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IP #762101 Analytical, Inc. City of New Hope Attn: Amy Baldwin 4401 Xylon Avenue North New Hope, MN 55428 -4898 August 10, 2004 5001 Cedar Lake Road S. St. Louis Park, MN 55416 Office: (952) 252 -0405 Fax: (952) 252 -0407 Re:- Property located at 5540 Winnetka Ave. N., New Hope, MN. Further to our visit to the above referenced property on September 3, 2004 for the purposes of conducting a demolition asbestos inspection, we are prepared to state that there are class one non - friable asbestos containing building materials contained in or on the fabric of the structure. The non - friable asbestos containing materials are: 1. Approximately 400 -440 square feet of asbestos containing floor file and mastic in the NE Bedroom, NW Bedroom, W Bedroom, SW Bedroom and the Hallway. No samples other than from the fabric of the building that is planned for demolition were taken or analyzed and this report relates only to the residential structure located at 5540 Winnetka Ave N. in New Hope, MN. 93 samples of suspect building materials were collected and analyzed in our laboratory by Polarized Light Microscopy. Please see attached notes. During the course of this survey approximately 1 thermostat (possible mercury containing switch), 3 fluorescent lights with associated ballasts, 6 smoke detectors, I dishwasher plus 1 furnace were noted. Full Service Laboratory and on -site Industrial Hygiene Services for the Hazardous Material Abatement Industry From the asbestos stand point the structure is ready to be demolished. If the category 1 non - friable materials are allowed to be left in place for the demolition, the landfill must be made aware that the demolition debris will contain (minimal amounts of) category 1 non - friable asbestos containing material, subject to the MPCA's rules and regulations pertinent to the demolition effort (notifications, etc). Note this survey is not a scope of work or a bidding document. If you have any questions, please call me at the number above. Thank you. Sincerely, Steve Wallinga Angstrom Analytical, Inc. Prepared by: Angstrom Analytical, Inc. ` } 5001 Cedar Lake Road • St. Louis Park, MN 55416 ngstrom ,A,nal"ctatl & Office: (952) 252 -0405 FAX: (952) 252 -0407 w F Environmental Services Building 5540 Winnetka Avenue North PSD = potential for significant damage EA = fitting ND = no asbestos was detected in the sample Name: submitted for analysis Survey Date: 9 -03 -04 PD = potential for damage TREM = Tremolite NS = material not sampled N = little or no damage CHR = Chrysmile NAC = material not accessible Project No. City of New Hope D = moderate damage AM = Amosite < = less than value specified Attn: Amy Baldwin SD = significant damage CROC = Crocidolite * = These samples were not analyzed. These results are inferred a consistent with the analyzed samples in the homogeneous set. 4401 Xylon Avenue North LF = linear foot ACT = Actinolite New HO e, MN 55428 SF = square foot ANTH = Anthophyllite Location Material Identification Sample Number Types of Asbestos % Quantity Units Cond. Damage Potential Response Rating Basement 12" x 12" Floor the 1 to 3 ND - 350 -400 SF N PD 0 Basement 12" x 12" Floor tile 4 to 6 ND - 200 -225 SF N PD 0 Basement 12" x 12" Floor tile 7 to 9 ND - 30 -35 SF N PD 0 Basement Vibration damper 10 to 12 ND - 2 EA N PD 0 Basement Flue patch 13 to 15 ND - 1 SF N PD 0 North east bedroom 9" x 9" Floor the 16 to 18 CH 5 130 -140 SF N PD 1 North east bedroom Floor the mastic 19 to 21 CH 2 -3 130 -140 SF N PD 1 North east bedroom Tar paper layer 22 to 24 ND - 1.30 -140 SF N PD 0 North east bedroom F x F Ceiling tile 25 to 27 ND - 130 -140 SF N PD 0 North west bedroom 9" x 9" Floor tile 28 to 30 CH 4 130 -140 SF N PD 1 North west bedroom Floor tile mastic 31 to 33 CH 2 -3 130 -140 SF N PD 1 North west bedroom Tar paper layer 34 to 36 ND - 130 -140 SF N PD 0 West bedroom 9" x 9" Floor the 37 to 39 CH 5 115 -120 SF N PD 1 West bedroom Floor tile mastic 40 to 42 CH 2 -3 115 -120 SF N PD I West bedroom Tar paper layer 43 to 45 ND - 115 -120 SF N PD 0 West bedroom V x F Ceiling tile Ref. 25 -27 ND - 115 -120 SF N PD 0 Full Service Laboratory and On -Site Industrial Hygiene Services for the Hazardous Material Abatement Industry Page 1 Prepared by: Angstrom Analytical, Inc. 5001 Cedar Lake Road • St. Louis Park, MN 55416 Office: (952) 252 -0405 • FAX: (952) 252 -0407 ' n strum Analytical & Environmental Services Building 5540 Wmnetka Avenue North PSD = potential for significant damage EA = fitting ND = no asbestos was detected in the sample Name: submitted for anal Survey Date: 9 -03 -04 PD = potential for damage TREM = Tremolite NS = material not sampled N = little or no damage CHR = Chrysotile NAC = material not accessible Project No. City of New Hope D = moderate damage AM = Amosite < = less than value specified Attn: Amy Baldwin SD = significant damage CROC = Crocidolite = These samples were not analyzed. These results are inferred a consistent with the analyzed samples in the homogeneous set. 4401 Xylon Avenue North LF = linear foot ACT = Actinolite New Hope, MN 55428 SF = square foot ANTH = Anthophyllite Location Material Identification Sample Number Types of Asbestos % Quantity Units Cond. Damage Potential Response Rating South west bedroom 9" x 9" Floor tile 46 to 48 CH 5 90 -100 SF N PD 1 South west bedroom Floor tile mastic 49 to 51 CH 2 -3 90 -100 SF N PD 1 South west bedroom Tar paper layer 52 to 54 ND - 90 -100 SF N PD 0 North east bathroom 12" x 12" Floor the 55 to 57 ND - 25 -30 SF N PD 0 North east bathroom Ceiling texture 58 to 60 ND - 30 -35 SF N PD 0 West bathroom 12" x 12" Floor tile 61 to 63 ND - 45 -50 SF N PD 0 West bathroom Floor the mastic 64 to 66 ND - 45 -50 SF N PD 0 West bathroom Tar paper layer 67 to 69 ND - 45 -50 SF N PD 0 West bathroom F x F Ceiling file Ref. 25 -27 ND - 45 -50 SF N PD 0 Hallway V x F Ceiling tile Ref. 25 -27 ND - 75 -80 SF N PD 0 Hallway 9" x 9" Floor the Ref. 16 -18 CH 5 75 -80 SF N PD 1 Hallway Floor file mastic Ref. 19 -21 CH 2 -3 75 -80 SF N PD 1 Hallway Tar paper layer Ref. 22 -24 ND - 75 -80 SF N PD 0 Living room Ceiling texture 70 to 72 ND - 300 -325 SF N PD 0 Kitchen Linoleum, top layer 73 to 75 ND - 180 -200 SF N PD 0 Kitchen Linoleum, bottom layer 76 to 78 ND - 180 -200 SF N PD 0 Full Service Laboratory and On -Site Industrial Hygiene Services for the Hazardous Material Abatement Industry Page 2 Prepared by: Angstrom Analytical, Inc. 5001 Cedar Lake Road • St. Louis Park, MN 55416 Office: (952) 252 -0405 • FAX: (952) 252 -0407 11 Strom Analytical & j - * Environmental Services Building 5540 Winnetka Avenue North PSD = potential for significant damage EA = fitting ND = no asbestos was detected in the sample Name: submitted for analysis Survey Date: 9 -03 -04 PD = potential for damage TREM = Tremolite NS = material not sampled N = little or no damage CHR = Chrysotile NAC = material not accessible Project No. City of New Dope D = moderate damage AM = Amosite < = less than value specified Attn: Amy Baldwin SD = significant damage CROC = Crocidolite = These samples were not analyzed. These results are inferred a consistent with the analyzed samples in the homogeneous set. 4401 Xylon Avenue North LF = linear foot ACT = Actinolite New Ho MN 55428 SF = square foot ANTH = Anthophyllite Location Material Identification Sample Number Types of Asbestos % Quantity Units Cond. Damage Potential Response Rating Kitchen F x 1' Ceiling the Ref. 25 -27 ND - 180 -200 SF N PD 0 Kitchen Sink undercoat 79 to 81 ND - 1 EA N PD 0 Throughout Sheetrock, tape, compound 82 to 84 ND - 250 -300 SF N PD 0 Throughout Window glaze 85 to 87 ND - 12 -15 EA N PD 0 Exterior Tar paper wrap 88 to 90 ND - 2000 -2100 SF N PD 0 Roof Shingles, tar paper 91 to 93 ND - 2700 -3000 SF N PD 0 r-ull Service Laooratory and Un -Site Industrial Hygiene Services for the Hazardous Material Abatement Industry Page 3 C to A� (tQ W .'S UQ K O A7 n n h A R N z�� R Qo y p �'Z n R O p Q k Q, Q O O O n Ra � � • 0 r' Q) ,Ong ti p pQ p 2 O3 ti R o'rs cz- - cz- z 0 O y R O ;z z 0 x ti oa. 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T R�hZz R C Op t0 R O ^ O N a� Z cr . n ' N Ooo , ' ; V Q b R O R r - O � O n � b � C-4 rD O a" A � p0•= "S CD W Ul N O �t D O M � O b M C CD oo O 0 00 N� r H CJ1 M � 1� r ^ o � l 1 W o VI [ 1- d MM H X =t fA O 0r� tD 0' t09 N N N Q NN�t b o Z m �, o ° ,�t°�a . wN O \ngstrom Analytical LU CLIENT Project Location Results Via Data Entry Approved City of New Hope 5540 Winnetka Ave N Report Project # Analyst ga CLIENT ADDRESS Attn: Amy Baldwin Client/Receiving # 4401 Xyl n Ave N /— Date Recd _ Analyzed Assigned /Lab # D� -- 0 q 7 New Hope, MN 55428 Fax # 763 - 531 Date Mailed Phoned -5136 1 Angstrom Analytical, Inc. - 5001 Cedar Lake Road - St. Louis Park, MN 55416 - AA/PLM /1 ngstrom Analytical A U, J CLIENT Project Location Results Via Data Entry –0 Approved B City of New Hope 5540 Winnetka Ave N Report Project# Analyst Date Rec'd 4 ' Analyzed CLIENT ADDRESS Attn: Amy Baldwin 4401 Xylon Ave N Client/Receiving # Assigned/Lab # 0'+ - 09 New Hope, IVIN 55428 Fax # 763-531-5136 Date Mailed Phoned Angstrom Analytical, Inc. - 5001 Cedar Lake Road - St. Louis Park, IVIN 55416 o AA/PLM/1 , �ngstrom Analytical O �o is � e x f x l an € x, Angstrom Analytical, Inc. • 5001 Cedar Lake Road • St. Louis Park, MN 55416 • AA/PLM /1 ngstrorn Analytical V 4"J IT, CLIENT Project Location Results Via q -1 —CX Data Entry Approved B City of New Hope 5540 Winnetka Ave N Report Project # Sf Analyst Ci q 1 7-6 CLIENT ADDRESS Attn: Amy Baldwin Client/Receiving # 3 to Date Rec'd Analyzed 4401 Xylon Ave N Assigned/Lab # New Hope, MN 55428 Fax # 763-531-5136 Date Mailed Phoned Angstrom Analytical, Inc. • 5001 Cedar Lake Road • St. Louis Park, IVIN 55416 • AA/PLM/1 ngstrom Analytical 0 �k C, "J 0 N LJ1 111 - .111 • ki A CLIENT Project Location Results Via q Data Entry Approved B City of New Hope 5540 Winnetka Ave N Report 7V car Project# Analyst CLIENT ADDRESS Client/Receiving # Attn: Amy Baldwin Date Recd I' -3- 0 Analyzed 4401 Xylon Ave N Assigned/Lab # New Hope, MN 55428 Date Mailed Phoned Fax # 763-531-5136 0 q I Angstrom Analytical, Inc. • 5001 Cedar Lake Road • St. Louis Park, MN 55416 • AA/PLM/1 U ngstrom Analytical 1. 