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IP #715COUNCIL REQUEST FOR ACTION HO Originating Department Approved for Agenda Agenda Section Community Development 7 -22 -02 Consent Item No. By: Ken Doresky, Community Development Specialist B : 6 '� RESOLUTION APPROVING PURCHAS OF 5518 WINNETKA AVENUE NORTH (IMPROVEMENT PROJECT NO. 715) ' ACTION REQUESTED Staff recommends approval of a resolution to purchase property located at 5518 Winnetka Avenue North for its appraised value of $159,000 in accordance with the attached purchase agreement, which was prepared by the City Attorney. Attached, please find the purchase agreement executed by the property owners. POLICY /PAST PRACTICE City goal #2 is to pursue 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 properties from willing sellers in designated redevelopment areas. Over the past few years, the City has purchased a total of thirteen properties located in Planning District 6 (Southeast Winnetka /Bass Lake Road /Sumter areas) as referenced in the City's Comprehensive Plan. The City is required by law to pay fair market value when acquiring property. Normally, fair market value is determined from a property appraisal. After the Council authorizes staff to negotiate the purchase of a property on the basis of an appraisal, staff meets with the property owner. If a mutually agreeable purchase priced is agreed upon, staff returns to the Council to seek approval of the purchase price. If the Council approves the purchase price, a purchase agreement is prepared and presented to the Council for final approval. BACKGROUND On June 10, 2002, the Council approved a motion authorizing staff to proceed with a written offer to purchase the property located at 5518 Winnetka Avenue North for its appraised value of $159,000. On May 13, the Council authorized staff to negotiate the potential purchase of the property based on the appraised value. On April 22, 2002, the Council authorized staff to obtain an appraisal of the property for potential acquisition purposes. The City had received a written request from the property owner dated April 2, indicating an interest to sell this property to the City. On June 4, staff met the property owner, Mrs. Valerie Groth, to negotiate a purchase price. Mr. Groth did not MOTION BY & SECOND BY TO: - 1' Request for Action Page 2 7 -22 -02 attend due to business reasons. The Groths agreed to sell the property to the City for its appraised value of $159,000. At the negotiation meeting, staff discussed the major issues involved when selling a property to the City, including the prorating of taxes, no realtor fees involved in the transaction, flexibility in vacating the property, flexibility in the closing date, cash deal and that no relocation benefits would be paid. The Groths have submitted the "Acknowledgement and Waiver By Owners" form, waiving relocation benefits. Finally, the Groths indicated that they would like to have the transaction completed by August 9. In 1998, the Council passed a resolution approving the City of New Hope Comprehensive Plan Update. In 1999, the Metropolitan Council approved the Comprehensive Plan Update. In the Plan, the City was broken down into several planning districts. Planning District 6 is the district where the Winnetka, Bass Lake Road and Sumter properties that the City has been pursuing over the past few years are located. Planning District 6 is bordered by Winnetka Avenue North to the west, C.P. Rail system to the south and the City of Crystal to the east and north. The Comprehensive Plan targeted several areas in the City for redevelopment. Recommendations for Planning District 6 include the acquisition and redevelopment of sites located along the south side of Bass Lake Road, in the Bass Lake Road extension area and along the east side of Winnetka Avenue North between 5340 Winnetka Avenue and Bass Lake Road. As referenced in the Comprehensive Plan Update, the recommendation to redevelop this area is intended to alleviate poor housing conditions, improve access onto Winnetka and Bass Lake Road and more fully utilize the land. In October 1999, the New Hope Economic Development Authority directed staff to contact residents along the east side of Winnetka Avenue North, between 5430 and 5550 to inquire if there was any interest in voluntary sales of these properties to the City. Since that time, the City has purchased seven of the seventeen lots along the east side of Winnetka and additional properties along Sumter Avenue North and in the Bass Lake Road extension area (attached, please see a map of City -owned properties in Planning District 6). In March 2002, the Council directed staff to contact twenty (20) residents in Planning District 6 to again inquire if there was any interest in voluntary sales of these properties to the City. The City has received additional interest from a number of property owners about potential sales. This property owner's request was received after the March 2002 interest letter was distributed. In 2000, the City received a Metropolitan Council Livable Communities Grant to study redevelopment opportunities in the roughly quarter -mile area encircling the intersection of Winnetka Avenue North and Bass Lake Road. Currently, a task force of stakeholders is studying redevelopment opportunities within the designated area. Up to this point, the task force has developed a number of redevelopment concept plans for the area, including redevelopment concepts for the southeast Winnetka, Bass Lake Road and Sumter area. The Hennepin County and Griffith Appraisals Inc. Estimated Market Values are as follows: Hennepin County o Taxes payable 2002, estimated market value: $117,000 ($32,500 Land & $84,500 Building) • Griffith Appraisals, 5 -3 -02 o Estimated market value: $159,000 ($46,000 Land & $113,000 Building) The property is located at 5518 Winnetka Avenue North. The property has a lot width of 100 feet and depth of 284.39 feet measuring a total of 28,439 square feet. The house was originally a rambler that has a split style addition creating a three level split design. The house has 1,064 sq. ft. gross living area. The basement is 31% finished. The home was constructed in 1955. The appraisal states that the subject property is average in overall condition for its age. City staff inspected the property and found that an unsealed well exists in the basement. The property owner is required to have the well sealed prior to the closing or 150% of the estimated cost will be held in escrow Request for Action Page 3 7 -22 -02 from the sale and used to hire a well abandonment contractor to seal the well. The unused portion of the escrow fund will be returned to the property owner. If the Council approves the purchase of this property, a closing will be scheduled for mid - August. Staff will then attempt to sell the home to a house mover, demolish the foundation and restore the site to a maintainable condition. Once the site is cleared, the property will be land banked in preparation for future redevelopment of the area. Staff indicated to the owners that because this would be a voluntary sale, no relocation benefits would be paid. Staff recommends that the Council approve the purchase of this property for the following reasons: • This is a 300' deep lot and matches up with the other deep lots the City has acquired to the north and south of the property. • Over the past few years, the City has acquired seven properties along Winnetka Avenue North in the same general area. • The property is located within the Livable Communities study area and several of the recently developed concept plans show this property included in a potential future redevelopment. FUNDING The subject property is located in a TIF district. TIF would be used for property acquisition and associated holding costs. ATTACHMENTS • Resolution • Location Map • Topographic Map • Purchase Agreement • Acknowledgement and Waiver Form 7901 5539 7800 Sale ' 7600 7350 —7810 750C: od mr 56TH AVE I N 5r 5559 5546 76 15 5537 7 5540 301 5532 5531 2- 5530 7621 7601 5524 5519 5520 5N5� 79 55()-g 5510 7708 5501 7608; 5506 55TH AVE N 54" 5437 5 5"3 5436 5437 54M 550D 54.36 5437 1 . ..... 5437 5434 5433 f 5432 ... ... .. 5433 7z 5446 i A 5430 5431 - 'L 54,30 5429 ILsJ 5428 5429 5430 5429 5440 i 5426 5427 ... _....Q 7 542 76M 5425 5434 5427 5426 5426 5420 5421 5422 5423 ST RAPHAEL DR. 5416 5417 5420 ; 5420 5425 5420 5419- 5361 5417 5418 5410 5411 5412 1 541 W55 5413 5414 f 54131 5416 5-413 : Ljj 5414 LAJ W6 5407 5406 540 5410 5409 • 5406 .9 544D8 5409 5349 5 5400 401 5400 5401 3 5400 540 5400 5401 .5400 5343 5325 5330 5337 5 W29 6 5340 5337 5319 LJ: $ 1 5342 5,325 3W 5324 &33 W13 Uji 533 co 5318 53250 21 5336 -93 5324 5325 CC cy go 5312 W07 5= 5317 5319 5318 5319 5 5324 313 5312 5313 5313 7825 5306. 7800 5318 U4 iio i 5,307 CV 5,307 1 L 5212 5312 5300 5301 7WI �` ' A O , C 52(X 5306 5301 : 4221 � 9 20 C 9! f C � - C � pf �, q 1 h I xi .` � 'I I � ❑ I � , I ¢ 3 G m p av i; I e c w / P T G G 9,OG .. a c e x% x D / - Z % ui r 1 1 % G I 90,.. x 9 55TH AVENUE j I n p z w o v p i C w C O 2 n x 9 . 