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020904 EDA -'-' OFFICIAL FILE COPY CITY OF NEW HOPE EDA MEETING City Hall, 4401 Xylon Avenue North February 9, 2004 President W. Peter Enck Commissioner Sharon Cassen Commissioner Don Collier Commissioner Mary Gwin-Lenth Commissioner Steve Sommer 1. Call to order 2. Roll call 3. Approval of regular meeting minutes of January 26, 2004 4. Resolution approving purchase agreement and relocation benefits - 5538 Sumter Avenue North (improvement project no. 765) 5. Resolution approving purchase agreement and relocation benefits - 7609 Bass Lake Road (improvement project no. 766) 6. Resolution approving purchase agreement and relocation benefits - 7643 Bass Lake Road (improvement project no. 757) 7. Resolution approving purchase agreement and relocation benefits - 7615 Bass Lake Road (improvement project no. 723) 8. Adjournment CITY OF NEW HOPE 4401 XYLON AVENLrE NORTH NEW HOPE~ MINNESOTA 55428 EDA Minutes January 26. 2004 Regular Meeting City Hall CALL TO ORDER President Enck called the meeting of the Economic Development Authority to order at 7:43 p.m. ROLL CALL Present: W. Peter Enck, President Sharon Cassen, Commissioner Don Collier, Commissioner Mary Gwin-Lenth, Commissioner Steve Sommer, Commissioner APPROVE MINUTES Motion was made by Commissioner Collier, seconded by Commissioner Gwin- Lenth, to approve the Regular Meeting Minutes of January 12, 2004, with a correction to the last paragraph on page 1. All present voted in favor. Motion carried. IMP. PROJECT 751 President Enck introduced for discussion Item 4, Resolution authorizing execution Item 4 and delivery of a contract for private redevelopment by and between the New Hope Economic Development Authority and the Ryland Group, Inc. (improvement project no. 751). Mr. Kirk McDonald, Director of Community Development, stated the resolution approves the development agreement with Ryland Group, Inc. for the East Winnetka redevelopment site in the Livable Communities study area. He noted the highlights of the agreement were previously reviewed at the January 20 Council work session. This agreement will facilitate the construction of 171 to 179 new market .rate townhomes and condominium umts in the East Winnetka Livable Commumties area and address life cycle housing goals outlined in the Comprehensive Plan. Once the development agreement is approved, the next step would be authorizing acquisition of the remaining properties so that they can be delivered to the developer, per the agreement. Jim Casserly from Kxass Monroe is in attendance to review the details with the EDA Mr. McDonald stated the Council has been discussing the details of this development for over a year with Ryland Homes and the development agreement finalizes all details on the contract portion of the development. The developer will initiate the planning process in February and present plans to the Planning Commission and City Council the first part of March. It is anticipated that there will be some changes to the plan as it proceeds through the planning review and public comment process. Consmaction of model homes will take place in April. The City Council selected Ryland Homes as the preferred developer for this site at the conclusion of the Livable Communities study, due in pan to the quality of the conslxuction of its homes. Mx. Jim Casserly, Kxass Monroe, was recognized. He indicated the only unresolved issue relates to how Ryland Group structures its purchase agreements and the number of days they would like for due diligence. He explained the city's process of selling debt to enable funds for property acquisitions. The city is committed to the New Hope EDA Page 1 January 26, 2004 acquisitions and may structure its debt on repayment of the principal in a different manner depending on the scheduled payment of tax increment financing. Mr. Casserly reported that the bond sale will occur on March 22. The developer is willing to change its date from APril 15 to March 31. He noted the city would prefer March 15 and will continue to try and resolve the timing issues with Ryland. Mayor Enck pointed out omissions/corrections needed within the contract. The EDA discussed interest rates and the payment schedule for property taxes and special assessments. Discussion reverted back to the contract. Mr. McDonald recommended the EDA approve the contract subject to minor adjustments. Mr. Casserly assured the EDA that none of the issues discussed tonight would negate the agreement. EDA RESOLUTION Commissioner Collier introduced the following resolution and moved its adoption 04-02 "RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF A Item 4 CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY AND THE RYLAND GROUP, INC. (IMPROVEMENT PROJECT NO. 751)." The motion for the adoption of the foregoing resolution was seconded by Commissioner Gwin-Lenth, and upon vote being taken thereon, the following voted in favor thereof: Enck, Cassen, Collier, Gwm-Lenth, Sommer; and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted~ signed by the president which was attested to by the executive director. IMP. PROJECT 724 President Enck introduced for discussion Item 5, Resolution authorizing the Item 5 acquisition of certain property within the city of New Hope for the purpose of redevelopment (improvement project 724). Mr. Kirk McDonald, Director of Community Development, explained that the resolution was prepared by the city attorney authorizing the acquisition of 14 properties in the east Winnetka redevelopment area. The resolution includes condemnation for all 14 properties currently not owned by the city. Mr. McDonald explained that over the past 8 years the City has been acquiring property in the subject area in anticipation of future redevelopment. The first property that the city acquired in the area was 7621 Bass Lake Road in 1995. In 1998, the Council passed a resolution approving the city of New Hope Comprehensive Plan Update. The Comprehensive Plan targeted several areas in the city for redevelopment: Recommendations for the subject area 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 Ave. and Bass Lake Road. 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 Ave. N. and Bass Lake Road. In 2001 and 2002, the Livable Communities Task Force studied redevelopment opportunities within the designated area. In 2002, the Council accepted the task force study. In February 2003, the Cotmcil selected developers for each study area site based on proposals, except the west Winnetka site. Staff continues to coordinate with developers in the Livable Communities Area. New Hope EDA Page 2 January 26, 2004 As directed by the Council at the November 3, 2003, Work Session, staff has been coordinating with the remaining owners in the subject area to complete the acquisition of property. Also, staff has coordinated with Evergreen Land Services, the city's relocation consultant for payment of relocation benefits to all remaining sellers. At the January 20 Council Work Session, staff presented a detailed review of acquisition status in the subject area. Even though the resolution includes all remaining properties that the city has not yet closed on to insure delivery of the property to the developer on a timely basis, purchase agreements and/or negotiation is underway on a number of the remaining properties. Mr. McDonald emphasized that eminent domain will only be necessary for properties where purchase agreements are not negotiated. At this point, staff is negotiating purchase agreements with most of the property owners. Commissioner Cassen questioned the status of 5519 Sumter Avenue North. Mr. McDonald stated the city recently sent a letter to the property owner to try to reach a mutual agreement. Mr. Bob Sable, 5242 Quebec Avenue North, questioned the legality of acquiring private property through eminent domain. He also advised that the task force was supportive of single family homes as part of the plan. It was noted that the city can acquire residential property as well as commercial property through eminent domain proceedings. Mayor Enck commented that although the townhonses are not single-family homes, they will be individually owned. EDA RESOLUTION Commissioner Collier introduced the following resolution and moved its adoption 04-03 "RESOLUTION AUTHORIZING THE ACQUISITION OF CERTAIN Item 5 PROPERTY WITHIN THE CITY OF NEW I-IOPE FOR THE PIYRPOSE OF REDEVELOPMENT (IMPROVEMENT PROJECT 724)." The motion for the adoption of the foregoing resolution was seconded by Commissioner Cassen, and upon vote being taken thereon, the following voted in favor thereof: Enck, Cassen, Collier, Gwin-Lenth,' Sommer; and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. IMP. PROJECT 760 President Enck introduced for discussion Item 6, Resolution approving purchase Item 6 agreement and relocation benefits 5400 Winnetka Avenue North (improvement project 760). Mr. Ken Doresky, Commtmity Development Specialist, stated the city's purchase offer will now consist of the appraised value and a relocation payment determined by the city's relocation consultant. The relocation cost estimate is $56,250 for this property, but will be adjusted when the property owner moves and completes the purchase of another property (actual closing costs will be used proportionate to the purchase price of the subject property). He reported that Steve Carlson from Evergreen Land Services, is in attendance at the meeting to answer any questions related to relocation payments. Ms. Carol Cline, 5400 Winnetka Avenue North, addressed the council. She expressed her displeasure of being forced out of her home, but stated she understands the city's reason for the redevelopment. New Hope EDA Page 3 January 26, 2004 Mayor Enck empathized with Ms. Cline and commented that even leaving one's home on a voluntary basis can be difficult. EDA RESOLUTION Commissioner Sommer introduced the following resolution and moved its adoption 04-04 "RESOLUTION APPROVING PURCHASE AGREEMENT AND Item 6' -- RELOCATION BENEFITS 5400 WINNETKA AVENUE NORTH (IMPROVEMENT PROJECT 760).' The motion for the adoption of the foregoing resolution was seconded by Commissioner Gwin-Lenth, and upon vote being taken thereon, the following voted in favor thereof: Enck, Cassen, Collier, Gwin-Lenth, Sommer; and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. IMP. PROJECT 755 President Enck introduced for discussion Item 7, Resolution approving purchase Item 7 agreement and relocation benefits 5440 Winnetka Avenue North (improvement project 755). Mr. Steve Carlson, Evergreen Land Services, explained the aspects of mortgage differentials and how the city would have to buy down rates if a homeowner had to enter into a mortgage at a higher rate than their existing mortgage rate. EDA RESOLUTION Commissioner Collier introduced the following resolution and moved its adoption 04-05 "RESOLUTION APPROVING PURCHASE AGREEMENT AND Item 7 RELOCATION BENEFITS 5440 WINNETKA AVENUE NORTH (IMPROVEMENT PROJECT 755)." The motion for the adoption of the foregoing resolution was seconded by Commissioner Gwin-Lenth, and upon vote being taken thereon, thc following voted in favor thereof: Enck, Cassen, Collier, Gwin-Lenth, Sommer; and the following voted against thc same: None; Abstained: None; Absent: None; whereupon thc resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. IMP. PROJECT 723 President Enck introduced for discussion Item 8, Discussion regarding 7615 Bass Item 8 Lake Road (New Hope Alano), .purchase price, relocation benefits, and request to purchase city-owned property at 7601-41 62"~ Avenue North (improvement project 723). Mr. Kirk McDonald, Community Development Director, stated over the past year, staffhas met with the New Hope Alano Group to discuss the potential acquisition of their property and relocation options. Staff last met with Alano on December 22, 2003. Staff requests EDA discussion and direction regarding the 7615 Bass Lake Road (New Hope Alano) purchase price/appraised value, relocation benefits and request to purchase city-owned property at 7601/-z)A..~6~a Avenue North. He stated New Hope Alano Group is willing to accept the(~_l$415,0.00 ....... appraised value and the estimated relocation benefits of $35,000. ~/(05~ Gr~)' Mr. McDonald reported that Alano's main concern is relocation. They would like to relocate as close as possible to their current location. Over the past several months, staff has met with Alano and presented many relocation options. Staff strongly recommended that they coordinate with the developer of the proposed office condominium units at 42"d and Quebec Avenue North. Alano has seriously considered this option, but feel that city assistance in addition to the purchase price and relocation estimate would be required. Alano is requesting that the city consider selling them the city-owned property at 7601-7641 62"° Avenue North to conslamct a new facility. New Hope EDA Page 4 January 26, 2004 Staff is seeking Council direction on Alano's request for financial assistance to relocate to the office condominium development at 42~d and Quebec Avenues North and their request to purchase the city-owned property at 7601-7641 62~d Avenue North. The EDA expressed concern regarding the sale of the property on 62nd Avenue as it may restrict a future project at that site. The importance of not deviating from the 1998 comprehensive plan was also pointed out. The EDA discussed the 42nd/Quebec Avenue site as a possibility for the New Hope Alano. Parking needs for Alano as well as for nearby restaurants were discussed. Mr. Fred Boyes, representing New Hope Alano, was recognized. He stated he has been involved with New Hope Alano for 28 years. He mentioned they recently remodeled and would not voluntarily have chosen to relocate. He acknowledged the city's redevelopment efforts, and stated he has been pleased with the assistance provided by the city. He noted they have considered 15 properties so far. The EDA recommended that Alano submit a detailed request for potential assistance needed to relocate in a new facility at 42~ and Quebec. MOTION Motion was made by Commissioner Sommer, seconded by Commission Gwin- IMP. PROJECT 723 Lenth, authorizing staff to proceed with the purchase of 7615 Bass Lake Road, Item 8 and requested more information from the Alano Group regarding a potential relocation to the 42aa/Quebec site. All present voted in favor. Motion carried. IMP. PROJECT 733 President Enck introduced for discussion Item 9, Resolution authorizing approval of Item 9 a term sheet between the New Hope Economic Development Authority and Armory Development II, LLC for the redevelopment of the former Frank's Nursery Property, 5620 winnetka Avenue North (improvement project no. 733). Mr. Kirk McDonald, Director of Community Development, stated the city has been discussing a potential redevelopment with Armory Development at the 5620 Winnetka Avenue site for over a year. A tax increment financing analysis has been completed and staff/consultants have been negotiating with the developer over the past month on proposed terms of agreement with the city to assist with financing. If the EDA is supportive of the project and the city assistance, staff recommends approval of the term sheet. The next steps would include initiating the creation of a TIF district, approval of a development agreement and starting the planning approval process for the townhome development. President Enck noted he had viewed a similar townhome development at 77th and Lyndale and was concerned with the limited parking (one-stall garages). He noted the EDA has not yet seen definitive plans from Annory Development. Mr. Jim Casserly, Krass Monroe, explained that the entire site can be controlled by one contract. He stated it is a very straight forward proposal with up front assistance of $400,000 and the balance in the form of a revenue note. He stated 35% of increment generated by the new value will be pledged to repayment of the revenue note. He stated this project will generate a positive amount of increment, and because of the new legislation the city is able to use the proceeds for other redevelopment projects. Ma. Doug Hoskin, Armory Development II, LLC, was recognized. He stated of the 44 units, 14 will have single garages and 30 will accommodate two vehicles. He explained that all garages are only one-car wide but some will be deep enough to New Hope EDA Page 5 January 26, 2004 accommodate two vehicles. He noted there will be a small area for visitor parking, and visitors or extra vehicles can be parked in the driveway spaces. Discussion ensued regarding unit prices, storm water issues, density, and green space. Mr. McDonald reminded the EDA that the issue before them tonight is approval of the term sheet. He reported that a site plan will be provided at a later date. President Enck opened the floor for comments. Katen Nolte, 8232 Northwood Parkway, was recognized. She inquired regarding th6 square footage of the umts. Mr. Hoskin reported that the units will range from 1150 square feet to 1940 square feet. EDA RESOLUTION Commissioner Sonmaer introduced the following resolution and moved its adoption 04-06 "RESOLUTION AUTHORIZING APPROVAL OF A TERM SHEET Item 9 BETWEEN THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY AND ARMORY DEVELOPMENT H, LLC FOR THE REDEVELOPMENT OF THE FORMER FRANK'S NURSERY PROPERTY, 5620 WINNETKA AVENUE NORTH (IMPROVEMENT PROJECT NO. 733)." Thc motion for the adoption of the foregoing resolution was seconded by Commissioner Gwin- Lenth, and upon vote being taken thereon, the following voted in favor thereof: Enck, Cassen, Collier, Gwin-Lenth, Sommer; and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and .adopted, signed by the president which was attested to by the executive director. IMP. PROJECT754 President Enck introduced for discussion Item 10, Update on potential Item 10 redevelopment by Bear Creek Capital and CVS Pharmacy (improvement project no. 754). Mr. Kirk McDonald, Director of Community Development, stated the city has been coordinating with Bear Creek Capital/CVS Pharmacy over the past eight months regarding a potential redevelopment at the southwest quadrant of Bass Lake Road and Winnetka Avenue. The redevelopment would be in two phases, with the first phase involving the construction of a CVS Pharmacy store and ancillary retail development. The first phase would include the acquisition by CVS of three parcels in the area: a residential property at 5539/5549 Winnetka and a commercial property at 7901 Bass Lake Road. Appraisals of all three parcels were completed in October 2003, and at the October 27 EDA meeting, the EDA authorized staff to meet with the developers and the property owners to facilitate the potential property acquisition. Mr. McDonald reported that a successful meeting, facilitated by the city, Was recently conducted between the property owners of 5539/5549 Winnetka and the developer and correspondence has been exchanged outlining the terms of a purchase contract. Regarding the 7901 Bass Lake Road, Mr. McDonald stated Sinclair Corporation has not been willing to meet with representatives of the city or the developer up to this point. The attorney representing Sinclair requested additional information on the project, which the city provided, and they are in the process of having their own appraisal completed. Sinclair has indicated that they would meet with the developer and city once the appraisal is done. More recently, there has been some direct negotiation between the developer and Sinclair. City staff has indicated it would much prefer that the developer acquire the property voluntarily on a willing seller New Hope EDA Page 6 January 26, 2004 basis. Mr. McDonald stated CVS has indicated that this is its £n'st choice for development in the New Hope area. Also, CVS has begam to actively market its development to other commercial users and are close to reaching an agreement with a casual dining establishment as part of the ancillary development. Once the property acquisition process is better defined, a more detailed site planning process will begin, which will include a review of the area storm water analysis and discussions with adjacent property owners, including District 281. It is the inten6on of CVS to start consmaction this spring if the property can be acquired and other approvals received. Mr. McDonald commented that if the redevelopment would proceed, the city would want to examine the potential of creating a new tax increment financing district to capture the increased value of the redevelopment for use on other redevelopment projects in the Livable Communities The EDA thanked Mr. McDonald for the update. ADJOURNMENT Motion was .made by Commissioner Collier, seconded by Commissioner Sommer, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 9:15 p.m. Re.~ect~lly submitted, Valerie Leone City Clerk New Hope EDA Page 7 January 26, 2004 EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development 2-9-04 EDA Item No. By: Kirk McDonald, Director of CD 4 & Ken Doresky, CD Specialist By: RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS 5538 SUMTER AVENUE NORTH (IMPROVEMENT PROJECT FILE 765) REQUESTED ACTION Staff recommends EDA approval of a resolution prepared by the city attorney approving the purchase of the property located at 5538 Sumter Avenue North. The appraisal for the property is $175,000. The differential estimate is $19,700 and closing and moving costs are estimated at $5,800. The owner is requesting $185,000 paid at the closing and a $9,700 differential payment. Of course, he would be required to purchase a home that is at least $199,700 to take advantage of the full differential payment. Finally, the owner is requesting that the city take responsibility to seal the well (estimated $400) and pay for mortgage recording fees (estimated $80). Please see the attached city attorney correspondence regarding this request. 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 property in areas designated for redevelopment in the Comprehensive Plan. BACKGROUND At the November 3, 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 December 30, staff, the city attorney and Evergreen Land Services met with the property owner to discuss the acquisition process. The appraisal and relocation estimate have been completed and are attached. Staff recommends approval of the attached 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 Session, the city's TIF special legislation was passed. In December 2003, the district was approved by the City Council. / h\RFA\PLANNING\Housi'n~\7643\Q-, 7643,, Bass Lake Road, Purch,gse Ac, lreement.doc, Request for Action Page 2 2-9-04 A'I-I'ACHMENTS Resolution · Purchase Agreement & Relocation Data · City Attorney Correspondence, 2-5-04 · Owner Correspondence, 2-4-04 · Appraisal · Location'Map/City Ownership Map · Hennepin County Parcel Data Provided in past Council reports relating to the east Winnetka redevelopment area: · Topographic Map · Section Map · Comprehensive Plan References- Planning District 6 EDA ITEM 4 (February 9, 2004) JENSEN & SONDRALL, P.A. Attorneys At LaW 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443-1968 TELEPHONE (763) 424-8811 · TELEFAX (763) 493-5193 e-mail law~jensen-sondrall.com DOUGLAS J. DEBNER2 GORI~ON L. JENSENl GLEN A. NORTON sx~wn n. SOnDanLL February 5, 2004 STACY A. WOOl,S OF COI3NSEL Ken Doresky LORENS Q. BRYN~.STAI~ Community Development Specialist City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 RE: Acquisition of 5538 Sumter Avenue/John Dore Our File: 99.11306 Dear Ken: Attached please find for consideration at the February 9, 2004 EDA meeting a proposed Resolution Approving Purchase Agreement and Relocation Benefits (5538 Sumter Avenue North). The resolution and purchase agreement incorporates our agreement with John Dore as we discussed in our phone conversation with Mr. Dore on February 4th. Basically, our appraisal established a market value of $175,000.00 for this property. The relocation benefit analysis indicated the owner was also entitled to a $19,700.00 differential payment for the purchase of a replacement property. Mr. Dore wanted the purchase price set at $185,000.00. We have agreed to do this in return for his agreement the differential payment will be reduced accordingly to $9,700.00. This understanding is now incorporated into the resolution and our purchase agreement with Mr. Dore. Basically, this agreement will not affect the cost the EDA will need to pay for the property. Our only exposure would be if Mr. Dore did not purchase a replacement property for a cost equal to or exceeding $185,000.00. He has advised us he is making an offer for a property near his present home for a cost of $195,000.00. It's unlikely the cost of Mr. Dore's replacement property will not exceed $185,000.00. We have also agreed to pay the cost to cap the well on the property and pay all recording fees. However, Mr. Dore will pay the state deed tax, the cost for the commitment for title insurance and his pro rata share of 2004 real estate taxes. He also has two mortgages against the property which will need to be satisfied. He understands those payments will be deducted from his proceeds at the time of the closing as well. Please contact me if you have any further questions concerning the purchase agreement or this resolution. 'Real Property Law Specialist Certified By The Minnesota State ~Admitted in Iowa February 5, 2004 Page 2 Very truly yours, Steven A. Sondrall, City ^ttomey, City of New Hope JENSEN & SONDRALL, P.A. sas~jcnsen-sondmli .eom After Hours Extension//147 Enclosure(s) cc: Kirk McDonald Valerie Leone P:\Attorney\SAS\2 City of New Hope\99-11306~ltr K. Dore. sky re re. so approving PA.doe CITY OF NEW HOPE EDA RESOLUTION NO. 04 - RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS 5538 Sumter 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 John E. Dore and Deborah R. Dore ("Owners"), Owners of certain real estate known as 5538 Sumter Avenue North (the "Property"); and WHEREAS, appraisers hired by the New Hope EDA valued the Property at $175,000.00 as of December 8, 2003; and WHEREAS, the Owners are willing to sell the Property to the New Hope EDA for the sum of $185,000.00 as set forth in the Purchase Agreement attached hereto as Exhibit A and incorporated herein by reference; and WHEREAS, the New Hope EDA herby approves the Purchase Agreement with the understanding relocation assistance benefits will be paid to the Owners as required by both State and Federal law; 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 for the Owners herein and has determined the estimated maximum relocation benefit payable to Owners is $25,500.00 (analysis attached as Exhibit B) based on a $175,000.00 acquisition price of the subject property and a $19,700.00 "differential payment" for a replacement property; and WHEREAS, Owners have acknowledged and agree the "differential payment" will be reduced to $9,700.00 due to the $10,000.00 increase to the acquisition cost of the subject property and the maximum relocation benefit will be reduced to $15,500.00 for the same reason. Owners further acknowledge and agree the final and actual cost for the relocation benefits payable to the Owners will be determined when the final and actual purchase price, closing costs and moving expenses in connection with their replacement property are determined by Evergreen Land Services Company; and WHEREAS, it is in the best interest of the New Hope EDA to purchase the Property from the Owners for the sum of $185,000.00, with other terms and conditions as set forth in the Purchase Agreement and to pay the required relocation benefits. 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 John E. Dore and Deborah R. Dore for the sum of $185,000.00, with other terms and conditions as set forth in the Purchase Agreement attached hereto as Exhibit A, is approved. 3. The adjusted maximum relocation benefit payable to the Owners, based on the $185,000.00 acquisition price, estimated to be $19,500.00 including a "differential payment" of $9,700.00.00 is hereby approved. The final amount shall be established by Evergreen Land Services Company after the actual purchase price, moving expenses and closing costs for the Owners replacement property are determined by Evergreen Land Services. 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 said Purchase Agreement. Dated the 9t~ day of February, 2004. W. Peter Enck, President Attest: Daniel J. Donahue, Executive Director P:\Attorney\Cnh Resolutions\99.11300-001--Reso Approv PA-5400 Winnetka Avenue.doc 2 Minnesota Standard Residential Purchase Agreement MINNESOTA STANDARD RESIDENTIAL PURCHASE AG © Copyright 1996, 1997, 2002 by Minnesota State Bar Association. Minneapolis, Minnesota BEFORE YOU USE OR SIGN THiS CONTRACT, YOU SHOULD CONSULT WiTH A LAWYER TO DETERMINE THAT THIS CONTRACT ADEQUATELY PROTECTS YOUR LEGAL RIGHTS. Minnesota State Bar Association discJaims any liability arising out of the use of this form. 1 1, PARTIES. This Purchase Agreement is made on Fchr~? .2004 , by and between 2 I~hn E. Dore and Deborah R Dore [madtal status] hI.L~and and ~:.[t~'¢ _ 3 of[seller's address] 553R ~nmter Avent~c~orth, New Hope. Minnesota.42§ , SELLER, and 4 _ the Ecnnnm c Develoment Authority. ("FDA") iff and for the Ci.ty of New Hope. , 5x:i~li~llll~ll]l[~ [buyer's address] _4401 X¥1on Avenue North~ N~ec~LHope. Minnegora 55428_ ............. BUYER 6 7 2. OFFER/ACCEPTANCE. Buyer offers to purchase and Seller agrees to sell real property legally described as: S SEE EXHIBIT A ATT/~CHED HER ETO fO 1 ~ [Property Tax Identification Number or Tax Parcel Number .~3-002~L~ ] ~2 13 located at 5538Sumter Arenas. North , City of Ne~Hctp~ 14 County of HennCPm . , State of Minnesota, Zip Code 55428 _ . 15 16 3. ACCEPTANCE DEADLINE. The acceptance date of this Purchase Agreement is the date it is delivered by the last party signing to the other 17 party. This offer to purchase, unless accepted sooner, shall be void at 11:59 A.M., on [date] 200-L .... 18 and in such event alt earnest money shall be refunded to Buyer. 19 20 4. PERSONAL PROPERTY AND FIXTURES INCLUDED IN SALE. The following items of personal property and fixtures owned by Seller 21 and currently located on the real property are included in this sale [Stdke out items not included]: garden bulbs, plants, shrubs, trees, storm 22 windows and inserts, storm doom, screens, awnings, window shades, blinds, curtain-traverse-drapery rods, attached lighting fixtures with 23 bulbs, plumbing fixtures, sump pumps, water heaters, heating systems, heating stoves, fireplace inserts, fireplace doors and screens, Duilt-i~ 24 humidifiers, built-in air conditioning units, built-in electronic air filters, automatic garage door openers with controls, television antennas. 25 water softeners, built-in dishwashers, garbage disposals, built-in trash compactors, built-in ovens and cooking stoves, hood-fans, intercoms, 26 installed carpeting, work benches, security systems, and also the following property: 27 28 29 Upon delivery of the Deed, Seller shall also deliver a Warranty Bill of Sale for the above personal property. [Check the box if the 30 provision applies to this Purchase Agreement:] [] Seltsr shall use M.S.B.A. Real Property Form No. 90 (1997). Warranty Bil~ of Sa~e 31 32 5. PRICE AND TERMS. The price for the real and personal property included in this sale is 33 - One Hundred Eight-Five T~ 00/10O Dollars 34 Dollars ($185:00IZ00 ),which Buyer shall pay as follows: 35 36 Earnest money of $ .__ 0.00 by [~R]2t[ ~1(~31(, ]ll3]r,E - state which] 2~2~,.xxxx~xxxx×x_~'c~;.xx~,c~',c,7,~;x.~,; payable to 37 [se/oct one;] 38 [] Seller, to be deposited and held by Seller (and may be commingled with Seller's other funds) pending closing. 39U Seller's lawyer, to be deposited and held in the lawyer's trust account pending closing, 40 Seller's broker, to be deposited or held by broker according to the requirements of Minnesota Statutes, 41 Other [describe how tho earnest money will be i~eld] _ 42 43 receipt of which is hereby acknowledged and $ 185~000.00 cash, on .20~ , the DATE OF CLOSING, and 44 the balanca of $ 0.00_ by financing as shown on the attached Financing Addendum. 45 46 6. DEED/MARKETABLE TITLE. Upon performance by Buyer, Seller shall execute and deliver a Warranty Deed, joined 47 in by spouse, if any, conveying marketable title of recerd, subject to: 48 A, Building end zoning laws, ordinances, state and federal regulations; 49 B. Restrictions relating to use or improvement of the real property without effective forfeiture provisions; 5o C.Reservation of any mineral rights by the State of Minnesota; 51 D. Utility and drainage easements which do not interfere with existing improvements; 52 E. Exceptions to title which censtitute encumbrances, restrictions, or easements which have been disclosed to Buyer and accepted by Buyer 53 in this Purchase Agreement [must be specified in w#ting]: 54 7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Real estate taxes due and payable in and for the year of closing shall be pro- 55 rated between Seller and Buyer on a calendar year basis to the actual Date of Closing, unless otherwise provided in this Purchase Agreement. 56 If tax statements for such taxes are not available on the Date of Closing, the amount to be prorated shall be .... % of the prier year's taxes, 57 and such estimated proration shall be [strike one] FULL AND FINAL BETWEEN SELLER AND BUYER / 58 T~[~"I~[3~3~X'~;EJ~E3~J~(~C~ (in which case the party entitled to a credit as a result of the adjustment shall receive 59 the amount of such credit fTom the other party within 30 days of issuance of the tax statements). Seller represents the taxes due and payable in the 60 year(s) 2004 will be FULL. IM~'r ]~E~-homestead classification, untess Buyer changes the tax classification for taxes ~1 payable in the year following closing by taking possession of the real property as Buyer's homestead and filing a new homestead declaration within 62 the time required by law. If the taxes due and payable in the year of closing are PART or NON-homestead classification, Seller shall pay to I~uyer 63 at ctesing ~ , in addition to Seller's prorated share of the taxes. If the taxes due and payable in the year 64 following closing are PART or NON-homestead classification and the closing takes place after the date by which Buyer must take possession 65 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 s6 closing $ as Seller's share of such taxes. 67 68 [Strike one:] BIJ~E]t,I~I~,~BX]I~EX~XXI(E,~b~CI(~(X~X~G / SELLER SHALL PAY ON DATE OF CLOSING 69 all installments of special assessments certified for payment with the real estate taxes due and payable in the year of closing. 70 [Strike one;] B(.J~'~ll~[3~l~X / SELLER SHALL PAY ON DATE OF CLOSING all other special assessments levied as of the 71 date of this Purchase Agreement. 72 [Strike one:] B(,I~][~g~(X / SELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as of the date of 73 this Purchase Agreement for improvements that have been ordered by the City Council or other governmental assessing authorities. (Seller's 74 provision for payment shell be by payment into escrow of 1-1i2 times the estimated amount of the assessments3 As of the date of this 75 Purchase Agreement, Seller represents that Seller has not received a Notice of Hearing of a new public improvement project from any 76 governmental assessing authority, the costs of which project may be assessed against the real property. If a special assessment becomes 77 pending after the date of this Purchase Agreement and before the Date of Closing, Buyer may, at Buyer's option: 78 A. Assume payment of the pending special assessment without adjustment to the purchase pdce of the reel property; or, 79 B, Require Setter to pay the pending special assessment (or escrow for payment of same as provided above) and Buyer shall pay a commen- 80 surate increase in the purchase price of the real property, which increase shall be the same aa the estimated amount of the assessment; 81 C. or Declare this Purchase Agreement void by notice to Seller, and earnest money shall be refunded to Buyer. Miller/Davis Co., SL Paul, MN-Form 1300 (1994; Rev. 1996; Rev. 1997; Rev. 2002) M.S.B.A. Real Property Form Nc. 1 Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT / PAGE 2 82 [Stffke one:] ~{~[~[aO~X~ I SELLER SHALL PAY ON DATE OF CLOSING any deferred real estate taxes (including "Green 83 Acres" taxes under Minn. Stat. 273.111 ) or special assessments payment of which is required as a result of the closing of this sale. 84 Buyer shall pay real estate taxes due and payable in the year following closing and thereafter and any unpaid special assessments payat~le 85 therewith and thereafter, the payment of which is not otherwise provided herein. Seller makes no representation concerning the amount of future 86 real estate taxes or of future special assessments. 87 88 8. DAMAGES TO REAL PROPERTY. If the real property is substantially damaged prior to closing, this Purchase Agreement sha~l terminate 89 and the earnest money shall be refunded to Buyer. If the real property is damaged materially but less than substantially prier to closing, 90 Buyer may rescind this Purchase Agreement by notice to Seller within 21 days after Seller notifies Buyer of such damage, during which 91 21-day period Buyer may inspect the real property, and in the event of such rescission, the earnest money shall be refunded to Buyer. 92 93 9. SELLER'S BOUNDARY LINE, ACCESS, RESTRICTIONS AND LIEN WARRANTIES. Seller warrants that buildings, if any, are entirely within the 94 boundarylines of the real proper~y. Seller warrants that ii, ere is a right of acsess to the real property from a p~blic dght of way. Seller warrants that ttlere has been no labor 95 or matedal furnished to the real property for which payment has not been macJe. Seller warrants that there are no present violations of any restrictions relating to the use or 96 improvement of the real property. These warranties shall survive the delivery of the Deed or Contract for Deed. 97 98 10. CONDITION OF PROPERTY'. 99 100 A. Seller warrants that all appliances, fixtures, heating and air conditioning equipment, fireplaces (including mechanisms, dampers, flues, and 101 doors), widng, and plumbing used and located on the real property will be in working order on the Date of Closing. Seller shall remove all 102 debds, and all personal property not included in this sale from the real property before possession date. Seller has no knowledge of any 103 Dutch elm disease, oak wilt, or other disease of any trees on the real property. 104 105 B. Seller knows of no hazardous substances or petroleum products having been placed, stored, or released Eom or on the real proper~'y by any 106 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: 107 108 109 110 111 112 C. Seller's warranties and representations contained in this paragraph 10 shall survive the delivery of the Deed or Contract for Deed. Any action 113 based upon these warranties and representations must be commenced within two years after the date on which the buyer closed on the 114 purchase of the real property. 115 116 D. Buyer shall have the right to have inspections of the property conducted prior to closing. Unless required by local ordinance or lending 117 regulations, Seller does not plan to have the property inspected. 118 119 E. Statutory Disclosure. Pursuant to Minnesota Statutes sections 513,52 - 513.60 (effective January 1, 2003), Seller must provide a written 120 disclosure [see (1) below], or Buyer must have received an inspection report [see (2) below], or Buyer and Seller may waive the written 12'i disclosure requirements [see (3) below]. 122 123 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 124 the condition of the mai property is liable to the prospective buyer. A person injured by a violation of this section may bnng a civil action and recover 125 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 126 on which the prospective buyer closed the purchase or transfer of the real property. 127 128 S~lect only one of these three:] 129 ~.J (1) Seller's Disclosure. Seller has provided a written disclosure to Buyer. A copy of Seller's disclosure is attached. Seller shaJI correct in 130 writing any inaccuracies in the disclosure as soon as reasonably possible before closing. 131 132 Minnesota Statutes Section 513.55. GENERAL DISCLOSURE REQUIREMENTS. 133 Subdivision 1. CONTENTS. 134 (a) Before signing an agreement to sell or transfer residential real property, the seller shall make a written disclosure to the prospective buyer The 135 disclosure must include all material facts pertaining to adverse physical conditions in the property of which the seller is aware that could adversely and 136 significantly affect: 137 (t) an ordinary buyer's use and enjoyment of the property; or, 138 (2) any intended use of the property of which the seller is aware. 139 Co) The disclosure must be made in good faith and based upon the best of the seller's knowledge at the time of the disclosure. 140 141 Minnesota Statutes Section 513.58. AMENDMENT TO DISCLOSURE. 142 Subdivision 1. NOTICE. A seller must notify the prospective buyer in writing as soon as reasonably possible, but In any event betbre closing, if the seller 143 learns that the seller's disclosure required by section 513.55 was inaccurate. 144 Subdivision 2. FAILURE TO NOTIFY; LIABILITY. A seller who fails to notify the prospective buyer of any amendments to the initial disclosure required 145 under subdivision 1 is liable to the prospective buyer as provided in section 513.57. 146 147 [] (2) Inspection Report. Buyer has received an inspection report by a qualified third-party, if a copy of the inspection report is provided to 148 Seller, Seller shall disclose to Buyer matedal facts known to Seller that contradict any information in the inspection report. 149 150 Minnesota Statutes Section 513.56 Subd. 3. INSPECTIONS. 151 (a) Except as provided in paragraph Co), a seller is not required to disclose information relating to the physical condition of the real property if a written 152 report that discloses the information has been prepared by a qualified third party and provided to the prospective buyer. For purposes of this paragraph, 153 "qualified third party" means a federal, state, or local governmental agency, or any person whom the seller, or prospective buyer, reasonably believes has 154 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 155 order to prepare the written report. 156 (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 157 paragraph (a) ifa copy of the report is provided to the seller. 158 159 ~ (3) Waiver of Disclosure. 16o 161 Minnesota Statutes Section 513.60. WAIVER. The written disclosure required under sections 513.55. to 513.60 may be waived if the seller and the 162 prospective buyer agree in writing. Waiver of the disclosure required under sections 513.52 to 513.60 does not waive, limit, or abridge any obligation for 163 seller disclosure created by any other law. 164 tss Seller and Buyer waive the written disclosure required under sections 51 3.52 to 513.60. 166 167 t6s SELLER: BUYER; 169 John E. Dore W. Peter Enck, President, New Hope EDA 170 171 172 SELLER; BUYER: 173 Deborah R. Dore Daniel J. Donahue, Executive Director, New Hope EDA Miller/Davis Co., SL Paul, MN-Form 1300 (1994; Rev. 1996; Rev. 1997; Rev. 2002) M.S.B.A. Real Property Form No. 1 Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT / PAGE 3 174 Other than the warranties and representations made in this paragraph 10, the property is being sold "AS IS" with no express or implied 175 representations or warranties by Seller as to physical conditions, qualify of construction, workmanship, or fitness for any particular purpose. (This 176 paragraph is not intended to waive or limit any provisions of Minn. Stat., Chapter 327A.) 177 178 1'1. DISCLOSURE OF NOTICES. Seller has not received any notice fi.om any governmental authorify as to violation of any law, ordinance or 179 regulation affecting the real property. If the reel property is subject to restrictive covenants, Seller has not received any notice fi.om any person as 180 to a breach of the covenants. Seller has not received any notice from any governmental authodfy concerning any eminent domain, condemnation, 181 special taxing district, or rezoning proceedings. 182 183 12. TRUTH-IN-HOUSING. Buyer acknowledges receipt of the Truth-in-Housing Disclosure Report or other inspection report if required by the ~184 municipatify in which the real property is located. 185 186 13. POSSESSION. Seller shall deliver possession of the property not later than the date OJE _ closing. All interest, fuel oil, liquid petroleum 187 gas and all charges for cify water, cify sewer, electricity, and natural gas shall be prorated between the parties as of the date o£closi.~g. 188 189 t4. EXAMINATION OF TITLE. To demonstrate that Seller's title is good and marketable of record, within a reasonable t~rne after eccentance of 190 Purchase Agreement. Seller shall furnish Buyer with an Abstract of Title or a Regisrerad Property Abstract certified to date including proper searches covei~n~ 191 bankruptcies and state and federal judgments, federal court judgment liens in favor of the U.S., liens, and levied and pending special assessments. Buyer shall 192 have ten (10) business days after receipt of the Abstract of Title or Registered Property Abstract either to have Buyer's lawyer examine the title and prowde 193 Seller with written objections or. at Buyer's own expense, to make an application for a title insurance policy and notify Seller of the application. Buyer shall have 194 ten {101 business days after receipt of the Commitment for Title Insurance to provide Seller with a copy of the Commitment and written object~ons Buyer shall 195 be deemed to have waived any title objections not made within the ten (10~ day period above, except that th*s shall not operate as a waiver of Seller's covenant 196 to deliver a statutory Warranty Deed, unless a Warranty Deed is not specified above. If Buyer obtains title insurance, Buyer ~s not wa*ving the r~ght to Obtain 197 good and marketable title of record from Seller. 198 199 18. TITLE CORRECTIONS AND REMEDIES. Seller shall have 120 days from receipt of Buyer's wdtten title objections to make title marketable. 200 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 201 the 120 day period. Liens or encumbrances for liquidated amounts which can be released by payment or escrow from proceeds of closing shall not 202 delay the closing. Cure of the defects by Seller shall be reasonable, diligent, and prompt. Pending correction of title, ali payments required herein 203 and the closing shall be postponed. 204 A. If notice is given and Seller makes title marketable, then upon presentation to Buyer and proposed lender of documentation establishing that 205 title has been made marketable, and if not objected to in the same time and manner as the odginal title objections, the closing shall take place 206 within ten (10) business days or on the scheduled closing date, whichever is later. 2082°7 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, 209 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. 210 C. If Seller does not give notice of intention to make title marketable, or if notice is given but the 120 day pedod expires without title being made 212211 marketable due to Seller's failure to proceed in good faith, Buyer may seek, as permitted by law, one or more of the following: 213 1. Proceed to closing without waiver or merger in the Deed of the objections to title and without waiver of any remedies, and may: 214 (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 215 (b) Undertake proceedings to correct the objections to title; 217216 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; 218 3. Damages fi.om Seller together with costs and reasonable lawyer's fees, as permitted by law; 219 4. Specific performance within six months after such dght of action arises. 22122° 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 222 the following options, as permitted by law: 223 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 224 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 dght of action arises, including costs and reasonable lawyer's fees, as permitted by law 225 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: 226 1. Seek damages fi.om Seller including costs and reasonable lawyer's fees; 227 228 2. Seek specific performance within six months after such dght of action adses. 229 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 230 if mailed, are effective as of the date of mailing. ' 231 232 17. SUBDIVISION OF LAND. If this sale constitutes or requires a subdivision of land owned by Seller, Seller shall pay all subdivision expenses anc~ 233 obtain all necessary governmental approvals. Seller warrants that the legal description of the real property to be conveyed has been or will be 234 approved for recording as of the Date of Closing. 