0 0 11 : A 0 EORLZ�� • I A A CLIENT Project Location Results Via - 3 '-0c7' Data Entry Approved City of New Hope 5540 Winnetka Ave N Report Project ew-.�if�5 — Analyst CLIENT ADDRESS Client/Receiving # Attn: Amy Baldwin - (" 3q -0 Date f-34_ Analyzed 4401 Xylon Ave N Assigned/Lab # o 4- - oc( New Hope, MN 55428 Fax # 763-531-5136 Date Mailed Phoned Angstrom Analytical, Inc. - 5001 Cedar Lake Road - St. Louis Park, IVIN 55416 0 AA/PLM/1 o � \ngstrom c 4 Analytical ■ • ON CLIENT Project Location Results Via Data Entry Approved City of New Hope 5540 Winnetka Ave N Report Project # 'k Analyst i °d Date Recd �` Analyzed Date Mailed Phoned CLIENT ADDRESS Attn: Amy Baldwin 4401 Xylon Ave N New Hope, MN 55428 Fax # 763- 531 -5136 Client/Receiving # , Assigned /Lab # Angstrom Analytical, Inc. • 5001 Cedar Lake Road • St. Louis Park, MN 55416 • AA/PLM /1 o � 0 \ngstrom Analytical { A CLIENT Project Location Results Via Data Entry Approved B . . City of New Hope 5540 Winnetka Ave N Report ' Project # ��= Analyst 4 � CLIENT ADDRESS Attn: Amy Baldwin Client/Receiving # Date Recd - - 3` Analyzed 7 4401 Xylon Ave N Assigned /Lab # o �'"` New Hope, MN 55428 Fax # 763- 531 -5136 Date Mailed Phoned Angstrom Analytical, Inc. • 5001 Cedar Lake Road • St. Louis Park, MN 55416 • AA/PLM /1 ., �ngstrom Analytical 4� P _% r • • • • CLIENT Project Location Results Via q Data Entry ( Approved B City of New Hope 5540 Winnetka Ave N Report l�yl7 Project # Analyst Date Rec'd Analyzed CLIENT ADDRESS Attn: Amy Baldwin 4401 Xylon Ave N Client/Receiving # 7 Assigned /Lab # q- `o i New Hope, MN 55428 Fax # 763 - 531 -5136 Date Mailed Phoned Angstrom Analytical, Inc. • 5001 Cedar Lake Road • St. Louis Park, MN 55416 • AA/PLM /1 ngstrorn Analytical 10 c - . . . .... �A j' CLIENT Project Location Results Via Data Entry q - 3 -0- q - Approved By City of New Hope 5540 Winnetka Ave N Report Project# Analystna�z —4 Date Rec'd T7 Analyzed Date Mailed Phoned CLIENT ADDRESS Attn: Amy Baldwin 4401 Xylon Ave N New Hope, MN 55428 Fax # 763-531-5136 Client/Receiving # � L Assigned/Lab # - 0-� 04- Angstrom Analytical, Inc. - 5001 Cedar Lake Road - St. Louis Park, IVIN 55416 - AA/PLM/1 O ngstrom Analytical A CLIENT Project Location Results Via Data Entry q Approved B, & City of New Hope 5540 Winnetka Ave N Report Project# 001 Analyst 2� Date Rec'd Analyzed Date Mailed Phoned CLIENT ADDRESS Attn: Amy Baldwin 4401 Xylon Ave N New Hope, MN 55428 Fax # 763-531-6136 Client/Receiving # C Assigned/Lab # Angstrom Analytical, Inc. • 5001 Cedar Lake Road • St. Louis Park, IVIN 55416 • AA/PLM/1 September 3, 2004 City of New Hope Attn: Amy Baldwin 4401 Xylon Avenue North New Hope, Minnesota 55428 -4898 Re: - Limited Scope Lead -Based Paint Testing Report This report provides the results of a limited scope lead -based paint testing conducted on September 3, 2004 at 5540 Winnetka Ave. N. in New Hope, Minnesota. Angstrom Analytical, Inc. was authorized by you to conduct field screening of suspect lead -based paint using a field portable x -ray fluorescence (XRF) analyzer, and to collect and analyze paint chip samples, as necessary, to achieve conclusive results. Results Results of XRF and laboratory analysis are summarized in the following report which lists all components exceeding Department of Housing and Urban Development (HUD) thresholds (see remarks) for lead -based paint. Complete XRF field data showing all sample results are attached. Methodology Testing was accomplished using a Niton XL -309 (300 Series). This instrument is a portable, non - destructive, in -situ testing and measurement instrument that renders an average precision of +/- 0.3 milligrams per square centimeter (mg /cm depending upon the length of time the sample point is tested. Specific precision limits are established by the National Institute of Standards and Technology (NIST). This instrument contains a radioactive isotope, Cadmium -109, with a maximum activity of 10 m Ci. The manufacturer of the sealed source is Niton Corporation, the source model is XFB3205. This instrument is registered with the Minnesota Department of Health and is operated by licensed lead inspectors. Sampling protocols recommended in HUD's "Lead -Based Paint: Interim Guidelines for Hazard Identification and Abatement in Public and Indian Housing." May 1991 revision, were used to determine the presence or absence of lead -based paint. Where conclusive results were not obtained by XRF testing, confirmatory paint chip samples were or can be collected for laboratory analysis. Full Service Laboratory and on -site Industrial Hygiene Services for the Hazardous Material Abatement Industry Remarks The Lead -Based Paint Poisoning Prevention Act (LBPPA) has established an action level for public housing. Under the statute, lead -based paint hazards equal to or greater than 1.0 mg /cm or 0.5 percent by weight must be abated. Standards for private or commercial housing vary by locality. The following components tested positive for lead based paint and were in either fair or poor condition: House and Garaee Exterior • White Trim and Soffit • Red Siding • White Window Components • White Door Threshold A total of 30 sample locations were taken throughout the house located at 5540 Winnetka Ave. N. Representatives of Angstrom Analytical, Inc conducted all sampling. If you have any questions or need further assistance, please call me at the number above. Sincerely, Steve Wallinga Angstrom Analytical, Inc. Serial #XL309- U3338NR5517 Site: Date: 9/3/2004 Paint Page 1 No XLNo FIr Side Room Source Sub Feat Cud Clr Note Result Pbl ± Prec 2 2 Calibrate POS 1.05 ± 0.22 3 3 Calibrate POS 1.05 ± 0.22 4 4 Calibrate NEG 0.84 ± 0.15 5 5 Calibrate POS 1.16 ± 0.26 6 6 Outside Ext Wall Wood Trim Lwr White POS 2.45 ± 0.72 7 7 Outside Ext Wall Wood Trim Lwr Poor White POS 1.88 ± 0.54 8 8 Outside Ext Wall Wood Fair White NEG 0.35 ± 0.29 9 9 Outside Ext Wall Wood Fair Red NEG 0.20 ± 0.15 10 10 Outside Wood Trim Poor White POS 1.46 ± 0.34 11 11 Outside Wood Trim Poor White NEG 0.34 ± 0.27 12 12 Outside Door Wood Threshold Poor White POS 0.01 ± 0.02 13 13 Outside Ext Wall Wood Trim Lwr Poor White NEG 0.00 ± 0.08 14 14 Outside Door Wood Ovrhd Door Fair White NEG 0.01± 0.13 15 15 Outside Garage Wood Wall Fair Red POS 1.99 ± 0.63 16 16 Outside Ext Wall Wood Trim Lwr Poor Red NEG 0.43 ± 0.10 17 17 Outside Garage Wood Wall Poor Red POS 2.14 ± 0.58 18 18 Outside Ext Wall Wood Trim Lwr Poor White POS 0.98 ± 0.11 19 19 Outside House Wood Wall Fair Red POS 1.69 ± 0.71 20 20 Outside Window Wood Stool Poor White POS 0.04 ± 0.02 21 21 Outside Window Wood Stops Poor White POS 0.59 ± 0.12 22 22 Window Wood Sash Ext Poor White NEG 0.90 ± 0.14 23 23 Room 1 Wall Drywall Fair White NEG 0.00 ± 0.02 24 24 Room 4 Window Wood Sash Poor Brown NEG 0.02 ± 0.12 25 25 Room 4 Window Wood Apron Poor Brown NEG 0.00 ± 0.02 26 26 Window Wood Trough Poor White NEG 0.11 ± 0.12 27 27 Window Wood Trough Poor White POS 0.10 ± 0.05 28 28 Cellar Window Wood Celwin Ssh Fair White NEG 0.12 ± 0.1.4 29 29 Cellar Window Wood Celwin Jmb Fair White NEG 0.00 ± 0.08 30 30 Cellar Door Wood Jamb Poor White NEG 0.18 ± 0.11 Film WARRANTY DEED Individual(s) to Corporation, Partnership or Limited Liability Company STATE DEED TAX DUE HEREON: $765.00 Date: August , 2004. FOR VALUABLE CONSTDFRATION, Richard S. Suckv and Barbara Suckv, husband and wife, Grantors, hereby convey and warrant to the Economic Development Authority in and for the City of New Hope, a public body corporate and politic under the laws of the State of Minnesota, Grantee, real property in Hennepin County, Minnesota, described as follows: That part of the West 10 acres of the Southwest Quarter of the Southwest Quarter of Section 5, Township 118, Range 21, Hennepin County, Minnesota, described as follows: Commencing at a point on the West line of the said West 10 acres of the Southwest Quarter of the Southwest Quarter, distant 1100 feet North from the Southwest comer thereof; thence North along said West line, 90 feet; thence East parallel with the South line thereof 160 feet; thence South parallel with the West line thereof 90 feet; thence West parallel with the South line thereof, 160 feet to the point of beginning, now being a part of Lot 38, Auditor's Subdivision Number 226, Hennepin County, Minnesota, except that part which lies Westerly of the following described line: Beginning at a point 40.0 feet East of the West line of said Section and 19.44 feet South of the South line of said tract, as measured along the West line thereof; thence run Northerly to a point distant 13.0 feet East of the West line of said tract and 40.56 feet North of the South line of said tract, as measured along the West line thereof; thence run North parallel with the West line of said tract to the North line of said tract and there terminating; subject to and together with easements, restrictions and covenants of record; together with all hereditaments and appurtenances belonging thereto. Check box if applicable: 9 The seller certifies that the seller does not know of any wells on the described real property. A well disclosure certificate accompanies this document. 9 1 am familiar with the property described in this instrument and I certifv that the status and number of wells on the described real property have not changed si e the last previously filed well disclosure certificate. Richard S. Sucky arbara Sucky STATE OF MINNESOTA } COUNTY OF HENNEPIN ss. r The foregoing instrument was acknowledged before me this _ day of August, 2004, by Richard S. Sucky and Barbara Sucky, husband and wife, Grantors. (Notarial Stamp or Seal) 19 • e <� "�� S TEM A. SDNDRAII M WtYPl=- fMNNESOTA 1*01 � 10 I Mn.31,2005 Notary Public a Check here if part or all of the land is Registered (Torrens) 4 THIS INSTRUMENT DRAFTED BY: Jensen & Sondrall,P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 (763) 424 -8811 Tax Statements for the real property described in this instrument should be sent to: The Economic Development Authority in and for the City of New Hope 4401 Xylon Avenue North New Hope, Minnesota 55401 P.UA-- ,°JL®.I -Chm F.Id—a CNH\99- 11302+99.11302-004 -WDAd STATE OF MINNESOTA COUNTY OF HENNEPIN ss. AFFIDAVIT REGARDING SELLERS Richard S. Sucky and Barbara Sucky, husband and wife, being first duly sworn, on oath say that: 1. They are the persons named as Grantors in the document dated August , 2004, and filed for record . 