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032204 EDA OFFICIAL FILE COPY -- CITY OF NEW HOPE EDA MEETING City Hall, 4401 Xylon Avenue North March 22, 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 March 8, 2004 4. Update regarding development proposal for city owned property at 5501 Boone Avenue North and direction to proceed with preliminary terms of agreement (improvement project no. 749) 5. Discussion and direction to proceed with a purchase agreement for the NCRC development proposal, 4301 & 4317 Nevada Avenue North (Improvement Project No. 734) 6. Discussion regarding 7615 Bass Lake Road (New Hope Alano), GAP request and appraisal proposal (improvement project no. 723) 7. Resolution approving purchase agreements and relocation benefits for acquisition of three properties in the Winnetka East housing redevelopment area (5446 Winnetka, 5512 Winnetka, and 5519 Sumter (improvement project nos. 761,748, and 768) 8. Resolution finding need to acquire title and possession of the Winnetka Avenue East area development properties prior to the commissioner's award, approving the appraisal of damages for each property resulting from the taking and ratifying and authorizing all steps taken by staff to acquire the properties (improvement project no. 724) 9. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes March 8, 2004 Regular Meeting City Hall CALL TO ORDER President Enck called the meeting of the Economic Development Authority to order at 9:18 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 February 23, 2004. Voting in favor: Enck, Cassen, Collier, Gwin-Lenth, Abstained: Sommer; Absent: None. Motion carried. IMP. PROJECT 754 President Enck introduced for discussion Item 4, Resolution authorizing acquisition Item 4 of property at 7901 Bass Lake Road by direct negotiation or eminent domain (improvement Project no. 754). Mr. Kirk McDonald, Director of Community Development, indicated the City received a letter today from Sinclair requesting that the resolution be amended by deleting the reference to the appraisal of the property. Staff has prepared a revised resolution that has been distributed to the EDA. President Enck noted that he met with CVS and the School District regarding property adjacent to 7901 Bass Lake Road and the School District is amenable to considering sale of their property. It was noted that eminent domain will probably not be necessary for the property acquisition at 7901 Bass Lake Road but the passage of the resolution allows Sinclair to utilize some £mancial reinvestment options that would otherwise not be available. EDA RESOLUTION Commissioner Collier introduced the following resolution and moved its adoption 04-12 "RESOLUTION AUTHORIZING ACQUISITION OF PROPERTY AT 7901 Item 4 BASS LAKE ROAD BY DIRECT NEGOTIATION OR EMINENT DOMAIN (IMPROVEMENT PROJECT NO. 754)." 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. ADJOURNMENT Motion was made by Commissioner Cassen, seconded by Commissioner Sommer, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned 9:25 p.m. Re~ectfully submitted, Valerie Leone City Clerk EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development ~ 3-22-04 EDA Item No. By: Kirk McDonald, Director of CD & Ken Doresk¥, CD Specialist By: UPDATE REGARDING DEVELOPMENT PROPOSAL FOR CITY OWNED PROPERTY AT 5501 BOONE AVE. N. AND DIRECTION TO PROCEED WITH PRELIMINARY TERMS OF AGREEMENT (IMPROVEMENT PROJECT NO. 749) ACTION REQUESTED Staff is requesting EDA discussion and direction to proceed with preliminary terms of agreement based on the financial/tax increment financing analysis completed by Krass Monroe, the city's financial consultant. The development proposal is for 2 separate residential buildings on the site, one 41-unit condominium building and one 35-unit affordable rental apartment building. Jim Casserly of Krass Monroe will be in attendance to give an overview of the TIF analysis and representatives from PPL will also be present. POLICY/PAST PRACTICE City goal #2 is to emphasize the maintenance and redevelopment of commercial and residential Properties within the city. The EDA has been addressing the residential portion of this goal through the city's many housing activities, including coordinating with potential developers on the sale and development of city-owned property. BACKGROUND On October 27, 2003, the EDA expressed support for the proposed project and directed staff to coordinate with PPL and Krass Monroe, the city's financial consultant to complete a tax increment financing analysis for the project. Since that time, the following actions have occurred: · Financial Analysis - Krass Monroe has determined that the site will generate approximately $1.6 million of increment. PPL is requesting approximately $1.4 million. The request may change per soil correction estimates. The city's initial investment of 276,764 would be reimbursed with the generated increment. PPL is in agreement with the Krass Monroe analysis and funding proposal. · Appraisal - In order to determine the site value, it was necessary to complete an appraisal of the property. In addition to EDA funds, $100,000 of CDBG was used to acquire the property. The land disposition agreement with Hennepin County has expired and they requested repayment, plus their share of increased value on the site. The city, county and PPL shared the cost of the appraisal. After ~ careful consideration market value of the,. property was determined to be $250,000. To: /.~ ! I c/ k\RFA\PLANNING~Housin~I\5501 Boone\Q - PPL Development Proposal 2.doc Request for Action Page 2 3-22-04 o Market value, assuming stable soils $760,000 Soil stabilization estimate ($507,900) Concluded market value $252,100 (rounded to $250,000) Due to soil stabilization costs the site has not increased in value since acquired, therefore the city is only required to refund the county the original $100,000 in CDBG funding. The county has determined that the current proposal is CDBG eligible. The county has indicated that if the current proposal proceeds, the $100,000 can be applied to the project. · Design - PPL selected a new architect and as a result, many design elements have changed. Please see attached PPL proposal. · Market Study - Maxfield Research completed the initial market study (available for review in Community Development Department). PPL has coordinated with Maxfield to complete the following changes: The revised unit plan is as follows: Building One For Sale Units Bedrooms/Square Footage Sci. ft. Price Income 9 1 Bedroom + Den 895 $130,000 80% Median 3 1 Bedroom + Den 992 $137,500 Market Rate 6 2 Bedrooms 1,000 $143,000 80% Median 14 2 Bedrooms 1,052 $155,000 Market Rate 6 2 Bedrooms + Den 1,277 $166,000 Market Rate 3 3 Bedrooms 1,342 $175,000 Market Rate Building Two Rental Units Bedrooms/Square Footage Rent 17 2 Bedrooms 950 $750 60% Median 10 3 Bedrooms 1,250 $940 60% Median 8 4 Bedrooms 1,540 $1,060 60% Median Total Units - 76 (41 ownership & 35 rental) o Eight rental units are proposed as Section 8 units (30% median). · Increased Taxes - Per analysis of the previous proposal (very similar to current proposal), staff estimates taxes will be increased by over $50,000 per year on the site. The site is currently tax-exempt. · Soils Analysis - PPL hired STS consultants to study to soils at the site. Upon review, STS'determined that the site would require substantial soil correction measures (pilings and structural slab) to accommodate the development. PPL received several bids on piling costs and believed that pilings would be roughly $600,000 per building or $1.2 million. As the appraisal process was underway, the city engineer determined that a structural slab was not needed, reducing overall correction costs. STS and the city engineer agreed on just over $500,000 for soil correction at both buildings. · Funding Applications - PPL has continued to submit funding applications for the project. See attached proposal for additional details. · Property Management Letter of Intent - In their proposal, PPL submitted a management proposal for the subject property as well as additional property owned by PPL in the city. PPL is proposing a full- time property management position at the Boone Avenue location with resident caretakers at both Bass Lake Court Apartments and 7610 Bass Lake Road. Request for Action Page 3 3-22-04 For additional background, please see the October 27, 2003 EDA Request for Action. Staff recommends that the EDA direct staff to coordinate preliminary terms of agreement for the following reasons: · Original EDA site cost of $276,764 will be reimbursed through the increment generated from the proposed $14.5 million development. · The PPL proposal is a CGBG eligible use and Hennepin County would allow the city to utilize the $100,000 in CBG funds from the original land acquisition. · Per the EDA's request, the ownership portion of the proposal was increased 6 units for a total of forty- one ownership units, providing additional needed life-cycle housing options per the city's Life Cycle Housing Study prepared in 1997. · The thirty-five affordable rental units will assist in the replacement of existing affordable units that may eventually be displaced as a result of other redevelopment activities in the city. · Estimated city taxes of $50,000 per year will be generated by this development based on 2004 tax rates. Currently, the property is tax exempt. · Per past EDA comments, the site will be fully utilized. · The proposed use is compatible with the zoning of the property to the east and rezoning of the property would be justifiable. FUNDING Total acquisition cost was $376,764. The city used $100,000 in CDBG funds towards a portion of the acquisition. The original EDA investment was $276,764. ATTACHMENTS · Krass Monroe Memorandum, 3-2-04 · PPL Proposal, 3-22-04 · Appraisal Cover Letter, 3-15-04 · Bonestroo Memorandum, 3-12-04 Provided in 10-27 EDA Request for Action: · PPL Narrative & Proforma · Maps - Location, Zoning, Plat and Storm Water Improvements · Northwest Associated Consultants Memorandum, 9-4-03 · Maxfield Research Market Study - Executive Summary, 7-22-03 (Complete copy available for review in the Department of Community Development) · Site & Building Plans- Condominium Building · Site & Building Plans-Apartment Building · Land Disposition Agreement · Hennepin County Correspondence, 6-18-03 · Appraisal (Complete copy available for review in the Department of Community Development) · EDA Minutes, 6-23-03 · City Council Minutes, 6-10-02 · Business Journal Article, 8-1-03 KRASS MONROE, P.A. ATTORNEYS AT LAW · Greg D. Johnson, CPA · James R. Casserly Email: .qiohnson~,krassmonroe. com Emaih icasserty~,krassmonroe, com www. krassmonroe, cem www. krassmonroe, cem Voice Mail (952) 885-5994 Voice Mail (952) 885-1296 MEMORANDUM To: City of New Hope Attn: Kirk McDonald, Comm. Dev. Dir. Daryl Sulander, Finance Director Daniel Donahue, City Manager. From: Greg D. Johnson, CPA James R. Cassedy, Esq. Date: March 2, 2004 Re: PPL / Boone Our File No. 10048-21 INTRODUCTION Project for Pride in Living (PPL) (the "Redeveloper") is considering the development of 35 Iow income apartment units and 41 market rate condominium units on the city-owned property at 5501 Boone Avenue North (the "Site"). This site has significant soil problems which has been an obstacle to previous development efforts. This development would add 76 housing units valued at $9.25 million to an empty four acre site that has a current estimated market value of under $500,000. THEISSUES Because of the costs involved with correcting and working around the soil problems, and the assistance needed to provide Iow income housing, the Redeveloper has asked the EDA to assist it with a portion of these costs. The issues that need resolution include the following: 1. How would the EDA assist the Redeveloper with defraying these costs; and 2. What is the amount of assistance necessary to facilitate the redevelopment. 8000 NORMAN CENTER DRIVE, SUITE 1000 · MINNEAPOLIS, MINNESOTA 55437-1178 TELEPHONE 952/885-5999 · FACSIMILE 952/885-5969 www. krassmonroe.com ANALYSIS The EDA can provide assistance by establishing a tax increment financing district. The Site appears to meet the qualifications for inclusion in a tax increment financing housing district. · Both rental and owner occupied housing can be included in the same tax increment district provided that the income limitations for each are satisfied. Rental Pro~ect: This is an affordable rental unit project. This assistance is being used for both site correction costs and to reduce the entire cost of the project so the necessary rental rates are at a level their target market can afford to pay. The project consists of 2, 3 and 4 bedroom units. Based on the development pro forma analysis provided by PPL, the rental project appears to need the following assistance: · Land written down to $0 · $500,000 for site improvements and construction costs (e.g. underground parking) Due to the funding requirements imposed by the various public agencies providing support for this project, PPL has requested that the assistance be provided up front. The amount of City G.O. bonds supported by the tax increment generated by the rental project exceeds $500,000. The project is assumed to be started this year with completion in 2005. Owner Occupied Condominium Project: We have been told by PPL that based on the location of the site and market research done by Maxfield Research, that the selling prices are much lower than the project costs. The average selling price for the 41 units is only $140,000. Excluding land acquisition costs, the all-in cost for construction, soil corrections and soft costs is $169,500 per unit. Based on the development pro forma analysis provided by PPL, the condominium project appears to need the following assistance: · Land wdtten down to $0 · $700,000 for site improvements and construction costs (e.g. underground parking). PPL has requested that the assistance be provided up front. The amount of City G.O. bonds supported by the tax increment generated by the condominiums exceeds $700,000. Currently the project is assumed to be completed and sold out in 2006. Other Issues: If only one of the projects were to proceed, the per unit costs would be higher, and additional assistance would be required. There is also an unresolved issue with regard to the CDBG grant that the City previously received. If the City is required to return these funds to Hennepin County, the EDA would need to recover this amount from future tax increment proceeds as reimbursement for its acquisition costs. · Page 2 The Redeveloper has indicated that the soil correction and piling/grade beams needed because of the soil issues are $602,000. Bonestroo has estimated that this amount could be as Iow as $335,000, which would reduce the amount of needed assistance. They are currently reviewing this estimate with the developer. The condominiums suggested selling prices are almost $30,000 less than the costs to construct and market them. If these units could be sold for higher prices than currently projected, the $700,000 of assistance could be reduced. CONCLUSION If the EDA wishes to proceed with the entire project, then the following amounts will have to be made available at the following times: $500,000 for the rental project in the summer of 2004, reduced subsequently by any savings in the actual cost of soil corrections. However, soil correction costs for the condominium project may also have to be expended because of the difficulty of partially correcting the site. $700,000 for the condominium project in the summer of 2005, less any amount previously spent as noted above, and reduced subsequently by (i) savings in the actual costs of soil corrections and (ii)increased sales prices of the units, thus reducing the gap; $376,764, plus interest, to the EDA for the land (less amount of CDBG funds retained). We need to determine the original source of the funds used to purchase the land. Tax increment would then be used to reimburse that fund, plus interest. Since the EDA does not have the cash reserves to provide the full $1.2 million in upfront assistance, it will be necessary to issue G.O. bonds probably in 2005. Our analysis demonstrates that with reasonable assumptions it is possible to recover approximately $1.6 million of City/EDA investment in the project. We look forward to further reviewing this project with you. JRC/GDJ/ Attachments G:\WPDATA~',I~IEW HOPE't21 \CORWICDONALD SULANDER DONAHUE 01 A. DOC · Page 3 PPL $0 Y~ar~ ~,///dir~9 Fun'res Affordable Housing & Community Development Date: March 22, 2004 Address: 5501 Boone AvenUe, New Hope Developer: Project for Pride in Living, Inc. Since our last update we have made significant progress with the finance package for the development. In December, Hennepin County selected the rental side of the project for funding through their AHIF program in the amount of $300,000. In the month of February we submitted applications to the Minnesota Housing Finance Agency for additional Tax Credits and to Hennepin County for HOME program funds for both the rental and ownership components. A table describing funding status is below. We feel that our applications will be very competitive for two reasons: First, the current level of funding in place for the rental component illustrates a strong readiness to proceed. Second, and possibly the most important aspect of this project is the City's support of the project. Boone Avenue Apartments Committed: LIHTC Equity (MHFA) $3,196,019 MARIF $812,625 FHF $150,000 First Mortgage $750,000 Hennepin Co. AHIF $300,000 New Hope: CDBG $100,000 Total: 5,308,644 Applied for: Additional LIHTC Equity $837,673 (MHFA) " Hennepin Co. HOME $450,000 To be applied for: TIF $640,429 Total Development Cost: 7,236,746 We have also made progress on the architectural design of the project. Working with a newly selected architect, Miller Hanson Partners, we have made some design changes that will make the project more attractive, livable, and more cost effective. Affordable Housing & Community Development Employment & Job Training Youth Development Support Services project for Pride in Uving · 1925 Chicago Avenue · Minneapolis, MN 55404 · 612-874- 8512 · FAX: 6 ! 2-872-8995 · ppl@ppt-inc.org · www. ppl-inc.org These new designs do not change the basic parameters of the project--there are still two buildings with underground parking and the bedroom mix and number of units remains at 35 rental and 41 condos--but, we have improved on the exterior elevation, reworked the orientation of the buildings on the site to create more interesting open spaces, modified the interior common spaces to create more livable space, moved stairwells off the ends of the buildings to create light-filled comer units and have changed the rental building from three stories to four in order to decrease the foundation size and save some piling and grade beam expense. Proposed Pricing: The pricing of the for-sale condos has changed a bit because we were able to increase the size of the units. The for-sale units will still be sold at their appraised value (we expect that between 25% and 50% of the units will be affordable to persons at 80% of the Area Median Income, depending on family size). New proposed condo pricing is as follows: # Approximate Proposed Proposed Unit Type sq. ft. Sale Price' AMI % Max 9 lbdrm + den 895 $136,000 80% 3 lbdrm + den 992 $147,000 Market Rate 6 2bdrm 1000 $143,000 80% 14 2bdrm 1052 $155,000 Market Rate 6 2bdrm +den 1277 $166,000 Market Rate 3 3bdrm 1342 $175,000 Market Rate 'For Sale units will be sold at appraised value. Marketing: PPL will issue a Request for Qualifications from Real Estate firms interested in developing proposals, to market and sell the condominium units. We anticipate the marketing team to employ a variety of marketing approaches to achieve the greatest market exposure. This will include the following strategies: · Pre-marketing/reservations: PPL will pre-market the development and take reservations to ensure that the project will be a success. · Marketing Office/Model Unit: As soon as feasible, PPL Will host open houses, staff a marketing office, and develop a model unit for showings. The surrounding neighbors will be notified early on, in order that those closest to the development have an opportunity to see the project. · MLS and ads: PPL has experienced positive results marketing through the MLS (i.e. Multiple Listing Service) and also with site signage and print media. The development has many unique features that will appeal to the population we are targeting. We are proposing a variety of unit designs and sizes that will work well for a variety of household types. Young families with children, extended families, single parents, the differently abled and seniors will all find plans and options that will well serve their needs and lifestyles. Finally, PPL has a strong reputation for providing quality housing at affordable prices and is known for our willingness and skill in serving homebuyers' needs before, during, and after the sale. Requested Action/ Timeline: At this time we request the following: 1. Authorize City Staff to proceed with preliminary Tax Increment Financing terms for agreement so that a term sheet can be presented for approval on April 12th or 26th, 2. Establish a TIF District for the project. 3. Authorize City Staff to proceed with a purchase agreement to be presented for approval on April 12th or 26th, Our goal is to start the Planning Commission process with the April 30, 2004 pre-application meeting to be ready to start construction in August 2004. Attachments: · March 2004 sources and uses. · Property Management letter of intent. · Color rendering and site plan. · CAD elevation. · Building plan. · Unit design. 5501 Boone Ave, New Hope Mamh 15, 2004 USES ~USES Rental (35 units) i Ownership (41 units) =Acquisition $188,000' ~ Acquisition $188,000 Construction $4,855,621 i Construction $5,400,000 Soil Corrections: Piling/Grade Beams $255,000! iSoil Corrections: Piling/Grade Beams $255,000 Construction Contingency $309,000 I Construction Contingency $309,000 Per sf construction cost (72,328 s.f.) $75 i Per sf construction cost (76,424 s.f.) $78 Per unit construction cost $154,846 i Per unit construction cost $145,463 a) Architect's Fee - Design (75%) $110,250: ia) Architect's Fee - Design ( 75% of To $98,625 b) Architect's Fee - Supervision (25%) $36,7501 lb) Architect's Fee - Supervision ( 25% ~ $32,875 c) Marketing $2,0001 !c) Marketing $2,000 d) Surveys and Soil Bodngs $34,000! Id) Surveys and Soil Borings $35,000 e) Payment and Performance Bond Pre~ $32,000! !e) Payment and Performance Bond Pr( $32,000 g) Sewer-Water Access Charge i $54,625 i g) Sewer-Water Access Charge $62,250 h) Appraisal Fee ~ $5,0001 !h) Appraisal Fee $5,000 i) Energy Audit I j i) Energy Audit j) Environmental Assessment $5,0001 Ii) Environmental Assessment $5,000 k) Cost Certification/Audit '~ $20,000~ t k) Cost Certification/Audit $20,000 I) Market Study ! $0 II) Market Study $7,250 m) Tax Credit Fees ~ $62,000i !m) ClC Fees $20,000 n) Compliance Fees = ' in) Compliance Fees o) Furnishinqs and Equipment i $3,000 io) Furnishings and Equipment $3,000 p) Legal Fees J $40,000; i P) Legal Fees $40,000 q) Other - Amhitectural Reimb, etc. I $14,000 !q) Other - Architectural Reimb, etc. $14,000 rl) Other - Holding Costs i $5,0001 .I rl) Other - Holding Costs $5,000 r2) Other Fees - Specify: contingency $15,000 ;r2) Other Fees - Specify: Soft Costs Sub Total $438,625; ~Soft Costs Sub Total $382,000 Developer's Fee ~, $550,000i !Developer's Fee $450,000 I $0i !Marketing (5%) $309,975 Financing Costs i $243,5001 i Financing Costs $243,500 Lease Up Reserve (2mo EGE) ~ $47,000i ILease Up Reserve $0 3refunded replacement reserve ' $80,000! Operating Reserve , $30,0001 l Operating Reserve $0 S. 8 reserve for MARIF units (4) i $100,0001 Additional Operating Reserve (6mo EGI~ $140,0001 Total Development Cost $7,236,7461 I Total Development Cost $7,537,475 Per Unit Cost $206,7641 i Per Unit Cost $183,841 Per Square Foot Development Cost $981 i Per Square Foot Development Cost $102 SOURCES ! I SOURCES Equity: Syndication Proceeds ($0.78) $4,033,6921 I Total Sales Proceeds $6,199,500 MARIF $812,6251 r l BR/Den (12) @ $146,000 $1,752,000 FHF $150,000 J2 BR (14) @ $147,000 $2,058,000 First Mortgage $750,000/ I2 BR end (6) @ $147,000 $882,000 New Hope: CDBG $100,000i 2+den BR (9) @ $167,500 AHIF $300,000 i $1,507,500 Hennepin Co. HOME $450,000! i HOME $540,000 TIF $640,429 TIF $797,975 Total Sources $7,236,746 Total Sources ~ $7,537,475 gap i $01 loan Affordable Housing & 30 Years of BUilding Futur~ Community Development City of New Hope Kirk McDonald, Director of Community Development 4401 Xylon Ave N New Hope, MN 55428 Dear Mr. McDonald: At the New Hope EDA meeting on October 27, Mayor Peter Enck inquired about PPL's future property management presence in New Hope in light of our proposed multi-family housing .development at 5501Boone Avenue. I understand that Mayor Enck attributes much of the success of the Bass Lake Road properties to PPL's on- site management and that he went on-record to say that his support for Boone Avenue is contingent on continued strong property management presence in New Hope. We are very proud of the Bass Lake properties and are delighted to hear that the Mayor has noticed the important contribution our property management team has made to their continued success. Several issues are being addressed in the design of the Boone Avenue Apartments and Condominiums. We have incorporated a manager's office into the design of each of the Boone Avenue Apartments and the Condominiums. While we will have a short-term management roll in the condo until the Home Owner Association is able to select a management company and we will assist with the transition, we believe that PPL and the HOA will be best served if the HOA contracts with another management company. We will work cooperatively with the HOA's management company to further the overall curb appeal and a positive quality of life for residents and neighbors. With the addition of 35 units to our portfolio in New Hope, we are now able to commit to a full-time property management position for the New Hope properties to office at Boone Avenue Apartments. There will also be resident caretakers at Bass Lake and Boone Ave. Recently we have restructured our department, adding a Senior Property Manager level of staffing and administrative oversight. This structure will support the New Hope Property Manager, providing an even higher level of service to the properties. Sincerely^ A Property-Director ~ Cc: Steve Cramer Barbara McCormick Affordable Housing & Community Development Employment & Job Training Youth Development Support Services Project for Pride in Uving · ! 925 Chicago Avenue · Minneapolis, MN 55404 · 612-874- 8512 · FAX: 612-872-8995 · ppll~ppl-inc.org · www. ppl-inc.org ~ i -__ ' ' Fire Lane (Sod~ver Class 5) ~' ......... --~ Gardens ~ ........ ~' ..... ~ Condominium ~ ':~' ~, Rental 3 Stofles Housing + Garage - -- '~ ~ + Garage 41 Residences 35 Residences (~) 3 eR Units ~ Condominium (~) 4 BR Units (20) 2 BR Units ~~~ (1 O) 3 BR Units (12) 1 BR/~n Units (17) 2 BR Units Parking Parking 44 Garage 35 Garage 28AtGrade ~ ~ ~ ....... 35 AtGrade 11 Proof of Parking 9 Proof of Parking Ratio - Actual 2 to 1 : '"~ Ratio:Actual 2 to 1 (Potential 2.25 to 1 ) (Potential 2.25 to 1) Stop B~ne Avenue ~ Concept P~on (~N Boone Avenue Apartments and Condominiums 1"= 50' MIIJ. ER ,,,,~T,~,,s 5501 Boone Avenue City of New Hope Project for Pride in Living BOONE AVENUE RENTAL APARTMENTS - NEW HOPE, MN ~T.~ ~.suBOONE AVENUE RENTAL APARTMENTS - NEW HOPE, MN ~Z ~ Z ~ ~ Z qq BOONE AVENUE RENTAL APARTMENTO - NEW HOPE~ MN Concept Plan Boone Avenue Condominiums 5501 Boone Avenue City of New Hope SHENEHON COMPANY BUSINESS & REAL ESTATE VALUATIONS March 15, 2004 Mr. Ken Doresky City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 RE: COMPLETE APPRAISAL - SUMMARY REPORT OF THE VACANT LAND LOCATED AT 5501 BOONE AVENUE NORTH IN NEW HOPE, MINNESOTA Dear Mr. Doresky: In accordance with your request, we have completed a complete appraisal of the above-referenced property for the purpose of estimating the market value of the fee simple interest. The following Summary Report is intended to comply with the reporting requirements set forth under Standards Rule 2-2Co) of the Uniform Standards of Professional Appraisal Practice for a Summary Report. As such, it presents only summary discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser's file. The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated within. The appraiser is not responsible for unauthorized use of this report. We made a complete inspection of the subject property and have fully identified the real estate in our written report. After careful consideration of the many factors influencing value, it is our opinion that the subject property has a market value, as of March 12, 2004, of: TWO HUNDRED FIFTY THOUSAND DOLLARS .... $250,000 Our concluded value reflects the strong likelihood that the subject will be re-zoned to R4, multifamily residential. Further, we relied on a qualified engineer's estimate of the excess costs attributable to the presence of un.qtable soils and necessary to construct a proposed 76-unit residential complex on the subject (see estimate provided in the Addenda on Page A-39 for details). The derivation of our concluded value is summarized as follows: Market Value, Assuming Stable Soils $760,000 Excess Construction Costs Due to Unstable Soils (see Page A-39) ($507,900) Concluded Market Value $252,100 Rounded to: $250,000 88 SOUTH TENTH STREET ! SUITE 400 I MINNEAPOLIS ] MINNESOTA ', 55403 i 612/333-6533 i. FAX: 612/344-1635 WWW. SHENEHON.COM i E-MAlL: VALUE@SHENEHON.COM Mr. Ken Doresky March 15, 2004 Page 2 Our appraisal does not include any personal property, fixtures or intangible items that are not real property. It is our opinion that a reasonable exposure time of approximately 12 months is appropriate for the subject property at our estimated market value. Please refer to the Reasonable Exposure Time section of this appraisal for details. We have no personal interest or bias with respect to the subject matter of this appraisal report or the parties involved. The appraisal is made subject to certain assumptions and limiting conditions which are listed in this report and conforms with accepted professional, ethical and performance standards of the real estate appraisal practice. If you have any questions or comments after reading this appraisal, please contact us. This report is written with the intent of meeting the reporting requirements of the Uniform Standards of Professional Appraisal Practice, 2004 Edition, not including its "Departure Rule". The undersigned appraiser certifies that he has personally inspected the property and has investigated information believed to be pertinent to the valuation of the property, and to the best of his knowledge and belief the statements and opinions expressed herein are correct and reasonable, subject to the limiting conditions set forth herein. SHENEHON COMPANY Certified to this 15th day of March, 2004 Robert H. Brown Vice President License No. 4000646 Stephen T. Hosch, MAI Senior Vice President License No. 4002903 /sm CERTIFICATION I certify that, to the best of my knowledge and belief: 1. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are nme and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest or bias in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved with this assignment. 4. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the mount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 5. I performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were approved and published by the Appraisal Standards Board of The Appraisal Foundation in 2004. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value and the estimate I developed is consistent with the marketing time noted in the letter of transmittal of this report, unless I have otherwise stated in the reconciliation section. 6. I have made a personal inspection of the property that is the subject of this report. 7. We relied on an analysis of soil conditions performed by STS Consultants, Ltd. in 2003 and a March 12, 2004 estimate of the excess construction costs associated: with unstable soils provided by Bonestroo Rosene Anderlik & Associates. 8. As of the date of this report, Stephen T. Hosch has completed the requirements under the continuing education program of the Appraisal Institute. 9. This appraisal assignment was not based on a requested minimum valuation or specific valuation for approval of a loan. Appraisal fees are in no way contingent upon values concluded by the appraisal f'n-m. I 0. Shenehon Company and/or the appraisers of the subject property have previously prepared appraisal reports of various types of vacant land in the Twin Cities area. Therefore, I have the knowledge and experience to meet the competency provision of the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. 11. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. Robert H. Brown Stephen T. Hosch, MAI Vice President Senior Vice President License No. 4000646 License No. 4002903 Copyright * 2004 by Shenehon Company. All rights reserved. Memo ~ Anderlik & I~1 Associates Engineers & Architects Project Name: 55th and Boone Ave. (PPL Site) Client: New Hope ~'""\~ To: Ken Doresky File No: 34-04-000 From: 3erry Pertzsch Oa~e: March 12, 2004 F.~v ~- Re: Poor Soil Correction Cost ¢c~i ~ "7~{ ~ Remarks: We have had discussions regarding the additional construction cost at the site due to the poor soils. I have also performed a cost estimate based on the building size and an anticipated layout. Since developing the cost estimate, the building layout has changed and a more estimate of the piles has been made by Roger Howley of Miller Hanson Architects. Chris Dettling of Project for Pride in Living has requested and received additional cost information on the additional construction costs necessitated by the poor soils at the site. Based on the revised and actual layout of the buildings, the number of piles increased from 216 for both buildings to 274. Another major change in the cost is that the contractors indicated that there was substantial increase in cost for doing a grade beam instead of a concrete block foundation wall. The additional cost was estimated to be $78,000. In addition to the cost identified in the previous memo dated February 10, 2004, additional cost will be incurred for special inspection of the piling, spot correction of soft spots in the soil and use of flexible pipes or pipe joints inside the building. The following is a summary of the additional cost attributable to the poor foundation soils that for both buildings: Item Cost Piles 274 piles, est. 55 feet long @ $20/LF $301,400 Piling mobilization 10,000 Concrete grade beams 78,000 Increased thickness of slab on grade and base 53,500 Special inspections 8,000 Spot soils corrections 6,000 Utilities 16,000 Bituminous pavement, additional thickness 35,000 Total $507,900 Bonestroo, Rosene, Anderlik and Associates, Inc. www. bonestroo, com ~ St. Paul Office: [3 Milwaukee Office: [3 Rochester Office: ~3 Willmar Office: ~ St. Cloud Office: E] Ubertyville Office: 2335 West Highway 36 12075 N. Corporate Parkway, Ste 200 112 7~ Street NE 205 5th Street SW 3721 23'd Street S 1860 West Winchester Rd, Ste 106 St. Paul, MN 55113 Mequon, WI 53092 Rochester, MN 55906 WiJlmar, MN 56201 St. Cloud, MN 56301 Grayslake, IL 60030 Phone: 651-636-4600 Phone: 262-643-9032 Phone: 507-282-2100 Phone: 320.214-9557 Phone: 320-251-4553 Phone: 847-5486774 Fax: 651-636-1311 Fax: 262-241-4901 Fax: 507-282-3100 Fax: 320-214-9458 Fax: 320-251.6252 Fax: 847.548-6979 EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development 3-22-04 EDA Item No. By: Kirk McDonald, Director of CD & Ken Doresk¥, CD Specialist By: .5 DISCUSSION AND DIRECTION TO PROCEED WITH A PURCHASE AGREEMENT FOR THE NCRC DEVELOPMENT PROPOSAL, 4301 & 4317 NEVADA AVENUE NORTH (IMPROVEMENT PROJECT 734) ACTION REQUESTED Staff is requesting City Council discussion and authorization to proceed with a purchase agreement for the sale of 4317 Nevada Avenue North to the Northwest Community Revitalization Corporation (NCRC) Community Housing Development Organization (CHDO). The property would be incorporated into their proposal to replace 2 blighted single family properties with 6 owner occupied townhomes (1 accessible unit). Attached, please find the proposal. Representatives from NCRC will be in attendance at the meeting and Bob Zagaros, Robbinsdale city council member and NCRC chair may also be present. POLICY/PAST PRACTICE City goal #2 is to emphasize the maintenance and redevelopment of commercial and residential properties within the city. The Council has been addressing the residential portion of this goal through the city's many housing activities, including partnering with non-profit housing developers for the development of property within the city. On a yearly basis, the city allocates CDBG for eligible scattered site housing projects. BACKGROUND Attached, please find the NCRC's proposal to replace 2 blighted single family residential properties located at 4301 and 4317 Nevada Avenue North (city owned property) with 6 affordable owner occupied townhomes on the combined sites. The NCRC's goal was to acquire the privately owned property located at 4301 Nevada Avenue North (acquired in February) and city owned property at 4317 Nevada Avenue North for the construction of 6 affordable owner occupied townhomes (1 accessible unit) on the combined sites. On November 11, 2003, the Council authorized staff to obtain an appraisal of 4301 Nevada Avenue North in order to facilitate negotiation between the 2 parties. Based on this action, the NCRC acquired the property in February 2004. In August 2003, the city completed the purchase of 4317 Nevada Avenue North. The property was purchased using Federal Community Development Block Grant (CDBG) funding intended for scattered site housing projects that primarily benefit Iow- moderate-income households. The NCRC wishes to purchase 4317 Nevada Avenue North from the city for incorporation into this CDBG eligible development. I:\RFA\PLAN N IN G\Housin~\4301\Q-4301 - 17 Development Proposal. doc Request for Action Page 2 3-22-03 On June 23, 2003, the EDA declined a development proposal from Master Development (Franks Nursery site developer) that included the subject property. The proposal was for replacement of the 2 existing blighted homes (4301 & 4317 Nevada N.) with twelve units of market rate townhomes. The developer was willing to reimburse the city for all acquisition costs for 4317 Nevada Avenue North. Also, the developer was desirous of acquiring 4315 Nevada Avenue North for the construction of 6 additional units. The developer was requesting financial assistance of up to $200,000 from the city to facilitate the development. Due to the city assistance requested and the proposed density, the EDA did not support the proposal. When 4317 was initially purchased, the Council raised concerns regarding resale of the property for future redevelopment. In an attempt to balance previous Council density and resale concerns, CDBG funding eligibility requirements, satisfy potential state and local housing funders for city contribution requirements (MHFA & Hennepin County HOME) and desire to redevelop the property, staff recommends the following scenario: · Similar to the most recent Twin Cities Habitat for Humanity project at 6003 West Broadway, staff recommends that the city sell the cleared property to the NCRC for $1 (CDBG contribution of an estimated $100,000). In return the city will realize a significant increase in taxes at the site: Current Property Market Value Overall taxes payable 2004 City of New Hope share 4301 Nevada Ave. N. $130,000.00 $1,309.78 $399.63 (homestead) 4317 Nevada Ave. N. $116,000.00 $1,521.88 $477.63 (non-homestead) Total Current Taxes $246,000.00 $2,831.66 $876.97 NCRC Proposal Property Estimated Market Value Estimated overall taxes Estimated city share Each Unit $205,000.00 $3,209.77 $940.51 Total (x 6 units) $1,230,000.00 $19,258.62 $5,643.06 Overall increase $984,000 $16,426.96 $4,766.09 A portion of the CDBG funds invested in the project would also be returned to the city as program income' upon the sale of the units and the program income could be utilized for future CDBG eligible projects. On November 25, 2002, the Council authorized staff to obtain an appraisal of the 4317 Nevada Ave N (now owned by the City). Also on November 25, the Council requested that staff to contact the adjacent south (4301 Nevada Ave. N.)and north (4415 Nevada Ave. N.) property owners to determine if they were interested in exploring the possibility of voluntarily selling their homes to the city for future residential redevelopment of the combined properties. Up to this point, staff has had limited contact with the owner of 4415 Nevada Avenue North and the NCRC has purchased 4301 Nevada Avenue North. In 1998, the Council passed a resolution approving the City of New Hope Comprehensive Plan Update. In 1999, the Metropolitan Council approved the Comprehensive Plan Update. In the Plan, the city was broken down into several planning districts. The subject property is located in Planning District 10 -east central New Hope bordered by the rail system to the west and north, 42nd Avenue to the south and the City of Crystal to the east. Recommendations for Planning District 10 include: (a) promote property maintenance through private reinvestment, the City's Dwelling Maintenance Code and Scattered Site Housing Program, and (b) actively pursue the redevelopment of the poor condition, Iow-density residential land along Nevada Avenue between 42"d Avenue and 45th Avenue. Request for Action Page 3 3-22-03 RECOMMENDATION Staff recommends that the Council authorize staff to proceed with the development of a purchase agreement for the property for $1 for the following reasons: · The New Hope Comprehensive Plan Update recommends redevelopment of the poor condition, Iow- density residential land along Nevada Avenue North between 42"d Avenue North and 45th Avenue North. · Taxes for the combined site would be increased an estimated $4,766.09 per year. · The density has been reduced from 12 units (Master Development) to 6 units (NCRC proposal). · The NCRC owns 4301 Nevada Avenue North, therefore relocation benefits would not apply. · Both properties are in poor condition and would be candidates for demolition and redevelopment. · The NCRC would develop the property requiring very little city staff time. · The zero lot line townhomes would provide another housing option for New Hope residents. · The units would be affordable to moderate-income first-time owners (80% median income). · The units would be owner occupied. · 1 of the units would be disabled accessible. · CDBG funds allocated to the Scattered Site Housing Program were used to purchase 4317 Nevada. · The project as proposed is CDBG eligible. · A portion of the CDBG contribution from the city would be returned to the city in program income and would be utilized on other future projects. · The NCRC has submitted funding applications to the MHFA and Hennepin County HOME. The applications require city contribution. If the Council authorizes staff to prepare a purchase agreement it will be subject to Planning Commission and City Council development approval. The purchase agreement would be brought in front of the Council again for final approval. FUNDING CDBG funds in the amount of $83,000 were used to purchase 4317 Nevada Avenue North. CDBG funds will be used for demolition and site restoration (following road restrictions, May 17, 2004). ATTACHMENTS · NCRC Proposal Provided in November 11, 2003 Council packet · Location Map, Topographic Map, Section Map & Aerial Map · Rejected Development Site Plan, Comprehensive Plan References & Hennepin County Parcel Data · EDA Minutes, 6-23-03 1 P. ~2×03 MAR-16-2084 14: 0~ Proposal Northwest Community R~vitalization Corporation is proposing the .project at 4301- 4317 Nevada in N.ew Hope as our first project as lead develops. We would be pleased to have the City of New Hope be the beneficiary of our efforts. What' we arc proposing is a 6-unit developm~.tt consisting of 3 twin:homes with zero lot-lines. Five will be two story, 3 bedroom units, the sixth will be a single level, two bedroom, handicapp~ accessible unit. These six units will replace 2 substandard, uninhabitable properties located directly across the street from a neighborhood park. The neighborhood contains several styles of home, s; our propos~ plan will contain design olcmacnt.~ to make our twin-homes unobtrusive. Garages will be to thy re, ar of the prop~es. February 2004, NCR. C purchased the property at 4301 Nevada. We are interested in purchasing the property at 4317 Nevada. This would ensure that the properties, project and dovelopmeat am solely tho responsibility of NCRC. We see several advantages for the city in supporting this project. 1. Two vacant prop=ties will be replaced with 6 now, higher priced units yielding more than $ times the tax value. Combined property taxes in, 2003 for the two properties were $2,831 with an approximate city portion of $974.78 for both including the hom~s~tead tax credit. Based on 2004 tax information the new units would have approximate county taxes of $3,021.78 each for a total of $18,I30.68 for the ©nth'¢ development. City tax portion would be $940.51 each plus $66.84 for the city portion' of thc homestead tax credit.giving a total of $6,044.10 for thc entire project. This is a projected increase of' more than $5,000 per year in additional property tax income for the city. 2. Increase the tax base through neighborhood busings use. People will Spend money in thc community they live in. 3. Provides a step for low-moderate income people between renting and traditional full market homoownership. 4. Efficient use or,ace, more hero,ownership without loss of green space. $. Increase the percentages of homeowners in the area. 6. M~ts th~ City's Comprehensive plan for median density on Nevada 7. We act as the developer with very litfl~ city involvement or need for city staff At present, thc budget for this project is ov= 1.5 million dollars. We have grant proposals out to MHFA and Hennepin County. Our request to MI-~A is for $195,000 and the request to Heamepin County for HOME dollars is $300,000. We are currently working on sev=aI other grants. Attached is the Pro Forms as well as preliminary site plans developed with the assistance of Chris Wilson of. Project for Pride in Living. MAR-16-200~ 1~:03 1 P.03703 We request the following from the City of New Hope as the City centribufion to th.© project: Sell NCRC the 4317 Nevada property for $1 a~er it has been clem:ed. The property was purchased by the city for $83,000 in CDBG funds and would be cleared using approximately $15,000 in CDB~ funds. Our rationale for this is that this is a project whose increased tax revenues will bring in a minimum of $75,000 to the county in the next 10 years and $50,000 to the city. It will r~move 2 blighted properties and will add 6 new households to the community. This would be considered a donation to thc project of $98,000 in CDBG funds and would cover that portion of the projected $102,000 gap. NCRC would be willing to have 4301 Nevada demolished at the same time as the 4317 Nevada property lessening disruption in the neighborhood and allowing possible NCRC oversight of the demolition of both properties. The 4301 Nevada demolition would be at NCRC expense. Northwest Community Revitalization Corporation will also be paying permit fee.~ of approximately $20,000. Permits Demo- $527.5 for 2 C~rad/ng- dependant on square footage Water meters $223.53 ea total $I,341.18 Wat~r/Sewer $85.50 ea.. total $1,026 Park dedication $$00 ea.. total $3,000 Building permit $3,934.89 / rwinhome total $11,804.67 Total $17, 429.35 plus grading and miscellaneous fees. TOTRL P.03 4301-~ ? Nevad~ Ave CHDO Sources Ues~ Format 3/1212004 HARD PROJECT EXPENDITURES Per Unit 6 units Acquisition 35,000 2lO,DOD New ConStruction per 'contract sward 165,000 990.000 ~,% Contin~lenc)/ 8.250 49,500 L~ndscaping 4,000 24,000 Demolition & Site Restoratioa 5.000 30.000 Gradin~l and Site Prep 8,333 50,000 Surveying 333 1.99~8 Holdin~l Costs 700 4,200 Appraisal 500 3,000 Utilities (hook up) - 4,000 24,000 Property Tax, 150 900 Permits & Fees 3,333 20,000 Subtotal - Hard Costs 2~4,600 1~7,598 SOFT PROJECT EXPENDITURES Design 8,000 48,000 CHDO Developr~ent Fee (7%) 18.875 113.252 Engineering .... 600 3,600 Legal 1,000 6.000 Marketing/Realto[ Fees (5% of $180.000) 9,000 54.000 Processing Agent/Consultant 1.250 7,500 Construction Interest 3.500 21.000 Title/Closing 1.200 7.200 Insurance 500 3.000 Subtotal - Soft Costs 43,925 263,552 ITotal Expenditures - Hard & Soft Costs 278,5251 1,671,150I REVENUES IProceeds of Sale ,J 180,000~ 1,080,0-00~ subto~l .... Revenues I 180'000F 't,°8°,°°°l GAP FINANCING CDBG' Reimbursement MHFA ' ' '195,000 HOME Down Payment Assistance 144,000 HOME Construction Subsidy 150,000 New Hope EPA ..... Subtotal Gap Financing 48g,000I PROJECT COST SUMMARY Total Expenditures 278,525 1,671,150 Total Revenues 180,000 1,080,000 Total Gap g8,5,?.5 591,150 Total Gap Financing (HOME, MHFA)**. .81.500 489,000 Gap. .. 17,025 102,150 Purchase Price - Program Eligible Buyer First Mortgage ' ' ' 180,000 1,080,000 Homebuyer Dewnpa)n~ent 1,000 6,000 Hennepin Count~ HOME Second Mortc~a~e 24,000 1,44,000 Subtotal 205,000 1,230,000 "Note: These funds am applied for, but not yet committed We are in the process of seeking other resources / / // /:~ ,/ / / /! " MR~-1~-2004 11:59 I P.09/10 ! , --.;.~ / ..5(... 7 ' ~ / / ~ -- - -.~ -. - - .... '1 .. ~'' ' ,,~ ~ -- ...... ,/ '.' --'-- , ' / /- / / / M~R-15-2004 11:5~ I P.10/10 q TOTRL P. 1~ EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development 3-22-04 EDA Item No. By: Kirk McDonald, Director of CD 6 & Ken Doresk¥, CD Specialist By: DISCUSSION REGARDING 7615 BASS LAKE ROAD (NEW HOPE ALANO), GAP REQUEST AND APPRAISAL PROPOSAL (IMPROVEMENT PROJECT FILE 723) REQUESTED ACTION Staff requests EDA discussion and direction regarding the attached 7615 Bass Lake Road (New Hope Alano) gap financing request and authorization to proceed with an appraisal of 7550 Bass Lake Road, AC Carlson property. The cost of the appraisal (estimated $3,000) is proposed to be shared equally among the city, Alano and AC Carlson. AC Carlson is considering the proposal. Representatives from Alano may be at the meeting. As directed by the Council at the January 26 EDA meeting, staff has coordinated with Alano for submittal of the attached gap financing request. POLICY/PAST PRACTICE City goal #2 is to emphasize the maintenance and redevelopment of commercial and residential properties within the city. The City Council has been addressing the residential portion of this goal through the city's many housing activities, including acquiring property in areas designated for redevelopment in the Comprehensive Plan. BACKGROUND Over the past year, staff has met with the New Hope Alano Group to discuss acquisition of their property and relocation options. On January 26, 2004, the Council approved a purchase agreement with Alano for the appraised value of $465,000 (7-02) and relocation estimate of $35,000. At the meeting, Alano expressed concern about relocating to an affordable property. The Council directed staff to coordinate with Alano for submittal of a gap financing request. The request has been completed and is attached. One of the properties, the former Plymouth Heights Pet Hospital, has been sold. Alano is very interested in both the AC Carlson site at 7550 Bass Lake Road (relocating to Bass Lake Road and International Parkway) and the proposed office condominium development at 42"d and Quebec. Staff will be presenting an update on 42nd and Quebec at the April 12 EDA meeting and is having discussions with both developers on that site. AC Carlson is asking $695,000 for the property, but an appraisal has not been completed. Hennepin County assessment data for taxes payable 2004 values the property at $375,000. I:\RFA\PLANNING\Hou$in~\7615\Q- 7615 Bass Lake Road GaD Financin~ Rec~uest.doc , Request for Action Page 2 3-22-04 On March 15, staff including the director of finance, and city attorney met with Alano to discuss the request. Staff discussed the possibility of a city Iow interest loan similar to that made to Universal Color Lab when they relocated to their current facility. Another option included obtaining a current appraisal of the AC Carlson property. Alano is very interested in the AC Carlson building because it is close to their current location, the 6,000 square foot building size meets their needs, and it is anticipated that a shared parking agreement could be coordinated with the adjacent office building property. The AC Carlson building would be available around September 1. The city anticipates letting Alano remain in their current building until July or August and Alano understands that they would need to find a temporary location in the interim. Staff is proposing that an appraisal of the AC Carlson property be completed so that an accurate sales price of the property could be determined. If the appraisal determined a price less than $695,000, it is probable that the Alano "gap request" will decrease or be eliminated. There are also Several items on the new AC Carlson project/site that the city could assist with to lower the cost of that project (grading/ponding on park property, etc.) which could also be utilized to lower the cost of the purchase of the existing AC Carlson building by Alano. Staff believes that the first appropriate step is an appraisal of the existing property. An appraisal firm would be selected that would be agreeable to all three parties and Alano has agreed to pay one-third of the cost of the appraisal. RECOMMENDATION Staff recommends that the Council authorize staff to proceed with an appraisal of 7550 Bass Lake Road. The cost is proposed to be shared equally among the city, Alano and AC Carlson. Alano has agreed to share the cost of the appraisal. AC Carlson is considering the proposal. FUNDING Because Alano is located in an area where TIF funds can be expended, and this would be part of the relocation costs related to Alano, TIF funds from the East Winnetka TIF District could be utilized for the appraisal cost. During the 2003 State Legislative Special Session, the city's TIF special legislation was passed. In December 2003, the district was approved by the City Council. ATTACHMENTS · Alano Gap Financing Request, 3-11-04 · Hennepin County Parcel Data, Taxes Payable 2004 · EDA Minutes, 1-26-04 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 Kirk McDonald City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 March 11, 2004 Dear Mr. McDonald, At a recent City Council meeting, the issue of our relocation and difficulty in finding an affordable alternative location was discussed. It was suggested that we provide a "gap analysis" to further explain our predicament. The attached spreadsheet is a synopsis of our income and expenses for the last 5 years. As you can see, we are not a wealthy group but our assessment is that we could potentially afford a mortgage of about $109,000. Combined with the $465,000 we would receive from a condemnation or sale of the existing property, that gives us a total budget of $574,000 with which to shop for a new However, all of the sites we have explored thus far are well beyond that budget. The Plymouth pet hospital we looked at would have cost us $672,000 after remodeling and the purchase of an adjacent lot for parking. The A.C. Carlson site is priced at $695,000 and would also require remodeling to suit our purposes (adding a kitchen and dividing the space into meeting rooms). The Frye development project at Quebec Avenue was estimated at $150 per square foot. Our current location is a little more than 6,000 square feet but we think we might do with something smaller if constructed on one level. Assuming a 4,500 square foot building, the Frye development could cost as much as $675,000. As you can see, we find ourselves with a budget consistently and significantly below what the market demands to replace our property. That is the gap that has frustrated our search thus far. If we can further illuminate this issue or if you have any other ideas for us to consider, please don't hesitate to contact us. Sincerely, Building Committee New HoPe Alano Group, Inc. 7615 Bass Lake Road New Hope, MN 55428 New Hope Alano Group, Inc. Relocation "Gap Analysis" Income Statement Average Projected ProForma 99 - '02 2003 Year Income: Member Pledges $ 22,210 $ 22,394 $ 22,400 Room Rents 14,951 14,314 15,000 Coffee Kitty 6,855 6,800 6,900 General Meeting Donations 1,418 1,600 1,700 Net Income from events, book sales, bequests, etc. 1,123 1,358 1,000 Total Income $ 46,556 $ 46,466 $ 47,000 Expenses: Building operating expenses, services & repairs $ 13,478 $ 13,745 $ 12,100 Utilities & Phone 11,916 12,134 13,200 Coffee 3,385 4,613 4,600 Insurance 3,147 2,000 2,000 General & Administrative 3,416 1,722 1,800 Contributions 1,200 1,600 1,600 Conventions 1,321 1,421 1,400 Miscellaneous 535 1,320 900 Interest Expense 723 4,411 Total Expenses $ 39,120 $ 42,966 $ 37,600 Annual amount available for debt service $ 9,400 Debt service coverage ratio 1.20 Maximum annual debt service $ 7,833 Maximum Mortgage @ 6%130yrs, $ 108,878 Equity available from sale of property $ 465,000 Property Purchase Budget $ 573,878 Plymouth Pet Hospital analysis: Gal3 Reduced asking price $ 440,000 Adjacent lot for parking 85,000 Remodelling for meeting rooms 100,000 Clearing trees and paving parking lot 47,000 Total $ 672,000 $ (98,122) A. C. Carlson property analysis: Asking price $ 695,000 Remodelling for meeting rooms 65,000 Total $ 760,000 $ (186,122) Frye Development Project (~ Quebec Avenue Assume 4,500 sq. ft. building Assume $150 cost per sq. ft. Total $ 675,000 $ (101,122) Property Information Search by Street Address Result page Page 1 of 2 Hennepin County, MN www. .us I ~'~i ..... ~ Property Information Search Result The Hennepin County Property Tax web database is updated daily (Monday - Friday) at approximately 9::[5 p.m. (CST) Search By: Parcel Data for Taxes Payable 2004 Property ID: 05-118-21-32-0067 ~DRESS ~I Address: 7550 BASS LAKE RD Municipality: NEW HOPE School Dist: 28:[ Construction year: :[983 Watershed: 0 Parcel Size: 1462 HOUSE or BUILDING Sewer Dist: 02 #: Owner Name: ALTON C CARLSON ET AL '7550 Taxpayer Name ALTON C CARLSON STREET NAME: & Address: 7550 BASS LAKE RD ~(at least first 3 characters) NEW HOPE MN 55428 Bass Lake Road UNIT # (if applicable) ~ost Current Sales Information Sales prices are reported as listed on the Certificate of Real Est~ and are not warranted to represent arms-length transactions. clear i NO SALE INFORMATION ON FTLE FOR THIS PROPERTY. Tax Parcel Description ololololololololo!-~'1~u ~ records per page Addition Name: TETZLOFF :[ST ADDN Lot: 002 Block: 001 Metes & Bounds: Abstract or Torrens: TORRENS Value and Tax Summary for Taxes Payable 2(] Values Established by Assessor as of 3anuary 2, Estimated Market Value: $375,000 Limited Market Value: $375,000 Taxable Market Value: $375,000 Total Zmprovement Amount: Total Net Tax: $13,576.73 Total Special Assessments: Solid Waste Fee: $66.97 Total Tax: $13,643.70 I http://www2.co.hennepin.mn.us/pins/addrresult.jsp 3/17/04 Property Information Search by Street Address Result page Page 2 of 2 Property Information Detail for Taxes Payable Values Established by Assessor as of January 2, Values: Land Market $194,000 Building Market $181,000 Machinery Market Total Market: $375,000 Land Limited $194,000 Building Limited $181,000 Total Limited: $375,000 Qualifying Tmprovements Classifications: Property Type COMMERCIAL- PREFERRED Homestead Status NON- HOMESTEAD RelatiYe Homestead Agricultural Exempt Status 22270 Hennepin County is providing this information as a public service. Tax related questions: taxinfo@~c_o_._he_..n_.._n_e_p_..n_.,_m._n_,.,u.s Need help locating a property on our site? Check out our S~e.a_r_c_h__T_jp_$ Copyright © 2004 Hennepin County, Minnesota I www. Hennepin.us Home I Security/Privacy Statement http ://www2.co.hennepin.mn.us/pins/addrresult.j sp 3/17/04 President 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 02MPROVEMENT 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 ff 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, 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 723 President Enck introduced for discussion Item 8, Discussion regarding 7615 Bass Item 8 Lake Road (New Hope Alamo), purchase price, relocation benefits, and request to purchase city-owned property at 7601-41 62na 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 Alamo) purchase price/appraised value, relocation benefits and request to purchase city-owned property at 760141 62"a Avenue North. He stated New Hope Alano Group is willing to accept the $465,000 appraised value and 'the estimated relocation benefits of $35,000. 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 42na and Quebec Avenue North. Alamo has seriously considered this option, but feel that city assistance in addition to the purchase price amd relocation estimate would be required. Alano is requesting that the city consider selling them the city-owned property at 7601-7641 62"d Avenue North to construct a new facility. New Hope EDA Page 4 January 26, 2004 Staff is seeking Council direction on Alano's reque,sat for financial assistan.c,e relocate to the office condominium development at 42~ and Quebec Avenues morro and their request to purchase the city-owned property at 7601-7641 62na Avenue North. The EDA expressed concern regarding the sale of the property on 62na 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 42na 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 42~/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 Commumty 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 Armory 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. Mr. 