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IP #772EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development 6-28-04 EDA Item No. 1 � I By: Kirk McDonald B y: r. 5 RESOLUTION APPROVING PURCHASE AGREEMENT 9101 36TH AVENUE NORTH (IMPROVEMENT PROJECT NO. 772) REQUESTED ACTION Staff is recommending that the EDA approve the attached resolution prepared by the city attorney approving the purchase agreement for the deteriorated, abandoned, single-family home at 9101 36th Avenue North. The city attorney will be present to discuss this matter. POLICY/PAST PRACTICE The City Council and EDA acquire deteriorated properties throughout the city on an as-needed basis as part of the city's scattered site housing program. This program helps to maintain a good housing stock in the city and meets the goals stated in the Comprehensive Plan and City Plan. BACKGROUND Please refer to the background information on this property provided in the May 24 Council packet, as it is not the intention to replicate all of that information in this request. At the May 24 Council meeting, the City Council authorized staff to negotiate for the purchase of this property with the intent to demolish the structure and sell the parcel to a private developer via a selection process for a market rate up-scale home, with the city having approval of the plans. This matter is now being considered by the EDA because the property would be purchased with EDA funds. Per the attached letters of correspondence, the city met with the broker representing the bank and made an offer of $36,000 (land value less estimated demolition costs). That offer was not accepted by the bank and they were prepared to list on the MIS for $69,900, but said they would sell to the city for $62,000. Staff did not want to lose out on the opportunity to acquire the property, therefore, the city manager authorized a counter offer of $46,000. The bank accepted that offer and the attached resolution approves the purchase agreement at that price. There may be another offer pending on the property, which the city attorney can discuss, but staff is recommending proceeding with the approval of the agreement. Staff has obtained two estimates for demolition (attached) which range from $7,875 to $10,000. MOTION BY 2 Id SECOND BY L2 TO: Z12L) J02 6 I RFA\Planning \ housing\ 9101 36th\Q-apry purchase agreement Request for Action Page 2 Staff recommends approval of the resolution. ATTACHMENTS • Resolution • Purchase Agreement • City Attorney Correspondence • Demolition Quotes • Maps • 1, CITY OF NEW HOPE EDA RESOLUTION NO. 04 - 24 RESOLUTION APPROVING PURCHASE AGREEMENT 910136 1h Avenue North (IMPROVEMENT PROJECT 772) BE IT RESOLVED, by the Economic Development Authority in and for the City of New Hope (EDA) as follows: WHEREAS, New Hope City staff have been in contact with Garth Johnson, agent for Litton Loan Servicing, Inc. representing the Owner ( "hereafter Owner ") of certain real estate known as 910136 th Avenue North (the "Property "); and WHEREAS, the Owner has acquired title to the Property by a mortgage foreclosure sale from the previous owners and is desirous of selling the property as soon as practical without incurring any further rehab costs or expenses given the current deteriorated condition of the single family home located on the Property, and WHEREAS, the Property is currently unoccupied and not habitable resulting from severe water damage that occurred at the property; and WHEREAS, the Hennepin County Assessor has determined the Property's 2004 vacant land value is $46,000.00 for real estate taxes payable in 2005, and WHEREAS, the current condition of the existing single family home on the property will require it to be demolished and removed from the Property at a cost estimated to equal or exceed $10,000.00, and WHEREAS, the Owner is willing to sell the Property to the EDA for its 2004 vacant land value of $46,000.00 as set forth in the Purchase Agreement attached hereto as Exhibit A and incorporated herein by reference with the understanding this is an "AS IS" sale and the EDA will assume all responsibility for the demolition and removal of the single family structure from the property; and WHEREAS, the EDA hereby approves the Purchase Agreement attached as Exhibit A, 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, it being in the best interest of the EDA to purchase the Property from the Owners for the sum of $46,000.00, with other terms and conditions as set forth in the Purchase Agreement and to redevelop the Property in accordance with the City's scattered site housing program and policy. 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. That the purchase of the Property by the New Hope EDA from the Owner for the sum of $46,000.00, with other terms and conditions as set forth in the Purchase Agreement attached hereto as Exhibit A, is approved. 3. The President, Executive Director and New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional actions are necessary or desirable, to complete the purchase of the Property in accordance with the Purchase Agreement attached hereto as Exhibit A. Dated the 28` day of June, 2004. Attest: Daniel J. Donahue, Executive Director P:\AttorneylSAS \I Client Files \2 City of New Hope \99.1131 ] (9101 36th) \Reso Approv PA -9101 36th Avenue doc 06/22/2004 07:30 FAX 763 493 3193 JENSEN & SONDRALL. P.A. CNH CH Q 00; JUN.16.2004 11:45AM REALTY HOUSE EDINA NO.374 P.4 /11 PURCHASE AGREEMENT This form soproved by the Minnesota Association of REALTORSI , which disclaims any ligodity anteing out of use or misuse of 111)6 torn. ® 2003 Minn saoto Assooietion of AAALTORS0. Edina. MN 1. Dat T 2. Page i of 9. 4. 5. e. 7. e . g. 10 77. 12. 13. 14. 15. 16. 17, 18. la, 20. 21, 22. 23. 24. 25. 26- 27. 28. 28. 30. 31. 32. 33. 34. which Buyer aAY to pqy in the following manner. earnest pion f S � U - - and t�_- 5 oast, on the date of closing, and the ba lance of$ r by financing fn ao;Orda Ith attached dum: Conventional / FHA f DVA / Assumption / Contract for D ead I Purchase Money Mortgage I Other: ,ub Oil th-" OPP✓Y This Purdtass Agreement is N )set to a Contingency Addendum for ante of Buyer* property. cif answer Is 18, else attached Addendum.) (if answer Is 16 NOT, the closing of Huyerr. property. K any. may still affect Buyer's ability to obtain financing, if financing is applicable.) This Purchase Agreement !S S NO jest to canceYetion at* previouey written Purchase Agreement dated NA (K enawepr Is 10. said cancellation shall be obtained no later tha NA , 20 . if said cancellation N not obtained by said dads, thin Purchase Agm*rA*nt Shall become null and void. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement directing all earnest money paid hereunder to be refunded to Buyer.) 35. This Purchase Agreement IS S OT ubject to a Vacant Land Addendum. (if answer in IS, sos attached Addendum.) 38, Buyer has been made aware of the supiksWilky of properly inspactions. Buyer Elects loadings to have a property inspection performed et Buyer's expense. 37. This Purchase Agreement IS 1 /S NO subject to an Inspection Addendum. (If answer t9 18. see attached Addendum.) -�I 38. 39. 40. 41. 42. 43. 44, 45, 46. 47, 49. 49. 