options with Day Construction and the EDA's realtor, staff is comfortable expecting that the EDA can recapture the majority of the additional costs by increasing the sale price to $275,000. Under this assumption, the EDA still stands to lose an estimated $8,765 on the project. In summary, staff recommends awarding the rehabilitation contract to Day Construction for a total of $94,650. The tables below provide a basic breakdown of the project budget options. Table 3. Base Budget Summary EDA Base Rehab Day Construction Combined Budget (based on a sale Day Construction Base Difference (loss) price of $265,000) Bid Amount $75,000 $84,129 ($9,129) Table 4. Budget Summary with Alternates (recommended option) EDA Rehab Budget with Day Construction Combined Alternates (based on a sale price Bid Amount (base + selected Difference (loss) of $275,000) alternates) $85,000 $94,650 ($8,765) Experience with Recommended Contractor The EDA has not worked with Day Construction in the past. Staff initially became aware of their work while searching for builders as part of the scattered site housing program. Day Construction is based out of New Hope, and the owner Matthew Day is a New Hope resident. The company is active in the construction of new homes, and completes several rehabilitation projects each year. Staff requested, and received client references from Day Construction. At the time of this report, staff had not connected with any of the references. Client Feedback will be available at the EDA meeting. Funding Funding for this project will come from EDA resources. Grant funds will not be used. Any loss incurred on this project will diminish the EDA fund balance. Attachments • Resolution • Project budget • Bids received • Scope of work CITY OF NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 17 _16 RESOLUTION AWARDING THE CONTRACT FOR REHABILITATION WORK IN ASSOCIATION WITH THE EDA OWNED PROPERTY LOCATED AT 3984 ZEALAND AVENUE NORTH (IMPROVEMENT PROJECT 997) WHEREAS, the Economic Development Authority in and for the City of New Hope ("EDA") purchased the foreclosed single family home located at 3984 Zealand Avenue North, New Hope, MN and legally described as: Lot 10, Block 2, Hipp's Hopewood Hills Revised Addition, Hennepin County, Minnesota ("Property") on April 27, 2017 for $165,000; WHEREAS, the exterior and interior of the house located at the Property requires rehabilitation to bring the house into compliance with the City Building Code and achieve suitable living conditions; WHEREAS, the EDA solicited rehabilitation quotes pursuant to EDA Resolution No. 17 and the Scope of Work outlines the rehabilitation work that is needed ("Work"); WHEREAS, Day Construction, LLC submitted a proposal that meets the Scope of Work and is the low bid for the Work and is attached hereto as Exhibit A ("Proposal"); WHEREAS, it is in the best interests of the EDA to enter into a contract with Day Construction, LLC for the purpose of performing the Work; WHEREAS, the EDA is requested to approve the selection of Day Construction, LLC as the duly qualified contractor to perform the Work and approval of the Proposal; and WHEREAS, City staff, EDA and City Attorney have reviewed the Proposal and are agreeable with the terms, believing them to be in the best interest of the EDA that Day Construction, LLC be selected to perform the Work. NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority in and for the City of New Hope as follows: 1. That the EDA hereby approves the Proposal submitted by Day Construction, LLC, attached as Exhibit A. 2. The President, Executive Director, New Hope City staff and the City Attorney are authorized and directed to draft the contract and all other appropriate documents, and to take whatever additional actions are necessary or desirable, to complete the Contract and engage the services of Day Construction, LLC. Dated the 28th day of August 2017. ':�4- -�� J'r'- Kat emken, President Attest: Kirk McDonald, Executive Director Exhibit A Proposal See Attached. PAAttomey\SAS\1 Client Files\2 City of New Hope\99-11413 3984 Zealand Ave. N\Resolution approving award to rehabilitation contractor.docx City of New Hope Single -Family Acquisition and Rehab-- Scattered Site Housing Program Total Project Cost and Total Funding Sources 3984 Zealand Avenue Total 283,765 SOURCES Amount Proceeds from Sale 275,000 EDA Reserves 8,765 Total 283.765 Estimated Loss 8,765 New Hope MN, 55427 USES Amount Acquisition 165,000 Base Improvements 84,129 Real Estate Taxes 3,115 Current Tax Value $187,000 Legal 1,500 Current Property Tax $3,115 Listing Fee/Broker Commission 13,000 Closing, Recording Fees 1,500 Estimated Tax Amount "after rehab" $4,500 Alternates 10,521 "based on a value of $275,000" Contingency/ Appliances 5,000 Total 283,765 SOURCES Amount Proceeds from Sale 275,000 EDA Reserves 8,765 Total 283.765 Estimated Loss 8,765 CUSTOM HOMES - RENOVATIONS - IMPROVEMENTS August 21, 2017 Project: Renovate home Scope of Work: PROPOSAL. City of New Hope 3984 Zealand Ave N New Hope MN Demo o Demo Kitchen finishes and floor o Demo finishes in both bathrooms o Demo main floor partition wall between kitchen and living room o Demo basement ceiling finish o Demo all paneling and faux beams in basement o Remove all existing carpet o Remove all existing wallpaper o Remove existing deck, including footings to min. 12" below grade o Remove existing landscaping timbers, garden shed, marked trees, broken concrete sidewalk on side of home o Provide dumpsters as needed for disposal of all debris Framing o Frame new energy walls in basement o Repair framing in main level as needed from removing wall o Frame new patio door opening in dining room o Close in existing door in kitchen Masonry o Pour 4x4' landing pad at bottom of deck stairs o Replace up to 450 square feet of driveway concrete • Includes 6" thickness, rebar as needed • Includes proper base under new concrete Mechanical o Plumbing • Install all fixtures in kitchen, including waterline to fridge • Install all new fixtures in bathrooms • Fixture schedule attached below, with allowances o Electrical ■ Add circuits as needed to bathrooms and kitchen ■ Add recessed lighting to basement and kitchen per scope Includes LED trims and LED compatible dimmer ■ Replace all devices and plates ■ Add Arc Fault Breakers to all circuits required by current code ■ Includes $900 fixture allowance, 12 fixtures @ $75/ea ■ Includes all bulbs and can trims o HVAC ■ Install bath fans in both bathrooms, ducted to exterior with insulated duct and proper roof/wall caps • Re-route ducting for living room as needed Living room will likely receive floor vent ■ Install all new registers throughout ■ Inspect and clean water heater and furnace Insulation o Install 6 mil poly onto basement exterior walls, taped and sealed o Install unfaced R-13 insulation in stud cavities o Repair main level insulation where affected -DAY CONSTRUCTION - 651 -565-7877 - info@day-construction.com - www.day-construction.com License #BC641777 o Caulk/foam all new windows and doors Windows/ Exterior Doors o Replace all windows in home with Andersen American Craftsman 50 Series windows o Install Masterpiece sliding patio door o Install kitchen service door into garage service door opening ■ Note: existing kitchen door is not suitable for fire -door between garage and house, Scope was unclear about location of re -used door o Install new insulated steel overhead door and springs, door to meet all Code requirements • Siding/Roofing o Install siding on filled-in kitchen door to match existing Drywall o Install and finish approximately 50 sheets of drywall as needed throughout home o Install and fire tape sheetrock as needed in garage o Patch all walls as needed to prep for paint o All ceilings to receive medium knockdown texture Cabinets and Granite o Install Merillat Basics Portrait door, painted white cabinetry in kitchen ■ $4500 kitchen cabinetry allowance ■ $675 bathroom vanity allowance o Provide and install approximately 54 SF of laminate countertop • Allowance of $25/SF o Provide and install two cultured marble vanity tops with integrated sinks • $100/ea • Flooring o Vinyl flooring • Install vinyl flooring in entry, bathrooms, garage entry ■ Includes $1.50/sf material allowance o Install carpet with 7# pad in basement • Includes $15/yd material allowance o Install Oak flooring in kitchen and dining room o Stain and finish all existing and new wood flooring, including steps Millwork o Replace all interior doors in home with Masonite hollow core 3 -panel doors ■ Includes $25 allowance for handles o Install new 2 1/4" paint -grade poplar door and window casing throughout home o Install new 3 1/4" paint grade poplar baseboard throughout home o Install base shoe in all rooms with hard -surfaced flooring o Install all cabinet, door, and bathroom hardware Landscaping o $2800 allowance for restoration of landscaping, including seeding where needed and re- grading for proper drainage. Balance of allowance can be used for decorative plantings at discretion of owner Miscellaneous o Includes dumpsters and disposal o Includes site toilet if needed o Includes general site cleanup and construction cleanup ■ Final "sales clean" will still be needed unless requested at additional cost o Includes all permits o Appliances not included in total Total Price: $84,129 (See options and fixture schedule on Page 3) -DAY CONSTRUCTION - 651 -565-7877 info@day-construction.com - www.day-construction.com License #BC641777 Options 1. Substitute laminate counters for granite - $2223 2. a. Ceramic tile backsplash ($20 material allowance) - $1552 b. Ceramic tile entryway ($3/sf material allowance) - $527 c. Ceramic tile Main Bathroom floor ($3/sf material allowance - $371 d. Ceramic tile Master bath floor ($3/sf material allowance - $330 e. Ceramic Tile garage entryway ($3/sf material allowance - $412 3. Re -roof house with Owens Corning Oakridge or GAF Timberline shingles - $5735 4. Master bathroom shower conversion - $5706 5. Move washer and dryer to new location as specified - $1058 6. Asphalt driveway - ($600) 7. Add windows to garage door top panel - $100 Plumbina Fixture Schedule of Allowances Item Qty Each ($) Total Allowance Kitchen faucet 1 200 $ 200.00 Vanity Faucet 2 100 $ 200.00 Shower faucet 1 150 $ 150.00 Bathroom hardware 2 50 $ 100.00 Toilet 2 125 $ 250.00 Total $ 900.00 -DAY CONSTRUCTION - 651 -565-7877 info@day-construction.com - www.day-construction.com License #BC641777 22400 Elston Ave Forest Lake MN 55025 E -Mail hm.mehomesRgmail.com Phone 612-366-2176 Lic. BC635028 Rehab Bid 3984 Zealand Avenue North New Hope MN 55428 22400 Elston Ave Forest Lake MN 55025 E -Mail bm.mehomesPgmail.com Phone 612-366-2176 Lic. BC635028 Please see notes It's cheaper to replace driveway with black top than to repair the cement in driveway. Note most asphalt companies are out 1 %2 to 2 month right now. Where allowances are given - If we go under, you get money back. If you go over, it increases contract amount. All trim will be white mission type with 3 panel white doors. Stairs may not be able to be refinished, if they are veneer. Stair skirts will be painted white. Note: $3,000 for overages allowance - to be discussed between owner and builder. Window sizes may change from existing sizes - to be discussed between owner and builder. We will be moving attic access to hall from bedroom for ease of use. 1 towel bar and 1 toilet paper dispenser is included in the price per bathroom. There will be an extra charge for more than 1 interior color of paint, $75.00 per additional color. I would suggest carpet in the 3 bedrooms, not wood. There would be a savings. Tile on the floors of bathrooms is not needed for this type of house. I would suggest having a tub unit with tile walls in the main bathroom. I would suggest replacing the interior railing if the budget allows. Overage allowance could be used to cover this cost if not used for other items. r, 22400 Elston Ave Fo—t Lake PAM 56025 Phone 612-866-2176 Fan 651-982-0186 – - - Uc # 20635028 - - Bid Date: Billed to: City of New Hope 763-531-5114 Attn: Aaron Chirpich Job address 3984 Zealand Avenue North Options Permit allowance Allowance $ 2,300.00 Driveway Reimove and replace cracked concrete sections in drlVeway and Sidewalk - 4 seCtivons Option: Bituminous full driveway replacement add $ 1,000.00 Yard Clean over growth around house to allow painting of exterior including west side and trees marked with green Regrade back yard and seed as needed, includes up to10 yds of dirt if needed EM Demo Remove Garden shed from rear of home Remove existing fencing, deck, timbers, free standing light, all ext lights, gas grill, and dog house Clean out gutters and paint or replace downspouts to match trim EM Paint Paint exterior of home including brick and hand rail - colors TBD by owner Paint exterior side of front door - color TBD by owner Framing Build new 14'x12' with treated decking on back of home, includes stairs and 4'x4' landing Option: Cedar Deck add S 1,800.00 Remove and frame in basement closet Reframe window sizes if needed Frame in window under deck Frame for patio door Frame in kitchen exterior door Windows Remove and replace all windows with vinyl energy star rating Install patio door in dining room Replace garage service door Garage Door Replace garage door with new insulated garage door; no windows, white, reuse existing opener Interior Demo Per Scope of Work Document including as needed items Appliance removal: washer, dryer, garage furnace, cook top, refrigerator, hood vent, oven Remove wall between kitchen and living room, If building official require engineering add cost of $800.00 Move mechanicals as needed Remove window and exterior door in kitchen Appliance Allowance $ 4,900.00 Lighting 4 Exterior Lights 2 Pendant lights over center island 1 Pendant light over sink in kitchen Install Vanity light in Master bath Install light fixture in center of main floor bedrooms Replace light in entry way _ Replace surface mount light in lower hallway Allowance $ 525.00 Included in elec bid 4 recessed lights in kitchen 4 Recessed lighting in Dining room (no Chandelier light) 4 recessed lights in Living Room Replace trim kits in bathroom, main floor bedrooms and basement (if feasible) 2 porcelain ceiling lights - Utility Room 4 porcelain ceiling lights - Garage Kitchen Cabinets Install per example provided Klearview cabinets with soft closing doors and self dosing draws with comer lazy suzanne Vanities Replace vanities with new white vanities Kitchen Countertops Laminate Option: Granite add $ 2,000.00 Option: Quartz add $ 1,600.00 Option: Under mount sink add $ 350.00 Bathroom Countertops Install cultured marble tops with built in sinks including new faucets Plumbing Install stainless steel double sink including faucet with sprayer in kitchen Elongated toilets 5' shower /tub unit Install new sink and shower faucets in bathrooms Utility room - inspect plumbing including water heater (to bid any necessary repairs) Electrical Install all new switch covers, outlets, CO and Smoke detectors Per code including GFIs and arc faults Attic Access Move to hall from closet Drywall Repair and sheetrock as needed including knockdown ceilings upstairs Keep existing ceiling texture in bedrooms Review water damaged sheetrock in basement (to bid any necessary repairs) Sheetrock basement with white medium knockdown ceiling Sheetroc k, no taping in utility room Sheetroc k garage to meet fire code Interior Paint Color TBD by owner Paint interior walls with egg shell finish and ceilings with flat paint _ Paint interior hand rail Paint existing linen closet door Paint shelves and rods in bedroom closets Paint utility room and garage floor Paint garage ceiling Flooring Install wood floor in kitchen, dining room, living room, hallway and main floor bedrooms 314" staple down Refinish wood stairs if possible, skirt to be white Install vinyl flooring in bathrooms and two landings Install new carpet and pad in basement living room i_ Trim Install Prefinish white poplar - base, casing and 3 panel doors with hardware Heating Replace all vent covers in home with white vent covers _ Install new fan/light fixtures in bathrooms to include proper venting Inspect and clean furnace (to bid any necessary repairs) Mirror Reuse mirror in main bathroom _ Replace mirror in master bathroom Alternates: Tile Install tie backsplash in kitchen.$2.00 sf the allowance included add $ 450.00 roof _ Remove all existing shingles and re-roof entire house with add $ 7,000.00 Tile 30-year architectural shingles (color TBD by owner) Install ceramic tile in front entry in place of vinyl (color TBD by owner) add $ 250.00 Install ceramic tile for main bath floor in place of vinyl (color TBD by owner) add $ 250.00 Install ceramic tile for master bath floor in place of vinyl (color TBD by owner) add $ 125.00 Install ceramic tile in basement hallway in place of vinyl (color TBD by owner) add $ 125.00 Includes $2.00 sf allowance for tile Plumbing Convert existing master bath linen closet into XX 4' the shower With fiberglass pan (color RBD by owner) _ Coordinate the installation of new plumbing and moving of existing plumbing as necessary Toilet will have to be moved. Vanity will be downsized to accommodate the installation of a new shower. Cabinet Install 12" linen cabinet next to new vanity cabinet (wall side). add $ 3,500.00 Elec I Install can light over new shower. Plumbing Move dryer and washer location to east wall of utility room Provide all necessary took-ups on east wall for these appliances add $ 500.00 Dumpsters Included Overage allowance Allowance $ 3,000.00 Total $ 151,898.40 $ 18,950.00 Higgins Construction LLC 9009 46t1 Avenue North New Hope, MN 55428 Mike Higgins 612-991-9151 Mhh o" 1 O2C ?01.CL City of New Hope 3984 Zealand Ave N New Hope MN Licensed (## BC634100), EPA lead certification NAT -117523-1 bonded and insured. Family owned and operated business with 23 years of experience in the construction field and jobs done well to exceed your expectations. 