3 I G G C x ° I a. w % ° O e a C vT x fl n C o a o q a o a q (� I'S ST. RAPHAEL ❑ q G a 9 ?0 ❑ ° h a q p O x n O M = n 27.3 cc ,® i� 0 c p y,C 9 p 32:.r 923..Lx 921.0 LU iO / c c I ° � C. C Z / s, p q w of z e C Op C O < tp I 920.E 913.4 p C C p \ of x a C 32;.31 ± p -- I 18 O p� p q « 921 fl0 C ° RESOLUTION NO. 02 - 116 RESOLUTION APPROVING PURCHASE AGREEMENT FOR 5518 WINNETKA AVENUE NORTH BE IT RESOLVED, by the City Council of the City of New Hope as follows: WHEREAS, the City of New Hope (the "City ") has been purchasing appropriate homes located within the City for rehabilitation or replacement; and WHEREAS, City staff has been in contact with John F. Groth and Valerie D. Groth ( "Owners "), owners of certain real estate known as 5518 Winnetka Avenue North (the "Property"); and WHEREAS, appraisers hired by the City valued the Property at $159,000.00 as of April 30, 2002; and WHEREAS, Owners are willing to sell the Property to the City for the sum of $159,000.00 as set forth in the Purchase Agreement attached hereto as Exhibit A and incorporated herein by reference; and WHEREAS, it is in the best interest of the City to purchase the Property from John F. Groth and Valerie D. Groth for the sum of $159,000.00, with other terms and conditions as set forth in the Purchase Agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of New Hope as follows: 1. The above recitals are incorporated herein by reference. 2. The purchase of the Property by the City from John F. Groth and Valerie D. Groth for the sum of $159,000.00, with other terms and conditions as set forth in the Purchase Agreement attached hereto as Exhibit A, is approved. 3. The Mayor, Manager and 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 said Purchase Agreement. Dated the 22 1h day of July, 2002. 1 -e �, �j W. Peter Erick, Mayor Attest: �- Valerie Leone, City Clerk PAAttorney \Cnh Resolutions \CNH99.11273 - 001 -Reso Approv Groth Purch.doc MBIer0avts Co. c St. Paul, MN 651 - 642.19: Form 1300 (1994; Rev. 1996; Rev. 1997; Rev. August 1997) M.S.B.A. Real Property Form No. Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT ! PAGE MINNESOTA STANDARD RESIDENTIAL PURCHASE AGREEMENT Copyright 1996, 1997 by Minnesota State Association, Minneapolis, Minnesota BEFORE YOU USE OR SIGN THIS CONTRACT, YOU SHOULD CONSULT WiTH AN ATTORNEY TO DETERMINE THAT THiS CONTRAC ADEQUATELY PROTECTS YOUR LEGAL RIGHTS. Minnesota State Bar Association disclaims any liability arising out of the use of this form. 1 1. PARTIES. This Purchase Agreement is made on Jury 20n2 , by and betwee 2 John F- Grath and Valerir D.H Grath Imarnal statusl hushartd arvi wife 3 of /seller's address/ 5519 Wmn tka Ave nue North Nrw, Hr nr Minnecnta 5542R , SELLER, an 4 the CiW of New Hnnr_ a Minrrcnta municipall, cnttinrannn , as )0XiX110XAN6 (strike joint tenants 5 if tenancy -in common is intended( of (buyer's address] 4401 X)Inn Avenue Nnrih New Hnpr Minnesota 55429 6 7 BUYER. 8 2. OFFCER/ACCEPTANCE. Buyer offers to purchase and Seller agrees to sell real property legally described as: The No rth 70 feet of the Snit: 9 900 feet of I nt iR. Atuiimr't S1t lion No 226 . eajfnt road, 10 11 12 13 fProperty Tax Identification Number or Tax Parcel Number 05- 119- 21- 33 -On17 J 14 15 located at 5519 Wintetka Avenue North , City of New Hnnr 16 County of Hennepin State of Minnesota, Zip Code 5542R 17 18 3. ACCEPTANCE DEADLINE. The acceptance date of this Purchase Agreement is the date it is delivered by the last party signing to the other 19 party. This offer to purchase, unless accepted sooner, shall be void at 11:59 A.M., on /date) 20 and in such event all earnest money shall be refunded to Buyer. 21 22 4. PERSONAL PROPERTY AND FIXTURES INCLUDED IN SALE. The following items of personal property and fixtures owned by Seller 23 and currently located on the real property are included in this sale 1Stnke out items not included]. garden bulbs, plants, shrubs, trees, storm 24 windows and inserts, storm doors, screens, awnings, window shades, blinds, curtain - traverse- drapery rods, attached lighting fixtures with 25 bulbs, plumbing fixtures, sump pumps, water heaters, heating systems, heating stoves, fireplace inserts, fireplace doors and screens, built -in 26 humidifiers, built -in air conditioning units, built -in electronic air filters, automatic garage door openers with controls, television antennas, 27 water softeners, built -in dishwashers, garbage disposals, built -in trash compactors, built -in ovens and cooking stoves, hood -tans, intercoms. 28 installed carpeting, work benches, security systems, and also the following property: ,• l 29 _�. I �, 30 31 32 33 Upon delivery of the Deed, Seller shaft also deliver r Warranty Bill of Sale for the above personal property. (Check the box if the following 34 Provision applies to this Purchase Agreement) Seller shall use M.S.B.A. Real Property Form No. 90 (1997), Warranty Bill of Sale. 35 36 S. PRICE AND TERMS. The price for the real and personal property included in this sale is fJ r Hundred Fifty - Nine Thn ,c nl and (XI! loft hs 37 38 Dollars ($ JS9_opp_of) ), which Buyer shall pay as follows: 39 40 Earnest money of $ 000 by VCXSW ZKS)C, XWXE payable to 41 /select one:( 42 Seller, to be deposited and held by Seller land may be commingled with Seller's other funds) pending closing, 43 Seller's lawyer, to be deposited and held in the lawyer's trust account pending closing, 44 Seller's broker, to be deposited or held by broker according to the requirements of Minnesota Statutes, 45 Other /describe how the esmest money will be held] r T it 46 47 receipt of which is hereby acknowledged and $ 159 000 (Y) cash, on nr hrfare Ausy,Ft 16 001 , the DATE OF CLOSING, v"& 48 49 50 6. DEED /MARKETABLE TITLE. Upon performance by Buyer, Seller shall execute and deliver a general Warranty Deed, joined 51 in by spouse, if any, conveying marketable title of record, subject to: 52 A.Building and zoning laws, ordinances, state and federal regulations; 53 B. Restrictions relating to use or improvement of the real property without effective forfeiture provisions; 54 C. Reservation of any mineral rights by the State of Minnesota; 55 D.Utility and drainage easements which do not interfere with existing improvements; 56 E. Exceptions to title which constitute encumbrances, restrictions, or easements which have been disclosed to Buyer and accepted by Buyer 57 in this Purchase Agreement !must be specified in writing]: -No=. 58 59 7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Real estate taxes due and payable in and for the year of closing shall be pro - 60 rated between Seller and Buyer on a calendar year basis to the actual Date of Closing, unless otherwise provided in this Purchase Agreement. s1 62 63 sa 65 payable in the year(s) 2(XY1 Seller represents the taxes due and Y will be FULL, X/!ii!i, NKK homestead classification, unless Buyer changes the tax classification for taxes 66 payable in the year following closing by taking possession of the real property as Buyer's homestead and filing a new homestead declaration 67 within the time required by law. If the taxes due and payable in the year of closing are PART or NON- homestead classification, Seiler shall 68 pay to Buyer at closing S Qn , in addition to Seller's prorated share of the taxes. If the taxes due and payable in the year 69 following closing are PART or NON- homestead classification and the closing takes place after the date by which Buyer must take possession 70 of the real property as Buyer's homestead to file for homestead tax status for taxes due and payable in such year, Seller shall pay to Buyer at 71 closing $ 0_()() as Seller's share of such taxes. 72 73 a ll one:) B( ll installments of XZgXKJXXKXSpL*MKX8 X=KXKNKX�LOMEXIFXX pKOC 74 X SELLER SHALL PAY ON DATE OF CLOSING a special assessments certified for payment with the real estate taxes due and payable in the year of closing. 75 (Strike ones XK 1CX00==X SELLER SHALL PAY ON DATE OF CLOSING all other special assessments levied as of the 76 date of this Purchase Agreement. 77 /Strike one.1 EK7EiQ70WjgXp9==X SELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as of the date of 78 this Purchase Agreement for improvements that have been ordered by the City Council or other governmental assessing authorities. (Seller's provision for payment stroll be IS by FORM tMtO/eafiED. payment into escrow of 1 K W ARNING: taU1VTNDaItED COPytMO OF Tlka times the estimated amount of the assessments.) As of the date of this W Miaar/Daws Co. a St. Paul, MN 651. 642 -19 Miller/Davis Co., St. Paul, MN --Form 1300 6994; Rev. 1996; Rev. 1997; Rev. August 1997) M.S.B.A. Real Properiv Form No Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT / PAGE 80 Purchase Agreement, Seller represents that Seller has not received a Notice of Hearing of a new public improvement project from a 81 governmental assessing authority, the costs of which project may be assessed against the real property. We special assessment becom. 