60 DEEDIMARKETABLE TITLE-, upon performance by Buyer, Salter shall deliver a Warranty Dead or Other: Special or Limited Warranty Dead joined in by spouse. if any. conveying marketable title, subject to: en (A) building and zoning laws, ordinances. Crate and federal regulations; (a) restrictions relating to wee or improvement of the property without effective forfeiture proViloWne; (C) reeervatIon of any mineral rights by the Otate of Minnesota: (D) utility and drainage easements which do not interfere with existing improvements; (E) rights of tenants as follows (unless specified, not subjeex to tenancies): NA (A) others (must be specm BUYER SHALL PAY / ELLER SHALL P on date of closing any deferred reel estate taxes (e.g., Gree Acres, etc.) or spacial r-- aeeeaaments, payment of which is required an a result of the *losing of this sale. BUYER AND SELLMR SHALL PRORATE AB OF THs DATE: OP CLO / 9iLLER SHALL PAY ON OATH OP CL061N atolfmoms maw of special assessments oerttned aaast estate tapes due and payable In the year of closing. BUYER SHALL All UM h fiCIAW IKLLFR SHALL PAT n date of closing alt other special assessments levied as Of the date of this Agreement. assessments pending as of the pate of this Agreement 51, for improvements that have been ordered by any assessing authorities. (Seller's provision for payment shall be ey 52_ Payment into escrow of two (2) times the estimated ,amount or trio assessments or less, as required by Buyer's lender) 53. Buyer shall pay any unpaid special aseeeements payable in the year following closing and thereafter, the payment of which is not otherwise 54. herein provided. 65. As of the date of this Agreement. Seller represents that Sailor HAS HAG NOT eeivad a notice regarding any new improvement 56, project from any assessing authorities, the costs of which project may be assessed against the property. Any such notice 57, received by Sailer after the data or this Agreement and before Closing will be provided to Buyer Immediately. If notice or a pending 5e. apool6l essesemertt is issued otter the data of this Agmarnant and on or betas the date of closing, than rho parties may agree in wrtdna. anew before the S9. data of closing. to pays provide tot the payment of, or assume the spouts, assesentsota. SO. unilaterally pay. Provide to rho absence of such ogrogment. either party may B1. party may declare th s re th s Puronsee gre for the payment Agns absence , aressume such special assessments. In the cost" ncc of sold eareemant. or said unilateral elsetion. either emere null and void. Buyer and Caller shag immediately sign a Cancellation or Purollew AememaM okQOlr g all Fit, sarnect money paid hereunder to be refunded to Buyer. MN:PA.t rmrn�� EXHIBIT = J - before the third business; day after acceptance, In the trust account of listing broker but to be returned to Buyer N Purchase Agreement to not accepted by Seller. geld earnest money is part payment for the purchase of the property located at: Sb"t Address: 2101 36TH Avenue Naxth city Of New Hope County of Hennaoin State of Minnesota, Legally described as: _L-Ang1thy_!anal. tp ponrOrm WKn PUP"I 91 1 6 21 7200 0 1 Including all fixtures on the following property. If any, owned by Seller and used and located on cold property, including but not limited to: garden bulbs, plants, shrubs and tress; storm *ash, storm doors, screens and awninge; window shades, blinds, traverse and curtain and drapery rods; attached lighting fixtures and bulbs; plumbing fixtures, water heater, heating plants (with any burnam, tanks, stokers and other aqu , sad in connection therewith), bufft -In air- aondftlonino equipment, electronic air Alter, water softener OWNED / RENTHD NON!!, Ili -In humidifier and dehumidKler, liquid pas tank and controls (if the property of Sailor), sump pump; attached television antenna, cable TV jacks and wiring; BUILT -INS: dishwashers, garbage disposals, trash compactors, ovens. cook -top staved, microwave ovens, need fans. Intercems; ATTACHED: carpeting; rnln'ors: garage door openers and all controls: smoke detectors; nreplave screens, doors and hastilatom; AND: the following Personal propertW 06/22/2004 07:30 FAX 763 493 5193 JENSEN & SONDRALL. P.A. CNE CH Iitl003 JUN. 1B.2004 11 :4FAM REALTY HOUSE MINA NO.374 F. 5/11 PURCHASE AGREEMENT 03, Pags 2 84. TITLE & EXAMINATION: Within a reasonable time after acceptance Of this Agreement, Seller shall Provide 65. evidence of title, which shell Include proper seerchos covering bankruptoles, state and federal judgments and lieni, 86. and levied and pending Special Assessments to Buyer or Buyer's designated title service provider, as follows: 87. if property is abstract, Geller shall provide either (1) a co mmitment for an owner's policy of title insurance on a current 68. ALTAA form Issued by an inauntr licensed to write title Insurance in Minnesota_ Seller shall pay the cost of an owner's policy, including the 69. entire premium, title examination fee and the costa of evidence of tltle for auch title insurance policy If no lender's policy is obtained; or only 70. the additional cost of obtaining a simultaneously issued owner's policy If a fender's policy is obtained (Buyer 71, shall pay the premium and the title examination fee for the lender's policy): 72. 73. If property is 7orrans, Seller shall provide, at Buyer's option and request, either (1) a Registered Property Abstract 74. (RPA) certified to date; or (2) a commitment for an owner's policy of Win insurance on a current ALTA form Issued by 75, an insurer licensed to write title insurance in Minnesota. Seller shall be responsible to pay, under either option, only 76. those costs necessary to prepare the RPA or commitment. Buyer shall. at Buyers option, pay for either the Attorney's 77. Opinion or the tme Insurance premium and exatnbnatton wee. 78. Seiler shall use Seller's beat efforts to provide marketable title by the date of closing. In the event Seller has not 79. provided marketable title by the dew of closing. Seiler shalt have an additional 30 days to make title marketable or, in so. the alternative, Buyer may waive title dafecta by written notice to Softer. in addition to the 90 -day extension. 81. Buyer and Seller may by mutual agreement further extend the dosing date. Lacking sueh extension, either party 82. may declare this Purchase Agreement null and void; neither party shalt be liable for damages hereunder to the other. 83. Buyer and setter shall immediately sign a Cancellation of Purchase Agreement directing ail earnaat money paid hereunder to be refunded 84, to Buyer. 85. aUBDIVI LION OF LAND; If this sole constitutes or requires a subdivision of land owned by Bolter, Seiler Shall pay 86. ail subdivision expanses and obtain all necessary governmental approvals. Seller warrants that the legal description of 87. the real property to be conveyed has been or will be approved for recording as of the date of closing. Seller warrants 86, that the builclings are or will be eonetructed entirely within the boundary lines of the property. Seiler warrants 88. that there is a right of access to the property from a public right -of -way. These warranties shalt survive the delivery of 90. the deed or corur'ect for deea 91, Seller warrants that prior to the closing, payment In full will have been made for all labor. materials, 82. fixtures or tools, furnished within the 120 days Immediately preceding the Olosing in connection with construction, machinery, 8S. alteration or repair of any structure on, or improvement to, the property. 