2013, 2014, 2015 and 2016 Angle's list super service award winner. Project: Whole house remodel Add permits and dumpsters as needed for all projects See attached document for scope of improvements Full list of all improvements to scope of city as layed out in attached document. Cost for all improvements $172,000.00 Windows to be thermos-thec windows to meet code Allowance for all lights around house $2,500.00 Allowance on tile $5 sq ft There are a few items that cannot be predicted such as furnace water heater and plumbing without having water on and opportunity to turn all appliances on. Should have a 10%-20% overage in contract for unseen items and other things that may need to be addressed as the project proceeds Terms: 10 % contract signing 30% start 50% progress payments 10% on walk though Higgins Construction City of New Hope By signing this contract, you agree to have Higgins Construction do the above-described work and we agree to complete the project as stated to your satisfaction. If there is any unseen items that are not accessible before there may be additional charges most charges come from change orders on the customer's side. Any person or company supplying labor or materials for this improvement to your property may file a lien against your property if that person or company is not paid for the contributions. Under Minnesota law, you have the right to pay persons who supplied labor or materials for this improvement directly and deduct this amount from our contract price, or withhold the amounts due them from us 120 days after completion of the improvements unless we give you a lien waiver signed by the persons who supplied any labor or materials for the improvement and who gave you a timely notice. Ten optional items all items are in addition to contract the is above and cost is over and above that. 1. Granite in kitchen in palce of laminate $2,000.00 2. Back splash in kitchen $5 sq ft allowance $1,500.00 3. Re roof house with lifetime timberlines $8,500.00 4. Entry tile in place of lamante $300.00 5. Tile in main bath $400.00 6. Master bath tile $300.00 7. Basement hall in tile $800.00 S. Master shower and other changes as in scope $7,500.00 9. Move washer and drier as in scope $3,000.00 10. Take out driveway and do in tar $3,000.00 3984 Zealand Scope of Work Base Improvements Exterior: • Remove and replace cracked concrete sections in driveway and sidewalk. • Remove vines and trees from storage area on west side of home. • Remove the two small trees from front of home (marked with green paint) • Re -paint entire exterior of home, two colors, one for trim, and one for primary siding areas. (colors by owner) • Paint brick and handrail on front of home to match trim. • Clean out all gutters and paint existing downspouts to match trim. • Remove garden shed from rear of home. • Remove existing fencing, deck, landscaping timbers, freestanding light, gas grill, and doghouse from rear of home. • Build new 14' X 12' treated deck on back of home; include stairs and 4' X 4' landing. • Re -grade disturbed areas in back yard, spread topsoil, and seed. • Remove and replace all existing light fixtures from exterior of home. • Remove all windows in home and replace with new replacement style windows, white, energy star rated, vinyl, meet egress requirements when necessary. Provide spec sheet for selected windows with bid. • Paint exterior side of front entry door (color by owner) • Remove and replace overhead garage door, maintain existing opener. New door shall be plain white, insulated, with no windows. Kitchen and Dining: • Remove all existing kitchen cabinets, countertops, soffit, sink, and appliances, dispose of appliances. • Install new, mid -grade, white kitchen cabinets with laminate counters. See attached example layout for new kitchen configuration. New layout includes a 5' island with overhang seating. Install and move utilities as necessary. See attached picture of sample kitchen for a general concept reference. (countertop color by owner) • Install new stainless steel double basin sink and faucet with sprayer. • Remove existing light fixture in center of kitchen and install new surface mount 3 -bulb fixture. Install new double pendant fixture over island. (provide light fixture allowance) • Install four new can lights in kitchen, evenly spaced. • Remove existing light fixture above sink, replace with new hanging single pendant (provide fixture allowance) • Remove all existing wallpaper and wainscoting. • Completely remove the partition wall that separates the kitchen and dining room from the living room. Re -arrange mechanical work as necessary, electrical and HVAC. • Remove existing walk door and fill-in door space. Install new 6' patio slider door in location of current dining room windows. Re -arrange mechanical work as necessary, electrical and HVAC. Re -use walk door in basement as per specs. • Fix all sheetrock defects in walls and ceilings, and remove existing texture from the ceiling. • Spray ceiling with medium knockdown texture. • Walls shall remain with flat finish. • Paint ceiling white. • Paint all walls in eggshell finish. (color by owner) • Remove existing flooring from kitchen and dining rooms. Install oak hardwood to match existing flooring in living room. Stain and finish all wood flooring, new and old to match. (color by owner) • Install new pre -finished poplar baseboard, white. • Install new pre -finished poplar door and window casing, white. • Remove and replace dining room light fixture, new fixture will be chandelier style (provide fixture allowance) Main Floor Living Room: • Remove existing carpet and pad. • Re -finish existing hardwood floors to match kitchen and dining. • Install new pre -finished poplar baseboard and window casing, white • Re -paint existing metal handrail. (color by owner) • Remove existing window coverings. • Fix all sheetrock defects. • Remove texture from ceiling, re -spray with medium knock down, and maintain flat walls. • Paint ceiling white, paint walls with eggshell finish. (color by owner) • Remove and replace existing HVAC grills, outlet covers, switch covers with new, white. • Install four new can lights evenly spaced in room. Front Entry and Stairs: • Remove and replace hanging light fixture. (provide fixture allowance) • Remove carpet on stairs and finish existing wood to match floors, include skirts. • Remove existing vinyl flooring on landing and replace with new vinyl flooring (color by owner) • Fix sheetrock defects. • Remove wallpaper and prep for paint. • Install new pre -finished poplar door casing, white • Finish ceilings to match living room. • Finish walls to match living room. Main Floor Hallway: 0 Remove wallpaper and prep for paint. Maintain flat walls. • Remove carpet and pad. • Re -finish existing hardwood flooring to match living room. • Install new pre -finished poplar baseboard, white. • Remove existing hall closet door. Replace with pre -finished, pre -hung, hollow -core, 3 - panel door. Casing to match windows. Provide and install handle set. • Remove and replace existing surface mount light. (provide fixture allowance) • Provide and install new outlet and switch covers, white. • Fix all sheetrock defects. • Finish walls and ceiling to match living room. • Install hardwired smoke/ CO2 detector to meet code. Main Bath: • Remove existing vanity and counter top. Replace with new, mid -grade, white vanity cabinet and pre -formed cultured top with built-in sink. Install new faucet. • Remove all wallpaper and file wainscoting. Repair sheetrock where necessary. • Remove existing toilet. Replace with new white toilet with elongated bowl. • Remove existing file flooring, repair subfloor where necessary. • Install new vinyl flooring. (color by owner) • Remove existing tub and shower surround. • Install new, white fiberglass tub/shower surround, showerhead, and faucet. • Install new HVAC grills, outlet covers, and switch covers, white. • Paint existing linen cabinet door white. • Install new white trims for existing can lights. • Re -use existing wall mounted mirror. • Remove existing bath fan, and replace with fan/light combo in same location. Ensure that fan is vented to the exterior of home. • Install new code compliant outlet. • Paint ceilings white. • Finish walls with flat finish, paint with semi -gloss. (color by owner) • Remove existing entry door. Replace with pre -finished, pre -hung, hollow -core, 3 -panel door. Casing to match windows. Provide and install locking handle set. Master Bath: • Remove existing toilet. Replace with new white toilet with elongated bowl. • Remove existing vanity and counter top. Replace with new, mid -grade, white vanity cabinet and pre -formed cultured top with built-in sink. Install new faucet. • Remove existing tile wainscoting and replace with sheetrock. • Remove all wallpaper. • Remove existing tile flooring. • Install new vinyl flooring. (color by owner) • Install new fan/light combo in main area of bathroom, vent to outside. • Remove existing mirror cabinet and replace with standard wall mount mirror centered on new vanity. • Install new code compliant outlet for vanity. • Provide and install new wall mounted light fixture over vanity mirror. (provide fixture allowance) • Finish ceiling with medium knock down finish and paint white. • Finish walls with flat finish and paint with semi -gloss. (color by owner) • Remove existing HVAC grill and replace with new, white. • Install pre -finished, poplar window casing, white. • Remove existing entry door and closet door. Replace with pre -finished, pre -hung, hollow -core, 3 -panel doors. Casing to match windows. Provide and install locking handle set for entry and regular handle for closet. Main Floor Bedrooms, Including Master: (3 total) • Remove existing carpet and pad. • Re -finish existing hardwood floors. (color by owner, will match kitchen, living, dinning) • Remove existing entry doors. Replace with pre -finished, pre -hung, hollow -core, 3 -panel door. Casing to match windows. Provide and install locking handle set. • Remove and replace existing HVAC grills, outlet covers, switch covers, white. • Install pre -finished, poplar window casing on all windows, white. • Install pre -finished, poplar baseboard, white. • Install surface mounted light fixture in center of each room. (provide fixture allowance) • Remove existing closet doors. Replace with pre -finished, hollow -core, 3 -panel, and bypass style doors, white. Casing to match windows. • Install new white trims for can lights. • Keep existing ceiling texture, and re -paint with white. • Fix any sheetrock defects. • Remove all wallpaper. • Keep flat finish on all walls, and re -paint with eggshell (color by owner) • Paint existing closet wall shelving and rods white. • Install hardwired smoke detectors to meet code. Basement Living Room and Hallway: • Remove carpet and pad. • Install new carpet and pad in living room. • Install vinyl flooring in hallway. (to match front entry) • Remove all existing wall coverings, wallpaper, paneling, faux brick, mirrors, and sheetrock. (north wall sheetrock is water damaged) • Cover all walls with new sheetrock and finish with flat finish. • Remove faux beams on ceiling, reroute electrical. • Remove existing texture from ceilings, install new sheetrock where necessary, and finish with medium knock down, paint white. • Replace existing awning window as part of window replacement schedule. • Install new can light trims for all can lights, white. • Remove folding partition wall and track system. • Remove living room closet and reclaim closet space as part of the utility room. • Remove window on north wall and fill in with framing. This window is under the deck and no longer needed. • Remove existing shelf below windows on south wall. Maintain egress requirements with the installation of the new windows. • Install pre -finished, poplar baseboard, white. • Remove existing entry door into laundry room and hall closet door. Replace with pre - finished, pre -hung, hollow -core, 3 -panel door. Casing to match windows. Provide and install handle set. • Remove existing HVAC grills, outlet covers, and switch covers. Replace with new, white. • Remove and replace surface mount light in hallway. (provide fixture allowance) • Install pre -finished, poplar window casing on all windows, white. • Install hardwired smoke and CO2 detectors to meet code. Utility and Laundry Room: • Inspect and repair plumbing as necessary. • Have furnace inspected and cleaned. • Have water heater inspected and cleaned. • Remove plug-in style fluorescent light fixture. • Install two new porcelain ceiling lights in -conjunction with existing ceiling light. • Remove and dispose of chest freezer, clothes washer, and dryer. • Paint floor with garage floor paint. • Hang sheetrock on all walls, leave un -finished Garage: • Remove all existing wall paneling and replace with sheetrock. Tape seams of sheetrock where necessary to meet fire code. • Retain existing overhead door opener and re -use. • Clean and prepare floor for garage floor paint. Paint with garage floor coating. (color by owner) • Remove all plug-in style florescent lights from ceiling and walls. • Install four ceiling mounted lights evenly spaced throughout garage. • Remove and abandon wall heater unit. Terminate utilities as necessary. • Remove and replace awning window. • Remove existing walk door into house. Replace with door that was removed from dining room. • Remove and replace water damaged sheetrock on walls. • Re -paint ceiling, white. Alternates: 1. Install granite counter tops in kitchen in place of laminate. (color by owner) 2. Install tile backsplash in kitchen. 3. Remove all existing shingles and re -roof entire house with 30 -year architectural shingles. (color by owner) 4. Install ceramic tile in front entry in place of vinyl. (color by owner) 5. Install ceramic tile for main bath floor in place of vinyl. (color by owner) 6. Install ceramic tile for master bath floor in place of vinyl. (color by owner) 7. Install ceramic tile in basement hallway in place of vinyl. (color by owner) 8. Convert existing master bath linen closet into 3' X 4' tile shower with fiberglass pan. (tile color by owner) Coordinate the installation of new plumbing and moving of existing plumbing as necessary. Toilet will have to be moved. Vanity will be downsized to accommodate the installation of a new shower. Install 12" linen cabinet next to new vanity cabinet (wall side). Install can light over new shower. 9. Move dryer and washer location to east wall of utility room. Provide all necessary hook- ups on east wall for these appliances. 10. Remove entire existing concrete driveway and repave with new bituminous driveway. Request for Action February 13, 2017 Approved by: Kirk McDonald, City Manager Originating Department: Community Development By: Aaron Chirpich, CD Specialist Agenda Section EDA Item Number 4 Agenda Title Resolution approving Purchase Agreement for the acquisition of 3984 Zealand Ave N (project no. 997) Requested Action Staff requests the EDA authorize entering into a Purchase Agreement for the acquisition of 3984 Zealand Avenue North, for $165,000 (purchase price) plus any associated fees. Policy/Past Practice In the past, the EDA has successfully acquired vacant and distressed properties as part of the city's scattered -site housing program. Background The EDA has directed community development staff to pursue the acquisition of distressed single-family homes. For the past two years, the EDA has focused on homes that were candidates for demolition. During this time, the EDA has purchased seven homes that have been razed to make room for the construction of ten new homes. Staff remains committed to finding additional opportunities for demolition. However, these properties have become more difficult to acquire for a variety of reasons. The primary barrier is lack of inventory, as the EDA has purchased many of the worst single-family nuisance properties available in the city. Secondly, the market for distressed properties has become much more competitive. This competition has led to a rise in prices that has coincided with an improving economy. These market forces have led staff to research opportunities within the rehabilitation sector, as staff have identified what staff considers a market failure. As acquisition prices have risen, the back -end sales value of the newly rehabilitated homes has not kept pace. In other words, investors are paying more for distressed properties, and completing fewer improvements on each project. This provides an opening for the EDA to produce what should be a better product. The EDA is motivated by improving neighborhoods, rather than profit. As such, the EDA has the ability to invest more money into each project, with the goal of breaking even. For example, staff have observed several recent "flips" within the city where very few exterior improvements have been completed. Often times, the exterior amenities such as siding, windows, and roofing remain untouched, as they are expensive to replace. This is an area where staff see a chance for the EDA to make headway. The portion of the project that would typically go to investor profit can now be applied to improving the appearance of these homes from the curb. Exterior improvements have the biggest impact on the so-called "keeping up with the Joneses" effect that staff want to stimulate in the city's core neighborhoods. 