82 pending after the date of this Purchase Agreement and before the Date of Closing, Buyer may, at Buyer's option: 83 A. Assume payment of the pending special assessment without adjustment to the purchase price of the real property; or, 84 B. Require Seiler to pay the pending special assessment for escrow for payment of same as provided above) and Buyer shall pay 85 commensurate increase in the purchase price of the real property, which increase shall be the same as the estimated amount of it 86 assessment; or, 87 C. Declare this Purchase Agreement void by notice to Seller, and earnest money shall be refunded to Buyer. 88 !Strike oneJ RI7d06R76)tlltpL7A KWJt / SELLER SHALL PAY ON DATE OF CLOSING any deterred real estate taxes (including "Gree 89 Acres' taxes under Minn. Stat. 273.111) or special assessments payment of which is required as a result of the closing of this sale. 90 Buyer shall pay real estate taxes due and payable in the year following closing and thereafter and any unpaid special assessments pavabi 91 therewith and thereafter, the payment of which is not otherwise provided herein. Seller makes no representation concerning the amount C 92 future real estate taxes or of future special assessments. 93 94 S. DAMAGES TO REAL PROPERTY. If the real property is substantially damaged prior to closing, this Purchase Agreement shall terminatf 95 and the earnest money shall be refunded to Buyer. It the real property is damaged materially but less than substantially prior to closing 96 Buyer may rescind this Purchase Agreement by notice to Seller within 21 days after Seller notifies Buyer of such damage, during whict 97 21-day period Buyer may inspect the real property, and in the event of such rescission, the earnest money shall be refunded to Buyer. 98 99 9. SELLER'S BOUNDARY LINE, ACCESS, RESTRICTIONS AND LIEN WARRANTIES. Seller warrants that buildings, if any, are entirely within 100 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 101 warrants that there has been no labor or material furnished to the real property for which payment has not been made. Seller warrants that 102 there are no present violations of any restrictions relating to the use or improvement of the real property. These warranties shall survive 103 the delivery of the Deed or Contract for Deed. 104 105 10. CONDITION OF PROPERTY. 106 107 A. Seller warrants that all appliances, fixtures, heating and air conditioning equipment, fireplaces (including mechanisms, dampers, flues, 108 and doors), wiring, and plumbing used and located on the real property are in working order on the Date of Closing. Seller represents 109 that the property has / has not had a wet basement or water in the basement. Seller discloses that the roof has / has not leaked. 110 Seller warrants that the property: Is / connected to: city sewer /stoke one) YES /Mi; city water YES !�; cable TV YES /NCt. 111 Seller shall remove all debris and all personal property not included in this sale from the real property before possession date. Seller 112 has not received any notice from any governmental authority as to the existence of any Dutch elm disease, oak wilt, or other disease 113 of any trees on the real property. 114 115 B. Seiler knows of no hazardous substances or petroleum products having been placed, stored, or released from or on the real y by 116 any person in violation of any law, nor of any underground storage tanks having been located on the real property at any time, except pro 117 as follows: Nnne 118 119 120 121 122 123 124 C. Seller's warranties and representations contained in this paragraph 10 shall survive the delivery of the Deed or Contract for Deed, 125 provided that any notice of a defect or claim of breach of warranty must be in writing and any such notice with respect to matters 126 referred to in A., above must be given by Buyer to Seller within one year of the Date of Closing or be deemed waived. 127 128 D. Buyer shall have the right to have inspections of the property conducted prior to closing. Unless required by local ordinance or lending 129 regulations, Seller does not plan to have the property inspected. Other than the representations made in this paragraph 10, the 130 property is being sold "AS IS" with no express or implied representations or warranties by Seller as to physical conditions, quality of 131 construction, workmanship, or fitness for any particular purpose. (This paragraph is not intended to waive or limit any provisions of 132 Minn. Stat., Chapter 327A.) 133 134 11, DISCLOSURE OF NOTICES. Seller has not received any notice from any governmental authority as to violation of any law, ordinance or 135 regulation affecting the real property, if the real property is subject to restrictive covenants, Seller has not received any notice from any 136 person as to a breach of the covenants. Seller has not received any notice from any governmental authority concerning any eminent 137 domain, condemnation, special taxing district, or rezoning proceedings. 138 139 12. TRUTH•IN- HOUSING. Buyer acknowledges receipt of the Truth -in- Housing Disclosure Report or other inspection report if required by the 140 municipality in which the real property is located. 141 142 13. POSSESSION. Seiler shall deliver possession of the property not later than thr dAte of 143 petroleum gas, and all charges for city water, city sewer, electrici closing. All interest, f t oil, liquid 144 dart of C'lncino_ ty, end natural pas shall be prorated between the parties as of ihr 145 146 14. EXAMINATION OF TITLE, To demonstrate that Seller's title is good and marketable of record, within a reasonable time her 147 acceptance of this Purchase Agreement, Seller shall furnish Buyer with an Abstract of Title or a Registered Property Abstract certified to 148 date including proper searches covering bankruptcies and state and federal judgments, federal court judgment liens in favor of the U.S., 149 liens, and levied and pending special assessments. Buyer shall have ten (10) business days after receipt of the Abstract of Title or 150 Registered Property Abstract either to have Buyer's lawyer examine the title and provide Seller with written objections or, at Buyer's own 151 expense, to make an application for a title insurance policy and notify Seiler of the application. Buyer shalt have ten (10) business days 152 after receipt of the Commitment for Title Insurance to provide Seller with a copy of the Commitment and written objections. Buyer shall be 153 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 154 Seller's covenant to deliver a statutory Warranty Deed, unless a Warranty Deed is not specified above. If Buyer obtains title insurance, 155 Buyer is not waiving the right to obtain a good and marketable title of record from Seller. 156 157 15. TITLE CORRECTIONS AND REMEDIES. Seller shall have 120 days from receipt of Buyer's written title objections to make title 158 marketable. Upon receipt of Buyer's title objections, Seller shall, within ten (10) business days, notify Buyer of Seller's intention to make 159 title marketable within the 120 day period. Liens or encumbrances for liquidated amounts which can be released by payment or escrow 160 from proceeds of closing shall not delay the closing. Cure of the defects by Seiler shall be reasonable, diligent, and prompt. 161 correction of title, all payments required herein and the closing shall be postponed, Pending 162 A. It notice is given and Seller makes title marketable, then upon presentation to Buyer and proposed lender of documentation 163 establishing that title has been made marketable, and if not objected to in the same time and manner as the original title objections, 164 the closing shall take place within ten (10) business days or on the scheduled closing date, whichever is later. 165 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 166 marketable, Buyer may declare this Purchase Agreement void by notice to Seller, neither party shall be liable for damages hereunder to 167 the other, and earnest money shall be refunded to Buyer. Milier/Daws Co. ° St. Paul. MN 851 - 842.1988 Miller/Davis Co., St. Paul, MN -Form 1300 (1994; Rev. 1996; Rev. 1997; Rev. August 1997) M.S.B.A. Real Property Form No. 1 Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT / PAGE 3 168 C. If Seller does not give notice of intention to make title marketable, or it notice is given but the 120 day period expires without title being 169 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: 170 1. Proceed to closing without waiver or merger in the Deed of the objections to title and without waiver of any remedies, and may: 171 is) Seek damages, costs, and reasonable lawyer's fees from Seller as permitted by law Idamages under this subparagraph (a) shall 172 be limited to the cost of curing objections to title, and consequential damages are excluded); or 173 (b) Undertake proceedings to correct the objections to title; 174 2. Rescission of this Purchase Agreement by notice as provided herein, in which case the Purchase Agreement shall be null and void 175 and all earnest money paid shall be refunded to Buyer; 176 3. Damages from Seller together with costs and reasonable lawyer's fees, as permitted by law; 177 4. Specific performance within six months after such right of action arises. 