84. Seller warrants that Seller hat. not received any notice from any governmental authority as 95. proceedings, violation of any law, ord to condemnation fnance or regulation, tf the property Is eubJeot to restrlotiv covenants, condemnation 96. warrants that Salter has not received any notice from any person or authority es too breech of the covenants. Any 87. such notices received by Seiler Will be provided to Buyer iftime flatety Wa. Seller agrees to allow reasonable access to the property fix. perfor moncs of any surveys or inspections agreed to herein_ 99. RISK OF LOSS: If there is any loss or damage to the property betw the date hemof and the date of closing for any reason, Including 100. fire, vandalism, flood, earthquake or act of God, the risk of loan shell be on Seller. If the property is destroyed 101. or substantially damaged before the Closing date, this Purchase Agreement shalt become null and void. at 102. Buyer's option. Buyer and Seiler shall Immediately sign a Cancellation of Purchase Agreement directing all earnest money paid hereunder 103. to be refunded to Buyer. 904. TIME OF ESSENCE. Time is of the essence In this Purchase Agreement, 105. ENTIRE AGREEMENT: This Purchase Agreement, any attached exhibits and any addenda or amendments signed 108, by the parties shall constitute the entire agreement between Seiler and Buyer and supersedes any other written or 107. oral agreements between Seller end Buyer. This Purchase Agreement can bs modified or canceled only in writing signed by 108. Seller amid Puyer or by operation of kaw All monetary sums are deemed to be United Ststea currency for purposes of this agreement. 109. guyer cur Sag erfnsy be rrpuired to pay certain cbsing GZMte which may effectively reduce the 110- outlay at closing. proceeds 1t om fttesate orbnotsaca the cash Ill. ACCEpTANGE: Buyer understands and agrees the t this Purchase AgrearrieW In subject to acceptance by Seiler in witting. The delivery of all papers and morose *hail be made at the listing brokar s oftioa. 113. DNipAUVII. If Buyer defaults In any of the agreements herein, Beier may terminate this Purchase Agreement, and payments made 114. hereunder may be retained by Seiler as liquidated damages. if this Purchase Agreement la not so 115. terminated, Buyer or Gallop may Week actual damages for breach of this Agreement or specific performance of this 118. Agreement; and, as to specific perforMenoe, such action must be commenced within sic[ (0) months after such right of 117. action arloss, Ila, NOTICE REGARDING PREDATORY OFFENDER INFORMATION: Information recording the predatory offender registry 118. and persons registered with the predatory offender registry under mN Statute, 243.186, may be obtained by contacting 120. the local low enforcement offices In the community where the property is located, or the Minnesota Department of 121. Corrections at (651) 642 -0200, or from the Department of Cowreetiens Web eke at www.00rnstate.mn.us. MWFAr2 (1d/O9) 06/22/2004 07:31 FAX 763 493 5193 JENSEN & SONDRALL. P.A. CNH CH Z 004 JUN.18.aOO4 11 :47RM REALTY HOUSE EDINA N0.374 P. & /11 PURCHASE AGREEMENT' 122, Address 19 A orth 129. Page 3 Date 124. Buyer ::Pi RO DAY OF CLOSING 12ths / ALL / NONE real estate taxes due and payable In the yar e 2 004 126. Seiler DAY OF CLOSING 12ths /ALL / NONE teat meta Maus due and payable in Ow year 2004 It the 126. closing date is changed, the real a / N d s paid shell, if prorated, ti® a0usted to the new closing Cats. Sailer warrants taxas ova and 127- payable In the year 2004 will b FUL PAON homestead wateMeetlon- h te part -or no- hrr o,vstaad etrseatflaation is oitioicd, anw. N 128. Seller agrees to poy Buyer at closing $ 0.00 129. toward the nory- homestead real estate taxes. Buyer agrees to pay any remaining balance of no"omeetoad taxes when they become 130, due and payable. Buyer shall pay real asE to taxes due and payable in the year following closing and thenaarmr, the payment of which is 131, not otherwise herein provided. No representations are made concerning the amount of subsequent real estate taxes. 132. POSSESSION: Seiler shall deliver possession of the property not later titan Immsdiata!v after closing. 133. Ali interest, homsowneft association dues, rents and all charges for city water. CITY Sewell, electricity and natural pas shall be prorated 134. between the parties as of date of dosing. Buyer shalt pay Sailer tot remaining gallons of fuel oil or liquid petroleum gas on the day of 135, closing, at the rate of the last rill by Setter. Seller agrees to remove ALL DEBRIS AND ALL PERSONAL PROPERTY NOT INCLUDED 136- HEREIN from the property by posse661on date. 137. ENVIRONMENTAL CONCERNS; To the best of Seller's knowibdpe, there are no hazardous, substances or underground storage 138. tanks except herein rioted: Buyer to Perform their own Indertendant PCmatione. 139. TS 141, CiTY SEWER © YES ❑ No ) CITY WATER ® YEB ONO 142. SE11.ER BUYER RESS TfS PROMDE WATER CUALITY"XT RIMULTS IR REGUIREU BY 0 WRNrNO ALtTNORiTY AND/OR LENDER 143. 3 �+' BUYER REES TO PROVIDE, IF REQUIRED 1SYTHE TOWS OFTHIS PURCHASE AGREEMENT OR BY GOVeRNIN 144. AUTHORITY AND/OR LENDER, A LICENSED INSPECTOR% SEPTIC SYSTEM /NLSPEcnoisl REPORT OR NOTICE INDICATING Il 146, THE SYSTEM COMPLIES WITH APPLICABLE REGULATIONS. NOTICE-. A VALID CERTIFICATE OF COMPLIANCE I.OR THi 148. SYSTEM MAY SATISFY THIS OC LiG:AT10N. NOT"INS IN LINI?Si 142 TO 446 SHALL OBLIGATE SELLER TO UPORADR, RNPA1R 01 147. REPLACE THE SEPTIC SYSTEM, UNLESS OTHERWISE AGREED TO IN THiS PURCHASE AGREEMENT 148. BUYER HAS RECEIVED THE WELL DISCLOSURE STATEMENT OR A STATEMENT THAT NO WELL EXISTS ON THE PROPERTY 142. AND A SEPTIC SYSTEM DISCLOSURE STATEMENT OR A STATeMENTTIIAT NO SBPT{C SYST6Md EXISTS ON OR SERVES THE 150. PR R 1 Y. AS REQUIRED IRED BY MtNNE3TA STATUTES. 151. SELLER WAMRAWTS THAT CENTRAL AIR-CONDR10NtNG, HEATING, PLUMJ31NG AND WIRING BY O AND LOCATED ON 152. SAID PROPERT BE IN WORKING ORDER ON DATE OF CLOSING, EX NOTED iN THIS AGREEMENT. '153. BUYER HAS THE RIGHT LK- THROUGH REVIEW OP THE PRO OR TO CLOSING, TO ESTABU15H THAT THE 184. PROPERTY 19 IN SU68TANTL4LL AMAIE CONDITION DATE OF PURCHASE AGREEMENT. SELLER AGREES 158. TO NOTIFY BUYER IMMEDIATELY ltd O GSTAN a I VF CHANGES FROM ANY PRIOR REPRESENTATIONS 158. REGARDING THE PHYSICAL CONDmoN 157. BUYER ACKNOWLEDGE �?}} �'1O ORAL RIEPRESErNTATiONb ' r T'N41,t BEEN MADE REGARDING POSSIBLE PROBLEMS 158- WATER IN BASENjP�R"t3E2 DAMAGE CAUSED BY WATER OR iCE BUILDt P"6i0d�ROOF OFTHE PROPERTY, AND BUYER R5l 959. SOLELY �i>r F RD gMGA ONTHL" ROLLJOWING STATEMENT BY SELLER: 1 LEER H_ AS ! a HAD A WET BAS' AND IdAB / HA8 a NOT HAD ROOF WALL DAMAGE CAUSErf BY WA � a„__ 161. OR ICE BUILDUP. BUYER HAS I AS NOT ECEIVED A SELLER'S PROPERTY DISCLOSURE STATEN 6ELLE 1$2. DISCLOSURE ELECTION RORM. BUYER HAS RECEIVED THE INSPECTION REPORTS, OF REQUIRED BY MUNICIPALITY. 183. NOT/C ^'� 164. Garth R eally ISIS The Realty �s Seller's Buyer's Agent I Du 0.tcensa.) •"e -� y w ent 1 Facilitator House 166. tomi.r�ery Is Seller's Agent / Buyer's Agent / Dual Agent / Facilitator 167. caw a.r 1 09. DUAL. AGENCY RQPROSHNTATION 170. PLEASE= CHECK tZpf{; OF OLLOWING S61.QCTLONEi; 171, q Dual Agency representatio crt n Norawy in this transa. Dkwo9ord ))nea 172, p Dual Agency representation a a In this traneaodon, CampAdle the disclasurm 173. Broker rapreeente both the Seller(a) and the Et S) of the property involved in th auction, which creates a dual agency, Thi 174, means drat Broker and its salespersons owe Fidueda ea to born Seine s 175. intomots. Broker and Its salespersons are prohitNted from �) UYer(B?` Because the parties may have confliet(n 176. transaction without the consent of both 9slisr(c) and Buyer(a , ap p for eith Party- DmXsr cannot act as a dual agent in Thi 177. (1) confidential Fnformation COMMunicated to nd Buyar(s) acknowledge that: 178. unless Sellers) or Buyer(e) instructs Broker ivy ' "«1 ng t4 'rlc ioae a to a t r on o r�nfor tratjen w°ii ta shmred 180. 