235 236 18. MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota. 237 238 '19. WELL DISCLOSURE. [Check one of the following:] 239 Seller certJfios that Seller does not know of any wells on the real property 240 ~' Wells on the real property are disclosed by Seller on the attached Well Disclosure form. 241 242 20. SEWAGE TREATMENT SYSTEM DISCLOSURE. 243 [Ch~ either A or 244 A. Seller certifies that sewage generated at the property goes to a facility permitted by the Minnesota Pollution Control Agency (for 245 example, a clfy or municipal sewer system). 246 __ B. Seller certifies that sewage generated at the property does not go to a facitify permitted by the Minnesota Pollution Control Agency 247 and Seller's Disclosure of Individual Sewage Treatment System is attached (attach form). 248 [Check either C or D:] 249 __ C. Seller does not know if there is an abandoned individual sewage treatment system on the property. 250 __ D. Seller knows that there [strfke one:] are I are no abandoned individual sewage treatment systems on the property If Seller 251 discloses the existence of an abandoned individual sewage treatment system on the property, then Minnesota law requires that the 252 location of the system be disclosed to Buyer with a map. [Attach Seller's Disclosure of Individual Sewage Treatment System with map 253 comp/ered.] 254 21. LEAD PAINT DISCLOSURE. [Check one of the following:[ 255 Seller represents that the dwelling was constructed on the real property in 1978 or later. 256 ~ Seller represents that the dwelling was constructed on the real property before 1978. (If such housing is located on the real prop- arty, 257 attached and made a part of this Purchase Agreement is "LEAD PAINT ADDENDUM FOR HOUSING CONSTRUCTED BEFORE 1978") 258 259 22. WETLANDS, SHORELAND, AND FLOOD PLAIN CONCERNS. Currently the law does not require Seller to disclose Seller's knowledge, if 26o any, of the existence of wetlands, shoreland, or flood plain on or affecting the real property. If Buyer has not already investigated these 261 concerns, Buyer might want to include Seller's disclosures regarding these concerns. [Check the box if the following provision applies to this Purchase Agreement:] [] ADDENDUM 262 TO PURCHASE AGREEMENT: WETLANDS, SHORELAND AND FLOOD PLAIN DISCLOSURE, M.S.B.A, Real Property Form No. 8 (1997) is 263 included as an addendum to this Purchase Agreement. ' 264 265 23. SELLER'S AFFIDAVIT. At closing, Seller shall supplement the warranties and representations in this Purchase Agreement by executing and 266 delivering a Minnesota Uniform Conveyanclng Blank [Form No. 116-M, 117-M, or 118-M] Affidavit of Seller. 267 Miller/Davis Co., St. Paul, MN-Form 1300 (19~4; Rev. 1996; Rev. 1997; Rev. 2002) M.S.B.A. Real Property Form No. 1 Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT / PAGE 4 268 24. CLOSING. Closing shall be at the office of Seller's lawyer, Buyer's title insurer, or at some other mutually agreeable location. 269 270 [State otherlocation:] 'New Hope C..i~ Hall 4401 ~'ylon Avenue 'North_ 'New Hope. Minnesota 271 At closing, Seller and Buyer shall disclose their Social Secudty Numbers or Federal Tax Identification Numbers for the purposes of completing 272 state and federal tax forms. 273 274 25. ADDITIONAL"[ERMS: * 14- EXAMINATION OF TITLE. Buyer shall obtain: at Seller's expense~ a Commitment for an 275 Owner's Policy of Title Insurance on a current ALTA form issued by an insurer licensed to write title insurance_ in M inneso[a. 276 Seller shall be responsible for pa,vrnent of those costs necessary, to prepare such Commitment. including but no[ limited to 277 abstractin~ fees: name search fees: service eharges; etc. Buyer shall pay the premium for the Owner's Polj~f~t[e_]l~sv2'allce. 278 Buyer shall have ten (I0) business days after receipt of the Commitment for Title Insurance to provide Seller~/JlJ~a_.co3~_~f thc 279 Commitment and written objections. Buyer ~hall be deemed to have waived any title o~ectioJ~_jloLmade ~thintbe_ten ( I 0) da3 280 period above: except that this shall not operate as a waiver of Seller's covenanLto ~lelLYer a statutoo' Warrant), Deed, unless a 281 Warranty, Deed is not specified above. If Buyer~blains. title insurance, BJJ3~ex is not waiving the right to obtain a good and 282 marketable title of record from Seller .... 283 284 285 286 287 26. ADDENDA. Attached are__ addenda which are made a part of this Purchase Agreement. 288 28g 27. TIME IS OF THE ESSENCE. Time is of the essence for all provisions of this Purchase Agreement. 2g0 291 28. MULTIPLE ORIGINALS. Seller and Buyer have signed [number] 3 originals of this Purchase Agreement. 292 293 294 295 296 297 I THIS IS A LEGALLY BINDING CONTRACT. BEFORE SIGNING, CONSULT A LAWYER. Minnesota law permits licensed real estate 298 I ~"~'e~ and sales agents to prepare purchase agreements. No recommendation or representation may be made by any real estate 299300 your broker lawyer, or sales agent as to the legal sufficiency, the legal effect, or the tax consequences of this contract. These are questions for I agree to sell the property for the price and terms and conditions I agree to purchase the property for the price and terms and set forth above, conditions set forth above. SELLER: BUYER: John E. Dore (date) W. Peter Luck, President (date) SSN: New Hope EDA SELLER: BUYER: Deborah R. Dore (date) Daniel J. Donahue, Executive Director (date) SSN: New Hope EDA This Purchase Agreement was prepared by: Jensen& Sondrall, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, Minnesota 55443 Telephone: (763) 424-8811 Facsimile: (763)493-5193 Others who will assist Seller or Buyer with this transaction: Lawyer For Buyer Telephone: Facsimile: Steven A. Sondrali Jensen& Sondrall, P.A. 8525 Edinbrook Crossing Suite 201 Brooklyn Park, MN 55443 (763) 424-8811 103391 Listing Agent and Broker for this transaction are: Telephone: Facsimile: N/A Selling Agent and Broker for this transaction are: Telephone: Facsimile: N/A Miller/Davis Co., St. Paul, MN-Form 1300 (1994; Rev. 1996; Rev. 1997; Rev. 2002) M.S.B.A. Real Property Form No. Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT / PAGE Buyer's or Lender's *l-~tle Insurer: Telephone: Facsimile: Old Republic National Title Insurance Company (612) 371-1111 400 Second Avenue South Minneapolis, Minnesota 55401 Schedule "A" Legal Description That part of Lot 39, Auditor's Subdivision No. 226, Hennepm County, Minn. described as follows: Commencing at the Northwest comer of said Lot 39, thence East along the North line of said Lot~ 200 feet; thence South and parallel with the West line of said Lot, 100 feet, which point is the point of begnmmg of the tract to be described; thence East and parallel with the North line of said Lot, 210 feet; thence South and parallel with the West line of said Lot, 100 feet; thence West and parallel with the North line of said Lot, 210 feet; thence North and parallel with the West line of said Lot. 100 feet to the point of beginning. Files of Registrar of Tires, County of Hennepm, State of Mnmesota. Miller/Davis Co. © St. Paul, MN 651-642.1988 ~/I,~~'' Form 1519Y ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS This form approved by the Minnesota Association of REALTORS®, which disclaims any liability adsing out of use or misuse of this form. © 2000, Minnesota Association of REALTORS®. Edina, MN Date Page Addendum to Purchase Agreement between parties dated February. .2004, pertaining to the purchase and sale of the property at 5538 Sumter Avenue North~ New Hope. Minnesota 55~8 Section 1: Lead Warning Statement Every purchaser of any interest in residential real proper~ on which a residential dwelling **'as built pru)r to 1978. ts not~fic,t such property may present exposure to lead from lead-based paint that may place young children at ri.gk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learmng reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnm~r women. The seller of any interest in residential real property' is required to provide the buyer with any ~/brmation on lead-based paint hazards from risk assessments or inspections in the seller's possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards iS recommended prior to purchase. Seller's Disclosure (initial) ~ (a) Presence of lead-based paint and/or lead-based paint hazards (check one below'): [] Known lead-based paint and/or lead-based paint hazards are present in the housing (explain). [] Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing. (b) Records and reports available to the seller (check one below): [] Seller has provided the purchaser with all available records and reports pertaining to lead-based paint and,:or lead-based paint hazards in the housing (list documents below). [] Seller has no reports or records pertaining to lead-based paint and/or lead-based paint ha~rcls 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 ] Waived the oppommity to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead/based paint hazards. Real Estate Licensee's Acknowledgment (initial) N/A (I3 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 responsibihty to ensure compliance. Certification of Accuracy The following parties have reviewed the information above and certify, to the best of their knowledge, that the information provided by the signatory is true and accurate. John E. Dore W. Peter Enck, President, New Hope EDA ~ Seller Date Purchaser Date Deborah R. Dore Daniel J. Donahue. Executive Director. New Hope EDA Seller Date Purchaser Date Real Estate Licensee Date Real Estate Licensee Date ~Co. ntingency (Initial only if first box under Purchaser's Acknowledgment letter (e) above is checked.~ ~~aet~s contingent upon a risk assessment or an inspection of the property for the presence of lead~bg~l~'~nd/or lead-b~azards to be conducted at the purchaser's expense. The assessment or inspection shall~d (vith~n ?n (_.10)/. . ~L~l~.,~ays after acceptance of the Purchase Agreement. This contin~ d .... d removed, and the theqP.~aZl, b~lfa~ ~Cvy. ement sha~'~f~ilad~ll fro:ce and effect, unless purchaser or real e~see assisting or acting on b~half of purchaser delivers to seller or real ~ee assisting or acting~alendar-days after the alf of :SALE (9/00) WARNING: UNAUTHORIZED COPYING OF THIS FORM PROHIBITED. Miller/OavisCo.© St. Paul, MN651-642-1988 ~ll~og$'~- Form 1519WD (Rev. ! 0/0.~ ~ WELL DISCLOSURE STATEMENT This form approved by the Minnesota Association of REALTORS®, which c~iscJaims any liability arising out of use or misuse of this form. © 2003, Minnesota Association of REALTORS®, Edina, MN 1. Date 2. Page I of ____Pages: THE REQUIRED MAP IS 3. ATTACHED HERETO AND MADE A PART HEREOF 4. Minnesota Statutes Sec. 103L235 requires that before signing an agreement to sell or transfer real property, Seller 5. must disclose information in writing to the Buyer about the status and location of all known wells on the property. This 6. requirement is satisfied by delivering to the Buyer either a statement by the Seller that the Seller does not know of 7. any wells on the property, or a disclosure statement indicating the legal description and county, and a map showing 8. the location of each well. In the disclosure statement the Seller must indicate, for each well, whether the well is in 9. use, not in use or sealed. 10. Unless the Buyer and Seller agree to the contrary, in writing, before the closing of the sale, a Seller who fails to 11. disclose the existence or known status of a well at the time of sale and knew or had reason to know of the existence 12. or known status of the well, is liable to the Buyer for costs relating to sealing of the well and reasonable attorney fees 13. for collection of costs from the Seller, if the action is commenced within six years after the date the Buyer closed the 14. purchase of the real property where the well is located. 15, Legal requirements exist relating to various aspects of location and status of wells. Buyer is advised to contact the 16. local unit(s) of government, state agency, or qualified professional which regulates wells for further information about 17. these issues. 18. Instructions for completion of this form are on the reverse side, 19. PROPERTY DESCRIPTION 20. Street Address 5538 Sumter Avenue North, NewHope 55428 Hennepin ....... City Zip County 21. LEGAL DESCRIPTION: SEE EXHIBIT A ATTACHED HERETO _ 22. 23. 24. 25. WELL DISCLOSURE STATEMENT 26. (Check the appropriate box.) 27. [] The Seller certifies that the Seller does not know of any wells on the above described real property. 28. (If this option is checked, then skip to the last line and sign and date this statement.) 29. [] The Seller certifies that the following wells are located on the above described property. 30. MN Unique Well Year of Well IN USE NOT IN SEALED 31. Well No. Depth Const. Type USE 33. Well 2 [] [] [] 34. Well 3 [] [] [] 35. NOTE: See definition of terms "IN USE," "NOT IN USE," and "SEALED" on lines 83-92. If a well is not in use, 36. it must be sealed by a licensed well contractor or a well owner must obtain a maintenance permit from the 37. Minnesota Department of Health and pay an annual maintenance fee, Maintenance permits are not 38. transferable. If a well is operable and properly maintained, a maintenance permit is not required. 39. OTHER WELL INFORMATION 40. Date well water last tested for contaminants: Test results attached? YesE~ No~"~ 41. Comments: 42. Contaminated Well: Is there a well on or serving the property containing contaminated water? YesE~ No[~ 43. SEALED WELL INFORMATION 44. For each well designated as sealed above, complete this section. 45. When was the well sealed? 46. Who sealed the well? 47. Was a Sealed Well Report filed with the Minnesota Department of Health? Yes ['~ No[---] 48. MAP 49. Complete the attached MAP showing the location of each well on the real property. 50. This disclosure is not a warranty of any kind by the Seller(s) or any Licensee(s) representing or assisting any 51. party/les in this transaction, and is not a substitute for any inspections or warranties the party/les may wish to obtain. 52. CERTIFICATION BY SELLER 53. I certify that the information provided above is accurate and complete to the best of my knowledge. 54. John E. Dore Deborah R. Dore (Seller or Designated Representative) (Date) (Seller or Designated Representative) (Date) 55. BUYER'S ACKNOWLEDGMENT 56. W. Peter Enck, President, New Hope EDA (Buyer) (Date) (Buyer) (Date) Daniel J. Donahue, Executive Director, New Hope EDA 57. MN-WDS-1 (10/03) ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER WARNING: UNAUTHORIZED COPYING OF THiS FORM PROHIBITED. WELL DISCLOSURE STATEMENT 58. Page 2 of ....... Pages. 59. INSTRUCTIONS FOR COMPLETING THE WELL DISCLOSURE STATEMENT 60. DEFINITION 61. A "well" means an excavation that is drilled, cored, bored, washed, driven, dug, jetted, or otherwise constructed if the 62. excavation is intended for the location, diversion, artificial recharge, or acquisition of groundwater. 63. MINNESOTA UNIQUE WELL NUMBER 64. All new wells constructed AFTER January 1, 1975 should have been assigned a Minnesota unique well number by 65. the person constructing the well. If the well was constructed after this date you should have the unique well number in 66. your property records. If you are unable to locate your unique well number and the well was constructed AFTER 67. January 1, 1975, contact your well contractor. If no unique well number is available, please indicate the depth and 68. year of construction for each well. 69. WELL TYPE 70. Use one of the following terms to describe the well type. 71. WATER WELL: A water well is any type of well used to extract groundwater for private or public use. Examples of 72. water wells are: domestic wells, drive-point wells, dug wells, remedial wells, and municipal wells. 73. IRRIGATION WELL: An irrigation well is a well used to irrigate agricultural lands. These are typically large 74. diameter wells connected to a large pressure distribution system. 75. MONITORING WELL: A monitoring well is a well used to monitor groundwater contamination. The well is typically 76. used to access groundwater for the extraction of samples. 77. DEWATERING WELL: A dewatering well is a well used to lower groundwater levels to allow for construction or 78. use of underground spaces. 79. INDUSTRIAL/COMMERCIAL WELL: An industrial/commercial well is a nonpotable well used to extract 80. groundwater for any nonpotable use including groundwater thermal exchange wells (heat pumps and heat loops). 81. WELL USE STATUS 82. Indicate the use status of each well. CHECK ONLY ONE (1) BOX PER WELL. 83. 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 84. that operates for the purpose of irrigation, fire protection, or emergency pumping. 85. 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 86. sealed by a licensed well contractor. 87. SEALED: A well is "sealed" if a licensed contractor has completely filled a well by pumping grout material 88. throughout the entire bore hole after removal of any obstructions from the well. A well is "capped" if it has a metal 89. or plastic cap or cover which is threaded, bolted, or welded into the top of the well to prevent entry into the well. A 90. "capped" well is not a "sealed" well. 91. If the well has been sealed by someone other than a licensed well contractor or a licensed well sealing contractor, 92. check the well status as not in use. 93. If you have any questions, please contact the Minnesota Department of Health, Well Management Section at (651) 94. 215-0819 (metropolitan Minneapolis-St. Paul) or 1-800-383-9808 (greater Minnesota). 95. ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER Schedule "A" Legal Description That part of Lot 39,' Auditor's Subdivision No. 226, Hermepin County, Minn. described as follows: Commencing at the Northwest corner of said Lot 39, thence East along the North line of said Lot, 200 feet; thence South and parallel with the West line of said Lot, 100 feet, which point is the point of beginning of the tract to be described; thence East and parallel with the North line of said Lot, 210 feet; thence South and parallel with the West line of said Lot, 100 feet; thence West and parallel with the North line of said Lot, 210 feet; thence North and parallel with the West line of said Lot, 100 feet to the point of beginning. Files of Registrar of Titles, County of Hennepin, State of Minnesota. Miller/Davis Co. © St. Paul, MN 651 -f~42-1988 Form 1519SS (Re,,. PRIVATE SEWER SYSTEM DISCLOSURE This form approved by the Minnesota Association of REALTORS®. which disclaims any liability adsing out of use or misuse of this form. © 2002, Minnesota Association of REALTORS®, Edina, MN 1. Date 2. Page 1 of Pages: THE REQUIRED MAP IS 3. ATTACHED HERETO AND MADE A PART HEREOF 4. Property located at 5538 Sumter Avenue North 5. in the City of New Hope County of Hennepin __ State of __Minnesota. , legally described as follows or 6. attached sheet (the "Property") _SEE EXEIIBIT A ATTACHED HERETO __. _ 7. 8. This disclosure is not a warranty of any kind by the Seller(s) or any Licensee(s) representing or assisting any Party(s) in this 9. transaction, and is not a substitute for any inspections or warranties the Party(s) may wish to obtain. 10. BUYER(S) AND SELLER(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE AND/OR INSPECTIONS 11. OF THE SEWER SYSTEM AND TO PROVIDE FOR APPROPRIATE PROVISIONS IN A CONTRACT BETWEEN 12. BUYER(S) AND SELLER(S) WITH RESPECT TO ANY ADVICE/INSPECTION/DEFECTS. 13. SELLER'S INFORMATION: The following Seller disclosure satisfies MN. Statutes Chapter 115.55. The Seller discloses the 14. following information with the knowledge that even though this is not a warranty, prospective Buyers may rely on this information 15. in deciding whether and on what terms to purchase the Property. The Seller(s) authorizes any Agent(s) representing any party(s) 16. in this transaction to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of 17. the Property. 18. Unless the Buyer and Seller agree to the contrary in writing before the closing of the sale, a Seller who fails to disclose the 19. existence or known status of an individual sewage treatment system at the time of sale, and who knew or had reason to know of 20. the existence or known status of the system, is liable to the Buyer for costs relating to bringing the system into compliance with 21. individual sewage treatment system rules and for reasonable attorney fees for collection of costs from the Setler. An action under 22. this subdivision must be commenced within two years after the date on which the Buyer closed the purchase of the real property 23. where the system is located. 24. Legal requirements exist relating to various aspects of location and status of individual sewage treatment systems. Buyer is 25. advised to contact the local unit(s) of government, state agency or qualified professional which regulates individual sewage 26. treatment systems for further information about these issues. 27. The following are representations made by the Seller(s) to the extent of the Seller(s) actual knowledge. This information is a 28. disclosure and is not intended to be part of any contract between the Buyer and Seller. 29. PRIVATE SEWER SYSTEM DISCLOSURE (CHECK THE APPROPRIA TE BOX.) 30. ~ The Seller certifies that the Seller does not know of any private sewer system on or serving the above described real 31. property. (if this option is checked, then skip to the last line and sign and date this statement.) 32. [] The Seller certifies that the following private sewer system is on or serving the above described reat property. 33. TYPE (Check appropriate box(es) and indicate location on attached MAP) 34. ~ Septic Tank: ~ with drain field [] with mound system '~2 seepage tank ~ with open end 35. ~ Sealed System (holding tank) 36. ~_~ Other (Describe): 37. s the sewer system(s) currently in use'~ Yes__. No __ 38. NOTE: If any water use appliance, bedroom or bathroom has been added to the Property, the system may no longer 39. comply with applicable sewage treatment laws and rules. 40. Is the sewer system(s) in compliance with applicable sewage treatment system laws and rules? Yes .... No 41. When was the sewer system installed? Installer Name/Phone: ............ 42. 43. Where is tank located? 44. What is tank size? When was the tank last pumped? ........ How often is tank pumped? 45. Where is the drain field located? 46. What is the drain field size? 47. Descdbe work performed to the system since you have owned the Property: 48. 49. Date work performed/by whom: 50. Is sewer system entirely within Property boundary lines, including set back requirements? 51. Is the system shared? How many units on system Annual fee? 52. Comments: 53. On this Property:. 54. Approximate number of: people using the sewer system showers/baths taken per week wash loads per week 55. Distance between well and sewer system: 56. Have you received any notices from any government agencies relating to the sewer system? Yes No 57. If "Yes", see attached notice. MN-PSSD (8/02) ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER WARNING: UNAUTHORIZED COPYING OF THIS FORM PROHIBITED. Form t519SS (Rev. 8/02) PRIVATE SEWER SYSTEM DISCLOSURE 58. Page 2 59. Are there any known defects in the sewer system? Yes__ No 60. If yes, please explain 63. SELLER'S STATEMENT: (To be signed at time of listing) 64. I / We, Seller(s) of the Property acknowledge the above Pdvate Sewer System Disclosure and MAP and authorize Listing Broker to disctose this 65. information to prospective Buyers. 66. (Seller) Johll E. Dore (Date) (Seller) Deborah R. Dore (Date) 6;'. BUYER'S ACKNOWLEDGMENT: (To be signed at time of purchase agreement) 68, FWe, the Buyer(s) of the Property acknowledge receipt of the Pdvate Sewer System Disclosure and agree that no representation 69. regarding the condition of the Private Sewer System have been made, other than those made above. LISTING BROKER AND 7'0. LICENSEES MAKE NO REPRESENTATIONS AND ARE NOT RESPONSIBLE FOR ANY CONDITIONS EXISTING IN THE 71. PRIVATE SEWER SYSTEM. 72. (Buyer)W. Peter Enck, President (Date) (Buyer)Daniel J. Donahue. Executive Director New Hope EDA New Hope 73. SELLER'S ACKNOWLEDGMENT: (To be signed at time of purchase agreement) 74. AS OF THE DATE OF THE ACCEPTANCE OF THE PURCHASE AGREEMENT, I/we, the Seller(s) of the above Property, agree 75. that the condition of the private sewer system is the same as noted above, including changes indicated above which have been 76. initialed and dated. 77. (Seller) J'Ohil E. Dore (Date) (Seller}DeboTah R. Dore (Date) 78. ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER Schedule "A" Legal Description That part of Lot 39, Auditor's Subdivision No. 226, Hennepin Count3,., Minn. described as follows: Commencing at the Northwest comer of said Lot 39, thence East along the North line of said Lot, 200 feet; thence South and parallel with the West line of said Lot, 100 feet, which point is the point of beginning of the tract to be described; thence East and parallel with the North line of said Lot, 210 feet; thence South and parallel with the West line of said Lot, 100 feet; thence West and parallel with the North line of said Lot, 210 feet; thence North and parallel with the West line of said Lot. 100 feet to the point of beginning. Files of Registrar of Titles, County of Hennepin, State of Minnesota. Miller/Davis Co. © St. Paul, MN 651-642-1988 ~[~g,~" Form 1519 MAP (Rev. 7/94) PRIVATE SEWER SYSTEM AND/OR WELL LOCATION MAP This form approved by the Minnesota Association of REALTORS®, which disclaims any liability adsing out of use or misuse of this form. Date Page I of Pages 2. Please use the space below to sketch the real property being sold and the location of each .__ SEWER SYSTEM __ WELL on the Property. (check all that apply) 3. Include approximate distances from fixed reference points such as streets, buildings and landmarks. 4. Property ocated at 5538 Sumter Avenue North: New Hope_ Minnesota 55428 5. ATTACH ADDITIONAL SHEETS AS NEEDED 6. Seller and Buyer Initial: SelleHs) Buyer(s) 7. MN-PSSWM (7/94) ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER MLS WARNING: UNAUTHORIZED COPYING OF THIS FORM PROHIBITED. EXHIBIT B ADDITIONAL TERMS RELATING TO PURCHASE AGREEMENT FOR 5538 SUMTER AVENUE NORTH Seller acknowledges that they shall be responsible for paymem 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 Agreemem. Buyer will 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 will be paid to the Seller, as required by law, and the differemial paymem on the purchase of a replacement property resulting from the sale of the subject property shall be reduced to the sum of $9,700.00. SELLER: Dated: February ~, 2004. John E. Dore Dated: February ~, 2004. Deborah R. Dore BUYER: THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE Dated: February __, 2004. By: W. Peter Enck Its: President Dated: February ,2004. By: Daniel J. Donahue Its: Executive Director P:\Auomey~LB~142{ient Foldcr~\CNH\CNH99.11306-001-Exhibit B,doc 'PRICE DIFFERENTIAL PAYMENT I ANALYSIS OF COMPARABLE PROPERTIES Subject Comparable Comparable 'Comparable Property #1 Property #2 Property #3 Pdc.e (appraised) $175,000.00 $194,700.00 $194,900.00 ' $~'04,900.00 Address 5538 Sumter Ave 3442 Florida Ave 4756 Decatur Ave N 6100 Winnetka Ave N North N City New Hope Cq/sta! New Hope New Hope Date of InsPection Style Rambler One Sto~ One Sto~ One S!.o. r~ Construction N/A N/A N/A Actual Age/Eft. Age 48 / 12 N/A N/A N/A Condition EGF Average Average "' Average Average ,, No. of Units I 1 1 ' 1 No. of Rooms 6 "' 5 7 ....... 7 No. of Bedrooms 3 4 3 4 Bedrooms Required I I 1 1 No. of Baths I 2 1 2 Total Area (Sq. Ft.) 1,120 1272 1024 1,057 Basement NA WO'"i Full I Fin Full / Fin Full I WO Bsmt- Types of I~i~.' FA / LaUn I WS / Off BR I Den Rms. Heat/Cooling' Gas FA / Central Gas FA / central Gas FA / Central Gas FA / central Fireplaces None One None One Other Finished Space, Garage. ;l'wo Att ' Two Att Two Det Two Att Lot Size 100x200 i 126x163 / Irt / .24 A 80x 137 I 20,000Sqft / .459A 20,538 Sqft / .469A 10,960 Sqff 1.25A Neighborhood E/B Suburban E E E '" Schools Y Y y y Public Y Y y y Transportatio,n Church Y y y y Place of Y y y y Employment Water 1. Type 2. 1. Ci'ty 1. City 1. Ciiy 1. City Adequate . 2. Yes 2. Yes 2. Yes 2. yes Sewer 1. Type 2. 1. City 1.' City 1. City . 1. City Adequate 2. Yes 2. Yes 2. Yes 2. Yes Other CommentS: * These amounts factored in to the comparable price Comparable Price $194,700.00 Project Price - $175,000.00 Difference = $19,700.00 Estimated Moving Expenses + $1,800.00 Estimated Closing Costs + $4,000.00 Total Benefit = ,, $25~500.00 Relocation Consultant: Scott Means Date: 1-13414 EDA ITEM 5 (February 9, 2004) JENSEN & SONDRALL, P.A. Attorneys At Law 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443-1968 TELEPHONE (763) 424-8811 · TELEFAX (763) 493-5193 e-mail law~jensen-sondrali.com DOUGLAS J. DEBNER2 GOItOONL.JENSENt February 5, 2004 GLEN A. NORTON Srm~N A. SO. ORaL Ken Doresky srAcy A.Woovs Community Development Specialist City of New Hope OVCOt~SEL 4401 Xylon Avenue North Lo~ss Q. BRY~ST~ New Hope, MN 55428 RE: Acquisition of 7609 Bass Lake Road/Casey and Amy Moo Our File: 99.11307 Dear Ken: Attached please find for consideration at the February 9, 2004 EDA meeting a proposed Resolution Approving Purchase Agreement and Relocation Benefits (7609 Bass Lake Road). The resolution and purchase agreement incorporates our agreement with Casey and Amy Moo as presented to us in the letter from their attorney and family member Ken Dodge. Basically, our appraisal established a market value of $175,000.00 for this property. The relocation benefit analysis indicated the owner was also entitled to a $29,900.00 differential payment for the purchase of a replacement property. The differential payment amount is based on a $204,900.00 replacement value for a new property. The Evergreen relocation analysis also referenced a comparable property for replacement value at $209,000.00. The Moo's have requested this $209,000.00 comp be used to establish their differential payment. We have agreed to recommend to the EDA that this request be accepted and is incorporated into the attached resolution and purchase agreement. In effect, this will increase the Moo's differential payment to $34,000.00 and will allow them to purchase a replacement property for $209,000.00. This seems like a reasonable solution to permit us to acquire this property on a voluntary basis. We have also agreed to pay the cost to cap the well on the property and pay all recording fees. However, the Moo's will pay the state deed tax, the cost for the commitment for title insurance and their pro rata share of 2004 real estate taxes. They will also satisfy any unpaid mortgages against the property. They understands those payments will be deducted from their proceeds at the time of the closing as well. Please contact me if you have any further questions concerning the purchase agreement or this resolution. s~~Urs, drall, City Attorney, CO~V 'R~ P~ope,y Mw Enclosure(s) Specialist Certified By · he ~ir~sot~ st~ cc: Kirk McDonald Bar Association :~tt~ i~ ~o,~ Valerie Leone P:~Attorn~y~SAS~2 City of Now Ht~e\99.1 l~'Altr K. Dofesky re r~o approving PA.doc CITY OF NEW HOPE EDA RESOLUTION NO. 04 - RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS 7609 Bass Lake Road 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 Casey M. Moo and Amy P. Moo ("Owners"), Owners of certain real estate known as 7609 Bass Lake Road (the "Property"); and WHEREAS, appraisers hired by the New Hope EDA valued the Property at $175,000.00 as of December 12, 2003; and WHEREAS, the Owners are willing to sell the Property to the New Hope EDA for the sum of $175,000.00 as set forth in the Purchase Agreement attached hereto as Exhibit A and incorporated herein by reference; and WHEREAS, the New Hope EDA herby approves the Purchase Agreement with the understanding relocation assistance benefits will be paid to the Owners as required by both State and Federal law; 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 for the Owners herein and has determined the estimated maximum "differential" benefit payable to Owners is $29,900.00 for a replacement property (analysis attached as Exhibit B) based on a $204,900.00 acquisition price for a replacement property; and WHEREAS, the New Hope EDA hereby agrees to increase the "differential payment" to $34,000.00 based on Evergreen's relocation analysis indicating the cost for a replacement property may be as high as $209,000.00 evidenced by comparable property//3 as shown in their analysis attached as Exhibit B. Owners acknowledge and agree the final and actual cost for the relocation benefits payable to the Owners will be established when the final and actual purchase price, closing costs and moving expenses in connection with their replacement property are determined by Evergreen Land Services Company; and WHEREAS, it is in the best interest of the New Hope EDA to purchase the Property from the Owners for the sum of $175,000.00, with other terms and conditions as set forth in the Purchase Agreement and to pay the required relocation benefits based on a $209,000.00 acquisition price for a replacement property. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference; 2. That the purchase of the Property by the New Hope EDA from Casey M. Moo and Amy P. Moo for the sum of $175,000.00, with other terms and conditions as set forth in the Purchase Agreement attached hereto as Exhibit A, is approved. 3. The adjusted maximum "differential" benefit payable to the Owners, based on a $209,000.00 acquisition price for a replacement property, estimated to be $34,000.00 is hereby approved. The f'mal payable relocation benefit amount shall be established by Evergreen Land Services Company after the actual purchase price, moving expenses and closing costs for the Owners replacement property are determined by Evergreen Land Services. 4. The President, Executive Director and New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional actions are necessary or desirable, to complete the purchase of the Property in accordance with said Purchase Agreement and the relocation benefits analysis. Dated the 9th day of February, 2004. W. Peter Enck, President Attest: Daniel J. Donahue, Executive Director P:~a, ttomey\Cnh ResolutionsLO9.11307-001-Reso Approv PA-7609 BLR.doc 2 MINNESOTA STANDARD RESlDENllAI.. I-,UK~,tl.,~' © Copyright 1~, 1~7, ~2 by Min~ S~ ~r ~a~, Mi~s, Mi~ BEFORE YOU USE ~ SIGN THIS ~CT, YOU SHOU~ CONSULT WI~ A ~R TO D~RMINE ~AT THIS CONTACT * · ....... ~ of ~is ~QUATELY PRO~S YOUR ~ RIG.S. Mm~ S~ Bar ~fi~ d~ any ~h~ a~ng ~t of ~ 1 1. PA~ES. ~is Pu~ ~nl is ~de ~ _ Feb--' .2~ . by anO ~een 2 C~y M Moo ~d Amy P. Mo~ [man~l s~us] ~b~c 3 of [seller's addre~] 7~09 ~ ~ Rna& New H~pe M~e~m ~5~ . SELLER. ant 4 ~he Ec~nnmic Devel~pmen~ At~hnn~, ("FDA"~ in ~d for ~e C ~:.~ew Ho~ , 5l~Bl~buye~s a~d~s~] 4401 Xyl~n Av~n.e N~ New H~pe. Minn~nt~ ~5428 BU~E~ 6 7 2. OFFE~ACCE~ANCE. Buyer offem to pu~se and Seller agrees to sell mai pro~ legally ~es~a as 9 10 11 ~ro~ ~ Idenfifi~on Numar or Tax Pardi Numar _ 0S-l ] ~-~ 1-33.0089 12 13 I~t~ at 7~09 R.~ 1 ~ke Rnnd , _ , Ci~ of ~; ~C 14 ~un~ of Hennepin , S~te o~in~so~, Zip C~ ~ 55428 ~.. 15 16 3. ACCEPTANCE D~DLINE. The a~p~n~ ~te of ~is Pur~ase Agreement is the date it is delivered by ~e last oa~ s,gnmg to the other .2004 17 pa~. ~i$ ~r lo pu~ase, unle~ a~p~d s~r. sBall ~ v~d at 11:59 A.M.. on ff~ate] 18 and in su~ ev~t all earnest m~ey shall ~ mfu~ to Buyer. ~ 4. PERSON~ PROPE~ AND ~RE$ INCLUDED IN SALE. ~e ~l~ng items of ~m~al pr~ and fixtures ~ed by ~ller 2~ and ~nfly I~ off ~e mai ~ am included in ~ ~le [~Hke o~ ~ems not inclu~d]: gain bulbs, planm, shrubs, ~ees, sto~ ~ ~nd~ and inset, s~ d~m, ~ns, ~nings, ~nd~ sh~es, bli~s, ~i~ve~m~ r~S, a~ ligh~ng fixtures w~th ~ bulOs, plumbing fi~s, su~ pumDs, ~ter heat~, ~a~ sysle~, h~ stove, firepla~ i~, firepla~ ~m and sm~ns, 24 humid~em, ~ilt4n air ~d~ uni~, ~iltAn ~e~¢ air ~tmm, au~a~c garage d~r o~nem ~th ~mrots, television antennas. 25 ~r ~m, ~ilt~ di~w~hem, gamage d~p~als, built-in trash ~m~ac~m, built-in ovens an~ ~king s~oves, h~-fans. ~mercoms. 26 i~s~ll~ ~ng, ~ ~n~es, se~d~ systems, and also ~e follo~ng pr~e~: ~ U~n delive~ of ~e ~ed, Seller shall also deliver a Wa~n~ Bill of Sale ~r ~e above ~rsonal proDe~y, fCheck ~he box tf the fo/io~n~ ~ provision ap~lie~ ro t~is ~rcha~e Agreemenr:J ~ Seller shall use M.S.B.A. Real Pro~e~ Fo~ No. 90 (1997), Wa~anty Bill of Sale 32 5. PRICE AND ~EM$, The pd~ ~r ~e mai and ~al p~ in~ud~ in ~is ~ is ~ ~ One Hundred ~ven~-Fiw ~nn~fi ~d ~/1~ ~ Dollam ($17~.0o0 B0 ), ~i~ Buyer shall pey as f~lows: 35 ~ Earnest ~y of $ 0 00 by ~ ~, ~ - s~te whi~] ~x~~~x ~ayable a7 [select one:l 38 ~ ~ller, to ~ de~sil~ and held by Seller (and may be ~mmingled ~ ~elle~s other funds) ~n~mg closing 3~~ Sellers ~er, ~ ~ deposi~ and held in ~e la~e~s ~ust ac~unt ~n~ing ~ Sellers ~er, to ~ de~sil~ or ~eld by broker a~ing to ~e r~uimmen~ of Minneso~ Statutes, 4~ Omer [descd~ ~w the ea~st mo~y ~11 ~ held] 42 ~ m~ipt ~ ~i~ ~ hereby a~no~ and $ 1 ?~:~0_~ ~sh, ~ ~ ~004 ~ , the DATE OF CLOSING, and ~ ~e ba~n~ of $ ,. O.00 by ~nandng as sh~ ~ ~ a~c~ Financing Addenaum. 45 ~ 6. DEEDtMAE~T~ ~. U~n ~ ~y Burr, Sel~r sh~l exe~ and deliver a Warranty Deed, jome~ 47 in by s~use, if any, ~veying macerate fl~e of re~, subject ~: ~ A. Building and ~ing la~, ordinan~s, s~te end ~eml mgula~ons; 49 B. Res~ons rela~ng ~ ~e m impmve~nt of ~e mai p~ ~out effec~ve ~deiture provisions; ~ C. Resewaa~ofanyminemlfig~y~eSmteofMinn~o~; 5~ D. U~li~ and dmina~ ~ ~ do ~t in~dere ~ exis~ng improverS; 52 E. Ex~s ~ fi~ ~ ~ en~, ms~s. or ea~n~ ~i~ have ~n disposed to Buyer and accepte~ by Buyer ~ in m~ Pur~ ~t [muat ~ ~cifie~ in w~ting]: __ .. ~ 7. ~ ESTA~ T~ES AND 8PEC~L ASSESSMENTS. Real estate taxes due and payable in and for the year of closing shall be pro- ~ ~t~ ~ ~l~r and Buyer ~ a ~lendar year ~s to ~e a~al Date ~ C~ing. unle~ o~e~se proviOed in ~is Purchase Agreement. ~ If ~x s~t~n~ ~ su~ ~ am not a~ilab~ ~ ~e Da~ of Clo~ng, ~e a~nt to ~ pm~t~ shall ~ % of the prior year's taxes. 57 and su~ esama~ p~60n s~ll ~ [st~ke one] ~~~~~ I ADJUSTED UPON RECEIPT OF ~ ~~~~ (in ~i~ ~ ~e pa~ enfiaed to a ~dit as a result of ~e adjustment shall receive 59 ~e a~unt of su~ ~it ~m ~e ~r pa~ ~in 30 da~ ~ i~n~ of ~e ~ s~temen~). Seller repmsen~ t~e ~xes due 'and payable in the 60 year(s) ~4 ~11 be ~LL. ~. ~-homestead classification, unless Buyer changes the tax classification for taxes 61 pebble in ~e y~r ~l~ng d~ng ~ ~king ~i~ ~ ~e real pm~ as Buyers h~ead and filing a new homestead Oectarat~on within 62 ~ ~ r~uir~ ~ I~. ff ~e ~es due an~ paya~ in ~ year of ~osi~ are PART or NON-homestead classification. Salter shall pay to Buyer ~ at ClOs~ $ ' , in a~n ~ Sel~s ~t~ ~are of ~e ~es. If the ~x~s due and payable in the year ~ ~ll~g d~i~g a~ PART or NON-homestead classification and the closing takes place after the date by which Buyer must take possession 67 ~ [Strike ~e:] ~~~~~ / SE~ER SHALL PAY ON DA~ OF CLOSING ~ alt ins~ll~n~ ~ s~l ~ffi ~ ~ ~t ~ ~ mai ~ ~ due and payable in ~e year of cl~ing. ~ [~ke ~:~ ~~~X / SELLER S~ PA~ ON DA~ OF CLOSING all o~er s~Qal assessmen~ levied as of the 7~ dam ~ ~s ~ ~t. 72 [~ke ~:] ~~~X / SE~R SH~L PROVIDE FOR PAYME~ OF s~al a~ess~n~ ~ing as of the dste of 73 this Purc~se Agreement for improvements ~at have been ordered by the C~y Council or other governmental assessing authorities. (Seller's 75 P~chase Agreeme~, Seller represe~s that Seller has not received a Notice of Hearing of a new public improvement project from any 76 governmental as~asi~ a~y, t~ costs of which project may be assayed against t~ real prope~y. If a special assessment becomes ~ ~ndi~ a~r t~ date of th~ ~mha~ Ag~nt e~ ~fo~e ~e Date of Closing. Buyer may. at Buyer's option: 78 A. ~u~ paint ~ ~e ~di~ s~l ~m~t ~ffi~ ~j~nt ~ ~ ~ pd~ of ~e ~1 pm~; or. ~ B. R~im ~ller ~ ~y~ ~ ~1 ~m~t (~ e~ ~ ~t ~ ~ ~ pm~d~ ~ve) and Buyer ~all pay a ~mmen- 80 su~ i~a~ in ~ ~ ~ ~ ~ mai p~, ~i~ in~e s~ll ~ ~e ~me as ~e es~ a~unt of ~ ~ment; BI C. ~ ~ ~ ~ ~t ~d ~ n~ ~ ~l~r, ~ ea~ ~y ~ ~ m~nded ~ Buyer. Miller/Davis Co., SL Paul, MN-Form 1~00 (1994; Rev. 1996; Rev. 1907; Rev. 2002) M.S.B.A, Real Property Form Nc. Minnesota Standard Residenbal Purct~lse Agmernent PURCHASE AGREEMENT / PAGE 2 82 [Strike one:] ~ I SELLER SHALL PAY ON DATE OF CLOSING any deferred real estate taxes (including "Green 83 Acres' taxes under Minn. Stat. 27.3.111 ) or special assessments payment of which is rec~u)red as a result of the closing of t~s sate, 84 Buyer shall pay real estate taxes due and payable in the year follO~ng closing and thereafter and any unpaid special assessments payable 85 therewit~ and thereafter, the payment of which is not ottm~wtse provided herein. Seller makes no representation concerning toe amount of future 86 real estate taxes or of future special assessments. 87 88 8. DAMAGES TO REAL PROPERTY. If the real property is substantially damaged ~orior to closing, this Purchase Agreement shall terminate' 89 and the earnest money shall be refunded to Buyer. If the real property is damaged materially but tess than substantially prior to closing 90 Buyer may rescind this Purchase Agreement by notice to Seller within 21 days after Seltet notifies Buys? of such damage, during 91 21-day period Buyer may inspect the real property, and tn the event of such rescission, tt~e earnest money shall De retunded to Buyer 92 93 g. SELLER'S BOUNDARY UNE, ACCESS, RESTRICTIONS AND LIEN WARRANTIES. Seller warrants trot butlci~n0s ~f anT'. are en=~re~v w~tr~m 96 improvement o~ the mat ptope~/~ Tt--.~.e warranties rdtatl suave the dehvery of the Deed or Contract for 97 SS 10. CONDITION OF PROPERTY. ** SY.~ RDDTTTON.a~ 99 100 A. Seller warrants that ali appliances, fixtures, heating and air conditioning equipment, fireplaces (inciedmg mechanisms, damoers, flues, aha 101 doom), wiring, and plumbing used and located on the real property will be in working order on the Date of Closing Seller shall remove 102 debris, and all personal property not incieded in this sale from the real property before Possession date Seller has no knowledge of 103 Dutch elm disease, oak wilt, or other disease of any trees on t;qe real property. lO5 B. Seller knows of no hazardous substances or petroleum products having peen placed, stored, or released trow or on the real property by 106 person in violation of any law, nor of any underground storage tanks having been located on the real property at any hms. except as follows 109 112 C. Seller's warranties and representatiOnS contained in this paragraph 10 shall survive the delivery of the Deed or Contract for Deed. Any acbon 113 based upon these warranties a~d representations must be commenced wiffiin two years after the date on which the I~uyer ciossd on toe 114 purchase of the real property. 116 D. Buyer shall have I~e fight to have inspections of the property Conducted prior to closing. Unless required by local ordinance or lending 117 regulations, Seller does not plan to have the property inspected. 119 E. Statutory Disclosure. Pursuant to Minnesota Statutes sections 513.52 - 513.60 (effective January 1, 2003), Seller must provide a written 120 disciceure [see (1) below], or Buyer must have received an inspection report Isee (2) below], or Buyer and Seller may watve the whiten 12~ disclosure requirements [see (3) below]. 122 123 Minnesota Statutes Section 5 t 3.57, Subd. 2. L,tAB[LJT¥.^ seller who t~ils to make a disclosure as required by sectmns 513.52 to 513.60 and wa~ aware ~ I' 124 the condition of the real property is liable to tim prospective buyer. A person ir%md by a violation of this section may blqng a civil action and recovc~ 126 On which'the prospective buyer closed the purchase or a'ansfer of the real proper'G'. 127 t2S S~lest only one of these three:] 129 ~.J (1) Seller's Disclosure. Seller has provided a written disclosure to Buyer. A copy of Seller's disclosure is attached. Sel~er shah correcl ~r~ 1:30 writing any inaccuracies in the disclosure as ,soon as reasonably possible before ~osing. 132 Minnesota Statutes Section 513.55. GENERAL DISCLOSURE REQUIREMENTS. 133 Subdivision 1, CONTENTS. 134 (a) Before signing an agreement to sell or transfer residential real properly, the seller shall make a written disclosure to the prospective buyer Th~ 135 disclosure must include all material facts pertaining to adverse physical conditions in the property of which the seller is aware that could adversely and 136 significantly affect: 157 (1) an ordmar~ buyer's use and enjoyment of the property; or, 138 (2) any intended use of the preperej of which the seller is aware. 139 Co) The di. setosure faust be made in good faith and based upon the best of the seller's knowtedgn at the time of the disclosure. t41 Minnesota Statutes Section 513.58. AMENDMENT TO DISCLOSURE. 142 Subdivision 1. NOTICE. A seller must notify the prospective buyer in wrffing as soon as reasonably possible, but in any event before closing, if' the seller 143 learns that the seller's disclosure rrequired by section 513.55 was inaccurate. 144 Subdivision 2. FAILURE TO NOTIFY; LIABILITY. A seller who fails to notify the prospective buyer of any amendments to the initial disclosure required 145 under subdivision I is liable to the prospective buyer as provided in section 513.57. 147 [] (2) Inepeetfan Report. Buyer has received an inspection report by a qualified third-party. If a copy of the inspection report is provided to 14~ Setter, Seller shall disclose to Buyer material facts I~nown to Seller that contradict any informal,on in the inspection repqrt. 149 150 Minnesota Statutes Section 513.$6 Subd. 3. INSPECTIONS. 151 (a) Except es I:~ovided ia paragraph (b), a seller is not required to disclose information miatia~ to the physical condition of the real property if a 152 report that ~iseloscs the iRformation has beer prepared by a qualified third p~rty and provideti to the prospective buyer. For purposes of this para[~raph. 153 "qualified fltird party" nleans a federal, state, or Ideal governmental agency er any person whom the seller or prospective buyer reasonably heh=vcs ha~ 155 order to prepare the writ~n report. 156 (b) A seller flail disclose to the prospective buyer material facts knowrl by the seller that conb'adict any information inctuded in a written report under ~57 paragraph (a) ifa copy of the ml~ort is provided to the seller. 158 151a [] {$)Wa~rofDIsolueum. let Minnesota Statutes Section 513.60. WAIVER, The written disclosure required under sections 513.52 to 513.60 may be waived if the seller and the 162 prospective buyer agree in writin8. Waiver of the disclosure required under sections 513.52 to 513.60 does not waive, limit, or abridge any obligation for 163 seller disclosure Crem. ted by any other law. 165 Seller and Buyer waive the written disclosure required under sections 513.52 to 513.60. 166 167 ~ SELLER:. BUYER; 1ss Case), M. Moo W. Peter Enck, President, New Hope EDA t?2 SELLER; BUYER; 173 Amy P. ~oo Daniel J. Donahue, Executive Director, New Hope Miller/Davis Co., SL Paul, MN-Form 1300 (1994; Rev. 1996; Rev. 1997; Rev. 2002) M.S.B.A. Rest Property Form Nc. Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT ! PAGE 3 174 Other than the warranties arid repreSen~fiorls mai:le in this paragraph 10, the property is being sold "AS IS" with no express or ,mpl~ed 175 representations or wa~anties by Seller as to phySiCal conditions, quality of constructmn, workroanship, or fitness tot any particular purpose (Tn~s 176 paragraph is not intended to waive or limit any provisions of Minn. Stat., Chapter 327A.) 1/7 178 11. DISCLOSURE OF NOTICES. Seller has not received any notice from any governmental authonty as to viotat~on of any law. or0mance 179 regutatiorl affecting the real pro0er'b/. If the real propelly is subject to resb'iCtive covenants, Seller has not received any not, ce from any p~rson as to 180 a breach of the covenants. Seller nas not received any notice from any governmental autnonty concerning any eminent domal;3. COndemnatlo~ 181 special taxing district, or rezoning proceedings. 182 183 '12. TRUTH.IN-HOUSING. Buyer acknowledges receipt of the Truth-in-Housing Disclosure Re;Jori or other ms~ection report ~f redu~re~ b~, the 184 municipality in which the real property is loCated. 185 186 13. POSSESSION. Seller shall deliver possession of the property not later than th~ date 0£ _. c~osmg Ali interest, fue~ o~t, l~qu~ petroleum 187 gas and all charges for city water, city sewer, electricity, and natural gas shall be prorated between the part,es as of ~¢ ~3t¢ oLcJ. u~u~. . 188 107 ma,~,zmn~r~,~ex *SEE ADDITIONAL TERMS 198 199 t5. TITLE CORRECTIONS AND REMEDIES. Seller shall have 120 days from receipt of Buyer's wdtten title oblect~ons to make title marketable 2O0 Upon receipt of Buyer's rifle objections, Selter shall, within ten (10) business days. notify Buyer of Seller's intention to make title marketable within 201 the 120 day period. Liens or encumbrances for liquidated amounts which can be released Py payment or escrow from proceeds of closing shall not 202 delay the ~osing. Cure of the defects by Seller shall be reasonable, diligent, ant 0rompt. Pending correction of title, all payments required ~erem 203 and the closing s~lall be poel~oned. 204 A. if ~otice is given and Seller makes title marketable, then upon presentation to Buyer and proposed lender of documentation establts~lng tha~ 205 title has been made marketable, and if not objected to in the same time and manner as the original title ob actions, the closing shall take place 2O6 within ten (10) buSiness days or on the scheduled closing date, whichever is later. 207 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. 208 Buyer may declare this Purchase Agreement void by notice to Seller. neither party shall be liable for damages hereunder to the other, anO 209 earnest money shall be refunded to Buyer. 210 C. If Seller does not give notice of intention to make title marketable, or if notice is given but the 120 day perio0 exb~res without title being made 21 ~ marketable due to Seller's failure to proceed in good faith, Buyer may seek, as permitted by law, one or more of the following: 212 1, Proceed to closing without waiver or merger in the Deed of the objections to title and without waiver of any remedies, and may: 213 (al Seek damages, costs, and reasonable lawyer's fees from Seller as permitted by law K]amages uncier this subparagraph {al shall be 214 limited to the cost of curing objections to flue, and consequential damages are excluded); or 215 (bi Undertake proceedings to correct the objections to title; 216 2. Rescission of this Purchase Agreement by notice as provided herein, in which case the Purchase Agreement shall be null and vo~cl an0 all 217 eemest money paid shall be refunded to Buyer; 218 3. Damages from Seller together with costs and reasonable lawyer's fees, as permitted by law; 219 4. Specific performance within six months after such right of action arises. 220 D. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements harem. Seller may elect e~ther of 221 the following options, as permitted by law: ~ 1. Carlcel this corlbact as provided by statl, lte end retain all payl/lents made hereurlder as li¢luldated damages. The part~es acknowledge their intention that any note 223 given pumuant to this contact is a ~ i)ayro~nt note. al~ ms,/be presented for ~3yment not~i*.hstan~.ing cence{~at~on, 224 2. Seek specific pedorrneece wi~in ax months sfMr such right of action eesec, inctuOing costs and reasonable lawyer's tees. as perrmtted by 225 E. It tffie is ma;ketal:~e, or is made ~1~'kt~ted~e e.s ~n3vided he~e~n, am:l Seller defaul~ in any of the agreements herein, Buyer may, as Derm~tted by 226 1. Seek damages from Seller including costs and reasonable lawyer's fees; 227 2. Seek specific performance within six months after such rigrtt of action at,sss. 228 229 16. NOTICES. All notices required herein shall be in writing and delivered personally or mailed to the address as shown at Paragraph I above and, 230 if mailed, are effective as of the date of mailing. 231 232 17. SUBDIVISION OF LAND. if this sale constitutes or requires a subdivision of land owned by Seller. Seller shell pay all subdiwsion expenses and 233 obtain all necessary governmental approvals. Seller wan'ants that the legal description of the real property to be conveyed has been or wilt be 234 approved for recording as of the Date of Closing. 235 236 18. MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota. 237 238 19. WELL DISCLOSURE. [Check one of the follov~ng:] 23g Seller ser~es that Seller does not know of any wells on the real property. 240 ~Z Wells on the mai property are disclosed by Seller on the attached Well Oisc~sure form. 241 242 20. SEWAGE TREATMENT SYSTEM DISCLOSURE. 243 [Chec~ either.4 or 244 ~. A. Seller certifies that sewage generated at the property goes to a facility permitted by the Minnesota Pollution Control Agency (for 245 example, a city or municipal sewer systam). 246 __ B, Seller certifies that sewage generated at the property does not go to a facility permiffed by the Minnesota Potiu~on Control Agency 247 and Seller's Disclosure of Individual Sewage Treatment System is attached (attach form). 248 [Check either C or 249 __ C. Seller c~oes not know if there is an abandoned individual sewage treatment system on the property, 250 __ D. Seller knows that there [stdke one:] are I are no abandoned individual sewage treatment systems on the property If Seller discloses 251 the existence of an aban0oned individual sewage treatment system on the property, then Minnesota law requires that the location 252 of the system be disclosed to Buyer with a map./~4rtech Seller's Disclosure of I~dividual Sewage Treatment System w/rh map completed/ 253 254 21. LEAD PAINT DISCLOSURE. [Check one of the fo/Iowing:J 255 Seller represents that the dwelling was constructed en the real property in 1978 or later. 256 ~ Seller represents that the dwelling was constructed on the real property befOre 1978. (If such housing is located on the real prop- erty, 257 attached and made a part of this Purchase Agreement is 'LEAD PAINT ADDENDUM FOR HOUSING CONSTRUCTED BEFORE 1978".) 258 259 22. WETLANDS, SHORELAND, AND FLOOD PLAIN CONCERNS. Currently the law does not require Seller to disclose Seller's knowledge, if any, 260 of the existence of wetlands, shoreland, or flood plain on or affecting the real property. If Buyer has not already investigated these 261 COncems. Buyer might want to include Seller's disclosures regarding these cenceros, apb#es to this Puroi3ase AgfeenMnt:] 262 1'O PURCHASE AGREEMENT: WETLANDS, SHORELAND AND FLOOD PLAIN DISCLOSURE, M.S.B.A. Real Property Form No. 8 (1997), is 263 included as an addendum to this Purchase Agreement. 264 265 23. SELLER'S AFFIDAVIT. At closing, Seller shall supplement the warranties and representations in this Purchase Agreement by executing and 266 delivenng a Minnesota Uniform Collveyancing Blank [Form No. 11E-M, 117-M, or 11 ~-M] Affidavit of Seller. 267 Miller/Davis Co., SL Paul, MN-Form 1300 (1994; Rev. 1996; Rev. 1997; Rev. 2002) M.S.B.A. Real Property Form No. ! Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT / PAGE 4 268 24. CLOSING. Closing shall be at the office of Seller's lawyer, Buyer's title insurer, or at some other mutually agreeabie Iocat~on. 269 270 [State otherlocaOon:] New Hope CiLy Hall 4401 Xylon Avenue North New Hope. Minnesota 55428 271 At closing. Seller and Buyer shell disclose their Social security Numbers or Federal Tax Identification Numbers for the purposes of comoletm.c 272 state and federal tax forms. 273 274 25. ADDITIONAL TERMs: * 14. EXAMINATION OF TITLE. Buyer shall obtain, at_~teL[e~5_e.'q~e.]a'ic. 275 Owner's Policy of Title Insurance on a current ALTA form issued by an insurer llcel~ed to ~T[te title .lXt~ranc_eaa 276 Seller shall be responsible for payment of those costs necessary.' to prepare such CommirmeaLIa¢i~tdJ~tg buLnoL h~i[cd lc 277 ahstracting fees name search fees_ service charges: etc. Buyer shall pay' the 278 Buyer shall have ten (10) business days after receipt of the Commitment for Title insurance r~o_prx/xidcJ~ellef with 279 Commitment and wriuen ob~ieetions Buyer shall be deemed to have waived any title objections not made_within tile tel~( [0l da) 280 .rmriod above: except that this shall not operate as a waiver of Seller's covenant to deliver a statatoD~a~ant~'__Dced. [mles$ 281 Warren .ty Deed is not specified above_ If Buyer obtains title insurance_ Buyer is not waiving the ~ighLte~btama~good add 282 marketable title of record from Seller 283 284 ** SEE EXHIlilT A ATTACHED HERETO 285 286 287 26. ADDENDA. Attached are___ addenda which are made a part of this Purchase Agreement. 288 289 27. TIME IS OF THE ESSENCE. Time is of the essence for all provisions of this Purchase Agreement 290 291 28. MULTIPLE ORIGINALS. Seller and Buyer have signed [numtaer] . .3 originals of this Purchase Agreement 292 293 294 295 296 297 THIS IS A LEGALLY BINDING CONTRACT. BEFORE SIGNING, CONSULT A LAWYER Minnesota law permits licensed real estate 298 brokers and sales agents to prepare purchase agreements. No recommendation or representation may lee made lay any real estate 299 laroker or sales agent as to the legal sufficiency, the legal effect, or the tax consequences of this contract. These are questions for 300 your lawyer. I agree to sell the property for the price and terms and conditions I agree to purchase the property for the price and terms and set forth above, conditions set forth above. SELLER: BUYER: Casey M. Moo (date) W. Peter Enck, President (date) SSN: New Hope EDA SELLER; BUYER: Amy P. Moo (date) Daniel J. Donahue. Executive Director (date) SSN: New Hope EDA This Purchase Agreement was prepared lay: Jenson & Sondrall, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, Minnesota 55443 Telephone: (763) 424-881 I Facsimile: (763) 493-5193 Others who will assist Seller or Buyer with this trape=¢.on : Lawyer For Buyer Telephone: Facsimile: Stevcn A. Sondrall Jenson & Sondrall, P.A. 8525 Edinbrook Crossing Suite 201 Brooklyn Park, MN 55443 (763) 424-8811 103391 Listing Agent and Broker for this transaction are: Telephone: Facsimile: N/A Selling Agent and Broker for this transaction are: Telephone: Facsimile: N/A Miller/Davis Co., SL Paul, MN-F,o~m 1300 (1994; Rev. 1996; Rev. 1997; Rev. 2002) M.S.B.A. Real Prol~ert¥ Form No. Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT / PAGE Buyers or Lenders T#le Insum~. Telel~hooe: Facsimile: Old Republic National Title Insurance Company 400 Second Avenue South Minneapolis, Minnesota 55401 Mil~er, T)aws Co. ~ St Paul MN ~' FO~ 1519Y ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON L~D-BASED PAINT AND L~D-BASED PAINT H~RDS This ~ appmv~ by ~e Minn~om ~s~at~on of R~LTORS~. ~i~ ~is~a~ms any l~abili~' a,slng out of use or ~lsuse of ~is ~ 2000. Minneso~ ~s~a~on of REALTORS~. Edma MN Date Page Addendum to ~chase A~eement be~een p~ ~ted ...... E~ .... 2004. pe~ainmg to ~e purchase sale of~e prope~ at 7609 Bass l.ake Road New Nope_ M~e~ta 55428~ Scion 1: Lead Warning Statement Eve~ purchaser of any inter~t in residential real properO' on which a residemial dwelhn.r ~vas budt prtor ~o 19~', ts nonfic, t such prope~ may present ~posure to lead,om lead-b~ed paint lhat tory place young chiMre~ a~ r:s~' or dc~eio.,,m~c poisoning. Lead ~oisoning in young cfiildren may produce pe~anenr neurologrcal damage, including iearnmg reduced ~ntelligence quotient, behavioral probte~, and impatred memoo'. Lead poisoning also poses a parttcuiar ris~ to pre~gnant ~omen. The seller of any imeres~ in residential real prope~, is required to provide the b~ver ~.irh any ;~brma~mn on paint hazar~ ~om r~k ~sessmenls or inspections in the seller's possession and nor~' the b~¥er ~I nEY ~'no~'n lead-basc,t hazard. A r~k ~sessment or inspec~on for possible lead-based paint hazards ~s recommended prior to purchusc Seller's Disclosure (ini~al) ~ (a) Presence of lead-based paint an~or lead-based paint h=~ (check one below): ~ ~o~ lead-based paint ~or lead-based paint h~ are present m ~e housing (explain~ Seller has no ~owledge of lead-based paint ~or lead-based paint h~ards in the housing. ~ (b) Recor~ and r~om available to ~e seller (check one below): ~ Seller has provided ~e purc~ser wi~ all available records and reports pe~ammg to lead-based paint and or lead-based paint h~r~ in ~e housing (list documents below). ~ Se~er has no r~om or recor~ pe~a~g to lead-b~ed paint ~'or lead-based paint h~ards m ~e housing. Purchaser's Ae~owledgment (initial) ~ (c) ~ch~er has received copies of all relocation listed under (b) above. ~ (d) Pm~ser ~ received ~e pampMet Protect Your Family~om Lead in ~bur Home ~ (e) P~ch~er ~s (check one below): ~ Received a 10-~y oppo~niW (or mu~lly agreed upon pe~od) to conduct a risk assessment or inspection for ~e p~sence of lead-b~ed paint ~or lead-based paint h~ards (If checked, see Section II below): or ~ Waived ~e oppo~iW to conduct a risk assessment or inspection for the presence of lead-based painl lead,ed paint ~. Re~ Estate Licensee's Ae~owleflgment (initial) N/A (~ Real estate ~c~ee h~ ~o~ed ~e sell~ of ~e seller's obligations under 42 U.S.C. 4852(d) and is w~e of ~ce~ee's responsib~ to ~e compli~ce. Ce~ifieation of Accuracy ~e followMg p~es have reviewed ~e Mfo~tion a~ve ~d ce~, to ~e best of ~eir ~owledge, ~at ~e info~ation provid~ by ~e sig~to~ is ~e ~d ~c~ate. Cascy M. Moo W. Peter Enck, President, New Hope EDA Seller Date Purchaser Date Amy P. Moo Daniel J. Donahue, Executive Director. New Hope EDA Seller Date Purchaser Date Real Estate Licensee Date Real Estate Licensee Date ~entingeney (Initial only if first box under Purchaser's Acknowledgment letter (e) above i~ -~Psia,c,g~t is contingent upon a risk assessment or an inspection of the property for the presence of I~.J~l~'~d paint and/or lead-b~ be conducted at the purchaser's expense. Thc assessment or inspection~.~J;ai~l~Lr~ompleted within ten(10)/ .~ calen~--'ll~.',~,la~i,il~t~er acceptance of the Purchase Agreement. This cont~l~'r~all be deemed removed, and t he the~ shall be in~'i~,~,G,t~effect, unless purchaser or r_.fi,~'g~ licensee assisting or acting on behalf of ALE (9/00) I~#er,~eV',S Co. ~ St. Paul. MN 651-642-19~ ~1~1~'" FO~ 1519~ (Rev. 100~, WELL DISCLOSURE STATEMENT This f~ app~v~ by ~e Mm~so~ ~a~ of R~TOR~, ~i~ dis~a~ms any liabit~t) ' arising out of u~ or ~suse of ~is f~ ~ 2003. Mmn~O~ ~a~ of R~LTORS~. Eama. MN 1. Date 2, Page I of ~.__ Pages: THE REQUIRED MAP tS 3. A~ACHED HER~O AND MADE A PART HEREOF 4. Minnesota Statutes Sec. 1031.235 r~uims that before signing an agreement to sel} or transfer real prope~y. Sel~e: 5. must dispose info.etlon in writing to ~e Buyer about the status and location of all known wells on the property. Tn~s 6. requirement is satisfied by delivering to the Buyer either a statement by the Selter that the Seller aoes not know of 7. any wells on the prope~, or a disclosure s~tement indicting the legal aescription ana county, and a map showing 8. the Io~tion of each well. In the disclosure statement the Seller must indicate, for each well, whether the well is Jn 9. Use, not in use or sealed. 10. Unless the Buyer and Seller agr~ to the contras, in writing, before the closing of the sale, a Seller who fails to 11. disclose the existence or kno~ s~tus of a well at the time of sale and Knew or had reason to know of the existence 12. or known s~tus of the well, is liable to the Buyer for costs relating to sealing of the well and reasonable attorney fees 13. for ~llection of ~sts from the Seller, ff the acti~ is commenced within six years after the date the Buyer closed the 14. purchase of ~e real pmpe~ where the well is Io~ted. 15. Legal requirements exist relating to various aspects of Io~tion and status of wells. Buyer is advised to contact the 16. Io~l un~(s) of government, state agency, or qualified professional which regulates wells for fu~her information about 17. ~ese issues. 18. Instructions for completion of this form are on the reverse side. 19. PROPERTY DESCRIPTION 20. Se~t Address 7609 B~qs I aka Road: New Hope , _ 55428 ........ ~m Ci~' Z~p Count) 21. LEGAL DESCRIPTION: ~~u~ey~848. Hennepin Co~y, Minnesota. 22. .. 23. 24 .... 25. WELL DISCLOSURE STATEMENT 26. (Check ~e appropriate ~x.) 27. ~ ~e Seller ~difies that the Seller does not know of any wells on the above described real prope~. 28. (If this option is checked, then skip to the last tine and sign and date this statement.) 29. ~ The Seller cedifies that ~e following wells am Iomted on the above described prope~. 30. MN Unique Well Year of Well IN USE NOT IN SEALED 31. Well No. Depth Const. Type USE 32. Well1 ~ ~ U 33. Well 2 D ~ ~ We, 3 35. NOTE: See definition of te~s "IN USE," "NOT IN USE," and "SEALED" on lines 83-92. If a well is not in use, 36. it must be s~led by a licensed well contour or a well owner must obtain a maintenance permit from the 37. Minneso~ Depa~ment of Health and pay an annual maintenance fee, Maintenance permits are not 38. transferable. ~ a well is o~mble and properly mainlined, a maintenance pe~it is not required. 39. OTHER WELL INFORMATION 40. Date well wa~r last tested for mntaminants: Test results attached? Yes~ No~ 41. Comments: 42. Contaminated Well: Is there a well on or seining the prope~ containing contaminated water? Y. es~-- N°~ 43. $~ED WELL INFORMATION ~. For each well designated as sealed above, complete ~is sec~on, 45. When was the well seal~? 46. Who seal~ ~e well? 47. Was a Sealed Well Repoa filed wlh ~e Minneso~ Depaament of Health? Yes ~ No~ 48. MAP 49. Comple~ the ~ch~ ~P showing the location of each well on the real prope~. 50. ~is dis~osure is not a waffan~ of any kind by the Seller(s) or any Li~nsee{s) representing or assisting any 51. pa~/ies in ~is tmnsacti~, and is not a substitute for any inspections or wa~nties the pa~/ies may wish to obtain. 52. CERTIFICATION BY SELLER 53. I ceffi~ that ~e info,etlon provided above Is accurate and complete to the best of my knowledge. C~cv M. M~ Amy P. Moo {Sell6r or ~ig~ Rain,five) (Da~) {Solar ~ ~signat~ Represen~tive) (Date} 55. BUYER'S ACKN~LEDGME~ 56.  P~ Enck, ~id~t, N~ Ro~ EDA D~iel J. D~ue, ~utive Di~ctor, N~ Ho~ EDA ~r) (Dam) (Buyer) {Date) 57. U~a ($~a) ~IGINAL COPY TO MSTING BROKER; CO~ES TO SELLER, BUYER, SE~LING BROKER WELL DISCLOSURE STATEMENT 58. Page 2 of . Pages. 59. INSTRUCTIONS FOR COMPLETING THE WELL DISCLOSURE STATEMENT 60. DEFINITION 61. A "well" means an excavation that is drilled, cored, bored, washed, 0nven. dug, jetted, or otherwise constructed it the 62. excavation is intended for the location, diversion, artificial recharge, or acquisition of groundwater. 63. MINNESOTA UNIQUE WELL NUMBER 64. All new wells constructed AFTER January 1, 1975 should have been assigned a Minnesota unique well number D.~ 65. the person constructing the well. If the well was constructed after this date you should nave the un~que well number ,r' 66. your property records. If you are unable to locate your unique well number and the welt was constructed AFTER 67. January 1, 1975, contact your well contractor. If no unique well number is available, please indicate the depth and 68. year of construction for each well. 69. WELL TYPE 70. Use one of the following terms to describe the well type. 71. WATER WELL: A water well is any type of well used to extract groundwater for private or public use. Examples of 72. water wells are: domestic wells, drive-point wells, dug wells, remedial wells, and municipal wells. 73. IRRIGATION WELL: An irrigation well is a well used to irrigate agricultural lands. These are typically large 74. diameter wells connected to a large pressure distribution system 75. MONITORING WELL: A monitoring well is a well used to monitor groundwater contamination. The well is typically 76. used to access groundwater for the extraction of samples. 77. DEWATERING WELL: A dewatering well is a well used to lower groundwater levels to allow for construction or 78. use of underground spaces. 79. INDUSTRIAL/COMMERCIAL WELL: An industrial/commercial well is a nonpotable well used to extract 80. groundwater for any nonpotable use including groundwater thermal exchange wells (heat pumps and heat loops). 81. WELL USE STATUS 82. Indicate the use status of each well. CHECK ONLY ONE (1) BOX PER WELL. 83. IN USE: A well is "in use" if the well is operated on a claily, regular, or seasonal basis. A well in use includes a well 84. that operates for the purpose of irrigation, fire protection, or emergency pumping. 85. 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 86. sealed by a licensed well contractor. 87. SEALED: A well is "sealed" if a licensed contractor has completely filled a well by pumping grout material 88. throughout the entire bore hole after removal of any obstructions from the welt. A well is "capped" if it has a metal 89. or plastic cap or cover which is threaded, bolted, or welded into the top of the well to prevent entry into the well. A 90. "capped" well is not a "sealed" well. 91. If the well has been sealed by someone other than a licensed well contractor or a licensed well sealing contractor, 92. check the well status as not in usa. 93. If you have any questions, please contact the Minnesota Department of Health, Well Management Section at (651) 94. 215-0819 (metropolitan Minneapolis-St. Paul) or 1-800-383-9808 (greater Minnesota). 95. ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER Form 1519SS {Re', so.', PRIVATE SEWER SYSTEM DISCLOSURE This f~rm approvecl Dy t~e Mmneso~ AssOCJabon of REALTORS~, whic.~ discla ms any liabili~, afistng out of use or misuse of thzs tOr~Tt. © 2002. Minnesota AssoCiation of REALTORS®, Edma MN 1. Date 2. Page I of Pages: THE REQUIRED MAP iS 3 ATTACHED HERETO AND MADE A PART HERE©=- 4. Property located at _ ~30~. Bass La~e ~oad,~ 5. in the City of ___~New Hope .- County of Hennepin State of __ ~inneso~__ , legally described as follows 6. attached sheet (the "Property") &ad~.~u3~):.~o,JL4j~r~e~Z],~J~ Count. 8. This disclosure is not a warranty of any kind by the Seller(s) or any Licensee(s) representing or assisting any Party(s/ m tht5 9. transaction, and is not a substitute for any inspections or warranties the Party(s) may wish to obtain. 10. BUYER(S) AND SELLER(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE AND/OR INSPECTIONS 11. OF THE SEWER SYSTEM AND TO PROVIDE FOR APPROPRIATE PROVISIONS IN A CONTRACT BETWEEN 12. BUYER(S) AND SELLER(S) WITH RESPECT TO ANY ADVICEJlNSPECTION/DEFECTS. 13. SELLER'S INFORMATION: The following Seller disclosure satisfies MN. Statutes Chapter 115.55. The Seller d~scloses 14. following information with the knowledge that even though this is not a warranty, prospective Buyers may rety on th~s mformat~on 15. in deciding whether and on what terms to purchase the Property. The Seller(s) authorizes any Agent(s) representing any parly(s) 16. in this transaction to provide a copy of this statement to any person or entity in connection with any actual or ant~cipated 17. the Property. 18. Unless the Buyer and Salter agree to the contrary in writing before the closing of the sate, a Seller wi30 fails to disclose the 19. existence or known status of an individual sewage treatment system at the time of sale. and who knew or had reason to know 20. the existence or known status of the system, is liable to the Buyer for costs relating to bnnging the system into compliance with 21. individual sewage treatment system rules and for reasonable attomey fees for collection of costs from the Seller. An action under 22. this subdivision must be commenced within two years after the date On which the Buyer closed the purchase of the real 23. where ti~e system is located. 24. Legal requirements exist relating to various aspects of location and status of individual sewage treatment systems. Buyer 25. advised to contact the Iocat unit(s) of government, state agency or qualified professional which regulates individual sewage 26. treatment systems for further information about these issues. 27. The following are representations made by the Seller(s) to the extent of the Seller(s) actual Rnowledge. This information is a 28. disclosure and is not intended to be part of any contract between the Buyer and Seller. 29. PRIVATE SEWER SYSTEM DISCLOSURE (CHECK THE APPROPRIATE BOX.) 30. -- The Seller certifies that the Seller does not know of any private sewer system on or serving the above described real 31. property, (If this option is checked, then skip to the last line and sign and date this statement.) 32. The Sailer certifies that the following private sewer system is on or serving the above described real property. 33. _.~PE (Check appropriate b~x(es) and indicate location_s_on attached MAP) 34. ~ Septic Tank: ~ with drain field ~ with mound system __ seepage tank __ with open end 35. ,.~ Sealed System (holding tank) 36. ~ Other (Describe): 37. Is the sewer system(s) currently in use? Yes __ No __ 38. NOTE: If any water use appliance, bedroom or bathroom has been added to the Property, the system may no longer 39. comply with applicable sewage treatment laws and rules. 40. Is the sewer system(s) in compliance with applicable sewage treatment system laws and rules? Yes ~_ No 41. When was the sewer system installed? installer Name/Phone: 42. 43. Where is tank located? 44. What is tank size? _ When was the tank last pumped? How often is tank pumped~ _ 45. Where is the drain field located? 46. What is the drain field size? 47. Describe work performed to the system since you have owned the Property: 48. 49. Date work pedormed/by whom: 50. ts sewer system entirely within Property boundary lines, including set back requirements? __ _ 51. Is the system shared? How many units on system Annual fee? 52. Comments: 53. On this Property:. 54, Approximate number of: people using the sewer system __ showers/baths taken per week wash loads per week _ _ 55, Distance between weld and sewer system: 56. Have you received any notices from any government agencies relating to the sewer system? Yes___ No 57. If "Yes', see attached notice, MN4=SSO (S/02) ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER Form 1519SS {Rev. 8/02) PRIVATE SEWER SYSTEM DISCLOSURE 58. Page 2 59 Are there any known defects in the sewer system'> Yes No 60. If yes, please explain 61. 62. 63. SELLER'S STATEMENT: (To be signed at time of listing) 64. I / We, Seller(s) of t~e Property acknowledge tJ~e above Private Sewer System D~sctosure and MAP anci autt~onze L~stm~ Broker to cl~sc~ose tins 65. information to prospective Buyers. 66. (Seller) Casey M. Moo (Date) {Seller) Amy P. Moo ;Dal~ 67. BUYER'S ACKNOWLEDGMENT: (To be signed at time of purchase agreement) 68. I/We, the Buyer(s) of the Properb/acknowledge receipt of the Private Sewer System Disclosure and agree that no representation 69. regarding the condition of the Pdvate Sewer System have been made, other than those made above. LISTING BROKER AND 70. LICENSEES MAKE NO REPRESENTATIONS AND ARE NOT RESPONSIBLE FOR ANY CONDITIONS EXISTING IN THE 71. PRIVATE SEWER SYSTEM. 72. (Buyer) W. Peter Enck, Presidcn! {Date) (Buyer) DallJe[ J. Donahue, Executive Director ;C,~:,. New Hope EDA New Hope EDA 73. SELLER'S ACKNOWLEDGMENT: (To be signed at time of purchase agreement) 74. AS OF THE DATE OF THE ACCEPTANCE OF THE PURCHASE AGREEMENT. I/We, the Seller(s) of the above Property, agree 75. that the condition of the pdvate sewer system is the same as noted above, including changes indicated above which have Deen 76. initialed and dated. 77. (Seller)Casey M. ]VJoo (Date) (Seller)Amy P. Moo (Date 78. ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER PRIVATE SEWER SYSTEM AND/OR ~LL LOCATION MAP T~ f~ aD~rov~ by ~e Minneso~ ~s~a~on of R~LTORS~, ~i~ dJs~a~ms anv ansing out of use or misuse of ~ls Date Page 1 of Pages 2. Please use ~e spa~ Del~ to sket~ ~e mat pr~ ~ing sold and ~e l~on of ea~ __ SEWER SYSTEM _ WELL on the (cne~ all ~at apply) 3. In~ude approximate dis~n~s ~ fixed mfemn~ ~n~ su~ as s~, buildings and landmass. 5. ATTACH ADDITIONAL SHEETS AS NEEDED 6. Seller and Buyer Initial: Seller(s) _, Buyer(s) ...... 7. MN-PSSWM (71~4) ORIGINAL COPYTO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER EXHIBIT A ADDITIONAL TERMS RELATING TO PURCHASE AGREEMENT FOR 7609 BASS LAKE ROAD Seller makes no warramies as to the condition of the property and Buyer acknowledges that it is purchasing the property in its "as-is" condition. Buyer further acknowledges and agrees that it shall be responsible for all costs related to the sealing of the water well on the property. Buyer acknowledges that relocation assistance benefits will be paid to the Seller, as required by law, and the differemial paymem benefit on the purchase of a replacement property resulting from the sale of the subject property shall be increased to a maximum of $34,000.00 if Sellers' cost to purchase a replacemem property equals or exceeds $209,000.00. SELLER: Dated: February __, 2004. Casey M. Moo Dated: February__, 2004. Amy P. Moo BUYER: THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE Dated: February __, 2004. By: W. Peter Enck Its: President Dated: February __, 2004. By: Daniel J. Donahue Its: Executive Director P:\AttomeyXJLB\l-Client Folders\CNH\CNH99.11307-001-Exhibit A.doc EDA ITEM 6 (February 9, ~/ ~ ~ JENSEN & SONDRALL, P.A. Attorneys At Law 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443-1968 TELEPHONE (763) 424-8811 · TELEFAX (763) 493-5193 e-mail law~jensen-sond rail.corn DOUGLAS J. DEBNER2 ~o~oN L. Js~szN' February 5, 2004 GLEN A. NORTON s~wN A. So~oanCL Ken Doresky Sr~,cv n. woovs Community Development Specialist City of New Hope oF COUnSeL 4401 Xylon Avenue North LoarNs Q. BRY~ New Hope, MN 55428 RE: Acquisition of 7643 Bass Lake Road/Beatrice Dolan Our FiIe: 99.11305 Dear Ken: Attached please find for consideration at the February 9, 2004 EDA meeting a proposed Resolution Approving Purchase Agreement and Relocation Benefits (7643 Bass Lake Road). The resolution and purchase agreement incorporates our agreement with Bea Dolan as presented to us by her son Mike Dolan. Basically, our appraisal established a market value of $180.00 for her property. The relocation benefit analysis indicated the owner was also entitled to a $34,500.00 differential payment for the purchase of a replacement property. The Seller wanted the purchase price set at $190,000.00. We have agreed to do this based on the fact Mrs. Dolan will not be receiving any differential payment due to the fact she is not going to purchase a replacement property. Apparently, she is intending to move to Alexandra where her son is located and has decided to rent rather than buy a new home. Since the rental rates are cheaper in Alexandria than in the Twin Cities she will not be entitled to a rent adjustment either. Her decision will actually result in a net savings to the EDA of $24,500.00. We have also agreed to pay Mrs. Dolan's closing costs for her property at 7643 Bass Lake Road. This will include the cost to cap the well on the property, all recording fees, the state deed tax and the cost for the commitment for title insurance. Mrs. Dolan will pay her pro rata share of 2004 real estate taxes. Please contact me if you have any further questions concerning the purchase agreement or this resolution. Velours, Steven A. Sondrall, City Attorney, JENSI~N & $ONDRALL, P.A. 'R~i P~ope.V ~w Enclosure(s) Specialist Certified By ~ ~innesm s~,~ cc: Kirk McDonald Bar Association 2Admitted in Iowa Valerie Leone P:~Attorney~SAS~2 City of N~w H~99-1 l~\ltr K. Do~ky ~ r~o ilpproving PA.doc CITY OF NEW HOPE EDA RESOLUTION NO. 04 - RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS 7643 Bass Lake Road 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 Beatrice Dolan ("Owners"), Owners of certain real estate known as 7643 Bass Lake Road (the "Property"); and WHEREAS, appraisers hired by the New Hope EDA valued the Property at $180,000.00 as of December 5, 2003; and WHEREAS, the Owners are willing to sell the Property to the New Hope EDA for the sum of $190,000.00 as set forth in the Purchase Agreement attached hereto as Exhibit A and incorporated herein by reference; and WHEREAS, the New Hope EDA herby approves the Purchase Agreement with the understanding relocation assistance benefits will be paid to the Owners as required by both State and Federal law; 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 for the Owners herein and has determined the estimated maximum "differential" benefit payable to Owners is $34,500.00 for a replacement property (analysis attached as Exhibit B) based on a $180,000.00 acquisition price of the subject property; and WHEREAS, Owners have acknowledged and agree the "differential payment" will be reduced to $24,500.00 due to the $10,000.00 increase to the acquisition cost of the subject property. Owners further acknowledge and agree the fmal and actual cost for the relocation benefits payable to the Owners will be determined when the final and actual purchase price, closing costs and moving expenses in connection with their replacement property are determined by Evergreen Land Services Company; and WHEREAS, it is in the best interest of the New Hope EDA to purchase the Property from the Owners for the sum of $190,000.00, with other terms and conditions as set forth in the Purchase Agreement and to pay the required relocation benefits. 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 Beatrice Dolan for the sum of $190,000.00, with other terms and conditions as set forth in the Purchase Agreement attached hereto as Exhibit A, is approved. 3. The adjusted maximum "differential" benefit payable to the Owners, based on the $190,000.00 acquisition price, estimated to be $24,500.00 is hereby approved. The final amount shall be established by Evergreen Land Services Company after the actual purchase price, moving expenses and closing costs for the Owners replacement property are determined by Evergreen Land Services. 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 said Purchase Agreement and the relocation benefits analysis. Dated the 9'h day of February, 2004. W. Peter Enck, President Attest: Daniel J. Donahue, Executive Director P:~Attorney\Cnh Resolutions\99.11305-001--Reso Approv PA-7643 BLR.doc Minnesota Standard Residential Purchase Agreement MINNESOTA STANDARD RESIDENTIAL PURCHASE AGI © Copyright 1996, 1997. 2002 by Minnesota State Bat Association, Minneapolis. Minnesota BEFORE YOU USE OR SIGN THIS CONTRACT, YOU SHOULD CONSULT WITH A LAWYER TO DETERMINE THAT THIS CONTRACT ADEQUATELY PROTECTS YOUR LEGAL RIGHTS. Minnesota State Bar AssOOation disclaims any liability arising out of the use of this form t 1. PARTIES. This Purchase Agreement is made on . Fehruar? .20(14 , :~y and t)etwee~ 2 Br-~J~nce Dolan lmarttal status] _ __;t ~m.cle 3 Of/seller's address] 7643 Ba~ Lake Road. New Hope_ Minne~om 5~49-~: . SELLER. ant. 4 the Economic Development Authomt)' ("FDA") in and for the CiD' of New Hope , 5X~Q~t~'mal.ll~f [buyers address] 4401 Xylon Avenue North_ New HO.~,~Mm~sOI~L~5~9-8 BUYER 6 7 2. OFFER/ACCEPTANCE. Buyer offers to purchase and Seller agrees to sell real property legally deson~ed as 9 10 ~ t [Property Tax Identification NunYeer o~ Tax Parcel Number 05-I ! 8.9_ 1-~3-00~'~ ._ ] 12 13 located at 7643 Ba~s l.ake Road City of New Hop_:~__ . t4 County of _ Hennepin , State oflVlinnesota. Zip Code 554:~g __ 15 t6 3. ACCEPTANCE DEADLINE. The acceptance date of this Purchase Agreement is the date it is delivered by the last party s~gnmg to the otlner 17 party. This offer to purchase, unless accepted sooner, shall be void at 11:59 A.M., on [date] 2D0_4~ ._ 18 and in such event all eamasf money shall be refunded to Buyer. ~9 20 4. PERSONAL PROPERTY AND FIXTURES INCLUDED IN SALE. The following items of personel prooerty and fixtures owned t)y Seller 21 and currently located on the real property are included in this sale [Stdke out items not inc~udedJ: garden bulbs, plants, shrubs, trees, storm 22 windows and inserts, storm doors, sm'eons, awnings, window shades, blinds, curtain-traverse-drapery ro0s. attached hght~ng fixtures w~tr: 23 bulbs, plumbing fixtures, sump pumps, water heaters, heating systems, heating stoves, fireplace inserts~ fireplace doors and screens, t)uilt-m 24 humidifiers, built-in air conditioning units, built-th electronic air filters, automatic garage door openers with controls, tetews~on antennas 25 water softeners, built-irt dishwashers, garbage disposals, built-in trash compactors, buiIMn ovens and cooking stoves, hOOd-tans mtercoms 26 installed carpeting, work benches, security systems, and also the following property: 27 28 29 Upon delivery of the Deed, Seller shall also deliver a Warranty Bill of Sale for the above personal property. /Chec/~ rl~e Oox if the 30 provision applies to th/$ Purchase Agreement.'] [] Seller shall use M.S.B.A. Rea! Property Form No. 90 (1997), Wan'anty Bitt of Sale. 31 32 5. PRICE AND TERMS. The pdce for the real and personal property included in this sate is 33 One Hundred Ninety_TJaon~and and (10! I00 Dotiars 34 Dollars ($~0~000.00 ), which Buyer sha~l pay as toi~ows: 35 36 Eamestmoneyof$ 0.00 by ~ ~J~, ~t~'E -state which] payable tc 37 [select one:] 38 [] Seller, to be deposited and held by Seller (and may be commingled with Seller's other funds) pending closing, 39~ Seller's lawyer, to be deposited and held in the lawyer's trust account pending closing, 4O Seller's broker, to be deposited or held by broker according to the requirements of Minnesota Statutes. 41 Other [pescdbe how the earnest money wi//be held/, 42 43 receipt of vahich is hereby acknowtadged and $ ] 90_000.00 cash, on 2004_ ~ , the DA~'E OF CLOSING, and 44 the balance of $ 0.00 by financing as shown on the attached Financing Addendum. 45 46 6. DEED/MARKETABLE 'rrrLE. upon performance by Buyer. Seller shall execute and deliver a Warranty Deed, iomed 47 in by spouse, if any, conveying marketable tide of record, subject to: 48 A. Building and zoning laws, ordinances, state and feOeral regulations: 49 B. Restrictions relating to use or improvement of the real property without effective forfeiture provisions; 50 C. Reservation of any mineral rights by the State of Minnesota; 5~ D. Utility and drainage easements which do not thterfere with existing improvements; 52 E. Exceptions to title which censtituto encumbrances, restrictions, or easements which have been disclosed to Buyer and accepted by Buyer 53 in this Purchase Agreement [must be specified in writing/: 54 7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Rea] estate taxes due and payable in and for the year of closing shall be pro- 55 rated between Seller and Buyer on a calendar year basis to the actual Date of Closing, unless otherwise provided in this Purchase Agreement. 56 If tax statements for such taxes are not available on the Date of Closing, the amount ~0 be prorated shall be % of the prior year's taxes, 57 and such estimated proration shall be [~rrike one/ FULL AND FINAL BETWEEN SELLER AND BUYER / 58 T~V-~r~J,~9(~~~(~t')~ii~ (in which case the party entitled to a credit as a result of the adjustment shall receive 59 the amount of such credit from the other party within 30 days of issuanos of the tax statements). Seller represents the taxes due 'and payable in the 60 year(s) will be FULL, ~Tr ~ -homestead classification, unless Buyer changes the tax classification tot taxes S'l payable in the year following closing by taking possession of the reel property as Buyer's homestead and filing a new homestead 0eclaration within 62 the time required by law. If the taxes due and payable in the year of closing are PART or NON-homestead classification, Seller shall pay to Buyer 63 at closing $ , in addition to Seller's prorated share of the taxes. If the taxes due and payable in the year 64 following ctceing are PART or NON-homestead classification and the closing takes place after the date by which Buyer must take possession 65 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 66 closing ~ as Seller's. share of such taxes. 67 68 [S~ke one:] ~~9~V~~(~(j~ / SELLER SHALL PAY ON DATE OF CLOSING 69 all installments of special assessments certified for payment with the real estate taxes due and payable in the year of closing. 70 [Stdke one:] I~?:X~ / SELLER SHALL PAY ON DATE OF CLOSING all other special assessments levied as of the 7~ date of this Purchase Ag~ement. 72 [St~ka one:] I~Y?aX]~Y~X / SELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as Of the date of 73 this Purchase Agreement fo~ improvements that have been ocdered by the City Council or other governments[ assessing authorities, tSel{er's 74 provision for payment shall be by payment into escrow of 1-1/2 times the estimated amount of the assessments.I As of the date of this 75 Purchase Agreement, Seller represents that Seller has not received a Notice of Hearing of a new public improvement project from any 76 governmental assessing authority, the costs of which project may be assessed against the real proPerty, If a special assessment becomes 77 pending after the date of this Purchase Agreement and before the Date of Closing, Buyer may, at Buyer's option: 78 A. Assume payment of the pending special assessment without adjustment to the purchase price of the real property; or, 79 B. Require Seller to pay the pending Bbeclal assessment (or escrow for payment of same as provided above) and Buyer shall pay a commen- t0 surate increase in the purchase price of the real property, which increase shall be the same as the estimated amount of the assessment; Sl C. or Declare this Purchase Agreement void by notice to Seller, and earnest money shall be refunded to Buyer. Miller/Davis Co.. SL Paul, MN--Fom~ 1300 (1994; Rev. 1996; Rev. 1997; Rev. 2002) M.S.B.A. Real Proberty Form Nc. Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT / PAGE 2 82 [Strike one:] ~b~)~[~ I SELLER SHALL PAY ON DATE OF CLOSING any deterreci real estate taxes 0nctudmg 'Green 83 Acres' taxes under Minn. Stat. 273.111) or special assessments payment of which is required as a result of the closing of th~s sate. 84 Suyer shall pay real estate taxes due and payable in the year totioVang closing and thereafter and any unpaid special assessments 85 t~erewith and thereafter, the payment of which is not otherwise provided herein. Seller makes no representation concerning the amount of future 66 rest estate taxes or of future special assessments. 87 88 B- DAMAGES TO REAL PROPERTY. If the real property is substantially damaged DriOr to ctoslng, rhrs Purct~ase Agreement shall 89 and the earnest money shall be refunded to Buyer. It the real Droperty is damaged materially but ~ess than sut:,stantta~l¥ D~'lor to 90 Buyer may rescind this Purchase Agreement by not,ce to Salter within 21 days after Seller notd~es Buyer of such damager dunn~ ~n:c 91 21-day Derio0 Buyer may inspect the real property, and in the event of such rescission, the earnest money shall be relundea to Buyer 92 93 9. SELLER'S BOUNOARY LINE, ACCESS, RESTRICTIONS AND LIEN WARRANTIES. Seller wan'ants teat Duttd,ngs ~f any. are ent~re,v w,tnm ~? ~ 10. CONDITION OF ~ROPERT~. 100 A. Setter warrants that all appliances, fixtures, beatini} anti air congitiontng equif:~ment, fireplaces (incluci~g mechanisms, clambers, flues, ann 10~ doors), widng, and plumbing used and located on the real property will De in working order on the Date of Closing. Seller shall remove all 102 debds, and all ~ersonat property not included in this sale from the real property before possession date. Seller has no knowledge of 103 Dutch elm disease, oak wilt, or other disease of any trees on the real property. 105 8. Seller knows of no hazardous subetances or petroleum pro~iucts having been placed, stored, or released from or on the real property Dy any 10~ person in violation of any law, nor of any underground storage tanks havi~qg been located on the real property at any time, except as follows 107 112 C. Seller's warranties and representations contained in this paragraph 10 shall survive the delivery of the Deed or Contract for Deed Any 113 based upon these warranties and representations must be commenced within two years after the date on which the buyer closed on the. 114 purchase of the real property. 116 D. Buyer shell have the right to have inspections of the properly conducted prior to closing. Unless required by local ordinance or lending 1 ~ 7 regulations, Seller does not plan to have the property inspected. 119 E. Statutory Disclosure. Pursuant to Minnesota Statutes sections 513.52 - 513.60 (effective January 1, 2003), Seller must provide a written 120 disclosure [see (1) below], or Buyer must have received an inspection report [see {2) below], or Buyer and Seller may waive the written 121 disclosure requirements [see (3) below]. 122 123 Miol~escta STatutes Section 5[3.57, Subd. 2. L1ABILITY.A setter who faits to make a disclosure as required by sections 513.52 to 513 60 and ;;as aware 126 on which the prospective buyer closed the purchase or transfer of the real property.. 127 128 S~lect only one of these 129 [_..J (1) Seller's Disclosure. Seller has provided a written disclosure to Buyer. A copy of Seller's disclosure is attached. Seller shall correct in 130 writing any inaccuracies in the disclosure as soon as reasonably possible before closing. 132 Minnesota Statutes Section 513.55. GENERAL DISCLOSURE REQUIREMENTS. 133 Subdivision 1. CONTENTS. 134 (al Before signing an agreement to sell or transfer residential real property, the seller shall make a written disclosure to the prospective buyer The 13(5 significantly affect: 137 (I)an ordinary buyer's use and enjoyment of the property; or, 138 (2) any intended use of thc property of which thc seller is aware. 139 (b) The disclosure must be made in good faith and based upon thc best of the seller's knowledge at thc time of the d~sctosure 140 141 Minnesota Statutes Section 513.58. AMENDMENT TO DISCLOSURE. 142 Subdivision I. NOTICE. A seller must notify the prospective buyer in writing as soon as reasonably possible, but ~n an~ event before closing, il' the 143 learns that the seller's disclosure required by section 513.55 was inaccurate. 144 Subdivision 2. FAILUI~ TO NOTIFY; LIABILITY,A seller who faits to notify the prospective buyer of any amendments to the initial disclosure required 145 under subdivision I is liable to the prospective buyer as provided in section 513.57. 146 1~-7 ~ (2) Inepegtion Report, Suyer has received an inspection report by a qualified ~ird-party. If a copy of the inspection report is prowded to 14a ~ Seller, Seller shall disclose to Buyer matedal facts known to Seller that contradict any information in the inspection repqrt. 15o Minnesota Statutea Section 513.56 Subd. 3. INSPECTIONS. 151 (al Except as provided in paragraph (b), a seller is not required to disclose information relating to the physical condmon of the real property if a written 152 report that discloses the information has been prepared by a qualified third party and provided to the prospective buyer. For purposes of this paragraph. 156 (b) A seller shall disclose to the prospective buyer material facts known by the seller that contradict any information included in a written ~port under 157 paragraph (al ifa copy of the report is provided to the seller 158 159 ~ (3) Waiver of Disclosure. 160 161 Minnesota Statutes Section 513.60. WAIVER. The written disclosure required under sections 513.52 to 513.60 may be waived if the seller and the 162 prospective buyer agree in writing. Waiver of the disclosure required under sections 513.52 to 513.60 does not waive, limit, or abridge any obligation for 163 seller disclosure created by any other law. ~S5 Seller and Buyer waive the written disclosure required under sections 513.52 to 513.60. le8 SELLER; BUYER: 169 Beatrice Dolon W. Peter Enck, President, New Hope EDA 17o 172 SELLERi BUYER; 173 Daniel J. Donahue, Executive Director, New Hope EDA Miller/Davis Co., St. Paul, MN-Fe~m 1300 (1994; Rev. 1996; Rev. 1997; Rev. 2002) M.S.B.A. Rea~ Property Form No Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT / PAGE 114 Other than the warranties and rePresent~ao~s made in this paragraph 10; the prcrperty is being solc[ "AS IS" v~th no express or ~mpl~ea 175 representations or warranties by Seller as to physical conditions, quality of construction, workmanship, or fimess for any 0aracular purpose. (Tn~s 176 paragraph is not intended to waive or limit any provisions of Minn. Stat., Chapter 327A.) 177 178 11. DISCLOSURE OF NOTICES. Seller has not received any notice from any governmental authonty as to wolat~on of any law. ordinance or 179 regulation affecting the real property. If the real property is subject to resthcfive covenants, Seller has not reco~veq any not, ce from any person as 180 to a breach of the covenants, Seller has not received any notice from any governmental authonty concerning any eminent domain, conoemnatlo,~ 184 special taxing disthct, or rezoning prOCeedings. 182 183 12. TRUTH.IN-HOUSING. Buyer acknowledges receipt of the Truth*in-Housing Disclosure Report or ot~er ~nsDect~cn report if requ~reC ~ the 18a municipality in which the real property is located. 186 13. POSSESSION. Seller shall deliver possession of the property not later than thc dat~ 0£ closing. All interest, fuel od, hqu~a petroleum 187 gas and all charges for city water, city sewer, electricity, and natural gas shall be prorated between the oarues as of Q~c d.~c OJ ¢[osm~.:. 188 189 ~ 107 ~JIF~iE~'~MBJX~K~.vF,~Jd~,YY~S[KXXXX *SEE ADDITIONAL TERMS 198 199 ¶5. TITLE CORRECTIONS AND REMEDIES. Seller shall have 120 days from receipt of Buyer's written title obiect~ons to make btte marketable 200 Upon receipt of Buyer's title objections, Seller shall within ten (10) business days, notify Buyer of Seller's mtent,on to ma~e titie marketa0~e w~tmr' 204 the 120 day pealed. Liens or encumbrances for liquidated amounts which can be released by payment or escrow trom proceeds of c. losing shalt not 202 delay the closing. Cute of the defects by Seller shall be reasonable, diligent, and prompt. Pending correction of ti~e, al~ payments redu~red hereto 203 and the closing shall be 2o4 A. If notice is given and Seller makes title marketable, then upon presentation to Buyer and proposed lender of Oocumentat~on establishing that 2o5 title has peen made marketable, and if not obiected to in the same t~me and manner as the original title object~ons, the closing shall take Dlace 2o6 within ten (10) business 0ays or on the scheduled closing date, whichever is later. 