2004, as Document No. in the office of the Countv Recorder of Hennepin County, Minnesota. 2. Said persons are of legal age and under no legal disability and for the last ten (10) years have resided at: 5540 Winnetka Avenue North, New Hope, Minnesota 55428. 3. The social security numbers of said persons are: Richard S. Sucky Barbara Sucky 4. There have been no: 6. 7. 8. 9. 10. 11. a. Bankruptcy, divorce or dissolution proceedings involving said persons during the time period in which said persons have had any interest in the premises described in the above document ( "Premises "). b. Unsatisfied judgments of record against said persons, nor any actions pending in any courts which affect the Premises. C. Tax liens filed against said persons. Any bankruptcy, divorce or dissolution proceedings of record against parties with the same or similar names, during the time period in which the above -named persons have had any interest in the Premises, are not against the above -named persons. Any judgments or tax liens of record against parties with the same or similar names are not against the above -named persons. There has been no labor or materials furnished to the Premises for which payment has not been made. There are no unrecorded contracts, leases, easements, or other agreements or interests relating to the Premises of which Affiants have knowledge. There are no persons in possession of any portion of the Premises other than pursuant to a recorded document. There are no encroachments or boundary line questions affecting the Premises of which Affiants have knowledge. The persons have not received medical assistance from the State of Minnesota or any county medical assistance agency. 0 12. This Affidavit is made as respects the following described property: That part of the West 10 acres of the Southwest Quarter of the Southwest Quarter of Section 5, Township 118, Range 21, Hennepin County, Minnesota, described as follows: Commencing at a point on the West line of the said West 10 acres of the Southwest Quarter of the Southwest Quarter, distant 1100 feet North from the Southwest comer thereof; thence North along said West line, 90 feet; thence East parallel with the South line thereof 160 feet; thence South parallel with the West line thereof 90 feet; thence West parallel with the South line thereof, 160 feet to the point of beginning, now being a part of Lot 38, Auditor's Subdivision Number 226, Hennepin County, Minnesota, except that part which lies Westerly of the following described line: Beginning at a point 40.0 feet East of the West line of said Section and 19.44 feet South of the South line of said tract, as measured along the West line thereof-, thence run Northerly to a point distant 13.0 feet East of the West line of said tract and 40.56 feet North of the South line of said tract, as measured along the West line thereof; thence run North parallel with the West line of said tract to the North line of said tract and there terminating. Affiants know the matters herein stated are true and make this Affidavit for the purpose of inducing the passing of title to the Premises. Ri and S. Sucky w arbara Sucky Subscribed and sworn to before me this CO day ® olarial Stam o sear of A ust, 20 87M A SDNDRALL 19 *00®LE I �. MJ91.2005 Notary Public Drafted By: JENSEN & SONDRALL, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 (763) 424 -8811 P.'.Atto eyJL➢ \I- Client Folders:CW99- 11302`:99.11302-005 - Sellers Afffd —I(D2) doc (99.11302) DATE: August 6, 2004 PROPERTY ADDRESS:. 5540 Winnetka Avenue North New Hope, Minnesota 55428 `SELLERS: > Richard S. Sucky NEEMW Barbara S. Sucky PURCHASER: Economic Development Authority in and for the City of New Hopf TIN: 41- 6008870 TERMS: Total Purchase Price: Earnest Money: $0.00 Cash at Closing: $225,000.00 $225,000.00 SELLERS' COSTS: *Real Estate Tax Adjustment: $217.55 $217.55 PURCHASER'S COSTS: ' Conservation Fee: $5.00 Recording Fee for Warranty Deed with $20.50 Recording Fee for Well Disclosure Certificate: State Deed Tax: Real Estate Tax Adjustment: CASH RECEIVED: Cash at Closing: Purchaser's Costs: Hennepin County Treasurer (State Deed Tax): Hennepin County Recorder: Richard S. Sucky and Barbara S. Suckv: $30.00 $765.00 < $217.55 > $225,000.00 $602.95 $225, $765.00 $55.50 $224,782.45 $225,602.95 $225,000.00 $225,000.00 1 Real Estate Tax Ad 'ustment Sellers' Obligation: 219/366` Base Tax for 2004: $1,242.24 Assessments Certified to Taxes: + $26.70 $1,268.94 Paid by Seller: G $1,051.39 > $217.55 Due from Sellers: Purchaser's Obligation: 147/366" Base Tax for 2004: $833.84 SELLERS: Richard S. Sucky Barbara S. Sucky E'i1Z� a THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR =OF E By: Its: P: \Attomey\1LB \1- C1ient Folders\CNH \99- 11302 \9911302 -007- Closing Stmt(W).doc MINNESOTA DEPARTMENT OF HEALTH I MDH USE ONLY Well Management Section, P.O. Box 64975, St. Paul, Minnesota 55164-0975 (651) 215-0819 or 1-800-383-9808 WELL DISCLOSURE CERTIFICATE PLEASE TYPE OR PRINT ALL INFORMATION Person filing deed must attach $30 fee Dayable to the rA)Ljntv rprnrripr A. PROPERTY DESCRIPTION Attach a legal description of the property. COUNTY LOT NUMBER BLOCK NUMBER ADDITION NAME HENNEPIN SEE ATTACHED DESCRIPTION STREET ADDRESS 5540 Winnetka Avenue North CITY STATE I ZIP CODE P.I.N. (OPTIONAL New Hope IVIN 155428 05-118-21-33-0007 B. PROPERTY BUYER MAILING ADDRESS AFTER CLOSING FIRST I MIDDLE I LAST COMPANY NAME (IF APPLICABLE) Economic Development Authority in and for the City of New Hope ADDRESS 4401 Xylon Avenue North ADDRESS CITY IMN STATE ZIP — F — TELEPHONE New Hope 55428 (763) 531-5100 C. CERTIFICATION BY SELLER I certify that the information provided on this certificate is accurate and complete to the best of my knowledge. Name of Seller (Please Print) SignOure of Seller or Desi nate Re res tive of Seller Date D. CERTIFICATION BY BUYER The buyer or person authorized to act on behalf of the buyer, must sign a Well Disclosure Certificate for all deeds given in fulfillment of a contract for deed if there is a well on the property. In the absence of a seller's signature, the buyer, or person authorized to act on behalf of the buyer may sign this well certificate. No signature is required by the buyer if the seller has signed above. Based on disclosure information provided to me by the seller or other available information, I certify that the information on this certificate is accurate and complete to the best of my knowledge. Signature of Buyer or Designated Re2resentative of Buyer Date IMPORTANT NOTE: The Minnesota Department of Health (MDH) will follow-up with the property buyer regarding any wells disclosed as not in use. If a well is not in use, the property owner must either return the well to use, have the well sealed by a licensed well contractor, or obtain an annual maintenance permit from the MDH for $125. A copy of this well disclosure certificate should be provided to the property buyer. 7/02 MINNESOTA DEPARTMENT OF HEALTH WELL DISCLOSURE CERTIFICATE PLEASE TYPE OR PRINT ALL INFORMATION Fill out a separate well information page if more than three wells are located on the property. WELL #1 COUNTY QUARTER (OR GOVERNMENT LOT) SECTION NUMBER TOWNSHIP NUMBER RANGE NUMBER HENNEPIN Southwest Quarter of Southwest 15 1 118 121 Quarter WELL STATUS (Check only one box) i YEAR WELL WAS SEALED OR WELL IS: ❑ IN USE (1) ® NOT IN USE (2) ❑ SEALED BY LICENSED WELL CONTRACTOR (3) SEALING RECORD NUMBER (IF (Call MDH to verify sealing record is on file.) KNOWN) If the well has been sealed by someone other than a licensed well contractor or a licensed well sealing NAME OF LICENSED contractor, check the well status as not in use. CONTRACTOR WELL #2 COUNTY QUARTER (OR GOVERNMENT LOT) SECTION NUMBER TOWNSHIP NUMBER RANGE NUMBER WELL STATUS (Check only one box) WELL IS: ❑ IN USE (1) ❑ NOT IN USE (2) ❑ SEALED BY LICENSED WELL CONTRACTOR (3) (Call MDH to verify sealing record is on file.) YEAR WELL WAS SEALED OR SEALING RECORD NUMBER (IF KNOWN) If the well has been sealed by someone other than a licensed well contractor or a licensed well sealing contractor, check the well status as not in use. NAME OF LICENSED WELL CONTRACTOR WELL #3 COUNTY QUARTER (OR GOVERNMENT LOT) SECTION NUMBER TOWNSHIP NUMBER I RANGE NUMBER I WELL STATUS (Check only one box) YEAR WELL WAS SEALED OR WELL IS: ❑ IN USE (1) ❑ NOT IN USE (2) ❑ SEALED BY LICENSED WELL CONTRACTOR (3) SEALING RECORD NUMBER (IF (Call MDH to verify sealing record is on file.) I KNOWN) If the well has been sealed by someone other than a licensed well contractor or a licensed well sealing NAME OF LICENS contractor, check the well status as not in use. CONTRACTOR SKETCH MAP - Sketch the location of the well(s) and include estimated distances from roads, streets and buildings. IF MORE THAN ONE WELL ON PROPERTY, USE THE WELL LOCATION NUMBER ABOVE TO IDENTIFY EACH WELL. The location of the well(s) must be provided. If the location of a well is not known, have the well located by a person qualified to locate wells, such as a licensed contractor. L C ,,,, d-r-c Information nroviriari nn this form is l x To request this document in another format call (651) 215-0811 or TDD (651) 215-0707 or greater Minnesota through Minnesota Relay Service at 1- 800 - 627 -3529 and ask for (651) 215 -0811. Visit our web site at: www. health.state.m n. us /div /well s /disclosures/ HE- 01387 -09 IC #140 -0385 7/02 