178. (2) Broker and Its Salespersons will not re ant the interes elih�r (3) within the ltmits of due{ agency, 9rrf its eat® party to the detriment of the ether; ant 181. with the knowledge and understanding o explanation above, Saller(e a fluently to rid instruct ' v l Broker and itt 182. 2 8I00PUMOMB to act as dual agertl6 In nseoc on 183_ taausr) . 104. te.ra� 1soNad 186. (Buyer) 06/22/2004 07:31 FAX 763 493 3193 JENSEN & SONDRALL. P.A. CNB CH 0j 003 JUN. 18.L 11s47AM REALTY HOUSE EDINA rY0.374 P.7,-11 PURCHASE AGREEMENT ISO. Address 9101 3M Avenue North 187. Pape 4 Dots 788. 1 ACKNOWLIEDDE THAT I HAVE RECEIVED AND HAD THE OPPORTUNITY TO RO ViBW THR ARBITRATION DISCLOSURE 180. REGIDENTIAL RBAL PROPERTY ARBITRATION AGREEMENT. a 190. 561-LER(S) 1g1 SELLCR(S) BUYER(s) f i 94. 185. 196. 187. Attaohod are other addenda which are made a part of this Purchase Agreement. (Enter total number of pages of this Purchase 1138. Agreement, including addenda, an line two (2) of page arts (1).) 199. 1, the owner of the property. acoopi this Agreement and 200. allt"rinze tie Itoang broxer to wiutdraw solo property from 201, the market, unless instructed otherwise in writing. 202. 1 have reviewed ON Pages at thin Purchase AgreamanL I aprea 10 purchase the property for the price and in accordance with Ole terms anti conditions cat corm above. i have reviewed all pages of this Purchase AgreamenL 203, n If chocked, this Agreement 4 subject to attached 4/ /rz5 � 4t Jo� '� 204. Counteroffer Addendum. 206. X x (Seliar's Signature) ® — (Dwte) (8vyer elute) (bate) 206. X X (Seaero Printed No (Buyers Printed Name) 207. X X (Social Security Number - optional) (Marital Sothis) (Social Security Number - optional) (Marital status) 208. X x (Sellers Signature) (Date) (Huyar'a Signature) (pats) 208. X (Sailor's Printed Hama) x (Buyer'* Printed Name) 210. X X (Social Security Number - optional) (Marital Status) t800ial Security Number - optional) (Marital Statue) 211. FINAL ACCEPTANCE DATE 212. 2 THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYERS AND t3EL1.GR1. IF YDU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROP88990MAL MN:PA -4 (10 /03) 06/22/2004 07:31 FAX 763 493 3193 JENSEN & SONDRALL. P.A. CNH CH Q 00t, JUN.16.2004 11 :47RM REALTY HOUSE: EDINA NO.374 P.B/11 Addendum to Purchase Agreement Disclosure of information on Lead.Basad Paint and Lead-Based Paint Hazards This fonrn approved by the Minnesets Asoodatron of REAL.TOR96, which diac trims any li abUy erWng out of uss or misuse of this farm. 401999, Mtnrmocts AnagaLsken or Ruse. 6dlnm MW Addendum to Purchase Aorocmont between parties dated . ,� psrtalning to the Pu rchase and solo of the property at (oINea) ('tier) gt o1 ,9�1h Avenue North. New Hope, MN 66427 Section 1: Land Warming Statement Every purchaser of any Interest in residential real property on which a residential dwelling was bunt prior to 1 978 is no[fllod that auah proporty may Paaerrr exposure to lead from /seed- ba.sod paint that may place young children at risk of developing lead pasoning. Lead poisoning in young eh! /dren may produce permanent neurofogica/ damage, lne/ud/ng looming dfaabRiGers, rsducad InteUlgence quotient, beneavionaf prcbrams, and ImpaIrod memory. Lead poisoning siso poses a particular risk to pregnant women. The sellerr 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 fnspectlono in the seller's possession and nothy the buyer of any known isacf-basad paint hazards, A risk assessmnnt or Inspection for possible lead -based paint hazards is recvmalended prior to purchase. Seller's Dteelo=OV (initial) (a) Presence of teed -based point and/or toad -based paint hazards (cheek one below). M Known load -based paint and/or lead - based paint hazards are present in the housing (explain). ., Seiler has no knowledge of lead -based paint and/or lead- basaed paint hazards In the housing. (b) Records and reports available to the lessor (q+sck one below): r7 Seller has provided the purchaser with all available records and reports pertaining to load -based point and/or lead -based paint hazards i the housing (list docu ments below). Q Seiler rtes no reports or records portalnln8 to lead -based paint and/or lead -based paint hazards In the housing. Purc rlo Acknowledgment (initial) (c) Purchaser has received copies of all information listed under (b) above, (d) Purchaser has received the pamphlet Protoot Your Family from Lead In Your Noma. (e) Purchaser has (check one below): Q Received a 10-40Y opportunity (or mutually agreed upon period to conduct a neck assessment or Inspection for Ina Presence of load -based paint end /or loud -based point hezards (if checked, sea Section it below); or \ (� Waived the opportunity to conduct a risk assessment or Inspection for the presence of lead -based paint and /or lood-based paint hazaards_ 1_leattaes's AelcrsowvtadpeTeant (Initial) 7 tf) Real estate licenses has Informed the seller of the seller's obligations under 42 U-S-C, 4a52(4) and Is aware of licensee's responsibility to ensure compliance. Certification of Accuracy The following parties have raVlewad tho hiformetFon above and 00rtlfy, to the beat of their knowledge, that the information provided by the signatory is true and accurate. eWlo. tear PuRraw roe oars PWGheNr Ore Ricam n rasa ie.W uamir" PM Sec=tion il: Contiingencyrinh/ elan /yirlinitbox under PtrrehaserlsAoknowieciff antMiler(0)aboveIwhacked.) o o e o se t =' is con n tigent upon a risk assessment or an Inspection or the property far trio presence of bad -based point and/or t an (90y n ( point hazards to be conducted at the purehacor'e a><penea, The assoromont or inspection shelf be completed within calendar days altar a of the Purchase Agreement. This contingency shall be deemed removed. and the Purchase unless pure Agreement shall be Ill Rill farts and affect, hans or real estate licensee 883'13U ( p or fading on babel/ of purchaser delivers to wNer or real seb/te iicensee eseisting or acting on behalf of seller WIthln throe X regal rsQr togA watlt a ss tip � '� eem��d a written fast of the =Pacific deficiencies and the corrootlonn r wither throe 3 eaiander SPY of eery risk assessment or itlapatgort repot. If the seller and purchaser have not spread in writing oral be made: or days efts,/ dslivBry o! the wrttisn Gat of rsQuhrd bonediions that .W some or all of the reguirod oorreations meet "tan (B) the p urctasasr weivee tt7au drtfoion a C ran e0 eosy shall be refunded to the purcha+ar. it is urdarstood that ltae pul'�traeer may urtitetsreYy wahae de�� ( ss or defects. or rsmovo y, providing that the put- V" con&Wsr c cttassr or rho /oral estate ficoneee assisi(ng or taolirlp nn behaif of purchaser notifies the sailer or real estate iiowpsre asaillatin0 or ee7irig on betiolt ad asllsr o! the waiver arx removal k1 . ang Within the time specified. TLX:SALE (sl9s) 06/22/2004 07:32 FAX 763 493 5193 JENSEN & SONDRALL. P.A. CNH CH Q 007 JUN.18.2004 11:48AM REALTY HOUSE EDINA NO.374 P.9i11 ARBITRATION DISCLOSURE AND RESIDENTIAL REAL PROPERTY ARBITRATION AGREEMENT This form approved by the Minnesota Aaaoofatiwe or REAt.TORS0, which disclabns any 8spllIty arlatng out of Lisa or misuse of thla form. 02009. Mrnneaaote Association of REALTORS®, Edina. MN ARBITRATION DISCLOSURE You have the right to choose whether to have any disputes about the physical condition of the property that you are buying or selling decided by binding arbitration or by s court of law, By agreeing to