207 B. If notice is given and Seller proceeds in good faith to make tiUe marketable but the 120 day period expires without title being made marketable. 208 Buyer may declare this Purchase Agreement void by notice to Seller, neither party shall be liable for damages hereunder to the other, and 209 earnest money shall be refunded to Buyer. C. If Seller does not give notice of intention to make title marketable, or if notice is given but the 120 pay penod expires without title being maOe 211 212 marketable due to Seller's failure to proceed in good faith, Buyer may seek, as permitted by law, one or more of t~e following: 213 1. Proceed to closing without waiver or merger in ~e Deed of the objections to tiUe and without waiver of any remedies, and may: 214 (a) Seek damages, costs, and reasonable lawyer's fees from Seller as permitted by law (damages under th~s subparagraph (a) shall be limited to the cost of curing objections to flue, and consequential damages are excluded); or 215 (bi Undertake proceedings to correct the objections to UUe; 216 2. Rescission of this Purchase Agreement by notice as provided herein, in which case the Purchase Agreement sr~all be null and void and 217 eemast money paid shall be refunded to Buyer; 218 3. Damages from Seller together with costs and reasonable lawyer's fees, as permitted by law; 4. Specific peflormanne within six months after such right of action arises. 22o D. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements here~n, Seller may elect either of 22t the following options, as permitted Dy law: 222 223 1. Cancel ~lis oontract as provided by Matte and retain ail !~ayments ma~e hereunder as liclLlidate~ dernages. The part,es acknowledge their ~r, tentlon tllat any note given pursuant to ~is contract is a down payment note, and may be presented for payment notwithstanding cancellation, 224 2. Seek specific pedonnance within six months after such right of action anses, including costs and reasonable lawyer's tees, as ~erm~ned by 225 E. 226 If title is mar~etal~e, m' is made marketable as provid~cl herein, and Seller defaults m ar~y of the agreements herein. Buyer may. as '~erm~t~ed by taw 1. Seek damages from Seller including costs and reasonable lawyer's fees; 227 2. Seek specific performance within six months after such right of aCtion arises. 228 229 16. NOTICES. All notices required herein shall be in writing and belivered personally or mailed to the address as shown at Paragraph I above and. 23o if mailed, are effecUve as of the date of mailing. 231 232 17. SUBDIVISION OF LAND. If this sale constitutes or requires a subdivision of rand owned by Sei!er, Seller shall pay all subdivision expenses and 233 obtain all necessary govemmentaJ approvals. Seller warrants that the legal deschptlon of the real property to be conveyed has been or will be 234 approved for recording as of the Date of Closing. 235 236 18. MINNESOTA LAW, This contract shall be governed by the laws of the State of Minnesota. 237 238 19. WELL DISCLOSURE. [Check one of the following:] Seller certifies that Seller does not know of any wells on the real property. 240 ~ Wells on the real properly are disclosed by Seller on the attached Well Disclosure forrn~ 241 242 20. SEWAGE TREATMENT SYSTEM DISCLOSURE. 243 [Chec~ either A or 244 _~L A. Seller carUfies that sewage generated at the property goes to a facility permitted by the Minnesota Pollution Control Agency (for 245 example, a city or municipal sewer system). 246 __ B. Seller certifies that sewage generated at the property does not go to a facility permitted by the Minnesota Pollution Control Agency 247 [Ch~,~,k and Seller's Disclosure of Individual Sewage Treatment System is attached (attach form). 248 either C or D:] 249 '-"~7' C. Seller does not know if there is an abandoned individual sewage treatment system on the property. 25o __ D. Seller knows that there ~$tdke one:] are / ere no abandoned individual sewage treatment systems on the property If Seller 251 ifisciose$ the existence of an abandoned individual sewage treatment system on the property, then Minnesota law requires that the 252 k)cation of the system be disclosed to Buyer with a map. /Attach Seller's Disclosure of Individual Sewage Tfeatmen¢ System with rna~ 253 comp/ere#.]. 254 21. LEAD PAINT DISCLOSURE. [Check one of the fo/lowing:] 255 Seller represents that the dwelling was constructed on the rea prol~ty in 1978 or tater. 256 ~ Seller represents that the dwelling was constructed on the real property before 1978. (if such housing is located on the real prop- erty, 257 attached and made a part of this Purchase Agreement is 'LEAD PAINT ADDENDUM FOR HOUSING CONSTRUCTED BEFORE 1978' ) 258 259 22. WETLANDS, SNORELAND, AND FLOOD PLAIN CONCERNS. Currently the law does not require Seller to disclose Seller's knowledge, if 260 any, of the existence of wetlands, shoreland, or flood plain on or affecting the real ProperlT. If Buyer has not already investigated these 261 ooncems, Buyer might want to inctude Seller's disciosuras regarding these concerns. [Check the box E fha foliowing prows~on r~ ADDEND applies to this Purchase Agreement..] L_J UM 262 TO PURCHASE AGREEMENT: WETLANDS, SHORELAND AND FLOOD PLAIN DISCLOSURE, M.S.B.A. Real Property Form No. 8 (1997), is 263 included as an addendum to this Purchase Agreement. 264 265 23. SELLER'S AFFIDAVIT. At ctosing, Seller shall supplement the warranties and representations in this Purchase Agreement by executing and 266 delivering a Minnesota Uniform Conveyancing Blank [Form No. 116-M. 117-M, or 118-M] Affidavit of Seller. 267 Miller/Davis Co., SL Paul, MN-r-e~m 1300 (19o~4; Rev. 1996; Rev. 1997: Rev. 2002) M.S.R.A. Real Prol~ert¥ Form Nc. Minnesota Standard ResidenlJar Purchase Agreement ' PURCHASE AGREEMENT / PAGE 268 24. CLOSING. Closing shall be at ~ Office of Seller's lawyer, Buyer's title insurer, or at some other mutually agreeable location. 269 270 [Stale otherlocation:] New Hope Ci.ty Hall. 4401 Xylnn Avenue North New Hope Minnesota $5428 271 At dosing, Seller and Buyer shall disctose their Social Security Numbers or Federal Tax Identification Numbers for the purlx~ses of com0~etm~ 272 state and federal tax forms. 273 274 25. ADDITIONAL TERMS: *14 EXAMINATION OF TITLE. Buyer shall obtain at Buyer's expense_ a Commit'meAl[ fOX' 275 Owner's Policy of Title Insurance on a current ALTA form issued by an insurer li¢~e_~cc in Minnesota. 276 Buyer shall he responsible for payment of those co~t~ necessa~' to prepare such Commmment including but not limited. 277 ahs~acting fees, name search fees. service charges: etc. Buyer shall pay the premium forj. l~e Owner's Policy of Title Ins~aztcc, 278 Buyer shall have ten (10) business days after receipt of the Commitment for Title Insurance to pra~d.e.~eller wi[ka~cep~ 279 Comminnant and written objections. Buyer shall be deemed to have waived an)' title ob, tectmns not made_~LilJlia theAed:Lt 10) da.~ 280 period above_ except that this shall not operate as a waiver of' geller's covenant to delkv_e.~a_amr~tot'5 '6,"art .aztl.5_De¢ck ualess a 281 Warran.ty Deed ia not specified above I~ Buyer obtains title insurance Buyer is not waiving' azc_rig~t.ta_obtam-agood sad 282 marketable title of record from Seller 283 284 CLOSING COSTS. Costs to be paid by BuYer shall also include the Minnesow,_Slate~eed_ ~ax and~3Jl recording fees. it' an>. 285 to record marketahle title in the name of Buyer~ Buyer shall also pay all costs ~O seal the welk~all~,, one. propers. _ 287 26. ADDENDA. Attached are 3 addenda which are made a part of this Purchase Agreement 288 289 27. TIME IS OF THE ESSENCE. Time is of the essence for ali provisions of this Purchase Agreement. 290 291 28. MULTIPLE ORIGINALS, Seller and Buyer have signed [number] __ .3 _ ong*nals of th~s Purchase Agreement. 292 293 294 295 296 297 J THIS IS A LEGALLY BINDING CONTRACT. BEFORE SIGNING, CONSULT A lAWYER. Minnesota law permits licensed real estate 298 I brokers and sales agents to prspars purchase agreements. No recommendation or representation may be made by any real estate 300299 your broker lawyer, or sales agent as to the legal sufficiency, the legal effect, or the tax consequences of this contract. These are questions for I agree to sell the property for the pdce and terms and conditions I agree to purchase the property for the pdce and terms an(3 set for~t above, conditions set forth above. SELLER; BUYER: Beatrice Dolan (date) W, Peter Enck, President (dale) SSN: New Hope EPA SELLER: BUYER: (date) Daniel J. Donahue, Execunve D~rector (date) New Hope EDA This Purchase Agreement was prepared by: Jenson & Sondrall, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, Minnesota 55443 Telephone: (763)424-8811 Facsimile: (763) 493-5193 Others who will assist Seller or Buyer with this transaction: Lawyer For Buyer Telephone: Facsimile: Steven A. Sondrall (763) 424-8811 (763) 493-5193 Jensen& Sondrall, P.A. 8525 Edinbrook Crossing Suite 201 Brooklyn Park, MN. 55443 (763) 424-8811 103391 Listing Agent and Broker for this transaction are: Telephone: Facsimile: N/A Selling Agent and Broker for this ~ar,~action are: Telephone: Facsimile: N/A MillerlDav~s Co., SL Paul, MN--Fo~m 1300 (1994; Rev. 1996: Rev. 1997; Rev. 2002) M.S.B.A. Real Pro[Deny Form No. Minnesota Standard Residential Purcflase Agreement PURCHASE AGREEMENT / PAGE Buyer's or Lender's Td:le Insurer; Telepr~one: Facsimile: Old Republic Nanonal Title Insurance Company (612) 371-1111 400 Second Avenue South Minneapolis, Minnesota 55401 Schedule "A" Legal Description That part of Lot 39, Auditor's Subdivision Number 226, Hennepm Counv,.'. Minnesota. described as follows: Commencing au a point 410 feet East of the Northwest comer thereof, thence East along the North line a distance of 90 feet: thence South paralle! with the West line of said lot, a distance of 235.2 feet; thence West parallel with North line of said lot a distance of 90 fee:. thence North parallel with the West line of said lot 235.2 feet to the point of beginning. Files of Regis/tar of Titles. Countx ot Hennepm, State of Minnesota. Miller/Daws Co. ~ St, Paul MN 651.~42-1985 ,~/~."' Form 1519Y ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS This form approved by ~ Minnesota ~tion of REALTOP. S®. ~ict~ disclaims any liability arising out of use or misuse of t~s form. @ 2:000. Minnesota Association of REALTORS~. Ecl~na, M~, Date Page ...... Addendum to Purchase Agreement between parties dated 2004~ ....... pertatlltBg to the purchase and sale of the property at 7643 Ra~s Lake Road_ New Hope, Minnesota_55428 Section 1: Lead Warning Statement Every purchaser of any interest in residential rea/ proper~ on which a residential dwelling **,as bull/pr/or to 1975, such property may present exposure to lead from lead-based paint that may place young children at risk q£ developing Ica,. poisoning. Lead poisoning in young children may produce permanent neurological damage, including learmng dtxabilmc.~. reduced intelligence quotient, behavioral problems, and impaired memoo'. Lead poisoning also poses a particular risk to pregnan women. The seller of any interest in residential real properS, ts required to provide the buyer with an*' in_/ormat~on on paint hazards from risk assessments or inspections in the seller's possession and no/iff.' the bt~ver q/*any known lead-based hazards. ~q risk assessment or inspection for possible lead-based paint ha2ards is recommended prior to purchase, Seller's Disclosure (initial) ~ (al Presence of lead-based paint and/or lead-based paint hazards (check one below): ~ Known lead-based paint and/or lead-based paint hazards are present in the housing (explain) ] Seller has no knowledge of lead-based paint and/or lead-based paint hazards m the housing. ~ (b) Records and reports available to the seller (check one be}ow): [] Seller has provided the purchaser with all available records and repons penainmg to lead-based paint and. lead-based paint hazards in the housing (list documents below). ] Seller has no reports or records pertaining to lead-based paint an&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) Pumhaser has received the pamphlet Protect Your Family from Lead in Your Home ~ (el Pumhaser 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 [] Waived the opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead/based paint hazazds. Real Estate Licensee's Acknowledgment (initial) (fl 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 T~e following parties have reviewed the information above and certifs', to the best of their knowledge, that the information provided by the signatory is true and accurate. Beatrice Dolan W. Peter Enck, President, New Hope EDA Seller Date Puxehaser Date Daniel J. Donahue. Executive Director, Ne,*' Hope EDA Seller Date Purchaser Date Real Estate Licensee Date Real Estate Licensee Date Section II: Contingency (Initial only if first box under Purchaser's Acknowledgment letter (e) above is checked.) This couture/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 m be conducted at the purchaser's expense. The assessment or inspection shall be completed within ten (10)/ ~ calendar days after acceptance of the Purchase Agreement. This contingency shall be deemed removed, and the the,lP~af~ ~[~.tment 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 wrinen list of the specific deficiencies and the corrections required, together with a copy of any risk assessment or inspection report. If thc seller and purchaser have not a~eed in writing within three (3) calendar days after delivery of the written list of required corrections that: (Al some or all of the required corrections will be made; or ([]) the purchaser waives the d,'ficiencics; or (C) an adjustment to the purchase price will be made, thc Purchase Agreement shall automatically be deemed null and void, and all earnest money shall be refunded to thc purchaser. It is understood that the purchaser may unilaterally waive deficiencies or defects, or remove this contingency, providing that the purchaser or thc real estate licensee assisting or acting on behalf of purchaser notifies the seller or real estate licensee assisting or acting on behalf of seller of the waiver ot removal in writing within the time specified. TLX:SALE (9/00) Mi#er/DaVis Co. ~ St. P~ul. MN 651-~o42-1985 ~'" Form 1519W0 WELL DISCLOSURE STATEMENT Tttis form approved by the Minnesota AssOCJat;on of REALTORS~, wttich ekisctmms any liability arising out of use or m~suse of ~is form. © 2003, Minnesota AssOcdatlon of REALTORS~. Eclina. MN 1. Date 2. Page 1 of . __ Pages: THE REQUIRED MAP IS 3. ATTACHED HERETO AND MADE A PART HEREOF 4. Minnesota Statutes Sec. 1031.235 requires that before signing an agreement to sell or transfer rest property, Seller 5. must disclose information in writing to the Buyer about the status and location of all known wells on the property. Tins 6. requirement is satisfied by delivering to the Buyer either a statement by the Seller that the Seller does not know ut 7. any wells on the property, or a disclosure statement indicating the legal description and county, and a map showing 8. the location of each well, In the disclosure statement the Seller must indicate, for each well, whether the well 9. use, not in use or sealed. 10. Unless the Buyer and Seller agree to the contrary, in writing, before the closing of the sale, a Seller who fails to 11. disclose the existence or known status of a well at the time of sale and knew or had reason to know of ti3e existence 12. or known status of the well, is liable to the Buyer for costs relating to sealing of the well and reasonable attorney fees 13. for collection of costs from the Seller, if the action is commenced within six years after the date the Buyer closed the 14. purchase of the real property where the well is located. 15. Legal requirements exist relating to various aspects of location and status of wells. Buyer is advise(to contact the 16. local unit(s) of government, state agency, or qualified professional which regulates wells for further information about 17. these issues. 18. Instructions for completion of this form are on the reverse side. 19. PROPERTY DESCRIPTION 20. Street Address 7643 Ba~ t.ake Rosa: New Hopc~ Minnesota , $$4:~ HennCpm _ CiD' Zip Counl) 21. LEGAL DESCRIPTION: SEE SCHEDULE "A" ATTACHED HERETO 22. 23. 25. WELL DISCLOSURE STATEMENT 26. (Check the appropriate box.) [] The Seller certifies that the Seller does not know of any wells on the above described real 27. property. 28. (If this option is checked, then skip to the last line and sign and date this statemenL) 29. [] The Seller certifies that the following wells are located on the above described property. 30. MN Unique Well Year of Well IN USE NOT IN SEALED 31. Well No. Depth Const. Type USE 33. Well 2 [] [] [] 34. Well 3 [] [] [] 35. NOTE: See definition of terms "IN USE," "NOT IN USE," and "SEALED" on lines 83-92. If a well is not in use, 36. it must be sealed by a licensed well contractor or a well owner must obtain a maintenance permit from the 37. Minnesota Department of Health and pay an annual maintenance fee. Maintenance permits are not 38. transferable, If a well is operable and properly maintained, a maintenance permit is not required. 39. OTHER WELL INFORMATION 40. Date well water last tested for contaminants: Test results attached? Yes~'-~ No 41. Comments: 42. Contaminated Well: Is there a well on or serving the property containing contaminated water? Yes~'-'~ No[-~ 43. SEALED WELL INFORMATION 44. For each well designated as sealed above, complete this section. 45. When was the well sealed? ........ 46. Who sealed lhe well? 47. Was a Sealed Well Report flied with the Minnesota Department of Health? Yes ~ No~'--} 48. MAP 49. Complete the attached MAP showing the location of each well on the real property. 50. This disclosure is not a warranty of any kind by the Seller(s) or any Licensee(s) representing or assisting any 51. party/les in this transaction, and is not a substitute for any inspections or warranties the party/les may wish to obtain. 52. CERTIFICATION BY SELLER 53. I certify that the information provided above is acc. urate and complete to the best of my knowledge. 54. Beatrice Dolan (Seller or Designated Representative) (Date) (Seller or Designated Representative) (Date) 55. BUYER'S ACKNOWLEDGMENT 56. }t,. Pet,er Enck, President, New Hope EDA Daniel J. Donahue Executive Director New Hope EDA uyer) (Date) (Buyer) ' ' (Date) 57. MN-WDS-1 (10103) ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER WELL DISCLOSURE STATEMENT 58. Page 2 of Pages. 59. INSTRUCTIONS FOR COMPLETING THE WELL DISCLOSURE STATEMENT 60. DEFINITION 61. A "well" means an excavation that is drilled, cored, bored, washed, driven, dug, jetted, or otherwise constructed if the 62. excavation is intended for the location, diversion, artificial recharge, or acquisition of groundwater 63, MINNESOTA UNIQUE WELL NUMBER 64. Ail new wells constructed AFTER January 1, 1975 should have been assigned a Minnesota unique well number by 65. the person constructing the well. If the well was constructed after this date you should have the unique well number ~n 66. your property records, if you are unable to locate your unique well number and the weft was constructed AFTER 67. January 1, 1975, contact your well contractor. If no unique well number is available, please indicate the depth and 68. year of construction for each well. 69. WELL TYPE 70. Use one of the following terms to describe the well type. 71. WATER WELL: A water well is any type of well used to extract groundwater for private or public use. Examples of 72. water wells are: domestic wells, drive-point wells, dug wells, remedial wells, and municipal wells. 73. IRRIGATION WELL: An irrigation well is a well used to irrigate agricultural lands. These are typically large 74. diameter wells connected to a large pressure distribution system. 75. MONITORING WELL: A monitoring well is a well used to monitor groundwater contamination. The well is typically 76. used to access groundwater for the extraction of samples. 77. DEWATERING WELL: A dewatering well is a well used to lower groundwater levels to allow for construction or 78. use of underground spaces. 79. INDUSTRIAL/COMMERCIAL WELL: An industrial/commercial well is a nonpotable well used to extract 80. groundwater for any nonpotable use including groundwater thermal exchange wells (heat pumps and heat loops). 81. WELL USE STATUS 82. Indicate the use status of each well, CHECK ONLY ONE (1) BOX PER WELL. 83. 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 84. that operates for the purpose of irrigation, fire protection, or emergency pumping. 85. 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 86. sealed by a licensed well contractor. 87. SEALED: A well is "sealed" if a licensed contractor has completely filled a well by pumping grout material 88. throughout the entire bore hole after removal of any obstructions from the well. A well is "capped" Jf it has a metal 89. or plastic cap or cover which is threaded, bolted, or welded into the top of the well to prevent entry into the well. A 90. "capped" well is not a "sealed" well. 91. If the well has been sealed by someone other than a licensed well contractor or a licensed well sealing contractor, 92. check the well status as not in use. 93. If you have any questions, please contact the Minnesota Department of Health, Well Management Section at (651 94. 215-0819 (metropolitan Minneapolis-St. Paul) or 1-800-383-9808 (greater Minnesota). ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER Schedule "A" Legal Description That part of Lot 39, Auditor's Subdivision Nuraber 226, Hermepm County, Minnesota, described as follows: Commencing at a point 410 feet East of the Northwest comer thereof, thence East along the North line a distance ofg0 feet: thence South paralle! with the West line of said lot, a distance of 235.2 feet: thence West parallel with North line of said lot a distance of 90 feet. thence North parallel with the West line of said lot 235.2 feet to the point of beginning. Files of Registrar of Titles. Count~' o:' Hennepin, State of Minnesota. Milter~Davis ~:) ~' St Paul MN Form 1519SS PRIVATE SEWER SYSTEM DISCLOSURE This fo~ approv~ ~Y ~e Min~so~ ~OQabo~ a~ng out of ~e or misu~ of ~ls ~ 2002, Min~ ~abon 0f RE~TOR~. EQma, MN ~ Date 2, Page 1 of_~Pa~es: THE REQUIRED MAP 3. A~ACHED HERETO AND MADE A PART HEREOF 4. Prope~ to.ted at 7~1 ~ke Road 5. in the C~ of ___~~. Coun~ of ~nepin State of Minneso~ ..... legally OescribeO as follows 6. a~ached sheet (~e "Prope~") SEE SC~L'~'A'' A~A~T~ 7. 8. This di~losu~ is not a waffan~ of any kind by the Seller(s) or any License(s) representing or assisting any Pa~(s) m tins 9. tmnsa~on, and is not a subsfit~e for any ins~ctions or wa~nties ~e Pa~(s) may wish to obtain. 10. BUYER(S) AND SELLER(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE AND/OR INSPECTIONS 11. OF THE sE~R SYS~M AND TO PROVIDE FOR APPROPRIATE PROVISIONS IN A CO~CT BE~EEN 12. BUYER(S) AND SELLER(S) WITH RESPECT TO ANY ADVIC~INSPECTION/DEFECTS, 13. sELLER'S INFORMATION: The following Seller disclosure satisfies MN. Statutes Chapter 115.55. The Seller discloses the 14. following info~ation ~th the knowledge that even though this is not a waffan~, prospective Buyers may rely on this info.stroh 15. in deciding whether and on what te~s to purchase the Prope~. The Seller(s) authorizes any Agent(s) representing any pa~y~s) 16. in this transa~ion to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale 17, the Pm~. 18. Unless ~e Buyer and Seller agree to the ~n~a~ in wdting before the closing of the sale, a Seller who fails to disclose the 19. existence or known s~tus of an individual sewage treatment system at the time of sale, and who knew or had reason to know of 20. ~e existence or kn~n s~tus of the system, is liable to the Buyer for ~sts relaOng to bringing the system into compliance w~th 21. individual sewage ~ea~ent system roles and for reasonable aEomey fees for ~llection of ~sts from the Seller. An action under 22. this su~ivision must be ~mmenced wi~in ~0 years after the date on which the Buyer closed the purchase of the real prope~5 23, where the system ~ located. 24. Legal mquiremen~ exist relating to vadous aspects of location and status of individual sewage treatment systems. Buyer ~s 25. advised to con.ct the local unit(s) of government, state agency or qualified professional which regulates individual sewage 26. treatment systems for fuAher info~ation about these issues. 27. The following are mpmsen~tions made by the Seller(s) to the e~ent of the Seller(s) actual knowle0ge, This information ~s a 28. disclosure and is not intended to ~ pa~ of any cont~ be~een the Buyer and Seller. 29, PRIVATE S~ER SYS~M DISCLOSURE (CHECK THE APPROPRIATE BOX,) 30. ~ The ~ller ce~fies that the Seller does not know of any private sewer system on or se~ing the above described real 31, p~. (If this option is checked, then skip to the last line and sign and date this statement,) 32. '~ The Seller ce~fies that ~e following pdvate sewer system is on or se~ing the a~ve described real prope~, 33, ~PE(Checkappmpdatebox(es)andindicatelocatio~_ona~achedMAP) ~. ~ Se~c Tank: ~ w~h drain field ,.~ with mound system ~. seepage ~nk .__ with open end 35. ~: Sealed System (holding ~nk) 36. ~ ~er (Descfi~): 37. Is the sewer system(s) cu~nay in use? Y~ No 38. NOTE: If any water use appliance, bedroom or bathroom has b~n added to the Prope~, the system may no longer 39. comply with appli~ble sewage treatment la~ and rules. 40, Is the sewer system(s) in compliance with applicable sewage treatment system laws and ~les? Yes .. No 41. When was ~e s~er system ins~lled? installer Name/P~one: 42. 43. Wh~ is ~nk Io~ted? ~. What is ~nk s~e? When was ~e ~nk last pumped? How often is tank pumped? 45. Where is ~e drain field Io~ted?. 46, Wh~ is ~ d~in ~ size? 47, Describe wo~ ~do~ed to ~e system since you have owned the Prope~: ~ , 49. Date wo~ ~ed/by whom: ~. Is sewer sy~em e~rely w~in Pmpe~ ~unda~ lines, including set back require~n~? _ 51. Is ~e system shared? How many uni~ on system .... Annual fee? 52. ~mmen~: 53. On ~is Pmpe~:. ~, ~pm~mate number of: p~ple using ~e sewer system showe~ba~s ~ken per week wash loads ~r week 55. Di~nce baleen well and sewer system: ~. Have ~u ~Ned any noti~s ~m any govem~nt agencies rotating ~ ~e sewer system? Yes.~ No MN-PSSD (~02) ORIGIN~ COPY TO LIS~NG BRO~R; COPIES TO SELLE~ BUYE~ SELLING BRIER Form 15t9SS ~Rev. S/OZt PRIVATE SEWER SYSTEM DISCLOSURE ~8. Page 2 59. Are there any known defects in the sewer system? Yes__ No, 60. If yes, please explain ----- 63. SELLER'S STATEMENT: (To be signed at t~me of listing) 64. I / We, Seller(s) of tt~e Property acknowledge the above Private Sewer System D~sciosure and MAP and authorize Listing Broker to c~sc~ose :r',~ 65. information to prospective Buyers. 66. (Seller) Beatrice Doian (Date) [Seller~ ,~- ;~;~ 67. BUYER'S ACKNOWLEDGMENT: (To be signed at time of purchase agreement) 68. I/We, the Buyer(s) of the Property acknowledge receipt of the Private Sewer System Disclosure and agree that no representation 69. regarding the condition of the Pdvate Sewer System have been made, other than those made aDove, LISTING BROKER AND 70. LICENSEES MAKE NO REPRESENTATIONS AND ARE NOT RESPONSIBLE FOR ANY CONDITIONS EXISTING IN THE 71. PRIVATE SEWER SYSTEM. 72 (Buyer) W. Peter £nck, President (Dele) (Buyer) Dame] J. Donahuc. Executt¥c D~rcctor iDat,, New Hope FDA New Hope EDA 73. SELLER'S ACKNOWLEDGMENT: (To be signed at time of purchase agreement) 74. AS OF THE DATE OF THE ACCEPTANCE OF THE PURCHASE AGREEMENT, I/We, the Seller(s) of the above Property, agree 75. that the condition of the pdvate sewer system is the same es noted above, including changes indicated above which have been 76, initialed and dated. 77. (Seller) BealTice Dolan (Date) (Seller) IDate 78. ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER Schedule "A" Legal Description That part of Lot 39, Auditor's Subdivision Number 226, I-Iennepin County. Minnesota, described as follon~'s: Commencing at a point 410 feet East of the Northwest corner thereof, thence East along the North line a distance of 00 feet; thence South parallel with the West line of said lot. a distance of 235.2 feet: thence West parallel with North line og said lot a distance of 90 feet. thence North parallel with the West line of said lot 235.2 feet to the point of beginning, File, of Registrar of Titles, County. of Hennepin, State of Minnesota. M~ller/Dav;s Co. ~ SI Paul, MN651-642-19~ ,~4,~.~'' Form 1519 MAP {Re~ 7~ PRIVATE SEWER SYSTEM AND/OR WELL LOCATION MAP This fo~ appmv~ by ~e M~nneso~ ~a~ ~f REALTOR~, ~i~ ~s~aims any liaOility ansl~g out of Use or misuse of ~lS to~ Date ~ Page 1 of Pages 2. Pie~e use ~e spa~ ~low to sKet~ ~ mai pr~ ~ing sold a~ ~e Io~on ot e~ch ~ SEWER SYSTEM _~ WELL on the Prope~. (cnec~ art that apply) 3. In~ude approximate dis~n~s from fixed refemn~ ~in~ su~ as street, builQ*ngs and landmarks. 4, Pr~ I~t~ at: 7~3 R~ l.~e Rnad New Hope Minnesota 5~42~ ._. 5. A'rI'ACH ADDITIONAL SHEETS AS NEEDED 6. Seller and Buyer Initial: Sellerls) Buyer(s) 7. MN-PSSWM (7/94) ORIGINAL COPY*TO LISTING BROKER; COPIES TO SELLER, BUYER, BELLING BROKER MLS WARNING: UNAUTHORIZED COPYING OF TI'ES FORM PROHIBITED. 30120325 Pro vJ~ Qoalh~ App~a~nis for Bus3~ Lenders DATA SUMMARY Client: City of New Hope/Ken Doresky 4401 Xylon Avenue N. New Hope, MN 55428-4898 Borrower: NIA Address: 5538 Sumter Avenue North New Hope, MN 55428 Value: $175,000 Date: December 8, 2003 Appraiser: Gregory V. Callahan, Cert Resl Real Prop Client File: Dore Forsythe File: 30120325 APP1L~ISALS, LLC 222 EAST LITTLE CANADA ROAD, ST. PAUL, MINNESOTA 55117 (612) 486-9550 / FAX: (612) 486-9732 UNIFORM RESIDENTIAL APPRAISAL REPORT Mmm 5538 Sumter Avenue North cJ.~ New Hope ,~ae MN ZpC~c~ 5542S AuOltors SuOO no 225 Lot 39 BIR S 100 IT of N 200 ff of tile E 210/'c of* W 410 ff C, eum~ Mennepi~ ~,'sP.,~o 051821330024 Tss~M, 2003 R~ ~S 1.616.9C 5~~s~ None ~ N/A ~ Dore. Jonn E ~ N/A ~e ~ ~ NtA ~m ~ S ~m ~ ~n ~~ to m ~ ~ ~ None C~y of New Hob/Ken DomsKy ~ ~01 Xylon Avenue N. New ~ooe MN 5~2~89~ Cattana- Ce~ R~i Rea~ Pro7 ~ ~ Lffite Canaaa Roaa Lffile Canaaa MN 551 ~ ~ ~a~ ~ ~l~n~ , 350 ~- 65,~, 15% T~NOtApD~caD~ 180 35 ~Vacam N~h~ ~s a~d ~am~l~ T~e subje~'s neigh~o~ ~unaanes are Brooklyn Para Rd. 81 Io me east and H~y 169 to t~e west. T~s ~s an esta~hsnea area Sumter Avenue ~s a quiet resiaenhal greet. Ba~ Lake Road, a Io~1 traffic affe~ ~s ~tmn ~/8 m~e aha r. ~homs. em s. tr~ways~ ana re.at,on Pro.ny values have ~en increasing Demana tDr me ao ~nto~ to the su~un~mg homes The ne~qnbomoo~ nas no apparem aaveme tacmm y See a~acned for a~ffmnal comments ma~etmq ~lSlfi~ ~62~ MLS ~atAstfcs ~ne~cate that 8740% of all hsnnps are sellJng : hme of 31 aays. Sellem am mcmwnq 99.24% of t~e as~nq price F~nancmg 'available from a vanety of soumes. ~ich ~enef~s bot~ potentml Du~m aha sellers Project Infoi~[~on for PUDI (il apM~e) - - Is the eeveto~fl~d0er m ~lr~ of the Hem Owners' Assoclatmn rHeA ? ~e I~ m~ U uflas m t~ ~me~ ~omct N/A ~le IMM ~ ~ unflS tot gie m Ine ~Dlect ~rotect NtA ~,~ 100~00 aDle T~ S/opes Gently s~.~ Approx. 20000 Sq. Ft. (per county) ~c~ ~ Ye: ~, ~ 5~e ADV Avg.120.000SF S~ z~mg ~ss~n aA0 ~mmn R-1 Sing · Family ReslaentlaJ ~ Rectanqular Utilities r%~ ~ ] ~'~ Immo~mnts T~ ~W~ ~ej ~ Typical ~y ~ 100 AMP CB ~ s~ B~ummous ~ ~ ~~ Asphalt ~s ~ ~e Co,crete ~ ~m~m: No~al Utih~ wae , ~k None ~ ' ~ ~F~a ~ Ye: ~ No ~ ~ ~s Yes ~ ~ ~z~ "X" ~p~3/30/01 ~ ~ None rE~No 27053C-0192E G~mfi;~ (ip~;~,; ;~ ::c~:..~ts. ~,;s. s~} +~zZ.,m,,[~. ~e e~ea~, ilegal m ~al non~flfm~ng zomng use. etc } ~vements avera e m site size 8n~ I8~G to value ~.~ O~ I ~m~ Concrete ~b 100% ~ ~R N/A ~. ~st~ One ~ ~ w~ Vinyl Siae ~ ~ No ' ~ ~m=~ N/A ~} Rambler ~~,m&~s Metal ~i ~HIA~t None ~mg N/A w~ ~onclX- ~ Wa: N/A : ~~ ~ist J w~T~ Casement ~ ~ N/A ~ N/A ~ - ~.) 48 Yearn ~ s~ Combo ~ ~f N/A ' ~E~ N/A NO N/A : Concealed I I ~ 3 1 X ~ . ____. ~u~ ~ K~ENEQ~p. I A~C ,u= .... nu~o~ooo I ~Avn '~ . ~J ~ -- ~h ~ Vinyl-Ava. - ~ ...... ~ ~ ~ ~ ~ ~ ~ ~1 ~ Yes ~ ".~..c.): ~~ .m ............... ' '~ 2 W,ae e~ e .,,,~,~,,~ -~ ~orcea air ~eatm s stem. The ~~~ts ~mn(phy~ Mn~l IMamS) m~ Md M~st ' ' " ' · ~ Y ~fl ~Mm~ldddmfll, I~IiM~ e~ ~ (~ II, ~I aot I~ed Io. ~zi~s waltes, le~m ~blllaMl. itc.) Mele~t m Ibc I~oveMnls, on the ~e. or m~the vaiaa=;;= ~c:;;~, UNIFORM RESIDENTIAL APPRAISAL REPOR'i ;,,. ~= E~V~ . . . = s ': ~5.000, Co--nit ~ ~t A~c~ ~=n as s~r~ et cost estimate ~ R. es : . ~, ,~ 'The she value as vaunt ~s Daseg on ma~e: ;renos : ~Total economic lite of 100 ~ L~ P~ Fu~ E~ E~ R~ E~ Lee INDIC4TED V~UE BY CO~ A~OACH = ! N/A 5538 Sumter Avenue ~o~n ~ 5~9 ~nns~vanm Avenue 18911 60 1~ ~venue ~ 600~ W,nne~a Avenue ~ N~ Hope r New Ho~e ~ New Ho~ New to~ =Appmx 1/SM,e 'Appmx 1~ M,e ApProx 75 ~ ~s N/A S 149.900., 172.00~ ., 18~ ~0~, , ~ am= ~ Inspe~on I MLS/Cou~ 1MLS/Coun~ ' MLS/Countv v~ ~ I County Info. ~ 18 Days on Manet ~ 36 Days on Marne1 .25 Days on Mame~ ~ = F~ t NtA ', Cony/0 Rs ~ ConW0 Rs , Conv/0 ~ ~ N/A ! By Seller ~ By Seller ; By Seller ~ea~ ~A J Cls~ 11/03 ICIsd 3/03 ' CI~ 8/02 L~ ~ Su0u~an ~ S~mitar Neiqh. [ S~milar Ne~q~ S~m~tar Ne~g~ ~~ ~ Fee.Simp e ~ Fee S~mple . ~ Fee S~mple , Fee S~mple Sac J 100~00 t 80xl 3~lnf. 5.000 ~ 75x135/Inf 5.000 100x 105/Inf 3. v~ ~ ResiOential ~ S~milar V~ew t S~milar Veew . S~m,ar Rambler/GO I Rambler/GO t RamDler/G~ ~ Ramb~er/G~ a~ to Goo0 ~S~milar Qual~ ~S~milar Quahty S~m,ar Quahty ~48 Yrs '.51 Yearn ~42 Years ,43 Yearn ~ I Avq to Gooa t Smmilar ConQ. I S~milar Con0 ~ S~m~lar Cona ~nt 25 6 3 1.00 5 3 1.00: 5 3 1.00 · ~ 3 1.50 ~a ~ 1.120 ~R 9~ ~Ft 3400 1.~ SqR 1900 1~176 S~R -1 400 ~&F~ ~None ~None ~Full -3.500. Full .3.500 e~ ~ ~ I N/A t N/A 01 Unfinished 0 r 824 Sq Ft Fm -8.200. ~iL ~ Similar ~il~y r S~milar ~ility : S~m,ar Utility Gas FA C/Air Gas FA~/Air : I Gas FA ClAir ~ Gas FA CtA~r 'Concealed Un~no~ ~ Un~n~ I Un~n~ 2+CarGamqe F1 CarGamge : 5,000~2CarGamqe ~2CarGarage e~. Pac. ~ . ~ck ~ None 2.000. PaCco 1.00O; Deck N/A ~ N/A t N/A ' 1 F~replace -2.000 F~. e~. otc ~ N/A ~ N/A I N/A t N/A ~r { NIA ~ N/A ~ N/A ~ N/A ~1+ =- Ts 15.400~+ : :s 4.400 ~ ;~ 13.600 ~~ ~: 1~ ~: 7% I~ 10.67% 10% S 165,300 ~: 3% s 176.400J~t -7.4~ $ 170 Co~;i ~ ~ ~n {m~dmg I~ ~ ~ys ~l~y 1o 1~ ~h~, elc. ) ~00~ count aalustments are incluaeo m the G~ aajustment only. G~ adjustments am maae usinq $25 per square foot. Bath room aOlustments are maae 1~ bath. Basement area adlustments are ma0e usmq $10 per fm~sne= See aaacnea info~atmn for discussion of sales comparison aajustments ~M S~E~ J ~ ~. 1 , ~A~LE ~ 2 COMPA~LE ~ 3 ~e. ~ ~ ~ N/A I See Co~p Sams G~ { ~e Comos ~ales Gna ~ See Comp Sales Gna ~~ ~N/A ~N/A ~A ~N/A N/A ~ MLS/Cou~ ~eco~s I MLS/County Reco~s I MLS/County Reco~s info.orion aha court taco.s the su~ e~ nas not ~een IJsteO or transfe~ea m t~e past 36 ~d~ This a~Jsal is ~in~ maae "as is", T~is Js a "Summa~ App~i~ Repo~". No habil~ ~s assume~ ~r ~e amauml or ~c~~-~m ~ t~e -~- . F~~: In~J~ea Value b ~les corn orison: $175.000. T~e sale corn orison ~est re~e~s t~e a~Jons of ~Hm~~~~~~~t 175r~ - P~E 2 ~ 2 St~e Fo~he Aprils. ~C ADDENDUM, ADDITIONAL FEATURES: in addition, the sub)eot nas: an attacrted two car garage. QeCK and centra~ a:' CONDITION OF THE IMPROVEMENTS: Recent Improvements Der homeowner- newer woocl floonn[; newer vinyl SlO~n~c newer cer~tra: a:- newer kitchen, some new vanclows. The subject has Peen inspected for physical, funct, onal. ancl external mac~ecluacles 'l'ne sur)]ect nas no apparent functIonal or external obsolescence COMMENTS ON SALES COMPARISON: All comparables have smaller lots and are infenor in site value Comparable three rtas an additional bath and is supenor in above graOe room value TRANSMITTAL LETTER: The subject was inspectecl on December 8. 2003. The estimated marl(et va~ue as of December 8. 2003 (effective clate), ~s $175,000. The property was appraised by Gregory V. Callahan. Licence Number 4002346. Certified Residential Real Property Appraiser. A certified residential real property appraiser may appraise res,0ent~al property or agncultural property W~thout regard to transaction value or complexity This appraisal report is a "Summary Appraisal Report". It conforms to the 1997 Uniform Stanclards of Professional Appraisal Practice. No responsibility has been assumed for matters which are legal in nature, nor has any opinion on them been rendered, other than assuming marketable title. Liens and encumbrances, if any, have been disregarded and the property was appraised as though free of In0ebteaness Please feel free to call us if you have a question. ADDITIONAL COMMENTS: 1. The purpose of the appraisal is to estimate the market value of tr~e subject property for litigation purposes. 2. The legal ciascnption of the subject property can be found on page 1 of trte 1004 form 3. The reasonable marketing period for the subject property is under 90 days past4' According36 monthst° the county and the MLS system, the subject property has not been transferred, in the 5. The subject property was inspected on December 8, 2003. the report was prepared on December 8, 2003, the effective date of the appraisal is December 8, 2003. 6. The subject is an existing structure. This appraisal is made "as is." 7. Personal property was not inciuded in the appraised value. 8. We have consictered all three approaches to value. The income approach was not utilized clue to lack of reliable rental ;tara of single family homes in this neighbor'nood. The cost approach was considered but not considered applicable, therefore it was not included. ADDENDUM t~e.~ N,A Len~e~ Cffy of N~ ~'~ ~ 9. The suD)ect is a sfngle family resloentlal proDer~, Revenues expenses, and/or vacancies Od no: apply 10. Current and future employment or corrlDensatlon fs no! cont~ngen,, uDo~ the reDo,~n.~ of <~ preOetem~lnecl value or d~rectlon in value that favors the cause of tne cl~en:, the amount of the value estimate, the attainment of a stipulated result or the occurrence of a SUDSeQuent even: 'J 1. This ap!Dralsal report was completed in conforr~ity with the Uniform, Standards cf ~'rofess~ona Appraisal Practice 12. If the photos inc. JuOed ~n this appraisal are chgltal/electromc images, tr~ey have no! Peen enlarge3 enhanced, or altered ~n any way. 13. If electronic/digital s~gnatures are used. it has Peen ruled acceDtaPle appraisal practice Dy USPAP. 14. The appraiser certified t~lat if this appraisal included an etectronlc/chgltal s~gnature ~t fs mamta~neC and controlled by the appraiser completing the report. GC DIMENSION LIST ADDENDUM /I~rrower: N/A ~.e i~ 30 ~ 20325 Property Aclaress:5538 Sumler Avenue NoRh ~ase Nc: Dore C~t'w N~'w HOPe SI'ate' MN .':~ 5,542,~ GROSS BUILDING AREA (GBA) 1.744 GROSS LIVING AREA (Gl.A) 1.120 ~s~ ~ % of GB~ L.m~ 1.120 64.22 ~ 1.120 ~.~ r~ ~ 0 0.0C r~3 ~ 0 0.00 0 0 00 ~ 0 0.00 ~ 624 35 7 Area Measurements Area Type Me~sur~meflts F~ctor Total L®v®l~ L®vel2 Level3 40.~ , 17,00 = t-~ : 680.00 26.~ ~ 24.00 x 1.00 = 624.00 J~'ower' NtA F-,e N: 3012032~' Ao~ress' 5538 Sumler Avenue North Case Nc: Dore ~ C~' New Ho~ St* MN Z~F' 5~28 Lenae' C~v of New tope~Ken Doresk~ · ~, ~ -. , .. ~ ~ FRONT VIEW OF Bon'ower: N/A ;,~e N~ 30120325 Ad0ress: 5538 Sumter Avenue Norlh Case Nc: Dore C~¥ New Hope St' MN Z~F; 5542E Lethe- C~y of New Hope/Ken Doresk~ COMPARABLE SALE ~ ~- : 5349 Pennsvlvama Avenut .~I,~: , -~ '""' New HOp~ i,? '"· 6008 Winnetka Avenue ' ~ New Hope ,<'"~"'---~"~"~' :_ _ ,z _ _~ '""'-.....- ~.;---:-:_~':13:.,....~....-~_.._.~- ~orrower: N/A Ft)e r~c 301205~5 Aclaress 5538 Sumler Avenue North Case No.: Dore New Hope St' MN ZiF' 55428 Lenoer City of New Hope,'Ken Doresk~ FLOORPL.AN B~Tower: N/A F.e h: ;30120525 : Property AclOress:5538 Sumler A,venue North ~,ase Nc Dore C~"/: New Hope State' MI',; 2~F 5542S · Len0er: Cfly of New Hope/Ken Doresk¥ Be0room 22.0' Bath ':'/: ~ '!" Kitchen Launclry ~ ' -- "- ~mng BeOroom "~":"~'~::: ? Living Room ~¢~:~"~'~¢ ::' "~: ' ' Foyer 24.0' 17.0' Sketch by ADex IV AREA CALCULATIONS SUMMARY LIVING AREA BREAKDOWN TOT~ LIV~LE imu~) 1 120 ~ Are~ Total iroun~) 1120 2221 .... .' ,~ .... ~.._~.-~ ...... Oity-O~ed Propemes {2-2-04) ~ : ~ 1. 5~40 ~inn~tka Ave. !~' ~ ~ ~1 ] 4. ~10/12 Winnetka Ave. N. ~ : ; ; 5. ~20 Winnetka Ave. N. : 6. ~22 Winnetka Ave. N. ~ , . ~ t ~7 : 7. 5500 Winnetka Ave. N. . ' ~ 8. 5506 Winnetka Ave. N. : : ~'~ ; ~;'T ~-~ 10. 5524 Winnetka Ave. N.  j ;~ " ' 11,5532 Winnetka Ave. N. ~ ~' ~ ~._. 12. 5550 Winnetka Ave. N. : ~ '~ ' -, (- .... ~ ...... ~ 13. 5520 Sumter Ave. N. ~ ~ f ~,.'J ~ ~ : 14. 5530 Sumter Ave. N. -. . ~ ~ ~ ~.. ~__ .~ ,, 15.5~6 Sumter Ave. N. - -._ . ~ ..... ~ ; . 16. 5559 Sumter Ave. N. ~5 . "-. --'. ~ --- , . ~ .- ~.. 17. 7601 Bass Lake ~oad Ext. ..... ~ ',,.~::' ~ .~ ;~"'-. .:~' ~ ,,, ¢~ 18. 7603 Bass Lake ~oad Ext. · - -. : , - · --. lg. 7605 ~ass Lake .... · ;...:. / 5218 ~ ~ ~. -..: ~ ~ 20. 7621 B~ss Lake ~oad Ext. :__ · ~ · ~r ~; · . ~. 21 7801 Bass Lake ~oad Property Information Search by Street Address Result Page Page 1 of 2 Itennepin County, MN i $~ar:h :,~J Property Information Search Result I The Henne;i; ~O'u'n~,-'P'r'o~e-r~,"T~X'w'e~ ~t~'ta'b;;'e '~'s updated , -- daily (Monday - Fr'iday9 at approximately 9:15 p.m. (CST) Search By: Parcel Data for Taxes Payable 2003 Click Here for State Copy of Payable 2003 Tax Statement Property ID 1 v,ew~la=j j [ Address 'f Property ID: 05-118-21.33-0024 · - ................ ~'g Address: 5538 SUMTER AVE N Addition Name Municipality: NEW HOPE School Dist: 281 Construction year: 1955 HOUSE or BUILDING #: Watershed: 0 Parcel Size: 100 X ~ r~535 Sewer Dist: 02 STREET NAME: Owner Name: JOHN E DORE ET AL (at least first 3 characters) ISumterAve. N. Taxpayer Name JOHN E DORE & Address: 5538 SUMTER AVE N UNIT # (if applicable) NEW HOPE MN 55428 J Most Current Sales Information Sales prices are reported as listed on the Certificate of Real Estate Value an ~ ~ warranted to represent arms-length transactions. Sale Date: May, 1977 ]~'~ records Sale Price: $29,900 per page Transaction Type: Tax Parcel Description Addition Name: AUDITOR'S SUBD. NO. 226 Lot: 039 Block: Metes & Bounds: S 100 FT OF N 200 FT OF THE E 210 FT OF W 410 FT Abstract or Torrens: TORRENS Value and Tax Summary for Taxes Payable 2003 Values Established by Assessor as of January 2, 200; Estimated Market Value: $137,000 Limited Market Value: $106,800 Taxable Market Value: $106,800 Total Improvement Amount: Total Net Tax: $1,387.12 http ://www2.co.hennepin.mn. us/pins/addrresult j sp 12/24/03 Property Information Search by Street Address Result page Page 2 oi'2 Total Special Assessments: $229.78 Solid Waste Fee: $20.28 Total Tax: $1,637.18 ~'~*~ ~-~ ] Property information Detail for Taxes Payable 2003 Values Established by Assessor as of January 2, 200; Values: Land Market $48,000 Building Market $89,000 Machinery Market Total Market: $137,000 Land Limited $37,400 Building Limited $69,400 Total Limited: $106,800 Qualifying Improvements Classifications: Property Type RESIDENTIAL Homestead Status HOMESTEAD Relative Homestead Agricultural Exempt Status 9042 Hennepin County is providing this information as a public service. Have a tax related question? Send e-mail to taxinfo@co.hennepin.mn.us Experience a probtem searching database, have a technical question or wish to c, Hennepin County Tax web site? Send e-mail to webinfo@co.hennepin.mn.us Have a comment on any of Hennepin County's web sites or E-Commerce applica~ e-mail to Henn.Net@co.hennepin.mn.us Home , SeP,'~ce$ , Taxpayer Serv =es .&$sessor*s De,"..t. Copyright © 1998 - 2001 Hennepin County http ://www2. co.hennepin.nm.us/pins/addrresult.j sp 12/24/03 EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development · ~2-9~04- EDA ..... Item No. By: Kirk McDonald, Director of CD & Ken Doresky, CD Specialist By: RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS 7609 BASS LAKE ROAD (IMPROVEMENT PROJECT FILE 766) REQUESTED ACTION Staff recommends EDA approval of a resolution prepared by the city attorney approving the purchase of property located at 7609 Bass Lake Road for it's appraised value of $175,000, relocation estimate of $40,000 (differential, moving, and closing costs). For each property, Evergreen Land Services prepares a comparable relocation study of 3 homes and recommends 1 property to be used as to determine the differential payment. Casey.and Amy Moo, owners of 7609 Bass Lake Road requested that the high comparable of $209,000 be used in determining their differential payment ($4,100 more than Evergreen's recommended comparable property ($204,900)). According to the relocation study, the high comparable is justified. The additional funds would be required to be used in the purchase of a new property. If the Moo's do not purchase a house that is equal to or more than the appraisal and differential payment, the entire differential will not be required to be paid by the city. Please see the attached correspondence from the owner's representative and the city attorney regarding the request. Also, Evergreen Land Services has reviewed the request and has advised the city that their relocation items are reasonable (please see attached correspondence). POLICY/PAST PRACTICE City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties withir 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. During January, staff had several telephone conversations with the owner's out of state relatives. On January 30, 2004 staff, the city attorney and Evergreen Land Services met with the property owners to discuss the acquisition process. The appraisal and relocation estimate have been completed and are attached. Staff recommends approval of the attached resolution. MOTION BY ~ SECONDBY //~~/C.' h\RFA\PLANNING\Housin~i7609\Q- 7609 Purchas~ A~lreement.doc, ," ,,, Request for Action ...... Page 2 .. 2-9-04 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 Session, the city's TIF special legislation was passed. In December 2003, the district was approved by the City Council. ATTACHMENTS · Resolution · Purchase Agreement & Relocation Data · City Attorney Correspondence, 2-5-04 · Owner's Representative Correspondence, 1-30-04 · Evergreen Land Services Correspondence,'2,3-04 · Appraisal · Location Map/City Ownership Map · Hennepin County Parcel Data Provided in past Council reports relating to the east Winnetka redevelopment area: · Topographic Map · Section Map Comprehensive Plan References- Planning District 6 EDA ITEM 5 (February 9, 2004) JENSEN & SONDRALL, P.A. Attorneys At Law 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443-1968 TELEPHONE (763) 424-8811 * TELEFAX (763) 493-5193 e-mail law~jensen-sondrall, com DOUGLAS J. DESNER~ GORDON L. JENSEN! February 5, 2004 GLEN A. NORTON ST~WS A. SO~OR~LL Ken Doresky STACY A. WOODS Community DeveloPment Specialist City of New Hope OVCot~ssL 4401 Xylon Avenue North LOREN$ Q. BRYNESTAD New Hope, MN 55428 RE: Acquisition of 7609 Bass Lake Road/Casey and Amy Moo Our File: 99.! 