3984 Zealand 3984 Zealand is a vacant and foreclosed property that was part of an estate. The former owners had secured a reverse mortgage on the home before passing away. The home has received very few upgrades since it was built in 1964, and suffers from a lack of general maintenance. Despite its deficiencies, it remains a solid home I:\RFA\COMM DEV \ Development \ Q & R 3984 Zealand Acquistion 2-13-17.docx Request for Action, Page 2 with enough positive attributes to build off. As such, staff recommend acquiring this home in order to complete a demonstration project. Staff feels that the timing is right to enter this market and begin investing in rehabilitation opportunities. The highlights of work that staff would like to complete on the home include: • New roof, siding, windows and overhead garage door • New kitchen • Re -condition existing hardwood floors • Re -model the master bath • Gut main bath and replace with new fixtures • New interior doors and trim • Fresh paint throughout • New carpet in lower level 3984 Zealand was offered for sale with a list price of $150,000. After viewing the property, staff submitted an offer of $157,000 in anticipation of heavy competition for the home. Staff were notified two days later that the seller had received multiple offers, and was requesting the "best and final" offer from each interested buyer. Staff responded by increasing the EDA's offer to $165,000, and the seller accepted. The offer submitted is contingent upon EDA board approval. A full project budget is attached to this RFA. Funding Staff recommend using EDA funds for this project, as the goal is to recapture the EDA's investment through the sale of the home. With no anticipated loss, the EDA can avoid the use of CDBG grant funds that come with income restrictions for the back -end buyer. This means that the EDA can sell the home to anyone regardless of income. Staff feel that this approach will allow the EDA to maximize the value/sales price of the home. Recommendation Staff is seeking approval of the acquisition of 3984 Zealand Avenue. Staff recommends the EDA approve the attached resolution prepared by the City Attorney and the terms of the attached purchase agreement. Attachments • Resolution • Project budget • Location map • MLS listing for the property • Purchase agreement CITY OF NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 17-02 RESOLUTION APPROVING PURCHASE AGREEMENT FOR THE ACQUISITION OF 3984 ZEALAND AVENUE NORTH (project no. 997) BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope ("EDA") as follows: WHEREAS, on September 22, 2014, the City Council adopted Resolution No. 14-126 at the City Council meeting authorizing City community development staff to actively pursue the acquisition of distressed single family homes for potential purchase by the EDA, as part of the City's scattered site housing program; WHEREAS, the City Council has directed City staff to negotiate for the terms most favorable to the City and EDA, and the execution of purchase agreements so as to secure purchase rights for these real properties, contingent on the review and approval of the EDA to the terms of the purchase agreements; WHEREAS, City staff have identified the opportunity to purchase certain real property which has been foreclosed upon located at 3984 Zealand Avenue North, New Hope, MN, P.I.D. 18-118-21-42- 0041, and legally described as: Lot 10, Block 2, Hipp's Hopewood Hills Revised Addition, Hennepin County, Minnesota (the "Property") from The Bank of New York Mellon, as Trustee for Mortgage Equity Conversion Asset Trust 2010-1 ("Seller"); WHEREAS, the Property is currently unoccupied; WHEREAS, the house located on the Property was built in 1964, and while suffering from a lack of general maintenance and upgrades, is a solid home that City staff believes could be rehabilitated; WHEREAS, City staff believes that the best use of the Property is rehabilitation and renovation; WHEREAS, the Property will be acquired with EDA funds; WHEREAS, it is in the best interest of the EDA to purchase the Property from Seller, in order to rehabilitate the Property in accordance with the City's scattered site housing program and policy; and WHEREAS, City staff is hereby seeking approval from the EDA of the Purchase Agreement, subject to the review and approval by the City Attorney of proper title evidence and other terms relating to the closing on the sale of the Property. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference. 2. It is in the best interest of the EDA to purchase the Property for rehabilitation in accordance with the City's scattered site housing program and policy. 3. That the purchase of the Property by EDA from Seller, for a sum of $165,000.00, with other terms and conditions as set forth in the Purchase Agreement attached hereto as Exhibit A, is approved subject to the review and approval by the City Attorney of proper title evidence and other terms relating to the closing on the sale of the Property. 4. The City and EDA shall use due diligence for rehabilitating the Property's condition and conducting any necessary renovations and cleanup of the Property to pursue this rehabilitation purpose and return the Property to the tax rolls for the benefit of all taxing jurisdictions. 5. The President and Executive Director and the New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional actions are necessary or desirable, to complete the purchase of the Property in accordance with the Purchase Agreement. Dated the 13th day of February, 2017 Kathi Hem en, President Attest: Kirk McDonald, Executive Director 3. 4. 5. 6. 7. 8. 9. i0. ii. BUYER (S): PURCHASE AGREEMENT TMs form aWwad by ft minnsaora Assodatbn of REALTOW, which oma any ftbft arwna ail d on or misuse of v" form. a 2018 Wnnesma MsWMM of WALTO", Edina, mN 1. Date -3I -i7 �n r 2. Pagel of r l� l'+s"js� r 19 A Buyer's earnest money In the amount of 67^R �+� 4- a0�laa Dollars ($ tO � ) shall be delivered to listing broker no later than two (2) Business Days after Final Acceptance bate of this Purchase Agreement. Buyer and Seller agree that listing broker shall deposit any earnest money in the listing broker's trust account within three (3) Business Days of receipt of the earnest money or Final Acceptance Daft of this Purchase Agreement, whichever Is later. Said earnest money Is part payment for the purchase of the property located at 12. Street Address: 3981 sealand Ave 13. City of Now noua , County of xean pin 14. Stage of Minnesota, legally described as 15 Lot 10 Block 2 Hipps Hopewood Hills Revised 16. 17, Said purchase shall Include all Improvements, fixtures, and appurtenances on the property, If any, including but not 18. limited to, the following (collectively the "Property'): garden bulbs, plants, shrubs, tress, and lawn watering system; 19. shell; storm sash, storm doors, screens, and awnings; window shades, blinds; traverse, curtain, and drapery 20. rods, valances, drapes, curtafns, window ooverings, and treatments; towel rods; attached lighting and bulbs; tan fixtures; 21. plumbing fixtures; garbagedisposals; water softener; water treatment system; water heating systems, heating systems; 22. air exchange system; radon mitigation system; sump pump; TV antenne/cable TV lacks and wiring/TV well mounts; 23, waWceRing-mounted speakers and mounts; carpeting; mirrors; garage door openers and all conlrols; smoke detedors; 24. fireplace screens, door, and hoatllators; BUILT-INS: dishwashers; refrigerators; wine/beverage refrlgerators; trash 25. compactors; oven; cook -top stoves; warming drawers; microwave ovens; hood fans; shelving; work benches; Intercoms; 26. speakers; air conditioning equipment; electronic air filter; humidifler/dehumldNler; liquid fuel tanks (and controls); 27, pooltspa equipment; propane tank (and controls); security system equipment; N satellite dish; AND the following 28. personal property shall be transferred with no additional monetary value, and free and dear of an hens and encumbrances: 29. xose 30. 31. Notwithstanding the foregoing, leased fixtures are not included. 32. Notwithstanding the foregoing, the following hem(s) are excluded from the purchase: 33. 34. _ 35. Seller hlis agreedProperty to to sell the Propeto Buyer for the sum of ($ ) 36. '"`"'�1"A '� ��-�' Dollars, 37. which Buyer agrees to pay in the owing manner. 38. 1. CASH of D 0 percent (%) of the sale price, or more in Buyer's sole discretion, which includes the earnest 39. money; PLUS 40, 2. FINANCING of percent N of the sate price, which will be the total amount secured against this 41. Property to fund 'his purchase. 42. Such inandng shall be: (Check one.) ❑ a first mortgage; 0 a contract for deed; orE] a first mortgage with 43. subordinate financing, as described in the attached Adder4m. 44. [] Conventional ❑ FHA ❑ DVA 0 Assumption 0 Contract for Deed. 45. The date of closing shall , MK.I*-1 Mel n 4:(- v4 v k rCeo,4 Vp 0 a i4cCi, r Qn a ►�7 6e moi✓ 30�a-75 / -tie, i f of �el1-er S 5 y� ed CCer v�l6e-, REO ADDENDUM THIS ADDENDUM IS ATTACHED TO AND MADE PART OF THE REAL ESTATE PURCHASE CONTRACT, HEREINAFTER REFERRED TO AS "CONTRACT", BETWEEN THE UNDERSIGNED PARTIES CONCERNING THE PROPERTY AT: 3984 Zealand Avenue North, New Hope, MN 55427 PROPERTY ID: 1032696 1. In the event there is a conflict between the terms of the Contract and this Addendum, the terms of this Addendum shall apply and shall supersede and replace anything to the contrary. 2. Buyer(s) agrees that the title shall be conveyed by Special Warranty Deed. 3. Buyer(s) further agrees for Buyer(s) Earnest Money Deposit is to be placed in a trust account of Seller's designated Title/Escrow/Closing entity within 2 business days of contract acceptance. 4. If financing is involved, Buyer(s) shall apply for a loan within five (5) calendar days from the effective date of the Contract (Seller's signature date on counter offer) and be approved within twenty-five (25) calendar days from the date of application, or the Contract shall become null and void at Seller's option. 5. It is understood between Buyer(s) and Seller that this property is being sold in "Where -Is", "As -Is" condition, at time of closing with no Seller representations or warranties, expressed or implied by Seller, our Client, Resnet or the local Listing Agent. If Buyer(s) lender requires repairs, they shall not be initiated until Close of Escrow. 6. Property taxes shall be prorated to the day of closing. Seller agrees to termite report being ordered at buyer's expense; however, if evidence of active termite infestation is found, Seller agrees to treat said infestation at a cost acceptable to Seller. Seller shall not be responsible for any structural damage and/or repairs. 8. Occupancy of the Subject property shall not be permitted prior to closing. 9. Buyer(s) shall make a complete inspection of subject property within the time frame specified in the counter offer addendum. In no event will Seller be obligated for any repairs or replacements unless Seller has agreed in writing to make repairs, and/or credits as specified in the counter offer addendum. 10. Buyer(s) acknowledges that subject property was acquired by the Seller as a result of a foreclosure sale or by deed in lieu of Foreclosure and that Seller has not occupied this property and has no personal knowledge of its condition or the existence of any defects. Personal property is not considered part of this Addendum. 11. Buyer(s) acknowledges that the terms and condition of the Contract and this Addendum shall survive the closing. 12. Closing of this sale constitutes acceptance by Buyer(s) of condition of property and Seller shall have no further liability thereon. 13. Buyer(s) will acknowledge and execute REO Escrow Closing Disclosure for Buyers Choice. Buyer(s): Seller: I te: �kl Date: Date: REO Escrow/Closing Disclosure for Buyer's Choice Property Address: 3984 Zealand Avenue North, New Hope, MN 55427 ("Property") Buyer(s) - City of New Hope Economic Development Authority, hereby acknowledge the following terms in the RMS - MECA 2010 Trust ("Seller") Real Estate Purchase Addendum: Seller acknowledges Buyer's right to choose the escrow/attorney/settlement closing company ("Settlement/Closing Company") and/or title insurance company ("Title Insurance Company") to issue title insurance for the Property, (collectively referred to as closing service providers). If Buyer elects to choose Seller's designated Settlement/Closing Company and Title Insurance Company, the Buyer(s) and Seller agree each will pay one-half (1/2) of the total settlement fee charged by Seller's designated closing service providers and Seller shall pay the premium for the owners' policy of title insurance. Notwithstanding anything stated herein to the contrary Buyer hereby acknowledges and agrees Buyer shall be obligated to pay -including but not limited to, document preparation charges, loan tie in fees, overnight charges and wire fees. Should the Buyer select a Settlement/Closing Company or Title Insurance Company provider other than the Seller's designated closing service providers Buyer shall pay all costs and charges charged by Buyer's choice closing service providers including those costs and charges customarily paid by the Seller. Buyer shall also pay the premium for the owner's policy of title insurance. PLEASE INITIAL ONE OPTION: Buyer agrees to use Seller's designated closing service providers. The Buyer(s) and Seller agree they each will pay one- half (1/2) of the settlement fee charged by Seller's designated closing service providers and Seller shall pay the premium for the owners' policy of title insurance. Notwithstanding anything stated herein to the contrary Buyer hereby acknowledges and agrees Buyer shall be obligated to pay including but not limited to document preparation charges, loan tie in fees, overnight charges and wire fees. (Buyer initial;��/ ) (Buyer's Agent initials: OR Seller hereby agrees and acknowledges Buyer has the right to select the Settlement/Closing Company and Title insurance Company. In this regard the Buyer has selected its own Settlement/Closing Company and Title Insurance Company other than Seller's designated closing service providers therefore Buyer agrees as follows: Buyer will pay ALL title insurance and settlement/closing fees, including those customarily paid by the Seller. (Buyer nitials /_� (Buyer's Agent initials: --------------------------- -------- ------------- -----------------------------=---- -- --- ------ -------------------------------------------------- ------------------------------- --------- .......... ..............- - ...... .................... -....... -............... _ Buyer Signature Date Buyer Signature Date Selling/Buyer's Agent Date REO Case #: Property SKey: 1032696 Property Address: 3984 Zealand Avenue North, New Hope, MN 55427 Code Violation Acknowledgment Disclosure ("Disclosure") Purchaser and Purchaser's Agent acknowledge the possibility that there may be or are active unrecorded local County, City and/or other Municipal code violations with regard to the property being purchased under the applicable Agreement of Sale between the Purchaser and Seller referred to herein. To the best of the Seller's knowledge the only Code Violation(s) on the subject property are attached as Exhibit A. Purchaser acknowledges that Seller and/or its affiliates, agents and/or authorized representatives have not made and do not make any representations or warranties expressed or implied regarding the existence of any other Code Violation(s) and/or the condition of the Property. Purchaser hereby accepts the Property "as is" with regard to any Code Violation(s), including the ones listed on Exhibit A, and shall not seek reimbursement from Seller and/or any of its affiliates, agents and/or authorized representatives for such Code Violations. Purchaser hereby acknowledges that the Owner's Title Insurance policy and Lender's extended policy will not cover Code Violations, penalties, fees, or assessments which are not disclosed on/by the local public property's record as of the date of the policy of title insurance. By executing below, Purchaser hereby waives any and all right to make any claim whatsoever for Code Violation(s), including the ones listed on Exhibit A, assessments or other matters affecting the Property against Seller, and/or any of its affiliates, agents or authorized representatives. This Disclosure is hereby incorporated by this reference into the Agreement of Sale dated — P by and between Seller RMS - MECA 2010 Trust and Buyer City of New Hope Economic Development Authority ("Agreement") and made a part thereof. Notwithstanding anything stated in the Agreement to the contrary in the event there is a conflict between the terms and conditions of this Disclosure and the Agreement the terms and conditions of this Disclosure prevail and supersede said Agreement. Agreed and accepted this day of , 20_ Purchaser: Purchaser: Purchaser Broker/Agent: REO #: Addendum Seller: Purchaser: Property: Seller and Purchaser mutually agree to amend the State Contract as follows: Seller does not agree to certain terms detailed in the Residential Purchase Agreement: • Seller does not agree to convey property in the same condition as of the date of acceptance. • Seller will not maintain the pool or spa. • Seller does not guarantee that all debris will be removed and that property will be broom swept. Property sold "as is" at the time of closing. • Seller will not provide utilities at any time. Utilities will be made available for the inspection at the buyer's expense. • Seller does not agree to mediate or arbitrate. • Property is going to be transferred by a special warranty deed. ® Property sold "As -Is" at time of closing. • This offer has been approved by RMS subject to the terms of this counter, and execution of contract with all required REO addendums contingent upon buyer's appraisal being equal to but not less than offer price • If HUD requires the Seller to complete an updated appraisal and that appraisal values the property at a higher amount than the fully executed contract price, the Buyer and/or SeUer reserve the right to terminate the contract and return the full escrow deposit to the buyer. • Seller will not provide, credit, or reimburse for any type of survey. • Agents are not able to charge and processing fees on the HUD -1 Settlement Statement • Seller will not pay for or provide a well, termite or septic inspection at any time. • Seller will not pay for, nor reimburse buyer for any home warranty • The earnest money deposit will be in the name of the seller's title company and will be deposited with the seller's title company within 48 hours of contract ratification. SELLER PURCHASER: PURCHASER: OFFER ACKNOWLEDGMENT AND ACCEPTANCE - 56883 Reference is made to the Real Estate Purchase Contract, Real Estate Purchase Addendum, or the RMS REO Addendum dated 2/6/2017 pertaining to the Real Property known as New Hope, MN 55427 3984 Zealand Avenue North of New Hope Economic Development Authority hereafter referred to as "Buyer", and RMS - MECA 2010 Trust "Seller". Your offer has been approved by REO Management Solutions, LLC(RMS) on behalf of RMS - MECA 2010 Trust and is subject to (RMS - MECA 2010 Trust made between final approval. The terms of the transaction are as follows: Sales price is to be $ ( 165, 000.00 ) Sale is to close on or (60) calendar days for financing and (30) days for cash from date of Seller's signed acceptance of the Fannie Mae Real Estate Purchase Addendum or the RMS REO Addendum and the Offer Acknowledgement and Acceptance. Buyer agrees to pay a $ ( ) per diem for each day the closing is extended if the transaction does not close as stated above by no fault of the Seller, if an extension is requested by Buyer a non-refundable deposit may be required. Buyer(s) to complete all inspections within 10 calendar days from the Acknowledgement Date on the Fannie Mae Real Estate Purchase Addendum or the Seller signed date of the RMS REO Addendum Seller will credit buyer up to $ in closing costs. Seller to credit buyer up to $ for a home warranty. Seller to credit buyer up to $ for an inspection fee. Seller to credit buyer up to $ for a survey fee. Seller to credit buyer up to $ for a termite inspection. Earnest money deposit to be $ 1,000.00 This Offer Acknowledgement and Acceptance is an advisory document to include the following information for buyer's consideration and awareness: - Buyer(s) minimum deposit requirement on all cash offers to be 10% of negotiated sales price or $1,000 minimum; whichever is greater. All financed offers to be 1% of sales price or $1,000 minimum, whichever is greater. - Buyer(s) have 3 days to accept this offer. Buyer(s) agrees to immediately deliver to Seller/Seller's agent the signed (RMS - MECA 2010 Trust) Real Estate Purchase Addendum, the state Promulgated Real Estate Purchase Contract, Offer Acknowledgement and Acceptance and all required documents upon Buyer(s) signature thereon. - Seller will not pay, reimburse nor credit Buyer(s) for FHA or other loan/financing costs or fees; nor pay for or credit any other costs, fees, surveys, home warranty plans, inspections or repairs unless otherwise stated as defined above. - This Offer Acknowledgement and Acceptance cannot be extended or assigned without prior written approval from Seller. Seller will not provide financing. Property taxes shall be prorated to day of closing. - It is understood between Buyer(s) and Seller that this property is being sold subject to (RMS - MECA 2010 Trust) requirements and HUD Guidelines. - In the event that the appraisal upon which this Offer Acknowledgement and Acceptance is based expires, and Seller's new appraisal justifies that a higher contract price be charged for the subject property, Buyer(s) and Seller reserve the right to terminate this contract and have Earnest Money Deposit returned to the Buyer(s). - In the event of a per diem charge, Buyer(s) authorizes Seller to debit their escrow deposit to cover those charges. Buyer has the right to inspect the property during the due diligence period. BUYERS ARE NOT ALLOWED TO COMPLETE INSPECTIONS PRIOR TO RECEIVING THE SELLER EXECUTED CONTRACT. Any utility connections must be connected in Listing or Selling Agent's name at buyer's expense. Utilities are only allowed during inspection period! Property is to be transferred by a Special Warranty Deed. BUYER, BUYER'S CONTRACTOR OR BUYER'S AGENT ARE NOT PERMITTED TO COMPLETE ANY REPAIRS PRIOR TO CLOSING! SHOULD BUYER COMPLETE REPAIRS PRIOR TO CLOSING BUYER FORFEITS ALL REPAIR COSTS INCURRED. Buyer(s) participating in a highest and best, multiple offers situation understand that any special consideration for concessions, repairs or switch from cash to financing may result in seller terminating this agreement and retaining buyer's Earnest Money Deposit. Seller reserves the right to continue to market said property and accept any contract of Seller's choosing prior to Seller's written acceptance of client required addendums, Promulgated Real Estate Purchase Contract, Offer Acknowledgement and Acceptance and required documents. ALL CONTRACTS ARE TO BE UPLOADED INTO REOCENTRAL The negotiated terms in this Offer Acknowledgement and Acceptance is subject to the terms and conditions set forth in the Fannie Mae Real Estate Purchase Addendum or the RMS REO Addendum. Buyer Type: Owner Occupant: OR Investor: Please note REO Management Solutions, LLC (RMS) represents many clients and buyer(s) may be subject to a deed restrictions based on buyer type i.e. (owner or investor). This Offer Acknowledgement and Acceptance is accepted by the Buyer(s) and the Seller, as evidenced by Buyer(s) and Seller's signature hereon. This Offer Acknowledgement and Acceptance will serve only as an acknowledgement of buyer(s) acceptance and is not to be contractual or legally binding nor intended to supersede the Fannie Mae REPA (Real Estate Purchase Addendum) or the RMS REO Addendum. Acceptanc Bu (s) Acknowledges and ce is above terms and acknowledges receipt thereof by signing below: Buyer Date Buyer Date Acceptance: Seller Acknowledges and Accepts above terms and acknowledges receipt thereof by signing below: RMS - MECA 2010 Trust Seller Date Time is of the Essence! Therefore, submit your completed buyer(s) signed contract package. DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT AND/OR LEAD-BASED PAINT HAZARDS REO Case #: Loan #: 56883 Property Address: 3984 Zealand Avenue North, New Hope, MN 55427 Lead Warning Statement Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller's possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase, at purchaser's expense. Seller's Disclosure (Initial) (a) Presence of lead-based paint and/or lead-based paint hazards (check one below): ® Known lead-based paint and/or lead-based paint hazards are present in the housing (explain): Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing. (b) Records and reports available to the seller (check one below): ® Seller has provided the purchaser with all available records and reports pertaining to lead-based paint and/or lead-based paint hazards in the housing (list documents below): ® Seller has no records pertaining to lead-based paint and/or lead-based paint hazards in the housing Purchaser's Acknowledgment (Initial) (c) Purchaser has received copies of all information listed above. (d) Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. (e) Purchaser has (check one below): ® Received a 10 -day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead- based paint and/or lead-based paint hazards; or Waived the opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards. PURCHASER AGREES THEY ARE PURCHASING THE PROPERTY "AS IS," WITHOUT ANY REPRESENTATIONS OR WARRANTIES WHATSOEVER AS TO THE CONDITION OF THE PROPERTY. PURCHASER FURTHER AGREES THAT SELLER AND ITS SERVICERS, REPRESENTATIVES, AGENTS, ATTORNEYS, OFFICERS, DIRECTORS, EMPLOYEES, SUCCESSORS AND ASSIGNS HAS NO RESPONSIBILITY OR LIABILITY FOR, AND PURCHASER HEREBY UNCONDITIONALLY RELEASES SELLER AND ITS SERVICERS, REPRESENTATIVES, AGENTS, ATTORNEYS, OFFICERS, DIRECTORS, EMPLOYEES, SUCCESSORS AND ASSIGNS FROM, ANY AND ALL LIABILITY, BOTH KNOWN AND UNKNOWN, PRESENT AND FUTURE, THAT IS BASED UPON, OR RELATED TO, THE EXISTENCE OF LEAD OR LEAD-BASED PAINT ON OR ABOUT THE PROPERTY. Broker's/Agent's Acknowledgment (Initial) (f) Broker/Agent has informed the seller of the seller's obligations under 42 U.S.C. 4852d and is aware of his/her responsibility to ensure compliance. Certification of Accuracy The following parties have reviewed the information above and certify, to the best of their knowledge, that the information provided by the signatory is true and accurate. RMS - MECA 2010 Trust By: Seller Date Seller Date Bro nt Date Purchaser Date Broker/Agent Date Purchaser Date ***One thousand dollars and no cents*** Payee Address: Memo: 3984 ZEALAND AVE N WELLS FARGO BANK, N.A. 8320 42ND AVE N NEW HOPE, MN 55427 FOR INQUIRIES CALL (480) 394-3122 lie 096 59046 313n, is L 2 1000 2481:486 L 5 L L80 r-112 **$1,000.00** VOID IF OWER US $ 1,000.00 CONTROLLER February 7, 2017 To Whom It May Concern, The Economic Development Authority in and for the City of New Hope has been asked to provide verification of funds in the amount of $165,000 plus any additional fees for the purchase of 3984 Zealand Avenue North, New Hope MN, 55427. I hereby certify that the Economic Development Authority in and for the City of New Hope has the necessary cash resources available to complete the transaction proposed in the sellers Real Estate Purchase Agreement dated 1-31-17, submitted by the City of New Hope, Economic Development Authority for the purchase of 3984 Zealand Avenue North. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE By: Kirk McDonald Its Executive Director STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing was acknowledged before me this 7&day of February, 2017, by Kirk McDonald, the Executive Director, respectively, of the Economic Development Authority in and for the City of New Hope, a public body corporate and politic pursuant to the laws of the State of Minnesota. Notary Public �- 4 M DAVID E WALKER-CRAWFORD 4 Notary Public State of Minnesota My Commission Expires January 31, 2021 RESOLUTION NO. 14- 126 RESOLUTION AUTHORIZING CITY STAFF TO NEGOTIATE PURCHASE AGREE_'VIENTS AND EXPEND EARNEST MONEY FOR THE POTENTIAL ACQUISITION OF DISTRESSED AND/OR FORECLOSED REAL PROPERTIES RELATING TO THE CITY'S SCATTERED SITE HOUSING PROGRAM CONTINGENT ON CITY COUNCIL APPROVAL BE IT RESOLVED by the City Council of the City of New Hope as follows: WHEREAS, the City currently has a total of $373,189.36 of Community Development Block Grant ("CDBG") funding available for scattered site real estate acquisition, rehabilitation and re -sale activities, and WHEREAS, the City must use $116,189.00 of that fund balance no later than December 31, 2014, or it will be forfeited, and WHEREAS, at present the Twin Cities Community Land Bank ("TCCLB") has no real properties available for purchase in the City, and WHEREAS, City Staff desires to utilize all resources available to the City and maximize the value of those resources through active negotiation of contract terms favorable to the City and, as such, must expand its search for available real properties beyond the inventory of the TCCLB, and WHEREAS, City Staff requires the authorization and delegation from the City Council to use its discretion to locate potential distressed and foreclosed real properties for sale, negotiate for their purchase, and to expend earnest money to secure favorable purchase agreement rights, the terms of which shall be subject to the express review and approval of the City Council, and WHEREAS, by the adoption of this resolution the City Council hereby authorizes City Staff to locate, and enter into purchase agreement(s) for the purchase of distressed and/or foreclosed real properties, all contingent on the review and approval of the City Council to the terms of the purchase agreement(s). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of -New Hope as follows: The City Manager or his designee shall take all necessary steps to locate potential distressed and/or foreclosed real properties for purchase by the City, negotiate for the terms most favorable to the City, and the execution of purchase agreements so as to secure purchase rights for the real properties, contingent on the review and approval of the City Council to the terms of the purchase agreements. —1— 2. Earnest money may be deposited along with the purchase agreement(s) so long as it is refundable in the event the City Council does not approve the terms of the purchase agreement(s). 3. The purchase agreements shall provide that the real properties shall be conveyed to the City free from any and all use restrictions; however, the City's intended use of the real properties shall be for housing redevelopment and to promote home ownership in the City. 4. If the City Council approves the terms of a purchase agreement, the City shall use due diligence for correcting the real property's blighted condition and conducting any necessary environmental cleanup of the real property to pursue this redevelopment purpose and return the property to the tax rolls for the benefit of all taxing jurisdictions. Dated the 22 day of September, 2414. Kathi Hemken, Mayor Attest: Valerie Leone, City Clerk P:1AttorneylSAS11 Client Filesl2 City of New Hope199-10011(community development general)1Rasolution Authorizing City Staff to Negotiate for Purchase of Distressed and Foreclosed Properties.doc —2— Offer Summary Worksheet This summary worksheet must be presented with all offers. Most offers are submitted on a website and this contract information is required in order to submit the offer. Response time may vary from 1-7 days. Email is the preferred commun cation method. V1""[ WN sem+ Property Address: 3� �'`'�tl List Price: Buyer (1) as it will appear on title:`AL .Ayl,,� Rq. Buyer (2) as it will appear on title: Buyer must sinn all documents as name will appear on title Buyer address � �{a i C' "� �' City State ^I Zip S -S/24 Owner will occupy property? Yes C) No First time buyer? Yes () No Authorized signer for investor purchase: Earnest Money $ /Om Closing Date P& 02 Purchase Price $ 1 s I, 000 Mortgage Amount $ $ Seller paid closing costs $ -0" Down payment % Pre -approval letter attached or proof of funds if cash Yes (70 No Mortgage Type: Conv. 0 FHA () Rehab 0 Cash Is Buyer receiving down payment assistance? Yes C) If yes, type No Are you a Real Estate Agent representing yourself? Yes 0 Now Inspections Is offer subject to an inspection? Yes() No Requesting dewinterization / water on? Yes 0 No U ***BE AWARE on some properties, seller WILL NOT turn water on**** Code Compliance i Vacant Building Registration Agent to verify all city required work orders or violations. Buyer(s) responsible for all code violations, if applicable. Buyer and buyer agent to verify and accept building status as of date of closing. Buyer Agent Information Agent Name k4Lf" - 14-0.,,, CompanyName 14 R Company Address i °1 _P Z� # — City Zip SS 2 $ Agent Cell Phone C 12- M Agent Fax 7c:3 53-7 3-zc Agent Email Agent Signal Buyer(s) Sigi Property Address: AGENT and BUYER DISCLOSURE 9 Y1. Vim t,►� �z� IF YOU ARE UNSURE HOW TO ANSWER ANY OF THE FOLLOWING QUESTIONS PLEASE SEE YOUR BROKER. WE ARE REQUIRED TO DISCLOSE THIS INFORMATION TO OUR SELLER. 1. Is the Buyer a licensed agent? 0 YES a NO 2. Are you, the Buyer's agent, related to the Buyer? 0 YES NO Describe relationship: 3. Are you a licensed agent representing yourself? YES NO 4. Are you or your Broker an approved Freddie Mac/Homesteps broker/supplier? YES 5. Are you or your Broker an approved Fannie Mae broker/supplier? 6. Is the Buyer a Freddie Mac/Homesteps Employee: C) YES 7. Is the Buyer a Freddie Mac/Homesteps Supplier or Relative: U YES W NO 8. Is the Buyer a previous Mortgagor or Relative of previous Mortgagor: Agent Signature: Date: BUYERS) CONTACT INFORMATION SHE SUBJECT PROPERTY ADDRESS.*3 7 9 `i a w - ALL INFORMATION ON THIS SH EET IS 11UIREO N ORM TO SU13MIr YOUR CLIENTS OFFER SUYER(S)-ALL INFORMATION ON THIS SHEET 13 REQUIRED IN ORDER TO SUBMIT YOUR CLIENTS OFFER Name {s) :. Phone Number %G 3 s31 sW O ALL INFORMATION ON THIS SHEET 13 REQUIRED IN ORDER TO SUBMIT YOUR CLIENTS OFFER SELLING BROKEWBU_YER AGENT Company /+ Contact Person I o,� l Phone�%�3 �3 7 if ff 6IZ BI(, °2J" FaX '7L 3 J 3'7 -37--L4 r Emali Address Office Address t, 0-0 —Iall K (c s_ n &v t4tr i � s i�gent I®# a Office 1®44 a- 00 "z- c 3 r Al1-s) -7m;,0 y# r S—N-q-Z 1 LENDER ALL INFORMATION ON THIS SKEET IS REQUIRED IN ORDER TO SUBMIT YOUR CLIENTS OFFER Company/ Bank Name N / �- Contact"Person Phone Fax Email Address IMPORTANT: Please be sure that loan package is received by the closer / title company at feast 48-72 hours prior to scheduled closing or the closing may be delayed and a per dlem will be charged to your client. Buyers agent must notify the buyers lender end/or title of IMPORTANT11 THIS PURCHASE AGREEMENT HAS CHANGED EFFECTIVE 0611712008. PLEASE READ FAQ AND INSTRUCTION PAGE BEFORE PRESENTING OFFERS. YOU WILL FIND THE SUPPLEMENT ON THE MLS. Lender Questionnaire k14 Regarding the borrower: Property address: The borrower above has submitted an offer on our client's property, The Seller is requiring these questions to be answered before they will respond to the offer. Please fill out the attached questionnaire and return it to us ASAP so that the offer this borrower has written may be properly considered. Have you met with this borrower in person? Have you physically received W -2's, tax returns, etc.? Have you verified employment? Have you verified cash to close? If this is an FRA, Loan, In the earnest money being gifted? What type of loan is this, le subprime, non -conforming, conv, etc.? What is the borrower's middle credit score? Does the borrower have a property to sell? Is the borrower obtaining financing for more then one property at this time? What are the conditions of the approval you have provided other than acceptable title work and appraisal? Can earnest money be sourced properly? YES NO PLEAS$ NOTE: HUNEST MONEY. WILL NOT 8E REFUNDED IF NOT SOURCED OR SMONED CORRECTLY. I hereby certify that the Information provided above is true and correct to the best of my knowledge. I understand that this property is sold as -is and will not require any work order prior to closing. Signature of loan Officer Date Company Phone r hereby authorize my lender to provide the above Information about my loan application. Signature of Borrower Date. 3. BUYER (S): PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORS% which disclaims any liability a ising out of use or misuse of this form. ® 2016 Minnesota Ass latio of REALTORSs, Edina, MN 1. Date 3 I L J R 2. Page i of 114 4. 5. Buyer's earnest money in the amount of e i 6. Dollars ($ 7. shall be delivered to listing broker no later than two (2) Business Days after Final Acceptance Date of this Purchase 8. Agreement. Buyer and Seller agree that listing broker shall deposit any earnest money in the listing broker's trust 9. account within three (3) Business Days of receipt of the earnest money or Final Acceptance Date of this Purchase 10. Agreement, whichever Is later. 11. Said earnest money is part payment for the purchase of the property located at 12. Street Address: 3984 Zealand Ave 13. City of New Hope , County of Hennepin % 14 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. W 30. 31. 32. 33. 34. 35. 36. 