INSTRUCTIONS FOR COMPLETING THE WELL DISCLOSURE CERTIFICATE A $30 FEE MUST BE ATTACHED TO THIS FORM WHEN SUBMITTING THIS FORM TO THE COUNTY RECORDER'S OFFICE. THE FEE IS TO BE PAID BY THE BUYER OR PERSON FILING THE DEED. PLEASE MAKE THE CHECK PAYABLE TO THE COUNTY RECORDER. BUYER, SELLER, AND PROPERTY INFORMATION A. PROPERTY DESCRIPTION - provide the county, house number, street name, street type, street direction (if applicable), city, and zip code; and, if applicable, the lot number, block number, and addition name (for example, White Pine Addition, block 4, lot 12). Attach a complete legal description of the property. B. PROPERTY BUYER MAILING ADDRESS AFTER CLOSING - Provide the buyer's full name (or company name, if buyer is a company), full address, and phone number (including area code). Be sure to include a complete mailing address. If the property is jointly owned, provide the name of a contact person. C. /D. CERTIFICATION BY SELLER OR BUYER - Provide name of seller in space provided. Also, the seller (or designated representative) should sign this certificate before it is submitted to the county recorder's office. If the seller is unable to sign the document, the buyer (or designated representative) may sign the certificate before it is submitted to the county recorder's office. There must be at least one signature on the certificate. Where deeds are given in fulfillment of a CONTRACT FOR DEED the well disclosure certificate MUST be signed by the BUYER or the person authorized to act on behalf of the buyer. WELL INFORMATION Provide the following information for EACH WELL BEING DISCLOSED. WELL LOCATION Provide the county name, quartile (one quarter section is required) or government lot, section number, township number, and range number. WELL STATUS INFORMATION Indicate the status of each well. CHECK ONLY ONE BOX, In Use - A well is "in use" if the well is operated on a daily, regular, or seasonal basis. A well in use includes a well that operates for the purpose of irrigation, fire protection, or emergency pumping. Not In Use - A well is "not in use" if the well does not meet the definition of "in use" above and has not been sealed by a licensed well contractor. Sealed - A well is "sealed" if a licensed contractor has completely filled a well by pumping grout material throughout the entire bore hole after removal of any obstructions from the well. A Well and Boring Sealing Record must be on file with the Minnesota Department of Health (MDH). Contact the MDH to verify if a sealing record is on file. A well is "capped" if it has a metal or plastic cap or cover which is threaded, bolted, or welded into the top of the well to prevent entry into the well. A "capped" well is not a "sealed" well. If the well described has been sealed by a licensed well contractor, indicate the year when the well was sealed, if known. If the well is "not in use" and has not been sealed by a licensed well contractor or a licensed well sealing contractor, check the well status as "not in use ". SKETCH MAP Complete the sketch map as instructed on the Well Disclosure Certificate. The locations of each well must be indicated. NOTE: If a well is not in use it must be SEALED by a licensed well contractor or a well owner must obtain a MAINTENANCE PERMIT from the Minnesota Department of Health and pay an annual maintenance fee of $125. Maintenance permits are not transferable. If a well is operable and properly maintained, a maintenance permit is not required If you have any questions, please contact the Minnesota Department of Health, Well Management Section at (651) 215- 0819 (metropolitan Minneapolis -St. Paul) or 1- 800 - 383 -9808 (greater Minnesota). Visit our web site at: www. health.state.mn.us /div /eh /wells /disclosures/ 7/02 SCHEDULE "A" Legal Description That part of the West 10 acres of the Southwest Quarter of the Southwest Quarter of Section 5, Township 118, Range 21, Hennepin County, Minnesota, described as follows: Commencing at a point on the West line of the said West 10 acres of the Southwest Quarter of the Southwest Quarter, distant 1100 feet North from the Southwest corner thereof; thence North along said West line, 90 feet; thence East parallel with the South line thereof 160 feet; thence South parallel with the West line thereof 90 feet; thence West parallel with the South line thereof, 160 feet to the point of beginning, now being a part of Lot 38, Auditor's Subdivision Number 226, Hennepin County, Minnesota, except that part which lies Westerly of the following described line: Beginning at a point 40.0 feet East of the West line of said Section and 19.44 feet South of the South line of said tract, as measured along the West line thereof; thence run Northerly to a point distant 13.0 feet East of the West line of said tract and 40.56 feet North of the South line of said tract, as measured along the West line thereof; thence run North parallel with the West line of said tract to the North line of said tract and there terminating. P:Wttorney\JLB\1- Client Folders \CNH \99 - 11302\99.11302 -006 -Well Disclosure Cert.doc USE AND ACCESS AGREEMENT FOR 5540 Winnetka Avenue North This Access Agreement (the "Agreement ") is dated effective the 6' day of August, 2004, and is entered into by and between Richard S. Sucky and Barbara. Sucky, husband and wife ( "Sellers ") and the Economic Development Authority in and for the City of New Hope, a Minnesota municipal corporation ( "EDA ") contemporaneously with the closing of the sale of property located at 5540 Winnetka Avenue North, New Hope, Minnesota (the "Property ") from Sellers to EDA on August 6, 2004 ( "Closing Date "). WHEREAS, Sellers have not been able to vacate the Property or fully remove their personal effects from the Property and have requested permission from the EDA to remain living at the Property and to remove their personal effects from the Property after the Closing Date; and WHEREAS, as of the Closing Date, title to the Property transferred to the EDA, which includes the right of possession; and WHEREAS, EDA is willing to permit Sellers access to reside at the Property following the Closing Date to allow Sellers to remove their personal property from the Property according to the terms and conditions contained herein. NOW, THEREFORE, as an accommodation to Sellers, EDA is willing to grant a limited right of access to reside at and use the Property at 5540 Winnetka Avenue North as specified herein: 1. EDA agrees to allow Sellers access to reside at the Property following the Closing Date on August 6, 2004 for a period of twenty-five (25) days, terminating at 11:59 p.m. on August 31 2004, and to permit Sellers' removal of personal property from the Property. 2. Sellers have retained a key to the Property and are authorized to utilize the key for a period terminating at 11:59 p.m. on August 31, 2004. Sellers shall not conduct any activity on the Property inconsistent with a residential use during the term of this Agreement. Further, Sellers will not allow any other person to reside at the Property who was not already a resident of the Property as of the effective date of this Agreement. 3. Any personal property remaining on the Property after 11:59 p.m. on August 31, 2004, will be considered abandoned by Sellers and may be disposed of by the EDA or the City of New Hope. Sellers' agree to reimburse the EDA or City for any costs incurred by the EDA or the City of New Hope to remove and dispose of the personal property abandoned by Seller, ",_V" } .,3 i�a .vsr j �*i�t i I /fir - L'J °/ r 3 S �� ivZ�, n �j•� , �-S 4. This Agreement grants a limited contractual right of entry to Sellers and is not to be deemed in any way to create a leasehold estate. Sellers' acknowledge and agree time is c of the essence concerning the EDA's possession of the property by 11:59 p.m. on August 31, 2004. Sellers agree they will vacate the Property as of 11:59 p.m. on August 31, 2004 and Sellers further acknowledge and agree they have waived any and all vacate notice requirements imposed on the EDA by any law necessary to enforce removal of Sellers by the vacate date. In the event the Sellers have failed to vacate the Property on or before 11:59 p.m. on August 31, 2004 this agreement shall constitute an Order Compelling Delivery and Possession of the Property PropeLty to the EDA per Minn. Stat. §117.043 and it shall also constitute a WRIT OF RECOVERY OF PREMISES AND ORDER TO VACATE per Minn. Stat §504B.365. Sellers agree they have waived their rights to any further notice or hearing as provided by Minn. Stat. §117.043 and agree Petitioner is entitled to immediate possession of the Property as of 11:59 p.m. on August 31, 2004 without any delay of enforcement. Sellers also acknowledge and agree they will pay any costs, including reasonable attorney fees, incurred by the EDA to enforce the removal of Sellers from the Property after 11:59 p.m. on August 31, 2004. 5. Sellers shall enter upon and use the Property with reasonable care and without damage to the Property. Sellers will not use the Property in any manner inconsistent with the residential nature of the Property or in violation of any City or State building, fire or zoning code. 6. EDA waives all claims for trespass arising from Sellers' entry and use on the Property for the purposes stated herein. 7. Any use of the Property by Sellers for any reason other than for the purposes stated in this Agreement shall be deemed a violation of this Agreement. Sellers acknowledge and agree they violate this Agreement by committing any of the following acts during the term of this Agreement: a) Permit another person to reside at the Property who is not a resident as of the effective date of this Agreement, b) Use the Property inconsistent with Sellers current residential use (including their permitted home occupation) of the property, — c) Use the Property in violation of any state or city building, fire or zoning code, d) Fail to vacate the Property as of the time and date stated in Paragraph 1 of this Agreement. 