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 EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development 3-22-04 EDA Item No. By: Kirk McDonald, Director of CD 7 & Ken Doresk¥, CD Specialist By: RESOLUTION APPROVING PURCHASE AGREEMENTS AND RELOCATION BENEFITS FOR ACQUISITION OF THREE PROPERTIES IN THE WINNETKA EAST HOUSING REDEVELOPMENT AREA (5446 WINNTKEA, 5512 WINNETKA AND 5519 SUMTER (IMPROVEMENT PROJECTS 761,748 & 768) REQUESTED ACTION Staff recommends EDA approval of a resolution prepared by the city attorney approving the purchase of the following properties: · 5446 Winnetka Avenue North: $222,500 & $12,400 maximum relocation differential payment. The owner's appraiser valued the property at $245,000 and the city's appraiser valued it at $200,000. The $222,500 figure indicates the negotiated price taking into consideration the conflicting appraisals. The owners have entered into a purchase agreement for another property for $239,900, therefore the additional appraisal payment is irrelevant. · 5512 Winnetka Avenue North: $147,000 (city's appraised value) & $42,900 maximum differential payment. · 5519 Sumter Avenue North: $199,000 (city's appraised value) & $25,900 maximum differential payment. Moving and closing costs are to be determined by Evergreen Land Services, the city's relocation consultant. Please see the attached city attorney correspondence regarding this request. POLICY/PAST PRACTICE City goal #2 is to emphasize the maintenance and redevelopment of commercial and residential properties within the city. The City Council has been addressing the residential portion of this goal through the city's many housing activities, including acquiring property in areas designated for redevelopment in the Comprehensive Plan. BACKGROUND At the November 3, 2003, Council Work Session, the Council directed staff to complete appraisals, relocation estimates and to present offers to residents located in the east Winnetka redevelopment area. On January 26, 2004, the EDA authorized condemnation of the remaining properties. The appraisals and relocation estimates have been completed and are attached. Staff recommends approval of the resolution. · o: Z.D/ h\RFA\PLANNING\Housing\East Winn Redev\Q - 5446, 5512 & 5519 Purchase Agreements.doc II I I II Request for Action Page 2 3-22-04 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 Agreements · City Attorney Correspondence, 3/17/04 · Appraisals · Relocation Studies · Location Map/CityOwnership 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 CITY OF NEW HOPE EDA RESOLUTION NO. 04 - RESOLUTION APPROVING PURCHASE AGREEMENTS AND RELOCATION BENEFITS FOR ACQUISITION OF THREE PROPERTIES IN THE WINNETKA AVENUE EAST HOUSING REDEVELOPMENT AREA (5446 Winnetka, 5512 Winnetka and 5519 Sumter) 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 the Owners of certain real estate known commonly described as follows and hereafter collectively referred to as thc "Properties"' Common Address Fee Owner Purchase Price 1) 5446 Winnetka Avenue Clifford and Ang¢linc Dahlman $222,500.00 2) 5512 Winnetka Avenue Jose A. Mendez $147,000.00 3) 5519 Sumter Avenue Rome and Tammy Kessler $199,000.00 and WHEREAS, appraisers hired by the New Hope EDA have valued Properties 2 and 3 at the purchase price indicated above. Property 1 has been valued by the Owners' appraiser at $245,000.00 and by the EDA's appraisers at $200,000.00. The purchase price indicated for Property 1 is a negotiated price taking into consideration the conflicting appraisals on the property; and WHEREAS, the Owners are willing to sell their respective Property to the New Hope EDA for the purchase price as indicated above and as set forth in the terms of the Purchase Agreements attached hereto as Exhibits A, B and C respectively which are incorporated herein by this reference; and WHEREAS, the New Hope EDA hereby approves the Purchase Agreements attached as Exhibits A, B and C with the further understanding relocation assistance benefits will be paid to the Owners as required by both State and Federal law; and WHEREAS, City staff has employed the services of Evergreen Land Services Company to provide the required relocation assistance; and WHEREAS, Evergreen Land Services Company has prepared a relocation analysis for each Property and has determined the estimated maximum "differential" benefit payable to each Owner(s) is as follows for their respective replacement properties: Common Address · Maximum Differential Payment 1) 5446 Winnetka Avenue $12,000.00 2) 5512 Winnetka Avenue $42,900.00 3) 5519 Sumter Avenue $24,500.00 and WHEREAS, the New Hope EDA hereby acknowledges and agrees it will also pay the approved moving expenses and closing costs in connection with each Owners acquisition of their respective replacement property as those costs are determined by Evergreen Land Services, however, the Owners acknowledge and agree the final and actual cost for the total 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 respective replacement properties are determined by Evergreen Land Services Company; and WHEREAS, it is in the best interest of the New Hope EDA to purchase the Properties from the Owners for the purchase price set out in the above table, with other terms and conditions as set forth in the respective Purchase Agreements and to pay the required relocation benefits as finally determined by Evergreen Land Services Company, but with a "differential payment" not to exceed the maximum payment for each property as also set out in the above table. 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 Properties by the New Hope EDA from each Owner(s) at the above described purchase price, with other terms and conditions as set forth in the Purchase Agreements attached hereto as Exhibit A, B and C is approved. 3. The maximum "differential" benefit payable to each Owner(s), as set forth in the above table is hereby approved. The final payable relocation benefit amount to each Owner(s) shall be established by Evergreen Land Services Company after the actual purchase price, moving expenses and closing costs for the each Owner's 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 Properties in accordance with the Purchase Agreements and the relocation benefits analysis for each Property Dated the 22na day of March, 2004. 2 W. Peter Enck, President Attest: Daniel J. Donahue, Executive Director P:\Attomey\Cnh Resolutions\99.11287-001-Reso approving PA for 5446 Winn. 5512 Winn. 5519 Sum.doc JENSEN & SONDRALL, P.A. ~lttorneys 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. DEBNERz GORDON L. JENSENt GLEN n. NORTON March 17, 2004 STEVEN A. SONDRALL STACY A. WOODS Ken Doresky Community Development Specialist oF COt~SEL City of New Hope LORENS Q. BRYNESTAD 4401 Xylon Avenue North New Hope, MN 55428 RE: Resolution Approving Purchase Agreements For 5446 Winnetka, 5512 Winnetka and 5519 Sumter Our File: 99.11287 Dear Ken: Enclosed please find the following resolution for consideration at the March 22nd EDA meeting: RESOLUTION APPROVING PURCHASE AGREEMENTS AND RELOCATION BENEFITS FOR ACQUISITION OF THREE PROPERTIES IN THE WINNETKA AVENUE EAST HOUSING REDEVELOPMENT AREA (5446 Winnetka, 5512 Winnetka and 5519 Sumter) Basically, the resolution is self-explanatory. It approves the acquisition of the described properties in accordance with our recent negotiations with the property owners per the terms of the purchase agreements attached as exhibits. I hope to have the actual purchase agreements to you by the end of the day or early tomorrow. Purchase price and maximum differential payments are set out in the resolution. Please review that information so I can be assured you agree with the stated amounts for both. Please contact me if you have any questions or comments about the resolution or preparation of the purchase agreements. Very truly yours, Steven A. Sondrall JENSEN & $ONDRALL, P.A. sas@jensen-sondrall.cora Direct Dial (763)201-0211 Enclosure(s) ~Real Property Law Specialist Certified By The Mi=eso~ State CC: Kirk McDonald Bar Association Valerie Leone ZAdmitted in Iowa P:\Attorney\SAS\l Client Files'O. City of New Hope\99-11287~1tr K. Doresky approving PA 5446 Winn 5512 Winn 5519 Sum.doc 03/19/2004 14:16 FAX 763 493 5193 JENSEN & SONDRALL, P.A. -~ CNg-CH [~]001 JESSEN & SO L, P.A. A~o~eys At ~w 8525 ~R~K CROP.G, S~. 201 BROO~ P~, ~~A 5~-1~8 ~PHO~ (763) 4~8811 I ~.gg~ (763) 493-5193 ~H~NTS FOR EDA ITEM ~ ~m~ ~w~emen-son~.com FAX TRANSMI AL SHEET Date: March 19, 2004 Please Deliver To: NAME: Pam Sylvester FAX NO.: City manager From: NAME: Steve Sondrall OUR FILE: Exhibits A, B and C to resolution approving purchase agreements This transmittal contains /~ ~ pages, including this page. PLEASE NOTIFY US IMMEDIATELY AT (763) 424-8811 IF YOU DO NOT RECEIVE TI-IlS TRANSMITTAL PROPERLY. THESE DOCUMENTS ARE: RESPONSE INSTRUCTIONS: 9Confidential 9Fax Your Response 9Urgent 9Telephone Your Response 9Routine 9Give Written Respome 9Also Being Sent Hard Copy by Mail 9No Need to Respond NOTES: THE INFORMATION CONTAINED IN TI-IlS FACSIMILE MESSAGE MAY BI~ PRIVILEGED AND CONFIDENTIAL. IT IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO WHOM rr IS DIRECTED. IF THE RECIPIENT OF THIS TRANSMITTAL IS NOT THE INTENDED RECIPIENT OR AN EMPLOYEE OR AGENT RF~PONS1BLE TO DF, LIVER IT TO THE INTENDED RECIPIENT, ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE ILECEIVED THIS COMMUNICATION IN ERROR, PLEASE IMMEDIATELY NOTIFY US BY TELEPHONE AND RETURN THE ORIGINAL MESSAGE TO US AT THE ABOVE ADDRESS VIA THE U.S. POSTAL SERVICE. 03/19/2004 14:16 FAX 763 493 5193 JENSEN & SONDRALL. P.A. , CNH CH ~002 ~ MINNESOTA STANDARD RESIDENTIAL PURCHASE AGRF. F, ME. NT BEFORE YOU USE OR SIGN TI~/IS COIqTRACT. YOU SHOULD CONSUI.T WYrH A LA~ArY-EiR TO DETEP. I~IN~ TIgT TT-Ilg CONTRACT ADEQI IATELY PROTI~..CTS YOUK LEGAL RIGIXTS. 1. pA_I~TU~g. This Purolmse Agr~=naent is made on March . 2004, by and between Clifford R. Dahlman and Angel/ne Dahlrnan husband and wife, of 5446 Winnetka Avenue North, New Hope, Minnesota 55428. SELLER, and the 1R-conorxlic Developnlcnt AuLhority in and /'or the City of l~[¢w Hope, a public body corporate and politic under the laws of the State of Minneso 'ts, of 4401 Xylon Avenue North, New Hope, Minnesota 55428, BU-Y'ER. 2. OFF~IR/ACCEI'TA/NClg. ]~uyer offers to purchase and Sell~,r ~grees to sell r=~l property legally described The North 70 feet of the So~th -qJ0 feet of Lot 38, Auditor's Subdivisio~ ~To. 226; Property Tax Identification Number or Tax Parcel Number 05-118-21-33-0016; located at 5446 Winnetka Avenue North, City of New Hope, Coun~, ofHennepin, ,~tate of M/nnesota, 55428. 3. ACCEPTANCE DEADLINE. The acceptance date of this Purchase Agreenlent is the date it is deli voted hy 4. PI~.~L~ONAI. PROPERTY A2~TD FIXTUI't~S INCLUT}RD IN SALE. The follow/ng items of persona! prope~-ty and fixtures owned by ScllcT and currently located on the real property are included in this sale: garden bulbs, plants, shrubs, trees, storm windows and inserts, sLorm doors, screens, a~/n/zlgs, ~,rindow shades, blinds, curmin-traverse-cirapery rods, alZachcd lighting fixtures with bulbs, plumbing fixturei, stunp pumps, water heaters, heat/rig systems, heating stove% fireplace inserts, firb-placc doors m~d a~rcena, built-in humid/5er~, built- in air conditioning units, built-in electronic air filters, autonautio ~arag¢ door opuncr~ with controls, icier/sion m~tcnnas, water softeners, bui]t-in dishwashers, garbage d/sposals, built-tn trash cmnpactor.% built-in ovc-n~ anti cooking stoves, hood-fans, intercoms, installed carpeting, work benches, secur/ty systems, and also the tbllowmg property: ~_ inforrned_Seller they may remove oe~_~nent f/~t~l;t-es.~from Lhc oro~_~ert-v_ Sell_e_r~ notifv~nd obtain ~:~uy~el_"_'s aooroval before any ~nerlt fi~:ture is removed t¥ona the $. I~RI~JE A/N~L) T]ERI~IS. The pr/ce for thc rca1 and personal property included in this sale is Two I-Iundred Twenty-Two Thousand Five Hundred m~d 00/100 Dollars ($222,500.00) which Ruyer shall pay as follows: Earnest money of $0.00-baf-~ASH, C.q~C_~_,~,-~r~ ..... -:'r :':~'~-= '"' r~ Seller, to be deposited and held by SellcT (and may be coxrnningled wiLh Seller's other funds) p~-nding closing, [] Seller's Iawy~T, to be deposited m~d held m thc lawyer's trust accotmt pending closing, c~ Seller's broker, to be deposited or held by broker according to the requirements of Minnesota Starutes.~ r~ Other -~--~-'.~--.,.. c£ :':h/'~h is Y. cr=x.-.3· ==::::o:v.=_*:_~ ~ a~ .a and $222,500.00 cash, on , 1004, the Date of 6. DEED/!~ARIC~TA]~LE TITLE. lJpon perfbrm=nce by Eluyer, Seller shall execute and deliver a C}eneral Warranty Deed, jobbed in by spouse, if any, convey/ng marketable title of record, subject to: A. Building and :zoning laws, ord/nances, state a~d Fedora] regulations; Restr/ctlons relati~g to use or improvement of thc real property without effective for/'citure provisio~s; C. Rcsm~ration of any rn/n~-ral r/ghl~ by the State of Minnesota; D. Utility and drainage easements which do not interfere with existing inaprovements; F.. l=.xcept/ons to title wl~/ch constitute encm=abranoes, restrictions, or ca~sc~n~;nts which have bccn disclosed to Buyer and accepted by ~uyer in 12tis Purchase Agreement: ~Tone. ~ 03/19/2004 14:16 FAX 763 493 5193 JENSEN & SONDRALL. P.A. , CNH CH ~003 ?. 17,EA~ ESTA~ TAXIES AND SPECIAL ASSE$$~NTS. Real estate taxes due ~d payable in and the year of clos~ sh~l be prorated be~een Seller ~d Buyer on a calen~ year basis to ~e ac~l Date of Closing, ~ess o~e~se ~o~d~d ~ ~s P~ch~se Agreeinm~t. If ~ sm$em~ for such taxes are riel available on ~e ~ate or Closing, the amount ~ be ~o~ted s~l be % of the ~or yc~'s ~cs, ~d such es~mated iaw---~:;= ~f lh~~ S~ller r~res~m th~ tax~s due and pa~ble fla ~c yc~(z) 2004 ~11 be ~L, re,-:,.- =:~ff BWER ~D SE~ER S~L PRO~TE AS OF T~ DATE OF CLOSING / ~ELLER S~v Y ~J ~ ~-~ ~ ~.~ all installn~ents of special assessna~ts ce~ified for pa~ent with thc real estate ~es due ~d payable in the year of closing. /f/ff!:e ao] ~l~ ~H~.LL ASS'~E / SEL~R S~ PAY ON DATE OF CLOS~G all oth~ special asscssm~ le~cd ~ of ~o ~te of~s ~u~sc A~om~mt. re,..,,-_ --.~n o~.vv A~.--~ / SEI,I,ER S~LL PRO~E FOR PA~~ OF special ~scssm~n~ pending as of ~ ~te of ~s ~chase A~t for improv~m~ ~t have bccn ordered by the Ci~ Comcil or o~ gov~tal assessing subtitles. (Sailor's ~oviaion ibr payment shall b~ by payn~t ~to ~scrow of 1-1/2 fi~s ~c csti~tcd ~ount of' the assesmnents.) ~ of ~e dat~ of ~s ~se A~ement, Seller repr~s~n~ flint S~ller has not r~ceived a Notice of H~a~g of a now public improvement project fi'om any gov~tal assoss~g au~o~ty, ~ costa oF whluh project may be assessed against ~ real ~op~. If a special assesmn~nt b~omes pend~g after ~e date of this ~tmhase A~eemcnt ~d before thc Date of Closing, Buyer my, at Buyer's option: A. ~s~e pa~ent of ~e p~ding ~ecial assessment ~thout adjus~nt to thc p~c~se price of th~ real prop~; ~ B. ~qu~e gcllcw to pay the pending special asReasment (or escrow t~ payment of same as prodded above) mad Buyer shall pay a con=ensurate increase in the p~c~se p~ce of the real property, which increase sh~l be ~e sine as ~e estimated mount of ~ asscs~cnt; or ~- De~lare this P~chase Agreement void by notice to Sell~, mad eanlest money shall be ref~ded to Buyer. -.:~.z cae .......... ?-ELiteS/SELLER S~L PAY ON DA~ OF ~OS~G ~y deleted real estate, taxes. (~clu~g "~e~ A~s". rexes ~d=r ~. Stat. 273.111) or special assessments payment of which ~.~eqmr~ ~s ~ result .o~ me c~osmg of ~s sMc. Buyc~ s~ll pay r. al estate ~es due and payable in m= year ·onowmg c~os~ng mas the~a~g ~d rely ~pa~d specml asses~aents payable th~e~ and th~eaffer, the pa~t of w~ch is not othe~$e p~ded h~e~. Seller ma~$ no r~res~mtion conceding the amount of future real estate rexes or of fu~e ~ccial assessments. 8. D~ACE8 TO ~ PROPERTY. ~ ~e ~al prope~ is substmfially ~ged p~ to closing, P~c~se A~eement s~ll te~ate ~d the eam~t ~ney ~I1 be re~mded ~ ~uy~r. If thc rca] property da~gcd mac. ally but less than substantially p~or to closing, ~uyer ~nay rescind fl~s P~chase A~e~nt by nnfice tn Sell~ ~thin 21 days afl~ Seller notifies Buyer of such d~ge, d~g w~ch 21-day pc~od Buyc~ may inspect the real prope~, and in ~e event of such rescission, the e~e~ n~on~y shall ~ r~ded to Buyer. 9. SELLER'S BO~~y L~, AC~SS, ~ST~CTIONS ~ L~N W~~S. Seller w~ ~t build.Es, ~ ~y, ~o ~oly wlt~ tho bounc~ry lines cE the real prope~. ~eller wmwanta there ia a right of access to the ~al prope~ fi-om a public right of way. Seller w~mats ~at ~ere has be~ no labor or material ~Mshed to ~e ~al prope~ for wlfich payment has not been n~adc. Seller wa~ant~ that there arc no ~cs~t ~oIa~ons oF any resections relating to the ~ or improvement of the real prope~. These w~es s~ll s~ve the deliv~ of ~ D~ed or Con.act for Deed. 10. CONDITION Of PI{OPEI{TY. A. Seller w~an~ t~t aH appli~ces, ~res, hea~g and a~ con~fioning equipna~t, fireplaces (including mcch~s~, ~mp~, fluc~, and doors), w~g, ~d plumbing used and located on thc real prope~ b~ m wor~g ord~ on ~ Date of Closing. 8~11~ s~ll ~naove all de~s, and all personal prop~ not included in ~s s~e ~om ~ real prope~ before possession date. Seller ~s no ~owledgc of u.ny Dutch elm dise~e, oak wilt, or other disease of any trees on ~e real prope~. 2 03/19/2004 14:17 FAX 763 493 5193 JENSEN & SONDRALL. P.A. , CNH CH ~004 ~ B. Seller knows of no hazardous substmaccs or petroleum products havh~g been placed, stored, or released ~om or on the real property by any person in violation of any law, nor of any underground storage ~nks having been located on the real property at any time, except as follows: None. C, Seller's warranties and re-presentations contained in this paragraph 10 shall survive the delivery of the Deed .~.- _..-:.~.~.-ac: ....wcc~. Any action based upon these warranties and representations musl bc commenced within two years after the date on which iht Buyer closed on the purchase of the real propcwty. D. Buyer shall hav~ the right to have inspections of the prol~rty conducted prior to closing. Unless required by local ordinances or lending regulations, Seller does not plan to have the property h~spected. 1~,. Stli~ltory Disclosure. Pursuant to Mh~nesota Statutes sections 513.52 - 513.50 (effective January 1 2003), Seller lnust provide a w~-ittma disclosure [scc (1) b~low], or Buyer must have received an inspection report [see (2) below J, or Buyer and Seller may waiv~ the written disclosure requiren~ents [sec (3) below]. l~dinnesota Statxltes Seclion ~13.$?, Subd. 2. LLA. BI. LI'I'Y. A seller who fails to make a disclosure us rcclmrcd by sections 513.$2 to 51~.60 and was aware of the condition of the real property is liable to thc prospective buyer. A person injured by a violation of this section may bring a civil aciion alld l'eCover damaRes and receive other equitabl~ relief us d~lawrnln~d by iht: court. A~ action trader this subdivision must be commenced within two years ~'ter the dare oil which the prospective buyer closed the purchase or tcau~ibr of the real properly. £~elect ~,n/y one o.F~h~'e ~h,'ee.'] [] (1) Seller's ])isclosure. ,~el]er ha.~ provided a written disclosure to Buy~-..~. copy of Seller's disclosure is attached. Seller shall correct in writing any inaccuracies in the disclosure as soon as reasonably possible before closing. 1vlh~esota Statutes Section .~ 13.53. GIT. I~IIAL DI,~CLOSUR~ R~QI. YITiI~MI:_~ITS. Subdivision 1. COI~TENITS. (a) Before signing an agreement to sell or transfer residential real proper~y, the seller shall make a written disclosure to the prospective buyer. The disclosm'e must include all material ihcts pertaining to adverse physical conditions in the property of which the seller is aware that could adversely and sit~nif~cantly affect: (1) an ordinary buyer's use and enjoyment of the property; or, (2) any intended usc of th~ propcr~y of which thc s~ll~r is awsr~. (b) The disclosure luust be luade ia Rood faith a~d based upon the best of the seller's k2~owledge at the time of the disclosure, Minnesota Statutes Section $13.$~. AMEi~rDi~ENT TO DLSCLOSURIi. Subdivision 1. HOTICE. A seller nmst notify the prospectlv~ buyer iu writing as soon as reasonably poss~'ble, but in any event before closing, iftl~ seller learn~ that the seller's disclosure reqtm'ed by section $13.35 was inaccurate. Subdivisio~ 2. F,aaLLUR.[ii '1'O NOTLFY; LLA~ILI'I'Y. A seller who fails to notify the prospective buyer of any amendments to the iniriat disclosure required under subdivision ! is liablc to thc prospective buyer a~ provided in section ~ 13.$7. lEI (2) Inspection ReporL Buyer has received an inspection report by a qualified third-party. Ir a copy or the inspection report is provided to Seller, Seller slmll disclose to Buyer n~atm-ial facLs know~ to Seller that contradict any information in the inspection report. Minnesota Stani~es Section -~13.S6 Subd..3. 13qSP.~,CTIONS, (a) P. xcept as provided in paral=,raph (b), a seller is no£ required to disclose infornlation relatiaR to the physical condition or the r~al proper~y ir a written r~port that discloses the information Ires been prepared by a qualified third pa~y and provided to the prospectiv~ buyer. For purposes of this paragraph, "qUalified third party" means a federal, state, or local Revel'mental agency, or any person whom the seller, or prospective buyer, reasonably behaves has the expertise necessary to meet the industry standards of practice for the type of inspection or investigation that has been conducted by the third party in order to prepare th~ written report. (b) A seller shall disclose to thc prospective buyer rnat~:n'dl lhcis known by the s~ll~l' that conu'adicI ally htformation included in a written report under paragraph (a) if a copy of the repor~ is provided to the seller. [] (3) Waiver of Disclosure. Mhmesots Statutes Section ~13.60. W,~-VER. The written disclosure required under sections ~13.~2 to ~13.60 may be waived if the seller amd the prospective buyer a~ree in writimg. Waiver of ~he disclosllre reqi~ired llnder sections ,~ ! 3.,~2 to ~ 13.60 does not waive, limit, or abridge any obligation for seller disclosnre created by uny other 03/19/2004 14:17 FAX 763 493 5193 JENSEN & SONDRALL. P.A. , CNH CH ~005 Seller and Buyer waive the written disclosure required under sections 513.52 to 513.60. ECONOMIC DEVI~LOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE SELLER: BY: Clifford I~. Dahlrnan W. Peter ~nck, President SELLER: BY: Angeline Dahlrnan Daniel I. Donahuc, Exceul.ivc Director Other than the warranties and representations made in this paragraph 10, the property is being sold "AS IS" with no express or implied representations or warranties by Seller as to physical conditions, quality of construction, workmanship, or fimess for any particular purpose. (This parasraph is not intended to waive or lirmt any provisions of Minn. Stat., Chapter 327A.) I I. DISiTi',OSURE OF NOTICES. Seller has not received any notice from any goverrnnental authority as to violation of any law, ordinance or regulation afthcting the real property. If the real property is subject to restrictive covenants, Seller has not received any notice from any person as ti) a breach of file covenants. Seller has not r~ceived any notice from any governmental authority concerning any eminent domain, condemnation, special taxing di-~triot, or re~.oning proceedings. 12. TI~UTH-IN-¥IOUSINCI. Buyer aclcnowlcdgcs receipt of the Truth-ln-I-Iousing Disclosure l~eport or other inspection r~port if required by the mtmicipality in which the real property is located. 13. POSSESSION. Seller shall deliver possession of the property not later than the Date of C]osin~ and all charges for city water, city sewer, electricity, and natural gas ~hroil~zh and inckiltln~ beWeema-td~-p~the Date of Closing. *SEE ADDITIONAL TER1VIS IS. TITL~ CORI~.iC'I~ONS ~ RIE1VI~DIF.$. Seller shall have 120 clays fi-nm receipt of Buyer's written tiflc objections to make title marketable. Upon receipt of Buyer's title objections, Seller shall, within ten (10) business days, notify Buyer oi' Seller's intention to make title marketable withi~ the 120 day period. Liens or encumbrances for liquidated amounts which can be released by payn~ent or escrow from proceeds of closing shall not delay the closing. Cure of the defects by Seller shall bc reasonable, diligent, and prompt. Pending correction of title, all payments rcq,ircd herein and ~hc closing shall be postponed. A. I£notic¢ is ~ven and Seller make.~ title ~narketable, then upon presentation to Buyer and proposed lcndc:r of documentation establishing that title has been made marketable, and if not objected to in thc same time and n'~nner as the orig/nal title objections, ~h~ closing shall take place w~a/n r~a~ (10) bueiness days or on the scheduled closing date, whichever is later. B, If notice is given and Seller proceeds in good fakh to make title marketable but the 120 day period expires without title benag m~de nmrket~ble, Buyer n-~y declar~ th/s l:~'cha.~e Agreement void by Seller, neither par~y shall bc liable £or damages hereunder to the oflaer, and eanaest mtmey shall be refunded to Buyer. C. If Seller does not give not/ce of intention to mak~ t/fie marketable, or ii' notice is given but the 120 day period expires without title being made nmrketable due to Seller's failure to proceed in good faith, Buyer may seek, as permitted by law, one or more of the following: (1) Proceed to closing without waiver or merger in the Deed of the objections tn title and without waiver of any remedies, arid may: 4 03/19/2004 14:18 FAX 783 493 5193 JENSEN & S0NDRALL. P.A. , CNH CH ~006 (a) Seek damages, costs, and reasonable lawyer's fees from Seller as perrniVced by law (damages under this subparagraph (a) shall be limited to the cost of curing objections Lo ~itlc, and consequential damages are excluded); or (b) Undertake proceedings to correct the objections to title; (2) Rescission of this Purchase Agreement by notice as provided herein, in which case the Purchase A/~reement shall be null and void and all earnest money paid shall he re'Funded to Buyer; (3) Damages ~'0m .~eller together with costs mhd reasolmble lawcr's fees, as permitted by law; (4) Specific performance within six months afl~r such right oi' action arises. D. It' title ia rn~kt:iablc, or is rnadc marketable as provided herein, and Buyer defaults in any of the a§reemen~s herein, Seller may elect either o£ the l'ollowing options, as p~rnai~'~d by law: (1) Cancel this contract as provided by statute and retain all payrn~'nts made hereunder as liquidated damages. Thc parties acknowledge their intention that any not~ given pursuant to this contract is a down payment note, and may be presented for payment notwithstand/ng cancellation; (2) Seek specific pcrforrnancc within six months after such right of act/on arises, including costs and reasonable lawyer's fees, a~ pernaitted by law. ~.. If title is marketable, or is made rnarkciablc as provided herein, m~d Seller defaults in any of the agrccmtmts her~in, Buyer may, as permitted by law: (1) Seek damal~es i'ron~ Seller including costs and reasonable lawyer's fees; (2) Seek specific performance within sm months after such right of action arises. 16. I~'OTIC]E~. All notlc~:s required l~rein shall be in writing and delivered personally or mailed to the address as shown at paragraph I above and, ifrnailed, are effective as of the date of mailing. I~. IViINNESOTA LAW. This contract shall be governed by the laws of the State orlViinncso,~. 19. WELL DISCLOSURE. [Check one of the following] [] Seller c~wti~cs that Seller does not ioaow of any weils on tl~e real Property. ~ Wells on ~he real property are disclosed by Seller on the attached Well Disclosure Form. 20. SEWAGE 'I~I~AT1VEE1N"r SYSTEM DISCLOSI~RE. [Check either ,4 or B] A. ~ Seller certifies that sewage genex~ated at the property goes to a facility permitted by the Minnesota Pollution Control Agency (for example, a ci~-y or municipal sewer system). ~ Seller certifies that sewage generated at thc property does not go to a facility permitted by the 1V~im~esota Pollution C.~.onra-ol Agency and Scller's Disclosure oxc Individaal ,~Iewa~e Treatna~nt System as attach=d (attach form). [Check either C or DJ C. D Seller does not know if there is an abandoned individual scwage system on th= property. D. ~ Seller la~ows that there fstrike one]: arc/are no abandoned individual sewage ~reatment sys~err~ on the property. If Seller discloses the existence of an abandoned individual sewage ~xeatrncnt system on the property, then IMinr~eso~a law requ/res that the location of thc ~ystem be disclosed to Buyer w/th a map. [~4ttach Seller's Di~'closure qf i'ndividual ~Vewage Treatment 5~$tem with map completed..] 21. LEAD PAIN'I' DISCLOSURE. [Check one of the followinK,] [] Seller rc~prcscnts that the dwelling was constructed on the real prolvert~ in 1978 or later. 03/19/2004 14:18 FAX 763 493 5193 JENSEN & SONDRALL. P.A. , CNH CH ~007 [] Seller represents that the dwelling was construed on the re~l property be£orc 1~78. (If such located ~ ~e re~ prop~, a~achcd ~d ~d~ a p~ oF ~s Purchase Agreement is "LE~ PA~ ~D~~ FOR HOUS~O COHS~UCTED BHFO~ 197~".) 23. SEL~R'S ~'F~A~T. At closing, Se~ shall supplement ~e w~tics and r~resenmtions m this P~c~se A~c~ent by ~cut~ ~d delivc~n~ a Minneso~ Ilniibrm Conv~yan~g n~cc=~!= !=:::~'-~=. [~z~ze olAer loc~lio~: N~ Hope Ci~ Hell, ~01 Xylon Argue No~h, New Hope, Mim~esom 53428. At closing, Seller md Buyer shall disclose their Social Security Numbers or Federal T~ Id~fication Numbers for thc p~oscs of completing state ~d iBd~al t~ fo~. 25. A~D~O~ T~S: *~uy~ s~ll ob~, at BuXer's expose, a Co~ent for an O~cr's Policy of Title Insuran~ on a c~t ~TA f~ issued by an insum~ licensed to write rifle instance in Minnesota. Buyer shall be responsible fbr payment of ~ose costs necess~ to ~¢p~c s~h Co~ent, including but not li~ted ~ abs~ac~g fees, ~e se~ch ~ees, s~ce char~es, etc. Buy~ shall ~ay t~e ~cmium fbr the ~ner's Policy of Title ~s~ancc. Buy~ shall have ten (10) business days a~r ~ceipt of thc Co~ent for Title ~ce to pro. dc Scll~ wi~ a copy of the Comi~nt ad ~Ren objecfims. Buyer shall be dee~ned to ~ve waived ~y tiao objections ~ot made within the ten (]0) day period above, except ~at this shall not operate as a wai~er oF Seller's covcnaut to dcliv~ ~ ~tu[ory W~an~ Deed, ~css a W~an~ Dccd above. If ~uyer ob~i~ ~t]c ~su~cc, Buyer is ~ot wai~ng the right to obtain a good a~d naarkc~blc title of record ~om Seller. 26. ~D~A. A~ched ~c ~ add~a w~ch ~e ~de a p~t oF ~is P~chasc A~rcemcnt. 27. ~ IS OF ~ ESSE~. Time is of the essence for ell pro~si~s offs P~c~e A~eement. 28. ~~LE O~~S. Seller ~d Buyer have si~ed ~ o~nals of ~s Pure.se ~$ IS A LEG~LY ~~G, CO--CT. B~FORR SI~N~G~ CO~STULT A LAIR. { Mi~eso~ law ~ts lic~sed rea] es~te brokers and sales ag~ts to p~pare purcha~ a~eeme~ts. No recommen~tion ~ r~s~on may bc ~de by any real es~le broker or sales agent as to the l~gal su~]ciency, SEL~R: B~ER: I ~e to sell ~c pro~rty For thc pdc~ ai~d terms I ~ to p~ch~e ~he prope~ for ~e price ~d m~d con~tio~ s~ fo~h a~ve. te~ ~d condi~o~s set Fo~h ~ate: March ,2004. ECONOMIC DE~I,OPME~ AT~HO~'rY tN AND FOK THE CI~ OF ~W HOPE Clifford R. Dahlman ~ate: Mai'ch ,2004. By: ...... Date: M~ch ...... 2004. W. Peter ~c~ ~esident Date; ~ar0h ..... ~ 2004. Angel~e D~an SSN: D~icl ~. Donahue, Executiv~ Director Thi~v Purchave /lgreernent was prepared JENSEN & SONT}RALL, P.A. 8525 Edinhraak Crossing, Suite 20 l Brookl~ Par~ ~ 55~3 (763) 424-8811 03/19/2004 14:19 HA~ 763 493.5193 JENSEN & SONDRALL. H.A. , CN'H CH ~008 Otlters wito will assist Seller or Buyer ~ttk this transaction: Lawyer for Buyer: Steven A. Sondrall, #103391 8325 Edinbrook C~rossing, Suite 201 Brooklyn Park, Minxtesota 5542g (763) 424-8811 Listin~ A~ent and Brolc~r for t_his t-F-~n,~antlon Selling Agent and Brolo~r for this transaction are: Bmrer's Title Insure: Old Republic National Title Insurance Company 400 Second .~vcnu¢ South Minneapolis, Minnesota 55401 [1~}94; R~v. 1996; Rev. 1997; l~v. 200:2] 03/19/2004 14:19 FAX 763 493 5193 JENSEN & SONDRALL, P.A. ~ CNH-CH [~009 EXHIBIT A ADDITIONAL TERMS RELATING TO PURCHASE AGREEMENT FOR 5446 WINNETKA AVENUE NORTH Buyer acknowledges that it shall be responsible for payment of the State Deed Tax due on the sale of the above property, as well as the cost of securing a title commitmem as set forth in the Purchase Agreement. Buyer will also be responsible for all other closing costs, specfficalIy including all recording costs and all costs to seal the water well on the property. Buyer acknowledges that relocation assistance benefits as determined by Evergreen Land Services Company will be paid to the Seller, as required by law, and the differential paymem on the purchase of a replacement property resulting from the sale of the subject property shall not exceed the sum of $12,400. Seller acknowledges the determination of moving expenses and closing costs by Evergreen Land Services Company shall be binding on both parties. SELLER: 'Dated: March ,2004. Clifford R. Dahlman Dated: March ,2004. Angeline Dahlman BUYER: THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE Dated: March . ,2004. By: W. Peter Enck Its: President Dated: March __, 2004. By: Daniel J. Donahue Its: Executive Director P;\Attorm~kSAS~l Client Pilt~2 Cil~ ~f N~w Hope\99-1 tB01~pa ~dandurn cloalng co~ and diffpmt..doc 03/19/2004 14:19 FAX 763 493 G193 JENSEN & SONDRALL. P.A. , CNH CH ~010 ~S'~- Form 1519Y - ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS This form approved by the Minncsot~ ~sociation of RF-.~LTORS®, which dieclalms any liability arlslng out of use or misuse of this form, © 2000, Minnesota Association or RIEALTORS®, Edina, MN Date ........ ZYto~c.~ . ~age Addendum to Purchase .