37. State of Minnesota, legally described as Lot 10 Block 2 Hipps Hopewood Hills Revised Said purchase shall include all improvements, fixtures, and appurtenances on the property, if any, Including but not limited to, the following (collectively the "Property"): garden bulbs, plants, shrubs, trees, and lawn watering system; shed; storm sash, storm doors, screens, and awnings; window shades, blinds; traverse, curtain, and drapery rods, valances, drapes, curtains, window coverings, and treatments; towel rods; attached lighting and bulbs; fan fixtures; plumbing fixtures; garbage disposals; water softener; water treatment system; water heating systems, heating systems; air exchange system; radon mitigation system; sump pump; TV antennakable TV Jacks and wiringfTV wall mounts; wall/ceiling-mounted speakers and mounts; carpeting; mirrors; garage door openers and all controls; smoke detectors; fireplace screens, door, and heatilators, BUILT-INS: dishwashers; refrigerators; wine/beverage refrigerators; trash compactors, ovens; cook -top stoves; warming drawers; microwave ovens; hood fans; shelving; work benches; intercoms; speakers; air conditioning equipment; electronic air filter; humldifier/dehumidifier; liquid fuel tanks (and controls); pool/spa equipment, propane tank (and controls); security system equipment; TV satellite dish; AND the following personal property shall be transferred with no additional monetary value, and free and clear of all liens and encumbrances: Notwithstanding the foregoing, leased fixtures are not included. Notwithstanding the foregoing, the following item(s) are excluded from the purchase: Seller h agreed t sell the Property to Buyer for the sVm of ($ which Buyer agre s to pay in the following manner: IGS 5'f, div `L-0 Dollars, 38. 1. CASH of percent (%) of the sale price, or more in Buyer's sole discretion, which includes the earnest 39. money; PLUS 40. 2. FINANCING of 0 percent (%) of the sale price, which will be the total amount secured against this 41. Property to fund this purchase. 42. Such financing shall be: (Check one.) ❑ a first mortgage; ❑ a contract for deed; or ❑ a first mortgage with 43. subordinate financing, as described in the attached Addendum: 44. ❑ Conventional ❑ FHA ❑ DVA ❑ Assumption [J Contract for Deed - ..... ........ .................................. ----------------- fpheGcone-}-------------------- 45. The date of closing shall be_,20 /7 MN;PA-1 (8116) Inst4netfoRms- PURCHASE AGREEMENT 46. Page 2 Date I- -_3 i ` 1? 47. Property located at 3984 Zealand Ave New Hope MN 55427 48. SALE OF BUYER'S PROPERTY CONTINGENCY: (Check one.) 49. ❑ 1. This Purchase Agreement is subject to an Addendum to Purchase Agreement: Sale of Buyer's Property 50. Contingency for the sale of Buyer's property. (if checked, see attached Addendum.) 51. OR 52. ❑ 2. This Purchase Agreement is contingent upon the successful closing on the Buyer's property located at 53. , which is scheduled to close on 54. , 20 pursuant to a fully executed purchase agreement. If Buyer's 55, property does not close, this Purchase Agreement is canceled. Buyer and Seller shall immediately sign a 56. Cancellation of Purchase Agreement confirming said cancellation and directing all earnest money paid 57. here to be refunded to Buyer. The language In this paragraph supersedes any other provision to the contrary 58. in any financing addendum made a part of this Purchase Agreement, if applicable. 59. OR 60, M 3. Buyer represents that Buyer has the financial ability to perform on this Purchase Agreement without the sale 61. and closing on any other property. 62. This Purchase Agreement ❑ IS M IS NOT subject to cancellation of a previously written purchase agreement ....... (Ch-* ona) -•••_•- 63. dated , 20 . (If answer is IS, said cancellation shall be obtained no later than 64. , 2Q . If said cancellation is not obtained by said date, this Purchase Agreement 65. is canceled. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreementconfirming said cancellation 66. and directing all earnest money paid here to be refunded to Buyer.) 67. Buyer has been made aware of the availability of Property inspections. Buyer ❑ Elects Z Declines to have a 68. Property inspection performed at Buyer's expense. ------- -- ---- (Chea one.)-• _-------- 69. INSPECTION CONTINGENCY: This Purchase Agreement [:] IS EdIS NOT subject to an Addendum to Purchase •-••-_• (ChecJc 70. Agreement: Agreement: Inspection Contingency. (If answer is IS, see attached Addendum.) 71. DEED/MARKETABLE TITLE: Upon performance by Buyer, Seller shall deliver a: (Check one.) 72. ❑ Warranty Deed, ❑ Personal Representative's Deed, ❑ Contract for Deed, ❑ Trustee's Deed, or 73. ® Other: special or limited Deed joined in by spouse, if any, conveying marketable title, subject to 74. (a) building and zoning laws, ordinances, and state and federal regulations; 75. (b) restrictions relating to use or improvement of the Properly without effective forfeiture provisions; 76. (c) reservation of any mineral rights by the State of Minnesota; 77. (d) utility and drainage easements which do not interfere with existing Improvements; 78. (e) rights of tenants as follows (unless specified, not subject to tenancies): 79. ;and 80. (f) others (must be specified in writing): 81. 82. REAL ESTATE TAXES: Seller shall pay on the date of closing all real estate taxes due and payable in all prior years 83. including all penalties and interest. 84. Buyer shall pay M PRORATED FROM DAY OF CLOSING ❑ 12ths OF ❑ ALL ❑ NO real estate taxes due ..............fCheckone.------------------------------- _...................................... 85. and payable in the year 20 17 86. Seller shall pay M PRORATED TO DAY OF CLOSING ❑ 12ths OF ❑ ALL ❑ NO real estate taxes due and ................ ............................ _----- (Check one.} --------------------------------------------- ------------------ 87. payable in the year 20 17 . if the closing date is changed, the real estate taxes paid shall, If prorated, be adjusted 88. to the new closing date. If the Property tax status is a part- or non -homestead classification in the year of closing, Seller 89. n SHALL M SHALL NOT pay the difference between the homestead and non -homestead. .................(Check one.) ................ MN.PA-2 (8116) f nstanetroerAs' PURCHASE AGREEMENT 90. Page 3 Date 1-31-1-7 91. Property located at 3984 Zealand Ave Now Hope MN 85427 92. Buyer shall pay real estate taxes due and payable in the year following closing and thereafter, the payment of which 93. is not otherwise here provided. No representations are made concerning the amount of subsequent real estate taxes. 94. DEFERRED TAXES/SPECIAL ASSESSMENTS: 95. ® BUYER SHALL PAY ❑ SELLER SHALL PAY on date of closing any deferred real estate taxes (e.g., Green ------------------------------------ (Check one.} ----------- -------- ------------------- 96. Acres) or special assessments, payment of which Is required as a result of the closing of this sale. 97. ® BUYER AND SELLER SHALL PRORATE AS OF THE DATE OF CLOSING ❑ SELLER SHALL PAY ON ....... ................ .... ............................................. .......... _................ (Check ona) .............. ..------------- ----------- ----------------- ----- _------------- ---------------- 98. DATE OF CLOSING all installments of special assessments certified for payment, with the real estate taxes due and 99. payable In the year of closing. 100. ® BUYER SHALL ASSUME ❑ SELLER SHALL PAY on date of closing all other special assessments levied as - ------------------------ (Check ono.) ---•--•------------------------_---------- 101. of the date of this Purchase Agreement. 102. ® BUYER SHALL ASSUME ❑ SELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as _-_ ------------- ----............... ---------------------•-------(Check ow.} ------------------------------------ ............... 103. of the date of this Purchase Agreement for improvements that have been ordered by any assessing authorities. (Seller's 104. provision for payment shall be by payment into escrow of two (2) times the estimated amount of the assessments 105. or less, as required by Buyer's lender.) 106. Buyer shall pay any unpaid special assessments payable in the year following closing and thereafter, the payment of 107. which is not otherwise here provided. 108. As of the date of this Purchase Agreement, Seller represents that Seller ❑ HAS ® HAS NOT received a notice .--......... (Check one.) -.......... 109. regarding any now improvement project from any assessing authorities, the costs of which project may be assessed 110. against the Property. Any such notice received by Seller after the date of this Purchase Agreement and before closing 111. shall be provided to Buyer immediately. If such notice is Issued after the date of this Purchase Agreement and on 112. or before the date of closing, then the parties may agree In writing, on or before the date of closing, to pay, provide 113. for the payment of, or assume the special assessments. In the absence of such agreement, either party may declare 114. this Purchase Agreement canceled by written notice to the other party, or licensee representing or assisting the other 115. party, in which case this Purchase Agreement is canceled. If either parry declares this Purchase Agreement canceled, 116. Buyer and Seiler shall Immediately sign a Cancellation of Purchase Agreement confirming said cancellation and 117. directing all earnest money paid here to be refunded to Buyer. 118. POSSESSION: Seller shall deliver possession of the Property: {Check one.) 119. ❑ IMMEDIATELY AFTER CLOSING; or 120. ® OTHER: upon final funding 121. Seller agrees to remove ALL DEBRIS AND ALL PERSONAL PROPERTY NOT INCLUDED HERE from the Property 122. by possession date. 123. LINKED DEVICES: Sellerwarrants that Seller shall permanently disconnect or discontinue Seller's access or service 124. to any device or system on or serving the property that Is connected or controlled wirelessly, via Internet protocol ("IP") 125. to a router or gateway or directly to the cloud no later than delivery of possession as specified in this Purchase 126. Agreement. 127. PRORATIONS: All Interest; unit owners' association dues; rents; and charges for city water, city sewer, electricity, and 128. natural gas shall be prorated between the parties as of date of closing. Buyer shall pay Seller for remaining gallons of 129. fuel oil or liquid petroleum gas on the day of closing, at the rate of the last fill by Seller. 130. TITLE AND EXAMINATION: As quickly as reasonably possible after Final Acceptance Date of this Purchase Agreement: 131. (a) Seiler shall deliver any abstract of title and a copy of any owner's title insurance policy for the Property, if 132. in Seller's possession or control, to Buyer or Buyer's designated title service provider. Any abstract of title or 133. owner's title Insurance policy provided shall be immediately returned to Seller, or licensee representing or 134. assisting Seller, upon cancellation of this Purchase Agreement; and 135. (b) Buyer shall obtain the title services determined necessary or desirable by Buyer or Buyer's lender, including 136. but not limited to title searches, title examinations, abstracting, a title insurance commitment, or an attorney's 137. title opinion at Buyer's selection and cost and provide a copy to Seller. Mf LPA -3 (all r3) InstanetfowAs PURCHASEAGREEMENT 138. Page 4 Date -1 ---I ( -11 139. Property located at 3984 Zealand Ave New Hope NN 55427 140. Seller shall use Seller's best efforts to provide marketable title by the date of closing. Seller agrees to pay all costs 141, and fees necessary to convey marketable title including obtaining and recording all required documents, subject to the 142, following: 143. In the event Seller has not provided marketable title by the date of closing, Seller shall have an additional 30 days to 144. make title marketable, or in the alternative, Buyer may waive title defects by written notice to Seller. In addition to 145. the 30 -day extension, Buyer and Seller may, by mutual agreement, further extend the closing date. Lacking such 146. extension, either parry may declare this Purchase Agreement canceled by written notice to the other party, or 147. licensee representing or assisting the other party, in which case this Purchase Agreement is canceled. If either 148. parry declares this Purchase Agreement canceled, Buyer and Seller shall immediately sign a Cancellation of 149. Purchase Agreement confirming said cancellation and directing all earnest money paid here to be refunded to 150. Buyer. 151, SUBDIVISION OF LAND, BOUNDARIES, AND ACCESS: if this sale constitutes or requires a subdivision of land 152. owned by Seller, Seller shall pay all subdivision expenses and obtain all necessary governmental approvals. Seller 153. warrants that the legal description of the real property to be conveyed has been or shall be approved for recording as 154, of the date of closing. Seller warrants that the buildings are or shall be constructed entirely within the boundary lines 155. of the Property. Seller warrants that there is a right of access to the Property from a public right-of-way. 156. MECHANIC'S LIENS: Seller warrants that prior to the closing, payment in full will have been made for all labor, materials, 157. machinery, fixtures, or tools furnished within the 120 days immediately preceding the closing in connection with 158. construction, alteration, or repair of any structure on, or improvement to, the Property. 159. NOTICES: Seller warrants that Seller has not received any notice from any governmental authority as to condemnation 160. proceedings, or violation of any law, ordinance, or regulation. If the Property is subject to restrictive covenants, Seller 161. warrants that Seller has not received any notice from any person or authority as to a breach of the covenants. Any 162. such notices received by Seller shall be provided to Buyer immediately. 163. DIMENSIONS: Buyer acknowledges any dimensions, square footage, or acreage of land or improvements provided 164. by Seller, third party, or broker representing or assisting Seller are approximate. Buyer shall verify the accuracy of 165. information to Buyer's satisfaction, if material, at Buyer's sole cost and expense. 166. ACCESS AGREEMENT: Seller agrees to allow reasonable access to the Property for performance of any surveys or 167. inspections agreed to here. 168. RISK OF LOSS: If there Is any loss or damage to the Property between the Final Acceptance Date and the date of 169. closing for any reason, Including fire, vandalism, flood, earthquake, or act of God, the risk of loss shall be on Seller. If 170. the Property is destroyed or substantially damaged before the closing date, this Purchase Agreement is canceled, 171. at Buyer's option, by written notice to Seller or licensee representing or assisting Seiler. If Buyer cancels this Purchase 172, Agreement, Buyer and Sellershall immediately sign a Cancellation of Purchase Agreementconfirming said cancellation 173. and directing all earnest money paid here to be refunded to Buyer. 174, TIME OF ESSENCE: Time is of the essence in this Purchase Agreement. 175. CALCULATION OF DAYS: Any calculation of days begins on the first day (calendar or Business Days as specified) 176. following the occurrence of the event specified and Includes subsequent days (calendar or Business Days as specified) 177, ending at 11:59 P.M, on the last day. 178. BUSINESS DAYS: "Business Days" are days which are not Saturdays, Sundays, or state or federal holidays unless 179. stated elsewhere by the parties in writing. 180. RELEASE OF EARNEST MONEY: Buyer and Seller agree that the listing broker shall release earnest money from the 181. listing broker's trust account: 182. (a) at or upon the successful closing of the Property; 183. (b) pursuant to written agreement between the parties, which may be reflected in a Cancellation of Purchase 184. Agreement executed by both Buyer and Seller; 185. (c) upon receipt of an affidavit of a cancellation under MN Statute 559.217; or 186. (d) upon receipt of a court order. MN:PA-4 (8116) InstanefrowAs' PURCHASE AGREEMENT 187. Page 5 Date l - -3 i - rj 188. Property located at 3984 Zealand Ave New Hope MN 55427 189. DEFAULT: If Buyer defaults in any of the agreements here, Seller may cancel this Purchase Agreement, and any 190, payments made here, including earnest money, shall be retained by Seller as liquidated damages and Buyer and Seller 191. shall affirm the same by a written cancellation agreement. 192. If Buyer defaults In any of the agreements here, Seller may terminate this Purchase Agreement under the provisions 193. of either MN Statute 559.21 or MN Statute 559.217, whichever is applicable. If either Buyer or Seller defaults in any 194, of the agreements here or there exists an unfulfilled condition after the date specified for fulfillment, either party may 195. cancel this Purchase Agreement under MN Statute 559.217, Subd. 3. Whenever it is provided here that this Purchase 196. Agreement is canceled, said language shall be deemed a provision authorizing a Declaratory Cancellation under MN 197. Statute 559.217, Subd. 4. 198. If this Purchase Agreement is not canceled or terminated as provided here, Buyer or Seller may seek actual damages 199. for breach of this Purchase Agreement or specific performance of this Purchase Agreement; and, as to specific 200. performance, such action must be commenced within six (6) months after such right of action arises. 201. NOTICE REGARDING PREDATORY OFFENDER INFORMATION: Information regarding the predatory offender 202. registry and persons registered with the predatory offender registry under MN Statute 243.166 may be obtained 203. by contacting the local law enforcement offices In the community where the Property is located or the Minnesota 204. Department of Corrections at (651) 361-7200, or from the Department of Corrections web site at 205. www.corr.state.mn.us. 206. BUYER HAS THE RIGHT TO A WALK-THROUGH REVIEW OF THE PROPERTY PRIOR TO CLOSING TO 207. ESTABLISH THAT THE PROPERTY IS IN SUBSTANTIALLY THE SAME CONDITION AS OF THE DATE OF 208. THIS PURCHASE AGREEMENT. 209. BUYER HAS RECEIVED A: (Check any that apply.) ❑ DISCLOSURE STATEMENT., SELLER'S PROPERTY 210. DISCLOSURESTATEMENTORA®DISCLOSURESTATEMENT.