178 D. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect 179 either of the following options, as permitted by law: 180 1. Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties 181 acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for 182 payment notwithstanding cancellation; 183 2. Seek specific performance within six months after such right of action arises, including costs and reasonable lawyer's fees, as 184 permitted by law. 185 E. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as 186 permitted by law: 187 1. Seek damages from Seller including costs and reasonable lawyer's fees; 188 2. Seek specific performance within six months after such right of action arises. 189 190 16. NOTICES. All notices required herein shall be in writing and delivered personally or mailed to the address as shown at Paragraph 1 191 above and, if mailed, are effective as of the date of mailing. 192 193 17. SUBDIVISION OF LAND. If this sale constitutes or requires a subdivision of land owned by Seller, Seller shall pay all subdivision 194 expenses and obtain all necessary governmental approvals. Seller warrants that the legal description of the real property to be conveyed 195 has been or will be approved for recording as of the Date of Closing. 196 197 18. MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota. 198 199 19. WELL DISCLOSURE. (Check one of the following:) 200 _ Seller certifies that Seller does not know of any wells on the real property. 201 _ Wells on the real property are disclosed by Seller on the attached Well Disclosure form. 202 203 20. SEWAGE TREATMENT SYSTEM DISCLOSURE. 204 (Check either A or B:l 205 — A. Seller certifies that sewage generated at the property goes to a facility permitted by the Minnesota Pollution Control Agency 206 (for example, a city or municipal sewer system). 207 _ B. Seller certifies that sewage generated at the property does not go to a facility permitted by the Minnesota Pollution Control 208 Agency and Seller's Disclosure of Individual Sewage Treatment System is attached (attach form). 209 /Checkpither C or Da 210 C. Seller does not know if there is an abandoned individual sewage treatment system on the property. 211 _ D. Seller knows that there [strike one:) are / are no abandoned individual sewage treatment systems on the property. If Seller 2 discloses the existence of an abandoned individual sewage treatment system on the property, then Minnesota law requires 213 that the location of the system be disclosed to Buyer with a map. lArrach Seller's Disclosure of Individual Sewage Treatmenr 214 System with map completed.) 215 216 21. LEAD PAINT DISCLOSURE. /Check one of the foilowinga 217 Seller represents that the dwelling was constructed on the real property in 1978 or later. 218 � Seller represents that the dwelling was constructed on the real property before 1978. (It such housing is located on the real 219 property, attached and made a part of this Purchase Agreement is 'LEAD PAINT ADDENDUM FOR HOUSING CONSTRUCTED 220 BEFORE 1976'.) 221 222 22. WETLANDS, SHORELAND, AND FLOOD PLAIN CONCERNS. Currently the law does not require Seller to disclose Seller's knowledge, 223 if any, of the existence of wetlands, shoreland, or flood plain on or affecting the real property. If Buyer has not already investigated these 224 concerns, Buyer might want to include Seller's disclosures regarding these concerns. (Check the box it the following provision applies to 225 this Purchase Agreement:) M ADDENDUM TO PURCHASE AGREEMENT: WETLANDS, SHORELAND AND FLOOD PLAIN DISCLOSURE, 226 M.S.B.A. Real Property Form No. 8 (1997), is included as an addendum to this Purchase Agreement. 227 228 23. SELLER'S AFFIDAVIT. At closing, Seller shall supplement the warranties and representations in this Purchase Agreement by 229 executing and delivering a Minnesota Uniform Conveyancing Blank [Form No. 116 -M, 117 -M, or 118 -M) Affidavit of Seller. 230 231 24. CLOSING. Closing shall be at the office of Seller's lawyer, Buyer's title insurer, or at 232 some other mutually agreeable location. 233 [State other location:] New Hone C ity Hall 4401 Xy M pv n G tvo h hew f 234 At closing, Seller and Buyer shall disclose their Social Security Numbers or F deraal I dentification Numbers for the 235 completing state and federal tax forms. purposes of 236 237 25. ADDITIONAL TERMS: Eller chap be resnoncih]S —for the ctxr r aft n r 236 aCCOrdanrr wi h the ..¢ulano c of he nr� s , y well ce r s. tam On any h nropcnyJp ___ n t _City arvl CtarP- An ec _--" - . of th . ^� atM ..cr r., 239 ° .: - •ry c ecti � abarxlO_ n And.S eA]_=y,_ycll -anti 240 241 PYs tems remain 242 243 244 245 246 247 - 248 249 250 26. ADDENDA. Attached are 3 addenda which are made a part of this Purchase Agreement, 251 252 27. TIME IS OF THE ESSENCE. Time is of the essence for all provisions of this Purchase Agreement, 253 254 28. MULTIPLE ORIGINALS. Seller and Buyer have signed (number) 2 255 originals of this Purchase Agreement. 256 MBlar/Davrs Co. c St. Peui, MN 651642.19 Miller/Davis Co., St. Paul, MN —Form 1300 (1994; Rev. 1996; Rev. 1997; Rev. August 1997) M.S.B.A. Real Property Form No Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT / PAGE 257 258 259 260 THIS IS A LEGALLY BINDING CONTRACT. _ BEFORE SIGNING, CONSULT A LAWYER. Minnesota law permits licensed real estate 261 brokers and sales agents to prepare purchase agreements. No recommendation or representation may be made by any real estate 262 broker or sales agent as to the legal sufficiency, the legal effect, or the tax consequences of this contract. These are questions tof 263 your lawyer. .'J'.agree to sell the property for the price and terms and I agree to purchase the property tot the price and terms ar conditions set forth above. conditions set forth above. SELLER: _ BUYER: CITY Jobfi F. Groth Idate) C Waif ELLER: , r • • • •�` ✓ - � eus�R: By Valerie D.H. Groth fdate! Daniel Donahue !date City Manager Jensen & Sondrall, P.A. 8525 Edinbrook Crossing, #201 Brooklyn Park, Minnesota 55443 (763) 424 -8811 This Purchase Agreement was prepared by: Others who wX assist Seiler or Buyer with this transaction: Attorney For Buyer Telephone: Facsimile: Listing Agent and Broker for this transaction are: Telephone: Facsimile: Selling Agent and Broker for this transaction are: Telephone: Facsimile: Buyer's or Lender's Title Insurer: Telephone: Facsimile: OF NEW HOPE MWwMavis Co. s St. POW. MN 651.642-' JWpa' Form 1519Y (New g11 ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON LEAD -BASEL PAINT AND LEAD -BASED PAINT HAZARDS This form approved by the Minnesota Association of REALTORSa, which disclaims any liability arising out of use or misuse of this form. 1998, Minnesota Association of REALTORSa, Edina, MN Date Jun- 2 00 1 Page 1 of Page Addendum to Purchase Agreement between parties dated June 2002 pertaining to the purchase an sale of the property at 551 R Winne ka Avenue North- New Hop Minnesota 55128 Section 1: Lead Warning Statement Every purchaser of anv interest in residential real property on which a residential dwelling was built prior to 1975, is notified tha . such property may present exposure to lead from lead - based paint that mm place young children at risk of developing lea: poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead -based paint hazards from risk assessments or inspections in the seller's possession and notifi the buyer of any knowr, lead -based paint hazards. A risk assessment or inspection for possible lead -based paint hazards is recommended prior to purchase. Sefler's Disclosure (initial) (a) Presence of lead -based paint and/or lead -based paint hazards (check one below): 7 Known lead -based paint and/or lead -based paint hazards are present in the housing (explain). C b) D Seller has no knowledge of lead -based paint and/or lead -based paint hazards in the housing. Records and reports available to the seller (check one below): Seller has provided the purchaser with all available records and reports pertaining to lead -based paint and /or lead -based paint hazards in the housing (list documents below). X Seller has no reports or records pertaining to lead -based paint and /or lead -based paint hazards in the housing. Purchaser's Acknowledgment (initial) (c) Purchaser has received copies of all information listed under (b) above. (d) Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. (e) Purchaser has (check one below): Received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead -based paint and/or lead -based paint hazards (If checked, see Section II below); or Q Waived the opportunity to conduct a risk assessment or inspection for the presence of lead -based paint and/or leadibased paint hazards. Real Estate Licensee's Acknowledgment (initial) (f) Real estate licensee has informed the seller of the seller's obligations under 42 U.S.C. 4852(d) and is ware of licensee's responsibility to ensure