~reement between parties dated ~V~arch : ~004. ............ pertah~Tng to The purchase and sate o£the property at 5_44~ Wlnnetl~ Aven~e ]~T8~th; 'l~Tew l~]'t,?e: ]%~'innc.~o[3 ~.~_R .... SeCtiOn 1: ~ead W~a~g Statement E~ purc~,~r o~ i~lere$z in residential reol prope~ o~ w~ich ~ r~$iden~al d~e/li.g w~ b~ilt p~or to I P78. i~ ~ot¢~d such ~er~ ~ pr~enl ~po~re lo le~d ./"rom lc~d-b~cd pnint that ma~ place ~o~ng children ~t r~lc o~ E~elopin~ le~d pa~voning. L~ad po~oning 'in young childr~ m~7 prod, ce permanent neu~logicai damag'e, including leatvting disabilities. reduced ~nt~Higenae quo~eng behavioral problem', and impaired memory. ~ead poisoning also posex a par~'cular risk to won~en. ~ seller of any ~nterest in r~id~n~l real proper~ ~ required to provide thc buyer with arty ir~ormation on Icad-based paint haxar~ f~m ~k ass~smenZ~ or t~pecn'o~ ~n the .~eller'x pns.~sion and not~y the b~ver of uny known lead-b~'ed paint SeUer*s Disclosure (u) ~cscncc of l~d-b~cd pa~t ~or lcad-bascd pabst l~ar~ (ch~k one belo~): Se~er has no ~owled~c of Icad-based paint and/or lead-b~ed paint h~r~ in Thc ho~in~. ~ecords ~ r~o~ av~able to thc s~ (chcc~ one below): Se~er has pro~d ~e p~has~ wi~ all av~able records ~d repo~s pe~ to l~ad-based ~amr lead-based VaSt h~ds ~ ~ housh~s (~t doc~en~ below). ~ Saner l~ no r~ or recor~ padmini-s tO lead-b~cd pant an~or ~ased P~int ~z~~'h~ Purchaser's AckaaowledEa~sesst (initial) (c) P~cr h~ rcccivcd topics of all i~o~fion hated ~d~r (b) above. (d) Purchaser h~ received the pamphlet P~orect Your ~dmil~m Ladd i~ Your ~ome. (e) Purch~er h~s (check one below): Received a 10-day oppom~ (or mnmally a~eed upon period) to conduct a ~sk ~scss~n~n[ or ~spectiou for ~e presence of lead-based p~t ~d/or Iead-b~ paint hazards (If checked, acc Sec~on H below); or W~v~d ~e opport~ty ~o conduct a risk assessment or ~pection for ~e p~sence of lead-based pant and/or i~a~sed paint h~ar~. Real Estate Licensee's AchowleOEment (initial) (0 Real esm~ licensee ~s ~b~ed ~e seller of~e seller's obligations undc~ 42 U.S.C. 4852(d) ~d is ware of liceme='s responsib~ to ~mur~ Ccrtffication of Accuracy ~a followinE p~es have reviewed ~e ~fo~on above ~d ce~i~, to ~e ~st of their knowlcdEc, ~a[ ~e h~forma[ioa provldcd by ~c si~ry ~ ~ ~d acetate. Cl~fo~ R. D~I~ ~cun0mi~ Deve]opment Autho~ in and For the Ci~ of' New I lope Seller Date Purchas~ Date By: W. Pe~r ~nck, Pr~ident ~s=linv Dahlman ~conomic Developmenf ~Uth~ri~ i~ ~ 't~r"~c ci~ o~ Hew H0pc Seller ~ate P~clmscr Date By: Daniel ~. Donahue, ~xecutive Director Real l=,state Licensee Date Keel I:;state Lice_n_see Dat~: S~cy ~ti~ o[fly if first box under Purchaser's Acknowledgement lc~r (~) abo~e is ~he~ is ~n~8ent,upon a risk assault m' an ins~ion of ~e ~p~ t~r the p~nence ~f' I~-~nt and/or A~o-oau~ pa~L~ b~ conduo(~l at thc purchaser's expense. The ~Ssessln~t or in~cc~oa sh~IGt~ ~iihin ~ L~?~L ~.~~~.~,~,~,or,],~ ~],~ .~m,,,.~. ~, ~o...~~ deemed remove, and the purchaser deli~e~ to ~ller or re~ ~te ~alsting or ac~g ~~d~~r the ~sess~ent or ~pee~on ia timely eomplet~ a writt~he ~ffdeticienaies aM the eorre~ions r~. together with a ~ .~ ~ak ~a~n~ent.or m.~tion r~po~. If th~~~ar have not ~ed ~a ~ uc, iv~ ot~e ~na~n il~t ofre~~tiun~ that: (A) au~~f the required cor~floas will b~ made; or (B) _ , pu~no~ ~i~ m~ ac~i~~) m~ adjustment to the purchase pd~l~dc, thc ~lrchaac A~ecmcnt shall l~ur ~y ~JI~JY W~vc oc~clcnclcs or dcfcc~ or r~ovc this ~nQn ............... :J:_.. ,L~ .... ~ .. . ~the ~iver ~ removal in ~i~n8 within the d~e specified. 03/19/2004 14:19 FAX 763 493 5193 JENSEN & SONDRALL. P.A. , Cl~[ CH ~011 Miller/Davis Co. cO St. Paul, MN 051-G42-1988 ~l~&'~- Form 1519WB (Rev. 10/0~,) WELL DISCLOSURE STATEMENT This ~ approved by ~e Minrteso~ ~ciation of R~LTOR~, ~1~ QisQaims any liability adsing out of use or misuse of ~ls form. ~ 2003, Mlnneaaffi ~e~=fl~n of REALTORS~, Edina. MN 1. Date M~ch ,2004 2. Page I of Pages: THE REQUIRED MAP IS 3. A~ACHED HERETO AND MADE A PART HEREOF 4. Minnesota Statutes S~. 1031.235 requires that before signing an agreement to seJl or ~ansfer real prope~y. Seller 5. must disclose info~ation in writing to ~e Buyer about the s~tus and Io~tion of all known wells on the prope~. This 6. requirement is satisfied by del~ering to the Buyer either a statement by the Seller 7. any wells on the p~pe~, or a disclosure statement indicting the legal description and county, and a map showing 8. ~e I~ation of ea~ well. In ~e disclosure s~tement the Seller must indi~te, for each well, whe~er ~e well is in 9. use, not in use or sealed. 10. Unless the Buyer and Seller agree to ~e contraS, in writing, he,re the closing of the sale, a Seller who ~ils to 11. disclose the existence or kno~ s~tus of a well at ~e time of sale and knew or had reason to ~ow of the existence 12. or known status of the well, is liable to ~e Buyer for cos~ ret~ing to sealing of ~e well and ~asonable a~orney fees 13. for colle~ion of costs from the Seller, if the action is commenced within six yea~ after the dete the Buyer close~ the 14. purchase of ~e real ~roDe~ w~ere the well is Io~ted. 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 ~ro~sslonal which ~gulates wells for fu~her information abou[ 17. these issues. 18. Instructions for completion of this form are on the reverse aide. 19. PROPERTY DESCRI~ION 20. S~eet Addm~ ..... 5~6 W~e~ ~ve~t]e ~o~, ~ Hope 21. LEGAL DESCRIPTION: ~e Nn~h ?0 Feet ,~f thc RI)uth~9~ feet of Lot 22. 23. 24. 25. WELL DISCLOSURE STATEMENT 26. ~eck the appropriate ~x.) 27. ~ The Seller ce~ifles that the Seller does not know of any wells on the above described real prope~. 28. (If this option is checked, ~en skip to the last line and sign and date this statement.) 29. ~ Tho Seller ce~ifiee that the following wells are I~ated on the above describe~ prope~. 30. MN Unique Well Year of Well IN USE NOT IN SEALED 31. Well No. Dop~ Const. Type USE 35. NOTE: See ~eflnition of te~s "IN USE, .... NOT IN USE," an~ "S~LED" on lines S~-92. If a w~ll is not in use, 36. it mMst ~a s~ala~ by a Iicensa~ w~ll ~ontm~tor or a well owner must ob~ln a maintenance pe~it from the 37. MinReso~ Depa~ment of Health and pay an annual maintenan~ fee. Maintenance permits are not 38. t~n~e~le. If a wall is operable and properly maintained, a maintenance permit is not required. 39. OTHER WELL INFORMATION 40. Date Well water last tes~ea for ~ntamlnants: .... Test results attached? Yes~ No~ 41. 42. Contaminated Well: Is there a well on or sewing the prope~ c0~ln[ng contaminated wate~ --Yes~ No~ 43. SDLEg WELL ~. For each well designated as sealed above, complete this seclion. 45. When was ~e well sealea? 46. Who sealed the well? ..... 47. Was a Sealed Well Repor~ filed with the Minnesota Depa~ment of Health? Yes~ No~ 48. MAP 49. Complete the a~ached ~P shewing the location of ~ach w~ll on t~e real prope~. 50. ~is disclosure is not a warran~ of any kind by ~e Seller(s) or any Licensee(s) representing or assisting any 51. par~/ies in this transa~ion, and Is not a substitute for any inspections or warranties the pa~lies may wish to o~tatn. 52. CEETIFICATION BY SELLER 53. I cedi~ that tha info~ation provided above Is accurate and ~emplete to the best of my knowledge. ~4. ~fford Angeline Da~ l~D~l~ lief or~eslgna~a ~pr~n~tlve) (Date} (~el~er or Deslgnat~ Repreaen~ve) (Date) 55. BUYEr'S A~KNOWLEO~ME~T 56. W.(Buyer)PC~ Enek, Pr~idca~ N~ Ho~ EDA (Da~) ~i~-J.(Buyer) Don~ue, Hxecufive Dimmor, Ngw Ho~ EDA (Dats) 57. MN-~ (~0/03) O~I~INAL COPY TO LI~TIN~ BROKER; COPIES TO SELLER, BUYER, SELLIN~ BROKER 03/19/2004 14:20 FAX 763 493 5193 JENSEN & $ONDRALL. P.A. , CNH CH ~012 WELL DISCLOSURE STATEMENT 58. Page 2of _._ Pages. 59. INSTRUCTIONS FOR COMPLETING THE WELL DISCLOSURE STATEMENT 60. DEFINITION 61. A '~well" means an axoavation 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 groun¢lwater. 63. MINNESOTA UNIQUE WELL NUMBER i~4. All new walls constructed AFTER January 1, 1975 should have been assigned e Minnesota unique well number by 6,5. the person constructing the well. If the wall was constructed after this date you should have the unique wall nunlDer in 66. your property records. If you are unable to locate your unique well-number and the well was constructed AFTER: 67. January 1, lg75, 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. Usa 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 privela 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 ~xchange 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 usa" if the well does not mast 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 oompletely filled a well by pumping grout material 88. throughout the entire bore hole after removal of any obstructions fi`om the wall. 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 gO. "capped" well is not a "sealed" well. gl. if the wall has been sealed by someone other than a licensed well contraotor or e licensed well sealing contractor, 92. check the well status as not in use. 93. If you have any qu~tlons, 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). gs. ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER 03/19/2004 14:20 FAX 763 493 5193 JENSEN & SONDRALL. P.A. , CN-H CH ~013 Millel'/~:)avis Co, ~) SI. Paul. MN Form 1519S8 PRIVATE SEWER SYSTEM DISCLOSURE This fo~ app~ved by the Minneso~ Ass~iatlon ~f ~EAI_TORS~, wnt~ alsclalm8 any liaDIlity arising out of use or misuse of this ~. ~ 2002, Uinnuso~ ~ao~aaon of REALTOR~. Edina, MN ~. Da~ ~. 2. Page t of____ Pages: THE RE~UIRED ~P IS 3. A~ACHED HER~O AND MADE A PART HEREOF 5. in ~e Ci~ of ~ow.~ope ~un~ of T.Ienne~ifl .... S~ta of ~uleso~ , legally described as follows or 7. 8. Tl~is disclosure is not a wa~n~ of any kind by the Seller(s) or any Licensee(s) representing or assisting any Pa~(s) in this 9. transaction, and is not a substitute for any inspections or wa~anties the Pa~(s) may wish to obtain. 10. BUrR(S) AND SELLER(S) ~Y WISH TO OBTAIN PROFESSIONAL ADVICE AND/OR INSPE~IONS 11. OF THE 8E~R SYSTEM AND TO PROVIDE FOR APPROPRIA~ PROVISlON8 IN A CONTACT BE~EEN 12. BURR(8) AND SELLER(S) WITH RESPECT TO ANY ADVICEIINSPECTIONIDEFECTS. 13. SELLER'S INFORMATION: The following Seller disclosure saUsfles MN. Statutes Chapter 115.55. The Seller discloses the 14. following in~atiOn wi~ the knowledge ~at even though this is not a warrant, p~spe~ive Buyers may rely on ~is information ~5. in deciding whaler and on what ~s to pumhase [he Prope~. The Seller(s) au~odzes any Agent(s) representing any par[y(s) 16. in this t~nsacfion to provide a ~py of this statemenl to any person or enU~ in connection with any actual or anticipated sale of 17. ~e Pmpe~. 18. Unless [he Buyer and Seller agio to the contra~ In wHting before the closing of the sale. a Seller who fails to discloso the 19_ exis[an~ or known s~tus of an individual sewage troatment system at the time of sale. and who knew or had reason to know of 20. the existence or known s~[us of ale system, is liabJe to the Buyer ~r cos~ relating to bdnging t~e sy~em into compliance with 21. individual sewage tree[merit sy~em rules and for masonablo affarney fees ~r ~llection of costs from the Seller. ~ actiun ur)der 22. this subdivision taus{ be ~mmenced wi~in ~0 years after tho date on which the Buyer closed the purchase of the real properly 23_ where ~e system ia Io~[ed. 24, L~al requiremen~ exist relating to various aspects of location and sta~s of individual sewage treatment systems. Buyer 25. advised to con.ct ~e local unit(s) of government, state agency or qualified professional which regulates Individual sewage 26. treatment sys~ms ~r ~er Infomatlon a~ut these 27. The following are represen~tions made by tho ~eller(~) to the e~ent of the Salter(s) a~ual knowledge. This i~3~rmation 28. disclosure and is not intended ~ be pa~ of any ~n~act baleen ~e Buyer and 29. PRIVATE SEWER SYSTEM DISCLOSURE (CHECK THE APPROPRIATE BOX.) 30. ~ The Seller codifies ~at ~e Seller does not know of any p~va{e sewer sys~m on or sewing ~e a~ve described real 31. pmpe~. (/f ~ls option is checked, then skip te the lasl /Jne and sign end dato this statement.) 32. [~ ~ The Seller ce~fles that ~e following private sewer system is on or se~ing ~e above described ~al prope~. 33. ~PE (Check appropriate ~x(es) and indicate Io~Eon on e~a~hed MAP) 34. ~...- ~ Septic Tank: ~ wi~ drain field ~ with mound system ~ seepage rank - ' ' with open end 35. ~ Sealed Sy~em (holding ~nk) 36. O~er (Describe): ............. 37. Is ~e sewer system(s) cuwenfly in use? Yes .... No 38. NOTE: If any water use appli~ce, bedroom or bathroom has been added to the Prope~, the system may no longer 39. comply with applicable sewage tree.ant laws and rules. 40, Is the sewer system(s) in compliance wi~ a~licable sowage treatment system laws and rules? Yes No 41. When was ~e sewer systom ins~lled? ~ Installer Nam~Phone: 42. 43. Where Is ~nk lo.ted? 44. What is ~nk size? .... When was the tank la~ pumped? How often is tank pumped? 45. Where is the drain fi~ld lo.ted? 46. ~at Is the drain field size? 47. Describe wo~ pe~rmed to the system since you have owned t~e P~pe~: 4~. 49. Date work paroled/by whom: .... 50. Is sewer system entirely wEhin Prope~ bounda~ lin~, Including eot back requirement? 51. Is ~e wstem shared? __ __ How many un~s on system ..... Annual fee? 52. ~mments: _ ~. Approximat~ number of: p~ple using ~e Sewor system .... showed/baths taken par w~ak .... wash loads per 55. Die. nco baleen well and sewer system: 56. Have you re~lved any notices from any government agencies relating to the sewer system? Yes NO 57. If "Y~". see affached notice. MN-PSSD (8102) ORIGIN~ COPY TO LISTING BROKER; COPIES TO SELLE~ BUYER SELLING BROKER 03/19/2004 14:21 FAX 763 493 5193 .IENSI~N & SONDRALL. P.A. , CHH CH [~014 Form t519SS {Rev. 8/02) PRIVATE SEWER SYSTEM DISCLOSURE · 8. P-,ge 2 59. Are there any known defects in the sewer system? Yos ..... No __ 60. If yes. pJoase explain ....................... 61. 63. ~~EMENT: (To bo signed at ~me of l/sting) ~. I / We~ller(s o n~dge ~e above Private Sewer Sys~m Dis~osum and ~P and au~oNze L~~-- i_ J==~e 65. info.etlon to p~pe~ve Buyem. ~ (Date) (Sel~r) BUYER'8 ACKNOWLEDGMENT: (To be signed et time of pu~hese ag~ement) I~e, the Buyer(s) of tho P~pe~ acknowledge ~celpt of the Private Sewer System Disclosure and agree ~at no representation 69. r~arding ~e cond~ion of ~e Private Sewer System have been made, oth~ than those ~de above. LISTING BROKER AND 70. LICENEEE8 ~E NO REPRESENTATIONS AND ARE NOT RESPONSIBLE FOR ANY CONDITIONS EXISTING IN THE 71. PRWATE SEWER SYSTEM. 72. (Buyer) W. P~ Enck, Presid~ New Ho~ ~A ~ate) ~er) D=i=l J. Donaue, ~xe¢utive ~u'ector, New I-lope ~-~- 73. SELLER'8 ACKNOWLEDGMENT: (To be $ignod at time of pumhase agreement) 74. AS OF THE DATE OF THE ACCE~ANCE OF THE PURCHASE AGREEMENT, I~e, the Seller(s) of the above Propeay, agree 75. ~at ~e condition oF the pHva~ sewer system is the same as noted above, including changes indicated above which have been 76. initialed and dated, 77. (Seller) (Date) (S~[er) ......... (Date) 78. ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER 03/~9/2004 14:21 F.~[ 763 493 51§3 JENSEN & SONDI?,ALL. P.A. , CN'H CH ~015 t.~ll~l~'" Form 1519 MAP (Rev. 7'/94) PRIVATE ~EWER SYSTEM AND/OR WELL LOCATION MAP This form approved by the Minneeota A~soaation ~LTO~. ~1~ ~ls~aims art~ lia~ili~ aHelno out of use or mi~use of ~is fo~. Date M~ch 2, ~leasc use ~e spa~ ~low to sketch ~e real pro~rty being sold and ~e lo, Uae of each SEWER SYSTEM ._ WELL on ~e Proper[y. (~e~ all ~at apply) 3. InVade app~xima~ dispels ~m flx~ reference poin~ such as s~. buildings aha landmarks. 5. ATTACH ADDITIONAL SHEETS AS NEEDED Seller and Buyer Initial: Seller(si Buyor{s) 7. MN-PSSWM (7/94.) ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER. BUYER, SELLING BROKER 03/19/2004 14:21 FAX 763 493 5193 JENSEN & SONDI~,LL. P.A. , CNH CH ~016 MINNESOTA STANDARD RESIDENTIAL PURCHASE AGREEMENT BEFORE YOU USE OR SI(}N THIS CON'I'I~(~T, YOU SI-IOULD CONSULT WITH A LAW~rER TO DETEI~IVIINE THAT THIS CONTI~CT ADI~QUATELY PROTECTS YOUl~ LEGAL RIGHTS. !. PARTIES. This Purchase Agreement is made on March . 2004. by and bctwcc~ Jose A. Meqdez, a single person, of 5512 Whn~etlca Avenue NorflL New Hope, milmesota 55428, SET,I.,ER, and the Economic Development Authorit~ m and for the City of New I-Iope, a public body corporate and politic under the law,~ of the Rtat~ of Mhmesota, of 4401 Xylon A~nue North, New Hope, Minnesota 55428, BUYI~R. 2. OFFEI~JA(JCEPTA_~CE. Buyer offers to purchase and Seller agrees to sell real property legally described atz That pat-[ or the West 10 acres of [he $outhw~t Quarter o£ the Southwest Qnarler of Section 5, Township 118, l~uge 21, Webi or the Fifth Meridian lyiog Sou£h of the North 513.80 £ee~ front and rear and North o£ the South 7~0.02 feet front a~d rear, being a pari or Lot 38, Anditor's Subdivision Nn~nber 22~, HenneOin Connty, Property Tax Identification Number or Tax Parcel Number 05-118-21-33-0006; located at 55 ! 2 Winnetka Avenue ~Torth, City of New IIope, Cotmty o£I-Ienncpin, S~atc 3. ~CC]~PT~'~rCi~ DEAJDLII~TE. Thc acco-prance (lam of'this Purchase Agreement is the date it is delivered by the last pm-by siEj~ing to the other party. '!"hlx offer tc pur-~as~-m~less-a~cepted-seo~r, 4. PEI~ONE PROPEIi~ AI~ID FIXTUI~ES ~CLUDED ~ SALE. Thc follo~n~ iron of personal prope~ and fixtures o~mt by Seller ~d cu~cmtly located on thc rca1 prope~ are included in this sale: garden cu~a~-~avo~e~ape~ rods, a~ched ligh~g fixtures wis bulb~, plumbing fixt~cs, sump pumps, water heaters,.heating syste~, hea~ stoves, t~place i~e~s. ~eplace doors and ~eenz. built-in h~difiers, built- ~ ak conditioning ~iB. built-in el.c~onic a~ filters, automatic g~age door opener. ~th consols, television ante~as, water sO.Chars, built-in dishwasher, g~bagc disposals, buil[-in trash compactors, built-in ovens and cooing stoves, hood-fans, ~tercon~, installed c~e~g, w~k b~che~, ~ccm~ zyztems, md also the following prope~: ~p~e_r_has ~omed Sell~ he may remove pemn~[fix~r~om the ureters. Seller ~_Ltb~nver's an.rnval be[bre any permanent fixture is reJnoved fi'0~, the nmoS. 5. P~CE A~ TERMS. ~e price for the r~al and p~rsonal pr~erty incl~cd in this sale is ~c Hund~d Fo~-Seven Thous~d ~d 00/100 ~oll~s ($1~7,000.00) whi0h ~uy~ ~11 pay as follows: Earnest money of $0.0~ ~- ~ ~11~r, to ~ d~positud and held by ~ell~r (m~d n~y b~ ~omn~gl~d wi~ S~llor'$ oth~ ~mds) p~nding ~ ~eller's l~er, ~ be d~o~ited ~d h~ld in th~ la~or'~ trust ao~ount pendin~ ~losmg, ~ S~lI~r's broker, m he de~sit~ or held by ~ok~ aooord~g to ~e req~rem~n~ o~Mi~sota Smites, ~ Othm- . ~-..l ........ =clmcv. qmdged and $147,000.00 cash, on . 2004, the Date of 6. DEED~A~T~LE TITLE. Upon penzance by Buyer, Seller shall execute and deliv~ a Oen~al Wa~an~ Deed. joined in by spouse, if any, conveying marketable title of record, subject to: A. ~uilding and zoning laws, ordixmn~gz, zmtc ~d red.al re~lations; Kes~ction~ relating to use or ~pro~xn~nt oF ~c mai ~opc~ without ~tiv~ fo~i~r~ pro~sions: C. ~ese~a~on of any ~neral ~ghts by thc Stoic orMinnesom; D. U~li~ ~d dr~gc cas~mcmts which do not inter/~re ~ e~s~ng improvem~ts; 03/19/2004 14:21 FAX 763 493 5193 JENSEN & SONDRALL. P.A. , CNH CH ~017 E. l~.xcepLions to title which constitute enCtLrnbrances, restr/clions, or easements which have berm disclosed to Buyer and accepted by Buyer in this Purcha~se Agreement: iNlone. 7. REAL F,~TATI~ TAXF,,g ANTI) SPF, CIAI, A,.g,g_F,,NS1VI~,NT,g.. Real estate taxes due and payable in and the year of closing shall be prorated between Seller and liluyer on a calendar year basis to the actual Date of Clos/ng, unless otherwise provided in th/s Purchase Agreement. If tax statements for such taxes arc nol aYailablc on the Date of C[osing, the amount to be prorated shall be ~/~ of fl~e prior year's taxes, and such estirnated iss~anee-of,-the-t~--stat~aen~), Seller r~presents the taxes due and payable m the year(s) 2004 will be deolarat/on-within-.the-time-req.t~-ed--by ?w;;. ~f-the-l~x~s-ii~e-ead-payabte-m,-.the-year-ef-Glosing-ar~-l'-ART-or .......................... o ...... a~e-agte e-dante- ss==clcn cf--~Ae-~o -. ~-~ .......................... a= Selter-s..share-of.-su~h-ta~em. [.~o~i£;,' ~;.~:~ BUY~,R AND SELLER SHALL PRORATE AS OF ~ DATE OF CLOSING r_J'~S .... .' ,-tll installments o$ special assessmes~ts certilied for payment with the S~.I-L-L~Y--g~N DATE ~__4~' · · real estate taxes duc and payable in the year of closing. to,_:,. ....... ~ ~vr~rv~n ~ST v .~_S8 ..12-5~ · ~ELL~R SH~.,L PAY ON DATE OF CLOSING all other special assess~nent~ levied as of the date of tlx/s Purchase Agreexnent. re,_.. ..... ~ ~v~ ~svv ~v~ / .SI~LLER SIIALL PROVIDE FOR PAYI~ENT OF special assessinents pending as el' ~he date of` this Purchase Agreement for improvements that have bccn ordered by thc Cit~, Council or other governmental assessing authorities. (Seller's provision for payment shall be by payment Lx~to escrow of 1-I/2 lixnes the estiinated atnount of the assessments.) As of the date of this Purchase Seller represents that Seller has not received a Notice of Hearing of a new public irnprovemerlt project from any governmental assessing authority, the costs of` which project rn.ay bc assessed against thc real property. ~£ a special assessment becomes pending after the date of this Purchase Agreement and before the Date of Closing, Buyc~ may, at Buyer's option: A. Assume payment oF thc pending s~ecial assessment without adjustment to the purchase price of the real property; or B. Require Seller to pay the pending special assessment (or escrow for paymenl of same as provided above) and Buyer shall pay a commensurate increase in the purchase price of' the real prop~.wt.y, which increase shall be the same as the estimated mount of thc aescsarnmat; or C, Declare this Pure -rase AErccancnt void by notice to Seller, and earnest money shall be refunded to Buyer. ' "'-:" ...... ' ~"'"~-'~' ...... L.~ ~.g .......... SELLER SHALL PAY ON DATE OF CLOSII~IG any deferred real estate taxes (mclucling "Green Acres" taxes under Minn. Stat. 273.111) or special assessments payment of which is required as a result of thc closing of this sale. Buyer shall pay real estate taxes duc and payable in thc year following closing and tl~ereafter and m~y unpaid special assessment~ payable therewith and thereafter, thc payment of which is not otherwise provided herein. Seller makes no representation concerning the amount of future real estate taxes or of future special assessments. 8. DAi~.AGES TO REAL PROPERTY. If the real property is substantially damaged prior to closing, this Purchase Agreement shall terminate and the earnest money shall be rcfhndcd to Buyer. If the real property is damaged mater/ally hut less than substantially pr/or to closing, Buyer may rescind thi~ Pumhase A~reement By notice to Seller within 21 days after Seller notifies Buyer of such damage, during which 21-day period Buyer may inspect the real property, and in the event of such rescission, tho earnest tnoney slmll be refua~ded to Bnyer. 9. SELLER'S BOlJ~q~2~t.Y LINE, ACCESS, I~ES'I'I~.ICTIONS AND LIEN WAI~A~a~ITIES. Seller warrants that build/rigs, il' any, ~m entlrcly within thc boundary lines of thc x~d propm-ty. Seller warrants that there is a fight of access to thc real property fi-om a public right of way. Sellm- wmTm~ts flat there has been no labor or material furnished to the real property for which payment has not been made. Seller warrants that there are no presen~ violations of any restrictions t~iating to the use or improvement et' the real property. These wan-andes shall sir-v/ye the delivery of the Deed or Contract for Deed. 2 03/19/2004 14:22 FAX 763 493 5193 JENSEN & SONDRALL. P.A. , CNH CH ~018 I0. CONDITION OF PROPERTY. A. Seller wnx~c~nts that all appliances, fixtures, heating nnd ~ condttionhxg equip~t~ ~r~Iac~s mechanismg, c~mp~Ts. Quos, and doo~), wiring, and plumbing u{ed and ]~cated on the real prope~ will be ~ wor~g ord~ on the ~ate of Closing. Seller shall ~movc all debts, and all personal propc~ not ~cludcd ~ ~ sale ~om ~he real prope~ bef~e possession ~te. Sell~ has no lo~owled~e of any Dutch e~ ~sease, o~ ~lt, or other disuse of ~y ~ocs on ~c rcul prope~. Seller ~ows of no ~zardo~ subs~ces or petroleum products ha~ng bccn placed, s~r~d, or released g~ ~ on ~ ~ ~op~ by ~y p~rson m violation uf ~y law, nor of ~y ~dersround storage ranks ha~g b~en l~ated on ~e real property aL any time, except ~ follows: C. Scl]cT'S w~fies ~d ~es~o~ c~mined in this p~a~aph 10 s~l s~iv~ the delive~ oC thc Deed cz Ccn~a~o~. ~y action b~ed upon these war--tics and repres~nta~ons must be comm~ccd wi~ two ye~s a~ ~e date ~ w~ch ~e ~uy~ closed ~ ~e p~clmse of ~e real pr~, D. Buy~ sh~l have the ~t to ~ve inspections ogthe property conducted p~or to closes. U~ess requ~ed by local ordi~ces or lending regularly, Seller does not plan to have the pr~y in~ect~d. E. Sta~to~ Disclosure. Ptwsuant to ~innesota S~tes secfi~s ~13.~2 - 513.60 (e~ti~ January 1, 2003), Seller xnnst provide a ~itt~ c~sclosur=.[s~ (1) below], ~ ~uyer m~t ~ve received ins~cfion repo~ [see (2) ~low], or Buy~ ~d Sells ~y wai~ ~ ~i~en di~losure requircmcn~ [see (3) below]. M~eso~ Smites Section ~13.~7, Subd. 2. I,IA~y. A seH~ who f~ to ~ a ~sclosure ~ req~red by sec~ ~13.5~ ~ 513.60 and w~ awar~ u~ ~c ~ondi~on oFthe real prope~ is llable to ~e prospective buycr. p~son ~jt~ed by a ~olafion of ~s section ~y br~g a civil at,un ~d recover ~mages and receive o~r eq~table re,cf as det~ed by ~e ~o~. ~ action ~dec ~s aubdiv~ion m~t b~ commcnccd ~thi~ ~o years a~ the ~te on which t~ prospective buyer closed ~e p~c~e or ~o~ of~e t'e~ prupurty. fSelect only one of thee t]~ree:J ~ (1) Seller's Disclosure. Seller has provided a ~ttcn disclos~e to Buyer. A copy of Sellers disclosure is attached. Seller shall co~ect in ~g ~y macc~acies m ~e disclosure ~ soon as reasormhly possible befo~ closh~g. M~esota S~tut~s S~ctiun ~ 13.~. ~E~RAI, DISCLOS~ Subdiv~ion 1. CONTENTS. (a) Before slg~ ~ a~eem~nt to s~ or ~a~g~r r~sid~ntial ~al p~p~rty, th~ scllcr shall ~k~ a ~i~ ~clo~e to ~e pro~ective buyer. The disclos~e m~: ~clude ~I ~teri~ ~ac~ p~r~inin~ to physical con~o~-~-~e-~pe~ of w~ch ~e seller ~ aware ~t co~d udve~ely and si~2fic~fly affect: (1) ~ ord~ buy~'s ~e ~n~ ~jo~ut of~e prope~; o~, (2) ~y ~t~nded us~ of~e prope~ of which ~ sell~ ~ aw~e. ~) ~c disclosure must be ~ in good Faith and b~sed ~on the best of the seller's ~owledge at the ~me of the M~eso~ ~tes Section 513.~8. ~ND~N'I' TO DISCLOSU~. Ruhdi~si~ 1. NOTICE. A ~cllor n~ust nogfy th~ prospccfvc ~y~ in ~ting aa soon as rc~ombly possible, but xn ~y cvcmt bcrorc closing, ~ ~c 'seller lc~ t~t ~c scuff's d~clos~c r~ed by s~ciio= 513.5~ w~ iimcc~ai~. Subdiviaioa 2. F~ TO NO~Y; LI~I~. A s~ller w~ ~la ~ ~ ~e p~oapec~vc buy~ of any a~men~ to ~e ~fial d~clos~e requked u~er subdivisi~ i ~ ~ble to ~ ~ospecfive buyer as provided m section 513 ~ (2) Inspec~oa ~epor~ Buyur has ~c~vcd ~ inspuction r~ort by a q~lHlud ~ird-pa~. If a copy ct' ~= ~sp=c~on ~D~ is provided to Solid, Scller shall ~sclose to Buyer ~tcna] facts ~o~ to that conti~dict ~y informa~on i~ tho in~uc~ion rc~ort. Min-~sota ~ta~tos Soc~on 513.5~ ~ubd. 3. ~SP~IO~. (a) ~xc~pt ~ provi~d ~ para~ph (b), a seller is ~t ~q~ed to disclose ~o~ ~ls~ lo ~e physical zon~on of thc real pr~=~ if a ~ r~o~ ~t d~clos~ ~e ~o~on ~ beon p~ed by a quali~ed ~d pariy ~d pruvidod io ~c pros~c~v= buyer. ~or pu~os=s offs pa~ph~ "qu~i~ed ~d pa~" ~ans a f~dur~ s~, ol' lo~ ~ovu~n~ a~cncy, or ~y p~on whom ~ scllur, or p~=~v~ buyer, ruasonab]y mvosti~afi~n ~at ~ b=~ conducted by ~ d~'d p~y ~ ordor to prep~e ~= wgi~n r~ort. (b) A seller s~ d~close to ~e prospec~ve ~y~ ~ ~ ~o~ by ~ seller ~at =on~adict any information includod in a written r~ort ~d~ p~d~aph (a) if a oopy of ~ repo~ is provid=d to ~= so,er. (3) Waiver of Disclosure. ~inn~ota Smmt~s Suction 513.60. WA~ER, T~ ~en disclos~e requ~ed ~er secfio~ 513.52 to 513.50 ~y be ~ived ~ ~ s~ll~ m~d ~e prospec~ve buyer a~uu in ~ng, Waiv~ o~ ~e d~clo~re re~ed trader 3 03/19/2004 14:22 FAX 763 493 5193 JENSEN & SONDRALL. P.A. , CNH CH ~]019 sections 513.52 to 513.60 does not waive, limit, or abridge any obligation for seller disclosure created by any other law. Seller and Buyer w~ive the written disclosure required under sections $13..62 to 513.60. ECONOMIC DEVELOPMENT AUTHORITY 12,4 FOR TH]E CItY OF 1,41~W HOPE SELLER: BY: $ose A. Mendez W. l~eter ~a'~ok, SELLER: BY: Daniel ~. ]~onahuc, Executive Director Other than the warranties and represelltations made in this paragraph 10, ~hc property is belng sold "AS IS" with no express or ilnplied represenLations or warrant/es by Seller as to physical colldit/ons, qualit"y of construc[iOT~, workman'al-dp, or fitness for any particular purpose. (This paragraph is not int~-nded to waive or lirmt any provisions of Mhm. Stat., Chapter 327A.) ~1. DIS(~.LOS~]-RE OF NOTXCI~.$. Seller has not received any notice ~o~n any governmental author/~y ~s to violation o/' any l~w, ordinance or regulation aF/'cct/rlg the real property. IF the ~eal property is subject to restrictive covenants, Seller has not received any not/ce fi'om any perso~ a.~ to a ~rcaoh o£ the covenants, Seller hns not received any not, ce From ~ny governnlental a~thori~y concern/n~ any enl/nent domain~ conde~wnai.lon, spec/al taxing district, or rezoninE proceedings. ~ 2. T~FI~-r~-HOUSII~(~. Buyer acknowledges receipt of the T~tb-in-Hou.~ing Disclosure ~port or other ins'~eot/on rcpo~t i£rcqu/red by thc municii~aHty in which the real prope~-ty is located. 13. POSSESSION. S¢llcr shall deli¥~r possession of the propert~ not later than thc Date o/' Closing._bj.l~ IO~n~ accessa~reement trite'red into h~_the.partieS, ~$_~!l_elt..8l~eCS._to ~av all inteI~st, fuc. l ail, I iq~i-.~ ~=*.:-~.l~.::'r= and all char~es for city water, city sewer, electr/city, and natural gas ~hrD_t!Hh. and iI1Gl_Rdillg. ~-_zt-.:-:c: t..c~- -ar~rrr az of :~.c Date of Closing. *SEE ADDITIONAL TERi~S 14. E~III~/ATION OF TITLE. -r-_..~ .................. r.... c,..,, ..... ~*~- iz ~, .~ --.~ t . ~.~ -* ..... a 15. ~TI.1 CO~CTION$ a ~D~S. Seller s~l have 120 c~ys from receipt of Buyer's title obj~c~o~ to ~ rifle ~bl~. Upon receipt of Buy~'s title o~c~ons, S~II~ shall, ~in ten (10) business ~ys, noti~ Buyer of S~ll~'s mt~nfion to ~k~ rifle m~kemble ~ ~ 120 day pc~od. Libras or cncumbr~ccs for liquichted amo~ which can be released by ~aymcnt or escrow from proceeds of closin~ shall not delay the closing. Cure of ~e defec~ ~ Sell~ sh~l be reasonable, diligent, and pro~t. Pendin~ of rifle, ~1 pa~ents requ~ed h~c~ and thc closing s~ll be pos~ned. A. If notice is ~iven and Seller ~kcs titl~ marke~blc, then upon 9rcs~n~tion to Buyer and proposed lender of doo~ta~on establis~E tha~ ~tlc h~ bc~ ~dc mar~blc, ~d if not obj:ctcd to ~ the same a~d mann~ ~ thc od~nal ~itlc objccaons, thc clo~E s~l ~ place wi~n ten (10) business ~ys or ~e scheduled closing date, w~hcv~ i~ later. B. If notice is ~iven and Sell~ proceeds in ~ood rai~ to ~c liflc marketable bui ~c 120 day p~od expires ~thout fitl~ b~i ~de n~kemble, Buy~ nmy decl~e this ~h~e ~cen~ent void by notic~ Seller, nci~ party s~l be liabl~ for da~s h~c~d~r to ~ echo, ~d e~est money shall be re~ded to Buyer. C. If Scll~ does not ~ve no~ce of ~t~on to n~c ~fl~ n~k~blc, ~ if no,ce is ~vcn but the 120 day p~od ex~ires ~thout ~i~c bc~E ~dc m~tabl~ duo ~ Sell~*s faH~e ~ priced ~ ~ood faire n~y s~el~ ~ p~d by ~w, one or lnor~ ofth~ tbllowinE: 4 03/19/2004 14:23 FAX 763 493 5193 JENSEN & SONDRALL. P.A. · CNH CH ~020 (1) Proceed to closing without waiver or merger m the Deed oft,he objections to title and without waiver of any remedies, and may: (a) Seek damal~es, co~s, and reasormblc lawyer's fees from Seller as permitted by law (damages under this subp~l:asraph (a) shall be limited to the cost of' c,,r/ng objections to title, and consequential daxrmges are excluded): (b) IJnclertaice proceedings to correct the objec~ons to tltlc; (2) Rescission of. this Purchase Agreement by notice a~ prOVided herein, in which case the Purchase A/lreement shall be null and void and all earnest money paid shall be refunded to Buyer; (3) Damages fl'om Seller ~:ogether v,-/th costs and reasonable lawyc'r's £ccs, as p~i~ifitted by law; (4) Sp~;iflc pcrformm~ce within s/x months after such riBht oY act/on arises. D. If t/fie is mm'kemble, or is made marketable as prov/ded herein, and Buyer de/hull~ in any o£ thc agreements herein, Seller n~ay elect either of the Follow/n§ opt/oas, as perm/trod by law: (1) Cancel tl~/s coiltl'act as provided by statute and retain all payments n~ade heretutder as liquidated damages. The parties acknowledge the/r in~ention that any note [,,/yen pursuant to this contract is a dov~ payment note, and may be presented for payment notw/thatand/ng cancellation; (2) Seek specific performance within six months after such r/~ht of act/on arises, /nclud/ng costs and reasonable lawyer's fees, as permitted by law. X. If rifle is marketable, or is made marketable as provided herein, and geller defaults in any of the asreements here/n, Buyer may, as permitted by law: (l) Seek damages from Seller including oost~ and reasonable lawyer's Fees; (2) Seek specific performance within six months after such right of act/on arises. 