8. EDA or the City of New Hope will not be liable to Sellers, or Sellers' family, agents, invitees, contractors, employees or servants, for any damages or losses to person or property incurred during Sellers' use or entrance onto the Property under this Agreement, unless caused by the willful misconduct of the EDA or the City of New Hope or any of its employees, agents, representatives or other persons acting only under the direct control of the EDA or the City of New Hope.. 2 9. Sellers agree to waive and release the EDA and City of New Hope and its employees, officials, agents and representatives from any and all right of recovery, claim, action or causes of action, for any loss or damage that may occur to Sellers' personal property, by reason of any and all risk and/or perils, regardless of cause or origin. 10. Sellers agree to indemnify, defend, and hold the EDA and City of New Hope harmless from and against all claims, damages, losses and expenses, including but not limited to reasonable attorney's fees for bodily injury or death or for injury to or destruction of personal property arising out of and from any negligent act or omission of Sellers, or anyone directly or indirectly employed by or gratuitously assisting Sellers in connection with Sellers' use or entry on the Property during the term of this Agreement. SELLERS, " "' 0.1rd f. Sucky . b. / ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE By: Kirk McDonald Its: Community Development Director STATE OF MINNESOTA COUNTY OF HENNEPIN SS. The foregoing instrument was acknowledged before me this ( ^ day of August, 2004, by Richard S. Sucky and Barbara S. Sucky, husband and wife. (Notary Public Seal) ■ STE11811 A SONDRALL � — ��+�'`-~ 0 NGLI FU UC MINNESOTA Notary Public &V 0 I Ron Jan. 31, 2005 ■ A M M 04 M vvvvvvvv~m STATE OF MINNESOTA }' COUNTY OF HENNEPIN SS. The foregoing instrument was acknowledged before me his day of August, 2004, by Kirk McDonald, the Community Development Director of the Economic Development Authority in and for the City of New Hope, a Minnesota municipal corporation, on behalf of said municipal corporation. Notary Public Drafted By: JENSEN & SONDRALL, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 (763) 424 -8811 P: %AttorneyliLnli,Cliciit Fulders \CNF{;99- 1 1 30214".:1302- 003 -Use & Access Agt.doc,_ IH REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development July 26, 2004 EDA Item No. i '1 By: Kirk McDonald By: \ 5 RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS, 5540 WINNETKA AVENUE NORTH (IMPROVEMENT PROJECT #762) REQUESTED ACTION Staff recommends EDA approval of a resolution prepared by the City Attorney approving the purchase of property located at 5540 Winnetka Avenue North for $225,000, which the owner is willing to accept. In addition, the city will be paying a differential payment of $54,000, because the owner has found an acceptable replacement property at a cost of $279,000.00. The city is also required to pay business relocation costs of $20,000, as the property is zoned commercial and there is a home occupation business on the property. Lastly, the city will pay the routine closing costs. All of these items are outlined in the attached documents from the City Attorney, The City Attorney is currently coordinating with the property owner and it is anticipated that the purchase agreement will be executed in the near future. This is the final property acquisition in the currently approved Winnetka Green project area, except for the 20/20 Eye Care property, which is in the commissioner's hearing process. POLICY /PAST PRACTICE City goal #2 is to emphasize the maintenance and redevelopment of commercial and residential properties within the city. The City Council has been addressing the residential portion of this goal through the city's many housing activities, including acquiring property in areas designated for redevelopment in the Comprehensive Plan. BACKGROUND At the November 3, 2003, Council Work Session, the Council directed staff to complete appraisals, relocation estimates and to present offers to residents located in the east Winnetka redevelopment area. On January 26, 2004, the EDA authorized condemnation of the remaining properties. The city had an appraisal completed on this property and the value was determined to be $225,000.00. The appraisal was based on a residential zoning use. The property owners found a replacement property for $279,000.00 and are eligible for a $49,900.00 differential payment. In order to complete this transaction, staff is recommending a $4,100.00 increase in the differential payment to $54,000.00. Staff is recommending the compromise due to the fact that the property is zoned commercial and the fact that the city would need to pay out an additional $1,500.00 to the property owner if they had another appraisal completed. Staff recommends approval of the resolution. FUNDING The subject property is located in an area where TIF funds can be expended. TIF funds would be used for property acquisition, relocation and associated holding costs. During the 2003 State Legislative Special Session, the city's TIF special legislation was passed. In December 2003, the district was approved by the City Council. MOTION BY SECOND BY Request for Action Page 2 ATTACHMENTS • Resolution • Purchase agreement and exhibits • City Attorney correspondence • City appraisal excerpts (full appraisal available for review in Dept. of Comm. Dev.) • Location map I: RFA/CommDev /Q -5540W innetka.doc CITY OF NEW HOPE EDA RESOLUTION NO. 04 - 26 RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS 5540 Winnetka Avenue North BE IT RESOLVED, by the Economic Development Authority in and for the City of New Hope as follows: WHEREAS, New Hope City staff have been in contact with Richard S. Sucky and Barbara S. Sticky, husband and wife ( "Owners "), Owners of certain real estate known as 5540 Winnetka Avenue North (the "Property"); and WHEREAS, appraisers hired by the New Hope EDA valued the Property at $225,000.00 as of February 26, 2004; and WHEREAS, the Owner is willing to sell the Property to the New Hope EDA for the sum of $225,000.00 as set forth in the Purchase Agreement attached hereto as Exhibit A and incorporated herein by reference; and WHEREAS, City staff have employed the service of Evergreen Land Services Company to provide the required relocation assistance; and WHEREAS, Evergreen Land Services Company has prepared a relocation analysis (attached as Exhibit B) for the Owner herein and has determined the estimated maximum relocation benefits payable to Owner based on a $225,000.00 acquisition price of the subject property is as follows: 1. differential payment - $54,000.00 2. moving expenses - $2,400.00, 3. closing costs - $2,500.00; and WHEREAS, Evergreen Land Services Company has further determined Owners are entitled to an additional Business Relocation Benefit resulting from Owners operation of a "home occupation" car part supply business located at the property equal to the actual cost to move and relocate the "home occupation" business to Owners replacement property or a $20,000.00 "in Lieu" relocation payment if Owner so chooses and if Owners can qualify for the "in Lieu" payment under federal and state law governing business relocation payments; and WHEREAS, it is in the best interest of the New Hope EDA to purchase the Property from the Owners for the sum of $225,000.00, with other terms and conditions as set forth in the Purchase Agreement attached as Exhibit A and to pay the required relocation assistance benefits as determined by Evergreen Land Services Company in the analysis attached as Exhibit B. 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 Richard S. Sucky and Barbara S. Sucky, husband and wife, for the sum of $225,000.00, with other terms and conditions as set forth in the Purchase Agreement attached hereto as Exhibit A, is approved. 3. The residential relocation assistance benefits payable to the Owner as determined by Evergreen Land Services Company and indicated on Exhibits B attached are hereby approved and Evergreen is further authorized and directed to determine and pay the appropriate business relocation benefits to relocate Owners "home occupation" car part supply business. This benefit shall be the actual cost to relocate the home occupation car part supply business or a $20,000.00 "in Lieu" payment if Owners can qualify for said payment as determined by Evergreen Land Services Company: 4. 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 26 day of July, 2004 D n oilier, President / 7 j Attest: Daniel J. Donahue, utive Director PAAttorney \Cnh Resolutions \99.11302- 001 - -Reso Approv PA -5540 Winnetka Avenue.doc 2 EXHIBIT A MINNESOTA STANDARD RESIDENTIAL PURCHASE AGREEMENT BEFORE YOU USE OR SIGN THIS CONTRACT, YOU SHOULD CONSULT WITH A LAWYER TO DETERMINE THAT THIS CONTRACT ADEQUATELY PROTECTS YOUR LEGAL RIGHTS. 1. PARTIES. This Purchase Agreement is made on July . 2004, by and between Richard S. Sucky and Barbara S. Sucky, husband and wife, of 5540 Winnetka Avenue North. New Hope. Minnesota 55425. SELLER, and the Economic Development Authority in and for the City of New Hope, a public body corporate and politic under the laws of the State of Minnesota, of 4401 Xylon Avenue North. New Hope, Minnesota 55428, BUYER. 