compliance. certification of Accuracy The following parties have reviewed the information above and certify, to the best of their knowledge, that the information iovided by the signato is true and accurate. CITY OF NEW HOPE Satler / John F. Groth '�, Date Purchaser Date Valerie D.H. troth By ' : ' $tiller Date SK D 5onahue, Gty Manager Date Real Estate Licensee Date Real Estate Licensee Section II: Contingency (Initial only if first box under Purchaser's Acknowledgment letter (e) above is checked.) This contract is contingent upon a risk assessment or an inspection of the property for the presence of lead -based paint and /or lead -based paint hazards to be conducted at the purchaser's expense. The assessment or inspection shall be completed within ten (10) a our one) calendar days after acceptance of the Purchase Agreement. This contingency shall be deemed removed, and the the Purchase Agreement shall be in full force and effect, unless purchaser or real estate licensee assisting or acting on behalf of purchaser delivers to seller or real estate licensee assisting or acting on behalf of seller within three (3) calendar days after the assessment or inspection is timely completed a written list of the specific deficiencies and the corrections required, together with a copy of any risk assessment or inspection report. If the seller and purchaser have not agreed in writing within three (3) calendar days after delivery of the written list of required corrections that: (A) some or all of the required corrections will be made; or (B) the purchaser waives the deficiencies; or (C) an adjustment to the purchase price will be made, the Purchase Agreement shall automatically be deemed null and void, and all earnest money shall be refunded to the purchaser. It is understood that the purchaser may unilaterally waive deficiencies or defects, or remove this contingency, providing that the Purchaser or the real estate licensee assisting or acting on behalf of purchaser notifies the seller or real estatc licensee assisting or acting on behalf of seller of the waiver or removal in writing within the time specified TLX:SALE (8/96) WARWNO: UHAUTHOIMD COPMO OF TWa FORM NIOWan io. MfllerlDsws Co. a St. Paul. MN 651.642.1P Form 1517 —W mnnesots well Discioswe Statement IN" t s MINNESOTA WELL DISCLOSURE STATEMENT Minnesota Law requires that before signing an agreement to sell or transfer real proper after June 30, 1990, the seller must disclose information in writing to the buyer about the stat and location of all known wells on the property. This requirement is satisfied by delivering to t buyer either a statement by the seller that the seller does not know of any wells on the proper: or a disclosure statement indicating the legal description and county and a map showing t location of each well. In the disclosure statement the seller must indicate, for each well, wheth the well is in use, not in use or sealed. A seller who fails to disclose the existence of a well at the time of sale and knew of, or h� reason to know of, the existence of a well is liable to the buyer for costs relating to the sealing the well and reasonable attorney fees for collection of costs from the seller, if the action commenced within six years after the date the buyer closed the purchase of the real proper where the well is located. Instructions for completion of this form are on the reverse side. 1. PROPERTY DESCRIPTION Street Address: 55 Winnetka Aventje North New Hopes Minnesota Hennepin City County 2. LEGAL DESCRIPTION The North 70 feet of the South 900 feet of I nt 38 Auditnr'c SuhdlVl�lOrt No 2L except rand. � 3 -WELL DISCLOSURE STATEMENT (Check the appropriate box.) ❑ The seller certifies that the seller does not know of any wells on the above described real property. If this option is checked, then skip to the last line and sign and date this statement. Lam' The seller certifies that the following wells are located on the above described real property. MN. Unique Well Year of Well Well No. Depth Const. Type Well 1 wq WELL Well 2 Well 3 ' EALED WELL INFORMATION For each well designated as sealed above, complete this section. When was the well sealed? Who sealed the well? u L_ NOT IN SEALED US rr E E V Was a Sealed Well Report filed with the Minnesota Department of Health? Yes —N o 5. MAP Complete the attached map showing the location of each well on the real property. 6. CERTIFICATION BY SELLER 1. certify that the information provided :. knowledg . Seller or Designated Representative t Seller or Designated Representative Wne No: u"AWNORM co►rwo a tNU gown aaowertEO. above is accurate and complete to the best of my �i 'J Date Date IN USE 4 1"" July 23, 2002 4401 Xylon Avenue North New Hope, Minnesota 55428 -4898 www.ci.new- hope.mn.us John and Valerie Groth 5518 Winnetka Avenue North New Hope, MN 55428 City Hall: 763- 531 -5100 City Hall Fax: 763 - 531 -5136 Police: 763 - 531 -5170 Police Fax: 763 - 531 -5174 Public Works: 763- 533 -4823 Public Works Fax: 763- 533 -7650 TDD: 763 -531 -5109 Subject: Purchase Agreement Approval — 5518 Winnetka Avenue North Dear Mr. & Mrs. Groth, On July 22, 2002, the New Hope City Council approved the purchase agreement for your property located at 5518 Winnetka Avenue North, New Hope. The City Attorney prepared the purchase agreement based upon the mutually agreed upon purchase price of $159,000. The City has received the executed purchase agreement and relocation waiver. Upon execution by the Mayor and City Manager, the City will return a fully signed copy of the purchase agreement to you for your records. As we discussed, the City will escrow 150% of the estimated cost to abandon the unsealed well at the property. Once the home is removed from the site and the well is sealed, the City will return the unused portion of the escrow. Steve Sondrall, City Attorney and I would like to schedule the closing at 9:00 AM on August 8, 2002. Please contact me at the following telephone number if that time and date does not fit within your schedule. Thank you for your cooperation throughout this process. If you have any questions or comments, do not hesitate to contact me at 763- 531 -5137. Sincerely, Ken P. Doresky, AICP Community Development Specialist Kirk McDonald Director of Community Development Cc: Dan Donahue, City Manager Steve Sondrall, City Attorney Doug Sandstad, Building Official Chuck Tatro, General Inspector Erin Seeman, Community Development Intern Valerie Leone, City Clerk (Improvement Project No. 715) Family Styled City ^ �� For Family Living July 26, 2002 4401 Xylon Avenue North New Hope, Minnesota 55428 -4898 www.ci.new-hope.mn.us John and Valerie Groth 5518 Winnetka Avenue North New Hope, MN 55428 City Hall: 763 - 531 -5100 Police: 763 -531 -5170 Public Works: 763- 533 -4823 TDD: 763- 531 -5109 Subject: Purchase Agreement — 5518 Winnetka Avenue North Dear Mr. & Mrs. Groth, City Hall Fax: 763 - 531 -5136 Police Fax: 763 -531 -5174 Public Works Fax: 763 - 533 -7650 On July 22, 2002, the New Hope City Council approved the purchase agreement for your property located at 5518 Winnetka Avenue North, New Hope. The City Attorney prepared the purchase agreement based upon the mutually agreed upon purchase price of $159,000. Enclosed, please find a fully signed copy of the agreement for your records. The closing has been scheduled for 9:00 AM on August 8, 2002. Please contact me at the following telephone number if there is a conflict. Thank you for your cooperation throughout this process. If you have any questions or comments, do not hesitate to contact me at 763- 531 -5137. Sincerely, Ken P. Doresky, AICP Community Development Specialist Kirk McDonald Director of Community Development Enc.: Purchase Agreement Cc: Dan Donahue, City Manager Steve Sondrall, City Attorney Doug Sandstad, Building Official Chuck Tatra, General Inspector Erin Seeman, Community Development Intern Valerie Leone, City Clerk (Improvement Project No. 715) Family Styled City For Family Living 3 JENSEN & SONDRALL, P.A. DOUGLAS J. DEBNER' GORDON L. JENSEN GLEN A. NORTON STEVEN A. SONDRALL WILLIAM C. STRAIT STAGY A. WOODS OF COUNSEL LORENS Q. BRYNESTAD 'Real Property Law Specialist Certified By The Minnesota State Bar Association - Qualified ADR Neutral 'Admitted in Iowa Attorneys At Law 8525 E DINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443 -1968 TELEPHONE (763) 424 -8811 • TELEFAX (763) 493 -5193 e -mail lawoaj ensen- sondrall.com March 10, 2003 City of New Hope Attn Valerie Leone 4401 Xylon Avenue North New Hope, MN 55428 Re: 5518 Winnetka Avenue North Dear Ms. Leone: Included with this letter is the original Owner's Title Policy in connection with the property recently purchased by the City from Mr. and Mrs. Groth. If you have any questions with regard to this Title Policy, please contact us. Thank you. Sincerely, IM1 2 �"4n Janet L. Burke Paralegal JENSEN & SONDRALL P.A. jlb @jensen- sondrall.com After Hours Extension #126 Enclosure P: \Attorney \JLB \Letters \CNH 99 11273 -002- Client Ltr.doc Owner's Policy Issued through the Office of: Old Republic National Title Insurance Company 400 Second Avenue South Minneapolis, MN 55401 iiiiii ORDOCS ORT Form 402 — ALTA Owner's Policy 10 -17 -92 MT01155 t *OLD REPUBLIC ,� National Title Insurance Company * Owner's Policy * American Land Title Association Owner's Policy 10 -17 -92 * �c Policy Number A22025 -SV- 00022234 SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY, a Minnesota corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the land. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to the extent provided in the Conditions and Stipulations. IN WITNESS WHEREOF, the said OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY has caused its corporate name and seal to be hereunto affixed by its duly authorized officers as of the date shown in Schedule A, the policy to be valid when countersigned by an authorized officer or agent of the Company. EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses that arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by a above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be b' wing on the rights of p for value, -wi , i; Fe i . .!'.i.C °,..gee 3. Defects, liens, encumbrances, adverse claims, or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. Any claim, which arises out of the transaction vesting in the Insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: ORDOCS ORT Form 402 — ALTA Owner's Policy 10 -17 -92 MT01155 (i) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. CONDITIONS AND STIPULATIONS 1. Definition of Terms.. The following terms when used in this policy mean: (a) "insured ": the insured named in Schedule A, and, subject to any rights or defenses the Company would have had against the named insured, those who succeed to the interest of the named insured by operation of law as distinguished from purchase including, but not limited to, heirs, distributees, devisees, survivors, personal representatives, next of kin, or corporate or fiduciary successors. (b) "insured claimant ": an insured claiming loss or damage. or " r'.P' )'rt -ii ": anu al knowledge,, n' !: constructive knowled -c or notice w m .y be imputed to an insured by reason of the public records as defined in this policy or any other records which impart constructive notice of matters affecting the land. (d) "land ": the land described or referred to in Schedule A, and improvements affixed thereto which by law constitute real property. The term "land" does not include any property beyond the lines of the area described or referred to in Schedule A, nor any right, title, interest, estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy. (e) "mortgage ": mortgage, deed of trust, deed, or other security instrument. (f) "public records ": records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. With respect to Section l(a)(iv) of the Exclusions from Coverage, "public records" shall also include environmental protection liens filed in She records of the clerk of the United States district court for the district in which the land is located. (g) "unmarketability of the title ": an alleged or apparent matter affecting the title to the land, not excluded or excepted from coverage, which would entitle a purchaser of the estate or interest described in Schedule A to be released from the obligation to purchase by virtue of a contractual condition requiring the delivery of marketable title. 2. Continuation of Insurance After Conveyance of Title. The coverage of this policy shall continue in force as of Date of Policy in favor of an insured only so long as the insured retains an estate or interest in the land, or holds an indebtedness secured by a purchase money mortgage given by `a purchaser fron_ the. insured, or only .. ^o long as the iasu:ed shall have 'tabili? by reason of covenants of warranty made by the insured in any transfer or conveyance of the estate or interest. This policy shall not continue in force in favor of any purchaser from the insured of either (i) an estate or interest in the land, or (ii) an indebtedness secured by a purchase money mortgage given to the insured. 3. Notice of Claim to be Given by Insured Claimant. The insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in Section 4(a) below, (ii) in case knowledge shall come to an insured hereunder of any claim of title or interest which is adverse to the title to the estate or interest, as insured, and which might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if title to the estate or interest, as insured, is rejected as unmarketable. If prompt notice shall not be given to the Company, then as to the insured all liability of the Company shall terminate wish regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. ORDOCS ORT Form 402 — ALTA Owner's Policy 10 -17 -92 MT01155 4. Defense and Prosecution of Actions; Duty of Insured Claimant to Cooperate. (a) Upon written request by the insured and subject to the options contained in Section 6 of these Conditions and Stipulations, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an insured in litigation in which any third party asserts a claim adverse to the title or interest as insured, but only as to those stated causes of action alleging a defect, lien or encumbrance or other matter insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of the insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs or expenses incurred by the insured in the defense of those causes of action which allege matters not insured against by this policy. (b) The Company shall have the right, at its own cost, to institute and prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest, as insured, or to prevent or reduce loss or damage to the insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this policy. If the Company shall exercise its rights under this paragraph, it shall do so diligently. (c) Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions of this poiicy, the Codipany may pursu(, any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order. (d) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding, the insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, and all appeals. therein, and permit the Company to use, at its option, the name of the insured for this purpose. Whenever requested by the Company, the insured, at the Company's expense, shall give the Company all reasonable aid (i) in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest as insured. If the Company is prejudiced by the failure of the insured to furnish the required cooperation, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. S. Proof of Loss or Damage. In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company, a proof of loss or damage signed and sworn to by the insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascertain the facts giving rise to the loss or damage. The proof of loss or damage shall describe the defect in, or lien or encumbrance on the title, or other matter insured against by this policy which constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of the insured claimant to provide the required proof of loss or damage, the Company's obligations to the insured under the policy shall terminate, including any .iabi ity or obligation to defend., prosecute, or continue any litigation, with regard to the matter or matters requiring such proof of loss or damage. In addition, the insured claimant may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for examination, inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Policy, which reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the insured claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the custody or control of a third party, which reasonably pertain to the loss or damage. All information designated as confidential by the insured claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the insured claimant to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third panics as required in this paragraph shall terminate any liability of the Company under this policy as to that claim. ORDOCS ORT Form 402 — ALTA Owner's Policy 10 -17 -92 NIT01155 6 Options to Pay or Otherwise Settle Claims; Termination of Liability. In case of a claim under this policy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance. To pay or tender payment of the amount of insurance under this policy, together with any costs. attorneys' fees and expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or tender of payment and which the Company is obligated to pay. Upon the exercise by the Company of this option, all liability and obligations to the insured under this policy, other than to make the payment required, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, and the policy shall be surrendered to the Company for cancellation. (b) To Pay or Otherwise Settle With Parties Other Than the Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay; or (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in paragraphs (b)(i) or (ii), Company's obligations to the insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. 