•SELLER'S DISCLOSUREALTERNATIVES FORM. 211. DESCRIPTION OF PROPERTY CONDITION: See Disclosure Statement: Seller's Property Disclosure Statement or 212. Disclosure Statement: Seller's Disclosure Alternatives for description of disclosure responsibilities and limitations, if 213. any. 214. BUYER HAS RECEIVED THE INSPECTION REPORTS, IF REQUIRED BY MUNICIPALITY. 215. BUYER IS NOT RELYING ON ANY ORAL REPRESENTATIONS REGARDING THE CONDITION OF THE PROPERTY 216. AND ITS CONTENTS. 217. (Check appropriate boxes.) 218. SELLER WARRANTS THAT THE PROPERTY IS EITHER DIRECTLY OR INDIRECTLY CONNECTED TO: 219. CITY SEWER ®YES ❑ NO / CITY WATER ®YES ❑ NO 220. SUBSURFACE SEWAGE TREATMENT SYSTEM 221. SELLER ❑ DOES ® DOES NOT KNOW OF A SUBSURFACE SEWAGE TREATMENT SYSTEM ON OR ----------------(Check one.) ----------------- 222. SERVING THE PROPERTY. (If answer is DOES, and the system does not require a state permit, see Disclosure 223. Statement: Subsurface Sewage Treatment System.) 224. PRIVATE WELL 225. SELLER ❑ DOES ® DOES NOT KNOW OF A WELL ON OR SERVING THE PROPERTY. --- ------------- fCheck one.) ------........------ 226. (If answer is DOES and well is located on the Property, see Disclosure Statement: Well.) 227. THIS PURCHASE AGREEMENT ❑ IS ® IS NOT SUBJECT TO AN ADDENDUM TO PURCHASE AGREEMENT. ......... (Check ons.) ---------- 228. SUBSURFACE SEWAGE TREATMENT SYSTEM AND WELL INSPECTION CONTINGENCY. 229. (If answer is IS, see attached Addendum.) 230. 1F A WELL OR SUBSURFACE SEWAGE TREATMENT SYSTEM EXISTS ON THE PROPERTY, BUYER HAS 231. RECEIVED A DISCLOSURESTATEMENT:WELL AND/OR A DISCLOSURESTATEMENT. SUBSURFACE SEWAGE 232. TREATMENT SYSTEM. MN;PA-5 (8/16) InslanetfORMS' PURCHASE AGREEMENT 233. Page 6 Date 1-31-1-1 234. Property located at 3984 Zealand Ave New Hope NN 55427 235, HOME PROTECTION/WARRANTY PLAN: Buyer and Seller are advised to investigate the various home protection/ 236. warranty plans available for purchase. Different home protection/warranty plans have different coverage options, 237. exclusions, limitations, and service fees. Most plans exclude pre-existing conditions. (Check one.) 238. ❑ A Home Protection/Warranty Plan will be obtained by ❑ BUYER ❑ SELLER and paid for by ........... -... --(Chwkona.------- -- - 239. ❑ BUYER ❑ SELLER to be Issued by ------------- -.(Check one.} ---•--------- 240. not to exceed $ at a cost 241. ® No Home Protection/Warranty Plan is negotiated as part of this Purchase Agreement, However, Buyer may elect 242. to purchase a Home Protection/Warranty Plan. 243. 244. John N Anderson (Licensee) 245. Turin Oaks Realty, Inc ("('Real Estale Company Name) 246. 14"' k (licensee) 247.GwilC (Real Estale 6ompany Name) NOTICE is 6318e1ler's Agent ❑ Buyer's Agent ❑ Dual Agent ❑ Facilitator. .... ......... I .... _.... ------- -------------------- check one ......................................... is [] Sellers Agent [e Buyer's Agent ❑ Dual Agent ❑ Facilitator. -----•----_................ ...................(Checkone.).........................._................ ----- - 248. THIS NOTICE DOES NOT SATISFY MINNESOTA STATUTORY AGENCY DISCLOSURE REQUIREMENTS. I 249. DUAL AGENCY REPRESENTATION 250. PLEASE CHECK ONE OF THE FOLLOWING SELECTIONS: 251. 216ual Agency representation DOES NOT apply in this transaction. Do not complete lines 252-268. 252. ❑ Dual Agency representation DOES apply in this transaction. Complete the disclosure in lines 253-268. 253. Broker represents both the Seller(s) and the Buyer(s) of the Property involved in this transaction, which creates a 254. dual agency.This means that Broker and its salespersons owe fiduciary duties to both Seiler(s) and Buyer(s). Because 255. the parties may have conflicting Interests, Broker and its salespersons are prohibited from advocating exclusively for 256. either party. Broker cannot act as a dual agent in this transaction without the consent of both Seller(s) and Buyer(s). 257. Seller(s) and Buyer(s) acknowledge that 258. (1) confidential information communicated to Broker which regards price, terms, or motivation to buy or sell will 259. remain confidential unless Seller(s) or Buyer(s) instructs Broker in writing to disclose this information. Other 260. information will be shared; 261. (2) Broker and its salespersons will not represent the interest of either party to the detriment of the other; and 262. (3) within the limits of dual agency, Broker and Its salespersons will work diligently to facilitate the mechanics of 263. the sale. 264. With the knowledge and understanding of the explanation above, Sellers) and Buyer(s) authorize and instruct Broker 265. and its salesperson to act as dual agents in this transaction. 266. Seller Buyer 267. Seller Buyer 268. Date Date 269. CLOSING COSTS: Buyer or Seller may be required to pay certain closing costs, which may effectively increase the 270. cash outlay at closing or reduce the proceeds from the sate. MN:PA•6 (8/16) InstanetfoRt,15 PURCHASE AGREEMENT 271. Page 7 Date i - 3 1 11 272. Property located at 3984 Zealand Ave New Hope NN 55427 273, SETTLEMENT STATEMENT: Buyer and Seller authorize the title company, escrow agent, and/or their representatives 274, to disclose and provide copies of the disbursing agent's settlement statement to the real estate licensees involved in 275. the transaction at the time these documents are provided to Buyer and Seller. 276. FOREIGN INVESTMENT iN REAL PROPERTY TAX ACT ("FIRPTA"): Section 1445 of the Internal Revenue Code 277. provides that a transferee ("Buyer) of a United States real property interest must be notified in writing and must withhold 278, tax if the transferor ("Seller") is a foreign person and no exceptions from FIRPTA withholding apply. Buyer and Seller 279. agree to comply with FIRPTA requirements under Section 1445 of the Internal Revenue Code. 280. Seller shall represent and warrant, under the penalties of perjury, whether Seller is a "foreign person" (as the same 281. is defined within FIRPTA), prior to closing, Any representations made by Seller with respect to this issue shall survive 282. the closing and delivery of the deed. 283. Buyer and Seller shall complete, execute, and deliver, on or before closing, any instrument, affidavit, or statement 284. reasonably necessary to comply with the FIRPTA requirements, including delivery of their respective federal taxpayer 285. identification numbers or Social Security numbers. 286. Due to the complexity and potential risks of failing to comply with FIRPTA, including the Buyer's responsibility for 287, withholding the applicable tax, Buyer and Seller should seek appropriate legal and tax advice regarding FIRPTA 288. compliance, as the respective licensee's representing or assisting either party will be unable to assure either 289. party whether the transaction Is exempt from FIRPTA withholding requirements. 290. ENTIRE AGREEMENT: This Purchase Agreement and any addenda or amendments signed by the parties shall 2911. constitute the entire agreement between Buyer and Seller. Any other written or oral communication between Buyer and 292. Seller, Including, but not limited to, e-mails, text messages, or other electronic communications are not part of this 293. Purchase Agreement. This Purchase Agreement can be modified or canceled only in writing signed by Seller and 294. Buyer or by operation of law. All monetary sums are deemed to be United States currency for purposes of this Purchase 295. Agreement. 296. ELECTRONIC SIGNATURES: The parties agree the electronic signature of any parry on any document related to this 297, transaction constitute valid, binding signatures. 298. FINAL ACCEPTANCE: To be binding, this Purchase Agreement must be fully executed by both parties and a copy 299, must be delivered, 300. SURVIVAL.: All warranties specified In this Purchase Agreement shall survive the delivery of the deed or contract 301. for deed. 302. OTHER: This agreement is subject to the Real Estate Purchase Addendums and 303. Offer Acceptance and Acknowledgment Addendums as prepared by the 304. seller. 305. property is being sold subject to 24 CFR 206.125. 306. 307. 308. 309. 310. ADDENDA AND PAGE NUMBERING: Attached addenda area part of this Purchase Agreement. 311. Enter total number of pages of this Purchase Agreement, Including addenda, online two (2) of page one (1). 312. NOTE: Disclosures and optional Arbitration Agreement are not part of this Purchase Agreement and should 313. not be part of the page numbering. MN.PA 7 (8/16) InstanetroRms PURCHASE AGREEMENT 314. Page 8 Date 1— -31-1-7 315. Property located at 3984 Zealand Ave New Nope tort 55427 316. I, the owner of the Property, accept this Purchase 317. Agreement and authorize the listing broker to withdraw 318. said Property from the market, unless instructed 319. otherwise In writing. 320. 1 have reviewed all pages of this Purchase Agreement. 321. Q If checked, this Agreement is subject to attached 322. Addendum to Purchase Agreement; Counteroffer. 323. FIRPTA: Seller represents and warrants, under penalty 324, of perjury, that Seller IS® IS NOT a foreign person (i.e., a ..... (Check one.) ...... 325. non-resident alien individual, foreign corporation, foreign 326. partnership, foreign trust, or foreign estate for purposes of 327, income taxation. (See lines 276-289.)) This representation 328, and warranty shall survive the closing of the transaction 329. and the delivery of the deed. 330. X (Seller's Signature) 331. X (Seller's Printed Name) 332. X (Marital Status) 333. X (Sellers Signature) 334. X (Sellars Printed Name) 335. X (Marital Status) (Date) I agree to purchase the Property for the price and on the terms and conditions set forth above I have reviewed all pages of this Purchase Agreement. Nv i X 1`s� (8hVVfs Signature) (Date) XA 4� (Buyer's Printed Name) X (Marital Status) X (Date) (Buyers Signature) X (Buyer's Printed Name) X (Marital Status) 336, FINAL ACCEPTANCE DATE: 337. is the date on which the fully executed Purchase Agreement Is delivered. (Date) The Final Acceptance Date 338. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S). 339. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. 340. 1 ACKNOWLEDGE THAT I HAVE RECEIVED AND HAVE HAD THE OPPO RTU NITY TO REVIEW THE DISCLOSURE 341. STATEMENT., ARBITRATION DISCLOSURE AND RESIDENTIAL REAL_ ROPERTVARBITRATIONAGREEMENT, 342. WHICH IS AN OPTIONAL, VOLUNTARY AGREEMENT AND IS NOT PA HIS PURC14ASE AG MENT. ` 343. SELLERBUYER S) (S ) � 344. SELLER(S) BUYER(S) MN:PA•8 (8116) InstanetFORMS' ADDENDUM TO PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORS°, which disclaims any liability arising out of use or misuse of this form. 0 2011 Minnesota Association of REALTORSa, Edina, MN 1. Date 1-31-10) 2. Page I 4 I q 3. Addendum to Purchase Agreement between parties, dated 1 — --� 1 —'20 , , pertaining to the 4. purchase and sale of the property at 3984 Zealand Ave 5. New Hope NN 55427 6. In the event of a conflict between this Addendum and any other provision of the Purchase Agreement, the language 7, in this'Addendum shall govern. If HUD requires the Seller to complete an updated appraisal and that 8. appraisal values the property a higher amount than the fully executed 9 contract price, the Buyer and/or Seller reserve the right to terminate the contract and return the full escrow deposit to the Buyer. 10. 11 Seller will not accept contingency offer(s). Purchase of HECM property cannot be contingent upon the sale of any other property. 12. 13 Seller will not pay for inspections, surveys, or certifications, unless it is required by law. 14. 15. Seller will not provide credit or reimbursement for any typed of survey. 16. Seller will not pay for home warranty. 17. Seller will not allow any additional Broker fees and/or miscellaneous fees. 18. 19 Seller will not make any repairs. Seller will not maintain property, systems, or appliances. 20. 21. Seller will not keep any system operational until the date of close such as: septic systems, security or alarm systems, garage door openers, pools, spas. 22. 23. Seller will not pay County transfer taxes or fees unless required by law. 24. Property may not be in broom swept condition. Debris may or may not be 25. removed prior to closing. 26. Seller will not pay for a wood infestation report for inspection. If termites exist, treatment is contingent on a case by case basis upon seller 27. approval. Seller will not pay for repairs due to wood infestation. 28. 29. 30. 31. (Seller) 32. (bale) 1 (Buyer) (Date) (Seiler) (Date) (Buyer) 33. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYERS AND SELLERS. 34. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MN -APA (8/11) (Date) InstanetFORMS' ADDENDUM TO PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORS", which disclaims any liability arising out of use or misuse of this form. ® 2011 Minnesota Association of REALTORS, Edina, MN 1. Date , ` -3-1 ._ 1-7 2. Page 0' C 3. Addendum to Purchase Agreement between parties, dated L- r , 20 �pertaining to the 4. purchase and sate of the property at 3984 Zealand Ave b. New Hope MN 55427 6. In the event of a conflict between this Addendum and any other provision of the Purchase Agreement, the language 7. in this Addendum shall govern. Seller may not pay for utilities to be turned on for inspections. 8. Seller may not have water, gas, or electricity operational. If any 9, existing utilities are to be turned on for inspection, the Listing or 10 Selling agent may turn them on at the Buyer's expense. If any existing utilities are to be turned on for inspections, it will be at BUYER'S 11. expense and MUST be turned off when inspection(s) are completed.Buyer 12 to deposit with Twin Oaks Realty $250.00 as deposit for payment. 13. Seller does not agree to interpleader action, mediation or arbitration. 14. It is understood between Buyer(s) and Seller that this is a lender 15.owned property and it is being sold in "as is" condition at the time of 16. close with no Seller representations or warranties, expressed or 17 implied by the Seller or the local listing agent. 18. 19 The Seller will not contribute closing cost and/or credits. The Seller may contribute closing costs and/or credits once property is past 180 20. days. 21. 22. The Seller will not transfer the property to an investor without a deed 23. restriction. 24. 25. 26. 27. 28. 29. 30. 31.i (Seller) (Date) (Buyer) (Date) 32. (Seller) (Date) (Buyer) (Dale) 33. THIS IS A LEGALLY BINDING CONTRACT" BETWEEN BUYERS AND SELLERS. 34. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MN -APA (8/11) inslaneftasi& ADDENDUM TO PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORS', which disclaims any liability arising out of use or misuse of this form. ® 2011 Minnesota Association of REALTORSe, Edina, MN 1. Date -31-1-7 2. Page — : 14 3. Addendum to Purchase Agreement between parties, dated _ 3 I , 20 1-7 , pertaining to the 4. purchase and sale of the property at 3984 Zealand Ave 5. New Hope MN 55427 6. In the event of a conflict between this Addendum and any other provision of the Purchase Agreement, the language 7. in this Addendum shall govern. Buyer (s) will assume all R & R's on city truth in housing/code 8' compliance/point of sale report. Buyer(s) will assume all inspection, 9, registration, permit, vacant building registration fees and/or bond 10 fees required by city. 11. Buyer(s) hereby acknowledge they should use their inspection period to 12,examine the property both physically and politically, ie check assessments, truth in housing and/or code compliance requirements, etc. 13. 14. If applicable buyer(s) to sign city escrow agreement and escrow funds with the city, county and/or buyer(s) lender for any and all required R 15. & R's, work orders, code compliance, septic system, wells including 16, sealing, city sewer upgrades or repairs, stop box repairs or 17. replacement, etc. 18. Buyer(s) will assume any city assessments or charges for connecting or 19 disconnecting the water meter on the subject property, dropbox fees, new meters. Some cities can assess a water meter tampering or 20• replacement charge for hookup and all fees to be paid for by buyer(s). 21. Buyer understands that these properties occasionally have title issues 22' which may need to be cleared and that the closing could be delayed to 23. correct any title issues. 24' Buyer to pay for any new security, mailbox or unit keys if necessary. 25. 26 NOTE Earnest money upon final acceptance shall be in the form of cashiers check and shall be deposited at title company as designated by 27. seller. 28. 29. 30. /fit Ir] 31. Q—�� (Seller) (Date) (Buyer) (Date) 32. (seller) (Date) (Buyer) (Date) 33. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYERS AND SELLERS. 34. IFYOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MN -APA (8/11) lnstanetfoetm 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. ADDENDUM TO PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORS®, which disclaims any liability arising out of use or misuse of this form. 0 2011 Minnesota Association of REALTORS®, Edina, MN 1. Date 01/31/17 2. Page 12 of 14 Addendum to Purchase Agreement between parties, dated January 31st 20 17 pertaining to the purchase and sale of the property at 3984 Zealand Avenue N New Hope, MN 55427 In the event of a conflict between this Addendum and any other provision of the Purchase Agreement, the language in this Addendum shall govern. The Purchase Agreement is contingent on the following: Review and approval of the terms of the Purchase Agreement by the New Hope City Council. , If the above contingency is not met, Buyer may declare this Purchase Agreement canceled by written notice to Seller, or licensee representing or assisting Seller, in which case this purchase agreement is canceled. If buyer declares this Purchase Agreement canceled due to failure of the contingency to be met, Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and directing all earnest money paid hereunder to be refunded to Buyer. (Seller) 32. (Seller) 33. 