binding arbitration you give up your right to go to court. By signing the RESIDENTIAL REAL PROPERTY ARBITRATION AOREEMENT ('ARB►TRA ON AGR EM )below you agree to binding arbitration under the Residential Roo' Property Arbitration System ( "Arbitration System ") administered by Construction Arbitmtlon Services, Inc. (CAS) and endorsed by the Minnesota Association of REALTORSO (MAR). The ARBITRATION AGREEMENT Is enforceable only if it Is signed by all buyers, sellers, and licensees representing or assisting the seller and the buyer. The ARHrTRATION AGREEMENT is not part of the purchase agireement. Your purchase agreement will )stirs be valid whether or not you sign the ARBITRATION AGREEMENT. The Arbitration System Is a private dispute resolution system offered as an alternative to the court system. It is not government sponsored. CAS and the MAR jointl adopt the rules that Govern the Arbitration System. CAS and the MAR are not affiliated. Under the ARBITRATION AGREEMENT you must use the arbitration services of CAS. All disputes about or relating to the physical condition of the property are subject to arbitration under the ARBITRATION AGREEMENT. This includes claims of fraud. misrepresentation, warranty and negligence. Nothing In this Agreement limits other rights you may have under Minnesota Statute:* 327A (statutory new home warranties) or under private contracts for warranty coverage. An agreement to arbitrate does not prevent a pony from contacting the Minnesota Department of Commerce, the state agency that regulates the real estate profession, about licensee compliance with state law. The administrative few for the Arbitratlon System varies depending on the amount of the claim, but it is more than initial court filing fees. In some cases;, conciliation court is cheaper than arbitration. The maximum claim allowed In conciliation court is $7,600. This amount is subject to future change. in some cases. it is quicker and less expansive to arbitrate disputes than to go to court, but the time to file your claim and pre - hearing discovery rights are limited. The right to appeal an arbitrator's award is very limited compared to the right to appeal a court decision. A reque for arbitrauon must be flied within 24 rrronths of the date of the closing on the property or else the claim cannot be pursued. In some canon of fraud, a court or arbitrator may extend the 24 month limitation period provided herein. A Party who wants to arbitrate a dispute files a Demand, along with the appropriate administrative fee, with CAS. CAS notflies the oth party, who may file a response. CAS works with the parties to select and appoint an arbitrator to hear and decide the dispute. A three- arbitrator panel will be appointed Instead of a single arbitrator at the request of any sera. The party requesting a panel must Pay an atldltionat fee. Arbitratona have backgrounds in IoW, real estate, architecture, engineering, cormM ucuon or other related fields. Arbitration hearings are usually held at the home sits. Parties are notified about the hearing at least 14 days in advance. A Party may lea represented by a lawyer atthe hearing Nhe or she gives 6 days advance nonce to the other patty and to OAS. Each party may present evidence, Including documents or testimony by witnesses. The arbitrator must make any award within 30 days from the flnel hearing date. The award must be In writing and may provides any remedy the arbitrator considers just and equitable that is within the scope of the parties' agreement. The arbitrator doers not have to make findings of fact that explain the reason for granting or denying an award. The arbitrator may require the party who does n ot prevail to pay the administrative fee. the Arbitration ystem ruiea Fore pw* Infoo mat r the wdminstrative fee, ple see the ran Schedule Ioeated the OAS Rules. Copies of the Arbitration System rules are available front CAS by callin (a00 www.ca *- usa.crg or from your REALTORtD, If ) 777-Bt1G Ext. 50A or on the web at consult a lawyer, you have any questions about arbitration, call CAS at (800) 777 -8118 Ext. 609 or THIS iS AN OPTIONAL, V READ THE ARBM;tA iON DISCLOSURE ABOVE IN FULL BEFORE SIGNING RESIDENTIAL REAL PROPERTY ARBITRATIONACRBEMENT For the property located ant 9101 38th Aven North Ci ty W New Hope , County of Hennepin St of Min nesota. Any dispute between the Lind *! a *, f them, about of retatrn to the purchase agreement dated g Ph yaical condition ofthe property covered by the be settled by binding arbitration. Construction A ration in SeM �, 1 i nfo si aij be tt�e arat s warranty and The rules. negligence, w on wffwet i t the time the Demand for arbitration Is filed, adopted by Construction Arbitration Services, Inc. and the Minnesota Association of REALTORS® all govem trio proeearying(e). This agreement shall survive the delivery of the deed or contract for dead I the purchase a Mont. This Agreement is only enforceable if all buyers, sellers and licensees representing or assisting the buyers and sellers have ad to arbitrate as acknowledged by oignaturea below. a)ea> tawara etanat,. {Data) (Saelar'e PrMlotl Ngmo ter)w'a Rlvad ►!anal f aisnaltue) COW.) taenar'c9teuasa) (oats) (serara pAn ) fetwont PMWW Nana) (6 srAaywna, 6tlaat) < w) fuaaneae Rannwnt0 arA almlin9 atwe" 'rho Real use tweei l�anY NanN) tCaN�anr HIe„.) THE RE8I0IjfrTrAL REAL. pROpERTYARpfTRATtO BETWEEN M AGREEMENT BS A LEt3ALLY BINDING CONTRACT BUYE=RS, SHLLERts AND LICEaNS@65. IF YpU DESIRE LEGAL ADVICE CONSULT A LAWYP-R. MN:ADRAA (2/D3) 06/22/2004 07:32 FAX 763 493 5193 JENSEN & SONDILILL. P.A. CNH CH 1008 JUN.18.2004 11:49RM RERLTY HOUSE EDINR NO.374 P. 10"11 WA"ER OF SELLER'S DISCLOSURE REQUIREMENTS FOR Y2 MMF,NTlAL REAL PROPERTY AND HOLD 1g'ARMLESIS AGREEMMNT ("Waiver and Hold Harmless Agreement!°) Seller: Ckvvncr of PLA=ord Buyer: Property Date: Buyer desires to purchase the Property from Seller, pursuant to a purchase and sale agreement (the "Agmemene) to be entered into between Seller and Buyer. 19fr'eetive on January 1, 2003, Minnesota law requires that the Seller either provide the prospective buyer of single- family residential reed property with & written diaelosave of all material facts pertaining to adverse physical conditions in the Property or which the Seller is aware of; or provide a report concoming the physical condition of the Property prepared by a qualified third party. The law also permits the Seiler and the Buyer to waive those disclosure provisions. Buys' (whether one or more) and Seiler herby waive, in their entirely to the Hall extend permitted by law, the written disclosure provisions act forth in sections 513.52 to 513.60 of the Minnesota. Statutes Annotated, pursuant to the provisiotrc of section 513.60 ofthe Minnesota Statutes Annotated concerning the above described Property. Buyer acknowledges that Buyer has been given an ample opportunity to seek the advice of Buyer's own chosen legal counsel concerning the agroesnent, the property and this Waiver and Hold Harmless Agreement_ Not with standing anything to the contrary in the Agreement, Buyer hereby apecificarlly holds Seller harmless fmm any claim or cUrime made by Buyer, Buyer's successors, assigns, heirs, insurers, agents or any other person or entity, as to any matter involving the disclosure set forth 1 sections 513.52 to 513.60 or clai made against Seller, at any time, concernins the disclosures set forth in sections 513.52 to 513.60 of the Minnesota Statutes Annotated concerning the Property made by Buyer. Buyer's" successors, assigns. heirs, insurers, agents or any other person or entity. The parties herein agree that except as otherwise provided herein, the Agreement provisions shall be in fall force and effect. This Waiver and Hold Harmless Agreement Shall be binding and Inure to the benefit of the Buyer and Seller and their heirs, suoeesaors, assigns, agents, employees and officers and shall survive the closing oftfle sale oftbe Property pursuant to the Agreement. t ..Buyer-. Seller. Its: t)tk1 06/22%2004 07:33 FAX 763 493 3193 JENSEN & SONDRALL. P.A. CNH CH D 00s Ji N. 1R. 20R4 11:49F#1 RE g/ ® HOUSE / E�DINA G CQ -= NO. 574 F. 11111 ' O; . 