7. Determination, Extent of'Liability and Coinsurance. This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described. (a) The liability of the Company under this policy shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A; or, (ii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (b) In the event the Amount of Insurance stated in Schedule A at the Date of Policy is less than 80 percent of the value of the insured estate or interest or the full consideration paid for the land, whichever is less, or if subsequent to the Date of Policy an improvement is erected on the land which increases the value of the insured estate or interest by at least 20 percent over the Amount of Insurance stated in Schedule A, then this policy is subject to the following: (i) where no subsequent improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata in the proportion that the amount of insurance at Date of Policy bears to the total value of the insured estate or interest at Date of Policy; or (ii) where a subsequent improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata in the proportion that 120 percent of the Amount of Insurance stated in Schedule A bears to the sum of the Amount of Insurance stated in Schedule A and the amount expended for the improvement. The provisions of this paragraph shall not apply to costs. attorneys' fees and expenses for which the Company is liable under this policy, and shall only apply to that portion of any loss which exceeds, in the aggregate, 10 percent of the Amount of Insurance stated in Schedule A. (c) The Company will pay only those costs, attorneys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. 8. Apportionment. If the land described in Schedule A consists of two or more parcels which are not used as a single site, and a loss is established affecting one or more of the parcels but not all, the loss shall be computed and settled on a pro rata basis as if the amount of insurance under this policy was divided pro rata as to the value on Date of ORDOCS ORT Form 402 — ALTA Owner's Policy 10 -17 -92 MT01155 Policy of each separate parcel to the whole, exclusive of any improvements made subsequent to Date of Policy, unless a liability or value has otherwise been agreed upon as to each parcel by the Company and the insured at the time of the issuance of this policy and shown by an express statement or by an endorsement attached to this policy. 9. Limitation of Liability. (a) If the Company establishes the title, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the land, or cures the claim of unmarketability of title, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title as insured. (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company. 10. Reduction of Insurance; Reduction or Termination of Liability. All nde ,hie � e p Tc made Fn c osts , afto evti f e a nd e , ,.a!1 t h pHyraents u nder . policy, ex . pt ; �•ymen , ., r : rn , s a . re du c e the amount of the insurance pro tanto. 11. Liability Noncumulative. It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed, assumed, or taken subject, or which is hereafter executed by an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a payment under this policy to the insured owner. 12. Payment of Loss. (a) No payment shall be made without producing this policy for endorsement of the payment unless the policy has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within 30 days thereafter. 13. Subrogation Upon Payment or Settlement. (a) The Company's Right of Subrogation. Whenever the Company shall have settled and paid a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy not been issued. If requested by the Company, the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The insured claimant shall permit the Company to sue, compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies. If a payment on account of a claim does not fully cover the loss of the insured claimant, the Company shall be subrogated to these rights and remedies in the proportion which the Company's payment bears to the whole amount of the loss. If loss should result from any act of the insured claimant, as stated above, that act shall not void this policy, but the Company, in that event, shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any, lost to the Company by reason of the impairment by the insured claimant of the Company's right of subrogation. (b) The Company Rights Against Non - insured Obli a>? ors. The Company's right of subrogation against non - insured obligors shall exist and shall include, without limitation, the rights of the insured to indemnities, guaranties, other policies of insurance or bonds, ORDOCS ORT Form 402 — ALTA Owner's Policy 10 -17 -92 MT01155 notwithstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason of this policy. 14. Arbitration. Unless prohibited by applicable law, either the Company or the insured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Association. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. All arbitrable matters when the Amount of Insurance is $1,000,000 or less shall be arbitrated at the option of either the Company or the insured. All arbitrable matters when the Amount of Insurance is in excess of $1,000,000 shall be arbitrated only when agreed to by both the Company and the insured. Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option of the insured, the Rules in effect at Date of Policy shall be binding upon the parties. The award may include attorneys' fees only if the laws of the state in which the land is located permit a court to award attorneys' fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The law of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 15. Liability Limited to this Policy; Policy Entire Contract. (a) This policy together with all endorsements, if any, attached hereto by the Company is the entire policy and contract between the insured and the Company. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the title to the estate or interest covered hereby or by any action asserting such claim, shall be restricted to this policy. (c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company. 16. Severability. In the event any provision of the policy is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision and all other provisions shall remain in full force and effect. 17. Notices, Where Sent. All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this policy and shall be addressed to its Home Office: 400 Second Avenue South, Minneapolis, Minnesota 55401, (612) 371 -1111. Issued through the office of Old Republic National Title Insurance Company 00 Secc -,d Averase South Minneapolis, Mi3 55441 OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY A Stock Company 400 Second Avenue South, Minneapolis, Minnesota 55401 (612 - 1111 Authorized Signatory B President Attest �� ._ tsz"1 Secretary ORDOCS ORT Form 402 — ALTA Owner's Policy 10 -17 -92 MT01155 FILE NO: HEN OR995059 -Z ST. 22 CNTY. 053 PROP. 1 IRAN. 010 Re -Issue Liability: $.00 ORT FORM 402 - ALTA Owner's Policy 10 -17 -92 POLICY NUMBER: A22025 -SV- 00022234 FILE NO.: OR995059 -Z POLICY AMOUNT: $159,000.00 PREMIUM: $585.00 SCHEDULE A 1. POLICY DATE August 15, 2002 AT 5:00 PM 2. THE INSURED HEREUNDER, IN WHOM TITLE TO THE FEE SIMPLE ESTATE IS VESTED, AT DATE HEREOF, IS: City of New Hope 3. THE LAND REFERRED TO IN THIS POLICY IS DESCRIBED AS FOLLOWS: The South 70 feet, front and rear, of the North 513.8 feet, front and rear, of the West 10 acres of the Southwest 1/4 of Southwest 1/4 of Section 5, Township 118, Range 21, Hennepin County, Minnesota, according to the United States Government Survey thereof and situate in Hennepin County, Minnesota; Now being a part of Lot 38, Auditor's Subdivision No. 226. ORDOCS ORT STANDARD OWNERS FINAL POLICY MTOI138 OSOFP PAGE 1a` is * OLD REPUBLIC ,� 'F National Title Insurance Company FILE NO: HEN OR995O59 -Z SCHEDULE B THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE BY REASON OF THE FOLLOWING: 1. FACTS WHICH WOULD BE DISCLOSED BY A COMPREHENSIVE SURVEY OF THE PREMISES HEREIN DESCRIBED. 2. MECHANICS', CONTRACTORS' OR MATERIALMEN'S LIENS AND LIEN CLAIMS, IF ANY, WHERE NO NOTICE THEREOF APPEARS ON RECORD. 3. RIGHTS AND CLAIMS OF PARTIES IN POSSESSION. 4. Special assessments and taxes not yet due and payable. NOTE: There are no special assessments now a lien on the premises. 5. First one -half of taxes for 2002 are paid. Second one -half of taxes for 2002 unpaid on which no penalty will accrue if paid on or before October 15, 2002. 6. All minerals and mineral rights were reserved by State of Minnesota in an instrument recorded in Book 11 of Deeds on page 143 and Book 91 of Deeds, page 238. 7. Rights of the public over the West 33 feet for road purposes. 8. Slope easement(s) over that part of the tract which lies within a maximum distance of 36 feet from the centerline of County Road No. 156 as evidenced by Document No(s). 530164. 9. Road easement(s) over West 7.0 feet as evidenced by Document No(s). 