16. N¢)TICE~S. All notices required herein shall be in wr/ting and delivered personally or mailed to the address ~ ~hown at paragrnph I above and, if mailed, are effective as of the date o£rnailing. l~. I~I~WN~OTA LA~. T~Js corem-act ~hal! bo ~ov~Tmod by tho laws of the State of Mimneso~. ! 0. M/~LL DISCLOSURE. /C'hecA o~e n] Seller cezlifies that Seller does not know of anY wells on the real property. ~a Wells on the real property are disclosed by Seller on the attached Well Disclosure t;orrn. 20. SEWAGE TI~EATi~[ENT SYSTEM DII~CTLOSUI:I~. [Check eiti~' A. '~ Scllm- certifies that .qcwa~= generated at tllc l~rop~-rt'y ~ocs to i~ facility p~aidttcd by the Minnesota Pollution Control A§cnoy (for exmnpl¢, a city or n~unicipal SeWCT aystcra). [2 ScllcT ccriifdcs that sewage gcnerated at the property does not go to a Facility peg~ai/tted by the Minnesota Pollution Control Agency and Seller's Disclosure attached (attach form). [Check eithe-~ C or (2. r~ Seller does not know if there is an abandoned indiv/dual s~vaEe system on the property. D. a Sclk:r knows that [h~.Tc [,'trilce one]: ==c/are no abandoned individual sewage treatment systems on the property. If Seller discloses the existence o£ an abandoned indiVidual sewage treatment system on the property, then Minnesota law requires that thc location of thc system be disclosed to Buyer with a map. [Attach 3eller '$ Disclosure of individual ,~'e~vage Treatment System ~vith map completed.] 21. LlgAD I~AJ2NT DISCI, OSI3I~,E. [Check one ofthe follo*uing] [] Seller represents that the dwellirtg was constructed on the real property in 1978 or later. 03/19/2004 14:23 FAX 763 493 5193 JENSEN & SONDRALL. P.A. , CNH CH ~021 ,a Seller r~presents that the dwelling was cons~ed on the real property before 1978. (If such housing is located on the r~al property, attached ~d made a ~g~ of this ~mh~e A~ent is "LE~ P~'I' DDED~ FOR HOUSED CONS~UC~D B~O~ 1978".) ~3. ~LLER'S ~A~. At closing, 8~ller s~ll supplement thc wa~antics ~d r~prescnmtions ~ this ~c~e A~mcnt by executing and dclivc~g a ~sota Unifo~ Conve~ing BI~R [~'o~ 116-M, 117- M, or 118-~] ~da~t of Seller. ~e~-bl~ova~on. /~'tdte other loralion]: ~cw Hope Ci~ Hall, ~01 Xylon Avenue N~ New Hope, Mm~som 55428. At closing, Seller ~d Buyer slmll disclose their Eociai Eecuri~ ~umbc~s or Fcd~al Tax Identification Numb~s ~or thc pu~oses ofcomple~g state ~d fed~l ~ 25. ~DITION~ TE~S: *Buyer shall obtain, at Buyer's expose, a Co~ent f~ ~ O~'s Policy of Title ln8~cc on a cu~ent ~TA fora issacd by an ~r lionized to ~itc tit]~ insurance in Mi~csota. Buy~ slmH be responsible tbr paymcn~ of those costs necess~ to pr~e such Co~ent, ~clu~ng but not li~t~d to abs~ac~g f==s, name s~h f==~, s~ice closes, etc. Buyer ~hal] pay the pre, urn for ~e Foli~y of Title h~urance. Buy~ ~all ~ve ten (10) business days a~ receipt of ~e Co~itmeut fbr Title ~surance ~o pro,de Sell~ ~ a copy ~f ~xe Commitment and ~[[~ objections. Buy~ s~ll be deemed to ~ve waived any fitIc objccfio~ not ~de wi~in ~e ten (10) day period abo~, except that ~his shah no[ operate ~ a w~iv~ of Sell~'s covenant to deli'v~ a s~tuto~ Wa~n~ Deed, ~less a W~ Deed is not ~ecified above. ~ Buy~ obta~s title ~s~e, Buyer is not waiving the right ~o obm~ a good and m~kemble title of record fYnm 26. ~DE~A. A~ched m'e ~ addenda which arc made a p~ offs P~c~se A~ement. 27. ~ IS O~ T~ ~SSENCE, Time is of~e essence f~ ~l pro~sions oftlfis Pm'ch~se Agreement. 28. MULT~LE ORIC~ALg. gellc~ anti Buy~ ~ve ~i~ed ~ o~nals of this ~chase A~eement. }T~S IS A LEG~Ly B~DING CON~ACT. BEFO~ SI~a CONS~T A LAIR. M~csota law p~ lic~s~ ~ =stats brok=rs ~d s~cs ag~n~ to prep~e purchase agreements. No rcco~cmdation or r~cs~fion ~y be ~de by ~y real estate ~k~ ~ sales a~nt as to the leal su~cicncy, file leal e~cg or ~e ~ consequences of this contact. These ~c questions f~ your lawycT. S~L~R: B~R: I a~ee to sell the pro~ ibr ~ze price mad t~l~ I a~-ee to p~cl~e ~e p~pm~ for the p~ce and and condi~ons set f~ above, te~ ~d condi~ons set f~ above. Date: M~ch ,2004. ECONO~C DE~LOP~ A~IIO~Y ~ FOR ~ C~ OF ~W HOPE 1os~ A. Mcn~z Date: Mm-ch_ ,2004. SSN: By: W. Peter Enck, President Date: March ,2004. By: D~el J. Do, hue, Execu~ve D~ector ~i~. Purt.~.e Agreement w~' prepared ~NSEN & SO~L, P.A. 8525 E~zbr~k Crosa~g, S~te 201 Broo~ P~ ~ (763) 424-8811 03/19/2004 14:23 FAX 763 493 5193 JENSEN & SONDRALL. P.A. , CNH CH ~022 O~iters who will tts$1st Seller or Buyer with this La~ for Buv~: Smven A. Sondr~l. ~103391 8525 ~inbrook Cross.g, ~ite 201 Brooklyn Park, Mi~osom 55428 (763) 424-8811 Listing A~ent m~d B~r tbr ~s ~ansaction are: ~/A Sellin~ A~t ~d Bro~r for this ~ans~fion are: ~uy~'s T/fie Insurer: Old ~ublw Nafio~ Title ~s~ce Co,any ~00 Sec~d Av~ue Sou~ Minnea~]is, ~esom 55~01 [1994; Rev. ! 996; R~. 1997; Rev. 2002] 7 · 03/19/2004 14:23 FAX 763 493 5193 JENSEN & SONDRALL, P.A. o CNH-CH ~023 EXHIBIT A ADDITIONAL TERMS RELATING TO PURCHASE AGREEMENT FOR 5512 WINNETKA AVENUE NORTH Buyer acknowledges that it shall be responsible for payment of the State Deed Tax due on the sale of the above property, as well as the cost of securing a title commitment as set forth in the Purchase Agreement. Buyer will also be responsible for all other closing costs, specifically including all recording costs and all costs to seal the water well on the property. Buyer acknowledges that relocation assistance benefits as determined by Evergreen Land Services Company will be paid to the Seller, as required by law, and the differential payment on the purchase of a replacement property resulting from the sale of the subject property shall not exceed the sum of $42,900.00. Seller acknowledges and agrees the determination of moving expenses and closing costs by Evergreen Land Services Company shall be binding on both parties. SELLER: Dated: March ,2004. Jose A. Mendez BUYER: THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE Dated: March __, 2004. By: W. Peter Enck Its: President Dated: March __, 2004. By: Daniel J. Donahue Its: Executive Director P:L~.t~orr~y~AS~l Client File~L2 Cily of New Hope\g9.112~0(M=ndcz)~PA addendum =lo~ing co, ts diff pmt.dac 03/19/2004 14:24 FAX 763 493 5193 JENSEN & SONDRALL. P.A. , CNH CH ~]024 Miller/Davis C;O. ~1) ~t. Paul. MN 051-C-~12-198S ~~' I=orm ADDENDUM TO PURCHASE AOREEMENT DISCLOSURE OF INFORMATION ON LUD-BASED PAINT AND LUD-BASED PAINT H~RDS ~is form app~ by ~m Mlnne~ ~soclaflon of RE~TORS~, whi~ dis~alms any liablll~ a~sing out o~ use or misuse of ~ 20~, M~neso~ ~sociaUon of R~LTOR~, Edina, Date ~ ~cb . ~Q4 .......... Page ...... ~dd~d~ to Purchase A~eeme~t b¢~e~ p~es ~t~d Mer~ . ,2004, pe~g ~o ~e purchase ~d Sector 1: Lead Wa~aing Eve~ purcha.ver of any interest in r~iden~l rea] properO~ on which a residential dwelling w~' built p~or to 1978. a' no~fied that suah proper~ may pr~ent ~osure to lead ~om lead-b~ed paint thal muy place young ahild~ at ~ek of d~veloping lead po~oning. Lead po~oning in young children muy produce pe~anent neu~logtcal damage, including leanting disabHi~'es. reduced intelligence quolien6 beha~,ioral p~hlems, and m~paired memoo,. ~e~ po~oning also po~ a pa~ular r~k to pregnant women. The a'eller t~any inter.et in r~td~n~al real prope~ is required to provide the b~er with any inforrnaa'on on pabst h~a~ ~m r~k ~s~nten~ or i~pec~o~ in the seller~ possession and not~y the b~yer t~ any ~o~ lead-ha~ed paint Sailor's Disclosure (i~al) (a) ~cs~c~ of Icad-based p~t ~or l~ad-b~ncd paint h~ar~ (Gh~ck oa~ below): ~own l~nd-baa~d pa~t ~ Icad-based pabst h~m'ds a~ ~s~t ~ ~ hot~g (~xplahl). Seller h~ no ~owledge of lead-b~ed p~t ~or l~ad-based p~t h~m'~ ~ ~= housing. (b) ~cords ~d repo~ availabl~ ~o ~e aell~r (~hcck ~nc bclow): S~ller ~s provided ~c purchaser with all available records ~d repo~s pe~ininE t~ lead-ba~ed paint and/or lead-based p~t h~ar&n in the ho~i~ (~at documen~ ~ ~e~er ~s no r~po~ or r~cor~ pc~ming to le~d-hased paint ~d/or lead-based p~ hnz~ ~ ~e housing. Purchaser's Acknowledg~nent (initi~) (c) P~c~scw h~ r~ceived copies of all ~o~on listed trader (b) above. (d) ~lrc~s~ h~ received ~e p~pMe~ ~rotect Your ~omil~om Eead i~ Your (e) ~rc~er ~ (ch~k one below): ~e~eiv~d a 10-~y opport~ty (or mut~lly agreed upon pc~od) to ~ondu~t a ~s~ ~sessmcnt or in~ccfion · c presence of Icad-based paint ancot lead-b~ed paint hazards (If checked, see Sec~on H below); W~ved ~e oppo~iW to ~ondu~t a r~k assessment or ~pec~on for ~= preseuc~ of lead-b~ed p~t aa~or lea~ased p~ h~. Real Es~te I,lcellsee's Ach~owledgl~tent (initial) Real es~ licensee has info--ed ~e seller of the sellers obliga~ons und~ 42 ILS.C. 4852(d) ~d ware of lice~ee's ~sp~sibili~ l~ ~ure compH~ce. Certification of Accuracy ~e tbllow~g p~es have reviewed ~e ~lbr~on above ~d ce~, to ~e b~t of ~e~ ~owledge, that thc info~ation provid~ by ~= ~i~ato~ ~ ~e ad a~ate. Jose A. Mendez - ' l//conomic Development Authority in and £or the City of New Hope Seller Date Pua-ohaser Date By: W. Peter l~nck. President t~conomic Development Authority in ~d for the C:l~ oYN~w I Inpe Seller Date P~ha~ , Date By: Dm~iel ~. Donahue, Bxeaufive Di~ctor Real ~state I.icensee Date Real ~state l..icensee Date ~: ~on~gency ~ o~y if firs~ box ~d~ ~urchaser's hc~owledgmeng leR~ (e) above is ch~ ~ con.ct is ~n~Seat upon a ri~k ~s~ssm~nt or an inspection ~f ~ pro~rty for th~ p~s~ ~f~int ~or ~~bn~nrds io bO conduot~ at the purch~er's ~pense. The asses~ll~t or i~mp~fio~mplet~ within ~~~~ ~V~Pt~°c. o~c Purvh~c A~ccm~t. ~~c~d romoved, ~ thc p~n~cr ~117 ~r r~ccn~cc ~si~i~ or ~~ ~ ~cl~r within ~rcc (~)~ul~dur'~uy~ u~cr thc pu~ e~a~e licensee ~si~ng on behalf of m wri~n8 wi~in ~g tim~ ~cificd. TLX:SA LE (9/00) 03/19/2004 14:24 F,~I 763 493 5193 J]ENSEN & SOI~DRALL. P.A. , C~ CH ~025 WELL DISCLOSURE STATEMENT This ~ approved by ~e Mlnn~o~ ~s~iation of R~LTOE~ ~1~ dlsdalms any arising out of uae or misuse oi ~ta fo~. ~ 2003, Minnaso~ ~s~iaaon of REAETORS~, ~ina, MN 1, Date M~h ,2004 2. Page I of Pages: THE REQUIRED MAP IS 3. A~ACHED H~RCO AND MADE A PART HEREOF Minnesota Statutes S~, 10Sl.235 requires that D~ore signing an agreement to sell or transfer real properS, Sailer 5. must dispose informa~on in writing to the ~uyer about ~e s~tus and Io~tion of all known wells on the properW. This 6. requirement is satisfied Dy delivering to the Buyer either a statement by the Seller that the Seller do~s not know of 7. any wells on the prope~, or a disclosure statement indicting ~e legal description and count, and a map showing 8. the location of each well. In ~he disclosure statement the Seller must indiQate, for each well, whether the well is 9. use, not in use or sealed. 10. Unless the Buyer and Seller agree to the contras, in writing, before the closing of ~e sale, a Seller who fails to 11. disclose the existence or known s~tus 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 I~ble to ~e Buyer for coa~ relating to sealing of ~e well and reasonable attorney fees 13. ~r collection ~ cos~ from the Seller, if the action is commen~d within six yea~ after the date the Buyer closed t~e 14. pu~hase of the real prope~ w~re the well is locate. 15. Legal requirements exist relating to various aspec~ of I~tion and s~tus of wells. Buyer is advised to contact the 16. local unit(s) of government, state agency, or Qual~ea ~rofessional w~Jch regulates wells for ~he¢ information about 17. these issues. 18. Instructions for completion of this form are on the reverse side. 19. PROPER~ DESCRIPTION 20. Street Address ~~e~ Avcnu= No~l, ~cw..~_.__ 55~R ~e,meph) _ City Zip County 21. LEGAL DESCRI~ION: ~ of gte West l0 acres...oC th~ ~,~tlhwe, t ~.,~,~r ~C thc ~w~.~ ~ S~ction.5., 24. 25. WEL~ DISCLOSURE STATEMENT 26. (Check ~e approp~ate box.) 27. ~ The Seller cavities that ~e Sell~ does not knew of any wells on the above described rea{ properS. 28. (If ~is option is ~eckad, then skip to the last line and sign and date this statement.) 29. ~ The Seller cedifies ~at the following wells are Iomted on the above des~ibed properS. 30, MN Unique Well Year of Well IN USE NOT IN SEALED 31. Well No, Depth ~n~. Type USE 35. NOTE: ~ee definition of ~ "IN ~," "NOT IN U~," and "~L~D' on lines 83-92. ~ a well is not in use, 36. It must be sealed by a licensed well conVeYor or a well owner must ob~ln a maintenance pe~lt from the 37. Minnesota Depa~ent of Health and pay an annual maintenance fee. Maintenance permits are not 38. transferable, If a well Is operable and properly main~Ined, a maintenance pe~it Is not required. ag. OTHERWE~L INFORMATION 40. Date well w=ter last ~=ted ~r contaminant: .... Test resul~ a~ached? Yes~ No~ 41. Command: 42. Contaminat~ Well: is there a well on or serving the prope~ containing contaminated water? Yes~ NoJ~ 43. S~LED WE~L INFORMATION 44. For eac~ well designated as sealed ~bove, ~mpi~te this section. 45. When was the well seal~? ........... 4~. Who sealed the well? __ 47. was a Sealed Well RepoK hied ~lt~ t~e Minnesota Depa~m~nt of HeaJ~? Yes~ No~ - 48. MAP 49. Complete the a~ched MAP showing the location of each well on the real prope~. 50. This disclosure is not a werran~ of any kind by the Seller(s) or any Li~nsee(s) representing or ~s~isti~ ~y ~. par~/ies in this ~nsacilun, and is not a suDstJtute for any inspections or warranties the pa~/ies may wish to o~taln. CERTIFICATION BY SELLER 53. I ~1~ that the Information provided above is accu~te and complete to the bast of my knowledge. (Seller or ~stgna~d Repr~en~Um) (Da~) (~eller or Oeslgnat~ Represen~Uve) (Date) 55. BUYER'S ACKNOWLEDGME~ W. ~cter Frick, ]~ident, NeW'~-lo~e aDA ~anie] ]. ~oa~ue, ~ecutJ~e ~ector, New Hope (Buyer) (Date) (Buyer) (~ate) 57. MN-WDS-1 (10/03) QRIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER 03/19/2004 14:24 FAX 763 493 5193 JENSEN & SONDI~LL. P.A. , CNH CH ~026 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, clriven, dug, jetted, or otherwise constructed if the 62. excavation is Intended for the location, diversion, artificial recharge, or a~,qulsitJon,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 85. the person ~onstru~tlng the well. If the well was constructed altar this date you sllould have the unique well number in 86. your property records. If you are unable to locate your unique well number' and the well was constructed AFTER 07. January 1, 1975, contact your well contractor. If no unique wall 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 weiJ type. 71. WATER WELL: A water well Is any type of well used to extract groundwater for private or public usa. Examples of 7'2. water walls are: ¢lomestic wells, drive-point wells, dug wells, remedial walls, and municiPal wells. 73. IRRIGATION WELL: An irrigation wall 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. DEWATERIN{,3 WELL: A dewatering well is a well used tO lower groundwater levels to allow for construction or 78. usa 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 usa status of each well. CHECK ONLY ONE (1) BOX PER WELL. 83. IN USE: A wall is "in usa" if the wall is operated on e 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 e 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 wall 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 gO. "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. g2. check the well status es 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 03/J. 9/2004 ~4:25 F~ 763 493 5193 JENSEN & So~;DI~LL. P.A- , C~TH CH ~027 PRIVATE SEWER SYSTEM DISCLOSURE ~ls fo~ approved by ~e Minneso~ ~sociat~o;3 R~TORS~, ~l~ dls~laims any liabili~ aHsi;3g out of uae or misuss of ~is f~- ~ 2002, Minne~o~ A=so~afion of R~LTORS~. Edina, MN 1. Date ........... ~urch ,2004 2. Page I of___ Pages: THE REQUIRED MAp IS 3. A~ACHED HERETO AND MADE A PART HEREOF 5. In ~e Cl~ of__. ~ew ~opc .... Coun~ of Hen~epin --- ~ate of_ . ~eso~ , legally described es follows or 6. at.chad sheet (~e "Prope~') ~~D ~E~ .D~~RIP~ . 7, 8. This disclosure is not a war~n~ of any kind by the Seller(s) or any Licensee(s) representing or assisting any Pa~y(s) 9. ~ansa~on, and is not a subafi~te for any inspe~ions or ~ntles the Pa.(s) may ~sh to obtain. 10. BUYER(S) AND SELLER(S) MAY WISH TO OBTNN PROFESSIONAL ~VICE AND/OR INSPECTIONS 1 t. OF THE SEWER SYSTEM AND TO PRO. DE FOR APPROPR~TE PROVISIONS IN A CONTACT BE~EEN 12. BUYER(S) AND SELLER(B) WITH RESPECT TO ANY ADVICE/INSPECTION/DEFECTS. 13. SELLEr'S INFOR~TION: The following ~eller disclosure satisfies MN. S~tu~s Chaptor 115.55. The ~eller discloses the q4. ~llowIng in~atlon wl~ the knowledge ~at even t~ough ~ls is not a ~n~, p~specfive Buye~ may rely on this Information 15. In deciding whether and on what [e~s to pumhase ~e P~pe~. The Seller(a) au~oHzes any ~ent(s) representing any pa~y(s) in this tmnsacUon to p~vJde a copy of this statement to any person or ent~ in connection With any actual or anticipated sale of ~e Unless ~e Buyer and Seller agr~ ~ t~e ~ontra~ in wHting bofore the closing of the sale, a Seller WhO ~ils to disclose the existence or known s~tus of an individual s~age ~eatment system at ~e ~me of sale, and who knew or had reason to knew of 20. ~e existence or known s~tus of ~e systom, Js liable to the Buyer for cos~ ~latlng to bringing the system into ~mpliance with 21. individual sewage ~eatment sys~m rules and for reasonable a~orney fees for colie~on Of cos~ f~m tho Soller. An scion under 22. this subdivision must be commenced wi~in two years after ~e ~ate on whlc~ the Buyer closod the purchase of ~e real prope~ 23. where ~e systom is located. 24. Legal requirements exist relating to vadous aspects of location and ~a~s of individual sewage treatment systems. Buyer 25. advised to con~ the I0~1 unit(s) of government, s~te agen~ or qualified professional which regulates individual sewage 26. treatment systems ~r ~er Info~ation a~ut these issues. 27. The following a~ TOp.sanCtions made by ~e Seller(s) to ~e extent of the Seller(s) a~ual knowledge. This info.eton Is a disclosure and is not intended to be pa~ of any contact baleen the Buyer and Seller. 29. P~VATE BEWER SYBTEM DIBCLOBURE (CHECK THE APPROPRIATE BOX.) 30. [~' The Seller ce~es that tho ~eller does not know of any private sewer system on or se~Jng ~e a~ve described real 31. pmpe~. (If ~Js o~tion is checked. ~en skip to the last line end sign end date this 32. ~ The Seller ~es ~at ~e follo~ng p~va~ sewer system Is on or sewing t~e a~ove Oescrl~eQ real prope~. 33. ~PE (Check appmpSate box(es) and indicate location on aflached MAP) [ _ ~. [- ] Septic Tank: ~ wEh drain field ~ with mound $ystom ~ seepage tank , . j wl~ open end 35. ~ Sealed ~ystem (holdin~ tank) 36. ~ ~her (D~cribe): 37. Is ~e sewer system(s) curmnUy in use? Yes Nu 38. NOTE: If any water use appliance, ~droom or bathroom has been added to the Prope~y, the system may no longer 30. ~om~ly with appli=able sewage tma~ent la~ and 40. Is the sewer system(s) in compliance wi~ applicable sewage ~ea~ent system laws and rules? Yes No 41. When was the sewer sys~m ins~lled? ~ Installer Name/Phone: 42. 43. Where ia tank Io~ted? ....... 44. What is ~nk size? When was the ~nk Jest pumped? How often is ~nk pumped? ~ 45, Where is the drain field located? . __ 46. What is ~e drain field s~e? ..... 47. Describe work pe~ormed to the system since you have owned the Pmpe~: 49. ~ate wo~ pe~o~e~by whom: ............................... ~0. la sewer system enUrely wi~ln Prope~ bounda~ lines, Including sot ~ack r=qui~mentsT 51. is ~e sys~m shared'?. . How many units on sys~m Annual fee7 52, ~mments: ................. 53. On ~is Pmpe~: ~. Approximate number of: people using ~e sewer system showem~at~s taken per week. wash loads per week ..... 55. Distance baleen well and sewer system: 56. Have ~u received any notices ~m any government agencies relating ~ the sewer system? Yes No 57. If "Yes", see a~c~e~ notice. MN-PSSD (~02) O~GINAL COPY TO LISTING BROKER; COPIES TO SELLER. BUYER~ SELLING BROKER 03/19/2004 14:25 F~ '763 493 5193 ..TEN*SEN & $ONDRALL. P.A. , CN]I{ CB ~]0,?,8 Form 15195S IRev. 1~/02) PRIVATE SEWER SYSTEM DISCLOSURE 50. Are there any known defects in the sewer system? Yes No 60. If yeS, please explain 61. ........ ~3. ~ ~ FR'~ STATEMENT: (To be signed at gms of listing) ~ 64. I / We. ~elle~s) et b~ ~o~ge U~e a~ve Priva~ S~er System Ois~ure and M g roker to dispose this 05. InformaUon to pr~pecflve Buyem. , -- - (Seller) ~ate) (Seller) (~) 57. ~UY~R'~ AGKNOWLEDGMENT: (TO be signed at time of pu~aae ag~ement) se. I~e, ~e ~uyer(s) of the P~pe~ acknowledge receipt of the Pdvate Sewer System Disclosure end agree that nO representation 6a. r~a~ing ~e ~ndBIon of ~e Pd~te Sewer System have been made, other than ~oae made above. LISTING BROKER AND 70. LICENEEE6 MAKE NO ~PREaENTATIONE ANO ARE NOT RESPONSISLE FOR ANY CONDI~ONS ~ISTING IN THE 7~. PRIVA~ SEWER SYSTEM. 72. (au~W. Pcr~ ~nck, P~sidcn~ Ncw I Io1~ RDA (Date} (Burr} Omfiel 3. DenS,us, ~xeculiv= DJr~cLor~ ~w ~opc ~DA (Date) 73. $ELLER'S ACKNOWLEDGMENT: (To be signed at lime of pu~hase egreement) 74. A~ OF THE DAT~ OF TH~ ACC~PTANC~ OF TH~ PURCHASE AGReeMENT, I~e, the Seller(s) of the above ~rope~y, agrco 75. that ~e ~ndlflon of the p~vate sewer system is ~e same as note~ above, Including chang~ Indicated above which have been re. IniUaled and dated. 77. (~elier) (Date) (Seller) (Dam) 78. ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER 03/19/2004 14:25 FAX 763 493 5193 JENSEN & SONDRALL. P.A. , CNH CH ~029 LEGAL D ~ESCRIPTION $$12 WINNETKA AVENUE NORTH NEW HOPE, MINNESOTA 5~;428 That part of the Wcst 10 acrcs of thc Souflxwest Quarter of the Southwest Quarter of Section 5, Township 118, Range 21, West of the Fifth Meridian lying South of the North 513.80 feet front and rear and'North of the South 760.02 feet front and rear, being a part of Lot 38, Auditor's Subdivision Number 226, Hennepin County, Minnesota. 03/19/2004 14:26 FAX 763 493 5193 JENSEN & SONDRALL, P.A. , CNH CH ~030 Miller/Davis Co. ~ St, PatJL MN 6G1-642-1~6 a~l~Og~'""' Form 151~ M~ (Rev. PR~ATE SEWER SYSTEM AND/OR WELL LOCATION MAP ~is form approve0 Dy ~e Ulnneso~ ~so~latlon ~ R~LTORS~. ~lch dis~aims any Iiabrll~ Oa~ ~arch . Page 1 of ........ Pages 2. Pl~se use ~e space bel~ to sket~ the real pmper~ ~ing sold and ~e IO~on ~ ~ch ~ S~ER $YSTEM WELL ot~ ~e Proper~ (~ all t~at 3. In~ude app~lmate dia~s ~m fix~ ~rence poin~ su~ ~ s~e~, buildln~ and 5. ATTACH ADDITIONAL SHEETS AS NEEDED Seller and Buyer Initial: ,Seller(s) Buyer{s) 7. MN-PSSWM (7/g4) ORIGINAL COPY TO LISTINg BROKER; COPIES TO SELLER, BUYER, SI:LLIN/t- BROKER 03/19/2004 14:26 FAX 763 493 5193 JENSEH & SONDRALL. P.A. , CNH CH ~031 M//~NESOTA STANDARD RESIDENTIAL PUR{.~HASE AGREE~NT BEFO~ YOU USE OR SIGN ~IS CONT~C~I', YOU SHOI~D CONSI~.T WITH A LAiR TO DETE~E 'r~T T~S CO--ACT A.DEQUA~LY PKO~CTS YO~ LEG~ ~GH'I'S. 1. P~S. T~s P~e~e A~eesncnt is made on March ,2004, by and be~een Rome R_ I(en~l~ and T~y L. K~sslcr, hushed ~d ~fe, of 5519 Sumter Aven~ No~, New Hope, Minnesota 55~28, and the F~onomic Devel~n~m~t Au~ori~ in and for ~e City of New Ho~, a public body eo~orate and poliac under the laws of ~c State of Mi~esota, of ~01 Xyl~ Argue No~, N~w Hope, Minncso~ 55~28, 2. OF~R/AC~PT~. Buy~ off~s to purch~e ~d S~ll~ a~cs to sell real pmpet~ l~gally described Tract E, R~is~ered Land Survey No. 0097; Prope~ T~ Identification Numbc~ or Tax Parcel Number 05-118-21-33-0084; located at 5519 S~ter Avenue No~h, Ci~ of New Hope, Coun~ of H~mncpin, S~tc of Mi~esota, 55428. 3. A. CCEPT~CE ~E~L~E. ~ accept~ce ~te offl~s ~ch~e A~en~ent is thc ~te it is delivered by the last p~ si~a~g to the other pa~y. ~:. ........... ...... ce. ............ ~ ......... ~ ....... , -...-~.~ .......... -~--~-~'-a .~--~-, :hallbe-void at.-1 ~-~-9 a.m. ,2~d fin .... ~ c~=::: ~' =a:'nc~t money al:all ~ .... e. .... L.., ,.. ~ 4. PRRSON~ PROPERTY ~ F~~S ~CL~ED ~' Sa. The following items of personal prop~ ~d ~s o~ed by Seller and cuw~tly lo~atcd on ~e real prope~ are incl~ed in thio sale: garden bulbs, pl~ts, s~bs, ~ees, sto~ ~dows and insets, stonu doo~, screens, awnings, ~ndow shades, blinds, cumin-Wav~se-d~pe~ rods, a~ached lighting Gxt~cs wi~ bulbs, plu~8 ~es, s~p pumps, water heat~s, heat.lng systems, heating s~oves, ~eplace mse~, fireplace do~s ~d s~rem~, built-in hm~fidifiers, built- m a~ ~on~fionmg uni~, b~lt-h~ electronic air filt~, automatic E~ago door o~ners ~ consols, tele~sion anLc~us, wlttor so~s, built-in ~shwashera, garbage ~sposala, built-in ~aah ~ompactora, built-in owns and cooking stoves, hood-thns, int~co~, ~s~cd ca~ing, work b~noh~s, sectu'i~ systems, and also the following prop~: Buyer has in~ed Sell~ they ]~v ren~o~ ner~anent fixtures fi-om the ~rop.~tv. Seller a~ccs nofi~ aod.~b!a.~..Buy~'s aDDrovaJ~o~e any p~anent fix~e.i~...[~pv~m...~_~[pn~~ fC}:~::a ,~-- ~ ..... ~r,~...f:.. ....... a'~ .... ~..~.._ a~ ..... :~ ,~;_ . ...... ~ .... ~ .......... 7 m ~_ ~hall ucc 5. P~CE ~ TE~S. ~e ~ce for the real and perso~l prope~ included ~ ~is sale is ~e llundred ~ine~-Nine ~o~sand and 00/100 ~oila~ (il OO,000.00) w~ich ~uyer shall pay as ~arnest money of$0.00 ~ t i ~u, LHELE. }!tJ'~2E ~:)':5!~ ~ S~ller, to b~ d~posited nnd held by Seller (and may b~ co~ngled with Seller's other funds) pestling closing. ~ Stilt's la.er, to bc d~positcd ~d h~ld in thc lawyer's tr~st account pending ~ Seller's broke, to be deposited or held by broker accord~g to ~= r~qu~ments of Mi~sota o Oth~ .... ;~+ ~.-...~-~ i: ~---~y =c!~vl=d~cd ~d $199,000.00 cash, on ..... . ................. 2004, the Date of 6. DEED/~~~L~ T~LE. Upon pe~o~ancc by Buyer, Seller shah execute and deliver ~ W~an~ Deed, jo~cd in by spouse, if ~y, conveying mark~mbl~ ~tle of record, subj~t to: A. Buil~n~ ~d zoni~ laws, or~c~s, ~te ~d fed~l rc~tl~tions; Res~c~ns relating to use or improv~nt of thc real prop~w~y ~hout e~ctive [b~i~e pro~islons; ~s~al.ion ora~y min~l ~ghts by th~ State of Mim~eso~; D. Ufili~ and dr~age easements which do not interfere ~th existing improvements; E. Bxcepfio~ to ~tle which co~fimtc encumbrances, resections, or ~semenL~ which have been disclosed to Buyer ~d accepted ~ Buyer ha fl~s P~chasc A~cmcnt: None. 03/19/2004 14:26 FAX 763 493 5193 JENSEN & SONDRALL. P.A. , CNH CH ~032 7. REAL ESTATE TAXES AND SPECIAL ASSES$1VIENTS. Real estate taxes due and payable in and for the year of closing shall be prorated between Seller and Buyer on a calendar year basis to fl~e actual Date of Closing, unless otherwise provided in th/s Purchase Al~-eement. Ii'tax statemen~ for such taxes are not available on the Date of Clos/ng, the amount to be prorated shall be % of the pr/or year's taxes, and such estimated pror-alion ~hall be ~rz-~H.-c z.~c~ leULL AND FINAL BE'I~V'EEN SELLER AND BUYER./-AD~4/~D-~rI'O."'. .......... ~ ~- -~ 4~ ..... s.~_ ~*-.~.c7 i;art~' '-':'~-:'- ~ 6r-edi-t-a~ a .-~tt-.of-the-~iju=_+~-..==-.~. =?-._!! ::cci-.-: 'J:c ........ .-..' .m.:=.. =.-a_!: ....................... --.: ......... ..... ~.~ *~-...~ ............. ..~ ....~...~...~.x Seller represents the ta~os duc and payable in thc yoar(s) 2004 will be FULL, ~-~=12~4;~-homestead classification., '--'nlc~ ~ ~ =~::-"-i;c: *~' * ~ z= ......................... ., ........... o- r-at-cl:=i:~ , ~dt~x:~ B~R ~ SELLER SHALL PRO~ AS OF T~ DATE OF ~O~G / SELLEE ~.~ ~ ~ .... ~ -~ ........................ ~ ~ ~ ~ ~ ~ ~ ~ ~ all ins~llments of speci~ ~sessnaents c~i~ed ~or payn~e~t with the real esta~ ~es due m~d payable in th~ year or closinE. assessments le~ed as o~e ~ offs ~s~ Agreement. [.~1~!:~: on~--B~EH ~v~ .~55~ / SEL~R S~&L PIiO~E FOIl PAY~NT OF special assessnzen~ pen~g as of the ~te of this P~c~sc A~cc~nt for im~ovments t~t ~ve been ord~ed by ~e Ci~ Council or o~ gove~tal ass=~s~g auEorittes. (Seller's provision tbr paym~nl shall ~ by paymcml into escrow of 1-1/2 ~s ~e es~ted amount of the as~ssm~ts.) ~ of~e date offl~s ~e A~eement, Seller represents that Seller h~ not received a Notice of Hea~ng of a new public ~pmvement project ~om ~y gov~t~ assessi~ aurora, ~e cos~ of which project may be assessed against ~c real propc~y. If a special ~scssmcnt becomes pend~E a~er the date of ~s P~hase A~eement ~d before ~e Date of Closing, Buy~ ~y, at Buyer's op~on: A. Assume paymcn[ of ~e p~dm~ special assessment ~out adjus~ent to ~e p~chas~ pace of fl~e real prop~; or ~. Require Sell~ to pay the pending special assessor (or escrow t~r paylnent of same as provided and Ruy~ sh~l pay a co~ensu~te ~c~ase ~ ~e p~c~se ~ce of ~ ~ ~op~, which s~H be fl~e s~e as ~e estimated amount of thc asscss~cnt; or C. Decl~e ~lis Purch~e A~eemm~t void by notice to Sel]~, and earnest money shall bc refunded to Buyer. ro,..:~_.. ;ac~ ~v~ o~v ~ ~ ~~ SELLER S~L PAY ON DA~ OF CLOS~G any defied re~ estate tax~ (m~luding "~==n A~s" taxes mxder Minn. Stat. 273.1 l l ) or s~eclal asscssm~ pa~cnt of which is required as a result of thc clos~g of ~s sale. Bt~ shall pay ~al estate t~es due ~d payable ~ ~e ye~ follo~g closing ~d ~ea~ ~d m~y ~paid special ass~ssinen~ pa~ble there~h and thereafter, thc pa~cmt or w~ch is not o~e~se prodded h~ein. Seller ~es no rep~s~mfion con~g the ~o~t of fu~'e real esta~ ~es or of ~ special ~sessments. 8. DAMAGES TO REAL PROPERS. If the real prop~ty is subs~fi~ly ~g~d p~or ~ clos~g, ~c~se A~eem~t s~ll t~ate ~d ~e earnest money slmH be rended m Buyer. If ~e real prope~ ~ma~ matc~ly but l~ss ~ substantially p~or to closing, ~uyer may rescind this Purchase A~eement by notice to Seller ~ 21 days ~ Seller notiiies Buyer of' such da'ma~e, duri'ng which 21-day period Ruycw in~e~t thc real prop6~ty, and ~ ~e ev~ of such rescission, ~e e~esl money shall be re~nd~d ~o B~yer. 9. SEWER'S BOlDlY L~E, ACCESS, RES~IC~ONS A~ LIEN W~~S. Scll~ wa~n~ tht b'uil~n~, iF any, ~ ~ely wi~m ~e boun~ ~ez of ~e ~al p~p~. S~II~ w~t~ that thc~ is a ~t of access to ~e real prope~ from a public ~ of way. Scllc~ w~ts ~t there ~s been no labor or ~t~ial ~nished to ~e r~al ~op~rty for wl~ch pa~z=nt lms not been l~de. Seller ~rrants that th(re are no present ~ola~ions of ~y resections relate to ~e ~e or im~ovem~t of ~e real pr~. These wa~es sh~l s~ve ~e deli~ of the Deed or ConLract for Deed. 10. CO~IHON OF PROPERTY. A. Seller w~r~ts flint all appliances, fixtures, heating and air condi~omng equi~t, ~places (including mcch~s~, dampers, flues, ~d doo~), ~ng, and pl~bmg used ~d located on the real pretty ~ll be m wor~ng ~d~ on ~e Date of Closing. Seller s~ll remove ~1 debts, and all ~so~l p~p~ not included ~ ~s ~le ~om ~ real Dr~ bef~e possessimz ~te. Seller lms no knowledge of any Dutch elna ~seas~, o~ wilt, or o~er disuse ofan~ ~ccs on the real ~ope~. 2 03/19/2004 14:26 FAX 763 493 5193 JENSEN & SONDRALL. P.A. , CNH CH ~1033 Seller knows of no hazardous substances or potrO1cum products having been placed, stored, or released ~ or on ~e r~ ~p~ by any person in ~olation of any law, nor of any underground storage tanks ~g b~ located on ~ ~al prop~ at ~y ~, ex~t as ~ollows: Hon~. C. Scll~'s w~tics ~d ~res~o~ c~in~ in ~s p~a~ph 10 sh~l s~ve Dc~~~~. ~y action based upon these ~rl~ntics and r~cs~tations must bc con, ccd wi~ ~o years a~ thc dase on which the Buyer closed ~ ~e purchase of thc r~al prope~. D. B~y~ s~ll have ~e ~ght to have ~pe~o~ of~e pr°pe~ oonduo~d prior to closing. Unless required by local orates or l~g re~lations, Sell~ does not pl~ ~o ~ve ~e propc~ m~ccted. E. S~mtou Disclosure. P~suanl ~o Mi~csoa $amtcs s~ons ~13:52 - 513.60 (cffcctiv~ ~anua~ 1, 2003), Seller m~t pro~d~ ~ ~tt~n disclos~ [scc (1) bclow], or Buyer must have r~cci~d an hxsp~on ~po~ [s~ (2) ~low], or Buyer and Seller ~y waive ~e ~ disclos~c rcquir~ts [see (~) ~ow]. ~cso~ S~mtcs S~on 313.~7, Subd. 2. L~I'I'Y. A scH~r who l~fls to ~c a disclosure ~s required by secgons 513.~2 to ~13.60 ~d ~s aware of~e condi~on of~e real pl-ope~ pcnon injurcd by a ~ola~on of ~s set,on ~y b~g a ci~l ac~on ~d ~cov~ ~ges ~d receive other cq~mblc rcHcr~ dc~in~d by the co~. ~ ac~on under ~s ~ub&~ion must be commenced ~t~ ~o yc~s ~r ~ ~e on w~ch ~e prospccgvc buyer closed the purch~e or ~er of~e r~ prope~. [Selec't o~ly one of th~e ~ (1) Seller's Disclosure. Sc~ ~s prodded a ~cn ~sclos~e m Buy~. ~ copy of' Seller's ~sclosu~ is a~ched. Seller shall co~cct ~ ~g ~y inacct~acics ~ ~c disclo~t~ as soon as reasonably possible befo~ olosing. M~czom S~mms Sec~on S 13.55. GE~L DISCLOS~ ~Q~~S- Sttbdi~ion 1. CONTE~S. (a) Before si~ng an a~ee~n$ to sell or ~a~fer ~sid~n~ rcul propcz~, ~te seller shall ~c a writ[~n disclos~e m ~ prospec~ve buy~. ~c d~clos~e m~t ~lude all ~t~rial facts p~l~h~ini tO advc~ physigal condi~ons ~ ~e propc~ of w~ch ~e se~er ~ aw~ ~t co~d adv~scly ~d si~can~y affect: (1) a orginsry buyer's ~c and enjo~ent of the pr~; (2) ~y ~te~ed ~e of~ prope~ ofw~ch ~c scHcr is aw~g. (b) The disclos~e m~t be ~dc ~ good f~i~ and based upon the best of ~ seller's ~owlcdgc at ~l~ ~m~ of thc disclos~c. ~csota S~tes Section ~13.58. ~~ TO D~CLOS~E. Subdi~sion 1. NOTICE. A sell~ mt no~ ~ prospcc~ve buyer ~ wring as soon as ~aso~bly pos~ibl~, bm m any event before closing, if~e seller lea~ ~t ~ seller's ~sclos~e reqt~r~d by sec~on ~13.S~ was ~taccm~te. Sub,vision 2. F~ TO NO~; L~~. A s~Hcr who ~ to a~ndmcn~ lo t~ ~ ~s~losurc rcqui~d un~r subdi~sion I is liable to s~c~oa ~ 13.57. ~ (2) ~specfion Repo~. Buy~ ~s received an in~ec~on rcpo~ by a q~lificd fl~rd-pa~, ff a copy of ~e inspection rcpol$ is ~o~dcd ~o Seller, Scll~ s~ll disclose to Buyer ~tenal facts ~o~ to Scllcr ~t con~ct any mf~tion m ~c m~cc~on repo~. Minneso~ ~mtes Sec~on 513.~6 Subd. 3. INSPEC'I1ONS. (a) Except as pro~d ~ pa~aph ~), a seller is not requ~ed to d~close ~o~on re~g $o ~e physical co~i~on of ~ r~ prop~y ~ a ~$~ r~o~ that disclo~s the info~a~on has be~ prepared by a qualified ~d pa~ ~d ~o~d~ ~ ~e prospec~vc buyer. For p~s~s of ~ p~a~aph, "q~lificd ~ird parW" means a federal, state, or local gov~n~ a~c~cy, or ~y person whom ~c seller, or prospcc~vv buy,r, rc~onably behev~ ~s ~ expe~c nec~ss~ ~ ~t thc ind~ s~r~ of pruc~cc for inves~on ~at ~s be~ conducted by ~e ~d p~ m order ~ prep~ ~e ~ repo~. ~) A seller s~ll disclose to ~c pro~cc~vc buyer ~te~al ~cts ~ by afor~tion ~ludcd ~ a ~cn rcpo~ under para,apb (a) ifa copy of~c r~o~ ~ prodded to ~e seller. (3) Waiver of Disclosure. ~in~esota Statures Sec~ou 513.60. W~R. ~c wri~cn disclosu~ required un~r scc~ons 513.~2 ~ ~13.~0 may bc ~vcd ff ~ seller a~ t~ prospec~e buyer a~r~c ~ w~'it~g. W~ivcl' of ~c d~clos~c rcqu~cd under sccfio~ 513.52 to 513.g0 do~ ~t w~ve, ~L or ab~dge any obhga~on for seller ~sclo~rc created by law. 03/19/2004 14:27 F~[ 763 493 5193 JENSEN & S0NDI~ILL. P.A. , CN~ CH ~034 Seller and l~uyer waive the written disclosure required under sections S13.52 to $13.60. ECONOMIC DEVELOPMENT ALrrI-IORI'TY IN AND FOR TI-II~ CIX'Y OP' NEW I-lOPE SELLER: BY: Rome R. Kessler W. Peter -,~nck, President SELLER: BY: Tarnmy L. Kessler Daniel J. Dormhuc, ~,,x¢cutiv~ Dirc~Lor Other ~ thc wart-antie-~ and repre-~entut/ons made in this paragraph 10, thc property is being sold "AS IS" with no express or implied representations or warranties bY Seller as to physical conditions, quality of construction, workmanship, or fitness for tomy particular purpose. (This paragraph is not /ntcnded to waive or limit any provisions of Minn. Stat., C,~hapter 327A.) 11. DISCI,OSIYRE OF NOTICES. Seller has not received any not, cc f)om any governmental authority as to violation of any law, ordinance or reg,,letion affecting thc real property. If the real property is subject to restrictive covenants, Seller has not received any notice ffo~n any person as to ~ breach of the covenants. Seller has not received any notice from any governmental authority concerning any eminent domain, condcmation, .~pccial 'taxing district, or rezoning proceedings. 12. TRUTH-IN-HOUSING. Iluyer acl~owledges receipt of the Truth-in-Housing Disclosure Report or other inspection report if required by thc nmm/cipaIity in which the real property is located. 13. POSSESSION. Seller shall deliver possession of the property not later than the Date of Closm~ and all charges for city water, city s~we~, electr/city, and natural gas t_l~_ough and includip~ ~ :.:: -=:~.i:: ~ cfi the Date of Closing. *SEE ADDITIONAL TERIVIS 14. EXA1VIINATION OF TITLE. T~- ~:..-:~..-:z~.~--.:: +'..~:'. £:ller'z fi:l.~ i: goo?-. --.--;d ~.=aek=lab!= cf r=ccrd., -.;-/:him a ., ................ '.C- '" .~[,' . .... ~..=.,.._.-.~. x.¥a..~.._=.~. ~r-,ccd, ..-~--- = x,~ ~ r~, .... ~ ia -'-' ~,~....:a~., ..~- ..... ,* ~, J ............... 1-~. TITLE CORRECTIONS AND REMEDIES. Seller shall have 120 days ~om receipt of Buyer's written title objections to make title marketable. Upon receipt of Buyer's tide objections, Seller shaIl, wiflTh~ ten (10) busincss days, notify Buyer of Seller's in~cntion Lo make title marketable within the 120 day period. Liens or c~cumhrances tbr liquidated an~ounl~ which can be released by payment or escrow from proceeds o£ closin~ shall not delay the closinE. Cure of the deflects by Seller shall be reasonable, diligent, and pron~pt. Pendm~ correction of title, all payments required herein and the closinE shall be postponed. A. I_fnotice is ~iven and Seller makes title naarketablc, then upon presentation to [~uyer and proposed lender of documeatation establishinE that title has been nmde markctablc, and if not objected to m the same time and n~nn~r as thc ori~,ir~l titlc objections, ~he closin~ ~hall talce piece within t~m (10) busines.~ days or on thc scheduled closinE date, whichever is laLcr. 1~. Il'notice is Eiven and Seller proceeds in ~ood faith to tnake title marketable but the 120 day period expires without lifle beinE made marketable, Buyer may declare This Purchase Agrcem~-nt void by not/ce to Seller, neither party shall be liaole ibr damages heretu~der to ~he other, and earnest money shall be refunded to Buyer. C.. Ti' Seller does not E/ye notice off intent/on to nmke title ~narkel~ble, or if notice is ~iven but the 120 d~y period expires wilhout title heine made marketable due to Seller's failure Lo proceed in good faith, Buyer may sock, a~ pcrrniLtcd by law, one or rnorc of Lhc t'ollowi~g: (1) Proceed to closing without waiver or mer~er in the Deed of the objections to title and v~ithout waiver of any remedies, and nlay: 4 03/£9/2004 14:27 FAX 763 493 5193 JENSEN & SONDRALL. P.A. , CNH CH ~035 (a) Seek damages, cost~, and reasonable lawyer's fees from Seller a~ perrnit~ed by law (damages under this subparagraph (a) shall be l/m/ted to the cost of curing objections to title, and consequent/al damages are excluded); or C°) Undertake proceedings to correct the objections to title; (2) Rescission of this Purchase Agreement by ~otice as provided here/n, in which case the Purchase Agreemenl shall be nulJ and void and all earnest money paid shall be rexeunded to Buyer; (3) Dances Crum Seller to/~ether with costs ~nd reasonable lawyer's tees, as pen~/ttcd by law; (4) Specit]c perCor~ancc x~/thin six months after such r/ght of act/on D. /_~ t/tlc is marketable, or is madc marketable as provided here/n, arid ]~uycr dc/~a~lts in any of tl~c a~rcerrtcn~ h~-rein, Seller may elect either o£ the following options, as permitted by law: (1) Cancel this contract aa provided by statute and retain all payments made hereunder as liquidated t~ges. The parries acknowledge the/r i~tent/on that any no~ ~¥en pursuant to th/s contract is a dov~ payment note, atxd may be presented for pa~rrner~t notwithstand/ng cancellation; (2) Seek specific performance within six months after such right o£ a~t/on arises, including costs and reasonable lawyer's fees, as perm/tted by law. E. If title is mark~labl~, or is made marketable as prov/ded here/n, and Seller defaults in any of the agreernent~ h~rein, Buyer lnay. m~ permitted by law: (:l) Seek specific pcr£ormance within six months after such right of acc/on arises. 16. NOTICES. All notices required h~:reln shall be in writing and delivered p~rsonally or n~ailcd to the ad,h-ess as shown at paragraph 1 above and, if mailed, are effective as of the date oFmailing. 18. MI_NN~SOTA LAW. This contract shall be governed by the laws of the State of Minncso~. 19. WELL DISCLOSURE. [Check one of the following] [] Seller certifies that Seller does not know of any wells on the real property. ~ Wells on the real property arc disclosed by Seller on thc attached Well Disclosure Form. 20. SEWAGE TREATMENT SYSTEM DISCLOSU]U~. [Check either A or BJ A. ~ Seller certifies that sewage generated at the prol~rW goes to a facility, permitted by the Minnesota Pollution Contxol Agenvy (for exan~ple, a city or municipal sewer B. n S~llcr certifies ~hat scwag~ generated at thc WopcrO~ does not go to a fhcil~t~ pem~itted by Minnv~ota Pollution Control ~cncy and Svller's Disclosur~ o£ Individual Sewage Trc~mc~ut System is attached (a~ach £orm). [Checl¢ effher C or C. [] Seller- does not k~ow if there is an abandoned/ndividual sewage system on the property. D. ~Seller knows that there [.etrike one]: ---:'cJare no abandoned individual sewage t~'eatment systems on the property. If Seller discloses the existence o£ an abandoned individual sewage treatment system on the prop~.-rty, then Minnesota law requires that the location o£ ~he system be disclosed to Buyer with a /Attach ,~'e/ler '$ Disclo,vure of Individual ,~ewage Treatment Sy, vtem with map ¢otnpleted. J 21. LEAD PAINT DISCLOSIYRE. fCheck one of the following] El Seller representa that the dwelling was cormtrucWd on thc real propcrty in 197g or lat~'r. 03/19/2004 14:27 FAX 763 493 5193 JENSEN & SONDP~LL. P.A. , CNH CH ~036 [] Seller represents that the dwelling was construed on the real property before 1978. (If such housing is locat~l on thc real property, attached and made a part of this Purchase Agreement is "LEAD PArNT ADDENDUM FOR ItOUSING CONSTRUCTED BEFORE 1978".) ~;.-: ........... .::--- ,t ............. 23. SELLER'S AFI~II)AVIT. At closing, Seller shall supplement the warranties and rcprascntations in this Purchase Agreement by executing and cl~]ivm4ng a Minnesota Uniform Conveyancirig ]=llank [Form 110-M, 117- M, or 118-1vrJ Affidavit of Seller. 24. CLO$1II~IG. Closing shall be at a~eeable !cc:~c-a. [State otAer location]: New Ilope City Hall, 4401 Xylon Avenue Nm~th, New Hope, Mirmcaota :55428. At closing, Seller and Buyer shall disclose thcir Social Secm-ity Numbers or Federal Tax Identification Numbers for thc purposes of completing state and federal tax forms. 25. ADDITIOI~IAL 'I'~RMS: *Buyer shah ob'lain, at Buyer's expense, a Commitment for an Owaaer's Policy of Title Insurance on a corremt ALTA form issued by an ilasurer licensed to write title insurance in Minnesota. Buyer shall be responsible iht payment of those costs necessary to prepare such Commitn~ent, including but not limited to abstracting fees, name search fees, service charges, etc. Buy~,~r shall paX tho premium for the Ovener's Policy of Title Insurance. Buyer shall have ten (10) business days ai~er r~ceipt of the C. ommitment fbr Title Insurance to provide Seller with a ~opy of thc Commitment and written objections. Buyer shall be dcen]ed to have waived any title objections not made w~thin the ten (10) day period above, except that this shall nol operate aa a waiver of lS¢ller's covenant to deliver a statutory Warranty Deed, unless a Warranty Deed is not specified above. If Buyer obtains title insurance, ISuyer is not waivh~g the right to obtain a good and marketable title of record fkom Seller. 26. ADDW. IWDA. ~ttached are _4 addenda which are made a parL of this Put-hast Agre~rn~t. 27. TIME IS OF ~ IiiSSF_A~ICE. Time is of the essm3ce for all provisions of this Purchase Agxeement. 28. MULTIPLE ORIGINALS. Seller and Buyer have signed ~ originals of this Purchase Agreement. TL[IS I$ i LEGALLY BINDING CONTI~CT. BFF01~. $IG1WING~ CONSTULT A LAW~I.R. Minnesota law pcrmim liccns.cd real estate brokers and sales agents to prepare purchase agr¢~naenta. No recommendation or representation may be made by any real estate broker or sales agent as ~o the legal sufficiency, the legal c£fect, or the tax COIlSequcxlCeS oftltis contras~t. Thcsc art: ClU~S£1ons for your lawyer. SELLER: I~UYig, R: I agree to sell the property for thc price and tcrrns I agree to purchase the property for the price and and conditions set fo'rrb above, terms and conditions set forth above. Date: March .., 2004. ECONOMIC DI~VI~LOP1VIElxrT AUTHORITY IN AiNrD FOR ~ CITY OF NEW HOPE Rome R. Kessler Date: March , 12004. By: Date: Mar~h _~_, 2004. W. P~tcr Enck, Prcsidont Date: March ,2004. Tammy L. Kessler SSN: By: Daniel J. Donahue, Executive Director This Purchase AR'reement ,nas prepared by: JENSEN & SONDR.A.LL, 859.5 Edinbrook Crossing, Suite 201 Brookl3na Park, MN 55443 (763) 424-8811 6 03/19/2004 14:28 FAX 763 493 5193 JENSEN & SONDRALL. P.A. , CNH CH ~037 Others ~fho will assist SeiZer or Buyer Pith this transaction: Steven A. Sondrall, ~103391 852~ ~dinbrook Cross/nE, ,~uit~ 201 Broo~yn Park, Minnesota (763) 42~-8811 Lis~in~ A~m/and B~k~ for ~s ~sacti~ are: N/A Sell~g Ag~t ~d Br-o~ for this ~ansac~on a~: Buyer's Title ~s~: Old ~public ~atlon~ Tide ~surance C~pany 400 Second Av~g Sou~h Mi~capolis, Mi~esota 55401 [1994; ~6v. 1996; ~gv. 1997; Kev. 2002] 03/19/2004 14:28 FAX 763 493 5193 JENSEN & SONDRALL, P.A. ~ CNH-CH ~03S EXHIBIT A ADDITIONAL TERMS RELATING TO PURCHASE AGREEMENT FOR 5519 SUMTER AVENUE NORTH Buyer acknowledges that it shall be responsible for payment of the State Deed Tax due on the sale of the above property, as well as the cost of securing a title commitment as set forth in the Purchase Agreement. Buyer wilI also be responsible for all other closing costs, specifically including all recording costs and all costs to seal the water well on the property. Buyer acknowledges that relocation assistance benefits as determined by Evergreen Land Services Company will be paid to the Seller, as required by law, and the differential payment on the purchase of a replacement property resulting from the sale of the subject property shall not exceed the sum of $25,900.00. Seller acknowledges and agrees the determination of moving expenses and closing costs by Evergreen Land Services Company shall be binding on both parties. SELLER: Dated: March ,2004. Rome R. Kessler Dated: March ,2004. Tammy L. Kessler BUYER: THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE Dated: March __, 2004. By: W. Peter Enck Its: President Dated: March ,2004. By: Daniel J. Donahue Its: Executive Director P:~AUOrI~y~SA~ 1 Clie. m Fil~ City of N~w H~pe'~99.11308{K~i~r)\pa addendum r. lo~ing ~:ml~ a~l dill pml..do~ 03/19/2004 14:28 FAX 763 493 5193 JENSEN & SONDRAL~. P.A. , CNH CH ~]039 ~E~' Form 1519Y ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON LSD-BASED PAINT AND LSD-BASED PAINT H~RDS ~is ~rm app~ by ~e Uimle~o~a ~ocia~on REALTORS~, whl~ disclaims any liabiliW a~sing out of use o~ mlsusa ~' ~is ~rm. ~ 2000, Minn~o~ ~g~afion of R~TORS~, Edlna, MN Da~ ~ ...... Page Addendm to ~ch~e AE~zcnt bc~e~ pa~cs dated .... ~__ ,2004, _~ pez~n~ [o rite purchase and sale ot'~e ~pe~ at 55 lQ S~~..~orlh: ~ew_~o~ 5~428 Section 1: Lead Wa~iag ~tatement Every purch~'er of any inter~t in r~id~l real property on ~,hich u r~eiden~l dwelling w~ built prior to 1978, ~ ~ot~ed thai ~'~ch prop~ mq pr~ent ext~osure to lead ~om lead-b~'ed paint that may place young chtldren at risk of dev,.loping lead poia'oning. Lead paganini in young chtldrett may pfoduce pe~anent neurological damage, including learning reduced intelligence quotient, behavioral probl~~, and impatred memo~. Lead po~son~ng a~o po~ a particular r~'k to preg~tant women,. ~'he seller of any interest in res'idential ~al proper~ ~ required to provide the buyer with a~y in~ma~'on on lead-based pttinl ht~ardz' ~om ~$~ assessment' or t~rpec~o~ tn the seller~ possession and not~ th~ buyer nj*any ~own lead-based point ~ards. A r~'k ~'s~a'zm~t or i~e~ec~on for pox~ible lead-based paint h~ar~' ~ r~omme~ed prior to Seller% Disclosure (~fial) (a) ~ese~e of lead-b~ pa~t ~or Icad-based paint ~zards (check one below): ~no~ lead-b~ed pa~t ~tlr lcad-b~sed p~t hazar~ ~ present ~ ~e ho~E Seller h~ no ~ow]edEe of lead-based pa~t ~or lead-based p~t ~ in the housm~. Records ~d ~po~s available to ~e seller (check on= b~low): Seller ~ p~vided ~e p~c~ser wi~ all available records and r~o~ pe~s to lead-b~ed ps~t lead-based p~t h~ ~ thc homsin~ (list documents below). ~ Sell~ ~ no ~epot~s o~ ~ords p=rtainin~ to lead-b~ed pa~t ~or leadgbased paint ~ ~ -~"ho~s~. ~urcha~cr's Ac~owled~ent (c) P~'c~ser ~ received copies of all mfo~a~on listed ~d~ (b) above. (d) Purchaser ~s rccmved ~e pamp~et ~otect Your ~amiiy~om Lead in Four ~ome. (c) Purchaser has (check o~ below): Received a 10-~y o~orm~ (or muSHy agreed upon period) to condu~t a ~sk ~ae*sment or inspec~on ~e presence of lead-bas~d pa~t mx~or lead-b~cd paint h~r~ (If checked, see Sec~on H be/ow); or Waived the o~o~ to conduct a flak assessor or ~p~ion for ~e pa'~seuc~ of lead,b~ed pa~t ~or lea~aaed p~t ~. Real Estate Licensee's A~owledgment R~al =amt~ H~== ~s ~fo~cd thc s~llcr of the s~ll~s obligations und~ ~2 U.S.C. 4852(d) and is w~c ofliccnscc's rc~onnibiH~ to ~sure compliance, C~l~eation of Thc following partica have review~ ~e mfo~adon above ~d cc~y, to ~e b~t of ~e~ ~owledge, that th~ relocation provided by ~ si~to~ ~ ~e ~d accuray. Rome R, Kessler Economic Dcv~opm~t ~u~ofi~ m ~d for ~c Ci~ of New Hope Seller Date ~rchaser Dat~ By: W. Peter ~c~ Presiden~ Tammy !.. K~nnler Economic Developmen~ Auihori~ in and for the CiW of New Hope Seller Date P~chaser Da~e ~y: Daniel J. Donahue, Exacutive k/state Licensee Date Real Estate [,icense¢ Date ~: Contingency (Initial only if first box under Purchaser's Acklaowledgment lc~¢r (c) above i~ ~~~- ~nu'~t is ~nting~t upon a risk ~s~m=nt or un in,python of ~c oro~r~y for thc p~scncc ~d~p~nt ~d/or I~~t ha~rds to bc co~ucrcd at ~c purch~er's ~pc~ac. The assesm~cnt or i~p~~c ~m~ct~ w~h~ ~ ~ ~~ day~ ~r uc~cptunc~ o~ ~c Purch~c A~ccm~t~~mcd removed, and the ~e~ ~ f~l fo~ ~d cffc~ unlcss purch~~~te li~e ~g o~ ~alt' purchas~ deliver~ to s~ler or rea~l~e ~si~~f ~~ ~cc (3~ca]cndar~a~ aftgr thc copy or ~y ri~ ~s~mt or ~~~~3) ~l~ndar tha punch ~X:SAI.~ (9/00) 03/19/2004 J. 4:29 FAX 763 493 5193 JENSF-~T & SONDRALL. P.A. , CHH CH ~]040 WELL DISCLOSURE STATEMENT This ~rm approved by ~e Mlnneso~ As~oclatlon of REATOR~, ~i~ disdalm~ any liabili~ a~ing out of use or mi~u~ u~ this 1. Date M~ch ,2004 2. Page I of . ~ag~a: THE REQUIRED MAP 3. A~ACHED HERETO AND MADE A PART HEREOF 4. Minnesota ~tatutes ~ec. 103L235 requires that belore signing an agreemanl to sell or transfer real property, Seller 5. must disclose info--at)on in wrEing to the Buyer about the status and location of all known wells on the prope~. This o. requirement is saUsflea by aelive~ng to the Buyer either a statement by the Seller that the Seller does not know of 7. any wells on the pr~e~, or a disclosure statement indicating (he legal d~cription and county, and a map showing 8. the Io~tion of each well. In the disclosure s~tement ~e Seller must indicts, for each well, whether the well Is ~. use, not in use or sealed. 10. Unless ~e Buyer and Seller agree to t~e contm~, In writing, before the closing of the sale, a Seller who fails to 11. disclose ~e existence or Enown s~tus of a wall 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 a~orney fees 13. for colle~ion of c~ts from the Seller, if the action is commenced within six years BEer ~e date the Buyer closed the 14. purchase of the real proper~ where ~e well is lo.ted. 15. Legal requirements exist relating to various aspec~ of location and s~tus of wells. Buyer is advised to contact the 1~. local unit(s) of government, s~te agency, or qualifleU p~essional which regulates wells for further infatuation about 17. these issues. 18. Insiruotions for completion of this farm are on the reverse miMe. 19. PROPER~ DESCRIPTION 20. S~eet Address ~ 1 ~ ~~, ~ew Hope . ._~42g ......... ~c~ ....... city zip Coun~ 21. LEGAL DESCRIPTION: ~, ~e~Jsrered Lm~d ~y ~) 0Og7 ................ 23. 24. 25, WELL DISCLOSURE STATEMENT 26, (Check ~e appmp~ate box.) 27, ~ The Seller cavities that the Seller does not know of any wells on the above described real prope~. 28, (If this option is checked, than skip to the last line and sign and date this statement.) 29_ ~ The Selle~ cedlfies that the follawing wells are located on the above described prope~. 30, MN Unique Wall Year of Well IN USE NOT IN SEALED 31. Well No. Depth Goner. Type USE 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 Depadment 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 ~r ~n~minants: Test results attached? Yes~ No~ 41. Comments: 43. SEALED WELL INFOR~TION ~. For each well designated as sealed above, complete this sexton. 45. When was the well sea.d? 46, Who sealed the well? 47, Was a Sealed Well Report filed with ~e Minneso~ Depadment of Heal~? Yes~ No~ 48. MAP 49. Complete the a~aghed MAP showing the location of each well o~ the real propeffiy. 50. ~is disclosure is not a warranty of any kind by ~e Seller(s) or any Licensee(s) representing or assisting any 51. para/les In this ~nsaction, a~ is not a substitute for any Inspections or waffantleS t~e pa./leS may wls~ io obtain, 52. CERTIFICATION BY SELLER 53. I ce~i~ that the information pmvlded above is accurate and complete to the best of my knowledge. 54 ............ ~om¢ it. ~e~te~ Tm~ L. Kessler slier orO~igna~ Repre~n~ve) (Date) (Sellefor Deslgna~d Rep~sen~tive) 55. BUYER'S ACKNOWLEDGMENT 56. W. Pe~r ~nck PreRidenL New Hope EDA "- D~iel ~[ flo~te, R~ecutive D~or, N~ Hope ~DA .......... (Buyer) ' (Da~) (~uyer) (Date) 57. MN-WOe-1 (10~3) ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER 03/19/2004 14:29 FA~ 763 493 5193 JENSEN & SONDRA. LL. P.A. , CiN-H CH [~04! WELL DISCLOSURE STATEMENT 58. Page 2 of .............. Pages. 59. INSTRUCTIONS FOR COMPLETING THE WELL DISCLOSURE STATEMENT 60. DEFINITION 51. 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 recl3arg~, or acquisition of groundwater. 63. MINNESOTA UNIQUE WELL NUMBER 64. Ail new wells constructed AFTER January'l, 1975 should have been assigned a Minnesota unique well number by 65. tl~e person constructing the well. If the well was oonstructad after this date you should have the unique well number ~n 66. your property records. If you are unable to locate your unique well numl~er end the well was constructed AFTEI~ 57. 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 wall 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 wails, 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: /~ 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 usa 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 ~zt. that operates for the purpose of irrigation, fire protection, or emergency pumping. 85. NOT IN USE: A well is 'not in use" ~f the wall 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 ether than e 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 contaot the Minnesot~ Department of Health, Well Management Section at (651 } 94_ 215-0819 (metropolYcan Minneapolis-St. Paul) or 1-800-383-9808 (greater Minnesota). 95. ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER 03/19/2004 14:29 FAX 763 493 5JL93 JENSEN & SONDRALL. P.A. , CNH CH ~]042 Form 15195S PRIVATE SEWER SYSTEM DISCLOSURE This form approved by the Minnesota A~soclatlon of REEA/TOI~S~i~, which Cliuolairns arty arising out of use or mieueo of this form. ~ 2002, Minnesota A~socieiion of REALTOR~, Edir~a. MN 1. Date lV~-~h . · ~m4 ...... 2. Page I of ....... Pages: THE REQUIRED MAP IS 3. ATTACHI:D HERETO AN~ MA~ A PART 5. in the CiW of_ Hew Hnpe GounW of He~cpiL._ S~te of ...... Miens;nm , I~ally described as follows or 6. ~ached sh~t (the "Pmpe~") Tra~ E: ~e~i;tered I .an~l ~u~e~ No~ ~0~T. 8. This disclosure is not a wa~an~ of any kind by the ~eller(s) or any Licensee(e) rep~aenUng or assisting any Pa.(s) In this 9. transaction, and is not a su~tltute ~r any inspe~ons or warranUes ~e Pa.(s) may wish to ob~ln, ~0. BUrR(S) AND SELLER(S) ~Y WISH TO OBTAIN PROFESSIONAL ADVICE AND/OR INSPECTIONS ~1. OF THE SEWER ~YSTEM AND TO PROVIDE FOR APPROPRIA~ PROVISIONS IN A CONTACT BE~EEN 12, BUYER(S) AND SELLER(S) WITH RESPECT TO ANY ~VICERNSPECTIO~DEFECTS. 13. SELLER'S INFORMATION: The following Seller disclosure safeties MN. Statutes Chapter 115.55. The Seller discloses the 14. following Jnfo~aUon wi~ the knowle0ge ~at even t~ough t~is Is not a warmn~, prospective Buyem may rely on this info.etlon t5. in deciding whaler and on what terms ~ pur~ase the P~pe~. The Seller(s) au~orizes any ~ent(s) representing any pa.(s) ~6. in ~ls ~nsactlon ~ provide a ~py of this statement to any person or entl~ In ~nne~lon wl~ any a~al or antloipated sale of 17. the P~pe~. ~s. Unless the Buyer an~ Seller agree to the contra~ in w~ing before ~e closing ~ t~ sale, a Seller who fails to disclose the 19. existonce or known s~tus of an individual sewage ~eatment system at ~e 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 Buy0r for cos~ ~la~ng to bringing the system into compliance with 21. individual sewage treatment system miss and for reasonable a~mey fees for culJec~on of co8~ from the Seller. An scion under 22. this subdivision must be ~mmenc~ wi~in ~ years a~r the date on which ~e Buyer close~ the purchase of the real prope~ 23. where the system is Io~d. 24. Legal requimmen~ exist ~lating to various aspects of Ioca~on and s~tus of Individual sewage ~eatment systems. Buyer 25. advised to ~ntact ~e local unit(s) of government, a~te agency or quailed pro~lonal which regulates individual sewage 26. treatment systems for ~her inflation about these issues. The ~llowing are represen~tions made by ~e Seller(s) to ~e extent of ~e Seller(s) actual knowledge. This in~rmatlon 28. disclosu~ and is not intended to be pa~ of any ~ntract be~en ~e Buyer and Sailer. 29, PRIVATE 8~ER SYS~M DISCLOSU~ (CHECK THE APPROPRIATE BOX.) 30. ~ The Seller ce~ifles ~at ~e Seller does not know of any private sewer system on or seeing the above described real 31. prope~. (If this option is checked, lflen skip to the last fine an~ sign and date this statement.) 32. ~ The Seller cortices that the ~llowing private sewer sys~ Is on or se~ing ~e a~ve d~sc~b~d real pmpe~. 33. ~PE (Check approp~afe b~x(es) and Indl~ location on a~ached MAP) ~"-~ 3~. ~ Septic Tank: L_~ wi~ drain told ~ with mound system ~ seepage ~nk with open end 35. ~ Sealed System (holding ~nk) 36. L J ~her (Describe): 37. Is ~e s~er system(s) currenUy In use? Yes ....... NO 38. NOTE: If any wa~r use appliance, bedroom or bathroom has been added to the Prope~, the system may no longer 39. comply with appli~ble sewage tmMment la~ and miss. 40. Is the s~er system(s) in compliance with appli~ble sewage ~eatment system laws and rules? Yes No 41. When was ~e sewer system ins~lled?. Ins~ller Name/Phone: 43, Where is tank lo.ted? _ . ~. What ia ~nk size? When was ~e tank la~ pumped? How often Is tank pumped? ~ 45. Where is ~e d~in field located? 4~. ~at is the drain field size? 47. ~escribe wo~ pe~ormed to the ayet~m since you have o;ed ~e 49. Date work pe~o~ed/by whom: 50. Is sewer system entirely wl~in Pmpe~ bounda~ lines, including set back requirement? ................. 51. Is ~e system shared? ~ ~ How many unl~ on system ~nual fee? .................... 52. Commen~: 53, On this Pmpe~: ~. Approximate number of; ~ople using ~e sewer s~tem, shower~ba~s ~ken per week ..__wash leads per week 55. Dis~nce be~een wall and sewer sys&em: 56. Have you received any notices ~m any government agenci~ misting to the sewer system? Yes No 57, If "Yea", see at.chad notice. MN-PSSD (~02) ORIgI~ COPY TO LIS~NG BROKER; COPIES TO SELLER, BURR, SELLING BROKER 03/19/2004 14:30 FAX 763 493 5193 JENSEN & SONDRALL. P.A. , CNH CH ~043 PRIVATE SEWER SYSTEM DISCLOSURE sS. Page 2 59. Are there any known defects in the sewer system? Yes___ No __ 60. If yes. please explain ..... 63. es1 I PR $ STATEMENT: ~o be signed at time of listing) ~. I / Wa, Seller(s o - ~ledge the =bore Private Sewer S~tem Ol~closu~ and MAP and au~orize LIs~ng B~ ' ~ (Date) ~elMr) 67. BUYER'S ACKNOWLEDGMENT: (To be signed at tithe of pu~hasc agreement) 68. I~e, the Buyer(s) ~ ~e Prop=~ acknowledge receipt of ~ PHv~te ~ewer ~ystem Disclosure and agroo that no representation 69. regarding ~e cond~ion of ~e PHvate Sewer System have been made, other than ~ose made above. LJSTING BROKER AND LICENSEES ~KE NO REPRESENTATIONS AND ARE NOT RESPONSIBLE FOR ANY CONDITIONS EXISTING IN THE 71. PRIVATE 8~ER SYSTEM. 72, 73. SELLER'S ACKNOWLEDGMENT: (TO be slgne~ at tl~e of put. bose ag~emen0 74. AS OF THE DATE OF THE ACCE~ANCE OF THE PURCHASE AGREEMENT, I~e. the Sailer(s) of the above Pmpe~, a~ree ~5. that t~e condi~on of ~e p~vata sewer system is ~e same as noted a~ve, including changes J~d[c~tcd abov~ which hsve been ~6. initialed and datad. 18. ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER 03/19/2004 14:30 FAX 763 493 51.93 JENSEN & SONDRALL. P.A. , CNH CH [~]044 ~ Aql~,,~--"' Form 1519 MAP' (r~ev. ?/9,*) PRIVATE SEWER SYSTEM AND/OR WELL LOCATION MAP This form approved by tl3e MInnesot;a A,~oc-Jatlorl o~ REALTORSffi, ~i~ disclaims any liablli~ adsJng out of use or misuse of ~is roma. Date ~ : 2004 Page I of Pages 2. Pleaac use the ~pa~ below ~ ske~ U~e mai prope~ being SOIG aaa ~e I~auon of ea~ .__ SE~ ~Y~TEM W~L on ~e Prope~y. (~e~ all the(apply) 3. Include approxima~ diatan~ from fixed m~mna ~inb =uoh as st~b, buildings and landn]a~s. 5. ATTACH ADDITIONAL SHEETS AS NEEDED Seller and Buyer Initial: S~ll~sr(~) Buyer{=) 7. MN-PSSVVM (7/94) ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, 8ELUNO BROKER 30120328 Pro ~JdJng @aalJty App.,~J~ for Bt~3v Zenders DATA SUMMARY Client: City of New Hope/Ken Doresky 4401 Xylon Avenue N. New Hope, MN 55428.4898 Borrower: NIA Address: 5446 Winnetka Avenue North New Hope, MN 55428 Value: $200,000 Date: December 8, 2003 Appraiser: Gregory V. Callahan, Cert Resl Real Prop Client File: Dahlman Forsythe File: 30120328 APPRAISAI~, LT~.C 222 EAST LI'/'rt.E CANADA ROAD, ST. PAUL, MINNESOTA 55117 (612) 486-9550 / FAX: (612) 486-9732 UNIFORM RESIDENTIAL APPRAISAL REPORT ;t,. ~o. 30120328 Property Desm'iption I K,,.~.cyA:-' ~6 Winnetka Avenue No~h ~ New HO~ ~e MN [~, Auddo(s Su~ no ~6 Lot 38 BIk N 70 ~ of S 5~ fl ex road ~.V Hennep;n ~ ::-~. 0511821330016 ;=~r 2003 ~E.;=~I 1.617.13 ~,~t None ~,~- N/A ~ ~ Dahlman. Cliffu~ ~ ~ ~ ~1 l~n~ ~ ~ v~ ~y~ls~.~ ~ F,~ ~ j Lea~ I ~1~ ~t ~D [ I ~(HU~A~, H~ None ~$ N/A ~led~ N/A ~$~ld~~to~e~bv~ None L~-~t C~y of New Hope/Ken Doresky ~ ~01 Xylon Avenue N.. New Hope. MN 5~28~898 ~ ~p~ Gre~o~ v. C~an Ce~ Re~ R~al Prop . ' AdW~5 2~ L~le Canada Road. L~!e Canada. MN 55117 B~'~ ~'~g ~ ~ t ~1~, 350 ~ 65l~ 15i,p~,o'NotApphcable J~-~l~ [XJ~. ~m~ ~ t~.6ms J ~,~--s~. ~ 180 ~ 3~ ~Vacant Negh0~ood b~nd~s end m~m~sh~: The su~e~'s ~igh~rho~ ~undahes are Brooklyn Park To the no~h. Golden Valley to :the so~h. Coun~ Rd. 81 to the ea~ and Highly 169 to ~e w~t. ~is is an e~ablJsh~ area. Fa~ that afle~ ~e ~me~ba~y of Ihs pmpe,~ m Iht .