1- a MNMVWM Seller has not made and does not make any eats or implied representation or warranty of any kind with respGat to the cnvironaxental condition of the subject property or whether it is in complfeace wfth any local, state, or federal environmentai law, cod or standard, Buyer(s) a=d Suyew(s) Agent hvreby szme not to pursue any claim against Seiler or its Agents for any violation of any such laws, codes, standards, or for coat incurred in conducting inveStigations pursoeut to such laws, codes, or standards. In addition, Dutyer(s) and Buyer(s) Agent agree to fully and forever release, discharge and hold harmless Seller, its agents, employees, contrs�, and representatives from and against any claims, damages, losses, costs or expenses of any bind sustained or arlsing directly or indirectly frost or is connection with arzyy known or unknown condition of the subject property- Buyer Date Buyer Agent Date 06/22/2004 07:33 FAX 763 493 5193 JENSEN & SOIvDRALL. P.A. CNH CH Q010 JIN.18.2004 11 :45RM RERLTY HOUSE EDINR N0.374 P.2/11 AGENCY Rl°LATlCYNSFtlPS IN REAL ESTATE TRANSACTIONS that early in any relationship, real estate brokers or Salespersons discuss with consumers what type of agency representation or relationship they desire. The avarlable options are listed betoW. This Is not a contract. This Is an agency disclosure form only. If you desire representation, you must enter into ■ written contract sccarding to state law (a listing contractor a buyer representation contract). Until such time as you choose to enter Into a written contract fior representation, you will be treated as a customer and will not racelye any representation from the broker or salesperson. The broker or salesperson will be acting as a Faclittliftr (see paragraph V below), unless the broker or salesperson is representing another party as desonbecl below. ACKNOWLEDGMENT: 1/We acknowledge that 1/We have been Presented with the below - described options. !/We understand that until UWa have Signed a representation contract, Me are not represented by the broker! salesperson. VWa understand that written consent is required far a dual agency relationship. "IS iS A DISCLOSURE ONLY, NOT A CONTRACT FOR REPRESENTATtow- r C.L. shw."" u... Sellers Broker. A broker who lists a property, ors salesperson who Is licensed to the listing broker, represents the Seller end acts on behalf of the Selier. A Selleea broker owes to the Seiler the fiduciary duties described below.44 The broker must also disclosc to they Buyer material facts as defined In Mlnntisota StMU406, section 82, 197, Subdivision 6, of which the broker Is aware that could advetse{y and aigninciontly affect the Buyer's use or enjoyment of the property. If a broker or salesperson working with a Buyer as a customer is representing the Sailer, he or site must act in the Seller's bast interest and must tell the Seiler any Information disclosed to him or her, except confidential information acquired in a tholi tator relationship (see paragraph V below). In that case, the Buyer w►M not be reprimanded and will not receive advice and counsel from the broker or samepwason. It. Subagent: A broker or salssperson who is working with a Buyer but represents the Seiler. In this case, the Buyer Is the broker's customer and is not represented by that broker. If a broker or salesperson working with a Buyer as a customer is representing the Seller, he or she must act in the Seller's best interest and must tell the Seller any information that is disclosed to him or her. In that case, the Buyer will not be represented and will not receive advice and counsel from the broker or salesperson, Ill. Buyer's Broker. A Buyer may enter Into an agreement for the broker or salesperson to represent and act on behalf of the Buyer. The broker may represent the Buyer only, and not the Seller, even It he or she Is being paid in whole or in pert by the Seller. A Buyer's broker owes to the Buyer the fiduciary dutise described below-l The broker must dmckme to the Buyer material facts as defined in Minnesota Statutes, section 82.187, subdivision 6, of which the broker is aware that could adversely and significantly affect the Buys"& use or enjoyment of the property. if a broker or salesperson working with a Salter as a customer is representing the Buyer, he or she must act in the Buyer's best interest and must tell the Buyer any Information disclosed to him or her, except confidential Information acquired in a facilitator relationship (see Parnaraph V below), In that case, the Seiler will not be represented and will not receive advice and counpal from the broker or salesperson. IV. Dual Agency . Broker Reprosenting bath Seller and Buyer. Dual agency occurs when one broker or salesperson represents both Pardee to a transaction, or when two salespersons licensed to tfie same prokereach represent a party to the transaction. Dual agency requifes the informed consent of all parties, and means that the broker and salesperson owe the same duties to the Seller and the Buyer. This role limits the level of representation the broker and salespersons can provide. and prohiblts them from acting exclusively for either party. In a dual agenoy, COMfIdentiaa l information about price, terms and motivation forpursuing a transACUOn Wig be kept confidential unless one party Instructs the broker or salesperson In writing to disclose specific Information about him or her. Cnher Information will be shared. Dual agents may not advocate for one party to the detriment of the other-P) Within the limitations described above, dual agents owe to boat Seller and Buyer than fiduciary duties described balow. Dual agents must disclose to Buyers material facts as defined in Minnesota Statutes, section 82.197, subdivision 6, of which the broker is aware that could adversely and significantly affect the Buyer's use or enjoyment of the property V Facilitator. A broker or salesperson who performs; services for as Buyer, a Soler, or both but does not represent either In a fiduciary capacity as a Buyer's Broker, Seller's Broker or Duel Agent. THE FACILRATOR 18ROJCEtR OR SALESPERSO N DOES NOT OWE ANY PARTY ANY OF THS MUCIARY DUTIES LISTED BELOW EXCEPT CONFIDENTIALITY, UNLESS THOSE DUTIES ARE iNCLUDQD IN A WRITTEN FACILITATOR SERVICES AGREEMENT. The those duties broker load a owes the duty of Confidentiality to the party but owes no other duty to the party except by law or contained in a written facilitator services agreement if any, In the event a facilitator broker or salesperson, working wttn a Buyer, shows s prop broker or salesperson must act as a Seller's Broker erty listed b the facilitator broker or salesperson, then the facilitator (see paragraph I above), In thee' ant a facilitator broker or salesperson, worsting with a Seiler, accept* a *hawing of the property by a Buyer being represented by the facilitator broker or salesperson, then the faollltator broker or salesperson must