4044387. ORDOCS ORT STANDARD OWNERS FINAL POLICY MTOI138 OSOFP PAGE 2�` * (LLD REPUBLIC National Title Insurance Company ac 'F Co unty RING LOCATION MINNESOTA DEPARTMENT OF HEALTH Minnesota Well and Boring Ent Nam -- WELL AND BORING SEALING RECORD Sealing H Minnesota Unique Well No. —� w. Minnesota Statutes, Chapter 1031 or b * 0 W No Township Name Township No. Range No. Section No. Fraction (sm. --v- lg.) Date Sealed Date Well or Boring Constructed Numerical Street Address or Fire Number and City of Well or Boring Location t 5 c 19 t k% '� f A C p D' , � g rv1p j 1p Depth Before Sealing h. Original Depth �� h Show exact location of well or boring / t Sketch map of well or boring AQUIFER(S) STATIC WATER LEVEL in section grid with "X'. location, showing property 1�0 Single Aquifer ❑ Multiaquifer lines, roads, and buildings. N WELUBORING 10 measured ❑Estimated W rY 10 Water Supply Well ❑ Monit. Well t t 1 ❑ Env. Bore Hole ❑ Other h. [9 below ❑ above land surface E i W � CASING TYPE(S) [51 Steel ❑ Plastic ❑ Tile ❑ Other hmlle CASING(S) Diameter Depth Set in oversize hole? Annular space initially grouted? ( S Iw- r mxe -i�. in, A �,t_ in. from © to _ ft. ❑Yes 9 No ❑Yes ❑ No � Unknown in. from to tt. ❑ Yes ❑ No ❑ Yes ❑ No ❑ Unknown PROPERTY, OWNER'S NAME Property owner's mailing address if different than well location address indicated above. in. from to ft. ❑Yes ❑ No ❑Yes ❑ No ❑Unknown U e IN , SCREEN/OPEN HOLE N l t Q H v +'S ( hi- w S S L14 b G Screen from to ft. Open Hole from to ft. OBSTRUCTIONS WELL OWNER'S NAME Rods/Drop Pipe ❑ Check Valve(s) ❑ Debris ❑ ❑ at {` Fill t` No Obstruction Well owner's mailing address if different than property owner's address indicated above. Type of Obstructions (Describe) � ...L f a i° eY V @ C - • Obstructions removed? V Yes ❑ No Describe t PUMP Type GEOLOGICAL MATERIAL COLOR HARDNESS OF FROM TO ❑ Removed 9) Not Present ❑ Other FORMATION METHOD USED TO SEAL ANNULAR SPACE BETWEEN 2 CASINGS, OR CASING AND BORE HOLE: If not known, indicate estimated formation log from nearby well or boring. `4l No Annular Space Exists to ! ❑ Annular space grouted with tremie pipe ❑ Casing Perforation/Removal in. from to ft. ❑ Perforated ❑ Removed in. from to ft ❑ Perforated ❑ Removed Type of perforator ❑ Other GROUTING MATERIAL(S) (One bag of cement - 94 lbs., one bag of bentonite = 50 this.) /f� Grouting Material h e 6 1 N a from d to ft. yards �'�L. bags from to ft. yards bags from to ft. yards bags from to ft. yards bags REMARKS, SOURCE OF DATA, DIFFICULTIES IN SEALING rt IMPORTANT -FILE WITH PROPERTY I H PAPERS -WELL OWNER COPY OTHER WELLS AND BORINGS Other unsealed and unused well or b on property? ❑ Yes It No How many? LICENSED OR REGISTERED CONTRACTOR CERTIFICATION ' This well or boring was sealed in accordance with Minnesota Rules, Chapter 4725. The information contained in this report is true to the best of my knowledge. ttiJS4e Plug, >59 7 Contractor Business Name License or Registration Jtio. Authorized R resentative Signature Date Name of Person Sealing Well or Boring Attorneys At Law DOUGLAS J. DEBNER' GORDON L. JENSEN' GLEN A. NORTON STEVEN A.SONDRALL WILLIAM C. STRAIT' STACY A. WOODS OF COUNSEL LORENS Q.BRYNESTAD 'Real Property Law Specialist Certified By The Minnesota State Bar Association 'Qualified ADR Neutral 'Admitted in Iowa 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443 -1968 TELEPHONE (763) 424 -8811 • TELEFAX (763) 493 -5193 e -mail law@jensen-sondrall.com August 8, 2002 Household Finance/Household Bank Attn: Payoff Department 1301 East Tower Road Schaumburg, IL 60173 SENT VIA AIRBORNE EXPRESS Re: Mortgagor: John Groth and Valerie Groth Your Acct. No.: 54540000168117 Subject Property: 5518 Winnetka Avenue North, New Hope, Minnesota Our File No.: 99.11273 Dear Sirs: Please find enclosed a check made payable to Household Industrial Finance Company in the amount of $122,169.54. This payment is the payoff on the mortgage you provided to John and Valerie Groth on property located at 5518 Winnetka Avenue North in the City of New Hope, Minnesota as referenced above. Pursuant to the Warranty Deed received by the City of New Hope from the Groths on August 8, 2002 (see copy enclosed), the City of New Hope has purchased this property. Please forward to my office your Satisfaction of Mortgage in recordable form on the referenced account. Also note, I am forwarding to you a signed Authorization to cancel any . credit lines the Groths may have with Household Finance Corporation. The cancellation authorization was signed by the Groths on August 8 as well. Please contact me if you have any questions about this transaction or if I need to provide you with additional information to obtain a recordable Satisfaction of Mortgage from your company. Very truly yours, Steven A. Sondrall, City Attorney, City of New Hope JENSEN & SONDRALL, P.A. sasAiensen- sondrall.com After Hours Extension #147 Enclosures cc: VKen Doresky, Community Development Director, City of New Hope CNH99.11273- 003 - Household Finance Ltr.wpd G® Y 0 A-- on 4401 Xylon Avenue North City Hall: 763 -531 -5100 City Hall Fax: 763- 531 -5136 New Hope, Minnesota 55428 -4898 Police: 763 - 531 -5170 Police Fax: 763- 531 -5174 www.ci.new- hope.mn.us Public Works: 763- 533 -4823 Public Works Fax: 763- 533 -7650 ^ TDD: 763- 531 -5109 June 27, 2002 John and Valerie Groth 5518 Winnetka Avenue North New Hope, MN 55428 Subject: Purchase Agreement — 5518 Winnetka Avenue North Dear John and Valerie Groth: On June 10, 2002, the Council approved a motion authorizing staff to proceed with a written offer to purchase the subject property for its appraised value of $159,000. Attached, please find three copies of the Purchase Agreement prepared by the City Attorney for review. At your convenience, please sign all three copies and return to the City for final execution. Upon approval and final signatures, the City will return one original copy to you for your records. Please note on page 3 of the Agreement under Paragraph 25, the requirement that the Seller shall be responsible for the cost to abandon and seal any well and septic system existing on the property in accordance with the regulations of the City of New Hope and the State of Minnesota. If any well or septic system is not sealed as of the date of closing, we will withhold pursuant to this paragraph 150% of the estimated cost to do the work from the proceeds payable to the seller at closing. Also, on the Lead -Based Paint Addendum, the Sellers must check one of the boxes in both A and B relating to Seller's disclosure of lead -based paint. If you have any questions concerning this matter or how to fill out the addendum, please contact Steve Sondrall, City Attorney at 763- 524 -8811. The same holds true relative to the Minnesota Well Disclosure Statement and the Private Sewer System Disclosure. You will need to check the boxes that are relevant and sign the Addendums in the spaces indicated. Again, if you have any questions concerning these forms you may contact the City Attorney. Also, the City has requested that Old Republic to provide a Title Commitment on this property. Staff intends to return to the City Council with a request to approve this purchase agreement on July 22. Upon approval, a closing can be scheduled. Thank you for your cooperation throughout this process. If you have any questions or comments, do not hesitate to contact me at 763- 531 -5137. Sincerely, i� r Ken P. Doresky, AICP Community Development Specialist Kirk McDonald Director of Community Development Family Styled City '. I I`l p For Family Living I ACKNOWLEDGEMENT AND WAIVER BY OWNERS The undersigned, all of the owners (the Owners) of the property known as 5518 Winnetka Avenue North, New Hope, Minnesota, (the Property) acknowledge that they have been informed in writing of the following: 1. The City of New Hope (the City) operates a scattered site housing program, involving the acquisition of certain properties in the City. The City will be negotiating with the Owners for the acquisition of the property by the City; 2. No specific property has to be acquired. It is not required that the City purchase the Property; 3. The Property is not part of an intended, planned, or designated project area where all of substantially all of the property within the area is to be acquired within a specific time limit; 4. If the City is unable to reach a mutually satisfactory agreement on the terms for the purchase of the Property after negotiations with the owners, the City will not be acquiring the Property through any other means, such as condemnation, and; 5. The City will inform the Owners of what it considers to be the fair market value of the property. In consideration of the City proceeding with the purchase of the Property from the Owners, the Owners confirm that this proposed purchase is a voluntary transaction, and the Owners hereby waive all rights they have to relocation benefits under the Code of Federal Regulations, 49 CFR Part 24. The Owners also affirmatively represent and warrant to the City that there are no persons or entities with current or future tenancy or leasehold rights in the Property. Dated ©� Dated: