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021113 EDACITY OF NEW HOPE EDA MEETING City Hall, 4401 Xylon Avenue North February 11, 2013 EDA Meeting will commence upon adjournment of the City Council Meeting President Kathi Hemken Commissioner John Elder Commissioner Andy Hoffe Commissioner Eric Lammle Commissioner Daniel Stauner 1. Call to order 2. Roll call 3. Approval of January 14, 2013, EDA Minutes 4. Resolution authorizing entering into a purchase agreement with Independent School District 281 for the purchase of the Winnetka Learning Center site and adjoining athletic fields at 7940 55th Avenue North (project no. 911) 5. Resolution adopting "Agreement to deliver the city of New Hope Loan and Home Energy Visit Program" within the city of New Hope administered by the Center for Energy and the Environment (CEE) 6. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes January 14, 2013 Regular Meeting City Hall CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to order at 8:16 p.m. ROLL CALL Present: Kathi Hemken, President John Elder, Commissioner Andy Hoffe, Commissioner Eric Lammle, Commissioner Daniel Stauner, Commissioner Staff Present: Kirk McDonald, City Manager Curtis Jacobsen, Director. of Community Development Valerie Leone, City Clerk Jeff Sargent, Community Development Assistant Steve Sondrall, City Attorney APPROVE MINUTES Motion was made by Commissioner Elder, seconded by Commissioner Stauner, to approve the Regular Meeting Minutes of July 23, 2012. All present voted in favor. Motion carried Motion was made by Commissioner Elder, seconded by Commissioner Stauner, to approve the Regular Meeting Minutes of November 19, 2012. All present voted in favor. Motion carried Motion was made by Commissioner Elder, seconded by Commissioner Stauner, to approve the Executive Meeting Minutes of November 19, 2012. All present voted in favor. Motion carried 4200 & 4300 XYLON President Hemken introduced for discussion EDA Item 4, Approval of a Item 4 blight resolution for the properties located at 4200 and 4300 Xylon Avenue North; and approval of resolutions authorizing internal (interfund) loans to a. future TIF District for the properties located at 4200 and 4300 Xylon Avenue North (improvement project no. 893). Mr. Curtis Jacobsen, director of community development, stated Item 4 contains three actions relating to the demolition of the Kmart /Wells Fargo properties: the first item relates to the blight analysis which was completed by LHB, Inc. and the other two resolutions for interfund loans are similar to the resolutions considered at the council meeting. Mr. Jacobsen stated the report from LHB, Inc. has been completed and both parcels meet the two -fold test for blight: 1) 70% of the parcels have to be covered; and 2) more than 50% of the structures have to be considered substandard. Mr. Jacobsen stated the properties meet the blight test criteria EDA Meeting Page 1 January 14, 2013 and have ample structural deficiencies to create a TIF district on these two properties within the next three years. Mr. Jacobsen stated it is recommended the EDA approve interfund loans for advancement of funds in connection with the Kmart /Wells Fargo acquisition /demolition. One resolution authorizes an interfund loan of up to $200,000 from TIF District 86 -1 to pay for costs of demolition of the buildings, remediation of environmental conditions, and qualifying improvements and interest. The second resolution authorizes an interfund loan of up to $100,000 from TIF District 86 -1 to pay for administrative expenses including legal and financial advisors' fees and interest. The city will have the flexibility to reimburse itself in the future if and when a TIF District is created and tax increments are derived from the TIF District. RESOLUTION 2013 -01 Commissioner Stauner introduced the following resolution and moved its Item 4 adoption "A RESOLUTION FINDING THE EXISTENCE OF IMPROVEMENTS AND STRUCTURALLY SUBSTANDARD BUILDINGS ON REAL PROPERTY THAT MAY BE INCLUDED IN A TAX INCREMENT DISTRICT, PURSUANT TO MINNESOTA STATUTES, SECTION 469.174, SUBDIVISION 10(d)." The motion for the adoption of the foregoing resolution was seconded by Commissioner Hoffe, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Lammle, Stauner; and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared du passed and adop ted signed by the president which was attested to by the executive director. RESOLUTION 2013 -02 Commissioner Elder introduced the following resolution and moved its Item 4 adoption "RESOLUTION AUTHORIZING AN INTERFUND LOAN UP TO $200,000 FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH A TAX INCREMENT FINANCING DISTRICT THAT MAY BE CREATED BY THE CITY OF NEW HOPE AND THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY." The motion for the adoption of the foregoing resolution