~bom~ (pm~y to ~m~l Ind im~ilms, e~loymenl Mibildy, appeal to mimer, ere Winnetka Avenue is a ~sy remdenbal ~r~t: Coun~ Rd. 10. a I~1 ~affic a~e~ is ~thm 1/4 a~ oflem access to sho~fl, schools em~oyment centers, fr~ways, and recreation. Pro~ values have ~en lncreamng Demand for the area is go~. Improvements do confo~ to the surrou~i~ homes. The neigh~rho~ has no apparent adveme factom affe~ng the subje~'s marketa~li~. See a~ach~ for additional commen~. ~et ~d~ione m the ~bje~ nmghb~ood (m~dmg ~ppo~ for Ihs able ~um~s ~1~ lo Ihs ~d ~ p~ v/~. - - ~ al data ~ ~elitwe p~e for M~ in the neighbo~ood, des~plion of the pre~llence of sales end fingncmg conces~ons, etc.) For the subje~'s MLS ma~eting distdct ~362, MLS statistics indi~te that 87.40% of all listings are selling ~th an average ma~eting time of 31 days. Sellem are receiving 99.24% of the asking price. Financin readily available from a variety of sources, ~ich ~ne~s both potential buyem an0 sellem. Project Information for PUI:~ (If eppkcable) - - IS the develo0erreuilder m ~tml of the Home Owners' Alsomltion (HOA)9 ~r ~s L{ NO ~tel0tM~Mun~sm~e~b~ctpmWcl N/A ~letMM~un,slor~lemlhe~bj~lpm~cl N/A Des~be co~ ~ts ~d recmat~al lairds: NOt AppliCable. ~ 70x300 z~ Slopes Gently ~e~ Approx~ 21000 Sq.Ft. (~r county) ~Lot ~ ~ ~ ~o ~ Abv. Avq.121.000SF ~ ~mg m~tm .~ e~m. R-1 Sing~ Family Res~ential ~pe Rectangular Z~g~m ~ L~ U L~i,.~(~~) ~1 ~ ~ ~m.~ -Adequate ~&~.~: ~lUm ~ ~~ N/A v~ Residential/Avq Utllitie. ~ ~ ~ ~ei~mm T~e ~ ~at, ~ Typical Gas / ~m ~ ~ ~e,~.~is No~al Uti~I W.~e ~ ~ Concrete ~ FE~F~fl~m~. ~y. ~"~ ~ ~ ~ts Yes ~ Fe~Zme "X" ~ ~e 3/30/01 arum { ~ ~ ~ FE~No 27053C-0192E c~le (appear aeve~ ear.als, ~a~nts. ~al e~nts. ~e ames. ~l or M~I non~nlo~mg zomng, u~, sic.): ~,mprovements face west. Landscaping is t~icaL The subject has a ms~ential view. It is above averaqe in sffe size and land to value ratio. Typi~l easements have ~en cons~er~ to estimate the manet value. ~.d~s One ] F~ Concrete J ~ ~ ~.Ft 1157 ~.d~ One ~ ~w~ Stucco~inyl) ~ No s~ ~90% ~J~.) Detach ~ ~f~m Aspha~ J ~l Full ~g D~all ~(s~) 4Level ~ ~m&~. ~ ~No w.~ DW/Panel ~ Exist ~ ~T~ ~ ~ ~e Noted F~ ~ ~.) 48 Yea~ a~s ~ ~t None Noted ~ Yes / ~mla~ ~. NO ~ ~al~ None Noted Copper P umbing Concealed - S w~ D~alkAvg. ~ ~ Gas ~ P.~ ~ ~NIA w~ ~-~ ==:=';I Ii 2 Wide ~ ~;(~ m~V .~ ~ms. e~c.): The su~e~ has an averaqe e~ciency ~as hot water heating system. The am stucco and ~n~ sMing co, simaion. See a~ached comments for add,aerial features. fo . e~l). r~e~. ~aMv el ~Mm~ r~ed~addit~s. ,~c.: The sub{e~ ur level nome. n is m average to good condAion and ma~etable as is. ~or is ' ~s ap~alin~. The basement is approx. 90% finished. The floor plan and ~!~e of the d-:~=U~ng am lyPi~l for the ama. See aaached for add,aerial comments. ~;;;-- ~;~;.;;.~ldl c~;;;;,= (~ iS. bul eel ~iled Io. hazardous wisles, teac ~bst~s. itc.) pfe~l ih the I~fovemeMs, on the ale. or iff the immediate vi~ity et the subject prope~y: Per visual inS~of the ama. and discussions ~h local reaHom, ther~ ~ ~ P~ IOF2 UNI~J~Mi~ESIDENTIAL APPRAISAL REPORT F,o~o 3012032~: Valuation Section I ESTIMATEDSn'E VALUE; . ........ : ..... = $ ' r60, O00 ~ Commenls on Colt Approac'~ Im~ch Is IOUrC® ot cost e$llmll~' ESTIMATED R~PROOUCTION CO~TJ~WOF'~MENTS' ' ~ Mev~ue. ~QUIm Ioo! CIICUIIIIOO and for HUD. VA In(~ FmHA. th~' Dm~mg Sq. Fl. O $ : S. 0 I eetmmled mmlm,ng ec~onac Me of the Sq. FL OS. = 0 iThe site value as vacant ts based on market trends ~ ,~,-i ........ !Total economic lite of 100 yrs. Told! E~ameted Ce~ New . . = S 0 Est. Remaining Ecru. L~ Demma~m . =S 0 D~recmted Va/4Je o~ Impfovemmts ................. : $ 0 ' 'AI-~' Value of ~t o Illlproyemefll s ................ = 5 INDICATED VALUE BY COST APPROACH ......... = $ N/A i ITEM i SUBJECT ; COMPARABLE NO. 1 COMPARABLE NO'i 2 COilPA.RABt. F NO 3 5446 Winnetka Avenue North 149~4 Zealand Avenue i8821 46th Avenue N ';4133 EnsJgn Avenue Add,~ New Ho Be 1 New Hope ~ New Hope I New Hope ~mayto.~c~ IAppmx. ,1./4 Mile IApprox. 1 Mile ' ,Approx. 1 Mile Is~ 5 N/A ~ S 197.500! s 193.500; , '5 200,000 ~L..,~.~ S 0.00 ~IS 171.44 ~ S 172.77 ~' 15 159.36 ~ D~le .mu~ Inspection t MLS/Counly I MLS/County i MLS/County v~se~n~s County Info. /28 Days on Market I81 Days on Market ,, ~82 Days on Market Sa~ r-manm~ NIA Cony/0 lc>ts ; t Cony/0 Pis i Cony/0 Pts : c~m:~m~$ N/A By Seller ! . J By Seller i By Seller ' DeteofSakUTm~e IN/A Clsd 10/03 JCIsd 9/03 ; /CIsd 11/03 : J Similar Netgh. [~ Subuman Similar Neigh. i I Similar Neigh. : [~mwmwr-~s~ Fee Simple Fee Simple ', IFee Simple' . ; JFee Simple 5,000t 81x145/Inf. 5.000185x112/Inf. ' 5.000 Sae 70x300 100x125/I.nf. : . : , . yin, Residential Similar View , l Similar View ; Similar View ~ ..a.¥p~ 4 Level/Good SplEnt/Eql. i tSplEnUEql- Sp Ent/Eql. ' '* ~,~c..muem Avg. to Good Similar Quality ; I Similar Quality : ! Similar Quali~ : nee 48 Yrs. 34 Years i 33 Years : 136 Years (:maim Avg. to Good Similar Cond. Similar Cond. : l Similar Cond. 12... ~; .,,,- Ronmceu.t 2~ 5: 3: 1.00 51 3: 1 00i 6: 3: 1.00i i 6: 3: 1.00 c'm~um9,~'~ 't,157~.FL 1,152Sq. Ft. : '1,120SqFt i 900 1.255Sqrti -2.500 ! ~-.,-' Full Part Garage : 1.500 Part Garage 1.500 t Full . & Rramed noomsSd~,C.m~, 1041 SFFin. 576SFFin. ' 4.700 400SFFin. 6.4001973 SF Fin. 700 · ~ r~.~,~ ub~/ Average Util. Similar Utility ~ ! I Similar Utility ~ Similar Utility : -2,000 / Gas FA ::--,~-~,~-~-2 Gas FA Gas FA/CA ; -2,000 Gas FA/CA .-.~.. E,~...~ ~,~ Concealed Unkn,own : ~ Unknown l Unknown c~-~,~;.~.~ I Car Garage 2 Car Garage '! -5.000 2 Car Garage ! -5.000 I2 Car Garage -5.000 : Pm~, Pa~o, deck, Porch Deck,Patio : 1,000 Deck : 1.500 Deck,Patio : 1.000 Fm~,~cN~ac. Wood Stove None : 500 None ' 500 None i 500 r.~, ~, etc. I N/A N/A I Security Syst ! -1.500 N/A Other N/A NIA : N/A : N/A N~dj.p~ [X~, L~ iS S,700 ~]* (~- iS 7,~'00 [ ), ~_ ;5 300 ~.-'-'sa~ ~ 10% c,~: 13% c~o.~: 7.35% o~ ~et: 3% S 203,200 N~: 4% S 200.8001Net: -0.15% S 199.700 Cc..m;=..;;,;= on Sales Comparison (including the subject property's ¢ompet~i~ly Io the neighborhood, otc. ): Room co'unt adjustments are included in the GLA adiustment only. GLA adjustments are made using $25 per square foot. Bath room adjustments are made using $3,000 per full bath and $1,500 per 1/2 bath. Basement area adjustments are made using $10 per finished square foot. See attached infom'lation for discussion of sales comparison adjustme, nt$. ' ITEM __ SUBJECT . COMPARABLE NO. 1 COMPARABLE NO. 2 2 CO~PARABLE NO 3 ~to, r~ce,ad ~ N/A See Comp Sales Grid See Comps Sales Grid ~See ~'~d ,samm~rfmer~ NIA NIA N/A ~N/A · em~aro~ N/A MLS/County Records MLS/County Records ~MLS/County Records ~fonl ,.~ M I~e, w ,, Or ISlllg Ol I~e la~ject ~..4.~,y on~ onetyms of any pn,r lai~ ct ~l)~ci ~ mm~a~bim iMtm ~ ~ ct ~ ~le ~~ Permonths.lOCal MLS lis~nformation and coun~ct has not __been listed __°r transferred in--asr 36 ,,,D~.AT~WU.U. e~ ~ CG..*.,SO..~.ROAC. · ~*~v~.u. BY.CO.~ ~.~_. __~. p ,.~...~ ~., :;~ ~'~. ;~,'~* ......... N))~' ' ~' ;;gl: ~:.;::~-. ..... ::.v'-s 2o0,0oo T~:::. ' 'm,~e IXI '#i~' [] ~:=~-~o~---'_ - ... ..... '-' .......... * .... ~L'T"--~ ~/A :5. 0 - . . ....... ,w.,,,,-u-~.--,u....,m,~ue~w L_I ~ubleCJlocernl~ebmpm'laar41r, d~pealc~bor~ ~d,~.i~ This appraisal is being made 'as is", This is a 'Summary Appraisal Report". No liability is assumed for the stmctura. I or mechanical c~a,~, ents of the :-to-_ ~1--: F-~u R~mcrmim: I~. The sale corn -a~son best reflects t . t ical bu er The cost a roach - · he actions ot the income a--~' ......... .w~a._s co_?side.~___., but .n_.ot considered a licable, therefore it was not included. ~ ~, .....,,,~- roach was coosKlered but not used due ~t data. The aed [l~ilkHJ co.dib~s. ~ed retake( vllue deinili~ lbel am ,aired m Ire iltacbed Ff~d~m Mic Foon 43&,Fannie Mi~e F~ i~B ~ 6/~3 ~(WE)E~"T~MATE1-H~M~dM~rvA~-UE~AsD~Br~NED~FTH~Re``M-PR~W~rY-r~`T~11~sU~J~~~ December 8, 2003 ~ ~s 'n'~ r~'m c~ w~'c-ctm~ ,~4o 'n~ ~ ~T~ o~ .t~s ~9,oR.r).to m~ $ .200~000 ' ~ Greg(~'~/"[/; Callahan, Cert~esl Real Prep m~o,",-~-~sigr~d December 8, 2003 .~toRep~Sdin~ Sine c,~,-,;,~,~,, # 4002346 S~eto MN or Stalel~c~?, y ' s~te C~,.;~,~ # slete slate O~ State Lk:m~e I r-~. ~ F~m ~ ~.~ PA~;-;-;-;-;-;-;-;-~~ Slate . Fomythe Appraisals. LLC ADOEM3UM ADDITIONAL FEATURES: In addition, the subject has: an attached one car garage, central air. large two three porch, wood stove. The subject also has a full basement area under the attached garage. The sub/ect also has a large very appealing kitchen. CONDITION OF THE IMPROVEMENTS: Recent improvements per homeowner - new roof, new hot water heater, newer metal siding and new water softener, The subject has been inspected for physical, functional, and external inadequacies. The subject has no apparent functional or external obsolescence. COMMENTS ON SALES COMPARISON: All comparables have smaller lots and are inferior in site value. TRANSMITTAL LETTER: The subject was inspected on December 8, 2003. The estimated market value as of December 8, 2003 (effective date), is $200,000. The property was appraised by Gregory V. Callahan, Licence Number 4002346, Certified Residential Real Property Appraiser. A certified residential real property appraiser may appraise 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 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. AODmONAL COMMENTS: 1. The purpose of the appraisal is to estimate the market value of the subject property for litigation purposes. 2. The legal deschption of the subject property can be found on page I of the 1004 form. 3. The reasonable marketing period for the subject property is under 90 days. 4. According to the county and the MLS system, the subject property has not been transferred in the past 36 months 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 included 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 considered but not considered applicable, therefore it was not included. Add.adum I;).~e I o1' 2 ADOENOUM Ce/: New P, ope S~ae: Mr~ Z.~ 554~ Lender: Clty of New I~/Kefl 9. The subject is a single family residential property. Revenues. expenses, and/or vacancies do not apply. 10. Current and future employment or compensation is not contingent upon the repomng of a predetermined value or direction in value that favors the cause of the ciient, the amount of the value estimate, the attainment of a stipulated result or the occurrence of a subsequent event 11. This appraisal report was completed in conformity with the Uniform Standaras of Profess~ona! Appraisal Practice. 12. If the photos included in this appraisal are digital/electronic images, they have not been enlarged. enhanced, or altered in any way. 13, If electronic/digital signatures are used. it has been ruled acceptable appraisal pract,ce by USPAP. 14. The appraiser certified that if this appraisal included an electronic/digital signature it is maintained and controlled by the appraiser completing the report. GC Adde~durq P~Oe 2 of2 DIMENSION LIST ADDENDUM t Bo~Tower: N/A File No 30120328 Property Address:5446 Winnetka Avenue North Case No.: Dahlman New Hope State: MN 2~': 55428 GROSS BUILDING AREA (GBA) 2.599 GROSS LIVING AREA (GLA) 1.157 ~s) i Ama i % of GBA u~g __ 1.15~7 ' 44.52 Le.~ ~ 1.157 i 44.52 Le~2 0 i , 0.00 Le~e~ 3 0 0.00 ~ 0 ~ 0.00 ~ ~ 1.157 ~ ~.52 ~ ~ 285 ~ 10.97 Area Measurements · - I Area Type Mels~ement. Fa~t~r Te4al f Level1 L®~el2 L®~el3 Othe~ i Beret. Garage 25.00 · 4,00 · 1,00 = 100.00 16.33 · 7,00 x 0.50: 57.17 24.68 · t0.00 · 0.$0 = 123,42 10,42 · 3.32 · 0.50 = 17.28 8.25 · 19.24 · 0.50 : 79.32 {~,75 · 3,75 · 0.50 : 16,42 20.93 · 8,75 · 1,00 : 183.25 17.00 · 7.00 = 1.00 : 119,00 14.32 · 1,13 · 0.50 = 8.08 13.38 · 0.98 · 0.50 = 6.57 0.8~ · 19.26 = 0.50 = 8.04 13.38 · 0,$8 · 0.50 : 3.88 ~ · 13.38 · 1.00 : 257.94 1.00 BO~Tower: N/A F~le Nc 30120328 Address: 5446 Winnetka Avenue North Case No.: Dahlman City: New Hope St: MN Zip: 55428 Len0er City of New Hope/Ken Doresk~ ~,~:__ ..T~. - -.~,,. ~,. ~' . . - , ¢.,. ~; ~ . .' ~ FRONT VI~ OF ~ SU~ECT PROPER~ ~...,.,.,.,.,.,.,.?~:~.<~a,,.;~:..~-~__ ... REAR VIEW OF SUBJECT PROPERTY '~rr;-=-'-. STREET SCENE B~Tower: N/A F.e Nc 30120328 Address: 5446 Winnetka Avenue North Case No.: Dahlman City: New Hope St: MN Zip: 55428 Len0er C~ty of New Hope/Ken Doresk¥ COMPARABLE SALE #1 4984 Zealand Avenue New Hope lBoffower: N/A Ft~e No 30120328 / Address: 5446 Winnetka Avenue North Case No,: Dahlman City:. New Hope St: MN Zip: 55428 Lenaer City of New Hope/Ken Doresky FLOORPLAN Borrower: N/A File No 3012032~ Propeny A~ess: ~6 ~nn~ka Avenue No~h Case No.: Dahlman C~ New Ho~ State: MN Z~p: 5~28 Bedroom Bedroom Bath Bedroom Foyer Living Room 14.0' 20.0' Sk~ch by A~ex IV Window~TM AREA CALCULATIONS SUMMARy LIVING AREA BREAKDOWN TOTAL LIVABLE (rounded) 1157 10 Areas Total (rounded) 1157 (612) 30120329 Pro ridi~ OuMfty Appraisals for Bray' lenders DATA SUMMARY Client: City of New Hope/Ken Doresky 4401 Xylon Avenue N. New Hope, MN 55428-4898 Borrower: NIA Address: 5512 Winnetka Avenue N. New Hope, MN 55428 Value: $147,000 Date: December 12, 2003 Appraiser: Gregory V. Callahan, Cert Resl Real Prop Client File: Mendez Forsythe File: 30120329 APPRAISALS, LLC 222 EAST LITTLE CANADA ROAD, ST. PAUL, MINNESOTA 55117 (612) 486-9550 / FAX: (612) 486-9732 UNIFORM RESIDENTIAL APPRAISAL REPORT ;~.o~ 3o12o329 5512 Winnetka Avenue N. c~ New Hope Sine MN a~ c~ 55428 's SU~ no 226 Lot 38 BIk N 70 ff of S 830 ~ ex mad ~ Hennep!n ::::::~. 05118213300~ z.Y~ 2003 EEI~t 947.33 ~~.s None ~ N/A ~1~ Mendez ~ ~ ~i ~e~ { ~ ~ I ~O ~ i ~(HU~A~ N/A ~ ~ 02-91 ~ms ]~ 5120-0215.02 NIA ~ea~ NIA ~t~t~~to~e~ None L~t Cfly of New Hope~en Doresky ~ ~01 Xylon Avenue N.. New Hope., MN ~p~ G~ego~ V. C~ Ce~ Re~ R~ Prop A~ 222 Lffile Canada Road. L~le Canada. MN 551 ~ ~ ~ ~ ~l~t ~ '"295 ~ ~~ 5%llo. NotAppIicable ~ ~3~ ~J~ ~ee~s. ~ ~--s~. , 175 , ,~ 45 [~her 10% Ne~ ~ an~ mameluke: The su~e~'s neigh~rh~ ~u~a~es ale Bt~klyn ark to the no~h. Golden Valley the ~h. ~tale Highway 81 to the ea~ a0d Highly 16~ to the we~. T~s is an esla~ish~ area Winnetka Avenue is · b~y readen~al ~reet. Coun~ Rd. 10. a I~al ~affic a~e~ is ~in 1/4 mile and offers access ~OD~, ~h~ls, employment cemem, fiee~ys, a~ recreation. Pro~ values have ~en increa~ng Demand tot the erea is go~. Improvemen~ do conform to the sunou~i~ homes. The neigh~rho~ has no apparent adverse racom affe~ the su~e~'s marketa~li~. See a~ach~ for ~di~onal commen~. -. ~ is dato ~ ~el~me ~ f~ ~ in the neigh~o~ood, desc~elion el the prevalence el ~ales end hnancmg conceemons, elc.) For the subje~'s MLS ma~eting distdct ~362 MLS statistics indi~te that 67.08% of afl listinqs are sellinq ~h an average maxell~ ti~ of 12 ~ays. Sellem am receiving 99.59% of the asking price. Financing at the present hmo readily available from a va~ety of soumes, ~ich beneffis both potential buyem and sellem. Project Infm'mation fee' PUDa (If appkcable) - - Is the dw~u~ m ~tml ol lhe Home ~nem' Asiecmlmn (HOA)~ ~ ~5 ~ NO ~e~Mu~smt~b~ct~l NIA ~m~te~umtt~lemlhe~b~ct~m~ N/A ~e c~n ~nls e,d re~eehonal/a~t~s: NOI Applicable. ~ 70~90 , ~ 1~ SIo~s Gently ~e~ Approx. 20300 Sq. Ft. (per county) ~Lot ~ Y~ ~ ~ ~ ~ Abv. AVg/20 300SF ~ ~mg ~t~ ~ o~ R-1 Single Family Residential J ~ Re~anqular ~~: ~t~ ~e~)N/A ,, [vm School/Avg mHm.. ~ ~ ~ ~.~ 1~ ~ ~.~eJ ~ Typical :~ ~ 100 AMP CB ~ ~ B~uminous ~ ~ / ~~ Aspha~ a~ LXI ] ~ ~ ~ ~ ] FE~ 27141C C~II (~1 ~m ~l*, m~ls, ~ml la~all, a~e areas, ~gal ~ ~1 n~l~g zoning, u~, elc.): Improvements face west. Lands~ping is typi~l. The subje~ has a front view of a school. It is above average in s,e size and land value ratio for the neigh~ood. T~i~l easements have been considered to estimate the mamet value. Ne.~ One ~ F~llm C.Block J ~ lO0% j ~a~FI N/A r~ Conc ~.of~ One l~w~ ~tucc j ~ ~ ] %~ ~ ~g ~ t~(~J~.) ~eta~ ~ ~m Asphaff ~ ~t None ] ~g ~ w.~ ~ ~(~) ~mbler { ~a~ts. Metal ] ~~ { w~ ~ ~ ~ ~ Exist , J ~ T~ ~J ~ ~NOI~ j F~ ~ N~e ~ L E~e A~,fY..} 12 Yearn / ~ H~ No ~ ~ None Noted ~ Cop~r Plumbin~ Concealed w~ D~alkAvg. J ~ ~ J ~ ~ ~ a~ ~ P~ Yes" ~ G.m~ , .... ~ ........ ~ ~. _ ~ :~[~~'~J ~ATh~ s~ a~[erage efficacy oas forced air he~n~ ~yste~. T~e WJde ano ~ s~ing constm~ion. See a~ach~ comments for add~ional features. ~ c::~::~= el ~e ~;;..,~l~. d~e~l~ (phil. ~1. ~d e~al) ~a~ e~ qu~? ol c~m~a e~a~s etc' The subiect is an average qual~ ~dmom rambler. ~ is in ave~e to eo~ ,~nd~ion and ma~etabl~ as is. ~h~' intenor is in a~ach~average tOforGOOdadd~ional~om~,eFd~.cond~mn and has average aD.al. The floor plan and s~e,, of, the d~lling am tyPi~l for the ama., S~e ~kdv~ ~vk;._;;g;a; ~;i~s (~ as. bM aol ~mited to. bazar~oas wasles. Iolic ~bsle~ces. elc.) present in the improvements, on Ibc site, ol ~mediate vi~ity el Ihe ~b~cl ~rop~y: Per visual ins ~io~~f the area, and dbcussions ~h local rea~om, there v.t,,,o,, so,,o, UNIFORM RE$1DEN L APPRAISAL REPORT ~,o No 3012032-~ ESTI~T~ ~E V~UE ........................... = $ ~5.000 ~ Commenls on Cost Up~l~ I~c~ If iou~l el cost elllmile ES~TED ~~ ~7~ ~S: ~ ~e v~e. ~uam ~t ~l~n ane tot HUD. VA and ~mHA. ~. FL O~ = 0 The sde value as vacant is based on manet trends '~ V~ of SHe I~e~ls ................... = $ INDICATED VAbUE BY CO~ A~ROACH .......... = $ 55 ffEM ~ ~ECT t ~A~LE ~0. ~ ~ ~PA~LE NO. 2 C~PA~LE ~O 3 5512 Winnetka Avenue N. ~ 5349 Pennsylvania Avenue ~ ~00 Wisconsin Avenue t 5~5 Pennsylvania Avenue ~ New H~ ~ New Hope ~ New Hope ~ New Ho~ tApprox. 1~4 Mile ~Approx. 1/4 Mile [Apptox 1,4 Mile " ~ N/A~ $ 149.900 ~ s 154.000] s 1~0.000 ~.~ 0.00 ~ 152.~ e }s '. 239.88 ~ ~s 186.48 ~ t MLS/County ~ta ~ Inspection MLS/County MLS/Coun~ v~~ County Info. ~18 Days on ~a~et 9 Da~ on .Manet 14 Days on Market v~~s ~RI~ION J ~RIPT~ .... (-)S~ ~PTI~ J *(.~S ~ ~IPTI~ ~Fe~g NIA ~Convl0 ~s Conv/0 ~s : Cony/0 ~ ~ N/A ~By Seller By Seller By Seller ~,eo~ N/A ~Clsd 11/03 Clsd 6/03 ; CI~ 7/03 L~ Subu~an ~Sup. Location -2.000 Sup. Lo~tion ; -2.000~ Sup Loca~on : -2.000 Fee Simple ?ee Simple Fee Simple [ Fee Simple r70~90 J80x132/Inf. 5.000 79x120/Inf. 5.000 75x135/Inf 5.000 v~ 'School/Avq ~ Similar View , Pa~ View/Sup.. -2.500 S~milar View Rambler ~ Rambler/Gal Rambler~ql. Rambler~qt Average QuaL ~Similar Qual~ Similar Qual~y Similar Qualir 50 Yin. ~51 Yeam , 50 Ye~m , 51 Yearn ~m Avg. to Good Similar Cond. Similar Cond. Similar Cond ~t 2~, 5~ 2; 1.00 5; 3; 1.00 4,~ 2: 1.00 5: 3: 1.00 784 ~.Ft. 984 ~.FI . . -5,000 ~2 ~.Ff 3.600 858 ~.Ft -1.900 ~&~ None None Full -5.000 Full -5.000 R~w~de N/A N/A 0 330 Sq Ft ~in -3.300 120 Sq Ft Fin. ~ -1.200 Average Ut I. Similar Util~y . Similar Util~y Similar Gas FA ~Gas FA C/Air -!,500 Gas FA/CA ; -1.500 Gas FA Conceal~ Unkno~ , Unkno~ , Unkno~ 1 Car Garaqe I Car Garage 2 Car Garage -3.500 2 Car Garage : ~. P,~, ~, Patio None 500 None " 500 PaSo None N/A None , ~ None None N/A ' N/A ~ N/A ~her None N/A ~N/A ~ N/A L~+ ~- ~, 3.000 L~+ ~- ~, s.7oo/~+ ~'- ~, s.soo ~~ ~: 9% ~: 17% ~s: 11.63% ~t: -2% S 146~900 ~: ~% S 145,300 ~: -5.38% S 151.400 co~;s ~ sa~s c~m~ {~ding the ~b~cl pr~y's c~at~ty to fha n~b~o~, etc. ); Room count adjustments are included ustments are made using $25 ~r s~uam foot. Bath room adiustments are ma~e and $1,500 ~r 1/2 bath. Basement ama adjustments are made using $10 per finished uam foot. See a~ached info~ation for discussion of sales comparison adjustments. ~EM ~E~ ~ ~E ~ 1 ~ ~A~LE ~ 2 ~ C~ ' . · PAROLE NO 3 ~, NIA }See Comp Sales Gdd J See Comps Sales Gdd See Comp Sales Gdd ~~ N/A ~N/A IN/A ~N/A ~~ NIA ~MLS/County Reco~s ~MLS/County Reco~s ~MLS/Coun~ Records montns.~er ~cal MLS mfo~ahon and count reco~s the sub'ect has not been liste~ or transfeffed in t~ast 12 -..._~ ./· ~ .............. ~ .............................. ~~ This aopraisal is ~ing made. 'as is", ~is is a "Summa~ Appraisal Re~". No liabil~y is assumed for the st~Oo~l or ~cfianical elements of the m _ . ~"~: ~e s~e cum a~n ~st refle~s the actions of the t ical bu er. The cost a roach was considered b~ not cons~ered applicable, therefore H was not included~ ~ income a roa~ ~s ~ns~er~ b~ not used due to lim~ed manet ~ .. . .. . , ~.~ ). ~~~~ ~ ~s~7o~s ~47,000 ~ Gre ~11~1 Real Pm ~ ~ ~ ~ R ~ · Decem~r 12 2003 ~ mm~ ~ PG2~2 Fom~e A~rai~ls. ~C ADDENDUM Properly A~3'ess: 5512 VVm~-tka Avenue N Case Nc City: New Hope S~'at'e MN Lender: ~ of New Mope/P,~'3 ADDITIONAL FEATURES: In addition, the subject has: an attached one car garage and patio. CONDITION OF THE IMPROVEMENTS: Recent improvements - exterior paint, new wood floors, new carpet, newer roof. new patio. The subject has been inspected for physical, functional, and external inadequaCies The subject has no apparent functional or external obsolescence. COMMENTS ON SALES COMPARISON: Comparable two has a small park to the front of it's site and is considered superior in view amenity All comparables have smaller lots and are inferior in site value. Because the subject is on a busy street, all comparables are somewhat supenor in location, TRANSMITTAL LETTER: The subject was originally inspected on July 11. 2003 (interior & exterior). Pert client request, a drive by (exterior only) inspection was completed on December 12.2003 The estimated market value as of December 12, 2003 (effective date), is $147,000. SCOPE - LIMITED ASSIGNMENT: This appraisal is a limited assignment. Extent of investigation was viewed front aspect only Source of data was found through previous appraisal and county records. If full investigation were made. value conclusion may differ due to limited assignment. The property was appraised by Gregory V. Callahan. Licence Number 4002346. Certified Residential Real Property Appraiser. A certified residential real property appraiser may appraise 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 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 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 I of the 1004 form. 3. The reasonable marketing period for the subject property is under 90 days. past4' According12 monthst° the county and the MLS system, the subject property has not been transferred in the 5. 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. ADDENDUM Bon'ower: N,'A F~ Nc Prope~y Aclclress: 5512 VVmnee~ Avefme N C~se Nc c~: New Hope , S~e' MN ~ ,~ 6. The subject is an existing structure. This appraisal is made "as is." 7. Personal property was not included in the appraised value, 8. We have considered all three approaches to value. The income approach was not utihzed clue to lack of reliable rental data of single family homes in this neighborhood. The cost approach was considered but not considered applicable, therefore it was not included. 9. The subject is a single family residential property. Revenues. expenses, and/or vacanctes do not apply. 10. Current and future employment or compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result or the occurrence of a subsequent event. 11. This appraisal report was completed in conformity with the Uniform Standards of Professional Appraisal Practice. 12. If the photos included in this appraisal are digital/electronic images, they have not been enlarged, enhanced, or altered in any way. 13. If electronic/digital signatures are used, it has been ruled acceptable appraisal practice by USPAP. 14. The appraiser certified that if this appraisal included an electronic/digital signature it is maintained and controlled by the appraiser completing the report. GC Addendum I;~.,pe 2 d 2 DIMENSION LIST ADDENDUM Borrower: N/A F~le Nc 30120329 ProperS, Address: 5512 Winnetka Avenue N. Case No: Mendez City: New Hope State; MN Zip: 55428 GROSS BUILDING AREA (GBA) 1.060 GROSS LWING AREA (GLA) 784 N~(s~ Area % of GBA L.,mO 784 73.96 ~.~ ~ 784 73.96 Le~,el 3 Dth~ oawe 276 26.O4 Memsur~me~ts Fnctm' T~tal L®v~l I Level 2 Level 3 Oth~- B-mt. Greige 16.00 ~ 11,00 a .....1,00 = ~?$.00 ~ 2~.00 · '12.00 ~ 1.00 = 2'15.00 Borrower: N/A F,e Nc 30120329 Address: 5512 Winnetka Avenue N. Case No: Mendez City: New Hope St: MN Zirn: 55428 Lenaer City of New Hope/Ken Doresk¥ ~., , ' ~:4 SU~ECT PROPER~ ~ ,.~ - .. ~ ,/. REAR VIEW OF SUBJECT PROPERTY Borrower: N/A File No 30120329 Address: 5512 Winnetka Avenue N. .- Case No.: Menaez i City: New Hope St: MN Zip: 55428 Len0er C~v of New Hope/Ken Doresk¥ COMPARABLE SALE #1 5349 PennsyNanla Avenu~ New Hope :~':" .' '-':"~' ~...~.._:. COMPARABLE SALE #2 ' ..... :~ ~00 Wiscon~n Avenue , ~ ...... New Ho~ . . ~ ...... ,. ,.. . .;~'-.~,.,~-..., .... :~- % ~ ~- - ~-~ .- _.. ~.~:' ; .t.~ , ~ / ',r~~'~ 5~5 Pennw~ania Avenue ~ ' '~'~i New Ho~ ~ . w~ ...... Bo~ower: N/A F,le Nc, 30120329 Adaress: 5512 Winnetka Avenue N, Case No.: Menctez City: New Hope St: MN Z~p: 55428 Lenoer City of New Hope/Ken Doresk¥ ,. ~..- . ~.~. FLOORPLAN Borrower; N/A l:,e Nc 30`120329 Property AdO-ess: 55'12 Winnetl(a Avenue N. Case h~: Menae? City: New Hope State: MN Z~: 55428 16.0' ? ~..~,~.-.~2~;. ~ ~.~n,ng Bedroom ;~:;.?-;~.i~.;¢j :~ ~ ~tchen Living Room 32.0' 12.0' Sketch by Apex IV Windows ~ AREA CALCULATIONS SUMMARY LIVING AREA BREAKDOWN Code Descrtp~,¢~ TOTAL LIVABLE Irounded) 784 2 Areas Total (rounded) 784 Pro ~d~n~ Qu~ Appr~m~ for Busy Lendem DATA SUMMARY Client: City of New Hope/Ken Doresky 4401 Xylon Avenue N. New Hope, MN 55428-4898 Borrower: N/A AddressT--5519 Sumter Avenue N. New Hope, MN 55428 Value: $199,000 Date: February 17, 2004 Appraiser: Gregory V. Callahan, Cert Resl Real Prop Client . - _ File: 'Kessler Foreythe File: APPRAISALS, LLC 222 EAST LITTLE CANADA ROAD, ST. PAUL, MINNESOTA 55117 (651) 486-9550/.FAX: (651) 486-9732 Kessler UNIFORM RESIDENTIAL APPRAISAL REPORT ~t~.o. 40101455 5519 Sumter Avenue N. c~y New Hope STate MN ~Cooe 55428 'l Land Survey No 0097 Tract E county Hennepin ~. 0511821330026 ~ 2003 ~ ~a~s 1~461.19 s~~.~ss None N/A C~nt~ Kessler. Rome & Tammy ~n~ IX: ~er ' ~X~ FeeSrmo~e , Lease~o/~ J ~e~T~e ~ PUD ~n~n~um(HUDNA~ Ne~n~a ~ ~e~ Name N/A ~ R~t~m D2-91 ~s ~mC 5120-0215.02 Sale ~ $ N/A Dale of Sale N/A ~Dten a~d S a~u~t of Dan ~e~n~ns to ~ ~ ~ ~ None Leneer/Cl,ent CiW of New Hope/Ken Doresky Ao~e~ ~01 Xylon Avenue N.. New Hope. MN 5~28~898 Catlanan. Ce~ Rest Real Prop Aom~ 222 Lille Canaaa Road, Li.le Canada. MN 55117 ~on ~ ~an ~X~ suD~an ~ ~a, ~omlnant i~ngle~milyhousing ,~t~% Built u~ ~ ~75% ~ 2~75% ~ Un~ 25% ~g~ngy ~) PR~C~i~ AG~ ~ One fa~ 60% ~o~ rate ~ ~i~ ~ StYe ~ S~ ~', ~ g5 ~ 1 ' 2~ t~) 5% ~o~v~ues ~ In~e~ng ~ ~e ~J ~anng ~ 3en~t ~. 350 H~ ,, 65 ~ 15% '~o Not Applicable ~n~supp~ ~ge ~ ~ ~l ~ ~; v~(~5%~ ~. ~e~m~nant ~ ' ~a 20% ~. ~6 [ ~er6~s. ~r ~ 180 35 ~Vacant ~te: ~ and the rBlaJ ~m~sltion of the nelgh~ ~e not ap~isal ~ct~. NsgnDomood bounO~ies and ~aracteristi~: The subject's ne,ighbomood boundahes are Brooklyn Park to the no~h, GolQen Valley to Rd. 81 to the east and Highly 169 to the west. This is an establis~eQ area Factors that affect ~e marketability of the Drooer{~es in t~e neighDChoo~ (~rox~mlty to employment eno amenities, employmen~ s~ab~h~y, appeal to market, gtc.) Sumter Avenue is a quiet residential strut. Ba~ Lake Road, a Io~l traffic a~ew is ~thin 1/8 mile and offem access to and recreation Pro values have been mcreasmg Demand for t~e Ia conform to the suffounding homes. The neighborhood has no apparent adverse factom See aEached for additional comments, Market ~nditmns in the subje~ neig~DornooO (maudlng sup~ for the a~ve ~nCus~ons rela~e~ to tM Een0 of ~ values, oe~n=sup~y, and ~et~ng t~ - - suc~ as data on ~mpetihve properties for sale m the neighborhood, 0esmiption of the ~revaience of sa~es an~ floancl~g CO~CeSslons, gtc,) For the subject's MLS marketing district ~362, MLS statistics indiqate that 87.40% of all Ilstin~s are selling ~th an time of 31 days. Sellers are receiving 99.24% of the askin~ price. Financing at the present time available from a variety of Sources, ~ich ~nefits both potential ~uyers an~ sellers. Project Information for PUDe (It apbi~cab~e) - - Is the oeveioperlbuiider in ~ntrol of the ~eme Owners' Associatmn (HOA)? ~ YES ~ NO ~mate total nu~ of units in the subject pro)ecl N/A ~te totat nu~ of units for sale in the subject project N/A and remeat~onal facilities: Not Applicable. D~mensions 102.2X170 Slopes Gently Site~ea Approx. 17374 Sq. Ft. (per county) ~n~t ~ Y~s ~ No ~ .... S~e Abv. Avg./17,3~4SF Spe~fic zoning class~tion aha ues~iption R-1 Single Family Resiaential Sha~ Rectangular Zoning~mplian~ ~ L~al ~ ~~(~~) ~1~ l~ ~mg ~e A~equate Highest & ~st u~ as i~o~d: ~ ~esent us~ ~ ~h~ use (ex~ ~) N/A ~ew Residential/Arq Utilities P~ ~ ~ ~e I~ove~n~ 3~ Public ~ate ~ Snow Covered E,,=~ ~ 10DAMP CB ~ S~e,, Bituminous ~ ~ ~way ~a~ wat~ ~ ~ ~ si~ None ~ ~: ~ s~l F~ ~d ~ea ~ Yes San~.~ ~~ ~ S~eett~h~ Yes ~ ~ j F~e "X" st~sew~ {x~ ~ ~ey None , ~,.~ [ ~ { FE~pNo. 27053C Comments (app~ent a~ver~ ea~ments, endearments, speaa{ a~es~ents, sli~e ~eas, iMgal or legal non~ntorming ~mng, use, etc.): improvements [ace east. Landscaping is ~pi~l. The subject has a residential view. It is above avemqe in site size and land to value ratio, Typical easements have been considered to estimate the market value. No. of Units One Founda~n Concrete ~Sab No ~eaSq. Ft. 912 ~* Con~l ~.ofst~es One ~wa~s Vinyl Side ~ No %Rn~ed ~p~. 95% Ceding Conc Type(~UA~.) Detach ~fS~a~ Asphalt , ~nt Full ~iling D~II Wa~s ~onc ~n(S~e) Ramble~ Gu.m&~. Metal ~No wa,s D~ll ~ Conc ~s~e~ Exist ~.~ow~ D.Hung ~ne~ None Noted ~ F~ CpFConc None Age.m.) 49 Yearn st~s Sto~s ~t None Noted } ~ No Effedi~e~m.) 10 ~ea~ ~ Man~a~ur~House NO , lnfestatmn None Noted ~eate~ ~'~ ~ ~ ~ 1 ~ ~ 1 1 ; ~ ~ea Sq.~t Level1 J ' ' 1 ~ 1 ~ ~ X ; 912 ,,, · ~ ~ "~ .~s ~p~MDI~n/Hw-GO ~ Type PA Re~g~t~ ~ ~ ~ne ~ F~e~s)~ ~ ~ ~ W~ ~lI-Good ~ Fuel Gas ~ ~ng~. ~ ~ Sm~ ~ Pa~ '*' ~ ~e 1 8a~W~t Ma~l~Go~ I~ Yes ~F~ ~[~- ~ - -- -- - ~ ' A~ f.~ (s,edal .egy .~aent ire~s etc.): ~he subject has an above average e~ciency gas force~ air heating system. The e~edor ~lls am new vinyl siding. S~ a~ached comments for additiOnal features. ' ~ Condi~on of the iG~-~w~, aeme~a~on (~hysi~l, ~n~nal, and ~emal), re~a~s needed, ~ual ~ of ~ns~ion re~delingladdJtions, etc.: The subject is an averaqe to good quali~ three bedroom rambler. It is in go~ ~ndition and marketable as is. The interior is in ~ood cond~ion and is appealing. The basement is approx. 95~ finished. The floor plan and size of the d~llin~ are tyDi~l for the area. See affached for additional comme,n~. Adv~e env~e~;,l ~r,~i~uns (~ ~, but not limite~ to, hazardous wastes, teac substan~s, etc.) Fesent in tM improvements on the s re, or n the immediate vicinity o, the subject .roperty: ~~' %~'~;;cussions .th local reaJto~ th r ~'~0~. mom mere '~ ~ PAGE 1 OF 2 Kessler Val,,tto, S.~tio, UNIFORM RESIDENTIAL APPRAISAL REPORT F,,, No. 40101458 EST MAT'EDSITE VALUE .................... · · = $ 55,000: Comments on Cost Approach [such as. source bt cost estimate EST MATED REPRODU~'q'ION COST-NEWOF IMPROVEMENTS: s~te va~ue, s~3uare toot calculation an~ for HU~ VA ant Fm~A. Dwelling Sq. Ft. ~ $ ;~ $ !i 0 , esttmatect rema~mng econom:c hle of the ~rooer~ / Sq. Ft. ~ $ .. = 0 i The site value as vacant is based on market trends. = iTotal economic life of 100 yrs. Garage~,alx~ ... Sq.F~. ~$ = 0 '~o~ Es~mated Cost New .............. = $ 0 Less Physical ! Funct~ona! Ex~ema Est. Rema~mng E~n. bfe DepreCiated VaJue of improvements ................. = $ 0 'As-is' Value of Site improvements. = ¢ INDICA'~ED VAI.UE B,Y COST APPROACH = $ N/'~' ITEM SUBJEC~ COMPARABLE NO ~ COMPARABLE N3 £ 3OM~ARA~.._E l'~2 5519 Sumter Avenue N. 7637 53rd Avenue N. 5437 Utah Avenue N. 7806 53r0 Avenue N Ada'ess New Ha I New Hope ~ New Hope r New Hooe ~ ' - :.: ~rox. 1/4 Mile ,Approx. 1/4 Mite .ApDrox 1/4 Mile :oata a~r I Inspection I MLS/County t MLS/County I MLS/County Verification Sources I County Info. ! 46 Days on Market 114 Days on Market ; 28 Days on Market VALUE ADJUS'RVE]~S ) DESCRIPTION r DESCRIPTION * (-) $ ~.~ DESCRIPTION · {.15 ~.~-. DESCR!PTtON SalasorFinanc~ng [N'~n6-'~;~:~'.-'. "~' i Cony/0 Pts : i Cony/0 Pts ;Conv/0 Pts concemons |N/A"- ' By Seller ! By Seller ~ By Seller Date of Sale/Time t N/A ' :ClSd 11/03 : I Clsd 11/03 ; Clsd 8/03 Lobation [ Suburban t Similar Neiqh.~ . ! Similar Neiqh.. ..... :Stmilar NeLqh I.sasem~ f Fee'Simple ! Fee Simple i Fee Simple ; Fee Simple Site ! 102x170 ', 75x139/Inf. : 5,000; 79x134/Inf. 5,000 ! 76x132/Inf 5000 ~ew Residential I Similar View ) Similar View I Similar V~ew Rambler/Good J Rambler/Eql.. t Rambler/Eql. ~ Rambter/Eql ~of~ I Av,q to Good tSimilar Quality I Similar Quality ' Similar Quality ~49 Yrs. ~42 Years 150 Years ~40 Years Condition I Good Cond. ! Similar Cond. t Inf. Cond. 5,000; Similar Cond Roomcount 30[ 5: 31 1.00 5: 3 1.00: . 5' 3: 1.00: 6 3 1.00 ~ea ; 912 Sq. Ft 1,056 Sq.F~ ' -.4~300 925 SqFt 1,0.52 SqR 8asamsnt&F~i~ed t FuII ! FuJI : I FulJ . ~ Fuli Rooms Balow C,'aae 1866 SF Fin. ! 