1307 Dear Ken: Attached please find for consideration at the February 9, 2004 EDA meeting a proposed Resolution Approving Purchase Agreement and Relocation Benefits (7609 Bass Lake Road). The resolution and purchase agreement incorporates our agreement with CaseY and Amy Moo as presented to us in the letter from their attorney and family member Ken Dodge. Basically, our appraisal established a market value of $175,000.00 for this property. The relocation benefit analysis indicated the owner was also entitled to a $29,900.00 differential payment for the purchase of a replacement property. The differential payment amount is based on a $204,900.00 replacement value for a new property. The Evergreen relocation analysis also referenced a comparable property for replacement value at $209,000.00. The Moo's have requested this $209,000.00 comp be used to establish their differential payment. We have agreed to recommend to the EDA that this request be accepted and is incorporated into the attached resolution and purchase agreement. In effect, this will increase the Moo's differential payment to $34,000.00 and will allow them to purchase a replacement property for $209,000.00. This seems like a reasonable solution to permit us to acquire this property on a voluntary basis. We have also agreed to pay the cost to cap the Well on the property and pay all recording fees. However, the Moo's will pay the state deed tax, the cost for the commitment for title insurance and their pro rata share of.2004 real estate taxes. They will also satisfy any unpaid mortgages against the property. They understands those payments will be deducted from their proceeds at the time of the closing as well. Please contact me if you have any further questions concerning the purchase agreement or this resolution. s~.YsYo~duts' rall, City Attorney, C~p~v~ 'Real Property Law Enclosure(s) Specialist Certified By The Minnesota State CC: Kirk McDonald Bar Association 'Admitted in Iowa Valerie Leone P:\Attorney\SAS\2 City of New Hope\99,1130'Altr K. Doresky re reso approving P A.d~ CITY OF NEW HOPE EDA RESOLUTION NO. 04 - RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS 7609 Bass Lake Road 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 Casey M. Moo and Amy P. Moo ("Owners"), Owners of certain real estate known as 7609 Bass Lake Road (the "Property"); and WHEREAS, appraisers hired by the New Hope EDA valued the Property at $175,000.00 as of December 12, 2003; and WHEREAS, the Owners are willing to sell the Property to the New Hope EDA for the sum of $175,000.00 as set forth in the Purchase Agreement attached hereto as Exhibit A and incorporated herein by reference; and WHEREAS, the New Hope EDA herby approves the Purchase Agreement with the understanding relocation assistance benefits will be paid to the Owners as required by both State and Federal law; 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 for the Owners herein and has determined the estimated maximum "differential" benefit payable to Owners is $29,900.00 for a replacement property (analysis attached as Exhibit B) based on a $204,900.00 acquisition price for a replacement property; and WHEREAS, the New Hope EDA hereby agrees to increase the "differential payment" to $34,000.00 based on Evergreen's relocation analysis indicating the cost for a replacement property may be as high as $209,000.00 evidenced by comparable property//3 as shown in their analysis attached as Exhibit B. Owners acknowledge and agree the final and actual cost for the relocation benefits payable to the Owners will be established when the f'mal and actual purchase price, closing costs and moving expenses in connection with their replacement property are determined by Evergreen Land Services Company; and WHEREAS, it is in the best interest of the New Hope EDA to purchase the Property from the Owners for the sum of $175,000.00, with other terms and conditions as set forth in the Purchase Agreement and to pay the required relocation benefits based on a $209,000.00 acquisition price for a replacement property. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference; 2. That the purchase of the Property by the New Hope EDA from Casey M. Moo and Amy P. Moo for the sum of $175,000.00, with other terms and conditions as set forth in the Purchase Agreement attached hereto as Exhibit A, is approved. 3. The adjusted maximum "differential" benefit payable to the Owners, based on a $209,000.00 acquisition price for a replacement property, estimated to be $34,000.00 is hereby approved. The final payable relocation benefit amount shall be established by Evergreen Land Services Company after the actual purchase price, moving expenses and closing costs for the Owners replacement property are determined by Evergreen Land Services. 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 said Purchase Agreement and the relocation benefits analysis. Dated the 94 day of February, 2004. W. Peter Enck, President Attest: Daniel J. Donahue, Executive Director P:~Attomey\Cnh Resolutionsk99.11307-001-Reso Approv PA-7609 BLR.doc Miller~1:)avis Co., SL Paul, MN-i=orm 1300 (1994: Rev. 19B~; Rev. 199;'; Rev. 2002) __ ' - Minnesota Standard Residential Purchase Agreement MINNESOTA STANDARD RESIDENTIAL PURCHASE AG CD Cop)right 1996. 1997, 2002 by Minnesota State Bar Aesociat~on, Minneape~iS. Minnesota BEFORE YOU USE OR SIGN THIS CONTRACT, YOU SHOULD CONSULT WITH A LAWYER TO DETERMINE THAT THiS CONTRACT ADEQUATELY PROTECTS YOUR LEGAL RIGHTS. Minnesota State Bar Assooaticn disclaims any liability arising out of toe use of th~s form 1 1. PARTIES. This PurCiaase Agreement iS made orr Fchm~?' .2004 . Dy and De,ween 2 Ca_~y M Moo and Amy P. MOO [menial statuS] 3 of Iseller's address] 7609 Ra_gs Lal~Road New Hope. Minnesota 55-128 , SELLEg 4 the F~eonnm½e Develnnment Authortw ("FDA"l.iaand for t~ 0fNex~ Hone . · - ' 5x~~buyer~saddmss] 440! X¥iooAvena~or~h Ne~ Hope Minn~o£3.~-1~.~ ? ~. OFFER/ACCEPTANCE, Buyer offers to purclaase and Seller agrees to sell real propen'y legally desCnbec as g 10 11 [Property Tax Identification Number or Tax Parcel Number 05-11 ~-~l-~ 3-OOg9 12 13 located at 7609 Ra~s I.ake Road . City of ____~c~ 14 County of Hennepin , State of Minnesota, Zip Code ~5542g __ . 15 16 .3. ACCEPTANCE DEADLINE. The acceptance date of this Purchase Agreement ~s the date it is delivered by t~e last party s~gnmg to the other 17 party. This offer to purchase, unless accepted sooner, shelt be void at l l'.5~ A.M. on [dateJ ........... 2004 18 and in such event all earnest money shell be refunded to Suyer. 19 20 4. PERSONAL PROPERTY AND FIXTURES INCLUDED IN SALE. The follOW,ny items of personal property and fixtures owned by Seller 21 and currently located on the real property are included in t~is sale [Sttfl~e out/terns not included]: garden bulbs, plants, shrubs, trees, stom~ 22 windows and inserts, stoffn doors, screens, awnings, window shades, blinds, o./rtain-traverse-drapety rods, adacl~ed lighting fixtures wrth 23 bulbs, plumbing fixtures, sump pumps, water heaters, heating systems, heating stoves, fireplace inserts, fireplace doors and screens, 2~ humidifiers, built4n air ¢~onditioning units, built-in electronic air filters, automatic garage door openers vath controls, telews~on antennas, 25 water softeners, built-in dishwashers, garbage disposals, built-in trash compactors, built-in ovens and cooking stoves, hood-tans, rntercom$ 26 installed caq~eting, work benches, secudty systems, and also the following property: 27 ......... 28 · 29 Upon delivery of the Deed, Seller shall also deliver a Warranty Bill of Sale for the above personal property [Check the /)ox /f the 30 provision ap#lies to this Purchase Agreement,'] [] Seller shell use M.S.B.A. Real Property Form No, 90 (1907). Warranty Bill of Sale 31 32 5. PRICE AND TERMS. The pdce for the real and personal property included in this sale is 33 One Hundred Seven~-Five Tho.~nd and 00/100 Dollars ___ 34 Dollars ($175.000.00 ),wl~ich Buyer shall pay as foilows: 35 36 Earnest money of $ 0 00 by 11;~ ]~N~31(, i~)IE - state which] .~3.akX.'~cXxX~X~.',.X.~'L',C~X.,~X.X.X.'x payabSe tc 37 Isa/act One:] 38 [] Setter, to be deposited and held by Seller (and may be commingled with Seller's other funds) pending closing, 39~ Sellers lawyer, to be deposited and held in the [aw'yer's trust account pending closing, 40 Seller's broker, to be deposited or held by broker acc0~ing to the requirements of Minnesota Statutes, 4~ Other/descr/be how the earnest money will be held] 43 receipt of which is hereby ect(nowiedged and $ 175.0~ 00 cash, on 2g04 __ , the DATE OF CLOSING, and 44 the balarme of $ O.O0 by financing as shown on the attached Financing Addendum. 45 46 6. DEED/MARKETABLE TFFLE. Upon performance by Buyer, Seller shall execute and deliver a Warranty Deed, joined 47 in by spouse, if any, conveying marketable title of record, subject to: 48 A. Building and zoning laws, ordinances, state and federal regulations; 49 B. Restrictions relating to use or improvement of the real property without effective forfeltura provisions; 50 C. Reserv'~tion of any mineral fights by the State of Minnesota; 51 D. Utility and drainage easemente which do not interfere with existing improvements; 52 E. Exceptions to title which constitute encumbrances, restrictions, or easements which have been disOosed to Buyer and accepted by Buyer 53 in this Purchase Agreement [must be specified in writing]: 54 7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Real estate taxes due and payable in and for the year of closing shell be pro- 55 rated between Seller and Suyer on a calendar year basis to the actual Date of Closing, unless othenvise provided in this Purchase Agreement. 56 If tax statements for such taxes are not available on the Date of Closing, the amount to be prorated shall be __ % of the 13riot year's taxes. 57 and such estimated proration shall be [strike one] F~IJlI{~Ma{~I~~I~'v~.,}O.~I~ I ADJUSTED UPON RECEIPT OF 58 l~X~[l~ll~ga~l~ll~Elll~(~{3~a~ (in which case the party entitled to a credit as a result of the adlustment shall receive 5g l~e amount of such credit from the other part3/within 30 days of issuance of the tax statements). Seller represents the taxes 0ua'and g)ayabte rn 80 year(s) 2004 will be FULL, Fa~', N~ll[-homastaad classification, unless Buyer changes the tax classification for taxes 61 payable in the year following closing by taking possession of the reel property as Suyer's homestead and filing a new homestead declarat~oo within 62 the time required by law. If the taxes due and payable in the year of cJosing are PART or NON-homestead classification, Seller shell pay to Buyer 63 at closing $ , in addition to Seller's prorated share of the taxes. If the taxes due and payable in the year 64 following ~losing are PART or NON-homestead classification and the closing takes place after the date by which Buyer must take possession 65 of the reel property as Buyer's homestead to file for homestead tax status for taxes due end payable in such year, Seller shell pay to Buyer at 66 ¢losthg $ as Seller's share of such taxes. 67 68 [St#ko one:] ~~il~Xll~l~ / SELLER SHALL PAY ON DATE OF CLOSING 69 all installments of special assessments certified for payment with the real estate texas due and payable in the year of closing. 70 [Sttfke one:] IF..I~I~I[~[~tI~I~I~I~(X / SELLER SHALL PAY ON DATE OF CLOSING all other special assessments levied as of the 71 date of this Purciaase Agreement. 72 [Strike one:] B(N'I~II~,MI~X / SELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as of the date of 73 this Purchase Agreement for improvements that have been ordered by the City Council or other governmental assessing authorities. (Seller's 74 provision for payment shall be by payment into escrow of I-1/2 times the estimated amount of the assessments.) As of the date of this 75 Purchase Agreement, Seller represents that Seller has not received a Notice of Hearing of a new public improvement protect from any 76 governmental aesssathg authority, the costs of which project may be assessed against the real property. If a special assessment becomes 77 pending after the date of this Purchase Agreement and before the Date of Closing, Buyer may, st Buyer's option: 78 Pu Assume payment of the pending special assessment without adjustment to the purchase pdce of the real property; or, 79 B. Require Seller to pay the pending special assessment {of eec/ow for payment of same as provided above) and Suyer shall pay a commen- so surate thcrease in the purchase pfins of the reel property, which increase shall be the same as the estimated amount of the assessment; 8'~ C. or Declare ~is Purctnaea Agreement void by notice to Seller, and earnest money shall be refunded to Suyer. Miller/Davis Co., SL Paul, MN--Fem~ 1300 (1994; Rev. 1996: Rev. 1997; Rev. 2002} M.S.B.A. Real Proberty Form Nc Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT t PAGE 2 82 [Strike one:] ~~(~[J~ / SELLER SHALL PAY ON DATE OF CLOSING any deferred real estate taxes 0ncludin.o "Green 83 Ac~es" taxes under Minn. StaL 273.111) or special assessments payment of which is required as a result of the closing of th~s sale. 84 Buyer shall pay real estate taxes due and payable in the year fotiOW~ng closing and thereafter and any unpaid special assessments pavaDre 85 therewith and thereafter, the payment of which is not otherwise pmvi(~3 herein, Seller makes no represental~on concerning toe amount Pt tu:ure 86 real estate taxes or of future special assessments. 87 88 S. DAMAGES TO REAL P~IOPERTY. tf the rear property is substantially damaged prior to closing, thss Purchase Agreement shal~ term~nat~ 89 end the earnest money shall be refunded to Buyer. If the real property is damaged materially but less than substantially prior to 90 Buyer may rescind this Purchase Agreement by notice to Seller within 21 days after Seller not~fres Buys? of such C~amage. during ~rn~C!' 91 21-day period Buyer may respect the real property, and in the event of such rescission, the earnest money shat[ de refunded to Buyer 92 93 g. SELLER'S BOUNDARY LINE, ACCESS, RESTRICTIONS AND LIEN WARRANTIES. Se~ier wa~ams that burldmgs ~t any are ent~re~ wzm.n 96 improvement of t~e rea~ property. These wan'antes shall su~wwe fl~e dehve~y of tlie Deed or Co~tract for Dee0 g7 98 10. CONDITION OF PROPERTY. ~* S'~]~ ~DTTTOlq.3,.T~ 99 100 A, Seller warrants that all appliances, fixtures, heating and air conditioning equipment, fireplaces (including mechamsms, c~ampers, flues, anC 101 doors), winng, and plumbing used and Iooate~l on the mai property will be in working orcier on the Date of Ctoslng Sel~er shati remove 102 debds, and all personal property not included in this sale from the real property before possession date Seller has no knowledge ~1 103 Dutch elm disease, oak wilt, or other disease of any trees on the real property. lO4 105 B. Seller knows of no hazardous substances or petroleum products having peen placed, stored, or reteesed from or On the real property by lO6 person in violabon of any law, nor of any underground storage tanks having been located on the real property at any t~me. except as follows 107 109 112 C. Seller's warrant~es ar~t representations contained in this paragraph 10 shall survive the delivery of t~e Deed or Contract for Deed. Any action t ~4 purchase of the real property. 116 D. Buyer shall have the dght to have inspections of the property conducted poor to closing. Untess required by local ordinance or lent/lng 117 regulations, Seller does not plan to have the property inspected. 119 E. Statutory Disclosure. Pursuant to Minnesota Statutes sections 513.52 - 513.60 (effective January 1, 2003), Seller must provide a wntten 120 disclosure [see (1) belowS, or Buyer must have received an inspection report [see (2) Pelow], or Buyer and Seller may waive the whiten 12~ disclosure requirements [see (3) below]. 122 123 Minnaso~ Sis'rotes Section 513.$7, Subd. 2. LIABILITY.A seller who fails tu make a disclosure as required by eSCUdOS 513.52 to 513 O0 and wa~ aware o~ 124 the condition of the real property is liable to the pros!tractive buyer. A person injured by a violsnon of this section may bnng a cp.,t{ actmn and 126 on which'the prospective buyer closed the purchase or transfer of the real proper'ry. 127 128 S~lect only one of these three:] 129 L_.J (1) Seller's Disclosure. Seller has provided a written disclosure to Buyer. A copy of Seller's disctosure is attached Seller shall correct m m30 writing any inaccuracies in the disclosure as soon as reasonably possible before closing. 132 Minnesota Statutes Section 513.55. GENERAL DISCLOSURE REQUIREMENTS. 13~ Subdivision I. CONTENTS. 136 significantly affect: 137 (1) an ordinary buyer's use and enjoyment of the property; or, 138 (2) any intended use of the property, of which the seller is aware. 139 Co) The disclosure must be rmd¢ in good faith and based upon thc best of'the seller's knowledge at the tame of the disclosure ~41 Minnesota Statutes Section 513.58. AMENDMENT TO DISCLOSURE. 142 Subdivision 1. NOTICE. A seller must notify the prospective buyer in writing as soon as reasonably possiblt, but in any cvem before closing, if thc eel 143 learns that the seller's disclosure required by section 513.55 was inaccurate. 144 Subdivision 2. FAILURE TO NOTIFY; LIABILITY.A seller who fails to notify the prospective buyer of say amendments to the initial dl$c}osure required 145 under subdivision I is liable to the prospective buyer as provided in section 513.57. 147 ~ (2) Inspection Report. Buyer has received an inspection report by a qualified third-party. If a copy of the inspection report is provided to 148 ~ Seller, Se#er shall disclose to Buyer materia~ facts known to Seller that contradict any information in the inspection report. 150 Minnesota Statutes Section 513.56 Subd. 3. INSPECTIONS. 15t (a) Except as provided in paragraph Co), a seller is not required to disclose information relating to the physical condmon of the real property if a wrme~l 152 report that discloses the information has been prepared by a qualified third party and provided to the prospective buyer. For pu~oses of' th~s uaragraph. 153 "qualified third party" means a federal, state, or local governmental agency, or any per~on whom the seller, or prospective buyer, reasonably behoves 156 CO) A seller shall disclose to the prospective buyer material fact~ known by the seller that contradict any thformation ~nctuded m a w~tt~n report under 157 para~ph (a) if a copy of the report is provided to the seller. 159 r-~ (3) waive~ of Disclosure. 161 Mimlesote Statutes Section 513.60. WAI¥]EI~. The w~itten disclosure required under sections 513.52 to SI3.&0 may b¢ waived if the seller and the 162 prospective buyer a~yee in w~itiog. Waiver of the disclusum required under sections 513.52 to 513.60 does not waive, limit, or abridge any obligation for 163 seller disclosure created by any other law. 164 ~65 Seller and Buyer waive the written disclosure required under sections 513.52 to 513.60. 166 ~s SELLER; BUYER; 1ss Casey M. Moo W. Peter Enck, PresicI~nt, New Hope EPA ~72 SELLER; BUYER;, 173 Amy P. Moo Dan/el J. Donahue, Executive Director, New Hope EDA Miller/Davis Co., St. Paul, MN-Form 1300 (19~4; Rev. 1996: Rev. 1997; Rev. 20Q2) M.S.B.A. Real Property Form Nc PURCHASE AGREEMENT / PAGE 3 Minnesota Standard Reeiqenriat Purcnese Agreement 174 Other than the warmnbes and representations made in this paragraph 10, the pro~erly is being sold 'AS IS" w~th no express or ~moi~ed 175 representations or warranties by Seller as to physical conditions, guality of construction, workmanship, or ~ess for any par~cular purpose. (Tn~s 176 paragraph is not intended to waive or limit any proviSO°ns of Minn. Stat., Chapter 327A.) 177 178 11, DISCLOSURE OF NOTICES. Seller has not received any nobce from any governmental authonty as to violation of any 179 regulation affecting the real property. If the real property is subject to resmctwe covenants. Salter has not recetveC~ any nonce from any Demon as 180 a breach of the covenants. Seller has not receiveq any nobce from any governmental au~onW, concemmg ar~y emlner~t domain, condemna:~o~. 181 speCial taxing diSthct, or rezoning proceedings. 183 12. TRUTH-IN-HOUSING, Buyer ac~nowie0ges receipt of the Truth-in-Housing Disclosure RaDon or other ~nsDect~or~ repor~ 184 municipality in which the real property is located. 185 186 13. POSSESSION. Seller shall deliver possession of the property not later than the date o£ ~osmg All mterest, tuet o~}. t~Ou~d petroieum 187 gas and all charges for CIW water. City sewer, etecthcity, and natural gas shall be prorated between the Danes as ortho i:~.tc 192 196 197 ]-F,~nm~~a[a~''~l~r~l~r~ *SEE ADDITIONAL TERMS 199 '15. TITLE CORRECTIONS AND REMEDIES. Seller shall have 120 days from receipt of Buyer's written title objections to make title marketable 2o0 Upon receipt of Buyer's title objections, Seller shalt, within ten {10) Ousiness days, notif7 Buyer of Setler's intention to make t~tle mar~etsble 20~ the 120 day period. Liens or encumt)rances for liquidated amounts which can be released by payment or escrow from proceeds of closing shall not 2~2 belay the closing. Cure of the defects by Seller shall be reasonable, diligent, and prompt. Pending correction of title, all payments required harem 203 and the Closing shall be postponed. ~04 A. If notice is given and Seller makes title marketsbis, then upon presentation to Buyer and proposed lender of documentation establishing that 205 title has been made marketaPis, and if not objected to in the same time and manner as the original title oblect~ons, the Closing shall take p~ace 2~6 within ten (10) business days or on the scheduled Closing date, whichever is later. 207 B. If notice is given and Seller proceeds in geo:l faith to make title marketable but the 120 day benop expires without title being made marketable, 208 Buyer may deClare this Purchase Agreement void by notice to Seller. neither pan'y sball be liable for damages bereunder to the other, an0 209 earnest money shall be refunded to Buyer. 210 C. If Seller does not give notice of intention to make title marketable, or if notice is given but the 120 clay peno~ expires wi~out title being made 211 marketable due to Seller's failure to proceed in good faith, Buyer may seek, as belTnitted by law, one or more of the follow~ng: 212 1. Proceed to closing without waiver or merger in the Deed of the objections to title and without waiver of any remedies, and may: 213 (al Seek damages, casts, and mesonable lawyer's fees from Seller as permitted by law Idamages under this subparagraph (al shall De 214 limited to the cost of cudng objections to title, and consequential damages are excluded); or 215 (b) Undertake proceedings to correct ~ objections to rifle; 216 2. Rescission of this Purchase Agreement by notice as provided herein, in which case the Purchase Agreement shall be null and void and al; 217 earnest money paid shall be refunded to Buyer; 21s 3. Damages from Seller together with costs and reasonable lawyer's fees. as permitted by law; 219 4. Specific performance within six months after such dgbt of action arises. 220 D. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements hereto. Seller may elect e~ther of 221 the following options, as permitted by law: 222 1. Cancel this con,act as provided by statute and retain a~l payments made hereunder as Ik:luidata~ 0amage$. The part,es acknowtectge their mlentton I~"aI any note 223 given pumuent to ~s contr~:t ~ a ~ ~ymee, t n¢3~. and may be presellted for 13ayment nOtwithstan(:img cancellatmn. 224 ~'. Seek specific performance within ax months after such right of action arises, inctuciing costs an(t reasonable lawyer's fees. as permitted by taw 225 E. ~f~tieismarketabie~rism~dema~ketab~easpr~videdherein~andSe~er~ef~u~ts~nany~tt~eagreements~e~em~0uyermay~aspermttte~byiaw 226 1. Seek damages from Seller including costs and reasonable lawyer's fees; 227 2. Seek specific performance within six months after such right of action ariSes. 228 229 t6. NOTICES. All notices required herein shall be in writing and delivered personally or mailed to the address as shown at Paragraph 1 above and, 230 if mailed, are effective as of the date of mailing. 231 232 t7. SUBDIVISION OF LAND. If this sale constitutes or requires a subdivision of land owned Dy Seller, Seller shall pay all subdivision expenses and 233 obtain all necessary governmental approvals. Seller wamants that the legal description of the real propert~ to be conveyed bas been or wi[t be 234 approved for recording as of the Date of Closing. 235 236 t8. MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota. 237 235 t9. WELL DISCLOSURE./Check one of the following:] 239 Seller certifies that Seller does not know of any wells on the real property. 240 -~ Wells on the real property are disclosed by Seller on the attached Well Disclosure form. 241 242 20. SEWAGE TREATMENT SYSTEM diSCLOSURE. 243 [Chec~k either A of ~:] 244 ~_~ A. Seller certifies that sewage generated at the property goes to a facility pe~nitted by the Minnesota Pollution Control Agency (for 245 example, a city or muniCipal sewer system). 246 __ B. Seller certifies that sewage generated at the proped;y does not go to a facility permitted by the Minnesota Pollution Control Agency 247 and Seller's Disclosure of Individual Sewage Treatment System is attached (attach form). 248 [Check e/ther C or D:] 249 __ C. Seller does not know if them is an abandoned individual sewage b'eab~ent system on the property. 250 D. ~ knows that there [stdke one:] are I am no abandoned individual sewage treatment systems on the property If Seller discloses 251 -- the existence of an abandoned individual sewage treatment system on the property, then Minnesota law requires that the Iocabon 252 of the system be disclosed to Buyer with a map. iArtach Seller's Disclosure of Individual Sewage T~eatment System With reel) completed. / 253 254 2t. LEAD PAINT DISCLOSURE. [Check one of the following:] 255 Seller represents that the dwelling wes constructed on the real property in 1978 or later. 256 ~ Seller repmoents that the dwelling was constructed on the real property before 1978. (If such housing is located on the real prep- arty. 257 attached and made a part of this Purchase Agreement is "LEAD PAINT ADDENDUM FOR HOUSING CONSTRUCTED BEFORE 1978' ) 256 259 22. WETLANDS, SHORELAND, AND FLOOD PLAIN CONCERNS. Currently the law does not require Seller to disclose Seller's knowledge, if any. 26o of the existence of wetlands, shoreland, or flood plain on or affecting the real property. If Buyer has not already investigated these [Check the box ff Eae f~llowing proWslo/1 261 concerns, Buyer might want fo include Seller's disclosures regarding these concerns, ep~es to this Purchase Agreement:) 262 TO PURCHASE AGREEMENT: WETLANDS, SHORELAND AND FLOOD PLAIN DISCLOSURE, M.S.B.A. Real Properly Form No. 8 (1997), is 263 included as an addendum to this Purchase Agreement. 264 265 23. SELLER'S AFFIDAVIT. At closing, Seller shall supplement the warranties and representations in this Purchase Agreement by executing and 2e6 deliveeng a Minnesota Uniform Conveyanclng Blank [Form No. 116-M, 117-M. or 118-M] Affidavit of Seller, 267 Miller/Davis Co., St. Paul, MN-r-on~ 1300 (19~4; Rev. 1996: Rev. 1997; Rev. 2002} M.S.B.A. Real Pro!oerW Form Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT / PAGE 268 24. CLOSING. Closing shall be at the office of Seller's lawyer. Buyer's ti0e insurer, or at some other mutually agreeable location 269 270 [State otherlocaUon:] New Hope Ci.ty Hall 4401 Xylon Avenue North New Hnpe_ Minnesota 271 At closing. Seller and Buyer shall disclose their SOCml Security Numbers or Federal Tax Ibentification Numbers for the purposes of comPletm.c 272 state and federal tax forms. 273 274 25. ADDITIONAL TERMS: * 14. EXAMINATION OF TITLE Buyer shall obtain_ [tL~¢IIdES_tLXpclI~. ;t C_ommitrrt¢llt for an 275 Owner's Policy of Title Innurance on a current ALTA form issued by an insurer licensed to ~Tite title lll~uranc~lD. 276 ~qeller ~hall be responsible for pa?hoot of those costs necessaD' to prepare such Commitmdm~ in¢luc[i.ag buLnot ILmttcd 277 abs~acting feet name search fees_ service charges_ etc. Buyer shall pay the premium for the l~¥,'ller~ P_olic5 _o~_'l'llIc h~uranc;., 278 Buyer qhall have ten (10) business days after receipt of the Commitment for Title Insurance to provide~.~eJJ, cr with ~cop3. oI thc 279 Commitment and written o~ections. Buyer shall be deemed to have waived any title objections noLlI~rte~within thc ten ~ 10) da} 280 period above: except that this shall not operate a_q a waiver of Seller's covenant to deliver_~LStaturoD' WarrantsLDedd. tmldas a 281 Warran .ty Deed is not specified above_ If' Buyer obtains title insurance Buyer is not waiving the l'ot~lo~btall~ good. ;uld 282 marketable title of record fi.om Seller_ 283 284 ** SEE EXI4IRIT A ATTACHED I-~RETO 285 ._ _ 286 287 26. ADDENDA. Attached am addenda which are ma0e a part of this Purchase Agreement. 288 2a~ 27. TIME IS OF TNE ESSENCE. Time is of the essence for all provisions of this Purchase Agreement. 290 291 ~8. MULIIPLE ORIGINALS. Seller and Buyer have signed [number] 3 onginals of this Purchase Agreement 292 293 294 295 296 297 I THIS IS A_LEGALL¥ BINDING CONTRACT. BEFORE SIGNING, CONSULT A LAWYER. Minnesota law permits licensed real estate :>98 I brokers and cotes agents to prepare purchase agreements, No recommendation or representation may he made by any real estate 299 broker or sales agent as to the legal sufficiency, the legal effect, or the tax consequences of this contract. These are questions for 300 your lawyer. I agree to sell the property for the price and terms and conditions I agree to purchase the ~roperty for the price and terms anO set forlh above, conditions set forth above. SELLER: BUYER: Casey M. Moo (date) W. Peter Lock, President (date l SSN: New Hop~ EDA SELLER: BUYER:, Amy P. Moo (date) Daniel J. Donahue. Execunve D~rector (date) SSN: New Hope EDA This Purchase Agreement was prepared by: Jdnscn & Sondrall, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, Minnesota 55443 Telephone: (763) 424-881 I Facsimile: (763)493-5193 Others who will assist Seller or Buyer with this transactfon: Lawyer For Buyer Telephone: Facsimile: Steven A. Sondrall Jenson & Sondrall, P.A. 8525 Edinbrook Crossing Suite 201 Brooklyn Park, MN 55443 (763) 424-8811 103391 i L~tlr,~ Agent and Broker for this transaction am: Telephone: Facsimile: N/A Selling Agent and Broker for this transection are: Telephone: Facsimile: N/A Miller/Davis CO., SL Paul, MN. Form 1300 (19~4; Rev. 19cJ6; Rev. 1997; Rev, 2002) M.S.B,A. Real Pro0erty Form No. Minnesota Standard Resi~enlJal Purchase Agreement PURCHASE AGREEMENT / PAGE Buyers or Lender'$ 7-~e Insurec Telephone: Facsimile: Old Republic National Tide Insurance Company 400 Second Avenue South Minneapolis, Minnesota 5540l Miller/Daws Co. (~ St Paul, MN 651-642.1983 ,~'"" Form 1519Y ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS This fon'n approved by the Minnesota AssOOat=on of REALTORS®, which (liscla~ms any tiabili~' arising out of use or misuse of this form © 2000, Minnesota AssOCiation of REALTORS®. Edma MN Date __ Page Addendum to Purchase Agreement between parties dated . _ _February. .... 2004. penalning to the purchase and sale of the property at 7609 Bass l.ake Road_ New Hope. Minnesota 55428_ Section 1: Lead Warning Statement Every' purchaser of any interest in residential real properO' on which a residential dwelling was buih prior to 19 eS ts not,tic,? ~i~,:: such property may present exposure to lead from lead-based paint that may place young chddre~: at r~s'~ ~t ac~tdopm.,,, , ,:..' poisoning. Lead poisonmg in young children may produce permanent neurological damage, including icarntng disabdmc~ reduced intelligence quotient, behavioral problems, and impaired memom. '. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property ts required to provide thc but'er wltJt anv t~?ormatton on/'c,ld-bast'd' paint hazards from risk assessments or inspections tn the seller's possession and nott.~_' the bm'er Qf any known icad-basc,l /~atn: hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended pr, or to purchase Seller's Disclosure (initial) ~ (a) Presence of lead-based paint and/or lead-based paint hazards (check one below): [] Known lead-based paint and/or lead-based paint hazards are present in the housing ~ explain). [] Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing. ~ (b) Records and reports available to the seller (check one below): [] Seller has provided the purchaser with all available records and repons pertaining to lead-based pain! and or lead-based paint hazards in the housing (list documents below). ] Seller has no reports or records pertaining to lead-based paint anduor lead-based paint hazards tn 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 ~bur 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 ] Waived the opportunity to conduct a r/sk assessment or inspection for the presence of lead-based paint anti, or lead/based paint hazards. Real Estate Licensee's Acknowledgment (initial) N/A (0 Real estate licensee has infomaed the seller of the seIler'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 provided by the signatory is true and accurate. Casey M. Moo W. Peter Enck, President. New Hope EDA Seller Date Purchaser Date Amy p. Moo Daniel J. Donahue, Executive Director. New Hope EDA Seller Date Purchaser Date Real Estate Licensee Date Real Estate Licensee Date 8~e~,~Co. ntingeney (Initial only if first box under Purchaser's Acknowledgment letter (e) above is~ ~,,lll~traet is contingent upon a risk assessment or an inspection of the property for the presence of l~il~A[a"~paint and/or [_eff:l~,b~as~~ conducted at the purchaser's expense· The assessment or inspectto~ompleted .t? (_10)/. '---: ealen ~~ acceptance of the Purchase Agreement. This cont~l~t~all be deemed removed, and the the~Psl~l~ ~'j~mem shall ~~-e'~'~t, unless purchas~g or acting on behalf of ALE (9/00) Idhller,~De'~3s CO. ~ St. Paul. MN 651-642-1958 ~i~,~' Form 1519WD (R~ WELL DISCLOSURE STATEMENT This form apDroved Dy ~e M~nnesota A.ssooat~on of REALTORS®i whic~ chscia~ms any liabila~, arising OUt of use or misuse of t~is form © 2003. Minnesota Association of REALTORS®. Eclma. MN 1. Date 2. Page I of __ ._ Pages: THE REQUIRED MAP 3. ATTACHED HERETO AND MADE A PART HEREOF 4. Minnesota Statutes Sec. 1031.235 requires that before signing an agreement to sell or transfer real properly. Se,e: 5. must disclose information in writing to the Buyer about the status and location of all known wells on the property 6. requirement is satisfied by delivering to the Buyer either a statement by the Seller that the Seller boas not know of 7. any wells on the property, or a disclosure statement indicating the legal description and county, and a map showing 8. the location of each well. In the disclosure statement the SelJer must indicate, for each well. whether the well ~s 9. use, not in use or sealed. 10. Unless the Buyer and Seller agree to the contrary, in writing, before the closing of the sale, a Seller who fads to 11. disclose the existence or known status of a well at the time of sale and knew or had reason to know of the existence 12. or known status of the well, is liable to the Buyer for costs relating to sealing of the well and reasonable attorney fees 13. for collection of costs from the Seller, if the action is commenced within six years after the date the Buyer closed the 14. pumhase of the real property where the welt is located. 15. Legal requirements exist relating to various aspects of location and status of wells. Buyer is advised to contact the 16. local unit(s) of government, state agency, or qualified professional which regulates wells for further information about 17. these issues. 18. Instructions for completion of this form are on the reverse side. 19. PROPERTY DESCRIPTION 20. Street Address 7609 Bass l.ake Road: New Hope , _ 55428 .... Cit) Ztp Count', 21. LEGAL DESCRIPTION: Tracts C and 1), Re~eistered Land~urve)'~ 848, Henacpin Count), Minnesota. 22. 23 25. WELL DISCLOSURE STATEMENT 26. (Check the appropriate box.) 27. [] The Seller certifies that the Seller does not know of any wells on the above described real property. 28. (If this option is checked, then skip to the last line and sign and date this statement.) 29. [] The Seller certifies that the following wells are located on the above described property. 30. MN Unique Well Year of Well IN USE NOT IN SEALED 31. Well No. Depth Const. Type USE 3z we, [] [] [] We,, 35. NOTE: See definition of terms "IN USE," "NOT IN USE," and "SEALED" on lines 83-92. If a well is not in use, 36. it must be sealed by a licensed well contractor or a well owner must obtain a maintenance permit from the 37. Minnesota Department of Health and pay an annual maintenance fee. Maintenance permits are not 38. transferable. If a well is operable and properly maintained, a maintenance permit is not required. 39. OTHER WELL INFORMATION 40. Date well water last tested for contaminants: Test results attached? YesF'~ No[~ 41. Comments: 42. Contaminated Well: Is there a well on or serving the property containing contaminated water? YesF---~ No~--'-~ 43. SEALED WELL INFORMATION 44. For each well designated as sealed above, complete this section. 45. When was the well sealed? 46. Who sealed the well? 47. Was a Sealed Well Report filed with the Minnesota Department of Health? Yes[--"J No]-"-~ 48. MAP 49. Complete the attached MAP showing the location of each well on the real property. 50. This disclosure is not a warranty of any kind by the Seller(s) or any Licensee(s) representing or assisting any 51. partylies in this transaction, and is not a substitute for any inspections or warranties the party/les may wish to obtain. 52. CERTIFICATION BY SELLER 53. I certify that the information provided above is accurate and complete to the best of my knowledge. 54. Casc¥ M. Moo AmY P. Moo (Sellbr or Designated Representative) (Date) (Seller or Designated Representative) (Date) 55. BUYER'S ACKNOWLEDGMENT 56. u ' Pet~ Enck, President, New Hol~ EDA Daniel J. Donahue, Executive Director, New Hope EDA yet) (Date) (Buyer) (Date) 57. MN-WDS-1 (10/03) ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER WELL DISCLOSURE STATEMENT 58. Page 2 of ..... Pages. 59. INSTRUCTIONS FOR COMPLETING THE WELL DISCLOSURE STATEMENT 60. DEFINITION 61. A "well" means an excavation that is drilled, cored, bored, washed, driven, aug, lettec, or otherwise constructed it tr~e 62. excavation is intended for the location, diversion, artificial recharge, or acquisition of groundwater. 63. MINNESOTA UNIQUE WELL NUMBER 64. All new wells constructed AFTER January 1, 1975 should have been assigned a Minnesota unique well number b~ 65. the person constructing the well. If the well was constructed after this date you should nave the un~que weir number m 66. your property records. If you are unable to locate your unique well number and the well was constructed AFTER 67. January 1, 1975, contact your well contractor. If no unique well number is available, please indicate the depth an~ 68. year of construction for each well. 69. WELL TYPE 70. Use one of the following terms to describe the well type. 71. WATER WELL: A water well is any type of well used to extract groundwater for private or public use. Examples of 72. water wells are: domestic wells, drive-point wells, dug wells, remedial wells, and municipal wells. 73. IRRIGATION WELL: An irrigation well is a well used to irrigate agricultural lands. These are typically large 74. diameter wells connected to a large pressure distribution system. 75. MONITORING WELL: A monitoring well is a well used to monitor groundwater contamination. The well is typicarl¥ 76. used to access groundwater for the extraction of samples. 77. DEWATERING WELL: A dewatering well is a well used to lower groundwater levels to allow for constructior~ or 78. use of underground spaces. 79. INDUSTRIAL/COMMERCIAL WELL: An industrial/commercial well is a nonpotable weir used to extract 80. groundwater for any nonpotable use including groundwater thermal exchange wells (heat pumps and heat loops). 81. WELL USE STATUS 82. Indicate the use status of each well. CHECK ONLY ONE (1) BOX PER WELL. 83. 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 84. that operates for the purpose of irrigation, fire protection, or emergency pumping. 85. 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 86. sealed by a licensed well contractor. 87. SEALED:- A well is "sealed" if a licensed contractor has completely filled a well by pumping grout material 88. throughout the entire bore hole after removal of any obstructions from the welh A well is "capped" if it has a metal 89. or plastic cap or cover which is threaded, bolted, or welded into the top of the well to prevent entry into the well. A 90, "capped" well is not a "sealed" well. 91. If the well has been sealed by someone other than a licensed well contractor or a licensed well sealing contractor, 92. check the well status as not in use. 93. If you have any questions, please contact the Minnesota Departmeni of Health, Well Management Section at (651 ) 94. 215-0819 (metropolitan Minneapolis,St. Paul) or 1-800-383-9808 (greater Minnesota). 9,5. ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER Form t519SS ~R¢'. PRIVATE SEWER SYSTEM DISCLOSURE This form approved by me Minnesota Assoc~abon ct R~LTOR~. ~i~ O~s~a~ms any i~abih~ arising ~t of use or m~suse of ~s ~ ~ 2002, Minn~o~ ~ooau~ of R~LTOR~, EOma. MN ~. Date 2, Page 1 of Pages: THE REQUIRED MA~ 3. A~ACHED HERETO AND MADE A PART HEREOF 4. Prope~ located at ~ ~c ~ 5. in the Ci~ of New Hope Coun~ of Henncpi~ _ State of ~e~ .... legally Oescnbea as follows 6. affacned sheet (the "Pmpe~") ~act~ ~ and D_ ReEi~tere~a~d ~~~.C9~.~¢SO~ 7. 8. This dis~osure is not a wa~n~ of any kind by the Seller(s) or any Licensee(s) representing or assisting any Pa~y(s) ~n th~s 9. transaction, and is not a subs~tute for any ins~ctions or wa~nfies ~e Pa~(s) may wish to obtain. 10. BUYER{S) AND SEL~R(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE AND/OR INSPECTIONS ~. OF THE SEWER SYSTEM AND TO PROVIDE FOR APPROPRIATE PROVISIONS IN A CONTACT BE~EEN 12. BUYER(S) AND SELLER(S) WITH RESPE~ TO ANY ADVIC~INSPECTION/DEFECTS. 13. SELLER'S INFORMATION: The following Seller disclosure satisfies MN. Statutes Chapter 115.55. The Seller d~sc)oses 14. following info~afion with the knowledge that even thoug~ this is not a warrant, prospective Buyers may rely on this ~nformat~on 15. in deciding whe~er and on what te~s to purchase the Prope~. The Seller(s) authorizes any Agent(s) representing any 16. in this transport to provide a ~py of this statement to any person or enti~ in connection with any actual or anticipated sale 17. the Pm~. 18. Unless the Buyer and Seller agr~ to t~e ~ntra~ in writing before t~e closing of the sale. a Seller who fails to disclose the 19, existence or known s~tus of an individual sewage ~ea~ent system at the time of sale, and who knew or had reason to know 20, the existence or kn~n s~tus of t~ system, is liable to the Buyer for cos~ relating to bnnging the system rotc compliance with 21. individual sewage treatment system rules and for reachable a~omey fees for collection of costs from the Seller. An action under 22. this subdivision must be commenced within ~0 years after the date on which the Buyer closed the purchase of the real pro~e~, 23. where the system is lo.ted. 24. Legal requirements exist relating to vadous aspects of location and status of individual sewage treat~nt systems. Buyer 25. advised to ~n~ the Io~1 unit(s) of government, s~te agency or qualified professional which regulates individual sewage 26. treatment systems for fuRher info~ation about these issues. 27. The following are represen~tJons made by the Seller(s) to the e~ent of the Seller(s) actual knowledge. This info~ation is a 28. disclosure and is not intended to be par of any ~ntmct baleen the Buyer and Seller. 29, PRIVATE S~ER SYSTEM DISCLOSURE (CHECK THE APPROPR/ATE BOX.) 30. ~ The Seller ce~fies that the Seller does not know of any pdvate sewer system on or se~ing the above ~escribeO rea~ 31. ---' pmpe~. (If this option is checked, then s~p to the last line and sign and date this statement,) 32. ~ The Seller ceRifies ~at the foltowing private sewer system is on or se~ing the a~ve described real prope~y. 33. ~PE (Check app~pfiate~x(es) and indicate Iocati~on a~ac~ed MAP) ~ 34. ~ Septic Tank: ~ wi~ drain field ~ with mound system ~ seepage tank ~ with open ene 35. ~ ~aled System (holding tank) 36.~ ~her (Descd~): 37. Is the sewer system(s) cuffenfly in use? Yes No ~ 38. NO~: If any water use appliance, ~dr~m or bathroom has ~n added to the Prope~y, the system may no longer 39. comply with applicable sewage treatment laws and rules. 40. Is the sewer system(s) in ~mplian~ with applicable sewage treatment system laws and rules? Yes _ No ~ 41. When was ~e sewer system installed? Ins~ller Na~/Phone: 42. 43. Where is ~nk Io~t~? ~. W~t is ~nk s~e? _ When was the ~nk last pumped?~ How o~en is tank pumped~ 45. Where is the d~in field located? 46. What is the drain fi~ s~e? .......... 47. Descdbe wo~ ~ to ~e system since you have owned the Pmpe~: 48. 49. D~e wo~ pe~by ~om: 5O. Is s~er system en~rely wi~in Pmpe~ bounda~ lines, including set back requirement?, _ 51. Is ~e ~em shar~? How many uni~ on system Annual fee? 52. Commen~: ~, On this Pmpe~:_ ~. Approximate number of: people using ~e sewer system showe~ba~s taken per week , wash loads per week ~_ 55. Dis~n~ ~n well and s~er system: ~. Have you received any no~ces ~m any government agencies rela~ng to the sewer system? Yes~ No ~__ 57. If "Y~", see a~ched noah. MN-PSSD (~02) O~GINAL COPY TO USING BRO~R; COPIES TO $ELLE~ BU~ SELLING BROKER Form 15t9SS IRa,,. S/021 PRIVATE SEWER SYSTEM DISCLOSURE 58. Page 2 59. Are there any known defects in the sewer system? Yes No 60. If yes, please explain 61. 62. 63. SELLER'S STATEMENT: (To be signed at time of listing) 64. I / We, Seller(s) of the Property acknowledge/he above Private Sewer System Disclosure and MAP an~ authorize L,sting BroKer to (~rsclose 65. information to prospective Buyers. 66. (Seller) Casey M. MOO (Date) (Seller) Amy P. Moo ~Dale 67. BUYER'S ACKNOWLEDGMENT: (To be signed at time of purct~ase agreement) 68. I/We, the Buyer(s) of the Property acknowledge receipt of the Private Sewer System Disclosure and agree that no representation 69. regarding the condition of the Private Sewer System have been made, other than those made above. LISTING BROKER AND 70. LICENSEES MAKE NO REPRESENTATIONS AND ARE NOT RESPONSIBLE FOR ANY CONDITIONS EXISTING IN THE 71. PRIVATE SEWER SYSTEM, 72. (Buyer) W. Peter Enck, President (Date) (Buyer)Da.~ie] J. Donahue, Executive D~rect,~r New Hope EDA New Hope EDA 73. SELLER'S ACKNOWLEDGMENT: (To be Slgned at time of purchase agreement) 74. AS OF THE DATE OF THE ACCEPTANCE OF THE PURCHASE AGREEMENT, I/We, the Seller(s) of the above Property, agree 75. that the condition of the pdvate sewer system is the same as noted above, including changes indicated above which have been 76. initialed and dated. 77. (Seiler)Cascy M. Moo (Date) (Seller)Amy P. Moo ~'Date 78. ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER Mi#m*FOaWS Co. ~ St Paul, MN 651~42-1985 ~g~.~' FO~ 1519 MAP (Rev, 7/~ PRIVATE S~ER SYSTEM AND/OR WELL LOCATION MAP This fo~ app~ve~ by ~e M~nneso~ ~so~a~on cf REALTORS~, ~ich a~s~a~ms any habiht} arising out of use or misuse of ~s fo~. Date Page 1 of ~ Pages 2, Please use ~e spa~ below to sket~ ~e real pro~ ~ing sot~ and ~e I~aon of each ~ SEWER SYSTEM_ WELL on the PrcDe~, (chec~ a~l ~at apply) 3, Include approximate dis~n~s ~ fixed refemn~ poin~ su~ aS str~, buildings and landmams. 4. Pro~ Io~ted at: ~~~ ~¢~ M~¢S~ 5. ATI'ACH ADDITIONAL SHEETS AS NEEDED 6. Seller and Buyer Initial: Seller{s) ,, Buyer(s) .. 