2. OFFER/ACCEPTANCE. Buyer offers to purchase and Seller agrees to sell real property legally described as: That part of the West 10 acres of the Southwest Quarter of the Southwest Quarter of Section 5, Township 118, Range 21, Hennepin County, Minnesota, described as follows: Commencing at a point on the West line of the said West 10 acres of the Southwest Quarter of the Southwest Quarter, distant 1100 feet North from the Southwest corner thereof; thence North along said West line, 90 feet; thence East parallel with the South line thereof 160 feet, thence South parallel with the West line thereof 90 feet; thence West parallel with the South line thereof, 160 feet to the point of beginning, now being a part of Lot 38, Auditor's Subdivision Number 226, Hennepin Count Minnesota, except that part which lies Westerly of the following described line: Beginning at 'a point 40.0 feet East of the West line of said Section and 19.44 feet South of the South line of said tract, as measured along the West line thereof; thence run Northerly to a point distant 13.0 feet East of the West line of said tract and 40.56 feet North of the South line of said tract, as measured along the West line thereof; thence run North parallel with the West line of said tract to the North line of said tract and there terminating. Property Tax Identification Number or Tax Parcel Number 05- 118 -21 -33 -0007; located at 5540 Winnetka Avenue North, City of New Hope, County of Hennepin, State of Minnesota, 55428. 3. ACCEPTANCE DEADLINE. The acceptance date of this Purchase Agreement is the date it is delivered by the last party signing to the other party. . 4. PERSONAL PROPERTY AND FIXTURES INCLUDED IN SALE. The following items of personal property and fixtures owned by Seller and currently located on the real property are included in this sale: garden bulbs, plants, shrubs, trees, storm windows and inserts, storm doors, screens, awnings, window shades, blinds, curtain - traverse - drapery rods, attached lighting fixtures with bulbs, plumbing fixtures, sump pumps, water heaters, heating systems, heating stoves, fireplace inserts, fireplace doors and screens, built -in humidifiers, built - in air conditioning units, built -in electronic air filters, automatic garage door openers with controls, television antennas, water softeners, built -in dishwashers, garbage disposals, built -in trash compactors, built -in ovens and cooking stoves, hood -fans, intercoms, installed carpeting, work benches, security systems, and also the following property: shall else deiive!��Varrwi;p. Bill _04 f+)r th - A s 5. PRICE AND TERMS. The price for the real and personal property included in this sale is Two Hundred Seventy-Nine Thousand and 00 /100 Dollars ($279,000.00) which Buyer shall pay as follows: Earnest money of $0.00 , 9 Seller, to be deposited and held by Seller (and may be commingled with Seller's other funds) pending closing, 9 Seller's lawyer, to be deposited and held in the lawyer's trust account pending closing, 9 Seller's broker, to be deposited or held by broker according to the requirements of Minnesota Statutes, 9 Other and $279,000.00 cash, on Closing., 2004, the Date of An the attached 6. DEED/MARKETABLE TITLE. Upon performance by Buyer, Seller shall execute and deliver a General Warranty Deed, joined in by spouse, if any, conveying marketable title of record, subject to: A. Building and zoning laws, ordinances, state and federal regulations; B. Restrictions relating to use or improvement of the real property without effective forfeiture provisions: C. Reservation of any mineral rights by the State of Minnesota: D. Utility and drainage easements which do not interfere with existing improvements: E. Exceptions to title which constitute encumbrances, restrictions, or easements which have been disclosed to Buyer and accepted by Buyer in this Purchase Agreement: None. 7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Real estate taxes due and payable in and for the year of closing shall be prorated between Seller and Buyer on a calendar year basis to the actual Date of Closing, unless otherwise provided in this Purchase Agreement. !lie Pate 4C-'Iasin�� the ameent fe be prer-ated shall be al'the prioF* Yea! skieii _ ... _Hte! payable in ., - _ i an- PART of PART ol NON iionie_;iect Buyer at &)Sine S as Sellef'4 shatv ei'sue «r {sa+tl -BUYER AND SELLER SHALL PRORATE AS OF THE DATE OF CLOSING / sD z,�.Lbm `" SHAL u+ `" ON' DATE OF "' 091N9 all installments of special assessments certified for payment with the real estate taxes due and payable in the year of closing. LS...:L. oo ,.7 BU YER YEn 814 "" ' SS''`ir ` SELLER SHALL PAY ON DATE OF CLOSING aIi other special assessments levied as of the date of this Purchase Agreement. % " o ei l BUYER -SHAL "5`' :IF SELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as of the date of this Purchase Agreement for improvements that have been ordered by the City Council or other governmental assessing authorities. (Seller's provision for payment shall be by payment into escrow of 1 -1/2 times the estimated amount of the assessments.) As of the date of this Purchase Agreement. Seller represents that Seller has not received a Notice of Hearing of a new public improvement project from any governmental assessing authority, the costs of which project may be assessed against the real property. If a special assessment becomes pending after the date of this Purchase Agreement and before the Date of Closing, Buyer may, at Buyer's option: A. Assume payment of the pending special assessment without adjustment to the purchase price of the real property; or B. Require Seller to pay the pending special assessment (or escrow for payment of same as provided above) and Buyer shall pay a commensurate increase in the purchase price of the real property, which increase shall be the same as the estimated amount of the assessment; or C. Declare this Purchase Agreement void by notice to Seller, and earnest money shall be refunded to Buyer. SELLER SHALL PAY ON DATE OF CLOSING any deferred real estate taxes (including "Green Acres" taxes under Minn. Stat. 273.111) or special assessments payment of which is required as a result of the closing of this sale. Buyer shall pay real estate taxes due and payable in the year following closing and thereafter and any unpaid special assessments payable therewith and thereafter, the payment of which is not otherwise provided herein. Seller makes no representation concerning the amount of future real estate taxes or of future special assessments. 8. DAMAGES TO REAL PROPERTY. If the real property is substantially damaged prior to closing, this Purchase Agreement shall terminate and the earnest money shall be refunded to Buyer. If the real property is damaged materially but less than substantially prior to closing, Buyer may rescind this Purchase Agreement by notice to Seller within 21 days after Seller notifies Buyer of such damage, during which 21 -day period Buyer may inspect the real property, and in the event of such rescission, the earnest money shall be refunded to Buyer. 9. SELLER'S BOUNDARY LINE, ACCESS, RESTRICTIONS AND LIEN WARRANTIES. Seller warrants that buildings, if any, are entirely within the boundary lines of the real property. Seller warrants that there is a right of access to the real property from a public right of way. Seller warrants that there has been no labor or material furnished to the real property for which payment has not been made. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the real property. These warranties shall survive the delivery of the Deed or Contract for Deed. 10. CONDITION OF PROPERTY. A. Seiler warrants that all appliances, fixtures, heating and air conditioning equipment. fireplaces (including mechanisms, dampers, flues, and doors), wiring. and plumbing used and located on the real propem will be in working order on the Date of Closing. Seller shall remove all debris, and all personal property not included in this sale from the real property before possession date. Seller has no knowledge of any Dutch elm disease, oak wilt, or other disease of any trees on the real propem. B. Seller knows of no hazardous substances or petroleum products having been placed, stored, or released from or on the real property by any person in violation of any law, nor of any underground storage tanks having been located on the real property at any time, except as follows: None. C. Seller's warranties and representations contained in this paragraph 10 shall survive the delivery of the Deed . Any action based upon these warranties and representations must be commenced within two years after the date on which the Buyer closed on the purchase of the real property. D. Buyer shall have the right to have inspections of the property conducted prior to closing. Unless required by local ordinances or lending regulations, Seller does not plan to have the property inspected. E. Statutory Disclosure. Pursuant to Minnesota Statutes sections 513.52 - 513.60 (effective January 1. 2003), Seller must provide a written disclosure fsee (1) below], or Buyer must have received an inspection report [see (2) below], or Buyer and Seller may waive the written disclosure requirements [see (3) below]. Minnesota Statutes Section 513.57, Subd. 2. LIABILITY. A seller who fails to make a disclosure as required by sections 513.52 to 513.60 and was aware of the condition of the real property is Iiable to the prospective buyer. A person injured by a violation of this section may bring a civil action and recover damages and receive other equitable relief as determined by the court. An action under this subdivision must be commenced within two years after the date on which the prospective buyer closed the purchase or transfer of the real property, [Select only one of these three. 9 (1) Seller's Disclosure. Seller has provided a written disclosure to Buyer. A copy of Seller's disclosure is attached. Seller shall correct in writing any inaccuracies in the disclosure as soon as reasonably possible before closing. Minnesota Statutes Section 513.55. GENERAL DISCLOSURE REQUIREMENTS. Subdivision 1. CONTENTS. (a) Before signing an agreement to sell or transfer residential real property, the seller shall make a written disclosure to the prospective buyer. The disclosure must include all material facts pertaining to adverse physical conditions in the property of which the seller is aware that could adversely and significantly affect: (1) an ordinary buyer's use and enjoyment of the property; or, (2) any intended use of the property of which the seller is aware. (b) The disclosure must be made in good faith and based upon the best of the seller's knowledge at the time of the disclosure. Minnesota Statutes Section 513.58. AMENDMENT TO DISCLOSURE. Subdivision 1. NOTICE. A seller must notify the prospective buyer in writing as soon as reasonably possible, but in any event before closing, if the seller learns that the seller's disclosure required by section 513.55 was inaccurate. Subdivision 2. FAILURE TO NOTIFY; LIABILITY. A seller who fails to notify the prospective buyer of any amendments to the initial disclosure required under subdivision I is liable to the prospective buyer as provided in section 513.57. 