550 SF Fin. 3,2001775 SF Fin. 9001785 SF Fin. 800 I Averaqe Util. I Similar Utility : I Similar Utility f Similar Utility Gas FA C/Air I Gas FA C/Air t Gas FA/None 1,500 t Gas FA C/Air tt~ms { Unknown I Unknown 'r . ! Unknown CarGara.qe 12CarGaraqe. ; -5,000tl CarGara.qe 12 Car Garage Porch, Pa~c. oec~. , None Deck : -2,0001 None t Deck -2,000 None None ~ J None t None i None ; 1,500 i None 1.500 ! WhplTub Other I N/A N/A : N/A , I N/A Comments on Sakes Comparison (including the subject property's compatibility to the neighborhood, etc. ): Room count adiustments are included the GLA adjustment only. GLA adjustments are made usin.q $30 per square foot. Bath room adjustments are made using $3,000 Der full bath and $1,500 per 1/2 bath. Basement area adjustments are made using $10 per finished scluare foot. See attached information for discussion of sales comparison adjustments. ITEM NIA SUBJECT t COMPARABLE NO. 1 Date, Prlca and Data See Comp Sales Grid I COMPARABLE NO. 2 i COMPARABLE NO. 3 f See Comps Sales Grid N/A l N/A So~:eb-r~x~saes N/A I N/A I See Comp Sales Grid ~n)~e~ofaprrasai N/A MLS/County Records MLS/County Records I MLS/County Records · ~aiysis of any curt'ant ~,-~,e.=i~ of sale, ~., cr lis*Jng of the subject pe:,petty and analYas of any 13r~or sacs bi su~ect anti ~a31es wlt~q one yea'of ~ da e o~ Per local MLS listin information and count records the sub'ect has not been listed or transferred in the past 36 months. INDIC~ATED VALUE BY,%AI.ES COMPARISON APPROACH for the structural or mechanical elements of the roe . Final Recom~iatJon: Indicated value b sales corn arison: $199 000. The sale corn arison best reflects the actions of the ~cable therefore it was not included. The mcome a roach was considered but not used due to limited market data. The purpose of this ap~ ~s t~ estimate the market ~aue of the rea ~opaly that ~s the ~bjant of ttas rape-t, based o~ the above mndit~ns and ~ ¢ali~cat~0a, ~nt~gant and I~r~ting canditisas, and market value ae~in~t~o~ that are stated ~ the ~ r. mddie ivac R~m 439/Fan~e Mae Fa.m 10(~4B (Rew.,ed 6/93 (WNICH IS 'FHE bATE OF IN&mEC~ON .a~D 13.1E ~ bATE OF TH~ RE~ ?O BE $ 199,000 SUI~ ,N~ (ONLY IF REQUIRED): Si~'e ~Did ~}Did Not Name Gre ~/. Cal~sl Real Pro Name DateRe S~ed Februa 17 2004 ~ thspectProperty State Certification # 4002346 State MN State Carffiication # O~ State Li..__._.._._~nsa # ~ ~ State PAGE2 OF 2 State Forsythe Appraisals, LLC SUBJECT PROPERTY PHOTO ADDENDu,'~ Borrower: N/A File No. 40101458 Sumter Avenue N. Case No.: Kessler ~St: MN --Zip: 55428 ~ ~ ~-'~'w Hope/Ken DoresK¥ · ': 'i ~ .~. ~. · ~ · ,- ~, · FRONT VIEW OF SUBJECT PROPERTY . ~" .~ _ .:~ STREET SCENE IBorrower: N/A FileNo.. 40101458 Address: 5519 Sumter Avenue N. Case No.: Kessler City: New Hope St: MN Zip: 55428 Lender: City of New Hope/Ken Doresl<¥ Borrower: N/A File No 40101458 Address: 5519 Sumter,Avenue N. Case No.: Kessler J C~: New Hope St: MN Zip: 55428 Lender C~ty of New Hope/Ken Dores~y COMPARABLE PROPERTY PHOTO ADDENDUM Bon'ower: N/A File No.' 40101456 J Ad~iress: 5519 SumterAvenue N Case No.: Kessler City: New Hope St: MN Zip: 55428 Len0er: City of New Hope/Ken DoresKv ~"'.. ,~ COMPARABLE SALE #1 . .-~ ~ ' ..,~.,?.-, . . .;,4~&~ .'-, , ~.,,~N~,,-~.~,;,~ ~_. 7637 53rd Avenue N · ~~ New Hope COMPARABLE SALE #2 5437 Utah Avenue N. New Hope COMPARABLE SALE #3 ~', ~ ~/ 78~ 53rd Avenue N. New Ho~ ADDENDUM Borrower~ N/A Flte No 40101455 Property Adaress: 5519 SumterAvenue N Case Nc · Kessfe~ C~: New Ho~e State: MN Z~' 55,425 Lencier: City of New Hole/Ken Doresl(y ADDITIONAL FEATURES: In addition, the subject has: a detached one car garage, large storage shed. ceii~ng fans, vaultecl ceilings, skylight, whirlpool tub. CONDITION OF THE IMPROVEMENTS: Recent improvements per homeowner - new bath, new vinyl siding, refinished wood floors, new basement egress window, new extedor doors, new furnace, new central air and new garage door. The subject has been inspected for physical, functional, and external inadequacIes. The subject has no apparent functional or extemaJ obsolescence. COMMENTS ON SALES COMPARISON: All comparables have smaller lots and are inferior in site value. Comparable two is updated but not to the extent of the subject. It is considered somewhat inferior in condition. TRANSMI'I-rAL LETTER: The subject was inspected on February 17, 2004. The estimated market value as of February 17, 2004 (effective date), is $199,000. The property was appraised by Gregory V. Callahan, Licence Number 4002346, Certified Residential Real Property Appraiser. A certified residential real property appraiser may appraise 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 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 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. 4.pastACcording36 monthst° the county and the MLS system, the subject property has not been transferred in the 5. The subject property was inspected on February 17, 2004, the report was prepared on February 17, 2004, the effective date of the appraisal is February 17, 2004. 6. The subject is an existing structure. This appraisal is made "as is." 7. Personal property was notincluded 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 considered but not considered applicable, therefore it was not included. 9. The subject is a single family residential property. Revenues, expenses, and/or vacancies do not apply. Aaaenaum Page 1 0~2 ADDENDUM Bon'ower: N/A, F~e NE 4010145~ Property Aclaress: 5519 SumterAvenue N Case Nc ' Kess~e' ,Cit~: New Hope Stem' MN Z~c 55.42~ Lender: City of New Hope/Ken Doresky 10. Current and future employment or compensation is not contingent upon the reporting of a predetermined value or direction in value treat favors the cause of the chent, the amount of the vaiue estimate, the attainment of a stipulated result or the occurrence of a suPsequent even',. 11. This appraisal report was completed in conformity with the Uniform Standards of Professional Appraisal Practice. 12. If the photos included in this appraisal are digital/electronic ~mages, they have not been enlarged. enhanced, or altered in any way. 13. If electronic/digital signatures are used, it has been ruled acceptable appraisal practice by USPAP, 14. The appraiser certified that if this appraisal included an electronic/digital signature it is maintained and controlled by the appraiser completing the report. GC A~en~ium Page 2 of 2 DIMENSION LIST ADDENDUM Borrower:, N/A FileNo,: 40101458 Property Address: 5519 Sumter Avenue N. Case No.: Kessler City: New Hope State: MN Zijr 55428 GROSS BUILDING AREA (GBA) .. 1,82~. GROSS LIVING AREA (GLA) 912 Ama(si Area i % of GBA uv~ 912 ~ 50.00 Lav~ ~ 912 50.00 Level 2 ~._.~0 0.00 Level 3 0 0.00 om~ 0 0.00 b~,.~en,: I 912 50.00 C, aregeI 0 0.00 Area Measurements Area Type Level2 Level3 Other I Bamt. Garage Meaeurements Factor Total Level 1 38.00 x 24.00 x 1 = 912:00 _-- - I FLOORPLAN ' Borrower: N/A File No' 40101456 · Property Address: 5519 Sumter Avenue N. Case No,: Kessler City: New Hope State: MN Zip: 55428 of New y 38.0' !i , Dn Kitchen Bedroom Bedroom c~~ ~ ,,Living Room Bath Bedroom 38.0' Sketch by Apex IV Windows~ Code AREA CALCULATIoNs SUMMARY LIVING AREA BREAKDOWN Description Size Totals , , Breakdown Subtotals TOTAL LIVABLE - (rounded) 912 I Area Total (rounded) 912 PRICE DIFFERENTIAL PAYMENT / ANALYSIS OF COMPARABLE PROPERTIES Subject Comparable Comparable Comparable Property #1 Property #2 Property #3 Price (appraised) $200,000 $234,900 $234,900 Address 5446 Winnetka Ave 4848 Virginia Avenue 7760 47 ½ Avenue North North North City New Hope New Hope New Hope Date of Inspection Style Split Entry 4-level 2-Story Construction Average to Good Average Average Actual Age/Eft. Age 1955 1963 1966 Condition EGF Average to Good Average Average No. of Units 1 I 1 No. of Rooms 8 8 9 No. of Bedrooms 3 4 3 Bedrooms Required No. of Baths 1 2.0 2.5 Above Ground 1,157 sq ft Finished sq ft Below Ground 1,041 sq ft Finished sq ft Total Finished Area 2,198 sq ft 2,008 sq ft Basement Full - finished Full - finished Full - finished Bsmt- Types of Fin. Family room, Family Room, Office, Family Room Rms. laundry, rec room Laundry, Pla)/Room Heat/Cooling Gas FA Gas FA / CA Fireplaces Wood Stove One None Other Finished Space Garage I - attached 2 - attached Lot Size 70x300 137x76 125x90 21,000 sq ff 10,412 sq ft 11,250 sq ff Neighborhood E/B Suburban Suburban Suburban Schools NA NA 'NA Public Transportation NA NA NA Church NA NA NA Place of Employment NA NA NA Water 1. Type 2. 1. City 1. City 1. City 1. Adequate 2. Yes 2. Yes 2. Yes Sewer 1. Type 2. 1. City 1. City 1. City 1. Adequate 2. Yes 2. Yes 2. Yes Other Comments: * These amounts factored in to the comparable price Comparable Price $234,900 Project Price $222,500 Difference = $12,400 Moving Expenses (self move) + $2,650 Total Benefit = $15,050 R/VV Agent Kari Klassen Date 3/18/04 - revised per Ken Doresky PRICE DIFFERENTIAL PAYMENT I ANALYSIS OF cOMPARABLE PROPERTIES Subject Comparable Comparable t Comparable Property #1 Property #2! Property ~ Price (appraised) $147,000.00 t $189.900.00 i $194.900.00 I $204.900.00 Address 5512 Winnetka I 5948 Ens'gn Ave' N I 4756 Decatur Ave N I 6100 W'nnetka Ave Ave. N City New Hope New Hope New Hope j New Hope Date of Inspection 1.6-04 I Style Rambler One Sto~ One Story One Stor~ Construction Wood / Stucco N/A N/A N/A Actual Age/Eft. Ape 50 / 12 N/A N/A N/A Condition EGF Average Average Average Average No. of Units 1 1 I 1 No. of Rooms 5 6 7 7 No. of Bedrooms 2 3 3 4 Bedrooms Required 1 , I 1 1 No. of Baths I 2 I 2 Total Area (Sq. Ft.) 784 1110' . 1024 1,057 Basement NA Full / Fin ' Full / Fin Full / WO Bsmt- Types of Fin. FA / Laun I W$ / Off BR / Den Rms. Heat/Coolin~ Gas FA / None Gas FA / Central Gas FA ) Central Gas FA / Central Fireplaces None None None One Other Finished Space Garage One Att One Att Two Del Two Att '1 Lot Size 70x2901 75X125 / 9,375 Sqft Irt 1.24 A 80x137 I 20,300Sqf1 / .46 A / .21 A 10.960 Sqft / .25 A Ne. ighborhood EIB' Suburban '" E E E ' Schools y y y y Public y y y y Transportation Church y 'y y y Place of' y y y y Employment Water 1. Type 2. 1. City 1. City 1. C'i'ty 1. City Adequate 2. Yes 2. Yes 2. Yes 2. Yes Sewer 1, Type 2. 1. City 1. 'City 1. City 1. City Ade~luate 2. Yes 2. Yes 2. Yes 2. Yes Other Comments: * These amounts factored in to the comparable price Comparable Price $189,900.00 Project Price - $147,000.00 Difference = $42,900.00 Estimated Moving Expenses + $1,700.00 Estimated Closing Costs + $4,000.00 Total Benefit = $48,600.00 Relocation Consultant: Scott Means Date: 1-13-04 PRICE DIFFERENTIAL PAYMENT I ANALYSIS OF COMPARABLE PROPERTIES Subject Comparable - -Comparable Comparable Property #1 ' Property #2 Property #3 Price (appraised) $199,000 $224,900 $212,900 $223,900 Address 5519 Sumter Ave 5443 Sumter Ave 4352 Halifax Ave 7010 Corvallis Ave North North North North , .. City New HoPe New Hope Robbinsdale Crystal Date of Inspection Style Ramble'r One Story Split Level One Story Construction Average to Good Above Average Above Average Average Actual Age/Eft. Age 1955 1962 1984 1977 Condition EGF Good Above Average Above Average Average No. of Units 1 I I 1 No. of Rooms 7 8 8" 8 No. of Bedrooms 4 4 4 4 Bedrooms Required No. of Baths 2 1.75 1.75 1.75 Above Ground 912 sq ff 1,550 sq ff 1,162 sq ft 1,089 sq ft Finished sq ff Below Ground 866 sq ff 760 sq ft 1,162 sq ft 1,000 sq ft Finished sq ft Total Finished Area 1,778 sq ft 2,310 sci ft 2,324 sq ft 2,089 sq ft Basement Full - finished Full - Finished Full - finished Full - finished Bsmt- Type's' of Fin. Family room, Amusement Room Family Room, Family Room, Rms. Bedroom & Bath Bedroom (2) Bedroom Heat/Coolin'~ Gas FA / CA, Gas FA / Wall Gas FA / CA Nat Gas FA / CA Fireplaces None One One One Other Finished Space Garage 1 - attached 2 - detached 2 - attached 2 - attached Lot Size 17,340 sq..ft 10,950 sci ff 7,830 sq ff 16,692 sq ff Neighborhood E/B Suburban Suburban Suburban Suburban Schools NA NA NA NA Public Transportation NA NA NA NA Church NA NA NA NA Place of Employment NA NA NA NA Water 1. Type 2. 1. City 1. City 1. City 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: Comparable Pdce $224,900 . , Project Pdce $199,000 Difference = $25,900 Moving Expenses (self move) + $2,150 Total Benefit = $28,050 RNV Agent Kari Klassen Date 2-19- O3 ;';' 56TH AVE N ' '~ 7615 i -'~ e~37~ ?~ [ -- '~, 5540 ':" ;'-' . ---- 73~)1 o--' ... ~ 5524. 5519 ~ " 5509 :: , ..' ,' :7708 ; = 5512 5501 ." .' ~ , 7608i : sso ' AVE N : '-'..-' ! '~)1__' 5446 I 5437..;Z~'.~~.~ .......... 54~ ~'~"~'- ' "~!,_{iZ, ~ City-Owned Properties {3-15-04) ' ,~4~,4. ,~4~ ! ' 7 ' 1. 5340 Winnetka Ave. N. · , 5426 ;: 542 : 2. 5400 Winnetka Ave. N. ': ........ ~ ......... ~ ....... ~ 3. 5406 Winnetka Ave. N. ~ ~r ~ R~P 4. 541w12 w~nnetka Ave. N. : ! , ." 5. 5420 Winnetka Ave. N. ..: 5417 , ; $420 ~ 542;5 6. 5422 Winnetka Ave. N. , _._ t .... 4.' ..... 7. 5500 Winnetka Ave. N. .~. · $~,I~ ~ ~ 54~ ~' ~ ' 8. 5506 Winnetka Ave. N. --' :LIJ, . .' 9. 5518 Winnetka Ave. N. ; ~ I"-- ~ ..... ? ....... 10. 5524 Winnetka Ave. N. ~ 5409 ~:~"' _; ~ ~ :. 5409 11. 5532 Winnetka Ave. N. 12. 5550 Winnetka Ave. N. ,~ ~ i(/') } ~;' ~401 13. 5520 SumterAve. U. ~; _ _1 ~ ; ,' 14. 5530 Sumter Ave. N: ---' -". ; . 15. 5538 Sumter Ave. N. : :- 5~ ;' ~,?~7 16. 5546 Sumter Ave. N. .- 17. 5559 Sumter Ave. N. " ; : 18. 7601 Bass Lake Road Ext. : 5324, 5331 , ; 19. 7603 Bass Lake Road Ext. ; : ~ ....... 'r" .......... 20. 7605 Bass Lake Road ~ ;r.- /i ~ "r~l~ '.., ': ....... [~,318~. ......... :~.~2~ 21 7609 Bass Lake Road - i -~ _r,,.,.._. i , · : ~ ~ ~ "?'- ..:'. 22. 7621 Bass Lake Road Ext. · : t I ,, i ~ ~ ~ ~; ~" ; ' · ~12 ~ 23. 7801 Bass Lake Road · ; o 5307 : i .. .... ~.....~. r ~,,..~... ~.-'" : ' x : ~"' ...... "· -- --., Purchase Agreements (as of 3-15): ,, :-- '"'--- %.: ;' " 1. 5440 Winnetka Ave. N. , ~ 7825 '~"',.._~,-,.i 7800 -"'" 530~ ..-'~.,~1~ , 2. 7615 Bass Lake Road , ~ ...... _~ '.,.~,~ ~:. : ...t"' '.. ,;J "" "-..... / ' 3. 7643 Bass Lake Road "} ..... :"."'"PO'.,- - ;) ° ,"""".-'.. ----""" ," ~-., _-- ',, '*'. : ,,, ~; _ ,', Property Information Search by Street Address Result page Page 1 of 2 Hennepin County, MN www. .us t~~ Property Information Search Result The Hennepin County Property Tax web database is updated daily (Monday - Friday) at approximately 9:15 p.m. (CST) Search By: Parcel Data for Taxes Payable 2004 Click Here for State Copy of Payable 2004 Tax Statement I Property ZD: 05-118-21-33-0016 Address: 5446 WINNETKA AVE N Municipality: NEW HOPE School Dist: 281 Construction year: 1955 HOUSE or BUTLDING Watershed: 0 Parcel Size: 70 X #: Sewer Dist: 02 15446 Owner Name: C R DAHLMAN ETAL STREET NAME: Taxpayer Name C R DAHLMAN (at least first 3 characters) & Address: 5446 WINNETKA AVE N i i % kaAVenUe N. NEW HOPE MN 55428 UNTT # (if applicable) i Most Current Sales Information Sales prices are reported as listed on the Certificate of Real Esti I. r-l~,'~r' ! Value and are not warranted to represent arms-length transacti search I NO SALE INFORMATION ON FILE FOR THIS PROPERTY. ~ records per page Tax Parcel Description Addition Name: AUDITOR'S SUBD. NO. 226 Lot: 038 Block: Metes & Bounds: N 70 FT OF S 590 FT EX ROAD Abstract or Torrens: ABSTRACT Value and Tax Summary for Taxes Payable 2004 Values Established by Assessor as of January 2, 20 Estimated Market Value: $153,000 Limited Market Value: $135,200 Taxable Market Value: $135,200 Total Improvement Amount: http ://www2.co.hennepin.mn.us/pins/addrresult.j sp 3/17/04 Property Information Search by Street Address Result page Page 2 of 2 Total Net Tax: $1,841.74 Total Special Assessments: Solid Waste Fee: $24.14 Total Tax: $1,865.88 Property Information Detail for Taxes Payable 20C Values Established by Assessor as of January 2, 20 Values: Land Market $46,000 Building Market $107,000 Machinery Market Total Market: $153,000 Land Limited $40,600 Building Limited $94,600 Total Limited: $135,200 Qualifying Improvements Classifications: Property Type RESIDENTIAL Homestead Status HOMESTEAD Relative Homestead Agricultural Exempt Status 22947 Hennepin County is providing this information as a public service. Tax related questions: Need help locating a property on our site? Check out our _S_e_a_r_c...h_.._Tjp_ S Copyright © 2004 Hennepin County, Minnesota I www. Hennepin.us Home I Security/Privacy Statement http ://www2.co.hennepin.mn.us/pins/addrresult.j sp 3/17/04 Property Information Search by Street Address Result page Page 1 of 2 Hennepin County, MN WWW. Property Information Search Result The Hennepin County Property Tax web database is updated daily (Monday - Friday) at approximately 9:15 p.m. (CST) Search By: Parcel Data for Taxes Payable 2004 Click Here for State Copy of Payable 2004 Tax Statement · ~ORESS I Property ZD: 05-118-21-3a-0006 Address: SS12 WINNETKA AVE N Municipality: NEW HOPE School Dist: 281 Construction year: 1953 HOUSE or BUILDING Watershed: 0 Parcel Size: 70 X #: Sewer Dist: 02 5512 Owner Name: JOSE A MENDEZ STREET NAME: Taxpayer Name JOSE A MENDEZ .(at least first 3 characters) & Address: 5512 WINNETKA AVE N ]Winnetka Avenue N. NEW HOPE MN 55428 UNIT # (if applicable) i' Most Current Sales Information I Sales prices are reported as listed on the Certificate of Real Est~ Value and are not warranted to represent arms-length transacti 1 Clear I Search ,I Sale Date: April,. 1999 ~ records per page Transaction Type: Warranty Deed 20 ~ Sale Price: $82,000 Tax Parcel Description Addition Name: AUDITOR'S SUBD. NO. 226 Lot: 038 Block: Metes & Bounds: N 70 FT OF S 830 FT EX ROAD' Abstract or Torrens: ABSTRACT Value and Tax Summary for Taxes Payable 2004 Values Established by Assessor as of January 2, 20 Estimated Market Value: $110,000 Limited Market Value: $89,700 Taxable Market Value: $89,700 Total Improvement Amount: http ://www2 .co.hennepin.mn.us/pins/addrresult.j sp 3/17/04 Property Information Search by Street Address Result page Page 2 of 2 Total Net Tax: $1,096.44 Total Special Assessments: Solid Waste Fee: $16.02 Total Tax: $1,112.46 Property Information Detail for Taxes Payable 20t2 Values Established by Assessor as of January 2, 20 Values: Land Market $46,000 Building Market $64,000 Machinery Market Total I~larket: $110,000 Land Limited $37,500 Building Limited $52,200 Total Limited: $89,700 qualifying Improvements Classifications: Property Type RESIDENTIAL Homestead Status HOMESTEAD Relative Homestead Agricultural Exempt Status 22920 . Hennepin County is providing this information as a public service. Tax related questions: _t_a_xj. nfo_~co.henne_.pj__n..m_o.~ Need help locating a property on our site? Check out our _S......_e_a_.r.~c_h _.T._jp_S_ Copyright © 2004 Hennepin County, Minnesota I www. Hennepin.us Home I Security/Privacy Statement http ://www2.co.hennepin.mn.us/pins/addrresult j sp 3/17/04 Property Information Search by Street Address Result page Page 1 of 2 Hennepin County, MN ~'~-'~;'"~=~I Property Information Search Result The Hennepin County Property Tax web database is updated daily (Monday - Friday) at approximately 9::/5 p.m. (CST) Search By: Parcel Data for Taxes Payable 2004 Click Here for State Copy of Payable 2004 Tax Statement Address: 5S19 SUMTER AVE N Municipality: NEW HOPE School Dist: 281 Construction year: 1954 HOUSE or BUTLDTNG Watershed: 0 Parcel Size: 102.2 #: Sewer Dist: 02 5519 Owner Name: R R KESSLER & T L KESSLER STREET NAME: Taxpayer Name ROIVlE R & TAMMY L KESSLER .(at least first 3 characters) & Address: 5519 SUMTER AVE N Sumter NEW HOPE MN 55428 Avenue N. UNZT # (if applicable) HOSt Current Sales Information Sales prices are :rePorted as listed :on the Certificate of Real Est~ Value and are not warranted to represent arms-length transacti Il Clear II Sale Date: March, 1992 Search ~ ~ Sale Price: $73,000 ~ records per page Transaction Type: Warranty Deed Tax Parcel Description Addition Name: REG. LAND SURVEY NO. 0097 Lot: Block: Metes & Bounds: TRACT E Abstract or Torrens: TORRENS Value and Tax Summary for Taxes Payable 200, Values Established by Assessor as of January 2, 2, Estimated Market Value: $149,000 Limited Market Value: $124,600 http://www2.co.hennepin.mn.us/pins/addrresult.jsp 3/17/04 Property Information Search by Street Address Result page Page 2 of 2 Taxable Market Value: $124,600 Total Improvement Amount: Total Net Tax: $1,668.65 Total Special Assessments: Solid Waste Fee: $22.25 Total Tax: $1,690.90 ~) Property Information Detail for Taxes Payable 2C Values Established by Assessor as of January 2f 2, Values: Land Market $50,500 Building Market $98,500 Machinery Market Total Market: $149,000 Land Limited $42,200 Building Limited $82,400 Total Limited: $124,600 Qualifying Improvements Classifications: Property Type RES[DENT[AL Homestead Status HOMESTEAD Relative Homestead Agricultural Exempt Status 22928 Hennepin County is providing this information as a public service. Tax related questions: ~.~_.x_j_nf_o_~_c_g.._h_~p__.e_pLn_.,.._m_o_,..u..s. Need help locating a property on our site? Check out our $._e_a. r(;.h..Tips Copyright © 2004 Hennepin County, Minnesota I www. Hennepin.us Home I Security/Privacy Statement http ://www2. co.hennepin.mn.us/pins/addrresult.j sp 3/17/04 EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development 3-22-04 EDA Item No. By: Kirk McDOnald, Director of CD & Ken Doresk¥, CD Specialist By: 8 RESOLUTION FINDING NEED TO ACQUIRE TITLE AND POSSESSION OF THE WINNETKA AVENUE EAST AREA DEVELOPMENT PROPERTIES PRIOR TO THE COMMISSIONER'S AWARD, APPROVING THE APPRAISAL OF DAMAGES FOR EACH PROPERTY RESULTING FROM THE TAKING AND RATIFYING AND AUTHORIZING ALL STEPS TAKEN BY STAFF TO ACQUIRE THE PROPERTIES (IMPROVEMENT PROJECT FILE 724) REQUESTED ACTION Staff requests EDA consideration of the attached resolution prepared by the city attorney for the condemnation proceeding to acquire property listed in the resolution by the "quick take" procedure. Per the attached city attorney correspondence, "Basically, the EDA is approving our Forsythe appraisal amounts by the adoption of this resolution. This action is important for those property owners that we are not successful in acquiring their property on a voluntary basis. For those properties not acquired voluntarily, we will pay to the owner or into court the approved appraisal values listed in the resolution. Assuming the court issues our "quick take" order, the EDA will then have a right to title and possession of the property on or after May 24, 2004 on condition we have made the approved payment. Adoption of this resolution does not prevent us from continuing to negotiate with the owners to acquire their property voluntarily. However, it does start the time period running where both parties either have to agree on a purchase price or submit the issue of valuation and damages to a commission of three persons appointed by the court. Appointment of commissioners will also occur after the April 6th court hearing." POLICY/PAST PRACTICE City goal #2 is to emphasize the maintenance and redevelopment of commercial and residential .properties within the city. The City Council has been addressing the residential portion of this goal through the city's many housing activities, including acquiring property in areas designated for redevelopment in the Comprehensive Plan. BACKGROUND Over the past several years the City has been acquiring property in the subject area in anticipation of future redevelopment. As directed by the Council at the November 3, 2003, Work Session, staff has been To: I:\RFA\PLANNING\Housin~I\East Winnetka Redevelopment\Q - Appraisal approval.doc Request for Action Page 2 3-22-04 coordinating with the remaining owners in the subject area to complete the acquisition of property. On January 26, the EDA authorized condemnation of the remaining properties. Staff has coordinated with Evergreen Land Services, the city's relocation consultant for payment of relocation benefits to all remaining sellers. Below, please find a list of the remaining properties and current status: Purchase agreements: · 5440 Winnetka Avenue North, Purchase Agreement approved - closing 4/12/04. · 5446 Winnetka Avenue North, Purchase Agreement consideration, 3/22/04. · 5512 Winnetka Avenue North, Purchase Agreement consideration, 3/22/04. · 5519 Sumter Avenue North, Purchase Agreement consideration, 3/22/04. · 7643 Bass Lake Road, Purchase Agreement approved - closing 4/12/04. · 7615 Bass Lake Road (New Hope Alano), Purchase agreement approved, closing upcoming. Negotiation: · 5434 Winnetka Avenue North. · 5540 Winnetka Avenue North. · 5531 SumterAvenue North. · 5537 SumterAvenue North. · 7809 Bass Lake Road (20-20 Eye Clinic). Staff recommends approval of the resolution. FUNDING The subject property is located in an area where TIF funds can be expended. TIF funds would be used for property acquisition, relocation and associated holding costs. During the 2003 State Legislative Special Session, the city's TIF special legislation was passed. In December 2003, the district was approved by the City Council. ATTACHMENTS · Resolution · City Attorney Correspondence, 3-17-04 EDA RESOLUTION NO. 04 - RESOLUTION FINDING NEED TO ACQUIRE TITLE AND POSSESSION OF THE WINNETKA AVENUE EAST AREA DEVELOPMENT PROPERTIES PRIOR TO THE COMMISSIONER'S AWARD, APPROVING THE APPRAISAL OF DAMAGES FOR EACH PROPERTY RESULTING FROM THE TAKING AND RATWYING AND AUTHORIZING ALL STEPS TAKEN BY STAFF TO ACQUIRE THE PROPERTIES BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope, Minnesota (hereafter "EDA") as follows: WHEREAS, the EDA has authorized commencement of an eminent domain proceeding to acquire certain properties commonly described as follows located in the City of New Hope: Parcel Common Address Forsythe Appraisals, LLC Number Appraisal of Damages 1. 5434 Winnetka Avenue North $198,000.00 2. 5440 Winnetka Avenue North $220,000.00 3. 5446 Winnetka Avenue North $200,000.00 4. 5512 Winnetka Avenue North $147,000.00 5. 5540 Winnetka Avenue North $225,000.00 6. 7615 Bass Lake Road $465,000.00 7. 7609 Bass Lake Road $198,000.00 8. 7643 Bass Lake Road $180,000.00 9. 7809 Bass Lake Road $175,000.00 10. 5537 Sumter Avenue North $168,000.00 11. 5531 Sumter Avenue North $199,000.00 and, WHEREAS, the EDA adopted EDA Resolution 2004-03 at its January 26, 2004 meeting and that said Resolution authorized the above described properties be acquired by the "Quick-Take" procedure pursuant to Minn. Stat. §117.042; and WHEREAS, the necessity to acquire the above described properties is set out in EDA Resolution 2004-03 and the findings made by EDA Resolution 2004-03 are incorporated into the herein Resolution by this reference as if said findings were fully set out herein; and WHEREAS, the EDA bases its fmdings to acquire the above described properties by the "Quick-Take" procedure on the fact that the time schedule for the construction of the approximately 170 units of new residential housing within the Winnetka Avenue East Housing Redevelopment Area by the Ryland Group, Inc. requires a start date of July 1, 2004 to ensure timely completion of the project. Furthermore, the EDA has contractually agreed with Ryland to acquire fee title to the above described properties and convey the same to the Ryland Group, Inc. by July 1, 2004. Therefore, it is in the best interest of the City of New Hope and the EDA that the proposed residential housing redevelopment project be timely started during the 2004 construction season and to accomplish this objective, the construction work necessary to complete the project must commence during July, 2004; and WHEREAS, an appraisal of damages resulting from the proposed takings of the above described properties has been prepared for each property by Forsythe Appraisals, LLC, an independent certified fee appraiser, and the damages resulting from the taking of each property is also set out above; and WHEREAS, said determination of damages in the amounts described above are hereby adopted by the EDA as its approved appraisal of value for each property as required by Minn. Stat. § 117.042. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the acquisition of title and possession to each property described above by the "Quick-Take" procedure permitted under Minn. Stat. §117.042 is necessary and in the best interest of the City of New Hope and the EDA. 2. That the Forsythe Appraisals, LLC appraisal of damages for each property described above is hereby approved and declared by the EDA as its official determination of damages resulting from the taking for each property. 3. That EDA staff are hereby authorized to proceed forthwith to acquire the subject properties described above by the "Quick-Take" procedure per Minn. Stat. §117.042 and to take all reasonable steps necessary and required to accomplish this objective. 4. That all actions taken by staff to acquire the above described properties by the "Quick-Take" procedure prior to the adoption of this Resolution are hereby ratified and approved as authorized by the EDA. Adopted by the Economic Development Authority in and for the City of New Hope this 22na day of March, 2004. W. Peter Enck, President Attest: Daniel J. Donahue, Executive Director P:\Attorney\SAS\l Client Files\2 City of New Hope\99-53074 East Winnetka condemnation\Re.so Approv Acquisition and appraisals for damages.doc JENSEN & SONDRALL, P.A. Attorneys At Law 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443-1968 TELEPHONE (763) 424-8811 3 TELEFAX (763) 493-5193 e-mail law~jensen-sondrall.com DOUGLAS J. DEBNER2 GORDON L. JENSEN~ GuN n. NORTON By e-mail and regular mail STEVEN A. SONDRALL STACY A. WOODS March 17, 2004 OF COUNSEL LORENS Q. BRYNESTAD Ken Doresky Community Development Specialist City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 RE: Proposed Resolution Approving Appraisal Of Damages For The Taking Of Each Property In Winnetka Avenue East Housing Redevelopment Area Our File: 99.53074 Court File: CD-2743 Dear Ken: Enclosed is a proposed EDA resolution for consideration at the March 22nd meeting titled as follows: "RESOLUTION FINDING NEED TO ACQUIRE TITLE AND POSSESSION OF THEWINNETKA AVENUE EAST AREA DEVELOPMENT PROPERTIES PRIOR TO THE COMMISSIONER'S AWARD, APPROVING THE APPRAISAL OF DAMAGES FOR EACH PROPERTY RESULTING FROM THE TAKING AND RATIFYING AND AUTHORIZING ALL STEPS TAKEN BY STAFF TO ACQUIRE THE PROPERTIES" Adoption of this resolution is necessary for the scheduled April 6, 2004 court hearing for the condemnation proceeding to acquire the properties listed in the resolution by the "quick take" procedure. Basically, the EDA is approving our Forsythe appraisal amounts by the adoption of this resolution. This action is important for those property owners that we are not successful in acquiring their property on a voluntary basis. For those properties not acquired voluntarily, we will pay to the owner or into court the approved appraisal values listed in the resolution. Assuming the court issues our "quick take" order, the EDA will then ~Real Property Law Specialist Certified Byhave a right to title and possession of the property on or after May 24, 2004 on condition The Mimtesota State we have made the approved payment. Bar Association 2Admitted in Iowa Adoption of this resolution does not prevent us from continuing to negotiate with the March 17, 2004 Page 2 owners to acquire their property volumarily. However, it does start the time period running where both parties either have to agree on a purchase price or submit the issue of valuation and damages to a commission of three persons appointed by the court. Appointment of commissioners will also occur after the April 64 court hearing. If you have any questions about this resolution or the court procedure now going forward in this matter please contact me. Very truly yours, Steven A. Sondrall, City Attorney, City of New Hope JENSEN & SONDRALL, P.A. sas@jensen-sondrall.com Enclosure(s) cc: Kirk McDonald Valerie Leone P:\Attorney\SAS\l Client Files\2 City of New Hope\99-53074 East Winnetka condemnation\ltr K Doresky reso approving appraisal amounts.doc