7. MN-PSSWM (7/94) ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER EXHIBIT A ADDITIONAL TERMS RELATING TO PURCHASE AGREEMENT FOR 7609 BASS LAKE ROAD Seller makes no warranties as to the condition of the property and Buyer acknowledges that it is purchasing the property in its "as-is" condition. Buyer further acknowledges and agrees that it shall be responsible for all costs related to the sealing of the water well on the property. Buyer acknowledges that relocation assistance benefits will be paid to the Seller, as required by law, and the differential payment benefit on the purchase of a replacement property resulting from the sale of the subject property shall be increased to a maximum of $34,000.00 if Sellers' cost to purchase a replacement property equals or exceeds $209,000.00. SELLER: Dated: February ~, 2004. Casey M. Moo Dated: February __, 2004. Amy P. Moo BUYER: THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE Dated: February __, 2004. By: W. Peter Enck Its: President Dated: February __, 2004. By: Daniel J. Donahue Its: Executive Director P:\Attorney~JLB\l-Client Folders\CNH\CNH99.11307-001-Exhibit A.doc LAW OFFICES STIClt, ANGELL, KREIDLER & DODGE, P.A. THE CROSSINGS. surrE 120 2~0 SECOND AVENUE SOLrlTI MINNEAPOLIS. MINNESOTA 55401-2190 TELEPHONE (612) 333-625 ! ° FACSIMILE (612) 333-1940 E-MAIL: mfo~a~t~chiaw.com ROBERT T. STICH JOHN F. ANOELL Writer's E-mail Address: MICHAEL S. KREIDLER 1 kdodge~ stichlaw, com KENNETH W. DODGE! JAMES D. KNUDSEN* ! Writer's Direct Dial: LEO I. BRISBOI$ LOUISE A. BEHRENDT (612) 305-45?4 OARTH J. UNKE*2 STACEY L SEVER January 30, 2004 C"ER~ CIVIL TRIAL SPECIALIST ALSO ADlvii i ~=DTO PRACTICE IN WISCONSIN 2 ALSO ADMI i I~D TO PRACTICE IN H. LINOIS Kirk McDonald Director of Community Development 4401 Xylon Avenue North New Hope, Minnesota 55428 RE: January 30, 2004 meeting with Casey and Amy Moo regarding proposed eminent domain proceeding Dear Mr. McDonald: Thank you for taking the time to meet with the Moo family on January 30, 2004. I believe that the meeting was both informative and productive. As I indicated at the meeting, Casey and Amy Moo would like to avoid the time and expense of a contested eminent domain proceeding. The Moos are extremely concerned, however, that the City of New Hope's purchase offer of $I 75,000, coupled (vith the differential replacement housing payment of $29,900, is insufficient to permit them to obtain comparable housing in the present market. This is particularly mae in light of the Moos' personal financial circumstances and the large principal balance owing on theft existing montage. The City's calculation of the differential replacement housing payment was based upon a comparable dwelling valuation of $204,900. One of the additional comparable properties identified and considered was valued at $209,000. The Moos would be willing to permit acquisition of their home if the maximum differential replacement housing payment is calculated upon the $209,000 comparable dwelling. This would result in a maximum differential replacement housing payment of $34,000. Kirk McDonald January 30, 2004 Page Two The Moos understand that the increase in the maximum differential payment will not result in an additional cash payment to them. If the Moos purchase a replacement home at or below $204,900, then there would be no additional cost to the City through the increased maximum differential. Although not directly addressed in our meeting, the Moos have the following points of understanding with respect to reimbursable incidental expenses and increased mortgage costs: 1. Any pre-payment penalty incun-ed by the Moos with respect to present mortgage financing shall be paid as an incidental expense; 2. The Moos arc entitled to reimbursement of the costs of a yet unsubmitted appraisal bill in the mount of the actual appraisal cost, not to exceed $1,500; 3. The payment of points and/or the lender's origination fee for the new home are reimbursable closing costs; 4. Costs associated with the search for a new home, such as day care and mileage expense, are reimbursable; 5. With the exception of the expense of capping an existing well, if necessary, there will be no additional remedial charges, and the Moos' home would be accepted "as is;" 6. The Moos are entitled to remove and maintain appliances and fixtures from their present home, without reduction of either the purchase price or' differential payment; 7. The Moos will not be required to vacate the premises prior to August 1, 2004. Please advise if any of these points is in dispute. The above is intended as a pm~ial list of items necessary to make the Moos whole within'the meaning of the statute. Kirk McDonald January 30, 2004 Page Three You have indicated that you are reccpfve to the proposed increased maximum differential payment, and will recommend acceptance of the proposed increased differential payment at the February 9, 2004 CounCil meeting. Thank you again for your assistance in this matter. Very truly yours, STICH, ANGELL, KREIDLER & DODGE, P.A. Kenneth W. Dodge -~ ' ~ ~/'~' KWD/aad CC: Casey and Amy Moo Doresk¥ Ken From: Steven Carlson [StevenC@elsco.net] Sent: Tuesday, February 03, 2004 2:42 PM To: Doresky Ken Subject: Moos reimbursement requests! Good afternoon Ken: I reviewed the letter which was sent from Mr. Lodge the Moo's attorney and it is my opinion that everything seems to be a resonable request. Under 24.301 of the federal regulations it states that any displaced owner occupant or tenant of a dwelling who qualifies as a displaced person as the Moo's do are entitled to payment of his or her actual moving and related expenses, as the (Agency) or the City of New Hope in this case determines to be resonable and necessary. My opinion is that day care and mileage would fall under the reasonable catagory. The Moo's have a new infant and the weather conditions make it difficult to go out and look at homes with a new baby. This day care amount should be monitored to make sure it is an actual and reasonable expense needed while looking at replacement properties and not for anything which isn't needed to secure a replacement home. Also as the mileage reimbursement would be a minimum amount. They are focusing around the New Hope, Crystal area so mileage will not be excessive. Also they are working with a realtor who will be providing transportation when showing them homes. Again the (Agency) the City of New Hope has the finalsay what they feel is reasonable and necessary. If there is anything more you need just let me know. Thanks Steve Steven Carlson Relocation Manager (651)882-0200 Stevenc@elsco.net 30120321 Pro ~d~n~ Qualh~ Appra~s for Busy Lenders DATA SUMMARY Client: City of New Hope/Ken Doresky 4401 Xylon Avenue N. New Hope, MN 55428-4898 Bo~ower: NIA Address: 7609 Bass lake Road New Hope, MN 55428 Value: S175,000 Date: December 12, 2003 Appraiser: Gregory V. Callahan, Cert Rssl Real Prop Client File: Moo Forsythe File: 30120321 222 EAST LITTLE CANADA ROAD, ST. PAUL, MINNESOTA 55117 (612) 486-95S0 / FAX: (612) 486-9732 UNIFORM RESIDENTIAL APPRAISAL REPORT ;...~. ~.~,~ c~ New Hope sine MN ~ ~ 5~28 , No C and D ~ Henne~n ~~. 0511821330089 l~v~ 2003 KE l~S 1.291.79 ~~ None ~ N/A ~ ~ Moo. Case~& Amy ~: ~1 ~ ~ ]~ ~ v~ ~; ~ ~ ~ ~ ~ ~ None N/A ~ D2-91 ~;~ 512~021 ~S N/A ~ NIA ~~~~~~ None Domsk~ ~ ~01 Xylon Avenue N.. New Ho~. MN 5~2~898 C~. Ce~ Re~ Real .~s ~2 Lffile Canaaa Road. Lffile Canaaa. MN 55117 ~ ~ 350 ~ 65~ "15%lloNOlAppl~ble ~ I~) [, ~ t~ 20%' ~, 180 ~ 35 ~Vacant ~ a~ ~ m~: ~ ~e~'s ~iRh~ ~u~ah~ are Br~klyn Park to the no~h. Golden Valley ~ ~, Coun~ Rd. 81 to ~ ea~ a~ ~h~y 169 to ~ ~, T~s ~ an ~e~ ~.~ ~;~ ~ ......... . . . . Ban ~ke R~ b on ~o~ ~ol ~t. Cot~ R~ 81. · I~1 ~ffic ofle~ is ~in o~ ~le and r~ro~on. Pro~ values hove ~efl increa~ ~ a~6a is ~. J~-~e~.,,~ do confo~ to ~e ~.~ ho~. T~ ~gh~ has aff~i~ ~ ~'s ~iike~. S~ a~ for ~o~1 c~n~. ~1 p~ ~ ,~ t Ihl ~b)~ood, dl;l~ or Ibe ;mim~ ol u~a and ~lnang ~moas. etc.): s MLS ma~etm dJs~ ~362 MLS statistics Jndi~te that 87.40% of all listJ~~h an P time of 31~ Sellem are mc~ of ~e askJ~nce. Fmanct~resent hme lS0SF -- F~ ~. 27053C~192E value. G~ ~ ~ ~ ~ ~m ~T~ ~.d~ One ~ ~ No ~.FL N/A ~f Conc ~o.~ ~e ~ ~ Yes ~ N/A ~onc ~{~) ~ ~ ~t None ~f~) ~~ ~ N/A wm ~'onc ~N/A w~ N/A ~ ~ ~ ~ D~, ~ N/A ~ N/A ~ ~ ~) 52 ~ ~t N/A ~ N/A No N/A fffl'Ealo~ ~ HEATING ~(:a~N EOU/P. Al'TIC ,I,&r~IIITIES ~ FA ~ ~ ~ STAGE: w~ NIA M Gas ~.)s ~ ~ ~ ~ ~ _ ~ ~ 2 Car ~ 'NIA ~ Ye~;~ ~ ~ ~ ~ ~ N/A ~ ~ ~ ~ ~ in I#® aUPro~em~fll$ er m the mmmum Pmg~m'~ luimuu~ wummu~ ~t~um kt,m um 042 UNIFORM RESIDE~IAL APPRAISAL REPORT ,..,,~ 3012032~ ESTIMATED ~..r~_m_-_,_ _ ,~'TION COb'I'-HEW 0~: ~S~. _ I1~ ,~k4.. I~IMI lae~ CIiCU~I~I mhd lot HUD. VA ~.Ft Os ~ 0 ~ she vaiue as vaunt is ~s~ on manet tmnOs = Total e~nomic I~e of 100 ~. 7609 Bass ~ke Roa~ 5~9 Pen~anm Avenue ~8911 60 1~ Avenue N. ~6~8 Wm~tka Avenue N t New Approx. 1~ Mile Approx. 1~ Mile ~Approx. 3/4 ~ N/A $ 149.900 $ 172.000} ~ 183.700 v~~ 'Coumy Info. ;~ Da~n'Ma~et- , ,,.: ~ Da~.on.~et. ': .- ~ Days on ~=~ N/A Conv~ ~ : Conv~ ~ : C~v/0 ~ ~ NIA , , By Sel~r · * By SelMr ; B~ Seller :Fee Simple Fee Sim~e Fee S~ple ; Fee Simple 75~02 80x13~lnf, : 5,000 75x135~nf, S.~0 10~10511nf. : ~ Res~ential Similar Vmw : Similar Vmw : s~milar V:=w Average Qual. ; Si~;~ Qual~y ; ~Simi~r Oual~y : ~S~lar Quali~ : ,52 Y~. 51 Yea~ : 42 Yea= ~ 43 Yea~ c:._:~, Av~ Cond. Similar Cond. ~ Si~r Cond. ~ Sl~lar Cond None !None : I Fufl -3.500 Full ' : -3.50-- NIA N/A ,Avera e~ ' 0 Unfin~sh~ · 0 ~24S FIFin : ~2; Cnnr~.~ ~Gas FA ClAir~ Gas FA~/Air : ~s FA ClAir : Gas FA Cl~r : ~ ~kn~ .. ~nkn~ ~ ~kn~ . NIA , N/A ~N/A ~ N/A ~ maOe finished liltS. Per loCal MLS listing info,~*~ ~,~,,, ~~: I~i~t~ value b sa~s ~m ~on: 1 ~2~2 PmpelvaKk~t;s' 7EOgBlssl.,~eRoecl CMl'N0.: Moo ADDmONAL FEATURES: in addition, the subject has: a detached two car garage, cleck and central air. COMMENTS ON SA]ES COMPARISON: All comparabies have smaller lots and are infenor in site value. All comperables have one less bath and ar~-inferior ir~ *above grade room value. TRANSMITTAL LETTER: - · The subject was inspected on December"12, 2003:' The e*tir~atod market value as of December 'J2. 2003 (effective date), is $175,000. SCOPE - LIMITED ASSIGNMENT: Per client request, no interior inspection made. This appraisal is a limited assignment. Extent of investigation was viewed front aspect only. Source of date was found through previous appraisal and county records. If full a interior investigation were made, value conclusion may differ due to limited assignment' The properly was appraised by Gregory V. Caliahan, Licence Number 4002346, Certified Residential Real Properly Appraiser. A certified residential real property appraiser may appraise residential property or agricultural properly without regard to transaction value or complexity. This appraisal report is a "Summary Appraisal Report". It conforms to the 1997 Uniform Standards of Professional Appraisal Practica. No responsibility has been assumed for matters which are legal in nature, nor has any opinion on them been rendered, other than assuming marketable title. Liens and encumbrances, if any, have been disregarded and the property was appraised as though free of indebtedness. Please feel free to call us if you have a question. ADDITIONAL COMMENT~: 1. The purpose of the appraisal is to estimate the market value of the subject Properly for litigation purposes. 2. The legal des(:aiption of the subject property can be found on page 1 of the 1004 form. ;3. The reasonable marketing period for the subject property is under 90 days. past4' According36 monthst° the county and the MLS system, the subject property has not been transferred in the $. The subject property was inspected on December 12, 2003, the report was prepared on December 12, 2003, the effective date of the appraisal is December 12, 2003. 6. The subject is an existing strocture. This appraisal is made "as is." 7. Personal property was nut included in the el)praised value. 8. We have considered all three approaches to value. The lack of reliable rantal data of single family homes in this income approach w~s not utilized due to neighbo/hood. The cost ~lppro~ch was considered but not GOnSiderad applicable, therefore it was not included. g. The subject is a single family resi(lenbal property. Revenues. expenses, and/or vacancies (lo not apply. 10. Cu~ent and future employment or compensation is not contingent upon the reporttng of a pre(letermine(l value or direction in value that favors the sause of the chent, the amount of the value estimate, the attainment of a stipulate(l result or the occun'ence of a suDsequent event. 11. This appraisal report was completed in conformity with the Uniform Stan(laras of Professional Appraisal Practice. 12. If the photos included in -this a~;=Jsal are":' "' '"' .... '~mn ....... :-, .c digital/electronic images, they have not been enlarge(l, enhanced, or altered in any way. !3.. If. e~ctronic. Jdigital sJg~natu~s il~L...~e,l:l., it .t~s been role, ,~aCl~Ip~.ble appr. aisal-practic~e, by... usUAl.- ..... ~ ............................... 14. The appraiser cel"~flled thai If this appraisal included afl tlecttonic/digital $igrlature it is mainlaine(l an(l conlrolled by the appraiser completing the report. GC jE~r~. N/A F~eNo. 30120321 A~k~ress: 7609 Bass I.~ke Road Case No.: Moo ~ Ci~. New Ho~ ~: MN Z~: 5~8 L~r C~y of N~ Hoyden Domsky ,..._ ~ ~,.~,~ ~.~._ ~ ' ~ SU~ECT PROPER~ / ~ ~ ; , ' ,. -_ .: _~ , . _-,.. .................. .... .~ .........~ --~.~ ,~ ~ ~. .,: ..... REAR VIEW OF SUBJECT PROPERTY STREET$CE#E ~. N/A F~e NC. 30120321 ~Mress: 7609 Bass Lake Roa(I Case No.: ~ C~ N,~H~ '~: MN ;;: 5~28 L~ C~y of New Hoyden Do~s~y COMPA~BLE SALE ~ 5~9 Penny.ama Avenu~ New Ho~ ., - .~- COMPARABLE SALE 13 _ ~, .....~,~ ~"'-': .. ..' '~,.... 6008 Winnetka Avenue N. ~ New Hope I ~ '*''~ ~ .~5',0 ,5,7 ! i 5-~.~ '!.., , :. ~ ....... ~' · ~--~ .... ~-.~-~ ...... ~ r ....... ~ ....... ~ ~:~'-~-~" ~ ! I ; ' : ~ , --' ' F -- ' City-Owned Prope~es (2-2-04) ~ ~ / / 5~ [~;: ~ ~~ ' ~ 1. 5340 Winnetka Ave. N. ;; ~ ~ ...... ~ ~ .... f ....... ~ 3.2' 54065400 WinnetkaWinnetka Ave.AVe' N.N' ~ ~ 4. ~0/~2 ~mnetka ~ve. N - 5. ~20 Winnetka Ave. N. ~ ~ ----- I 7 ...... ~ ..... ~ 6. ~22 Winnetka Ave. N. .- .... $. 550~ Winnetka ~ve. N ~0. S524 Winnetka ~ve. N ~ : ~ ~ _., , . ~ 12. 5550 Winnetka Ave. N. ', ~ ~ ~ ~ · ~ .... .:' ~ .... · i" : ~ : ~ ; : '- , : ~ ........ 13. 5520 Sumter Ave. N. . ~ ~ ~ : r , : , ......... , ,. ~ ~ : , ; . 14. 5530 Sumter Ave. N. ·. / ~ s ~ ¢.. ~ -- ~ 15.5~6 Sumter Ave. N. % / ~ ~ .. : .' - .. , ~....., ..... ._.. ~ ¢ - .~,.. ~ : . 16. 5559 Sumter Ave. N. ;, ~......;. -.. ~ ~- r ~ / ~ , 17. 7601Bass Lake Road Ext. ~ ..... ~ '% O-~;'./~ / ~-- ;' ~ . ~ 18.7603 Bass Lake Road Ext, ~~2'' ~' _ 'V~ / / ~';f '~7'' ? 19.7605Bass Lake Roa~ , ' , ""~", -----' 20. 7621 Bass Lake Road Ext. Property Information Search by Street Address Result page Page 1 of 2 · Hennepin County, MN S~:h r,~sJ Property Information Search Result daily (Monday - Friday9 at approximately 9: ] 5 p.m. [CSTJ Search t~y: Parcel Data for Taxea Payable 2003 Click Here for State Copy of Payable 2003 Tax Statement Propel'L'y JD. -'7-7t v,ew Ma= J 'Taxes Due J Pay.men, O=t,on$ j ~ Property ID: 05-118-21-33-0089 Address ~"~~ Address: 7609 BASS LAKE RD Addition Name ~ Municipality: NEW HOPE School Dist: 281 Construction year: 1951 HOUSE or BUILDING #: Watershed: 0 Parcel Size: 75 X 20 17609 Sewer Dist: 02 STREET NAME: OWner Name: C M MOO & A P MOO (at least first 3 characters) I~ass Lake Road Taxpayer Name CASEY M MOO & AMY P MOO Io & Address: 7609 BASS LAKE RD UNIT # (if applicable) NEW HOPE MN 55428 I Most Current Sales Information Sales prices are reported as listed on the Certificate of Real Estate Value an ~ ~ warranted to represent arms-length transactions. Sale Date: July, 1999 2['2~ .~ records per page Sale Price: $105,000 Transaction Type: Warranty Deed Tax Parcel Description Addition Name: REG. LAND SURVEY NO. 0848 Lot: Block: Metes & Bounds: TRACTS C AND D Abstract or Torrens: TORRENS Value and Tax Summary for Taxes Payable 2003 Values Established by Assessor as of January 2, 200; Estimated Market Value: $121,000 Limited Market Value: $101,000 Taxable Market Value: $101,000 Total Improvement Amount: Total Net Tax: $1,291.79 http://www2.co.hennepin.mn, us/pins/addrresultjsp 12/24/03 Property Information Search by Street Address Result page:~-~, _ :. ~ ~::, :..- Page 2.of2 Total Special Assessments: Solid Waste Fee: $19.17 Total Tax: $1,310.96 Taxes P.,e j Property Information Detail for Taxes Payable 2003 Values Established by Assessor as of January 2, 200; Values: Land Market $42,000 Building Market $79,000 Machinery Market .... ~" Total Market: $121,000 Land Limited $35,100 Building Limited $65,900 Total Limited: $101,000 Qualifying Improvements Classifications: Property Type RESIDENTIAL Homestead Status HOMESTEAD Relative Homestead Agricultural Exempt Status 9O47 Hennepin County is providing this information as a public service. Have a tax related question? Send e-mail to taxinfo@co.hennepin.mn.us Experience a problem searching database, have a technical question or wish to c, Hennepin County Tax web site? Send e-mail to webinfo@co.hennepin.mn.us Have a comment on any of Hennepin County's web sites or E-Commerce applica~ e-mail to Henn. Net@co.hennepin.mn.us Home Servtces Taxpayer Serwce$, Assessor's DeFt Copyright © 1998 - 2001 Heflnepifl County http://www2.co.hennepin.nm.us/pins/addrresultjsp 12/24/03 EDA I RE(}UEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development 2-9-04 EDA Item No. By: Kirk McDonald, Director of CD & Ken Doresky, CD Specialist By: RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS 7643 BASS LAKE ROAD (IMPROVEMENT PROJECT FILE 757) REQUESTED ACTION Staff recommends EDA approval of a resolution prepared by the city attorney approving the purchase of the property located at 7609 Bass Lake Road for it's appraised value of $180,000 and relocation estimate of $2,167.27 (moving costs only- see attached bid). Furthermore, the owner is requesting an additional $10,000 ($190,000 total), due to the fact that she will not be utilizing the $34,900 differential payment and estimated $2,000 - 4,000 closing costs (new property). She plans to rent and will not be buying a new property. Finally, she is requesting that the city waive closing costs that are estimated at $1,500 (State deed tax, commitment for title insurance and well abandonment). Due to the potential overall savings of roughly $24,500, staff recommends approval of the purchase agreement. Please see the attached city attorney correspondence regarding this request. 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 property in areas designated for redevelopment in the Comprehensive Plan. BACKGROUND At the November 3, 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 December I 22, staff, the city attorney and Evergreen Land Services met with the property owner to discuss the acquisition process. The appraisal and relocation estimate have been completed and are attached. Aisc, the moving bid is attached. Staff recommends approval of the attached 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 holdin~l costs. Durin~l the 2003 State Legislative,Session, MOTION BY ~ SECOND BY I:\RFA\PLANNING\HoUsin~\7643\Q - 7643 Bass Lake Road Purchase A~lreement.doc , , Request for Action Page 2 . 2-9-04 the city's TIF special legislation was passed. In December 2003, the district was approved by the City Council. ATTACHMENTS · Resolution · Purchase Agreement · City Attorney Correspondence, 2-3-04 & 2-5-04 · Moving Bid · Appraisal · Location Map/City Ownership Map · Hennepin County Parcel Data Provided in past Council reports relating to the east Winnetka redevelopment area: · Topographic Map · Section Map · Comprehensive Plan References- Planning District 6 EDA ITEM 6 (February 9, ~ ~' iil JENSEN & SONDRALL, P.A. Attorneys At Law 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443-1968 TELEPHONE (763) 424-8811 · TELEFnX (763) 493-5193 e-mail law~jensen-sondrall.com DOUGLAS J. DEBNER2 GO,ON L. JENSON' February 5, 2004 GLEN A. NORTON s~v~N A. So~n_~L Ken Doresky STACV A. WooDs Community Development Specialist City of New Hope -- OFCOt~S~L 4401 Xylon Avenue North t,Om~NS Q. BRV~S'rn,, New Hope, MN 55428 RE: Acquisition of 7643 Bass Lake Road/Beatrice Dolan Our File: 99.11305 Dear Ken: Attached please find for consideration at the February 9, 2004 EDA meeting a proposed Resolution Approving Purchase Agreement and Relocation Benefits (7643 Bass Lake Road). The resolution and purchase agreement incorporates our agreement with Bea Dolan as presented to us by her son Mike Dolan. Basically, our appraisal established a market value of $180.00 for her property. The relocation benefit analysis indicated the owner was also entitled to a $34,500.00 differential payment for the purchase of a replacement property. The Seller wanted the purchase price set at $190,000.00. We have agreed to do this based on the fact Mrs. Dolan will not be receiving any differential payment due to the fact she is not going to purchase a replacement property. Apparently, she is intending to move to Alexandra where her son is located and has decided to rent rather than buy a new home. Since the rental rates are cheaper in Alexandria than in the Twin Cities she will not be entitled to a rent adjustment either. Her decision will actually result in a net savings to the EDA of $24,500.00. We have also agreed to pay Mrs. Dolan% closing costs for her property at 7643 Bass Lake Road. This will include the cost to cap the well on the property, all recording fees, the state deed tax and the cost for the commitment for title insurance. Mrs. Dolan will pay her pro rata share of 2004 real estate taxes. Please contact me if you have any further questions concerning the purchase agreement or this resolution. Velours, Steven A. Sondrall, City Attorney, JENSEN & SONDRALL, P.A. 'Real Property Law Enclosure(s) Specialist Certified By 'the Minn~sm Sm,o CC: Kirk McDonald Bar Associatiou ~Admitted in Iowa Valerie Leone P:\Auorney'~AS\2 Cily of New Ho~e~,9~-I l~b'~llr K. Doresky re ~ approving PA.doc CITY OF NEW HOPE EDA RESOLUTION NO. 04 - RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS 7643 Bass Lake Road 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 Beatrice Dolan ("Owners"), Owners of certain real estate known as 7643 Bass Lake Road (the "Property"); and WHEREAS, appraisers hired by the New Hope EDA valued the Property at $180,000.00 as of December 5, 2003; and WHEREAS, the Owners are willing to sell the Property to the New Hope EDA for the sum of $190,000.00 as set forth in the Purchase Agreement attached hereto as Exhibit A and incorporated herein by reference; and WHEREAS, the New Hope EDA herby approves the Purchase Agreement with the understanding relocation assistance benefits will be paid to the Owners as required by both State and Federal law; 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 for the Owners herein and has determined the estimated maximum "differential" benefit payable to Owners is $34,500.00 for a replacement property (analysis attached as Exhibit B) based on a $180,000.00 acquisition price of the subject property; and WHEREAS, Owners have acknowledged and agree the "differential payment" will be reduced to $24,500.00 due to the $10,000.00 increase to the acquisition cost of the subject property. Owners further acknowledge and agree the final and actual cost for the relocation benefits payable to the Owners will be determined when the final and actual purchase price, closing costs and moving expenses in connection with their replacement property are determined by Evergreen Land Services Company; and WHEREAS, it is in the best interest of the New Hope EDA to purchase the Property from the Owners for the sum of $190,000.00, with other terms and conditions as set forth in the Purchase Agreement and to pay the required relocation benefits. 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 Beatrice Dolan for the sum of $190,000.00, with other terms and conditions as set forth in the Purchase Agreement attached hereto as Exhibit A, is approved. 3. The adjusted maximum "differential" benefit payable to the Owners, based on the $190,000.00 acquisition price, estimated to be $24,500.00 is hereby approved. The final amount shall be established by Evergreen Land Services Company after the actual purchase price, moving expenses and closing costs for the Owners replacement property are determined by Evergreen Land Services. 4. The President, Executive Director and New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional actions are necessary or desirable, to complete the purchase of the Property in accordance with said Purchase Agreement and the relocation benefits analysis. Dated the 9t~ day of February, 2004. W. Peter Enck, President Attest: Daniel J. Donahue, Executive Director P:~Attorney\Cnh Resolutions\99.11305-001--Reso Approv PA-7643 BLR.doc Miller/Davis Co.. SL Paul, MN..-R~m~ 1300 (1994; Rev. 1996; Rev. 1997: Rev. 2002] p~'~~ Minnesota Standard Residential Purchase Agreemem MINNESOTA STANDARD RESIDENTIAL PURCHASE AGREE © Copyright 1996, 1997, 2002 by MinnesOta Stats Bar AsSo~atlon. Minneapolis. Minnesota BEFORE YOU USE OR SIGN THIS CONTRACT, YOU SHOULD CONSULT WITH A LAWYER TO DETERMINE THAT THIS CONTRACT ADEQUATELY PROTECTS YOUR LEGAL RIGHTS. Minnesota State Bar AssOCiation disclaims any liabifity arising out of the use of this form, 1 1. PARTIES. This Purchase Agreement is made on _ l:ehru~'). ,3004 , by and be~veen 2 Re.trice Dotan Jrneritai status] ~ 3 of/se/lel"s addrassJ 7643 P, ams I.~ke Road. Ne',',' Ho.~. ,kt`mne~ot3 ~;~,42§ . SELLEP~ 5XIi~JM~:~ilal]I~IDf [buyer's ad,rossi 4401 Xylon Avenue North New Hope. Nhnnesol;~J28 BUYER 7 2. OFFER/ACCEPTANCE. Buyer offers to purchase and Seller agrees to sell real property legally eescnDed as __ 8 SEE ~CHEDULF~'~'~HED I~RETO 11 [property Tax {denlification Number or Tax Parcel Number _05-118-21-]3-0033 __._ ] 12 13 located at '7043 l~qq L:~ke Road , City of ]~ew Hope __ . 14 County of Hennepln . , State of Minnesota. Zip Code 15 16 3. ACCEPTANCE DEADLINE. The acceptance date of this Purchase Agreement i$ the date il is delivered by the last party sl0n~ng to tl~e ot~er lZ party. This offer to purchase, unless acce~tad sooner, shall De void at 11 :sg A.M., on [date] __ ~.- - ~s and in such event all earnest money shall be refundecl to Buyer. 20 4. PERSONAL PROPERTY AND FIXTURES INCLUDED IN SALE. The following items of personal property an~ fixtures owned by Seller 21 and currently located on the real property are included in this sate [Slhke out items not ~nclu~ed]: garden bulge, plants, shrubs, trees, storm 22 windows and inserts, stom~ cleero, screens, awnings, window shades, blinds, c~rtain-traverse-drapery rods att~cried hght~ng fixtures w~th 23 bulbs, plumbing fixtures, sump pumps, water heat. ers, heating systems, heating stoves, fireplace inserts, fireplace doors and screens, 2,~ humidifiers, built-in air conditioning units, built-in electronic air filters, automa~c garage door openers wit~ controls, teiewsion antennas. 25 water softeners, built-in dishwashers, gart;age disposals, built-in trash compactors, built-in ovens and cooking stoves, hood-fans, intercoms 26 installed carpeting, work benches, security systems, and also the following property: 27 ..... 28 29 Upon delivery of the Deed, Seller shall also deliver a Warranty Bill of Sale for the above personal property. [Check the t~ex if the 30 provision applies re rhis Purchase Ag~eemenl:] [] Seller shell use M.S.B.A. Real Property Focm N~. 90 (1997), Warranty Bill Of Sale. 31 32 5. PRICE AND TERMS. The price for the real and personal property included in this sale is 33 One Hundred Nine .W._~LJ~u~aJ"~d and 00/100 Dollars 34 Dollars ($ 190.00~ 00 ), which Buyer shall pay as foltows: 35 36 Earnest money of $ 0.,r)0 by ~ ]~.J~,K, ~'E . state which] payable to 37 [select ol~e;] 38 [] Seller, to be deposited and held by Seller (and may be commingled with Seller's other f~nds) pending closing, 39~ Seller's lawyer, to be deposited and held in the lawyer's trust account pending dosing, 4o Seller's broker, to be deposited or held by broker according to the raquirementa of Minnesota Statutes, 4 ~ Other [describe how the earnest money will be held] 42 43 receipt of which is hereby acknowledged and $ I g0:000 00 cash, on 2004~'--- , the DATE OF CLOSING, and 44 the balance of $ 000 by financing as shown on the attached Financing Addendum 45 46 6. DEED/MARKETABLE TITLE. Upon berfon~ance by Buyer, Seller shall execute and deJiver a Warranty Deed. ioined 47 in by spouse, if any, conveying marketable title of record, subject to: 48 A. Building and zoning laws, ordinances, state and federal regulations; 49 B, Resthctlons relating to use or improvement of the mai property without effective forfeiture provisions; 5O C. Rseervatlon of any mineral rights by the State of Minnesota; 51 D. Utility and drainage easements which do not thtedere with existing improvements; 52 E. Exceptions to title which constitute encumbrances, resthctions, or easements which have been disclosed to Buyer and accepted by Buyer 53 in this Purchase Agreement [must be specified in writing]: 54 7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Real estate taxes due and payable in and for the year of closing shall be pro- 55 rated between Seller and Buyer on a calendar year basis to the actual Date of Closing, unless otherwise provided in this Purchase Agreement. 56 If tax statements for such taxes are not available on the Date of Closing, the amount to be prorated shall be __ % of the prior year's taxes, 57 and such estimated proration shall be [strike one/ FULL AND FINAL BETWEEN SELLER AND BUYER / 58 ~~:J~J~;J~J~~~ (in which case the parly entitled to a credit as a result of the adjustment shall receive 59 the amount of such credit from the other party within 30 days of issuance of the tax statements). Setter represents the ~axes due 'and payable in the 60 year(s) will be FULL, J~T, ~ -homestead classification, unless Buyer changes the tax classification for taxes 61 payable in the year following closing by taking possession of the real property as Buyer's homestead and filing a new homestead declaration within 62 the time required by law. If the taxes due arid payable in the year of closing are PART or NON-homestead classification, Seller shall pay to Buyer 63 at closing $ , in addition to Seller's prorated share of the taxes. If the taxes due and payable in the year 64 following closing are PART or NON-homestead classification and the closing takes place after the date by which Buyer must take possession 65 of the real proberty as Buyer's homestead to file for homestead tax stalus for taxes due and payable in such year, Seller shall pay to Buyer at 66 closing $ as Seller's share of such taxes. 67 68 [Sbike one:] ~~~J~~J(~J~JJ~I~XG / SELLER SHALL PAY ON DATE OF CLOSING 69 all installments of special assessments certified for payment with the real estate taxes due and payable in the year of closing. 70 [Strike one:] I~Y~~ / SELLER SHALL PAY ON DATE OF CLOSING all Other sbecial assessments levied as 01:/he 71 date of this Purchase Agreement. 72 [Strike one:] I~1~~ / SELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as of the dale of 73 this Purchase Agreement for improvements that have been ordered by the City Council or other governmental assessing authorities. ISeller's 7~, 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 75 Purchase Agreement, Seller represents that Seller has not received s NotiCe or` Hearing of s new public improvement pro,ecl from any 76 governmental assessing authority, the costs of which project may ~ assessed against the real property. If a special assessment becomes 77 pending after the date of this Purchase Agreemem and before the Date of Closing, Buyer may, at Buyer's option: 78 A. Assume payment of the pending special assessment without adjustment to the purchase price of the real property; or, 79 B. Re¢luire Seller to pay the pending special assessment (or escrow for payment of same as provided above) and Buyer shall pay a commen- 8o surate increase in the purchase price of the real properly, which increase shall be the same as the estimated amount of the assessment; B~ C. or Declare this Purchase Agreement void by notice to Seller. and earnest money shall be refunded to Buyer. Miller/Davis Co.. SL Paul, MN-Form 1300 (1994; Rev. 1996; Rev. 1997; Rev. 2002) M.S.B.A. Real Prooert¥ Form No. 1 Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT / PAGE 2 82 [Strike one:] ~~}~}{~ / SELLER SHALL PAY ON DATE OF CLOSING any deferreO rea~ estate taxes (in~udmg "Green 83 Acres' taxes under Minn. Stat. 273.111) or speCml assessments payment of which is reciuired as a result of the closing of this sale. s4 Buyer shall pay real estate taxes due and payable in the year folloWang closing and thereafter and any unpaid special assessments payable 85 therewith and thereafter, the payment of which ~s not otherwise provided herein. Seller makes no representation concerning the amount of tuture 86 real estate taxes or of future special assessments. 87 88 8. DAMAGES TO REAL PROPERTY. If the real property is substantially damaged prior to ClOSing, th~s Purchase Agreement sba, termlna',e 89 and the earnest money shall be refunded to Buyer. If the real Droperty is 0amaged materially Put less than substantially Drier to 90 Buyer may rescind this Purchase Agreement by notice to Seller within 21 days after Seller notihes Buyer of such damage, durm?t 91 21-day oeriod Buyer may inspect the real property, and in the event cf such rescission, the earnest money shall be retuncle~ to Buyer 92 93 go SELLER'S BOUNDARY LINE, ACCESS, RESTRICTIONS AND LIEN WARRANTIES. Seller warrants that ouflO,ngs *f an~,, are enttrew w~lnm me 94 boundary lines of tile ~eal property. Seller warrants that t~ere is a right Of access to ttle rea~ pm~erty from a public ng~t of wa~ Se,er wan-ants Inat t;~ere has 0den no ieee' 95 or material tumisbeO to the real property for which payment has not laden made, Seller warrants that there are nc present v:otat~ons et any restnct~ons relatm~ ~o the vse c,- 96 improvement of the real pmpel~y. These waecant~s shall survive tiaa delivery Of tile Deed or Contract for DeeE 97 98 10. CONDITION OF PROPERTY. 99 tOO A. Seller warrants that alt appliances, fixtures, heating and air conditioning equipment, fireplaces 0ncluding mechanisms, dampers, flues, anc 101 doors), widng, and plumbing used and located on the real property will be in working order on the Date of Closing. Seller shall remove all 102 debris, and all personal property not included in this sale from the real property before possession date. Seller has no knowledge of an~ 103 Dutch elm disease, oak wilt. or other disease of any trees on the real property. 104 105 B. Seller knows of no hazardous substances or petroleum products having been placed, stored, or released from or on the real property by an) 106 person in violation of any law, nor of any underground storage tanks having been located On the real property at any hme, except as follows 107 108 109 110 111 112 C. Seller's warranties and representations contained in this paragraph 10 shall survive the delivery of the Deed or Contract for Deed Any action 113 based upon these warranties and representations must be commenced within two years after the date on which the buyer closed on the 114 purchase of the real property. 115 ~16 D. Buyer shall have the right to have inspections of the properly conducted pdor to closing. Unless recruited by local ordinance or lending t 17regulations. Seller does not plan to have the properly respected. 118 119 E. Statutory Disclosure. Pursuant to Minnesota Statutes sections 513.52 - 513.60 (effective January 1. 2003). Seller must provide a wntten 120 disclosure [see (1) below], or Buyer must have received an inspection report [see (2) below], or Buyer and Seller may waive the written 121 disclosure requirements [see (3) below]. 122 123 Minnesota Statutes Section 513.57, Subd. 2. LIABILITY.A seller who fails to make a disclosure as required by sect:one 513.52 to 513 60 and ~,as a~arc 124 the condition of the mai property is liable to thc prospective buyer. A person tnjured by a violation of this section ma.,,, bring a civil act:on and rec~vc~ 125 damages and receive other equitable relief as determined by the courL An action under this subdivision must be commenced v, qthm two years alter tl~e date 126 on which the prospective buyer closed the purchase or tTansfer of the rest property. 127 128 S~lect only one of these three:] 129 L..] (1) Seller's Disclosure. Seller has provided a written disclosure to Buyer. A copy of Seller's disclosure is attached. Seller shall correct in 130 writing any inaccuracies in the disclosure as soon as reasonably possible before closing. 131 132 Minnesota Statutes Section 513.55. GENERAL DISCLOSURE REQUIREMENTS. 133 Subdivision 1. CONTENTS. 134 (a) Before signing an agreement to sell or transfer residential real properS, the seller shall make a written disclosure to the prospecnve buyer The 135 disclosure must include all material facts pertaining to adverse physical conditions in the property of which the seller ~s aware that could adversely and 136 significantly affect: 137 (1) an ordinary buyer's use and enjoyment of the property; or, 138 (2) any intended usc of the property of which the seller is aware. 139 (b) Thc disclosure must be made in good faith and based upon the best of the seller's knowledga at the time of the d~sclosure 140 141 M innesots Statutes Section 513.58. AM ENDM ENT TO DISCLOSURE. 142 Subdivision I. NOTICE. A seller must notify the prospective buyer in writing as soon as reasonably posstb e, but in an', event betbre closing, if the selle[ 143 learns that the seller's disclosure rcquired by section 513.55 was inaccurate, ' 144 Subtly/sion 2. FA/LURE TO NOTIFY; LIABILITY. A seller who fails to notify the prospective buyer of any amendments to the imtial disclosure required 145 under subdivision I is liable to the prospective buyer as provided in section 513.57. 146 147 [] (2) Inspection Report. Buyer has received an inspection repot1 by a qualified third-party. If a copy of the inspection report is provided [o 148 Seller. Seller shall disclose to Buyer matedal facts known to Seller that contradict any information in the inspection report. 149 150 Minnesota Statutes Section 513.56 Subd. 3. INSPECTIONS. 151 (a) Except as provided in paragraph (b), a seller is not required to disclose information relating to the physical condition of the rea] property, if a written 152 rel~rt that discloses the information has been prepared by a qualified third party and provided to the prospective buyer, For purposes of this paragraph. 153 "qualified third party" means a federal, state, or local governmental agency, or any person whom the seller, or prospective buyer, reasonably behaves has 154 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 m 155 order to prepa~ the wnttan report. . 15~ (la) A seller shall disclose to the prospective buyer material facts known by the seller that contradict any information included in a written report under 157 paragraph (a) ifa copy of the report is provided to the seller. 158 [] (3) Waiver of Disclosure. 159 160 161 Minnesota Statutes Section 513.60. WAIVER. The written disclosure required under sections 513.52 to 513.60 may be waived if the seller and the 162 prospective buyer agree in writing. Waiver of the disclosure required under sections 513.52 to 513.60 does not waive, limit, or abridge any obligation for 163 seller disclosure created by any other law. 164 165 Seller and Buyer waive the written disclosure required under sections 513.52 to 51 3.60. 166 167 ~s$ SELLER: BUYER: re9 Beatrice Dolan 170 W. Peter Enck, President, New Hope EDA 171 172 SELLER; BUYER: 173 Daniel J. Donahue, Executive Director, New Hope EDA Miller/Davis Co., SL Paul, MN-Form 1300 (1994; Rev. 1996; Rev. 19~7; Rev. 2002) M.S.B.A. Real Proper~v Form Ne Minnesota Standard Residential Purchaee Agreement PURCHASE AGREEMENT / PAGE 3 174 Other than the warranties and representations made in this paragraph 10, ~ property is being sold "AS IS" W~th no express or [mpl~ec 175 representations or wan'anfias by Seller as to physical conditions, quality of construction, workmanship, or fitness for any Daracutar puq~ose. (Th~s 176 paragraph is not intended to waive or limit any provisions of Minn. Stat,, Chapter 327A.) 177 178 11. DISCLOSURE OF NOTICES. Seller has not received any notice fi.om any governmental authonty as to violation of any lay,. ordinance or 179 regulation affecting the real property. If the real property is sub)ect to restoctive covenants, Selter has not received any nogce from any person as 180 to a breach of the covenants. Seller has not received any notice from any governmental authonty concerning any eminent domain, conoemnat~c~ 181 special taxing district, or rezoning proceedings. t82 183 12. TRUTH-IN-HOUSING, Buyer acknowledges receipt of the Truth-in-Housing Disclosure Report or other inspection report if rec~u~re~ ~.~ 184 municibality in which the real property is located. 185 186 13. POSSESSION. Seller shall deliver possession of the property not later than th~ ctate c~f closing. All interest, tuel 0~!. I~quiq betrole;~m 187 gas and all charges for city water, city eewer, electiicity, and natural gas shall be prorated between tne part,es as of t~c d~c o.t. ¢[05[[~.. 188 195 197 ]{~]l~[~l/l[~Xi~i~gY~rJra~fl[galagXgXX *SEE ADDITIONAL TERMS 198 199 15. TITLE CORRECTIONS AND REMEDIES. Seller shall have 120 days from receipt of Buyer's written titte object~ons to make title marketaO~e 200 Upon receipt of Buyer's title obiections. Setier shall, within te~. (10) business ciays, notity Buyer of Seater's intention to ma~e title marketable 20~ the 120 day period. Liens or encumbrances for liquidated amounts which can be released by payment or escrow trom proceeds of closing shall no~ 202 delay the clesing. Cure of the defects by Seller shall be reasonable, diligent, and prompt. Pending correction of title, ali payments required harem 203 and the closing shall be postponed. 2o4 A. If notice is given and Seller makes title marketable, then upon presentation to Buyer and proposed lender of documentagon establishing thal 2O5 ttitie has been made marketable, and if not objected to in the same time and manner as the original title Oblectrons. the closing s~all take 0race 20e within ten (10) business days or on the scheduled closing date, whichever is ~ater. 207 B. if notice is given and Seller proceeds in good faith to make lille marketable but the 120 day pedpe expires without lille being made marketable. 208 Buyer may deClare this Purchase Agreement void by notice to Seller, neither par~'y shall be liable for damages hereunder to the other, and 209 earnest money shall be refunded to Buyer. 210 C. If Seller does not give notice of intention to make title marketable, or if notice is given but the 120 day per{oci expires without title being made 212 marketable due to Seller's failure to proceed in good faith. Buyer may seek, as permitted by taw, one or more of the follow~ng: 2.13 1. Proceed to closing withcut waiver or merger in the Deed of the objections to title an0 without wmver of any rer,nedles, and may: 214 la) Seek damages, costs, and reasonable lawyer's fees from Seller as permitted by law {damages under th~s subparagraph la) shall be 2~5 limited to the cost of curing objections to title, and consequential damages are excluded); or 216 {b) Undertake proceedings to correct the objections to title; 217 2. Rescission of this Purchase Agreement by notico as provided herein, in which case the Purchase Agreement sfiall be null and void and earnest money paid shall be rafunded to Buyer;, 21 s 3. Damages from Seller together with costs and reasonable lawyer's fees, as permitted by law; 219 4. Specific performance within six months after such fight of action adses. 220 D. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect eiti~er of 221 222 the following options, as permitted by law: 223 1. Callcel this ~ofltract as provided by statute arid retairi all payments made herourider as llClui~ated damages. The parties acknowleoge t~leir mtenllon that any note 224 given pursuarit to this contract Is a ~$owri paymerlt note, arid may be presented for payment notwiths[anding cancellation, 2. Seek sPeCific derformai3ce wil~n slx months after s~cfll t~ht of acflo~ anses, including costa arid i'easonable lawyer's tees, as permitted by law 225 E. ~fti~eismarketab~e~rismadema~ketabieespr~videdherein~andSe~erdefau~tsinany~ftheag~eementsherein~Buyerm~y`asDerm~ttedbytaw 226 227 1. Seek damages trom Seller including costs and reasonable lawyer's fees; 228 2. Seek specific performance within six months after such fight of action arises. 229 16. NOTICES. All notices required herein shall be in writing and delivered personally or mailed to the address as shown at Paragraph I above and, 23o if mailed, are effective as of the date of mailing. 231 232 17. SUBDIVISION OF LAND. If this sale constitutes or requires a subdivision of land owned by Setter, Seller shall pay ali subdivision expenses and 233 obtain all necessary governmental approvals. Seller warrants that the legal description of the reel property to be conveyed has been or will be 234 approved for recording as of the Date of Closing, 235 236 18. MINNESOTA LAW. This contract shall be govemed by the laws of the State of Minnesota. 237 238 19, WELL DISCLOSURE. [Check one of the following.'] 239 Seller oerlifies that Seller does not know of any wells on the real property. 240 ~ Wells on the real property are disclosed by Seller on the attached Well Disclosure form 241 242 20. SEWAGE TREATMENT SYSTEM DISCLOSURE. 243 [ChecJ~ either A or 244 5~_ A. Seller certifies that sewage generated at the property goes to a facility permitted by the Minnesota Pollution Contrel Agency (for 245 example, a city or municipal sewar system). 246 __ B. Seller certifies that sewage generated at the property does not go to a facility permitted by the Minnesota Pbllutlen Control Agency 247 and Seller's Disclosure of Individual Sewage Treatment System is attached (attach form), 248 [Check either C or 249 C. Seller does not know if there is an abandoned individual sewage treatment system on the property. 25o __ D. Seller knows that them {st~ke one:] are / are no abandoned individual sewage ~'eatment systems on the property If Seller 251 disCloses the existence of an abandoned individual sewage treatment system on the property, then Minnesota law requires that the 252 location of the system be disclosed to Buyer with a map. [Attach Seller's Disclosure o! Individual Sewage Treatment $ysrem with map 253 cofnl~lered.] 254 :21. LEAD PAINT DISCLOSURE. ]Check one of the fo/lowing:] 255 Seller represents that the dwelling was constructed on the real property in 1978 or later. 256 ~ Seller represents that the dwelling was constructed on the real property before 1978. (if such housing is located on the real prep- erty. 257 258 attached and made a part of this Purchase Agreement is 'LEAD PAINT ADDENDUM FOR HOUSING CONSTRUCTED BEFORE 1978' ) 259 2.2. WETLANDS, SNORELAND, AND FLOOD PLAIN CONCERNS. Currently the law does not require Seller to disclose Seller's knowledge, if 260 any, of the existence of wetlands, sho~elend, or flood plain on or affecting the real property. If Buyer has not already investigated these 261 concerns. Buyer might want to include Seller's disclosures regarding these concama. [Check ttle box if the follov~ng ~row$ion r-~ ADDEND M al3plie$ to thi~ Purchase Agreement:] II U 262 TO PURCHASE AGREEMENT: WETLANDS, SNORELAND AND FLOOD PLAIN DISCLOSURE, M.S.B.A. Real Property Form No. 8 (1997), is 263 inclucled as an addendum to this Purchase Agreement. 264 265 23. SELLER*S AFFIDAVIT. At closing, Seller shall suppisment the warranties and representations in this Purchase Agreement by executing and 286 petivedng a Minnesota Uniform Conveyancing Blank [Form No. 116-M, 117-M. or 118-M] Affidavit of Seller. 267 Miller/Davis Co., SL Paul, MN-Form 1300 (1994; Rev. 1996; Rev. 1997; Rev. 2002) M.S.B.A. Reap Property Form Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT ! PAGE 4 268 24. CLOSING. Closing shall be at the office of Seller's lawyer, Buyer's title insurer, or at some other mutually agreeable Iocauon. 269 270 [State other location:] New Bope City Ha[l_ 440l ×.','ion Avenue North_ New Hope Minuends. 271 At c~osing, Seller and Buyer shall disclose their Social Secudty Numbers or Federal Tax 10entificat~on Numbers for the purposes ot comp~etm~ 272 state and federal tax forms. 273 274 25, ADDITIONALTERMS:*I4. EXAMINATION OF TITLE. Buyer ~hall obtain at B~Lver's expense_ ~ommitlllCn[ for ail 275 Owner's Policy of Title Insurance on a current ALTA form i~sued by an insurer liq~la~:d to ~.~,TJiP._H~ 276 Buyer shall be responsible for payment of those cost~ necessary to prepare such CommirmenLmcJuding bu. Lnot limited 277 absmacting fees_ name search fees: sewice charges_ etc Buyer shall pa)' the prernmm for the O;~llef's Poli¢.~ of Title 278 Buyer shall have ten (10) business days al[er receipt of the Commitment for Title Insurance to pro~d2~Seller 279 Commitment and wrinen ob. iections Buyer shall be deemed m have waived an), title oh.tcc[mnanoLmad~x~dlin tbc~te..a_~ 101 aa> 280 period above, except that this shall not operate a~ a waiver of Seller's covenant to d¢tiver a~tattaoO~kS~t-ran~_k_D¢¢& 281 WarranW Deed is not specified above. If Buyer obtain; title insurance Buyer is nqLxvaivin~' dle.__rigllt ta_obtam~agood 282 marketable title of record kom Seller 283 284 CLOSING COSTS. Costs to be paid by Buyer ~hall also include the Minnesota_Sla~¢¢d Tax andall recording fe¢~. if any. 285 to record marketable title in the name of Buyer. Buyer shall also pay alt costs to seal the well_ ifaa)~ 286 287 26. ADDENDA. Attached are 3 addenda which are made a pas of th~s Purchase Agreement 288 289 27. TIME IS OF THE ESSENCE. Time is of the essence for all provisions of this Purchase Agreement, 290 291 28. MULTIPLE ORIGINALS. Seller and Buyer have signed [number] 3 origrnals of thrs Purct~ase Agreement. 292 293 294 295 296 297 THIS IS A LEGALLY BINDING CONTRACT. BEFORE SIGNING CONSULT A LAVVYER. Minnesota aw permits licensed real estate 298 brokers and sales agents to prapars purchase agreements, No recommendation or reprssentat on may be made by any real estate 300299 your broker lawyer, or sales agent as to the legal sufficiency, the legal effect, or the tax consequences of this contract. These are questions for [ I agree to sell the property for the pdce and terms and conditions I agree to purchase the property for the puce and terms and set forth above, conditions set forth above. SELLER; BUYER: Beatrice Dolan (date) W. Peter Enck, President Idatei SSN: New Hope EDA SELI.~R: BUYER: (date) Daniel J. Donahue. Executive Director (date) New Hope EDA This Purchase Agreement was prepared by: Jensen & Sondrall, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, Minnesota 55443 Telephone: (763) 424-8811 Facsimile: (763)493-5193 Others who will assist Seller or BuFer with this transaction: Lawyer For Buyer Telephone: Facsimile: Steven A. Sondrall (763) 424-8811 (763) 49%5193 Jensen & Sondrall, P.A. 8525 Edinbrook Crossing Suite 201 Brooklyn Park, MN 55443 (763) 424-8811 103391 L~q;.9 Agent and Broker for this transaction am: Telephone: Facsimile: N/A Selling Agent and Broker for this ~,.&&c:;u. are: Telephone: Facsimile: N/A Miller/Davis Co., SL Paul. MN-Form 1300 (1994; Rev. 1996: Rev. 1997: Rev. 2002) M.S.B.A. Real Prol)ert¥ Form No. M~nnesota Standard Residential Purcflase Agreement PURCHASE AGREEMENT ! PAGE Buyer's or Lender'$ T'~e Insurec Telephone: Facsimile: Old Republic National Title Insurance Company (612) 371-1111 dO0 Second Avenue South Minneapolis, Minnesota 55401 Schedule "A" Legal Description That part of Lot 39, Auditor's Subdivision Number 226, Hennepm Count).