9 (2) Inspection Report. Buyer has received an inspection report by a qualified third -party. If a copy of the inspection report is provided to Seller, Seller shall disclose to Buyer material facts known to Seller that contradict any information in the inspection report. Minnesota Statutes Section 5 13.5 6 Subd. 3. INSPECTIONS. (a) Except as provided in paragraph (b), a seller is not required to disclose information relating to the physical condition of the real property if a written report that discloses the information has been prepared by a qualified third party and provided to the prospective buyer. For purposes of this paragraph, "qualified third party" means a federal, state, or local governmental agency, or any person whom the seller, or prospective buyer, reasonably believes has the expertise necessary to meet the industry standards of practice for the type of inspection or investigation that has been conducted by the third party in order to prepare the written report. (b) A seller shall disclose to the prospective buyer material facts known by the seller that contradict any information included in a written report under paragraph (a) if a copy of the report is provided to the seller. : (3) Waiver of Disclosure. Minnesota Statutes Section 513.60. WAIVER. The written disclosure required under sections 511.52 to 511.60 may be waived if the seller and the prospective buyer agree to writing. Waiver of the disclosure required under sections 513.52 to 513.60 does not waive, limit, or abridge any obligation for seller disclosure created by any other law. Seller and Buyer waive the written disclosure required under sections 513.52 to 513.60. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE SELLER: Richard S. Sucky SELLER: Barbara S. Sucky BY: Don Collier. President BY: Daniel J. Donahue, Executive Director Other than the warranties and representations made in this paragraph 10, the property is being sold "AS IS" with no express or implied representations or warranties by Seller as to physical conditions, quality of construction, workmanship, or fitness for any particular purpose. (This paragraph is not intended to waive or limit anv provisions of Minn. Stat., Chapter 327A.) 11. DISCLOSURE OF NOTICES. Seller has not received any notice from any governmental authority as to violation of any law, ordinance or regulation affecting the real property, If the real properr is subject to restrictive covenants, Seller has not received any notice from any person as to a breach of the covenants. Seller has not received any notice from any governmental authority concerning any eminent domain, condemnation, special taxing district, or rezoning proceedings. 12. TRUTH -IN- HOUSING. Buyer acknowledges receipt of the Truth -in- Housing Disclosure Report or other inspection report if required by the municipality in which the real property is located. 13. POSSESSION. Seller shall deliver possession of the property not later than the Date of Closing but subjec to anv access agreement entered into by the parties Seller agrees to pay all interest, and all charges for city water, city sewer, electricity, and natural gas through and including 4ha444r -}std . the Date of Closing or the date Seller, vacates the Property ncr the access a *reenient whichever is later *SEE ADDITIONAL TERMS 14. EXAMINATION OF TITLE. LL_ oF. F11 BbNei ..9i Made 15. TITLE CORRECTIONS AND REMEDIES. Seller shall have 120 days from receipt of Buyer's written title objections to make title marketable. Upon receipt of Buyer's title objections, Seller shall, within ten (10) business days, notify Buyer of Seller's intention to make title marketable within the 120 day period. Liens or encumbrances for liquidated amounts which can be released by payment or escrow from proceeds of closing shall not delay the closing. Cure of the defects by Seller shall be reasonable, diligent, and prompt. Pending correction of title, all payments required herein and the closing shall be postponed. A. If notice is given and Seller makes title marketable, then upon presentation to Buyer and proposed lender of documentation establishing that title has been made marketable, and if not objected to in the same time and manner as the original title objections, the closing shall take place within ten (10) business days or on the scheduled closing date, whichever is later. B. If notice is given and Seller proceeds in good faith to make title marketable but the 120 day period expires without title being made marketable, Buyer may declare this Purchase Agreement void by notice to Seller, neither party shall be liable for damages hereunder to the other, and earnest money shall be refunded to Buyer. 4 C. If Seller does not give notice of intention to make title marketable, or if notice is given but the 120 dad period expires without title being made marketable due to Seller's failure to proceed in good faith. Buyer may seek, as permitted by law, one or more of the following: (1) Proceed to closing without waiver or merger in the Deed of the objections to title and without waiver of any remedies, and may: (a) Seek damages, costs, and reasonable lawyer's fees from Seller as permitted by law (damages under this subparagraph (a) shall be limited to the cost of curing objections to title. and consequential damages are excluded): or (b) Undertake proceedings to correct the objections to title; (2) Rescission of this Purchase Agreement by notice as provided herein, in which case the Purchase Agreement shall be null and void and all earnest money paid shall be refunded to Buyer: (3) Damages from Seller together with costs and reasonable lawyer's fees, as permitted by law: (4) Specific performance within six months after such right of action arises. D. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of' the agreements herein, Seller may elect either of the following options, as permitted by law: (1) Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation: (2) Seek specific performance within six months after such right of action arises, including costs and reasonable lawyer's fees, as permitted by law. E. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein. Buyer may, as permitted by law: (1) Seek damages from Seller including costs and reasonable lawyer's fees: (2) Seek specific performance within six months after such right of action arises. 16. NOTICES. All notices required herein shall be in writing and delivered personally or mailed to the address as shown at paragraph 1 above and, if mailed, are effective as of the date of mailing. 17. . shall pay a!! subr4iv o a ll tie r 18. MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota. 19. WELL DISCLOSURE. [Check one of the following) 9 Seller certifies that Seller does not know of any wells on the real property. 9 Wells on the real property are disclosed by Seller on the attached Well Disclosure Form. 20. SEWAGE TREATMENT SYSTEM DISCLOSURE. [Check either A or B] A. : Seller certifies that sewage generated at the property goes to a facility permitted by the Minnesota Pollution Control Agency (for example, a city or municipal sewer system). B. 9 Seller certifies that sewage generated at the property does not go to a facility permitted by the Minnesota Pollution Control Agency and Seller's Disclosure of individual Sewage Treatment System is attached (attach form). [Check either C or DJ C. 9 Seller does not know if there is an abandoned individual sewage system on the property. D. :Seller knows that there [strike one): fife{are no abandoned individual sewage treatment systems on the property. If Seller discloses the existence of an abandoned individual sewage treatment system on the property. then Minnesota law requires that the location of the system be disclosed to Buyer with a map. [Attach Seller's Disclosure ofIndividual Sewage Treatment Ststem with map completed.] 21. LEAD PAINT DISCLOSURE. [Check one of the follotivingl 9 Seller represents that the dwelling was constructed on the real propem in 1978 or later. : Seller represents that the dwelling was construed on the real propem before 1978. (If such housing is located on the real property, attached and made a pan of this Purchase Agreement is "LEAD PAINT ADDENDUM FOR HOUSING CONSTRUCTED BEFORE 1975 ".) .. 23. SELLER'S AFFIDAVIT. At closing, Seller shall supplement the warranties and representations in this Purchase Agreement by executing and delivering a Minnesota Uniform Conveyancing Blank [Form 1 16 -N1, 117- M, or 118 -M] Affidavit of Seller. 24. CLOSING. Closing shall be at the °' e eabl e ' [State other location]: New Hope Cit Hall. 4401 Xvlon Avenue North, New Hope, Minnesota 55428. At closing, Seller and Buyer shall disclose their Social Secunty Numbers or Federal Tax Identification Numbers for the purposes of completing state and federal tax forms. 25. ADDITIONAL TERMS: *Buyer shall obtain, at Buyer's expense, a Commitment for an Owner's Poliev of Title Insurance on a current ALTA form issued by an insurer licensed to write title insurance in Minnesota. Buyer shall be responsible for payment of those costs necessary to prepare such Commitment, including but not limited to abstracting fees, name search fees, service charges, etc. Buyer shall pay the premium for the Owner's Policy of Title Insurance. Buyer shall have ten (10) business days after receipt of the Commitment for Title Insurance to provide Seller with a copy of the Commitment and written objections. Buyer shall be deemed to have waived any title objections not made within the ten (10) day period above, except that this shall not operate as a waiver of Seller's covenant to deliver a statutory Warranty Deed, unless a Warranty Deed is not specified above. If Buyer obtains title insurance, Buyer is not waiving the right to obtain a good and marketable title of record from Seller. 26. ADDENDA. Attached are 4 addenda which are made a part of this Purchase Agreement. 27. TIME IS OF THE ESSENCE. Time is of the essence for all provisions of this Purchase Agreement. 28. MULTIPLE ORIGINALS. Seller and Buyer have signed 3 originals of this Purchase Agreement. THIS IS A LEGALLY BINDING CONTRACT. BEFORE SIGNING CONSTULT A LAWYER. Minnesota law permits licensed real estate brokers and sales agents to prepare purchase agreements. No recommendation or representation may be made by any real estate broker or sales agent as to the legal sufficiency, the legal effect, or the tax consequences of this contract. These are questions for vour lawver SELLER: I agree to sell the property for the price and terms and conditions set forth above. Date: July , 2004. Richard S. Sticky SSN: Date: July , 2004. Barbara S. Sucky SSN: BUYER: I agree to purchase the property for the price and terms and conditions set forth above. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE Date: July , 2004. By: Don Collier, President Date: July , 2004. By: Daniel J. Donahue, Executive Director This Purchase Agreement was prep, JENSEN & SONDRALL. P.A. 8525 Edinbrook Crossing, Suite 201 Brooklvn Park, MN 55443 (763) 424 -8811 Others who will assist Seller or Buver with this transaction: Lawyer for Buyer Steven A. Sondrall, #103391 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, Minnesota 55428 (763) 424 -8811 Listing Agent and Broker for this transaction are N/A Selling Agent and Broker fnr this transaction are N/A Buyer's Title Insurer Old Republic National Title Insurance Company 400 Second Avenue South Minneapolis, Minnesota 55401 [1994; Rev. 1996: Rev. 1997; Rev. 2002] P :WttomeyUBV- Clicnt Folden\CW99- 11302\99.11302- 001 - Residential PA.doc ADDITIONAL TERMS RELATING TO PURCHASE AGREEMENT FOR 5540 WINNETKA AVENUE NORTH Buyer acknowledges that it shall be responsible for payment of the State Deed Tax due on the sale of the above property, as well as the cost of securing a title commitment as set forth in the Purchase Agreement. Buyer will also be responsible for all other closing costs, specifically including all recording costs and all costs to seal the water well on the property. Buyer acknowledges that relocation assistance benefits as determined by Evergreen Lard Services Company will be paid to the Seller, as required by law, and the differential payment on the purchase of a replacement property resulting from the sale of the subject property shall not exceed the sum of $ Seller acknowledges and agrees the determination of moving expenses and closing costs by Evergreen Land Services Company shall be binding on both parties. Dated: , 2004. Richard S. Sucky Dated: , 2004. Barbara S. Sucky THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE Dated: , 2004. By: Dated: , 2004. By Don Collier Its: President Daniel J. Donahue Its: Executive Director P:\Attomey\TLB \t- Client Folders \CNM99 -1 1302 \99.11302- 002 -Ex A to PA.doc EXHIBIT B PRICE DIFFERENTIAL PAYMENT / ANALYSIS OF COMPARABLE PROPERTIES Relocation Consultant: Scott Means Date: 2 -12 -04 (undated 5 -5 -04) Subject Comparable Property #1 Comparable Property #2 Comparable Property #3 Price (appraised) $225,000.00 $274,900.00 $275,000.00 Address 5540 Winnetka 1600 Lilac Dr.N Ave. 3835 Quaker Ln City New Hope Golden Valley Plymouth Date of inspection Style Rambler One Story One Story Construction N/A N/A N/A Actual Age /Eff.Age 52 / NA N/A N/A Condition EGF Average Good Good No. of Units 1 1 1 No. of Rooms 6 6 6 No. of Bedrooms 3 4 4 Bedrooms Required 4 4 4 No. of Baths 2 4 3 Total Area (Sq. Ft.) 1,400 1368 1445 Basement Full Full / Fin Full / WO Bsmt- Types of Fin. Rms. FA / Laun / BR Heat/Cooling Gas FA / Central Gas FA / Window Gas FA / Central Fireplaces None One None Other Finished — Space Garage Two Aft Two Aft Two ATT Lot Size 14,000Sgft /.32 A 299x80 / 23,920 S ft /.54A Irr Neighborhood E/B Suburban E E Schools Y Y Y Public Transportation y y Y Church Y Y Y Place of Em to ment y y y Water 1. Type 2. Adequate 1. City 1. 2. Yes 2. City Yes 1. City 1. 2. Yes Sewer 1. Type 2. Adequate 1. City 1. 2. Yes 2. City Yes 1. City 1. 2. Yes Other Comments: These amounts factored in to the comparable price Comparable Price Project Price Difference Estimated Moving Expenses Estimated Closing Costs Total Benefit $274,900.00 - $225,000.00 = $49,900.00 + $2,100.00 + - $2,500.00 = $54,500.00 Relocation Consultant: Scott Means Date: 2 -12 -04 (undated 5 -5 -04) JENSEN & SONDRALL, P.A. Attorneys At Law 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 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443 -1968 TELEPHONE (763) 424 -8811 • TELEF.X (763) 493 -5193 e -mail law @j ensen- sondrall.com July 20, 2004 VIA E -MAIL TO kmcdonald(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 And Relocation BeneSts(5540 Winnetka Avenue North) Our File No.: 99.11302 Dear Kirk: Please find enclosed for consideration at the July 26 EDA meeting a proposed Resolution Approving Purchase Agreement And Relocation Benefits(5540 Winnetka Avenue North) for the referenced property. Also attached to the resolution as exhibits A and B are the purchase agreement and the relocation benefit analysis respectively. The relocation benefit analysis was prepared by Evergreen Land Services Company. As we discussed, this is the final property acquisition in the project. The Suckys' have finally found an acceptable replacement property at a cost of $279,000.00. As a result, staff has decided to increase the "differential payment" by $4,100.00 from $49,900.00 to $54,000.00 to make the transaction work. This is appropriate given the fact the property is zoned commercial, however, our appraisal was based on a residential zoning use. In an effort to avoid paying an additional $1,500.00 to the property owner to have their own appraisal prepared and possibly incurring additional cost to reappraise the property, staff is recommending we pay the additional $4,100.00 differential amount to complete this transaction. As we have also discussed, the Sucky's also operate a lawful home occupation from their property. As a result, we will also be obligated to pay business relocation costs. If they can qualify, it is my guess the will opt for the $20,000.00 "in Lieu" payment. I seriously doubt it would cost more than $20,000.00 in actual costs to relocate the business. Please call if you have any questions or comments about the enclosed resolution or purchase agreement. Very truly yours, July 20, 2004 Page 2 Steven A. Sondrall, City Attorney, City of New Hope JENSEN & SONDRALL, P.A. sasQjensen- sondrall.com After Hours Extension #147 Enclosure(s) P:\Attorney \SAS \forms\Kirk E -Mail Letterhead.doc MINNESOTA• REVENUE Names of buyers (last, first, MI) Address Daytime phone Economic Development Authority 4401 Xylon Avenue North in and for the City of New Hope New Hope, MN 55428 ( 763 ) 531-5100 Names of sellers (last, first, MI) New address Daytime phone Sucky, Richard S. Sucky, Barbara S. ( ) Street address or rural route of property purchased City or township County 1. Date of deed or contract Legal description of property purchased (lot, block and plat) or attach 3 copies of the legal description ()fR — *)Or)A I LIVL" nmmwnrrr,r. r., -,..--- Financial arrangements L. Total purchase price J. Down payment $225,000.00 4. Points or prepaid interest paid by seller Was personal property included in purchase price (e.g., furniture, rrventory, equipment)? ❑ Yes E� No If yes, list property and current (not replacement) value at right, and enter total in Box 5 below. Use back of form if needed. 5. Current value of personal property N/A 6. Type of acquisition (check all that apply) ❑ Buyer and seller are relatives or related businesses ❑ Contract paid off or resold ❑Property received in trade ❑ Buyer or seller is religious or charitable organization ❑ Name added or removed from deed ❑ Purchase agreement signed over two years ago ® Buyer or seller is unit of government ❑ Property condemned or foreclosed upon ❑ Buyer purchased partial interest only ❑ Property received as gift or inheritance 7. Type of property transferred (check all that apply) ❑ Land only [j Land and buildings ❑ Construction of new building after Jan. 1 of year of sale 8. Planned use of property (check one) Residential: single family ❑ Agricultural. Number of acres: (attach Schedule PE20A). ❑ Residential: duplex, triplex ❑ Apartment (residential, four or more units). Number of units: (attach Schedule PE20A). ❑ Cabin or recreational (noncommercial) ❑ Commercial- industrial. Type of business: (attach Schedule PE20A). ❑ Other. Describe: (attach Schedule PE20A). 8a. Will this property be the buyer's principal residence? ❑ Yes [j No Method of financing (complete only if seller- financed, including contracts - for -deed and assumed mortgages) Assumed Contract Mortgage or contract - for -deed Monthly payment Interest rate Number of mortgage for deed amount at purchase (principal & interest) now in effect payments 9. ❑ ❑ 10. ❑ ❑ Date of any lump sum (balloon) payments Sign here. I declare under penalty of law that the information n this form is true, correct and complete to the best of my knowledge and belief. Pri e t i^ If? hrrP. uayume pnone Counties: ComniPte thic can +inn Co Acres 7 Co T Tillable CER CRP RIM Yr — alt Use SD Deed - Yr Yr Land Land Bldg Bldg Tot Tot Primary property ID number Secondary parcel ID number "Good for study F'� Yes []No If no, give reason /code b. X HC ST Adjc Adjs Use Tillable EMV Apt FM C. d. GA c 1 My 2 MV ID Are there more parcelsl ❑Yes El No Co CT PT Date T Put additional ID numbers on back of form. M S 0 0 0 0 0 d Z 0 N