act as a Buyer's Broker (see paragraph III above). •" Ttri9 nce Is require* by ilia rn airy transecxlon involvin® their r n esldenee. prOPPrty 00oupled or intended to be o ccu pled by one to four families as Cal The fiduciary duties mentioned above are listed below and have the following meanings: L xaaU • broker /salesperson will act only In cliarg(sy best interast. Ob d'cr, o . - brokermalesperaon will carry out all o►iant((e)' lawful Instruodons. Disclosure _ broker /sgtssperson will disclose to client(s) an material facts of which brokeNmalesperson too knowledge which mi reasonably offset the client's rights and Interests, tp T■Qa11=0tlOirt'L - broker /salesperson will keep dient(s)' confidences unless required by law to disclose specMc Information (such as disclosure of material toots to 64Yers), Raasonaty S _ brokerAintesperson yell use reasonable care in ^ r�laspe'rsPri wlli 0000LI tto dierngs) for &I OII r perfo duties an iv sy a erit(9) niortey and property received as agent, 01 if 90118 (s) decides not to agree to a duel agency reelationship, Sett represan6ed try the brokerhislosperaen. if Buyers) decides not to a9 w duaY give up the Opportunity to sap the property to Buyers purchase prnperbos listed by the breker. A9aftoy r"tionship, BuYer(s) may give up the opportuNty / haatm had vie oibpor/un4y fo AMWOW the "Naboa Ra>aPME&W Pry dalory Pl%%r;d4 r Unbrrn&r/on ">an pogo .? of th/s 16rrtt. MN:AGCYDISG1 (8/02) page t 06/22/2004 07:34 FAX 763 493 5193 JENSEN & SONDRALL. P.A. CNH CH 2011 JUN.16.ZO04 11 =45RM RERLTY HOUSE EDI►qA NO. 374 P.3 /il AGENCY RELATIONSHIPS IN REAL ESTATE TRANSACTIONS M0TICE REGARDING Plpt DAM RY QEEENDER INFORMATION Information regarding the predatory offender registry and persons registered with the predatory offender registry under Minnesota statutes. section 24a,166, ,f lay be obtained by contacting the local low enforcement oftcea in the oommunity Where the PrDPerty iS located. or the Minnesota Department of Corrections at (851) 042_0200. Or from the Department of Corrections web 6lte at www.cornatate.mn , us. 0 MNIAO0YDigC.2 (8102) Page 2 DOUGLAS J. DEBNER` GORDON L. JENSEN' GLEN A. NORTON STEVEN A.SONDRALL STAGY A. WOODS OF COUNSEL LORENS Q.BRYNESTAD 'Real Property Law Specialist Certified By The Minnesota State Bar Association `Admitted in Iowa Attorneys At Law 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443 -1968 TELEPHONE (763) 424 -8811 • TELEFAx (763) 493 -5193 e -mail lawCjensen- sondrall.com VIA FACSIMILE AT (952)844 -1520 AND BY REGULAR MAIL May 29, 2004 Mr. Garth Johnson Realty House 5120 Edina Industrial Blvd. Minneapolis, MN RE: City of New Hope /Acquisition of 9101 36 Avenue North Our File: 99.11311 Dear Mr. Johnson: It was our pleasure to meet with you on May 28, 2004 regarding the City of New Hope's possible acquisition of the property at 9101 36 t1i Avenue North. The meeting was also attended by Kirk McDonald New Hope's Community Development Director and Ken Doresky the Community Development Specialist. This letter will confirm the outcome of the meeting. We advised you at the meeting the New Hope City Council has authorized us to negotiate with you and your client concerning acquiring this property. We also discussed the condition of the property and the likelihood the home on the property cannot be saved and will need to be demolished. We further discussed and agreed the cost to demolish the home may cost $10,000.00 or more and is actually depreciating the market value of the property. Finally, we discussed the underlying land value of the property as vacant. Hennepin County has determined the 2004 land value for taxes payable in 2005 is $46,000.00. Enclosed is a copy of the printout from the County's web site indicating this assessment. There is no current private appraisal of the property and it was decided at this time not to obtain one. With the forgoing facts in mind, we believe the City Council would be willing to purchase this property from your client for $36,000.00. This figure was derived at by subtracting from the County's $46,000.00 2004 land value the minimum $10,000.00 expense for potential demolition costs of the home on the property. If your client is willing to accept this offer, we would like to prepare a purchase agreement and present it to the City Council at their earliest possible meeting. As we informed you, our Council meets every 2 nd and 4"' Mondays of the month. We also discussed the Code Compliance Inspection Report with our Building Inspector. We anticipate this report will be completed the week of May 31 and we will provide you with a copy of said report as soon as possible after it is completed. As a side note, the City's Building Department intends to be very aggressive with code compliance issues on any attempt to rehab the existing home on this property. If the City acquires the property, it will be our intent to demolish the existing home to guarantee the construction of a new home on the property. Jun :8, 2004 Page 2 Please present this offer to your client and advise at your earliest convenience as to their response to our offer. Also, if I have not accurately set out in this letter what we discussed at our meeting or you have any additional comment or questions concerning our offer please don't hesitate to contact me. I will wait to hear from you. Very truly yours, Steven A. Sondrall, City Attorney, City of New Hope JENSEN & SONDRALL, P.A. sas@jensen-sondrall.com Enclosure(s) cc: Kirk McDonald Ken Doresky P:\Attomey\SAS \1 Client Files\2 City of New Hope \99.11311(9101 36th) \ltr to bank's realtor re purchase offer.doc JUN.17.2004 8 :56AM REALTY HOUSE EDINA 1KW� iri, 1sVVT Mr. Garth Johnson Roaky Hmne z 5120 Bdina industrial Blvd. . + • Minneapolis, MN RE: City of New Hope /,Acquisition of 1� 910136 A. veout North Our File: 99.11311 Dear Mr. Johnson; Nil. 335 P.2 /3 is was our pleasure to meat with you on May. , 2004 regarding the City of Naar Hope's possible acquisition of the property at 910136 A tae Noah. In= mee ft was also attended by ICJ& McDonald Now Hope's Community D , ° prat Director and Kett Doraslq the CIonugr pity Development Specialist. This letter 4 fenfirm the, outcome of the meeting. We advised you at the meeting the New Hope CW CounW has authorized us to negotiate with you and your client eomeoming aequiliq this pro rty. We also discussed the condition of the property and the ltlmMood the home on the p orty carrot be saved and wW need to be demolished, We further discussed and agreed the to demolish the home may cost $10,000.00 or more and is Rcmally depreciatiq the market ta" 140 of the property. Finally, we discussed the unde4yi,cg later value of the property as vacant, Hquiepin County has det me neti the 2004 land value for taxes pa Able In 2005 is 1,000.004:; dow, 1A a copy of the printout from the County's web site indicating this assessment. Theze nun curr'oat private appraisal of she property and it was decided at this time not to obtain one. b With the forgoing facts in , we babN the property from your client i6r $36,000.00. Ms County's $46,000.00 2004 Livalue tts , costa of the home on the prop prepalr+e a purchase agreement and pace As we infomed you, our CouncD meets 'Rod Pu"1W vw SPONaust Cadged By TkOMlraAOS SM for RaWatlan 'wdndWd to 10" client h t to tva' .ry 2"'. We also discussed the Code Compliance anticipate this report will be completed firs copy of said report as soon as possible after Depattment intends to be very aggressive w Received Time Jon-15. 