-, Mnmesota. described as follows: Commencing at a point 410 feet East of the Northwest corner thereof, thence East along the North line a distance of 90 feet: thence South paratlc! with the West line of said lot, a distance of 235.2 feet; thence West parallel with North line of said lot a distance of 90 tee:. thence North parallel with the West line of said lot 235.2 feet to the point of beginning. Files of Registrar of Titles. Countx ~,! Hennepm, State of Mumesota. Mdter/'Daws CO. ~ St Paul. MN 651-642 ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT AND L~D-BASED PAINT H~RDS This f~ approved by ~ Min~ ~a~ of R~LTORS~, ~i~ dis~a~ms any ans~ng ~t of use or misuse of ~is ~ 2000. Minnesota Ass~at~on of REALTOR~, Eaton, MN Date Page Addendum to ~chase A~eement beaten pa~es ~ted__ 200~ ..... per[a~mng to ~e purchase sale of~e prope~ at ~Bass l~ake Road. New Hope~Minne~ 55428. Section 1: Lead Warning Statement Eve~ purchaser of any inter~t in residen~al real prope~ on which a r~idential dwelling was buih prmr to 19'& is notlEed ti~,~: such proper~ may pr~ent ~posure to lead pom lead-b~ed paint that may place young chiMren ar risk ~' developing ica,/ po~omng. Lead po~oning in young children may produce pe~anent n~rological damage, including learning daabilmc.~. reduced intelligence quotient, behavioral probte~, and impaired memoo'. Lead po~oning also poses a particular risk re pregnant women. The seller of any interest in residential real prope~, is required to provtde the bRver with any tqlormat~on on lead-ba.~c,i paint h~ards porn risk ~sessmen~ or i~pections m the seller's possession and notl~' the bm'er qf a~v known lead. based hazards. ~ risk assessment or inspection for possible lead-based pamt hazards ~ recommended prtor to purch~c. Seller's Disclosure (initial) (a) Presence of lead-based paint ~or lead-based paint h~ (check one below): ~o~ lead-based paint and/or lead-based paint h~ards are present in the housing (explain). Seller has no ~owledge of lead-based paint an~or lead-based paint h~ards in ~e housing. (b) Recor~ ~d repo~ available to ~e seller (check one below): Seller has provided ~e p~chaser wi~ all available records and reports penaimng to lead-based paint andre lead-based paint h~ards m ~e housing (list documenm below). ~ Seller has no r~om or recor~ pem~g to lead-based paint ~or lead-based paint hoards in ~e housing. Purchaser's Acknowledgment (initial) ~ (c) P~cMser h~ received copies of all ~omation listed under (b) above, ~ (d) P~chaser h~ r~eived ~e p~phlet Protect Your Familypom Lead m Ybur Home ~ (e) Pure.set h~ (check one below): ~ Received a 10-~y oppo~iw (o~ mutually a~eed u~n period) m conduct a risk assessment or inspection for ~e presence of l~d-based paint ~or lead-based paint h~ds (If checked, see Secaon II below); or ~ Waived ~e oppom~ m conduct a risk assessment or inspection for ~e presence of lead-based paint and/or lead.ed paint h~. Re~ Estate License's Ac~owledgment (midol) (0 Real emte licensee has ~fo~ed ~e seller of~e seller's obligations under 42 U.S.C 4852(d) and is w~e of lic~see's responsibfli~ m em~e compli~ce. Certification of Accuracy ~e follow~g pmies have reviewed ~e ~fomalion above ~ ceni~', to ~e best of ~eir ~owleflge, ~at ~e infomation provided by ~e sig~m~ is me ~fl accurate. Beatrice Dolan W. Peter Enck, President, New Hope EDA Seller Date Purchaser Date Daniel J. Donahue. Executive Director. New Hope EDX Seller Date Purchaser Date Real Estate Licensee Date Real Estate Licensee Date Section Il: Contingency (Initial only if first box under Purchaser's Acknowledgment letter (e) above is checked.) This conlract 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 (I 0)/ ~ calendar days after acceptance of the Pumhase Agreement. This contingency shall be deemed removed, and the the.}~ ~l:~mant 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: (^) 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 eamast money shall be refunded to the purchaser. It is understood that the purchaser ma), 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 estate licensee assisting or acting on behalf of seller of the waiver or removal in writing within the time specified. TLX:SALE (9/00) Miller/Da`as Co. ~ St Paul, MN 651.642.1988 ~[t~"~' Form 1519WD (Re,'. 10'03~ WELL DISCLOSURE STATEMENT This form a~mv~ by ~e Mmne~ ~s~a0on of R~LTOR~. ~i~ ~s~a~ any I~abih~ arising ~t of use or m~use of ~s fo~ ~ 2003, Min~so~ ~a~on of REALTORS~. Eo~na. M~ 1. Date · 2. Page I of 3, A~ACHED HERETO AND MADE A PART HEREOF 4. Minneso~ Statutes Sec. 1031.235 requires that before signing an agreement to selt or transfer real prope~y, Selier 5. must disclose info~ation in writing to the Buyer about the status and location of all known wells on t~e prope~y. Th~s 6. requirement is satisfied by delivering to t~e Buyer either s statement by the Seller t~at t~e Seller does not know of 7. any wells on the prope~, or a disclosure statement indicting the legal description and county, and a ma~ showing 8. the lo.lion of each well. In the disclosure statement the Seller must indicate, for each wel~, whether t~e 9. use, not in use or sealed. 10. unless ~e Buyer and Seller agree to the contras, in writing, before the closing of t~e sale, a Selter who fails to 11. diSClose the existence or known status of a well at the time of sale and knew or had reason to know of the existence 12. or known status of the well, Js liable to the Buyer for costs relating to sealing of the well and reasonable a~orney fees 13. for collection of cos~ from ~e Seller, if the action is commenced within six years after the date the Buyer closed the 14. purchase of the real prope~ where the well is located. 15. Legal requirements exist relating to various aspects of location and status of wells. Buyer is advise~o contact t~e 16. I0~1 unit(s) of government, state agency, or qualified professional which regulates wells for fu~her information abou~ 17. these issues. 18. Instructions for completion of this form are on the reverse side. 19. PROPER~ DESCRI~ION 20. Street Address 7~3 B~ Lake R~ad. New Hope: Minnesota 5~ ............ H~nnepm Ci~ Ztp Count) 21. LEGAL DESCRIPTION: SEE R~HED~LE "A" AT~_~ ........... 22. 23. -- 24 25. WELL DISCLOSURE STATEMENT 26. (Check the appropriate 27. ~ The seller ceflifies ~at the Seller does not know of any wells on the above described real prope~y. 28. (If this option is checked, then skip to the last line and sign and date this statement.) 29. ~ ~e Seller ~Jfies ~at the following wells are located on the above described properly. 30. MN Unique Well Year of Well IN USE NOT IN SEALED 31. Well No. Depth Co~t. Type USE 34. Well 3 D 35. NOTE: See definition of te~s "IN USE," "NOT IN USE," and "SEALED" on lines 83-92. If a well is not in use, 36. it must be ~al~ by a licensed well contractor or a well owner must obtain a maintenance permit from the 37. Minneso~ Depa~ment of Health and pay an annual maintenance fee. Maintenance permits are not 38. tran~erable. If a well is operable and properly maintained, a maintenance permit is not required. 39. OTHE~ WELL INfOrMATION Date well water last tested for contaminants: Test results attached? Yes~ 40. No~ 41. Comments: Contaminated Well: Is there a well on or se~ing the prope~ containing contaminated water? Yes~ No~ 42. 43. S~LED WELL INFORMATION ~. For each well designated as sealed above, complete this section. 45. When was ~e well sealed? 46. Who sealed ~e well? 47. Was a Seal~ Well Repo~ filed with ~e Minnesota Depa~ment of Health? Yes~ No~ 48. MAP 49. Complete the a~ched MAP ~howing the Io~tion of each well on the real prope~. 50. This disclosure is not a wa~an~ of any kind by the Seller(s) or any Licensee(s) representing or assisting any 51. pa~/ies in ~is transa~ion, and is not a substitute for any inspections or warranties the pa~/ies may wish to obtain. 52. CE~TIRCATION BY SELLE~ ~. I ¢e~ that the info~ation provided above is accurate and complete to the beet of my knowledge. B~ce DoI~ (Seller ~ ~igna~ Repr~n~e) (Date) (Seller or D~ig~t~ Repm~n~ve) (Date) 55. BU~R'S ACKNOWLEDGMENT 5~. W. P~ Enck, ~sident, N~ Ho~ EDA D~iel L Don~ue, ExecuOve Director, New Hope EDA (Buyer) (Date) (Buyer) (Date) 57. MN-~S-1 (10103) ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER WELL DISCLOSURE STATEMENT 58. Page 2 of Pages. 59. INSTRUCTIONS FOR COMPLETING THE WELL DISCLOSURE STATEMENT 60. DEFINITION 61. A "well" means an excavation that is drilled, cored, bored, washed, driven, dug, jetted, or otherwise constructed ~f tr~e 62. excavation is intended for the location, diversion, artificial recharge, or acquisition of groundwater 63. MINNESOTA UNIQUE WELL NUMBER 64. All new wells constructed AFTER January 1, 1975 should have been assigned a Minnesota uniaue well number by 65. the person constructing the well, If the well was constructed after this date you should have the unique welt number ~n 66. your property records. If you are unable to locate your unique well number and the well was constructed AFTER 67. January 1, 1975, contact your well contractor. If no unique well number is available, please indicate the depth and 68. year of construction for each well. 69. WELL TYPE 70. Use one of the following terms to describe the well type. 71. WATER WELL: A water well is any type of well used to extract groundwater for private or public use. Examples of 72. water wells are: domestic wells, drive-point wells, dug wells, remedial wells, ancl municipal wells. 73. IRRIGATION WELL: An irrigation well is a well used to irrigate agricultural lands. These are typically large 74. diameter wells connected to a large pressure distribution system. 75. MONITORING WELL: A monitoring well is a well used to monitor groundwater contamination. The well is typically 76. used to access groundwater for the extraction of samples. 77. DEWATERING WELL: A dewatering well is a well used to lower groundwater levels to allow for construction or 78. use of underground spaces. 79. INDUSTRIAUCOMMERClAL WELL: An industrial/commercial well is a nonpotable welt used to extract 80. groundwater for any nonpotable use including groundwater thermal exchange wells (heat pumps and heat loops). 81. WELL USE STATUS 82. Indicate the use status of each well. CHECK ONLY ONE (1) BOX PER WELL. 83. IN USE: A well is "in use" if the well is operated on a dally, regular, or seasonal basis. A well in use includes a well 84. that operates for the purpose of irrigation, fire protection, or emergency pumping. 85. 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 86. sealed by a licensed well contractor. 87. SEALED: A well is "sealed" if a licensed contractor has completely filled a well by pumping grout material 88. throughout the entire bore hole after removal of any obstructions from the well. A well is "capped" if it has a metal 89. or plastic cap or cover which is threaded, bolted, or welded into the top of the well to prevent entry into the well. A 90. "capped" well is not a "sealed" well. 91. If the well has been sealed by someone other than a licensed well contractor or a licensed well sealing contractor, 92. check the well status as not in use. 93. If you have any questions, please contact the Minnesota Department of Health, Well Management Section at (651) 94. 215-0819 (metropolitan Minneapolis-St. Paul) or 1-800-383-9808 (greater Minnesota). 95. ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER Schedule "A" Legal Description That part of Lot 39, Auditor's Subdivision Number 226, Hennepm Counv,.', Minnesota, described as follows: Commencing at a point 410 feet East of the Northwest corner thereof, thence East along the North line a distance of 90 feet: thence South parallel with the West line of said lot. a distance of 235.2 feet: thence West parallel with North line of said lot a distance of 90 thence North parallel with the West line of said lot 235.2 feet to the point of begmmg, Files of Registrar of Titles, Counb Hermepin. State of Minnesota. Mitter,'Oav~s Co ~ St Paul MN ~1~2-198~ FO~ 1519SS PRIVATE SEWER SYSTEM DISCLOSURE This fo~ appmv~ Dy a~ out Ot u~ o~ ~ 2~2, Mmn~m ~abon of R~LTOR~, E~ma. M~ 1. Date 2. Page 1 of ~ Pages: THE REQUIRED MAP 3. A~ACHED HERETO AND MADE A PART HEREOF 4. Pmpe~ located at 7~3 ~ l~k~ ~oad 5. in t~e Ci~ of ___ ~ Hope _ ~un~ of ~cpin State of Mi~eso~_ 6. a~ached sheet (the "Pmpe~") SEE SC~A" A~A~T~ 7. 6. This disclosure is not a wa~n~ of any kind by ~e Seller(s) or any ~censee(s) representing or assisting any Pa~(s) m th~s 9. ~nsa~ion, and is not a substitute for any inspe~ons or wa~nties ~e Pa~(s) may wis~ to obtain. 10. BUYER(S) AND SEL~R(s) MAY WISH TO OBTAIN PROFESSIONAL ~VlCE AND/OR INSPECTIONS 11. OF THE S~ER SYS~M AND TO PRO,DE FOR APPROPRIA~ PROVISIONS IN A CONTACT BE~EEN 12. BUYER(S) AND SELLER(S) ~H RESPECT TO ANY ADVlCEIINSPECTIONIDEFECTS. 13, SELLER'S )NFORMATION: The following Seller disclosure satisfies MN. Statutes Chapter 115.55. The Seller discloses the 14. following i~fo~ation with the knowledge that even though this is not a wa~n~, prospective Buyem may rely on this info~ation 15, in deciding whether and on what te~s to pumhase ~e Pmpe~. The Seller(s) au~odzes any Agent(s) representing any pa~y(s) 16. in this transaction to provide a copy of this statement to any person or enti~ in connection with any actual or anticipated sale 17. the Pmpe~. 18. Unless ~e Buyer and Seller agree to the ~ntm~ in wdting ~fore the closing of the sale, a Seller who fails to disclose the 19. existence or kno~ s~tus of an individual sew~e ~eatment system at the time of sale. and who knew or had reason to know o~ 20. the exis~nce or ~own s~tus of ~e system, is liable to the Buyer for ~s~ relating to bnnging the system into compliance w~t~ 21. individual sewage ~eatment system roles and for reasonable a~omey fees for ~llection of ~sts from t~e Seller. An action unaer 22. ~is subdivision must be ~mmenced wi~in ~0 years after the date on which the Buyer closed the purchase of t~e real prope~) 23. where ~e system is located. 24, L~al requirements exist relating to vadous aspects of Io~tion and status of individual sewage ~ea~ent systems. Buyer 25. advised to con,ct ~e local unit(s) of government, state agency or qualified professional which regulates individual sewage 26. treatment systems for fu~her info~ation about these issues, 27. The following am mpresen~tions made by the Seller(s) to ~e e~ent of the ~ller(s) actual knowledge. This information ~s a 28. disclosure and is not intended to be par of any contract baleen the Buyer and Seller. 29. PRIVATE S~ER SYSTEM DISCLOSU~ (CHECK THE APPROPRIATE BOX.) 30. ~ The Seller cedifies that ~e Seller does not know of any pdvate sewer system on or se~ing the above aescribed rea[ 31. pmpe~. (If this option is checked, then skip to the last line and sign and date this statement.) 32. '~ The Seller cerises that the following pdvate sewer system is on or se~ing the above described real pmpe~. 33. ~PE (Check appropdate ~o~(es) and indicate IocatioE on aRached MAP) 34. ~ Septic Tank: ~ with drain field ~ with mound system ~. seepage tank ~ with open end 35. ~ Sealed System (holding ~nk) 36. ~ ~her (Descd~): 37. Is the sewer system(s) cuffenfly in use? Yes ~ No 38. NOTE: If any water use appliance, bedroom or baffimom has ~en added to the Prope~y, the system may no longer 39. comply with applicable sewage treatment laws and rules. 40. Is the sewer system(s) in ~mpliance with applicable sewage treatment system laws and ~les? Yes .... No 41. When was the s~er system ins~lled? Ins~ller Name/Phone: 42. 43. Where is ~nk Io~ted? ~. What is ~nk s~e? When was ~e ~nk last pumped?. How often is tank pumped~ 45. Where is ~ drain field lo,ted? 46. What is ~e drain field s~e? 47, Desc~be ~ ~ed to ~e system since you have owned the Prope~: 48. 49. Date wo~ pe~by whom: ~. Is s~er system entirely within Pmpe~ ~unda~ lines, including set back requirements? 51. Is the system shared? How many uni~ on system Annual fee?__~ 52. ~mmen~: 53. On this Pm~: ~. ~xi~te number ~: p~ple using ~e sewer sy~em showe~ba~s ~ken per week wash )oads ~r week 55. Dis~nce be~n well and sewer sy~em: ~. Have ~u ~iv~ any notices ~m any govem~nt agencies relating to ~e sewer sy~em? Yes.~ No M~PSSD (W02) ORIGIN~ COPY TO LIS~NG BROKER; COPIES TO SELLE~ BUYER, SELLING BROKER Form 1519SS m.,,. wo2~ PRIVATE SEWER SYSTEM DISCLOSURE ~8. Page 2 59. Are there any known defects in the sewer system? Yes __ No __ 60. If yes, please explain 62. 63. SELLER'S STATEMENT: (To be signed at ttme of listing} 64. ~ I We, Seller(s) of the Prope~'ty acknowledge the above Private Sewer System Disclosure and MAP ancl autnonze L~stln.~ Broker to ~lsc=ose ~m> 65. information to prospective Buyers. 66. (Seller) Beatrice Dola~ (Dale) (Sellerl ,:'m~ 67. BUYER'S ACKNOWLEDGMENT: (To be signed at t/me of purchase agreement) 68. I/We, the Buyer(s) of the Property acknowledge receipt of the Pdvate Sewer System Disclosure and agree that no representation 69. regarding the condition of the Private Sewer System have been made, other than those made above. LISTING BROKER AND 70. LICENSEES MAKE NO REPRESENTATIONS AND ARE NOT RESPONSIBLE FOR ANY CONDITIONS EXISTING IN THE 71. PRIVATE SEWER SYSTEM. 72. (Buyer) W. Peter Enck, President (Date) (Buyer) Daniel J. Donahue, Execunve D~rector /Date New Hope EDA New Hope EDA 73. SELLER'S ACKNOWLEDGMENT: (To be stgned at tirne of purchase agreemenO 74. AS OF THE DATE OF THE ACCEPTANCE OF THE PURCHASE AGREEMENT, i/We, the Seller(s) of the above Property, agree 75. that the condition of the private sewer system is the same as noted above, including changes indicated above which have beer~ 76. initialed and dated. 77. {Sel}er} Beau'ice Dolan (Dale) (Seller) (Dale; 78. ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER Schedule "A" Legal Description That part of Lot 39, Auditor's Subdivision Number 226, Hennepin Count?. Minnesota, described as foilo~vs: Commencing at a point 410 feet East of the Northwest corner thereof, thence East along the North line a distance of o0 feet; thence South parallel with the West line of said lot. a distance of 235.2 feet: thence ¥~'est parallel with North line ol said lot a distance of 90 feet, thence North parallel with the West line of said lot 235.2 feet to the point of beginning. File~ of Registrar of Titles, County. of Hennepin. State of Minnesota. Milier,~a~s CO. ~ St Paut. MN 651-~S42-19~ ~,O~~'' Form 1519 MAP (Re~ 7.c,4 PRIVATE SEWER SYSTEM AND/OR WELL LOCATION MAP This fo~ approv~ ~y ~e M~nneso~ ~ab~ of REALTORS~, ~i~ O~s~a~ms any liabil~ a~stRg OUt of use or m[~se Of Date Page 1 of Pages 2, Pleaseuse~espa~belowtosket~erealprope~yDemgsol~anOthelo~bonofeacn ~ SEWER SYSTEM _~ WELLontnePrope~',. (c~ec~ all that 3, In~ude approximate dis~n~s from fixed referen~ ~in~ su~ as street, b~ildl~gs a~d landmarks 4. Pro~ I~ted at: 7643 B~qs L~e Road. New Hope Minnesota 55428 5. ATTACH ADDITIONAL SHEETS AS NEEDED Seller and Buyer Initial: Selleris) .. Buyer(si 7. MN-PSSWM (7/94) ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER MLS WARNING: UNA UTHOI~.ED COPYING OF THIS FORM PRO/.IIBITED. PR/CE DIFFERENY/AL PAYMENT ANALYSIS OF COMPARABLE PROPERTIES Comity: ~ Parcel: ~IBIT Owner: BeC'ice Dolan Ad&: 7643. Bass Lske Rosd City: New Hove Comparable Sub)act Comp No. 4 Comp, No. 5 I No. 3 Map Price $180,000.00 $214,900.00 $219.900.00 Address 7643 Bsss Lk Rd 4630 lmtependmce 4809 Flag Ave Ave lq Ci~ New HoFe' ....... New Hope ,,N~' Hope Da~e of Inspection , 12.5-03 I2-22-03 12-22-03 Svie . , ] ½ Stor~ One Story. 'One Stor~ , Consu'uction Actual Age/Etf. A~e ' , $5}~ / 12y N/A N/a. ..... Condition EGF A-G A-G A-G No. of Units One One One No. of Rooms,,, Sev~n Seven Eleven , No. of'Bedrooms Two Three' Four Bedrooms ReClUired One One " one No. of Baths One 1 3/4 Three - Totnl Area (ScI. Ft.) 1,r336 1400 " 1722 ~Basement Un Fin J~ull Fin Full Fin Bsmt- ~s of Fin. Rm~. N/A FaRm / Work area FaRm / Work Shop Heat/Cooling FA / Can" FA / Can ' FA/Non. FLo~laces One One one Ot~cr Finished Space N/A , N/A N/A Garage One At~ / One Der Two At~ Two Att Let Size 90x2~ ! .4g A / ?~xl~4x?'lxl6$ / .28 '~,b~'128x82x128 / 21~I$0 Sqfl A/12~00 Sqtt Neighborhood A/E/B A A/B ' A/B Schools yes Yes yes '" Public Transport, Yes , Yes Yes Chumh, Yes Yes Yes Place of Employmtnt N/A Yes Ye~" 2.Yes 2. v,, yes O~er C____.~ents --- Home has Three Home has p~tio Home has deck -- -----.._.._ .._a~ason [~or~h Comparable Cmmnents & Conclusions: sm4.~o.oo x~/. ,. ~ List Price of Comp. *Adj, FacUn Adj. Price g214.900.00, -I180.00o.00 = ~ Adj. Phce Acq. Price (Subj.) Total Supplement Payment: $22,500.00 & $12,400.00 in a payment of homing of last resort - S34~Q0.00 Relocation Consultant:$cot~ Mesn~ Date:_ PRICE D il~I~,REI~nAL PAYMENT ANALYSIS OF COMPARABLE PROPERTIES Count: ~ Parr, et: Owner: ]5ealrice Doi~n Add,*: ~ City: New l-Io~e Comparable Pr~p~ Subject COmP No. 1 CompNo. 2 i, comp No..~ ~ic~ ~180,~.00 194,~00.00 194:~00.00 i ~09.000.00 A~ ,, 7643 B~s ~ Rd 88~0 61 ~ St ~ 4756 ~ Ave N ~ 5309 C~ N~ ~e N~w H~e New Ho~ New D~ of ~on ~2-5-0~ ~ 12-22-03 12-2~-0~ 12-22-0~ S~le 1 ~ $to~' ~ Sto~' ~e Sto~ ~c Sto~' ~ndifi~ ~G~B A-G A~ A~[ ' A-G No. of U~ts ~e One ' One ~ ' No. of R~ Sev~ Se~ ] Seven , ,,EiSa, No. of Beams ~o ~c ~ Po~ ~e~ooms ~qu~d ~e ..... ~e ,.,~ One No. of Ba&s ~e I I~ ~e ~ I 3/4 Total A~a (Sq. Ft0 lt3~6 1050 , 1024 ~ 12~0 Bmem~t Un F~ F~I F~ Full F~ ~ Full Fm ~m~- T~s offm. ~s. '"~/A pA~ " F~m / ~ / Off" BR / Ex~r~ He~Cool~ FA / C~ FA / C~ / Wall FA / C~ FA / Cen ~plac~ ~e ~e N/A ~,F~ished S~e, N/A N/A N/A G~ge ' One A~ / ~e Der ~o ~t ~o Dot Two A~ Lot Sizc 90~35 / .~8 A / 75x135 / ~3 A / 94x123x~4x125 / 75x140 / 34 A / Nci~borhood ~ 21,1~0 ~ I0,125 Sqfl .24A / 10,5~ S~ I0,~ Sq~ A A-B A:B Schoo2 Y~ Yes ' yes Yes ~blic T~spo~a~ion yes Yes Y~ Yes ~h Y~ Yes Yes Yes Place 0fEmplo~,~at N/A Yes ' ' Yes Yes W~e~ 1. T~e 2. Adeq~ I. Ci~ 2.Yes " l.Ci~ 2. Yes l.CiV 2. Yes 1. CiV 2. Yes Sew~ 1. ~ 2. Adequa~ 1. ~V 2. Ym 1.CiV 2. Ym l.Ci~ 2. Yes 1. Ci~ 2. Yes s~ p~h . patio JENSEN & SONDRALL, P.A. Attorneys At Law 8525 ED1NBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443-1968 TELEPHONE (763) 424-8811 · TELEFAX ('/63) 493-5193 e-mail iaw~jensen-sondrall.com DOUGLAS J. DEBNER2 GORDON L. JENSEN' February 5, 2004 GLEN A. NORTON Ken Doresky STACY A, WOODS Community Development Specialist City of New Hope or COUNSEL 4401 Xylon Avenue North LORENS Q. BRYSESTAr~ New Hope, MN 55428 RE: Acquisition of 7643 Bass Lake Road/Beatrice Dolan Our File: 99.11305 Dear Ken: Attached please find for consideration at the February 9, 2004 EDA meeting a proposed Resolution Approving Purchase Agreement and Relocation Benefits (7643 Bass Lake Road). The resolution and purchase agreement incorporates our agreement with Bea Dolan as presented to us by her son Mike Dolan. Basically, our appraisal established a market value of $180.00 for her property. The relocation benefit analysis indicated the owner was also entitled to a $34,500.00 differential payment for the purchase of a replacement property. The Seller wanted the purchase price set at $190,000.00. We have agreed to do this based on the fact Mrs. Dolan will not be receiving any differential payment due to the fact she is not going to purchase a replacement property. Apparently, she is intending to move to Alexandra where her son is located and has decided to rent rather than buy a new home. Since the rental rates are cheaper in Alexandria than in the Twin Cities she will not be entitled to a rent adjustment either. Her decision will actually result in a net savings to the EDA of $24,500.00. We have also agreed to pay Mrs. Dolan's closing costs for her property at 7643 Bass Lake Road. This will include the cost to cap the well on the property, all recording fees, the state deed tax and the cost for the commitment for title insurance. Mrs. Dolan will pay her pro rata share of 2004 real estate taxes. Please contact me if you have any further questions concerning the purchase agreement or this resolution. Very truly yours, Steven A. Sondrall, City Attorney, JENSEN & SONDRALL, P.A. Enclosure(s) Real Property Law Specialist Certified By CC: Kirk McDonald The Minnesota State Valerie Leone Bar Association :Adnlitted in Iowa P:La-ttorne'y~AS~2 City ofN~nv Hop~99-11305Mir 1~ Dore~ky m re$o approving PA. doc AId'Or, ICeS a~ll' ~ 852~ ED~BR~K CROWING, ~E. 201 BR~ P~ MINN~OTA S~1968 T~E~HONE (7~) 42~811 * ~LE~ (763) 49~5193 ~ iaw~jemen-sondrall.com ~UG~ J. ~ ~'s fl~e~ fl~! N~: ~63) 201~211 G~ A. ~A~ A. W~ Feb~ ~, 2~ ~s ~. ~a~ Co~ ~velop~nt Di~ctor ~cdon~ci. ne~-ho~e, mn. us Ci~ of New Ho~ ~ BY ~GU~R M~ ~01 Xylon Avenue No~ New Ho~, MN 5~28 Re: Acq~tion of ~~ at 7~ B~ ~e Roa~ ~ ~o~ O~ File No. ~.11305 Dear Kirk: This letter will confirm our February 2, 2004 telephone conversation concerning my conversation with Michael Dolan, the son of Bea Dolan, the property owner at ?643 Bass Lake Road. Mr. Dolan is also an attorney. He responded to my lanuary 29, 2004 memo regarding a proposed Purchase Agreement relating to his mother's property. Basically, he made a counter-offer to me on his mother's behalf indicating his mother would sell this property for $190,000.00. Our current appraisal for this property is $180,000.00. Also, Evergreen Land Services has dete~nined the differential payment could he as high as $34,900.00. Therefore, the EDA's potential real cost to acquire this property could be as high as $214,900.00. Mr. Dolan is requesting $I0,000.00 more than our current appraised value due to the fact his mother will not be utilizing the $34,900.00 differential payment. Apparently, she is planning to relocate to Alexandria, Minnesota, and is intending to rent property in Alexandria rather than purchasing a replacement home. Due to the fact rental properties in Alexandria are less expensive than the rental properties in this area, she will not be entitled to any rent compensation as well. Essentially, the City is saving $34,900.00 plus additional closing costs that' may equal $2,000.00 to $4,000.00 by the property owner's decision to rent in Alexandria rather than purchase a replacement property. Also, given the fact she is not utilizing her closing cost reimbursement on a replacement property she is requesting that the City waive on the purchase of her new property, the State deed tax, the 'cost for a commitment for title insurance and the well closure costs. These fees will roughly equal $1,1500.00. Basically, she desires to receive a net payment from the City of $190,000.00 for the acquisition of this property. 'Real Property Law Specialist Cenifaxl By If the City is agreeable to this proposal, she will vacate the property by April 1, 2004. The Minneso~ Sine Bar Association 2Admitted in Iowa February 3, 2004 Page 2 In my opinion, this is a reasonable price to acquire this property, especially in light of the potential differential payment savings. Also, as is the case with all the properties remaining, litigation costs to acquire the property through a condemnation hearing could easily exceed an additional $10,000.00. Keep m mind we will need to pay commissioner's fees that I estimate will cost at least $2,000.00 to $3,000.00 per property. Further, the property owner in this case has not obtained a separate appraisal eliminating our exposure for appraisal fees up to a maximum of $1.500.00. Also, the property owner may be able to obtain an independent appraisal establishing a value for the propert3.' in excess of $190,000.00. Finally, our appraisal fees for testimony at a commissioner's hearing could easily equal $1,500.00. In light of these considerations in addition to our saving of the differential payment, it would appear to me to be a reasonable position to pay the property owner $190,000.00 for this property and waive the State deed tax, title commitment fee and well closure fee. Please contact me if you have any further questions or comments regarding this matter. Very truly yours, Steven A. Sondrall, City Attorney, City of New Hope cc: Dan Donahue (via e-mail and U.S. mail) ~en Doresky (via e-mail and U.S. mail) P: \^ uomey~S,A..~2 City of N~r,~' Ho~e\99-11305X99. ! 1.30S-001-Ki~ Ln'.~loc -- Moving Systems, Inc. ' ' Hoving ~rom: l~oVl~ ~.o: Addre~a: ~fid3 ~SE ~ RO~D Addre,~: Cit~,~t.: N~ HOPR, ~ C1~ S~: A'[,RXAND~IA, ~ Pacing Da~e; Load PeriodiW/l Delivery Pe~lod: Containers Packzng (D) Unpac~ing (D} Dloh Pack 10 13.50 135.00 10 14.50 145.00 10 3.15 31.50 1,5 C=n 10 2,9D 29.00 10 3.50 ]5.00 10 0,85 3,0 C~n 24 4.45 106.80 24 5.35 128.40 24 1.20 28.80 4.5 Ctn t ~.50 44.~O R 6.95 55.6~ ~ ~,~ 1~.0~ Wa=~ob~ i 10.80 '10.80 7 4,25 29.75 7 0.45 3x3 ~ 4 7.50 30,00 4 3.55 14.2D 4 i.10 4.40 4x& Ma: 2 9.00 18,00 2 3,8~ ~,70 2 1,10 2.20 ~irrnr 5 lO,a~ ~.. ~ fi q.~o ~.~0 5 2.00 ~ To~ais 125.95 463.!5 100.55 ' Tazl~f : 400M/ATVL GROSS Wt : 5950 ~e~ W~ : 5950 * ~ ~ffmctive: 01/28/2000 ~ranl M~ : 5950 ' Origin ST: (24} CNTY: (~7) ~es~inaticn RT: (~4) CNTY:(2) ' origin Sezvice Area~416 Desclna~o~$ervice A~ea:il6 DescriD~ion ~eiqh= Ouanti=¥ Rate Charges Tr~n~Dnr~a~i~n C~g R~R~ T,RS qTR.TR Concatners,ea=kLng & Unpacking (see itemized last) 989.55 Fuel SUrCharge 5% ' 48.94 Valuation Charge 25000 ~ 0.60 155.00 Grand Total Prepared By~ LINDA SCHROEDER .. 1~03 33RD STREET SOUTH · ST. OLOUD, MN ~) ~2-2~1 · F~ (320} ~-5401 3020 NIAGARA ~E N. · PLYMO~H, MN S~47 ~3) e~o · F~ (763) 6e~707S ~il. mevem~win~mm.~m Pro ding Quality A prais £or Bus Lenders DATA SUMMARY Client: City of New Hope/Ken Domsky 4401 Xyion Avenue N. New Hope, MN 55428-,1898 Borrower: N/A .......... ~e~d~reee: '7~3'Ba~ i.~i~e Road::' ::' ..... New Hope, MN 55428 Value: $180,000 Date: December 5, 2003 Appraiser: Gregory V. Gallahan, Cert Real Real Prop File: Doisn Forsythe File: 30120322 222 ~T-L~T~L~ ~ ROAD, ST. PAUL, MINNESOTA- 55117 (612) 486-9550 / FAX: (612) 486-9732 Domn ,pe,w o.~et,oq, UNIFORM RESIDENTIAL APPRAISAL REPORT ~ I~. 301~0322 ~.~.r~f*,x~s 7643 Bass Lake Road cef New Hope S~m MN Z~ Cme 5.5428 ce~a O.cre~e~ AuditO~s Sutxt No 226 LOt 39 BIk E gO ft of W SOO ft of N 235 2/lO fl Co~v Hennepmn ~_~-~.~s~an:~o 0511821330023 ~a~vear 2003 RE ~S 1.569.96 Seeaa~-ssm~ts$ None ~ee,~e~ N/A Cme~tO~rer Doian, Beatrice Oe~pa.: 'X O~ee, le~a~: ! ~,~-~.q.ts ap~: tx Fee S~mo,e ceasen~d J Rm/ect Type I~J~ Co~cw.-,.~rn (HUD~'VA e~v, NO~ None Ne~gmx)moooorRo~ec~ ~m're N/A Ma~Rete'ence D1-91 Ctm,~s lrac: 5120-0215.02 Sa~e ~ S N/A Date cf ,5a~e N/A Deso~ton and $ amoum ct ~oan cnar~, s~co~cess~'~s to ~e oa,o ev se~e~ None t.enoet'/Caent City of New Hope/Ken Doresky A0aes~ 4401 Xylon Avenue N.. New Hope. MN 55428-4898 r v. Caliahan Cert Res)Reap Prop Actress 222 Ltllle Canada Road L)tt)e Canaoa MN 55117 LOCa~on ,Uroa- r__~, Su~urOa~ ~. R~'a latmllm~nant ;~ngletami~yhousmg P'm~entlanelmm% Bu~tup ~ C)~erT'5% 25-75% : Un4~25% ; ecr.~eancy ,PR;CE AG£ -- Prooel~va~e$ {~Xr Inola~lg =' S~ ~ ~g r le.,,~ 350 ~q~ 65. vo~,4an~ 15% lo Not Apphcable Ma'Kel~ngt,me IX Ureer~mos .. 3-6mos O~e~6mos .~,.,.~% 180 35 ,Vacant Ne~h~u 0ounearms an0 ~acter~sh~ T~e sublets nemgh~mooU ~un0anes are Br~klyn Park to the noRh Gol0en Val~yjQ Rd. 81 to t~e east and H~q~y169 to t~e ~st T~ms ~s an established area Fa~s l~l affect lne ~Kelabd~ly of the ~o~les in me ne~fl~ (~oxl~ty lo e~loy~nl ano amenllles, em0~v~nl Slabddv. a~a; to m~ke~, eIc ) Bass Lake Road is an e~abhsnee resi0entml st~t. Coun~ Rd. 81, a Io~1 traffic ane~ ~s ~tmn one mile ano offers acce~ to S~opDing ~h~ts. employment ~ntem, fraysrane recreation Pro~y values nave ~en ~ncreasm~ ___ Demane for t~e area Is ~oo~ Improvements 0o confo~ to the su~un~mq homes The nerq~0ornooe nas no apparent adve~ factom affecting t~ SUblecrs ma~etabih~ S~ aUached for ae~t~onal comments ..... Market mflditmfls in lhe iu~ec[ fl~hWh~a (m~uOmg ~ ~ l~e ~e ~u~s telal~ lo l~e ~ of ~ ~s. ~. ~ Maet~ I~ - such as 0als o~ ~m~tlllve ~s ~ ~le m lhe neighborhood. 0es~lDllo~ 01 the ~evale~ce of sales an~ financing co~cessloas etc ) MLS marketinq d~strict ~362, MLS statistics indicate that 87.40% of all hstmgs are selhnq ~th an time of 31 Oays. ~llem am mceiwng 99.24% of t~e asking pr~. Financing at t~e present t~me ~s , available from a variety of sources, ~Jch ~nefJts both potential buyers and sellers ~aj~c~ ;,,;~: __::In for PUDi (Il appi,~le). - Is lne ~lbull~r m ~nffol Df the Home Owners' ~so~al~on (HOA}~ _' YES m NO ~te IO~ ~ Of unus m t~e subject ~ect N/A ~o~e I~ ~ of un,Is t~ ~te ~n l~e su~lect ~olect N~ es Not Applicable. ~y Slo~s Gently ~ea~ Approx. 21150 Sq. Ft. {per count} ~= ~ Yes ~ ~ ~e Abv. Avq.~1,150SF Spe~fic~mng ~as~fi~tmn an~ ~e~=~otmn ~B CommuR~ Business ~ Rectangular ~ ~e~n{ u~ ~ ~ ~ (e~in) N/A v~ Resi~ent&Apa~ments Utll~les ~ ~ I~~ T~ ~ ~te~ ~ Typi~l ~ ~ ,]00 AMP CB ~ ~--t Bituminous ~' ~ ~~ Asphalt ~s ~ ~ Concrete I~1 ~l ~t~nls ~'o~al Wat~ ~ I ~ Concrete ~ FE~S~IF~Nea ~1 Yes ~ ~ ~ j ~t~ Yes ~ ~ "X" ~e3/10/01 ~ ' ~y None ~p~ 27053C-0192E red. GENE~ ~RI~ION ~RI~ ~RIPTI~ ~.of~ One ~ F~ C.BI~k = ~ 17% ~ ~ea~.Ft 8~ I ~f Conc ~.~S~ ~ ~ ~w~ Wood Side ~ ~ ~o T~t./~.) De. ch ~ ~f~ Asphalt ~ ~F~ Unfin ~ ~ Conc Cx ~(s~) ~ ~,t 83% ~ ~ N/A , waas Conc ~&~. Metal ~ ~No ~ w~s N/A , F~ Conc ~~ ~t ~ ~T~ D.Hunq ~ ~ None Noted J F~ Concrete , ~ ~ ~m.) ~ ~ ~t0~s ~ ~' ~one Noted~ ~ No , ~ ' ~ 1 I 1 Fm~ Gas ~ ~ ] Para s~ ' J ~el act.s ~ ~ ~' Season ~ I Car ~ ~ No ~ ~ ~-In ~~ ~ east a~. etc.): The sub'e~ has an avem e efficien as fomea air heatins stem. The , e~ly Of ~naEu~n re~lmgladOit~s, etc.: T~e~ubjec~ The Dolan UNiJ=ORM RE$1DE~L APPRAISAL REPORT r~,~o. 3012032.2 ESTIMA1T=DS}'/EVA~U~ ....... ...... = $ 55.~0 Counts o~ ~s~ ~mol~ <~cn as ~urca ot cost esl~m~e ~. F~. ~ = 0 'The she val~ as vaunt ~s ~aseO on manet trends = *Total economic lite of 100 To~ Es~ ~t ~ = ~ 0 ~ ~S 0 I~ V~UE BYC~R~CH = S N/A 7~3 Bass Lake Roa~ ~9025 36t~ Avenue N ,4230 Nevada Avenue ~ ~ New Hope ' New Ho~ ' New Hope New Hope ~ ~rox. 3 Miles , Approx 1.5 M~le Approx 75 ~ ~s N/A. s 179.000 '~¢ . 159.900 S 183 700 ~.~ ~s 0.00 =~s 117.76 m ~s 1~.60: ~ 15621 - ~ ~ ~ Ins~cbon ~ MLS/Coun~ I MLS/County ~ MLS/County v~ ~s J CounW Info. ~ 10 Days on Market J 39 Days on'Market : 25 Days on Market v~~s ~SCRIPTION ~SCRI~ION *~.~t~, ~SCRIPTi~ .~.~t~. ~SCRIPTION ~s~ Fm~ N/A ; Convl0 ~s ; Conv/0 Pts Conv/0 Pts ~ NIA ~ By Seller ~ By Seller ' By Seller Oma ~ ~n~ {NIA ; Clsd 7102 [ CIsd 4/03 . Clsd 8/~2 L~ten t Subu~an ~ Similar Neiqh. } Similar NeiRh I Fee Simple ~ Fee Simp~ I Fee Simpie ; Fee S~mple S,e t 90x235 185x293/Eql. ~ 95x130/Inf. 7,500' 100x 10511nf 7.500 ~ ~ Res.~p~m~ts l Similar V~w l SJmi~r View ~ Sup V~ew -?. 500 ~ 1.5 t 1.5 SW/Eql. ;Rambler/Sup -2.500 ~ I Avemqe Qual. ~Similar Quafiw [Similar Quali~ ~S~milar Quahty 55 Yin. ~ 80 Years 5,000 ~65 Years ~43 Years ~ I Av~ Cond ~ Sup,? Cond. -5,000 ~Sup. Cofld. -3.500 Similar Cond ~t 25 7: 2 1.00 ' 4 1.00: -, . 5 3 1.00 - 6 3 1.50 ~" 3.700 1.176 ~Ft 4.00d '~,=,;&~ ~83% of 1st FI. tFull/Eql. IFulFEql. ~Fu/I/EQI ~ished I Unfinished 0 ~246 Sq Ft Fin -2,5001824 Sq Ft Fm -8,20~ UtiL I Simi~r UtiliW ~ Similar UtilJ~ ~ S~milar Utihty FA ClAir FA ClAir ~ Ge~ FA ClAir [ Gas FA C/AIr I Unkno~ ~ Unkno~ I Unkn~ AG/1 ~r ~ J 3 2 Car Garaqe ~,. ~. ~, t None 3,500 ~ Deck 1,5001 ~ck 1.500 i Wood Stove 1,500 f I Fireplace ' 1 F~rep~ece N/A '1N/A '~ N/A' ~ N/A ~her ~N/A I NIA .~ NIA f N/A J ~'~:~+1~%1X~' :S 2,600~[X~, ;- :S 9,700: -- ~ -1% s 176,400~t: 6% s 169 600 Net -0. g3% S ~82,000 C~,~,,[, on Sales ~fl (in~dmg the ~bt~ mo~y's ~ati~h[y to the nmgh~d, etc. ): ~oom .count aOlustments are Included ustments am made usin $25 r s uam foot. Bath ro~tments are made are ma~e us~ finished info~ation fo~ discussiofl of sales corn a¢~son adustments ~M T 5U~ECT ~ i C~P~LE ~. 2 C~A~E ~ 3 N/A Gdd See Comps Sales Grid t S~ Comp Sales ~ ~ ~ NIA t N/A ~ N/A f N/A N/A P MLS/CounW Records ~ MLS/CounW Records I MLS/County Records _.~v~~~ ......... ' ~ .... :" '_ .......... ... .................. u~e~. The ~ ~ ~ ~ ~e ~ ~te ~ I Stale P~2~2 FO~ ~i~ls, ~C SUBJECT PROPERTY PHOTO IBen ow et. N/A File No.. 30120322 Address: 7643 Bass Lake Road Case No.: Dolan Cit~ New Hope S~. MN Zq): 55428 Lc, m~e~- City of New Hol~e/Ken Doresl(¥ FRONT VIEW OF SUBJECT PROPERTY ' ,, ' *. t REAR VIEW OF "~ J : / ' SUBJECT PROPERTY ?I' ~.""'~ - ' · ' "i.. STREETSCENE ~ NIA F.e No. 30120322 A~ress: 7643 Bass Lalce Roacl : Case No.: Dolan New Hope St: MN Zip: 55428 LenOer City of New HoDe/Ken Detached Garage Borrower; N/A F~e No. 30120322 Ack,tess: 7643 Bass Lake Road Case No.: Dolan C~ New Hope St: MN Z~p: 55428 Len0er C~ly of New Hope/Ken Dores~<y Second Floor COMPARABLE PROPERTY PHOTO Bar mw er:. N/A F~ No. 30120322 ~: 7~3 ~s ~ke R~ C~ No.: ~lan C~ ~w HO~ S~ MN. ~: 5~28 L~ C~ of New Ho~lKen ~ms~y New HO~ ~.. -' ..-_... . .. ' ,, ..,~ [ .... ~_ ._. - ..~'-' ._~. .~, , .. ',,',, ~ - ~.j ~,', /'~ / x.;-,:< ! "'::" "' 4230 Nevada Avenue ~" N~ HO~ j ~-' [ ...~-~' · :-' 6008 Winnetka Avenue N. ~-' ":: " '"-"~" ':'~:. t'~ ' ' ::: New Hope ADDENDUM Borm,6~r- I~A F~e NC 301~03~ ,~mss 7~3i Ca. Nc ~ C~* ~Ho~ Srme MN Z~ 5~2~ Le~ C~ of ~ H~/Ken ~s~y ADDITIONAL FEATURES: In addition, the sub.fect has** an attached one car garage, central am fireplace, harowood floors anci large three season porch. CONDITION OF THE IMPROVEMENTS: The subject is in mostly average overall condition. The floor plan Js appealing anct room s~zes are good The subject has Peen inspected for physical, functional, and external inadequacies The sub]ect nas no apparent functional or external obsolescence· COMMENTS ON SALES COMPARISON: Comparable one is infenor in age but due to recent updates (new roof & newer garage) it ~s considered somewhat supenor in condition. Comparable two has a smaller lot and is inferior in site value. It has had some recent updates (roof & updated bath) and is considered superior in condition. Comparable three has a smaller lot and is also inferior in site value. It has a typical residential vfew ancl ~s supenor in view amenity. Because it is a one level rambler dwelling, it is somewhat supenor appeal. TRANSMri'rAL LETTER: The subject was inspected on Decemper 5, 2003. The estimated market value as of December 5, 2003 (effective date), is $180,000. The property was appraised by Gregory V. Callahan, Licence Numper 4002346, Certified Residential Real Property Appraiser. A certified residential real property appraiser may apprmse residential property or agricultural property without regard to transaction value or complexity· This appraisal report is a "Summary Appraisal Report". It conforms to the 1997 Uniform Standards of Professional Appraisal Practice. No responsibility has been assumed for matters which are legal in nature, nor has any opinion on them peen rendered, other than assuming marketable title. Liens and encumbrances, if any, have Peen disregarded and the property was appraised as though free of indebtedness. Please feel free to call us if you have a question. ADDmONAL COMMENTS: 1. The purpose of the appraisal is to estimate the market value of the subject property for litigation purposes. 2. The legal description of the subject property can be found on page 1 of the 1004 form. 3. The reasonable marketing period for the subject property is under 90 days. past4' According36 monthst° the county and the MLS system, the subject property has not been transferred in the 5. The subject propertY was inspected on December 5, 2003, the report was prepared on December 5, 2003, the effective date of.the appraisal is Decemper 5. 2003. 6. The subject is an existing structure. This appraisal is made "as is." 7. Personal property was not inclu~:,d in the appraised value. 8. We have considered all three approaches to value. The income approach was not utilized due to lack of reliable rental data of single family homes in this neighborhood. The cost approach was ADDENDUM Bo~'o~r': N/A F~ NC 3012032: 13mpeny A~lclress 7643 Bass La~e Roa= Case Nc Do~a~ Cm~: New Hope State MN Z~c 5542~c LenOer: CI'~' of New Ho~e/Ken Do~s~<y considered I~ut not considered applicable. ~erefore it was not fncludecl 9. Tl~e subject is a single family reslctential Property. Revenues. expenses, and/or vacancies cio not apply. 10. Current and future employment or compensation is not contingent upon the reporting of a predetermined value or d~rection in value that favors the cause of the chent, the amount of tl~e value estimate, the attainment of a stipulated result or the occurrence of a suDsectuent even~ 11. This appraisal report was completed in conformity w~th the Uniform StanOarcis of Professional Appraisal Practice. 12. If the photos included in this appraisal are d~gital/electronic images, they have not i~een enlargeci, enhanced, or altered in any way. 13. If electronic/digital signatures are used. it has been ruled acceptable appraisal practice Dy USPAP 14. The appraiser certified that if this appraisal included an electronic/d~gital signature it ~s ma~ntmnec~ and controlled t)y the appraiser completing the report. GC A~I~ P~ge 2 ~2 DIMENSION LIST ADDENDUM Borrows. N/A F~ No.. 30120322 Property A~ress: 7643 Bass Lake Road Case No.: Dolan CT: New Hope Slate: MN Z~: 55428 GROSS BUILDING AREA (GBA) , 2r528 GROSS LIVING AREA (Gl,A) 1,336 ~ 1,336 52.85 [~,~ ~ .... 1~064 42.09 c~,, 2 272 10.76 ~3 0 j ... 0.00 ~08 12.~8 Area Measurements ~U'ea Type ;Me~ur~mentl Flgtm' TMal Levelt ~12 ~13 ~r J Bsmt. ~.00 FLOORPLAN Bom~wen N/A F~e Nc 30120322 Pro. m/Ad~ress: 7643 Bass La~e Road: Case Nc.: Dolan City: New Hope State: MN ZJF: 55428 Dore 34.0' 2nd floor 34.0' 34.0' 10.0' '~ Kitchen Dining Bath Bedroom - o Dn'~ Up · =~ Family ~--~ Garage '- Room Living Room BeOroom 14.0' 1st floor 44.0' S~mch by Auex IV Wineows~, AREA CALCULATIONS SUMMARY LIVING AREA BREAKDOWN C~ O~scftDlk~ $~xe Totals Breakdown TOTAL. LIVABLE (rounded) 1336 3 Areas Total (muncled) 1336 -" 5537 .'-', .: 5538 "i : ' "-._ 7301 5524 5,519 ' ~:--;'h ~ ~ City-Owned P rope~ies (2-2-04) - ' ~; 1. 5340 Winnetka Ave. N. . ~ ...... 3. ~06 Winnetka Ave. N. ~ ; 5. ~20 Winnetka Ave. N," ~ ~ ~ ~ ] 5~7 ,' 6. ~22 Winnetka Ave. N. . 7. 5500 Winnetka Ave, N. . ~ · 8. 5506 Winnetka Ave. N, 10. 5524 Winnetka Ave. N. /" ;' ; ~ ~3= : 12. 5550 Winnetka Ave. N. 13. 5520 Sumter Ave. N. ' ) 18. 7603 Bass Lake Road E~. ~ ~ ~; '. · 21. 7801 Bass Lake Road Property Information Search by Street Address Result page Page 1 of 2 Hennepin County, MN ' sear=~ r,~JProPerty Information Search Result The ,enn~ig ~;'u'ng,-P;o~e'r~.' "T[ar'w'e-b [t;'ta'b;s~e is updated daily (Monday - Friday) at approximately 9:I5 p.m. (CST) Search By: Parcel Data for Taxes Payable 2003 Click Here for State Copy of Payable 2003 Tax Statemen! Property ID '-'-~t v,ew MaI~ J 'taxes Due J Pa~.~n, Om.on* l [ Add,ss Property ID: 05-118-21-33-0023 ~ Address: 7643 BASS lAKE RD Addition Name Municipality: NEW HOPE School Dist: 281 Construction year: 1948 HOUSE or BUILDING #: Watershed: 0 Parcel Size: 90 X 23 7643 Sewer Dist: 02 STREET NAME: Owner Name: BEATRICE DOLAN {at least first 3 charscters) Bass Taxpayer Name BEATRICE DOLAN Lake Road & Address: 7643 BASS LAKE RD UNIT # (~f applicable) NEW HOPE MN 55428 I Most Current Sales Information Sales prices are reported as listed on the Certificate of Real Estate Value an ~] ~ warranted to represent arms-length transactions. NO SALE INFORMATION ON FILE FOR THiS PROPERTY. ['~--~ records per page Tax Parcel Description Addition Name: AUDITOR'S SUBD. NO. 226 Lot: 039 Block: Metes & Bounds: E 90 FT OF W 500 FT OF N 235 2/10 FT Abstract or Torrens: TORRENS Value and Tax Summary for Taxes Payable 2003 Values Established by Assessor as of January 2, 200; Estimated Market Value: $138,000 Limited Market Value: $117,900 Taxable Market Value: $117,900 Total Improvement Amount: Total Net Tax: $1,569.96 Total Special Assessments: Solid Waste Fee: $22.38 http://www2.co.hcrmcpin.rnn.us/pins/addrresultjsp 12/24/03 Property Information Search by Street Address ResUlt page Page 2 of 2 Total Tax: $1,592.34 '[axes D(~e j Property Information Detail for Taxes Payable 2003 Values Established by Assessor as of January 2, 200; Values: Land Market $45,000 Building Market $93,000 Machinery Market Total Market: $138,000 Land Limited $38,400 Building Limited $79,500 Total Limited: $117,900 'Qualifying Improvements Classifications: Property Type RESIDENTIAL Homestead Status HOMESTEAD Relative Homestead Agricultural Exempt Status 9046 Hennepin County is providing this information as a public service. Have a tax related question? Send e-mail to taxinfo@co.hennepin.mn.us Experience a problem searching database, have a technical question or wish to o Hennepin County Tax web site? Send e-mail to webinfo@co.hennepin.mn.us Have a comment on any of Hennepin County's web sites or E-Commerce applical e-mail to Henn. Net@co.hennepin.mn.us Home ~ Serwces , Taxpayer Serwces Assessor's De=t Ma Copyright © 1998 - 2001 Hennepin County http://www2.co.hennepin.mn.us/pins/addrresultjsp 12/24/03 EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development 2o9-04 EDA Item No." By: Kirk McDonald, Director of CD & Ken Doresky, CD Specialist B)/: 7 RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS 7615 BASS LAKE ROAD (IMPRQVEMENT PROJECT FILE 723) REQUESTED ACTION Staff recommends EDA approval of a resolution prepared by the city attorney approving the purchase of property located at 7615 Bass Lake Road (New Hope Alano) for it's appraised value of $465,000 and relocation estimate of $35,000. 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 property in areas designated for redevelopment in the Comprehensive Plan. BACKGROUND On January 26, the EDA directed staff to prepare a purchase agreement for the appraised value of $465,000 and relocation estimate of $35,000. The EDA was not supportive of Alano's request to purchase the city- owned property at 7601-41 62® Avenue North. The EDA was supportive of exploring the possibility of providing Alano with assistance for relocation to the proposed office condominium complex at 42"¢ and Quebec Avenues North. Finally, staff requested that Alano submit detailed financial information to city staff indicating their "gap" request to bring back to the EDA for future consideration. Over the past year and a half, staff has been meeting with the New Hope Alano Group to discuss the potential acquisition of their property and relocation options. .. 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 Session, the city's TIF special legislation was passed. In December 2003, the district was approved by the City Council. I:\RFA\PLANNING\Housin~i\7615\Q - 7615 Bass Lake Road Purch'ase A~lreement.doc ,,, Request for Action Page 2 2-9-04 ATrACHMENTS · Resolution · Purchase Agreement & Relocation Data · City Attorney Correspondence, 2-5-04 Provided in 1-26-04 EDA Packet: · City Attorney Correspondence, 1-6-04 · Hennepin County Tax Assessor Correspondence, 10-31-02 · Evergreen Land Services Correspondence, 1-21-03 New Hope Alano Group Correspondence and Concept Plans, 1-14-04 · Staff Memorandum, 12-4-03 · Location Map/City Ownership Map · Council Minutes, 7-22-02 Provided in 7-22-02 Council Packet: · Correspondence from Property Owner (5-6-02) · Location Map · Topographic Map · Appraisal · Hennepin County Parcel Data · Hennepin County Exempt Value Information · Planning District 6- City Ownership Map · Comprehensive Plan References- Planning District 6 ___.______~ONDRALL, P.A. ~.DA ITEM 7 (February 9, 2004) JENSEN Attorneys At Law 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443-1968 TELEPHONE (763) 424-8811 · TELEFAX (763) 493-5193 e-mail law~jensen-sondrall.com DOUGLAS J. DEBNER1 GORDON L. JENSEN' c,.~N A. NORXON s~eveN A. So~mua. February 5, 2004 STACY A. Wooos Ken Doresky oF COW~L Community Development Specialist LORENS Q. ]~RYNF.,STAD City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 RE: Acquisition of 7615 Bass Lake Road/New Hope Alano Group Our File: 99.11276 Dear Ken: Attached please find for consideration at the February 9, 2004 EDA meeting a proposed Resolution Approving Purchase Agreement and Relocation Benefits(7615 Bass Lake Road). The resolution and purchase agreement incorporates our agreement with the New Hope Alano Group regarding our acquisition of their propertL That agreement is more fully set out in my January 6, 2004 letter a copy of which is also enclosed. Basically, we are agreeing to pay the New Hope Alano Group $465,000.00 based on the Shenehon appraisal. Evergreen has estimated relocation benefits at $35,000.00. Therefore our total cost to acquire the property will be $500,000.00. Please contact me if you have any further questions or comments regarding this transaction. Very truly yours, Steven A. Sondrall, City Attorney, City of New Hope JENSEN & SONDRALL, P.A. sast~jenscn-sondrall.cora After Hours Extension//147 Enclosure(s) cc:Kirk McDonald Valerie Leone ~Real Propen'y Law Specialist Cenifie~ By The Minnesota Bar Association :AdmiRed in Iowa P:~AttormyXSAS%2 City of New H~\99-11r/6%[ir K. Domsky re re~o approving CITY OF NEW HOPE EDA RESOLUTION NO. 04 ' RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS 7615 Bass Lake Road 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 New Hope Alano Group, Inc., a Minnesota corporation ("Owners"), Owners of certain real estate known as 7615 Bass Lake Road (the "Property"); and WHEREAS, appraisers hired by the New Hope EDA valued the Property at $465,000.00 as of July 15, 2002; and WHEREAS, the Owners are willing to sell the Property to the New Hope EDA for the sum of $465,000.00 as set forth in the Purchase Agreement attached hereto as Exhibit A and incorporated herein by reference; and WHEREAS, the New Hope EDA herby approves the Purchase Agreement with the understanding relocation assistance benefits will be paid to the Owners as required by both State and Federal law; 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 for the Owners herein and has determined the estimated maximum relocation benefit payable to Owners is $35,000.00 (analysis attached as Exhibit B). The £mal actual cost for the relocation benefits the Owners are entitled to will be determined when the Owners actual purchase price, closing costs and moving expenses in connection with their replacement property are determined by Evergreen Land Services Company; and WHEREAS, it is in the best interest of the New Hope EDA to purchase the Property from the Owners for the sum of $465,000.00, with other terms and conditions as set forth in the Purchase Agreement and to pay the required relocation benefits. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference; 2. That the purchase of the Property by the New Hope EDA from the New Hope Alano Group, Inc., a Minnesota corporation for the sum of $465,000.00, with other terms and conditions as set forth in the Purchase Agreemem attached hereto as Exhibit A, is approved. 3. The maximum payable relocation benefit estimated to be $35,000.00 is hereby approved with the final amount to be established by Evergreen Land Services Company after the actual purchase price, moving expenses and closing costs are determined for the Owners replacement property by Evergreen Land Services. 4. The President, Executive Director and New Hope City staff are authorized and directed to sign all appropriate documems, 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 9~ day of February, 2004. W. Peter Enck, Presidem Attest: Daniel J. Donahue, Executive Director P:~Attomey\Cnh Rcsolutions~O9.11276-001--Rcso Approv PA-7615 BLR(Alano).doc Miller/Davis Co., St Paul, MN-Fon~ 1300 (19~4; Rev. 1996; Rev. lgg?; Rev. 2002) Minnesota Standard Residential Purchase Agreement MINNESOTA STANDARD RESIDENTIAL PURCHASE AGREEI by Minnesota State Bar Association Minnea~:~4is. IdhnneSOta © Copyright 1996. 1997, 2002 ' BEFORE YOU USE OR SIGN THIS CONTRACT, YOU SHOULD CONSULT WITH A LAWYER TO DETERMINE THAT THIS CONTRACT ADEQUATELY PROTECTS YOUR LEGAL RIGHTS. MinneSota State Bar Association discia~ms any liability arming out of the use of this form _ . by and pe~een 1 1. PARTIES. This Purchase Agreement is made on ___ - 2 thg.~V~ Hone ),lmlo Group Inc._ a. Minnesota non-prn£~r com. orarmn 1 ale Road N.e',~TM 5~'428- , SELLER. ant, 4 the Economic Deveio.nment Authoriv,'. ("IEDA"}. lit'and for the CIV.'. of New HoJ:~. , BUYER 5l]~01Df [buyeYs address] _ 44131 Xylon A¥ci~o~h- N~.W Hopr~_MLnneso[A~4~R - 7 2. OFFER/ACCEPTANCE- Buyer offers to purchase and Setler agrees to sell real properv/legally dssC, noed as: ................. _ ~ ~ 05-118-21-33-f)f)28 ~ ~ [Property Tax Identification Number or Tax Parcel Number _ ~3 located at 7615 FIA~ L,~ad -- "- 14 County of Henna.nih State of Minnesota. Zip Code 15 16 3. ACCEPTANCE DEADLINE. The acceptance date of this Purchase Agreement is the date it is delivered by the test party s~gnmg to the other 17 party. This offer to purchase, unless accepted sooner, shall be void at 11:59 A.M., on [Oate] _ .2004 18 and in such event all earnest money shall be refunded to Buyer. 20 4. PERSONAL PROPERTY AND FIXTURES INCLUDED IN SALE. The following items of personal property and fixtures owned by Seller 2~ and currently located on the real property are included in this sale [Strike out items not inclucled]' garden bulbs, plants, shrubs, trees, storm 22 win00ws and inserts, storm doom, screens, awnings, window shades, blthds, curtain-traverse-draperY rc~s. attached lighting fixtures w,th 23 bulbs, plumbing fixtures, sump pumps, water heaters, heating systems, heating stoves, fireplace inserts, fireplace doom and screens. 24 humidifiers, built-in air conditioning units, built-in electronic air filters, automatic garage door openers with controls, television antennas. 25 water softeners, built-in dishwashers, garbage disposals, built-in trash compactors, built-th ovens and cooking stoves, hood-fans, intercoms 26 irmtal~ed caq:)eting, work benches, sacudty systems, and also the following property: 27 29 Upon delivery of the Deed. Seller shall also deliver a Warranty Bill of :>ale for the above personal property. /C#ec~: the l~ox if the fo/lowing 3O provision applies to this Purchase Agreement:] [] Seller shall use M.S.B.A. Real Property Form No. 90 (1997), Warranty Bill of Sale 32 5. PRICE AND TERMS. The pace for the real and personal property included in this sate is ......... 33 Four Htmdred Sixty-Five Thousand and Od!tO0 Dol[ats__~ 34 Dollars ($465:000.00 ), which Buyer shall pay as follows: 35 36 Earnest money of $ 0 00 _ by [l~[~[ ]KN~D~., ~ILE - state which} ;~xxxx~xxx×xxx×××xxx,~xxxxxx)cx~v,..~'.Lx.x: payable to 37 /select one;J 38 ~ Seller. to be deposited and held by Seller (and may be commingled with Seller's other funds) pending closing. 39 ~ Seller's lawyer, to be deposited and held in the lawyer's trust account pending closing. 40 Seller's broker, to be deposited of held by broker according to the requirements of Minnesota Statutes. 41 Other [describe how the earnest money will be held/ 42 - 43 receipt of which is hereby aoknowiedged and $ 465000_00 .'___~__ cash~-0n ........ 20~4 .... the DATE OF CLOSING, and 44 the balance of $ f~ 00 by financing as shown on the attached Financing Addendum. 45 46 6. DEED/MARKETABLE TITLE. Upon performance by Buyer, Seller shall execute and deliver a Warranty Deed, joined 47 in by spOuse, if any. conveying marketable title of record, subject to: 4~ A. Building and zoning laws. ordinances, state and federal regulations; 49 B. Rss~ctions relating to use or improvement of the real Preperty without effective forfeifure provisi°ns: 50 C. Reservation of any mineral dghte by the State of Minnesota; 5~ D. Utility and clrainage easaments which do not interfere with existing improvements; 52 E. Exceptions to title which constitute encumbrances, resti'ictions, or easements which have been disclosed to Buyer and accepted by Buyer 53 in this Purchase Agreement {must be sbech~ed in writing]: 54 7, REAL ESTATE TAXES AND SPECIAL ASSESSMENTS, Real estate taxes due and pavabte in and for the year of closing shall be pro- 55 rated between Seller and Buyer on a calendar year basis to the actual Date of Closing, unless otherwise provided in this Purchase Agreement. 56 If tax statements for such taxes are not available on the Date of Closing. the amount to be prorated shall be .... % ut the prior year's taxes 57 and such estimated proration shall be/strike one] FULL AND FINAL BE'I3NEEN SELLER AND BUYER / 5~ TJ~[][~"JLM!~O~O~,~::F,~I~E~E~D~J~ (in which case the party entitled to a credit as a result of the adjustment shall rece*ve 59 the amount of such credit from the other party within 30 days of issuance of the tax statements). Seller represents the taxeS d~Je and payable in the 6o year(s) 2004 will he~E~r~., F,~'~ NON -homestead classification, unless Buyer changes the tax classification tot taxes 6~ payable in the year following dosing by taking posseSSion of the real preperly as Buyer's homestead and filing a new homestead declaration within 62 the time required by law. If the taxes due and payable in the year of closing are PART or NON-homestead classification, Seller shall pay to Buyer 63 at closing $ , in addition to Seller's prorated share of the taxes. If the taxes due and payable in the year 64 following closing are PART or NON-homestead classification end the closing takes I:)lace after the date by which Buyer must take possession 65 of the real property as Buyer's homestead to fi~e for homestead tax status for taxes due and payable in such year, Seller shall pay to Buyer at 66 closing $ es Seller's share of surdr~ taxes. 67 68 [Sthke one:] B~)~I.)~a~~~~~ / SELLER SHALL PAY ON DATE OF CLOSING 69 all installments of special assessments cerlffiet~ for payment with the real estate taxes due and payable in the year of c~osthg. ?0 [Strike one:] BLI~'~,~[~B,~IB[~I~X / SELLER SHALL PAY ON DATE OF CLOSING all other special assessments levied as of the 7~ date of this Purchase Agreement. 72 [StdRe one:] I~"JI~[,~I~[]~,~X / SELLER SNAIL PROVIDE FOR PAYMENT OF special assessments pending as of the date of 73 this Purchase Agreement for improvements that have been ordered by the City Council or other governmental assessing authorities. (Seller's 74 provision for payment shall be by payment into esCrow of 1-112 times the estimated amount of the assessments. I As of the date of this 75 Purchase Agreement, Seller represents that Seller has Pot received a Notice of Hearing of a new public improvement project from any 76 governmental assessing authority, the costs of which project may be assessed against the real property. If a special assessment becomes 77 pending after the date of this Purchess Agreement end before the Bate of Closing, Buyer may, at Buyer's option: 7s A. Assume payment of the pending special assessment without adjustment to the purchase pdce of the real preberty; or, 79 B. Require Se0.er to pay the pending special assessment (or escrow for payment of same as provided above) and Buyer shall pay a cerumen- so surate increase in firm purchase price of the real property, which increase shall be the sams as the estimated amount of the assessment; st C. or Dadaro this Purchase Agreement void by notice to Se~er, and ean~,,st money stol be refunded to Buyer. Miller/Davis Co.. SL Paul, MN-Form 1300 (1994; Rev. 1996; Rev. 1997; Rev. 2002) M.S.B.A. Real Property Form No. Minnesota Star~3ard R~ential Purcheae Agreement PURCHASE AGREEMENT / PAGE 2 82 [Strike one:] ~['~E~Jkv61X~ I SELLER SH~LL PAY ON DATE OF CLOSING any deferred real estate taxes (including 'Green 83 Acres' taxes under Minn. Slit. 273.111 ) or special assessments payment of v/nich is required as a result of the closing of l/~is sate. 84 Buyer shall pay real estate taxes due and payable in ~e year follOW~ng ciesi~g and thereafter and any unpaid speC3al assessments payaDle 85 ~erewi~ and thereafter, the payment of which is not othemnse provideq herein, Seller makes no representation concerning the amount of future 86 real estate taxes or of ~uture special assessments. 87 88 8. DAMAGES TO REAL PROPERTY. If the real property is substantially damaged prior to closing, th~s Purchase Agreement shal~ terminate 89 and the earnest money shall be refunded to Buyer. If the real property is damaged materially bur less than substantially prior to closing 90 Buyer may rescind this Purchase Agreement by notice to Seller within 21 days after Seller notihes Buyer of such damage, during winch 91 21-day period Buyer may inspect the real property, and in the event of such rescission, the earnest money shaJl be refunded to Buyer. 93 g. SELLER'S BOUNDARY LINE, ACCESS, RESTRICTIONS AND LIEN WARRANTIES. Selier warrants tnal Du~lmnga. ~ an~ are ent~re,v w~tn,n 97 98 10. CONDITION OF PROPERTY. 99 100 A. Sefier warrants that alt appliances, fixtures, heating and air condihoning equipment, fireplaces 0nciuding meciqantsms, qampers, flues, anal 101 doors), widng, and plumbing used and located on the real properb/will be in working order on ~e Date of Closing. Seller shall remove alt 102 debris, and all personal properbj not Jnolu(fed in this sale from the real property before possession date. Seller has no knowleqge of any to3 Dutch elm disease, oak wilt, or other disease of any trees on the real propert,/. 104 105 B. Setlir knows of no hazardous substances or petroleum products having been placed, stored, or released from or on the real property by 106 person in violation of any law, nor of any underground storage tanks having been located on the real properly at any time, except as follows 107 108 109 11D 112 C. Seller's warranties and representations cenliined in this paragraph 10 shall survive ~e delivery of the Deed or Contract for Deed. Any actmn 113 based upon these, warranties and representations must be commenced within two years after the date on which the buyer closed on the 114 purchase of ~e real property. 115 116 D. Buyer shall have the right to have inspections of the property conducted pdor to closing. Unless required by local ordinance or lending '117 regulahons, Seller does not plan to have the property inspected. 118 119 E. Statutory Disclosure. Pursuant to Minnesota Statutes sections 513.52 - 513.60 (effective January 1, 2003,!, Seller must provide a whiten 120 disclosure (see (1) below], or Buyer must have received an inspection report [see (2) beiowJ, or Buyer and Seller may waive the written 121 disclosure requirements [see (3) below]. 122 123 Minnesota Statutes Section 513 37, Subd. ';'. LIABILITY. A seller who fails to makc a disclosure as reqmred by sections 513.52 to 513.60 and w~ aware 124 the condition of the real propert7 is liable to the prospective buyer, A person injured by a violation of this sectmn rnav bnng a cavil action and recover 125 damages and receive other cquitable relie£as determined by the courL An action under this subdivision must be commen~ed within two years after the date 126 on which the prospective buyer closed the purchase or transfer of the real propert7. 127 128 S~lect e~ly one of thesa three:] 129 ~ (1) Seller's Disclosure, Seller has provided a written disclosure to Buyer. A copy of Seller's disclosure is attached. Seller shall correct in 130 writing any ioaccurecies in the disclosure as soon as reasonably possible before olosing. 132 Minnesota Statutes Section 513.55. GENERAL DISCLOSURE REQUIREMENTS. 133 Subdivision 1. CONTENTS. 13~ (a) Before signing an agreement to sell or transfer residential real property, thc seller shall makc a written disclosure to thc prospective buyer Th~ 135 disclosure must include ail material facts pertaining to adverse physical conditions in thc propcr~ of which thc seller is aware that could adversely and 136 significantly affect: - 137 ([) an ordina~ buyer's usc and en. ioyment of thc property; 6r, 138 (2) any intended use of the property of which the seller is aware. 139 Co) Thc disclosure must be made in good faith and based upon thc best of the seller's knowledge at the time of the 140 141 Minnesota Statutes Section 513.58. AMENDMENT TO DISCLOSURE. 142 Subdivision I. NOTICE. A seller must notify thc prospective buyer in writing a~ soon as reasouabiy possible, but in any event before closing, if the sci 143 learns that the seller's disclosure required by section 513.55 was inaccurate. 144 Subdivision 2. FAILURE TO NOTIFY; LIABILITY. A seller who fails to notify the prospective buyer of any amendments to thc initial disclosure required 145 under subdivision I is liable to the prospective buyer as provided in section 513.57. 146 147 [] (2) Inspection ReporL Buyer has received an inspection report by a qualified third-party. If a copy of the inspection report Is provided to 14s Seller, Seller shall disclose to Buyer matenal facts known to Seller that contraclict any information in the inspection report. 149 SO Minnesota Statutes Section 513.56 Subd. 3. INSPECTIONS. 151 (a) Except as provided in paraBraph (b), a seller is not required tu disclose information relating to the physical condition of thc real property if a w~lten 152 report that discloses the information has been prepared by a qualified third puny and provided to the prospective buyer. For purposes of this paragraph. 153 "qualified third party" means a federal, state, or local governmental agency, or any person whom the seller, or prospective buyer, reasonably believes has 154 · the expemse necessary to meet the mdust~ s~andards of practice for thc type of inspection or investigation that has been conducted by the third puny tn 155 order to prepare the wtit~-n reporL 156 (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 157 paragraph (a) ifa copy of the repo~ is provided to the seller. 158 [] (3) Waiver of Disclosure. 159 160 161 Minnesota Statutes Section 5]3.60. WAIVER. The written disclosure required under sections 5[3.52 to 513.60 may be waived if thc seller and thc 162 prospective buyer agree in writing. Waiver of the disclosure required under sections 513.52 to 513.60 do~s not waive, limit, or abridge any obligation for 163 seller disclosure created by any other law. 165 Seller end Buyer waive the written disclosure required under sections 513.52 to 513.60. 166 167 toe SELLER; BUYER; 169 By: Its: W. Peter Enck, President, New Hope EDA 17o New Hope Alano Group, Inc. 172. SELLER; 173 BUYER; Daniel J. Donahue, Executive Director, New Hope EDA Miller/Davis Co., St. Paul, MN-Form 1300 (1994; Rev. 1996; Rev. 1997; Rev. 20021 M.S.B.A. Real Proper~¥ Form No. PURCHASE AGREEMENT / PAGE 3 MinneSOta Standard Residential Purchase Agreement t74 O~er Wan t~e warranties and mp~en~ons ma0e in ~is ~a~g~ph 10, ~e ~ro~ ts ~ing sold 'AS IS" w~tn no exDress or 175 repre~n~fi~s or ~n~ by Seller as to physic{ ~i~ons, ~uati~ ef ~caon, ~mansh~p, or fimess for any ~a~cu ar 0umOSe 176 pa~g~ph ts not int~ded ~ ~ive o~ limit any 0rovisi~s of Minn. S~t, CnaD~r 327A.) 177 ~78 11. DISCLOSURE OF NOTICES. Seller has not m~ve~ any no~ from any govem~n~ aumonty as to violation of any ta~, or0mance 179 regulaaon affe~ng ~e rear p~. If ~ rea{ pr~ is subiect to mstd~ve ~venan~, Sailer has not re~weQ any noa~ from any pemon as 180 to a brea~ of ~e ~venan~. Seller has not re~ive0 any no~ ~om any govemmen~ au~on~ ~n~mmg any e~t~e~t oomam. ~8~ s~Oal ~xing dis~ct, or rezoning pryings, 182 ' lS3 12. TRUTH4N~OUSING, Buyer a~n~ges re~ipt of ~e Troth-in-Hoeing Diso~ure Repo~ or o~er ~ns~caon rear it r~utr~ ~¥ 1~ muni~pali~ in ~i~ ~e mai pm~ is I~ted. 185 ~ datc ~ ~os~ng. ~1 interest, fuel od, hquiO ~troteum ~86 13. POSSESS~N. Solar ~11 deliver ~e~i~ of ~e pro~ not later ~an 187 gas and all ~ar~s for ~ water, ~ se~r, ete~, and natu~J gas shall ~ prorated ~n ~e pa~es as ol thc ~ 188 ' ...... ' ~ * SEE ~D~ION~ ~1S 19~ ~~~~ Seller. 198 ~9~ 15. TITLE COERECTIONS AND EEMEDtES. Seller shall have 120 days ~om re~iot of Buyers wn~en tit~e ob~ecbons to make titte margetaWe. 2OO U~n re~i0t of Buyers ~e obje~ons, Seller s~alt, ~in ~n (10) OusinesS Oa~. noti~ Buyer of Sellers retention to ma~e ~tle ma~etaO~e w~t~ 20~ t~e 120 day ~n~. Liens or en~mbmn~s for l~quidated a~un~ whi~ ~n ~ released by paymem or es~ from ~r~s of ~os~ng shai~ ne~ 202 delay ~e dosing. Cure of ~e defe~ by Setier sha[[ ~ r~s~abte, ditigent, and ~rompt. PenO~ng ~ect~on of ~tie. a~t ~yments require0 hereto 2~ and the ~osing shall ~ ~ A. If nofi~ is given and Seller makes fl~e marge~ble. ~en u~n present,on to Buyer and proposed len0er of documen~t~on establishing mat 205 rifle ~as ~n made mame~bte, and if not objected to in ~e same ~me and manner as t~e onginat ti~e oO~e~ons, me ctosmg s~a~ ta~e O~ace 20~ ~in ten (10) 0usiness aays ~ ~ ~e sche~ute0 O~in~ date. ~i~ever ~s later. 207 ~. ~f ~ ~s given and Seller pr~eds in g~d fai~ to make ~Ue margeta0te Out ~e 120 Oay pen~ exo,res w~t~out tiUe being maOe mar~etaVte 208 Buyer may declare ~is Pur~e Agr~ment voi~ by no~ to Sel~er. nei~er pady sna, De ~iabde for ~amages nereun0er to the ot~e~ ant 209 earnest money shell ~ refunded to Buyer. 210 C. If ~ller d~s not give ~ti~ of inten~on to ~ke ~e ma~e~ble, or if noa~ is given but ~e 120 0ay pen~ expires wi~out aaa ~ng made 211 mame~ble due to Sellers ~ilum to prod in g~ ~i~, Buyer may s~k, es ~i~ed by law, one or more of ~e foll~ing: 2~ 2 1, Proud to ~osing ~out ~iver or me~er in ~e ~e~ of ~e objecbons to ~e an0 ~out waiver of any r~ies, an~ may: 213 {a) S~k ~amages, ~s~, and reasona~e la~e~s ~s from Sel~er as ~i~ed by law {oa~ges under ~is subparagraph (a) shall be 214 limited to the ~st of ~nng objecaons to fi~e, and ~nsequenaa~ aamag~ are exau~ed); or 215 {D) Undergo precedings to ~ffect ~e obj~aons to ~e; 216 2. Res~ssion of ~is Pur~a~ ~r~nt by no~ as provide~ herein, in ~[~ ~ ~e Put.asa ~reement snaJ~ ~ null ana vo~ and ail 217 earnest money pa~d shall be re~naed to Buye~ 218 3. Damages ~om Seller t~e~er ~ ~s~ and masonabJe la~efs fees. as ~i~ed by law; 2~9 4. S~dfic ~do~an~ ~in six m~s ~er su~ right of a~ arises. ~0 D. If 6fie is ma~e~bie, 0¢ is ~de ~e~ble as provided herein, and Buyer Oe~ul~ in any of t~e ag~ements herein, Seller may elect either 22~ the following opaons, as ~i~ by law: ~2 1. ~1 ~is ~n~ as pm~ by ~te and m~in ~1 ~n~ ~ ~e~r as tiqu~at~ ~s. T~ ~es a~ ~r ~ntent~on ~t any no~ ~ ~n p~uant to ~s ~n~ is a ~n ~t ~, dod ~y ~ pmsen~ for ~nt ~ffis~nO~ng ~n~llabon; 224 ~. ~k s~ ~do~n~ ~in six ~n~ a~r su~ fight pi a~on adses, in~i~ ~ and ~a~na~e le~e¢s ~s, as ~i~ by law. ~5 E. Jf ~e is ~e~e. ~ is ~e ~e~ as ~ ~min, and Sel~ oe[aul~ in any o~ ~ ag~nts ~rein, Buyer may, as ~ by law ~6 1. S~k damages ~m Se~r ind~ng ~s~ a~ reasonable la.ers 227 2. S~k spedfic ~d~an~ ~in six m~s a~r su~ ng~t of action a~ses. ~8 ~9 16. NOTICES. NI ~fi~s r~ui~ herein shall ~ in w~ng and delivered ~rsonally or mailed to ~e aOdress as shown at Paragrap~ I above 230 if ~iled, am effe~ve as of ~e date of mailing. 231 232 17. SUBDIVISION OF ~ND. If ~is ~le ~nsa~t~ or requires a subdivision of land owned by Seller, Seller shall pay all 5ubdivismn expenses and 233 ob~in all ne~ssa~ govemmen~l approvals. Seller wa~n~ ~at the legal des~paon of ~e real pro~ ~0 be ~nveyed has ~en or wdl be 2~ appmv~ for re~ing as of ~e Date of Closing. 235 236 18. MINNESOTA ~W. T~is ~nEact shall be governed by ~e laws 0¢ ~e S~ta of Minneso~. 237 238 19. WE~ DISCLOSU~. [C~k o~ of the ~9 ~ ~ller ~s ~t Seller d~s not ~ow of any wetls on ~e real pro~e~. 240 ~ Wells on ~e mai pr~ are disposed by Seller on ~e a~ed Well Disclosure fo~. 241 242 20. SEWAGE ~TMENT SYSTEM DISCLOSURE. 243 [Chec~ either A or 8:] 2~ ~ A. ~ller ~fies ~at se~ge generated at ~e pm~ g~s to a fa~li~ peri,ed by ~e Minneso~ Pollubon ConSol Agen~ {1or 245 ex~e, a ~ or munidpal sewer sys~m). 246 ~ B. Seller ~fies ~at se~ge generated at ~e pro~ a~s not go to a ~lt~ pe~i~ by ~e Minneso~ Polluaon ConSol Agency 247 and Selle¢s Disaosure of Individual Se~ge T~nt System is a~ (a~ fo~). 2~ [Check eilher C or D:] 249 ~ C. Seller d~ not know if ~ere is an abandon~ individual se~ ~a~ent system on ~e pro~. 2~ D. Seller kno~ ~at ~ere /stdke one:] ~ I are no a~nd~ed individual se~ge ~ea~ent sys~ on ~e prope~ If Seller 251 ~ ~is~ ~ exis~ ~ an aband~ed individual ~age ~a~t s~t~ on ~e ~, ~en Min~o~ law r~uires that the 252 I~a~ of ~e system ~ dis~ to Buyer ~ a map. [Attach Seller's Disclosure of individual Sewage Traatmen~ System with ma~ 253 complet~.J 2~ 21. ~D PAI~ DISCLOSURE. ICh~k one of the following;] 255 Seller mpr~en~ ~at ~e ~elling ~ ~ on ~e real prope~ in 1978 or la~r. 256 ~ ~ller m~en~ ~at ~e dwelling was ~ns~ed on ~e mai pm~ ~f~e 1978, (If su~ housing is I~ted on the real prop- e~y, 257 a~ed and made a pa~ ¢ ~is Pur~aee Agr~ment is 'L~ PAI~ ~DENDUM FOR HOUSING CONS~UCTED BEFORE 1978' ) 2~ 259 ~. ~NDS, SNORE~ND, ~D FLOOD P~N CONCERNS. Cu~enUy ~e law d~s not require Seller to dJs~ Sellers knowl~ge, if 260 any, of ~e ~isten~ of ~aands, sh~land, ~ fl~ p~in on or a~ng ~e mai pro~. If Buyer has not already invesagatad ~ese [Ch~k t~e ~x if the following p~Vt~n ~ 261 ~ms, Buyer ~t ~nt ~ in~ude Sellers dishfuls ~arding ~e ~n~ms. o~ies co ~s Pu~ha~ ~{:] ~ ~2 TO ~UECH~E AGEEEMENT: ~NDS, SN~D AND FLeD P~IN DISCLOSURE, M.S.B.A. Real Pr~ Fo~ No. 8 (1997), is ~ indud~ as an addendum ~ ~is Pur~ase Agr~n[ 2~ 265 23. SE~EE'S AFFIDAV~. At ~osi~, ~fler shall s~p~m~t ~ wa~n6es and re~esen~ons in ~is Put.asa Agr~ment by exerting and ~6 delivenng a Minne~ Unifo~ ~yan~ng Blank [F~ No. 11~M, 117-M, or 11 ~M] Affidavit of Seller. 267 Miller/Davis Co., St. Paul, MN--Form 1300 (1994; Rev. 1996; Rev. 1997; Rev. 2002) M.S.B.A. Real Property Form No. Minnesota Standard Residential PurcYmse Agreement PURCHASE AGREEMENT / PAGE 4 268 24. CLOSING. Closing shall be at the office of Seller's lawyer, Buyer's tit~e insurer, or at some other mutually agreeable location. 269 270 [State otherlocation:] New Hnpe Cin., Hall_ 440 ] Xylnn Avenue Nnrth. New Hope Minne~nta 55428_ 271 At ctosing, Seller and Buyer shall disctose tYmir Social Security Numbers or Federal Tax Identification NumDers for the puq:)oses of completing 272 state and fe0eral tax forms. 273 274 25. ADDITIONAL TERMS: * 14. EXAMINATION OF TITLE. Buyer shall obtain, at Seller's expense_ a Commi~ne~[ for 275 Owll~.r~s~Policy of Title Insurance nn a current AI.TA form iss~ensed io~3.~ttc-title insurance, in IMLmneso[a 276 Seller shall be responsible for payment of those costs necessary to prepare such Cnmmitment. including .burn.o[ limited 277 abstracting fees name Search fees~ service charges: etc Buyer shall pa3' the premlum_f~ the f])A~xter'xPoltcY of Title [nsurm~cc. 278 Buyer shall have ten (10) business days after receipt of the Commitment for Title Insurance to provjak Seller wifia a cop3 ol thc 279 Commitment and written objections Buyer ~hall be deemed to have waived an5' title objections not made within Rm. te.l~101 280 period above_ except that this shall not operate as a waiver of Seller's covenant to deliver a statutor3~'i~:r;m['3 ~Deed_ un~es~ 281 Warren ,ty Deed is not specified above. If Buyer obtain~ title insurance_ Buyer is not waiving ~e right _to Ob[~tll a good 282 marketable title of record from Seller. 283 284 CLOSING COSTS. Cost to he paid by Seller shall also include the Minnesota State Deed Tax. all recordine £ee,,~m record 285 marketable title in name of Fluyer ** 286 287 26. ADDENDA. Attached are 3 acidenda which are maclea part of this Purchase Agreement. 288 289 27. TIME IS OF THE ESSENCE. Time is of ~e essence for all provisions of this Purchase Agreement. 290 291 28. MULTIPLE ORIGINALS. Seller and Buyer have signed [number] 3 originals of this Purchase Agreement. 292 **Seller acknof~ledges and agrees it shall be responsible for all costs to seal the 293 294 the water well, if any, on the property prior to closing. Seller agrees it will provid 295 B,uyer~ wi~h a sealing~record or a~fidavit that the water well has been legally sealed an 296 abandoned. The aff~av£t shall be prepared by a licensed water well contractor as required by the Minnesota Department of Health and provided to the City prior to closin 297 I THIS IS A__LEGALLY BINDING CONTRACT. BEFORE SIGNING, CONSULT A LAWYER. Minnesota law permits licensed real estate t 298 I brokera and.sales agents to prepare purchase agreements. No recommendation or representation may be made by any real estate I 299 broker or sales agent as to the legal sufficiency, the legal effect, or the tax consequences of this contract. These are questions for J 300 your lawyer. I agree to sell the property for the price and terms and conditions I agree to purchase the property for the price and terms and set forlh above, conditions set forth above. SELLER: BUYER:. By: Its: (~ate) W. Peter Enck, President (ante; New Hope Aloud Group, Inc. New Hope EDA SELLER; BUYER: (date) Daniel J. Donahu¢, Executive Director (dale) New Hopc EDA This Purchase Agreement was prepared by: Jansen & Sondrall, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, Minnesota 55428 Telephone: (763) 424-8811 Facsimile: (763)492-5193 Others who will assist Seller or Buyer with this t~ansaction: Lawyer For Buyer Telephone: Facsimile: Stevcn A. Sondrall (763) 424-8811 (763) 493-5 ~ 93 Jensen& Sondrall, P.A. 8525 Edinbrook Crossing Suite 201 Brooldyn Park, MN 55443 (763) 424-8811 103391 Listing Agent and Broker for this transom!on are: Telephone: Facsimile: N/A Selling Agent and Broker for this ~r~aciion are: Telephone: Facsimile: N/A Miller/Davis Co., SL Paul, MN-Form 1300 (1994; Rev. 1996; Rev. 1997; Rev. 2002) M.S.B.A. Real Property Form No. 1 Minnesota Standard ResMential Purcttase Agreement PURCHASE AGREEMENT / PAGE 5 Buyers or Lenders Td. le Insurer: Telephone: Facsimale: Old Republic Title Insurance Company (612) 371 - 111 I 400 Second Avenue South Minneapolis, Minnesota 55401 Miller/Davis Co ~' $! Paul MN 651-~42.1988 ~t~il~l~' Form 1519Y ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS This fo~ approv~ by ~e Mmneso~ ~s~a~on of R~LTOR~, ~ich dis~a~ms any tiabili~, arising Out of use or misuse of ~lS fo~ ~ 2000, Mmneso~ ~oc;at~on of REALTORS~, Eema M~ Date Page _ Addend~ to ~c~e Agreement be~een p~es ~ted ~04. __ pertaining to ~e purchase and sale of~e pr~e~ at 7615 Bass I,ake Road New ~ope: Minnesota 55428 Section 1: Lead Warning Statement Evew purchaser of any inter~t in residential real prope~, on which a r~iden~al dwelling ~.~¥ built prior to 1978. ~¥ not,tied tha: such properS, may present ~posure to lead flora lead-b~ed paint that may place young children at risk qf developing iea,i pogoning. Lead poisoning ~n young children may produce pe~anent neurological damage, includtng learning disabd~tw,; reduced intelligence quotient, behavioral problems, and impaired memoo'. Lead pogomng also poses a particular rtsk to pregnant women. The seller of any interest in residential real properO' ts requtred to provide the b~ver ,'tth any mJbrmatwn on lead-based paint h~ards ~om r~k assessmen~ or inspectio~ in the seller~ possession and not~' the buyer of a~v known lead-based paint hazards. A risk assessment or i~pection for possible lead-based paint h~ards ts recommended?lot to purchase Seller's Disclosure (initial) ~ (a) Presence of lead-based paint on,or lead-based paint h~ (check one below): ~ ~o~ lead-based paint ancot lead-based paint ha~r~ are present in ~e housing texplam). Seller has no ~owledge of lead-based paint an&'or lead-based paint hazards ~n the housing. ~ (b) Recor~ and r~ons available to ~e seller (check one below): ~ Seller has provided ~e p~chaser wi~ all available records ~d repons pertaining to lead-based palm and or .lead-based paint h~ m ~e housing (list docmenm below). ~ Seller ~s no r~ons or recor~ peking to lead-b~ed paint ~or lead-based paint h~ar~ m ~e hou~'{~7 Purchaser's Ac~owledgment (initial) ~ (c) ~chaser ~s received copies of all ~fomfion listed ~der (b) above. ~ (d) P~chaser has received ~e pmphlet Protect )bur Family from Lead in )bur Home. ~ (e) P~chaser has (check one below): ~ Received a 10-~y oppo~niw (or mu~lly agreed upon period) to conduct a risk assessment or inspection tbr · e presence of lead-b~ed paint ancot lead-based paint ~ (If checked, see Section II below); or ~ Waived ~e oppo~ to conduct a ~sk ~sessment or inspection for ~e presence of lead-based paint an&or lea~ased prat ~r~. Real Estate Licensee's Ac~owledgment (initial) N/A (0 Real estate lite,ce has ~o~ed ~e seller of ~e seller's obliga~om under 42 U.S.C. 4852(d) and is w~ of licensee's res~mibili~ to ensure compliance. Certifi~tion of Accuracy ~e followNg pmies have reviewed ~e ~fomtion above ~d ceni~, to ~e best of ~eir ~owledge, ~at ~e inlBrmation provided by ~e signatow is ~e ~d accurate. By: Its: W. Peter Enck, President, New Hope EDA Seller New Hope Alano Group, Thc. Date Purchaser Date Daniel J. Donahue, Executive Director, New Hope EDA Seller Date Purchaser Date Real Estate Licensee Date Real F-~ta_te Licensee Dah- ~C~(~.~gzaey (Initial only if first box under Pnrehaser's Acknowledgment letter (e) above is chsa)k~ ~~tr. act.is contingent upon a risk assessment or an inspection of the~nn~property for the presence o ased paint and/or lead-~hazards to be conducted at the purchaser's expense. The asseSsment or inspecti e completed within .t~en_ (~10~, ,~lela~days after acceptance of the Purchase ARreement. This c ncy shah be deemed removed and th porcaascr dchvcrs to seller or real c-~'g~i~.gl3sce assisting or ~°~s ~tncal't~el ehalf of Milter~Daw$Co ~' St PauL MN 651-642-1985 ~"Form 1515WD (Re, ]0 WELL DISCLOSURE STATEMENT Thts form approved by ate Minnesol~ Assooabon of REALTORS~. whict~ disoalms any Iiabihty arising out of use or mmuse of bhts form. © 2003, Minnesota Associat~3n of REALTORS®. Eclma Mt,; 1. Date 2. Page 1 of _ . Pages: THE REQUIRED MAP IS 3. A'CrACHED HERETO AND MADE A PART HEREOF 4. Minnesota Statutes Sec. 1031.235 requires that before signing an agreement to sell or transfer real property, Seller 5. must disclose information in writing to the Buyer about the status and location of alt known wells on the property. Tins 6. requirement is satisfied by delivering to the Buyer either a statement by the Seller that the Seller does not Know of 7. any wells on the property, or a disclosure statement indicating the legal description an0 county, and a map snowing 8. the location of each well. In the disclosure statement the Seller must indicate, for each well, whether the welt ~s in 9. use, not in use or sealed. 10. Unless the Buyer and Seller agree to the contrary, in writing, before the closing of the sale, a Seller who falls to 11. disclose the existence or known status of a well at the time of sale and knew or had reason to know of the ex~stence 12. or known status of the well, is liable to the Buyer for costs relating to sealing of the well and reasonable attorney tees 13. for collection of costs from the Seller, if the action is commenced within six years after the date the Buyer closed tr~e 14. purchase of the real property where the well is located. 15. Legal requirements exist relating to various aspects of location and status of wells. Buyer is adwsed to contact 16. local unit(s) of government, state agency, or qualified professional which regulates wells for further information about 17. these issues. 18. Instructions for completion of this form are on the reverse side. 19. PROPERTY DESCRIPTION 20. Street Address 7615 B~_qs 1 aka Road New Hope 5542~ - H.nnepm City Zip Coun~ 21. LEGAL DESCRIPTION: .... 22. ~[he North 202_2 feet of the I~a_qt 150 feet of the We~t gOO feet of Lot 39, Anditor"a Ru½division No 226_ hl. ennepin Count3.. 23. Minnesota. - 24. 25. WELL DISCLOSURE STATEMENT 26. (Check the appropriate box.) 27. [] The Seller certifies that the Seller does not know of any wells on the above described real property. 28. (If this option is checked, then skip to the last line and sign and date this statement.) 29. [] The Seller certifies that the following wells are located on the above described property. 30. MN Unique Well Year of Well IN USE NOT IN SEALED 31. Well No. Depth Const. Type USE 32. Well1 ..... [] [] ~ 35. NOTE: See dafinition of terms "IN USE," "NOT IN USE," and "SEALED" on lines 83-92. If a well is not in use, 36. it must be sealed by a licensed well contractor or a well owner must obtain a maintenance permit from the 37. Minnesota Department of Health and pay an annual maintenance fee. Maintenance permits are not 38. transferable. If a well is operable and properly maintained, a maintenance permit is not required. 39~ OTHER WELL INFORMATION 40. Date well water last tested for contaminants: Test results attached? Yes~-"-} Nor"--~ 41. Comments: 42. Contaminated Well: Is there a well on or serving the property containing contaminated water? · Yes[-'~") No[---~ 43. SEALED WELL INFORMATION 44. For each well designated as sealed above, complete this section. 45. When was the well sealed? 46. Who sealed the well? 47. Was a Sealed Well Report filed with the Minnesota Department of Health? Yes ~ No~-'-~ 48. MAP 49. Complete the attached MAP showing the location of each well on the real property. 50. This disclosure is not a warranty of any kind by the Seller(s) or any Licensee(s) representing or assisting any 51. party/les in this transaction, and is not a substitute for any inspections or warranties the party/ies may wish to obtain. 52. CERTIFICATION BY SELLER 53. I certify that the information provided above is accurate and complete to the best of my knowledge. New Ho~e Alano Group, ~nc. 54. By: Its: (Sei~er or Deslgnamd 'Representmtve) (Date) (Seller or Designated Representative) (Date) 55.BUYER'S ACKNOWLEDGMENT 56. }V~. P~t.er Enck, President, N~w Hope EDA Daniel J. Donahuc, Executive Director, N*w Hope EDA uyer) (Date) (Buy~) (Date) 57. MN-WDS-1 (10103) ORIGINAL COPY TO ESTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER WELL DISCLOSURE STATEMENT 58. Page 2 of Pages. 59. INSTRUCTIONS FOR COMPLETING THE WELL DISCLOSURE STATEMENT 60. DEFINITION 61. A "well" means an excavation that is drilled, cored, bored, washed, driven, dug, .lettec~, or otherwise constructed ,f me 62. excavation is intended for the location, diversion, artificial recharge, or acquisition of groundwater. 63. MINNESOTA UNIQUE WELL NUMBER 64. All new wells constructed AFTER January 1, 1975 shoul0 have been assigned a Minneso[a unique well number D) 65. the person constructing the well. If the well was constructed after this date you should have the unique well numDer m 66. your property records. 'If you are unable to locate your unique well number and the well was constructed AFTER 67. January 1, 1975, contact your well contractor, if no unique well number is available, please indacate the depth and 68. year of construction for each well. 69. WELL TYPE 70. Use one of the following terms to describe the well type. 71. WATER WELL: A water well is any type of well used to extract groundwater for private or public use. Examptes of 72. water wells are: domestic wells, drive-point wells, dug wells, remedial wells, and municipal wells. 73. IRRIGATION WELL: An irrigation well is a well used to irrigate agricultural lands. These are typically large 74. diameter wells connected to a large pressure distribution System. 75. MONITORING WELL: A monitoring well is a well used to monitor groundwater contamination. The well is typmalty 76. used to access groundwater for the extraction of samples. 77. DEWATERING WELL: A dewatering well is a well used to lower groundwater levels to allow for construction or 78. use of underground spaces. 79. INDUSTRIAL/COMMERCIAL WELL: An industrial/commemial well is a nonpotable well used to extract 80. groundwater for any nonpotable use including groundwater thermal exchange wells (heat pumps and heat loops). 81. WELL USE STATUS 82. Indicate the use status of each well. CHECK ONLY ONE (1) BOX PER WELL. 83. 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 84. that operates for the purpose of irrigation, fire protection, or emergency pumping. 85. 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 86. sealed by a licensed well contractor. 87. SEALED: A well is "sealed" if a licensed contractor has completely filled a well by pumping grout material 88. throughout the entire bore hole after removal of any obstructions from the well. A well is "capped" if it has a metal 89. or plastic cap or cover which is threaded, bolted, or welded into the top of the well to prevent entry into the well. A 90. "capped" well is not a "sealed" well. 91. If the well has been sealed by someone other than a licensed well contractor or a licensed well sealing contractor, 92. check the well status as not in use. 93. If you have any questions, please contact the Minnesota Department of Health, Well Management Section at (651) 94. 215-0819 (metropolitan Minneapolis-St. Paul) or 1-800-383-9808 (greater Minnesota). 95. ORIGINAL COPY TO LISTING BROKER; COPIES TO SEE.ER, BUYER, SELLING BROKER Mdlerl~)avl$ CO. ~ St. PabL MN 651.*~42-19SE Form 1519SS PRIVATE S~ER SYSTEM DISCCOSURE This f~ apomv~ Oy ~e Mmne~ ~a~on of REALTORS~, whi~ a~s~a~ any l~abih~ a~mg out of use or misuse of ~s to~ ~ 2002, Minneso~ ~s~aaon 0f RE~TORS~. EQma, MN 1. Date 2. Page 1 of ...... Pages: THE REQUIRED MAP 3 A~ACHED HERETO AND MADE A PART HEREOF 4. Prope~ lo~ted at ~ 7615 B~oad Ne~v Hope. M~e~ - - 5. in the CiN of_ ~ope ~ CounW of ~ Hennepin State of N~es~ , legally OescnOeO 6. a~ched sh~t (fflc "Pmpe~"} The No~h 202.2 feet of the Fast 150 feet of the ~~~~~tOr'x 7. ~226. Nennep~oun~'. Mi~e~ 8. This disclosure is not a wa~anN of any kind by the Seller(s) or any L}censee{s) representing or assisting any Pa~yls) 9. transa~on, and is not a substitute for any inspections or wa~an~es the Pa~(s) may wish to obtain. 10. BUYER(S) AND $~LLfiR(S} MAY WISH TO OBTAIN PROFESSIONAL ADVICE AND/OR INSPECIIONS 11. OF THE 8EWER SYSTEM AND TO PROVIDE FOR APPROPRIATE PROVISIONS IN A CONTACT BE~EEN 12. BUYER(S) AND SELLER(S) WffH RE~PECI TO ANY ~VIC~INSPECTIONIDEFE~T$. ~3. SELLER'S INFORMATION: The following Seller disclosure satisfies MN. S~tutes C~apter 115.55 The Seller 0*SClOSes the ~4. following info.at/on with the knowledge that even though this is not a wa~nN, prospective Buye~ may rely on t~ls info~atlon ~5. in deciding whether and on what te~s to purchase ~e Pmpe~. The Seller(s) autOor~es any Agent(s} representing any pa~y~s) 16. in ~is transaction to provide a copy of this statement to any pe~on or en~ in mnnoction with any actual or anticipated sale ~7. the Prope~. 18. Unless the Buyer and Seller agree to the con~a~ in ~tin9 before ~e closing of the sale, a Seller who fails to disclose the 19. existence Or known s~tus of an individual sewage ~ea~ent system at the time of sale. and who knew or had reason to know of 20. the existence or known status of the system, is liable to the Buyer for costs relating to bringing the system into comphance with 21 individual sewage treatment system roles and for reasonable a~orney fees for collection of costs from me Seller. An action under 22. this subdivision must be commenced within ~o years a~er the date on which the Buyer closed the purchase of me real prope~5 23 where the system is located. 24. Legal requirements exist relating to various aspec~ of lo.lion and status of individual sewage treatment systems Buyer 25. advised to ~ntact the local unit(s) of government, state agency or qualified pro~essional which regulates individual sewage 26. treatment systems for luther info.at/on about these issues, 27. The following are representations made by the Seller(s) to the extent of t~e Seller(s) actual knowle0ge. This information ts a 28. disclosure and is not intended to be pad of any contra~ be~een the Buyer and Seller. 29. PRIVATE SfiWER SYSTEM DISCLOSURE (CHECK THE APPROPRIA T~ BOX.) 30. ~ The Seller ceA/ties that the Seller does not know of any private sewer system on or se~mg the a~ove described rea! 31. ~ prope~. (If this option is checked, then skip to the last line and stun an~ date this statement.) 32. '~ The Seller ceA/ties ~at ~e following pdvato sewer system is on or se~ing the above described real prope~ aa. ~E (Check appmp~ate ~o~(es) and indicate Iocatio~on a~ached MAP) ~ ~. ~ptic Tank: ~ with drain field ~ wi~ mound System ~ seepage rank ~ with open eno 35. ~ Sealed System (holdin~ ~nk) cE. J~ Other (Descd~): - 37. Is the ~wer system(s) cu=enQy in use? Yes __ No _~_ 38. NOTE: If 8ny water use appliance, bedroom or bathroom has been added to the Prope~y, the system may no longer 39. comply with applicBble sowaoe treatment laws and rules, 40. Is the sewer system(s) in ~mpliance with applicable sowage ~eatment system laws and ~les? Yes__ No 4~. When was the sewer system ins~lled? Ins~ller Name/Phone: 42 43. Where is ~nk Io~ted? . _ 44. What is ~nk size? When was the ~nk last pumped? How o~en is tank pumped? 45. Where is ~e drain field Io~ted? 46, What is ~e drain field s~e?. 47. Descdbe woA ~do~d to ~e system since you have owned ~e Pmpe~: 48. 49, Date wo~ p~o~by whom: 50. Is sewer system en~rely w/fflin Prope~ ~unda~ lines, including set back requirements? 5~ Is the system shared? How many uni~ on system Annual fee? 52. ~mmen~: 53. On ~is Pmpe~:. ~. Approximate number of: people using ~e sewer system .... showe~baths ~ken per week , wash loads per week 55, Dis~n~ ~n well and sewer system: 56, Have you received any notices from any govem~nt agencies relaang to ~e sewer system? Yes_ _ No 57. If "Yes", s~ a~ch~ no~ce. M~PSSO {~Q2) ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BRIER Form 1519SS IRev. S~021 PRIVATE SEWER SYSTEM DISCLOSURE 58. Page 2 59. Are there any known defects in the sewer system? Yes____ No 60. If yes, please explain 61. - 62. 63. SELLER'S STATEMENT: (To be s~gned at time of listing) 64. I / We, Seller(s) of We Property acknowledge t~e above Private Sewer System DiscJosure and MAP and authorize L~stmg SroKer to Olsclos~ :~.~ 65. information to prospective Buyers. 6(~. (Seller) By: Its: (Date) {Seller) ~Dale New Hope Atano Group, Inc. 67. BUYER'S ACKNOWLEDGMENT: (To be signed at tirne of purchase agreement) 68. I/We, the Buyer(s) of the Property acknowledge receipt of the Private Sewer System Disclosure and agree that no representation 69. regarding the condition of the Private Sewer System have been made, other than those made above. LISTING BROKER AND ?0. LICENSEES MAKE NO REPRESENTATIONS AND ARE NOT RESPONSIBLE FOR ANY CONDITIONS EXISTING IN THE 71. PRIVATE SEWER SYSTEM. 72. (~uyer) W. Peter Enck, President (Date) (Buyer)Daniel J. Donahuc, Exccunve D~rcctor New Hope I~DA New Hope EDA 73. SELLER'S ACKNOWLEDGMENT: (To be signed at time of purchase agreement) 74. AS OF THE DATE OF THE ACCEPTANCE OF THE PURCHASE AGREEMENT, I/We, the Seller(s) of the above Property, agree 75. that the condition of the private sewer system is the same as noted above, including changes indicated above wh~cr~ have 76. initialed and dated. 77. (seller) By: |ts: (Date) (Seller) (Datt~. New Hope Alano Group, Inc. 78. ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER ' Miller/Daws Co. ~ St Paul. MN 651-642~1985 ~1~~' Form 1519 MAP (Rev. 7/94) PRIVATE SEWER SYSTEM AND/OR WELL LOCATION MAP This form apDroved by the Minnesota AssOCiation of REALTORS®. which disc~iaims any liabili~ ansing o~t of use or misuse of this form Date Page I of __ Pages 2. Please use me space below to sketch the real properb/being sold and me ~ocauon of each __ . SEWER SYSTEM WELL on me Prooe~, (check ali t~at appty) 3. Inciude approximate distances from fixed reference points such as streets, buildings and landmarks. 4. Property located at: 7615 l~a_~s Lake Road. New Hope. Minnesota 55428 5. ATTACH ADDITIONAL SHEETS AS NEEDED 6. Seller and Buyer Initial: Seller(s} Buyer(s) 7. MN-P$SWM (7/94) ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER ~X~[TBIT "B" Doresk)/Ken , From: Steven Carlson [StevenC@elsco.net] Sent: Wednesday, January 21,2004 3:05 PM To: Doresky Ken Subject: Re: Alano Relocation Good Afternoon Ken: After I met with Atana Kubiak and Fred Boyes on December 1!, 2003 and explained relocation benefits I saw their site and kitchen area. There is a considerable amount of personal property that will have to relocated. There will also be the disconnection and reconnection of the kitchen appliances and possible electrical work needed at the new location to operate that equipment. Alano is also entitled to $1,000.00 for searching expenses as well as $i0,000.00 for re-establishment expenses. Based on organizations such as Alano that have been relocated in the past I am estimating a total relocation benefit amount of $35,000.00 which would include all moving expenses, disconnects and reconnects, searching and re-establishment expenses. More exact figures can be gathered if needed but could not be completed until Alano was totally relocated to its new location. If there is anything more you need at this point just let me know!! Steve SSeven Carlson Relocation Manager (651)882-0200 Stevenc@elsco.net >>> "Doresky Ken" <kdoresky@ci.new-hope.mn.us> 01/21/04 08:llA/~ >>> Steve, Could you provide me with a short e-mail or memo regarding relocation benefits for Alano. We don't have anything for them regarding relocation and I would like a memo or something for the Council packet. The Council will be discussing this item on Monday, January 26 (request to purchase city-owned property on 62nd, purchase price for their facility and relocation update). If possible, I could use something today. Please let me know the status of this request. Thank you, Ken Ken P. Doresky, AICP Community Development Specialist City of New Hope 4401 Xylon Ave. N. New Hope, MN 55428 Phone: 763-531-5137 Fax: 763-531-5136 kdoresky@ci.new-hope.mn.us JENSEN & SONDRALL, P.A. Attorneys At Law 8525 ED1NBROOK CROSSING, STE. 201 BROOKLYN PARK. ~IINNESOTA 55443-1968 TELEPHONE (763) 424-8811 · TELEFAX (763) 493-5193 DOUGLAS J. DEBNER" e-mail law~:j ensen-sondrall.com GORDON L. JENSEN~ GLEN A. NORTON STEVEN .~ STACY A. WOODS February 5, 2004 Ken Doresky or COUNSEL Community Development Specialist LORENS Q. BRYNESTAD City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 RE: Acquisition of 7615 Bass Lake Road/New Hope Alano Group Our File: 99.11276 Dear Ken: Attached please find for consideration at the February 9, 2004 EDA meeting a proposed Resolution Approving Purchase Agreement attd Relocation Benefits(7615 Bass Lake Road). The resolution and purchase agreement incorporates our agreement with the New Hope Alano Group regarding our acquisition of their property. That agreement is more fully set out in my January 6, 2004 letter a copy of which is also enclosed. Basically, we are agreeing to pay the New Hope Alano Group $465,000.00 based on the Shenehon appraisal. Evergreen has estimated relocation benefits at $35,000.00. Therefore our total cost to acquire the property will be $500,000.00. Please contact me if you have any further questions or comments regarding this transaction. Very truly yours, Steven A. Sondrall, City Attorney, City of New Hope JENSEN & SONDRALL, P.A. sas@jensen-sondrall.com After Hours Extension #147 Enclosure(s) cc: Kirk McDonald Valerie Leone ~ReaI Property Law Specialist Certified By The Minnesota State Bar Association -'Admitted in Iowa P:XAttomeyXSAS\2 City of New Hope\99-11276\1tr K Dorcsky re reso approving PA.doc