34. MN -APA (8/11) (Date) (Buyer) (Date) (Date) (Buyer) THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYERS AND SELLERS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. (Date) lnstanet�ou,As ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS This form approved by the Minnesota Assodallon of REALTORS' vrhtoh d3c Wms any ltablilly arising out of use or rNsuse at this form. 02009 WrrewtaAssoctaft of REALTORS, >_c na, MN 1. Date Oit271�7 2. Page I 3. Addendum to Purchase Agreement between parties, dated -3 1- 1-1 - - 4. pertaining to the purchase and sale of the property at 3984 2eaiand Ave Now Hope, MN 55427 6. Section L Lead Warning Statement 7, Evart' buyer of any Interest /a residential real properly on which a residential dwelling was bulll prior to 1878 Is notified 8. ti that such property may present exposure to lead from lead-based paint that -may place young ch#dmn at risk of 9. developing lead polsoning. Lead polsonntg In young children may produce permanent neurologloal damage, Including 10. . learning disablUlles, reduced Intelligence quotient, behavioral problems and Impaired memory lead poisoning also 11. poses a particular risk to pregnant women. The seller of any Interest In residential real properly Is required to provids 12. the buyer with any information on lead-based paint hazards from risk assessments or Inspections In the seller's 13, possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspeoflon for possible 14. lead based paint hazards Is recommended prior to purchase. (initial) 16 (a) (a) Presence of lead-based paint andlorlead-based paint hazards. 17. (Check one below.) 18. ❑ Known lead-based paint and/or lead-based paint hazards are present in the housing 19. (explain): 20. 21.}d Seller has no knowledge of lead-based paint and/or lead-based paint hazards In the housing. 22. (b) P000rds and reports available to the seller. 23. (Check one below.) 24. ❑ Seller has provided Buyer with all available records and reports pertaining to lead-based paint 28. and/or lead-based paint hazards In the mousing (list documents below! 26. 27. [ Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards 28. In the housing. 29. Buyer's Acknowledgment (initial) 30, (c) Buyer has received copies of all information listed under (b) above. 31. (d) Buyer has received the pamphlet, protect Your Family from Lead In Your Home. 32. (e) Buyer has (check one below): 33. ❑ Received a 10 -day opportunity (or mutually agreed-upon period) to conduct a risk assessment 34, or Inspection for the presence of lead-based paint and/or lead-based paint hazards(// checked, 35. see Section 11 on page 2), or 36. Waived the opportunity to conduct a risk assessment or Inspection for the presence of lead - 37. based paint and/or lead-based paint hazards. TI.X:4ME-1 (8149) InstanetraetSs- ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON LEAD-BASED PAiNT AND LEAD-BASED PAINT HAZARDS 38. Page 39, Property located at 3984 Zealand Ave New Hope, IM 58427 40. eai state Licensee's Acknowledgement (Irtitlal) 41, (t) Real estate licensee has informed Seller of Seller's obligations under 42 U,S.C.4852(d) and Is aware 42. of iicensee's responsibility to ensure compliance. 43, Certifia 44, TheU wt nd npo c;cuhaveayre viewed the information above and certify, to the best of their knovrledge, that the Information 45. pr c)ed by the sl natory Is true and accurate. V-3 I --� - -) M �� k� f7 46. pante, Weaver, Pu (Dale) (Buyer) (oats) ement Solu on Rf0 tv,anags, C 47. (g (pato) (Boyar) �p (Date) 4 . 8. T'k_'k_� �? � R& toensea) Zolhm Vr Andexeott (Dalo) (Real Esiat sea) (Date) 49. Seo Ion Ii: Contingency Vnitlal only If first box under (o) Is checked In Buyer's Aoknowledgment above.) 50. 'chis contract is contingent upon a risk assessment or an Inspection of the property for the presence of lead - 61, rased saint andfor lead-based paint hazards to be conducted at Buyers expense. The assessment or Inspection 62, shall be completed within Qten (f0 calendar days after Final Acceptance of the Purchase Agreement. .....-....... acts ansa .... ........ 53. This contingency shall be deemed removed, and the Purchase Agreement shall be In full farce and Mot, unless Buyer or 54. real estate licensee representing or assisting Buyer delivers to Seller or real estate licensee representing or assisting 55. Seiler, within three (S) calendardays after the assessment or inspection is timely completed, a written list of the speolfio 56. deficiencies and the corrections required, together with a copy of any risk assessment or inspection report. If Seller 57. and Buyer have not agreed in writing within three (3) calendardays after delivery of the written list of required corrections 58. that: (A) some or all of the required corrections will be made; or (B) Buyerwalves the deflotenoles; or (C) an adjustment to 69, the purchase price writ be made; this Purchase Agreement Is canceled. Buyer and Seller shall Immediately sign a 60. Cancellation of Purchase Agreement confirming said cancellation and direothig all earnest money paid hereunder to 61, be refunded to Buyer. It Is understood that Buyer may unilaterally watve deficiencies ordefecis, or remove this contingency, 62, providing that Buyer or real estate licensee representing or assisting Buyer notifies Seller or real estate licensee 63, representing or assisting Seiler of the waiver or removal, in writing, within the time specified. TLX:SALE-2 (00) lnslanetmnis; DISCLOSURE STATEMENT: SELLER'S DISCLOSURE ALTERNATIVES Thle form approved by the Mfnnosola Assodalion of REALTORS" % tah dtsdalme any ilabttity arising out of use or nftso of ihls form. Q 2416 Mtnnesola Association of REALTORS', Edina, MN 1. Date 01/27/2017 2. Page 1 of pages: RECORDS AND 3. REPORTS, IF ANY, ARE ATTACHED AND MADE A 4, PART OP THIS DISCLOSURE 5. Property located at 3986 Zealand Ave I 6. City of New Hope , County of - Hennepin , State of Minnesota. 7. NOTICE: Sellers of residential property, with limited exceptions, are obligated to satisfy the requirements of MN Statutes 8. 613.62 through 613.64. To comply with the statute, Seller must provide either a written disclosure to the 9, prospective Buyer (see Disclosure Statement: Sellers Property Disclosure Statement] or satisfy one of the 10, following two options. Disclosures made here, if any, are not a warranty or guarantee of any kind by Seller or 11, licensee(s) representing. or assisting any party In this transaction and are not a s_ubstltule for any, Inspections or 12, warranties the parly(les) may wlsh to obtain. 13. (SeleotzAl option only,) 14. 1) ❑ QUALIFIED THIRD -PARTY INSPECTION: Seller shall provide to prospecilve Buyer a written report that 16. discloses material Information relating to the real property that has been prepared by a qualified third party. 16. Qualified third party" means a federal, state, or local governmental agency, or any person whom Seller or 17. prospective Buyer reasonably believes has the expertise necessary to meet the Industry standards of practice 18, for the type of Inspection or Investigation that has been conducted by the third party in order to prepare the 1s, written report. 20. Seiler shall disclose to prospeotive Buyer material feets_known by Selterthat contradict any Information 21. that is Included In a written report, or material faots known by Seller that are not Included In the 22, report. 23. The Inspection report was prepared by 24, 25. 26. 27, 28, 29. 30. $1. 32. 33. 34. 36. and dated ,20 Seller discloses to Buyer the following material facts known by Seiler that contradict any Information included In the above referenced inspection report. Seller discloses to Buyer the following material facts known by Seller that are not Included In the above referenced inspection report. 36. 2) R) WAIVER: The written disclosure required maybe waived if Seller and prospective Buyer agree in writing. Seller 57. and 13uyer hereby waive the wrliten disclosure required under Mfg Statutes 613.52 through 613.60, 38. NOV: If both Seller and prospective Buyer agree, In writing, to waive the written disclosure required under 39. MN Statutes 613.b2 through 613.60, Seller Is not obligated to disclose ANY material facts of which Seller 40. Is aware that oould adversely and significantly affect the buyer's use or enjoyment of the property or any 41, intended use of the property, other than those disclosure requirements created by any other law. Beller Is 42. not obligated to update Buyer on any changes made to material facts of which Seller is aware That could 43, adversely and significantly affect the Buyer's use or enjoyment of the property or any Intended use of the 44, property that occur, other than those disclosure requirements created by any other law. 46. Waiver of the disclosure required under MN Statutes 613.52 through 513.60 does not waive, limit, or 46, abridge any obligation for Seller disclosure created by any other law. fv N. SDA -1 (elts) lnstanelraxr�S DISCLOSURE STATEMENT, SELLER'S DISCLOSURE ALTERNATIVES 47. Page 2 48. Property located at - 3984 Sealand Ave New Hope MN 65427 49, OTHER REQUIRED DISCLOSURES: 50. NOTE: In addition to electing one of the above alternatives to the material fact disclosure, Minnesota law also 51. requires sellers to provide other disclosures to prospeotivs buyers, such as those disclosures listed below. 62. Additionally, there may be other required disclosures by federal, state, local, or other governmental entitles 53. that are not listed below. 54. A. SUBSURFACE SEWAGE TAEATMENT SYSTEM DISCLOSURE: (A subsurface sewage treatment system 66. disclosure Is required by MN Statute 175.55.) (Check appropriate box.) 56. Seller certifies that Selisr❑ DOES DOES NOT know of a subsurface sewage treatment system on or serving 57. ilia above-described real property, (If answer Is DOES, and the system does not require a state permit, see 58. DIsclosurs Statement: Subsurface Sewage Reatment System.) 59, {] There is a subsurfgoe sewage treatment system on or serving the above-described rgal property. 60. (See Disclosure Statement: Subsurface Sewage 7Peatment System.) 61. There Is an abandoned subsurface sewage treatment system on the above-described real property. 62. (See Disclosure Statement., Subsurface Sewage 7koatmont System.) 63. D, PRIVATE WELL DISCLOSURE: (A well disclosure and Certificate are required by MN Statute 1031.235.) 64. (Check appropriate box.) 65. ] Seller certifies that Seller does not know of any wells on the above-described real property. 66. E) Seller certifies there are one or more wells located on the above-desorlbed real property. 67. (See Disclosure Statement, • We1L) 68, Are there any wells serving the above-described property that are not located on the property? []Yes ❑ No 69. To your knowledge, Is the property In a Special Well Construction Area? ❑Yes ❑ No 70. Comments: 71. 72, C. VALUATION EXCLUSION DISCLOSURE., (Required by MN Statute 273.51, Subd.18) 73. There Q IS 9 I NOT an exclusion from market value for home improvements on this property. Any valuation -..�.. (Cha one.)....... 74. exoluslonsball terminate uponsale of theproperty, and thaproperVe e0mated market value for property tax purpo3es 75. shall Increase. It a valuation exclusion exists, Buyers are encouraged to look Into the resulting lax 76. consequences. 77. Additional comments: 78. 79, D. FOREIGN INVESTMENT IN REAL PROPERTYTAX ACT (" 1 iRPTA"): Section 1445 of the Internal Revenue Code 80. provides that a transferee ("Buyer") of a United States real property interest must be notified In writing and must 81. withhold tax If the transferor ("Seller") Is a foreign person and no exceptions from FIRPTA withholding apply, 82. Seller represents that SellerE]ISM19NOTaforeign person (i.e.,anon-resident alien Individual, foreign corporation, 83. foreign partnership, foreign trust, or foreign estate) for purposes of income taxation. This representation shall 84, survive the closing of any transaction involving the property described here. 85. NOTE: if the above answer to "IS. Buyer may be subject to Income tax withholding In connection with the 88, transaction (unless the transaction Is covered by an applicable exception to FIRPTA withholding). In 87. non-exempt transactions, Buyer may be liable for the tax It Buyer falls to withhold. 88. 1t the above answer Is "IS NOT," Buyer may wish to obtain specific documentation from Seller ensuring 89, Buyer Is exempt from the wilhholding requirements as presorlbed under Section 1445 of the Internal 9o, Revenue Code. oi. Due to the complexity and potential risks of failing to comply with FIRPTA, including Buyer's responsibiilly 02. for withholding the appllgable tax, Buyer and Seller should seek appropriate legal and tax advice regarding 03. FIRPTA compliance, as the respective licensees representing or assisting either party will be unable to 94. assure either party whether the transaction Is exempt from the FIRPTA withholding requirements, WD&SDA-2 (81M) f nstanetFoxnts° DISCLOSURE STATEMENT: SELLER'S DISCLOSURE ALTERNATIVES 95. Page 3 96. Property located at 3984 Zealand Ave New Hap® MN 55427 97. E. METHAMPHETAMINE PRODUCTION DISCLOSURE: 98. (A methamphetamine production disclosure Is required by MN Statute 162.0275, Subd. 2 (m).) 99. (0 Seller is not aware of any methamphetamine production that has occurred on the property. 100. [] Seiler Is aware that methamphetamine production has occurred on the property. 101. (Se® 01sclosure Statement: MerhamphetamIne Produollon ) 102. R RADON DISCLOSURE: 103. (The following Seiler disclosure sailsfies MN Statute 144.496.) 104. RADON WARNING STATEMENT: The Minnesota Department of Health strongly recommends that ALL 105. homebuyers have an indoor radon test performed priorto purchase or taking occupancy, and recommends having 106, the radon levels mitigated It elevated radon concentrations are found. Elevated radon concentrations can easily 107. be reduced by. a qualified, carllfled,.or licensed, If applicable, radon mitigator, 108, i~very buyer of any Interest In residential real property is notified that the property may present exposure to 146. dangerous levels of indoor radon gas that may place occupants at risk of developing radon -Induced- lung cancer. 110. Radon, a Class A human carcinogen, Is the leading cause of lung cancer In nonsmokers and the second leading 111. cause overall. The seller of any interest In residential real property is required to provide the buyer with any 112. Information on radon test results of the dwelling, 113. RADON IN REAL ESTATE: By signing this Statement, Buyer hereby acknowledges receipt of the Minnesota 114. Department of Health's publication entitled Radon In Real Estate Transactions, which is attached hereto and 1781 can be found at www.health.state.mn.us/divelehAndooralrlradonlrnrealestateweb,pdf. 116. A seller who faits to disclose the Information required under MN Statute 144.496, and is aware of material facts 117, pertaining to radon concentrations in the property, Is liable to the Buyer. A buyer who is injured by a violation of MN 118. Statute 144.496 may bring a civil action and recover damages and receive other equitable relief as determined by 119. the court. Any such action must be commenced within two years after the dale on which the buyer closed the 120. purchase or transfer of the real property. 121. SELLER'S REPRESENTATIONS: The following are representations made by Seller to the extent of Seller's actual 122. knowledge. 123. (a) Radon test(s)E] HAVE [@ HAVE NOT occurred on the property. ............� oma}-......._..... 124. (b) Describe any known radon concentrations, mitigation, or remediatlon. NOTE; sailor shall attach the most 125, current records and reports pertaining to radon concentration within The dwelling: 126, 127. 128. 129. (c) There [l IS [R] IS NOT a radon mitigation system currently Installed on the properly. ....... {Check ane.}-.•-- 130. If 18 Seiler shelf disclose, if known, Information regarding the radon mitigation system, Including system 131. desoriptton and documentation, 132. 133, 134. 135. 0. NOTICE REGARDING AIRPORT ZONING REGULATIONS: The property maybe in or near an airport safety zone 136, with zoning regulations adopted by the governing body that may affect the property. Such zoning regulations are 137. filed with the county recorder In each county where the zoned area Is located. If you would like to determine if such 138. zoning regulations affect the property, you should contact the county recorder where the zoned area is located. MN:D8.8DA•3 (8118) InslonefrORblS' DISCLOSURE STATEMENT; SELLER'S DISCLOSURE ALTERNATIVES 139. Page 4 140. Property located at 3904 Zealand Ave Naw Rua NN 55427 141, H. NOTICir REGARDING CARBON MONOXIDE DETECTORS: 142, MN Statute 299F61 requires Carbon Monoxide Detectors to be located within ten (10) feet from all sleeping 143, rooms. Carbon Monoxide Detectors may or may not be personal property and may or may not be Included in the 244, sale of the home. 145, 1, WATER INTRUSION AND MOLD GROWTH: Studies have shown thatvarious formsof waterintrusfon affect many 146. homes. Water Intrusion may occur from exterior moisture entering the home and/or Interior moisture leaving the 147. home. 148. Examples of exterior moisture sources may be 149. • Improper flashing around windows and doors, 150. • Improper grading, 151. • flooding, 152. • roof leaks. 153. Examples of Interior moisture sourdes may be 154. • plumbing leaks, 155. • condensation (caused by Indoor humidity that Is too high or surfaces that are too cold), 166. • overflow from tubs, sinks, or toilets, 157, firewood stored Indoors, 158. humidifier use, 169. inadequate vonting of kitchen and bath humidity, 160. • Improper venting of clothes dryer exhaust outdoors (Including electrical dryers), 161. ® line -drying laundry indoors, 162, houseplants—watering them can generate large amounts of moisture. 163. In addition to the possible structural damage water Intrusion may do to the property, water Intrusion may also result 164. 1n the growth of mold, mildew, and other fungi. Mold growth may also cause structural damage to the pyoporty. 165, Therefore, it Is very Important to detect and remedlate water intrusion problems. 166. Fungi are present everywhere In our environment, both Indoors and outdoors. Many molds are beneficial to humans. 