11 :16AM q Counail would be willing to purchase this um was derived at by subtracting from the $10,000,00 eVease for potemW demolition vllling to accept this offer, we would like to # Council at their earliest possible meeft. 1 4 Mondays of the month. Report with our Building Inspector. We May 31" and we will provide you urvith e gftted. As a aide note, the City's Building compliance issues on any attempt to rehab IM Cf p i i OF it r , 1 JENSEN & SONDRALL, P.A. Attorneys At Law C FY 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443 -1968 TELEPHONE (763) 424 -8811 * TELEFAx (763) 493 -5193 e -mail law @jensen- sondrall.com DOUGLAS J. DEBNER GORDON L. JENSEN' GLEN A. NORTON STEVEN A. SONDRALL STACY A. WOODS OF COUNSEL LORENs Q.BRYNESTAD 'Real Property Law Specialist Certified By The Minnesota State Bar Association 'Admitted in Iowa VIA FACSIMILE AT (952)844 -1520 AND BY REGULAR MAIL * a�-�, 2004 Mr. Garth Johnson Realty House 5120 Edina Industrial Blvd. Minneapolis, MN RE: City of New Hope /Acquisition of 910136' Avenue North Our File: 99.11311 Dear Mr. Johnson: This letter is in response to your June 17, 2004 fax transmitted to myself and Kirk McDonald regarding your client's counteroffer on the referenced property. The City has authorized me to inform you it will increase its offer to purchase the referenced property to $46,000.00. Basically, this new offer would constitute an "as is" purchase of the property at its 2004 assessed land value of $46,000.00 as determined by Hennepin County for real estate tax purposes. The City will assume the additional cost of demolishing the structure located on the property. This appears to be a fair compromise given the fact it's unlikely a buyer on the open market will be able to rehab the existing home and the demolition cost for the home may well exceed $10,000.00. I recall you suggested at our meeting a buildable lot in this location of New Hope might sell for $55,000.00. As a result, it also seems unlikely this property would sell for more than $46,000.00 if you assume it will be purchased as a "tear down" for new construction based on your own valuation of "construction ready" vacant land and the cost of demolition. Please submit this offer to your client and advise me of their response. I will wait to hear from you. Very truly y r seven A ndrail, City Attorney, City of New Hope JENSEN & SONDRALL P.A. sas @jensen- sondrall.com cc,Lrk McDonald P:\Anorney\SAS \l Client Files \2 City of New Hope \99.11311(9101 36th) \counteroffer Itr bank's reator.doc JENSEN & SONDRALL, P.A. Attorneys At Law 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443 -1968 TELEPHONE (763) 424 -8811 • TELEFAx (763) 493 -5193 e -mail law @jensen- sondrall.com DOUGLASJ.DEBNEW GORDON L. JENSEN' GLEN A. NORTON STEVEN A. SONDRALL STACY A. WOODS OF COUNSEL LORENs Q. BRYNESTAD 'Real Property Law Specialist Certified By The Minnesota State Bar Association 'Admitted in Iowa June 22, 2004 VIA E -MAIL TO lancdonald(aci.new- hope.mn.us AND BY REGULAR U.S. MAIL Kirk McDonald Community Development Director City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 Re: Resolution Approving Purchase Agreement For 910136" Avenue North Our File No.: 99.11311 Dear Kirk: Please find enclosed for consideration at the June 28, 2004 EDA meeting a proposed Resolution Approving Purchase Agreement for 910136' Avenue North. I will also be sending you by fax a purchase agreement prepared by the real estate agent for the owner in connection with this sale which should be attached to the resolution as Exhibit A. As we discussed, I did receive a phone call yesterday from the agent for the owner and was advised the home owner behind this property is also interested in making a purchase offer for this property. The agent advised me he was obligated to speak with this prospective buyer about his proposed offer. As a result, the purchase offer attached to the resolution may be withdrawn depending on the seriousness of this other prospective buyer. Despite this fact, I recommend we put this matter on the agenda for consideration by the EDA and see what happens. I am also providing you with a copy of the letter I sent the owners agent abut the EDA's desire to purchase this property per the attached resolution. My letter clearly indicates we will not get into a bidding struggle with the other buyer, but that we are serious about the removal of the single family structure now on the property. Contact me if you have any other questions or comments about this matter. Ver truly y urs, Steven A. Son rall, Esq. JENSEN & SONDRALL, P.A. sas@jensen-sondrall.com Enclosure(s) cc: Valerie Leone P: \Attorney \SAS \l Client Files \2 City of New Hope \99.11311(9101 36th)Utr K. McDonald re reso. approving PA.doc JUN -17 -2004 10:59 FROM:NEW HOPE PUBLIC WORK 7635926776 TO:7635315136 P.1 x001:zN T00 : 3E)od QOM X18nd 3dOH M3N: CII Xtid WUS0 10T i7M2 -LT -Nl1.0 (0000 "El ur�u VEIT & COMPANY, INC. CON[PAN ES 14000 Veit Place - Rogers, MN 35374 - Phone 763 428 2242 - Fife 761 e28 H3af . thm Iva, June 17, 2004 rvww.ve1zcam Dames, tom EaRbwork Attn: M r. Dale Reed City of New Hope 5500 Iateroational Parkway Underground New HoM MN 55428 udlities Phone: 763 -592 -6777 Gnvkenmertu Fact: 763-592 -6776 For won Re: Douse Demolition @ 910136" Ave. N., New Hope, MN s errioss BUDGET ESTIMATE: ,House Demolition Only BUDGET LUMP SUM: $10,000.00 ALTERNATE #I: Garage & Shed Demolition ADD: S 700.00 ALTERNATE #2: Asbestos Survey / Ron ous Building Mitterinls Impmoon ADD: 5 550.00 INCLUDES: - Disconnect city Sewer & Water at property Lute (Assunawg One Each) 'Well Capping (Assaming One) - Nom - Asbestos Enviromm=1 Hazards — Removal & Disposal - Demolition Permit - Mobilization Supervision - Demolish & Legally Dispose of the Above Noted House - Removal. of House Foundations & Slabs - R-cmoval of Bimminous Driveway Baclsfill & Topsoil EXCLUDES: - Asbestos Survey / Removal - Utility Rerouting -Septic Removal (If Arty) Tree & Brush Removal -Construction & Silt Fencing Bond (Add I - /,) Notes: -This proposal is for budgetary purposes only and should not be considered as a film 1 bard bid- A firm / hard bid can be given upon request. If You have any questions, please call me at 763 - 428 -6743 or 612- 685 -5930 (Mobile) "Best Seri-ice in the Busirlesr- JUN-22-2004 0e:32 FROM:NEW HOPE PUBLIC WORK 7635926776 TO:7635315136 %SG=N T0 0 ; 3qUd N?i OM OIJEnd BdOH M i I 3335 PENNSTEVAMA) Dane: 6-21-04 To: Dodo Reed City Of New Trope ]Phone # 763Jiit67 Fax# 763�§L6776 P. 1/1 Post4t* Fax Note 7671 D-% Pages 10-Z To Fr co'J[6pt. /zl�z CO. 4efeL Phone it Phona 0 Fax y Fax NORT% CRYSM MN 55427 ® PHON& From: Chris Vmau Revift timating lix. phone 9 763.5453557 Fax 0 763-545.5235 Bid for. Demolition C locAW ot 9101 3e Avr-,N. in Now Rope, MN. Did Includw: Dempliti foundations. Bid aho il and haardous maunal Bid Does Not Iddeft- disconnects. - Note: Add $795.00 fo Acceptance ittrrvp' - x and are hereby wm _ Ift an encountered at the i normal building conk Date of Acceptance. - :'Totai Cpst: $"1 R =oval, and'DiVosal-of house, garage, shed, and associated W4 s driveway removal;; , ."Irx removal, bacIdUling, asbestos ve rs, and costs of C;6 permits and fem tx�ftos or hazardous material rt mavA s,. seer. and water we r and water disconnects at the property Un rh ibme prices, specifications and cv, diu'pus are satis Sf It 1. -Mry rdi 1 WV46ftfized to do lhe ka's "' - i fi6d if conjiti6m rui site which arse sub *60 e" tirriknownf & are Whit fi uad trailer a it adj dAmnt to The - contr;�'ci vO be required. 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