167, However, molds have the ability to produce mycotoxins that may have a potential to cause serious health problems, 1613, particularly in some Immunocompromised Individuals and people who have asthma or allergies to mold. 169, To complicate matters, mold growth Is often difficult to detect, as it frequently grows within the wall structure, if you 170, have a concern about water Intruslon or the reaulltng mold/mlfdativAungi growth, you may want to consider having 171. the property Inspected for moisture problems before entering Into a purchase agreement or as a condition of your 172. purchase agreement, Such an analysis Is particularly advisable If you observe staining or any musty odors on the 173, property, 174. J. NOTICE REGARDING PREDATORY OFFENDER INFORMATION: Information regarding the predatory 176. offender registry and persons registered vrith the predatory offender registry ander MN Statute 243,166 176. may be obtained by oontacting the local law enforcement offices In the community where the property is 177, located or the Minnesota Department of Corrections at (651) 361-7200, or from the Department of Corrections 178. web site at www.corr.state.mn.us. rJ, DS:8DA-4 (0116) Insfonetro.R15 DISCLOSURE STATEMENT: SELLER'S DISCLOSURE ALTERNATIVES 179. Page 5 180. Property located at 3984 Zealand Ave New Hop® rQt 55427 181. K. SELLER'S STATEMENT: 182, (To be signed at time of listing.) 183. Seller(s) hereby authorizes any licensee(s) representing or assisting any parly(fes) in this transaction to provide 184. a copy of this Disclosure Statement to any person or entity In connecilon with any actual or anticipated sale of the 185. property. A seller may provide this Disclosure Statement to a real estate licensee representing or assisting a 1861 prospective buyer. The Disclosure Statement provided to the real estate licensee representing or assisting a 187. prospective buyer Is considered to have been provided to the prospective buyer. If this Disclosure Statement Is 186. provided to the real estate licensee representing or assisting the prospective buyer, the real estate licensee must 189. provide a copy to tiro prospective buyer. 190, QUALIFIED THIRD -PARTY INSPECTION.* If Seiler has made a disclosure under the Qualified Third -Party 191, inspection, Seller is obligated to disclose to Buyer in writing of any new or changed facts of which Seller is awara i92. that could adversely and significantly affect the Buyerle use or enjoyment of the property or any Intended use of 193. the property that occur up to the time of closing. To disclose new or changed facts, please use the Amendment to 194. Dlsolosure Statement form. 195. WAIVER: If Seller and Buyer agree to walve the seller disclosure requirement, Seller Is NOT obligated to disclose 196, and wilt NOT disclose any new or changed tnformatlon regarding facts, 187. OTHER REQUIRED DISCLOSURES (Seotions A-): Whether Sellar has elected a Quallfied-Third Party Inspection lea. or Waiver, Seller Is obligated to notify Buyer, In writing, of any new or changed facts regarding Other Required 199. Disclosure p the time of closing. To disclose new or changed facts, please use the Amendment to Seller's 200. Disolosurt form. Asslstznt vice Pres+uvilt. ant So{udonS, LLC 201, (seltet) 202. L. BUYER'$ ACKNOWLEDGEMENT: 203, (To be signed at 11me of purchaso agreement.) (Date) 204. ilWe, the Buyers) of the properly, acknowledge receipt of this Seller`s Disclosure Alternallvesform and agree to 206. the seller's disclosure optlonselected in this form. IfWe further agree that no representations regarding facts have 206. been made, other than those made In this form. This Disclosure Statement to not a warranty or a guarantee of 207. any kind by Seiler or licensee representing or assisting any party In the transaction and Is not a suitable substitute 208. for any Inspections or warranties the party{fes) may wish to obtain. 209. --T4ea ( matlon disclosed is given to the best of the Setter's knowledge. 210. (euyor) (Date) (avyer) (Date) 211. LISTING BROKER AND LICENSEES MAKE NO REPRE$ENT/ATfONS HERE AND ARE 212. NOT RESPONSIBLE FOR ANY CONDITIONS EXISTING ON THE PROPERTY. WIN:13S:81A 6 (8/16) Instonetromis- Radon in Real Estate Transactions All Minnesota homes can have dangerous levels of radon gas. Radon is a colorless, odorless and tasteless radioactive gas that can seep into homes from the soil. When inhaled, it can damage the lungs. Long-term exposure to radon can lead to lung cancer. About 21,000 lung cancer deaths each year in the United States are caused by radon. The only way to know how much radon gas has entered the home is to conduct a radon test. MDH estimates 2 in 5 homes exceed the 4.0 pCi/L action level. Whether a home Is old or new, any home can have high levels of radon. The purpose of this publication is to educate and inform potential home buyers of the risks of radon exposure, and how to test for and reduce radon as part of real estate transactions. Disclosure Requirements Effective January 1, 2014, the Minnesota Radon Awareness Act requires specific disclosure and education be provided to potential home buyers during residential real estate transactions in Minnesota. Before signing a purchase agreement to sell or transfer residential real property, the seller shall provide this publication and shall disclose in writing to the buyer: 1. whether a radon test or tests have occurred on the property; 2. the most current records and reports pertaining to radon concentrations within the dwelling; 3. a description of any radon levels, mitigation, or remediation; 4. information on the radon mitigation system, if a system was installed; and a radon warning statement. Minnesota Department INDOOR AIR UNIT Radon Facts How dangerous is radon? Radon Is the number one cause of lung cancer in non-smokers, and the second leading cause overall. Your risk for lung cancer increases with higher levels of radon, prolonged exposure, and whether or not you are a current smoker or former smoker. Where is your greatest exposure to radon? For most Minnesotans, your greatest exposure is at home where radon can concentrate indoors. What is the recommended action based on my results? If the average radon in the home is at or above 4.0 pCi/L, the home's radon level should be reduced. Also, consider mitigating if radon levels are between 2.0 pCi/L and 3.9 pCi/L. Any amount of radon, even below the recommended action level, carries some risk. of Health MDH Radon Program PO Box 64975 St Paul, MN 55164-0975 health.indoor@state.mn.us www. health. state.mn.us/radon 651-201-4601 800-798-9050 InstonetroRrns Radon Testing Any test lasting less than three months requires closed -house conditions. Keep all windows and doors closed, except for normal entry and exit. Before testing: Begin closed -house conditions at least 12 hours before the start of the radon test. During testing: Maintain closed -house conditions during the entire duration of the short-term test. Operate home heating or cooling systems normally during the test. Test for at least 48 hours. Where should the test be conducted? Any radon test conducted for a real estate transaction needs to be placed in the lowest livable area of the home suitable for occupancy. This is typically in the basement, whether finished or unfinished. Place the test kit: • twenty inches to six feet above the floor • at least three feet from exterior walls • four inches away from other objects • in a location where it won't be disturbed • not in enclosed areas or areas of high heat or humidity Radon Mitigation How are radon tests conducted in real estate transactions? There are special protocols for radon testing. The two most common ways to test are either using a calibrated continuous radon monitor (CRM) or two -short term test kits used at the same time. The short-term test kits are placed 4 inches apart and the results are averaged. Fastest Second Fastest rwn All radon tests should be conducted by a certified professional. This ensures the test was conducted properly, In the correct location, and under appropriate building conditions. A list of these radon measurement professionals can be found at MDH's Radon website. If the seller previously conducted testing in a property at or above 4 pCl/L, the home should be mitigated. When elevated levels of radon are found, they can be easily reduced by a certified radon mitigation professional. Radon mitigation is the process used to reduce radon concentrations in buildings. This is done by drawing soil gas from under the house and venting it above the roof. A quality mitigation system should reduce levels to below 4.0 pCi/L, if not lower. After a radon mitigation system is installed perform an independent short-term test to ensure the reduction system is effective. Operate the radon system during the entire test. This test will confirm low levels in the home. Be sure to retest the house every two years to confirm continued radon reduction. Radon Warning Statement "The Minnesota Department of Health strongly recommends that ALL homebuyers have an indoor radon test performed prior to purchase or taking occupancy, and recommends having the radon levels mitigated if elevated radon concentrations are found. Elevated radon concentrations can easily be reduced by a qualified, certified, or licensed, if applicable, radon mitigator. Every buyer of any interest in residential real property is notified that the property may present exposure to dangerous levels of indoor radon gas that may place the occupants at risk of developing radon -induced lung cancer. Radon, a Class A human carcinogen, is the leading cause of lung cancer in nonsmokers and the second leading cause overall. The seller of any interest in residential real property is required to provide the buyer with any information on radon test results of the dwelling" InstonetfonAs REAL ESTATE DISCLOSURE ADDENDUM AND RELEASE Property Address: 3 1-d � aw- , �( • rl-ew 14�, MW S S`/Z `7 d,1 Buyer(s) and Buyer(s) Agent acknowledge that they are aware that due to possible water damage and/or excessive moisture mold, mildew and/or other microscopic organisms may be present within the subject property. Buyer(s) and Buyer(s) Agent are aware that exposure to certain species of mold may pose serious health risks, particularly in individuals with immune system deficiencies, allergies or respiratory problems, and young children and elderly persons. To the best of Seller's knowledge, no tests have been performed and no investigation undertaken in connection with mold fungal spores or my other microscopic organisms that may be present within the subject property. Buyer(s) and Buyers(s) Agent acknowledge the property is being sold and conveyed "AS IS". Buyer(s) and Buyer(s) Agent further acknowledge that under the terms of the Contract of Sale. Buyer(s) have had, or will have had, prior to closing, full and timely opportunity to make a complete inspection of the subject property, including any environmental inspection or investigation of the subject property. Buyer(s) and Buyer(s) Agent agree that the purchase price of the property reflects the agreed upon value of the property "AS IS", including the aforementioned disclosures. Buyer further acknowledges that Minnesota Statute 229.51 requires installation of a UL listed Carbon Monoxide alarm within 10 feet of any lawful sleeping area. Buyer assumes responsibility for installing aid alarms to comply with the law. Buyer is responsible for any water or utility reconnection fees. In the event that utilities are disconnected for any reason Seller will not reconnect or reactivate them. Seller has not made and does not make any express or implied representation or warranty of any kind with respect to the environmental condition of the subject property or whether it is in compliance with any local, state, or federal environmental law, code, or standard. Buyer(s) and Buyer(s) Agent hereby agree not to pursue any claim against Seller or its Agents for any violation of any such laws, codes, standards, or for cost incurred in conducting investigations pursuant to such laws, codes, or standards. In addition, Buyer(s) and Buyer(s) Agent agree to fully and forever release, discharge and hold harmless Seller, its agents, employees, contractors, and representatives from and against any claims, damages, losses, costs or expenses of any kind sustained or arising directly or indirectly from or in connection wi Vnown unknown c ndition of the subject property. � e Buyer Date \ �1 Buyer. Date Buyer Agent Date Rev 2-2014 City of New Hope Single -Family Acquisition and Rehab-- Scattered Site Housing Program Total Project Cost and Total Funding Sources 3984 Zealand Avenue New Hope MN, 55427 USES Amount Acquisition 165,000 Rehab/Construction 65,885 Real Estate Taxes 3,115 Current Tax Value $187,000 Legal 1,500 Current Property Tax $3,115 Listing Fee 13,000 Closing, Recording Fees 1,500 Estimated Tax Amount "after rehab" $4,200 "based on a value of $255,000" Contingency 5,000 Total 255,000 SOURCES Amount EDA 255,000 Total 255,000 Anticipated Sales Price 255,000 VON anuaAV allow_ -jk, do 3 L s.- -.1 =sem Mir IP 1,13N P: Z4 io� �-,IIJO N anuaAV in le3a joTq anumV f i I o a. k 1/31/2017 NorthstwMLS Matrix Property/Agent Full Display, Single Family Residential, MLS #:4790100 Type: For Sale 3984 Zealand Avenue N, New Hope MN 55427 Status: Active List Price $150,000 C1. 11114 lS7 runt 1/14 Total Bed/Bath: 3/ 2 Garage: 2 Year Built: 1964 Style: (SF) Split Entry (Bi -Level) Const Status: Previously Owned Foundation Size: 1,218 AbvGrdFinSgFt: 1,218 BeIGrdFinSgFt: 400 Total Fn SgFt: 1,618 Acres: 0.235 Lot Size: 103x155x46x130 Yea rly/Seasons I :Yearly Original List Price: $150,000 42nd Ave A, Gechsemaae iS6� Cemetery m y 4C*Ave N 4 yF jqrh Ave 7d Bethe Cemefe Northwood Park Herzl Cemete List Date: 01/27/2017 Received By MLS:01/27/2017 Days On Market:4 PDOM: 4 General Property Information Legal Description: LOT 010 BLOCK 002 HIPPS HOPEWOOD HILLS REVISED County: Hennepin Postal City: New Hope School District: 281 - Robbinsdale, 763-504-8000 Manufactured Home,No Complex/Dev/Sub: Common Wall: No Lot Description: Tree Coverage - Medium Road Frontage: City Zoning: Residential -Single Accessibility: None Remarks Agent Remarks: Highest and best offers dues Friday 2/3 12 noon. Submit best offer and multiple offer form in supplement. Sold as is no warranties. Buyer resp for city inspections work & assessments if any. No seller repairs, concessions. See supplement for forms. Email offers and questions. Em will be deposited in sellers title co. **Trust funds electronic not accepted. Seller does not review offers until property has been on market for minimum 4 business days. Public Remarks: Terrific location and neighborhood. Needs your tic and Ideas. Great treed lot. Three bedrooms main level. Full bath and 1/2 master bath. Nice dining room area off of kitchen. Family room in lower level. Buyer will be responsible i J 36th Ave N - 3 t t 9ve tt c.'= IAi:r3ioh V 7uig 2 C 2V7 HERE Map Page: 91 Map Coord: C3 Directions: Forced Air Boone Ave to 40th Ave, east to Zealand to h ome TAX INFORMATION Property ID: 1811821420041 Tax Year: 2016 Tax Amt: $2,865 Assess Bal: $251 Tax w/assess: $3,116 Assess Pend: Unknown Homestead: Yes List Date: 01/27/2017 Received By MLS:01/27/2017 Days On Market:4 PDOM: 4 General Property Information Legal Description: LOT 010 BLOCK 002 HIPPS HOPEWOOD HILLS REVISED County: Hennepin Postal City: New Hope School District: 281 - Robbinsdale, 763-504-8000 Manufactured Home,No Complex/Dev/Sub: Common Wall: No Lot Description: Tree Coverage - Medium Road Frontage: City Zoning: Residential -Single Accessibility: None Remarks Agent Remarks: Highest and best offers dues Friday 2/3 12 noon. Submit best offer and multiple offer form in supplement. Sold as is no warranties. Buyer resp for city inspections work & assessments if any. No seller repairs, concessions. See supplement for forms. Email offers and questions. Em will be deposited in sellers title co. **Trust funds electronic not accepted. Seller does not review offers until property has been on market for minimum 4 business days. Public Remarks: Terrific location and neighborhood. Needs your tic and Ideas. Great treed lot. Three bedrooms main level. Full bath and 1/2 master bath. Nice dining room area off of kitchen. Family room in lower level. Buyer will be responsible for city inspection work. Great potential herel Structure Information Room Level Dimen Other Rooms Level Dimen Heat: Forced Air Living Rm Upper 20 x 13 Deck Main 18 x 18 Fuel: Natural Gas Dining Rm Upper 13 x 10 -- - Air Cond: None Family Rm Lower 24 x 16 Bathrooms Water: City Water/Connected Kitchen Upper 11 x 10 Total: 2 3/4: O 1/4: 0 Sewer: City Sewer/Connected Bedroom 1 Upper 12 x 11 Full: 1 1/2: 1 Garage: 2 Bedroom 2 Upper 12 x 11 Oth Prkg: Bedroom 3 Upper 12 x 10 Pool: Bedroom 4 Bath Description: Main Floor Full Bath, 1/2 Master Dining Room Desc: Informal Dining Room Family Room Char: Lower Level Fireplaces: 0 Fireplace Characteristic! Basement: Full, Finished (Livable), Day/Lookout Windows Exterior: Fiber Board Roof: Asphalt Shingles, Pitched http://matrix.nortlutarmis.comIMatrix/PublicIDisplaylTQPopup.aspxfiid=18ci&-17697&params=150%20NjA2M jg2MQ))&pbs=1 &L= l &exk=e45aeb6dl897ad3... 1/2 1/31/2017 NorthstarMLS Matrix Amenities -Unit: Deck, Natural Woodwork, f(Itchen Window, Washer/Dryer Hookup Parking Char: Attached Garage, Tuckunder Special Search: 3 BR on One Level Financial Cooperating Broker Compensation Buyer Broker Comp2.5'/o Sub -Agent Comp: 0 % Facilitator Comp: 2,5 % Variable Rate: N List Type: Exclusive Right Sellers Terms: Conventional, Conventional Rehab, Cash In Foreclosure?: No Lender Owned?: Yes Potential Short Sale?: No Owner is an Agent?: No Contact Tnformation Listing Agent: John W Anderson 612-309-5402 Appointments:: Co -List Agt: Wallace E Anderson 763-535-1471 Listing Office: Twin Oaks Realty, IncTwin Oaks Realty, Inc 1 Office Phone: 763-535-1471 MLS #: 4790100 Address: 3984 Zealand Avenue N, New Hope, MN 55427 http://matrix.northstarmis.can/MatrixlPLlic/DisplaylTQPopup.aspx?iid= l &c id=176978params=150%2{NJ1A2M1g2MQ))&pbs= i 81= I &exk=e45aeb6dl897ad3... 2/2 1/31/2017 3984 Zealand Avenue N, New Hope, MN 55427 MLS Number: 4790100 Ito, . NorthstarMLS Matrix httPJ/matrix.northstarmIs.com/Matrix/Public/PhotoPopup.aspx?n=14&i=0&1-=1 &bd=1 &key=6062861&mtid=1 &pbs=1Wew=G 1/3 1/31/2017 Nor#%WMLS Matrix httpl/matrix.northstarmis.com#Aatrix/Public/PhdoPopup.aspx?n=14&i=0&L=1&b =1&key=6062861&mbd=l&pbs=1&View=G 2/3 1/31/2017 NorthstarMLS Matrix y r r 31 .1k: http://matrix.norMutarmis.com/ Matrix/PublicIPhotoPopup.aspx?n=14&i=O&L=1&6d=18key=6062861&mbd=l8pbs=l&View=G 3/3