was seconded by Commissioner Stauner., and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Lammle, Stauner; 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. RESOLUTION 2013 -03 Commissioner Stauner introduced the following resolution and moved its Item 4 adoption "RESOLUTION AUTHORIZING AN INTERFUND LOAN UP TO $100,000 FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH A TAX INCREMENT FINANCING DISTRICT THAT MAY BE CREATED BY THE CITY OF NEW HOPE AND THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY ". The motion for the adoption of the foregoing resolution was seconded by Commissioner Lammle, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Lammle, Stauner; 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 EDA Meeting Page 2 January 14, 2013 executive director. ADJOURNMENT The New Hope EDA adjourned at 8:21 p.m. Respectfully submitted, Valerie Leone, City Clerk EDA Meeting Page 3 January 14, 2013 Originating Department Community Development Curtis Jacobsen, Director of CD EDA •�` f Approved for Agenda February 11, 2013 Kirk McDonald, Agenda Section EDA Item No. 4 Resolution authorizing entering into a purchase agreement with Independent School District 281 for the purchase of the Winnetka Learning Center site and adjoining athletic fields at 7940 55 Avenue North (Project No. 911) Requested Action Staff requests the EDA approve the Resolution authorizing the EDA President and Executive Director to sign the Purchase Agreement for the acquisition of the Winnetka Learning Center site at 7940 55th Avenue North.. Policy /Past Practice It is the practice of the staff to obtain EDA approval for the purchase of a parcel of property for the purposes of redevelopment in the city. Background At the Work Session on January 22 the acquisition of the Winnetka Learning Center property was discussed and the Council provided direction to the staff for the addition of this item to the February 11 agenda. After months of negotiation and compromise the City Council is satisfied with the Purchase Agreement and has directed that it be added to an EDA agenda. Funding The EDA. through TIT and authority funds has adequate resources to complete this purchase. Recommendation Staff recommends the EDA approve the attached resolution authorizing signatures on the Purchase Agreement for the Winnetka Learning Center site at 7940 55th Avenue North. Attachments • Resolution • Draft Purchase i Motion by L et, Second by VV IM I: \ RFA \ COMM DEV \ t\ Q & R - Winnetka LeatninR Center PA 2- 11- 13.doc CITY OF NEW HOPE RESOLUTION APPROVING PURCHASE AGREEMENT FOR 7940 55TH AVENUE NORTH BE IT RESOLVED, by the Economic Development Authority in and for the City of New Hope as follows: WHEREAS, New Hope City staff have been in contact with realtors for the Independent School District 281, a public body corporate and a political subdivision of the State of Minnesota (hereinafter referred to as "Owner ") about the purchase of 7940 55 11, Avenue North and the adjoining athletic fields (the "Property "); and WHEREAS, no appraisal of the property has been made rather the informed opinions of multiple realtors providing guidance to the Owner have been relied on; and WHEREAS, the Owner is willing to sell the Property to the New Hope EDA for the sum of $1,750,000.00 as set forth in the Purchase Agreement attached hereto as Exhibit A and incorporated herein by reference; and WHEREAS, it is in the best interest of the New Hope EDA to purchase the Property from the Owner for the sum of $1,750,000.00, with other terms and conditions as set forth in the Purchase Agreement; and WHEREAS, the New Hope EDA hereby approves the Purchase Agreement. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New hope as follows: 1. That the above recitals are incorporated herein by reference; 2. That the purchase of the Property by the New Hope EDA from Independent School District 281, a public-body corporate and a political subdivision of the State of Minnesota for the sum of $1,750,000.00 with other terms and conditions as set forth in the Purchase Agreement attached hereto as Exhibit A, is approved. 3. The President, Executive Director and New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional actions are necessary or desirable, to complete the purchase of the Property in accordance with said Purchase Agreement. Dated the 11th day of February, 2013. Kathi Hemken, President Attest: Kirk McDonald, Executive Director PURCHASE AGREEMENT This Agreement is made effective the day of February, 2013, by and between ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, a public body corporate and a political subdivision of the State of Minnesota, (hereinafter referred to as "Purchaser. ") and INDEPENDENT SCHOOL DISTRICT NO. 281, a public body corporate and a political subdivision of the State of Minnesota (hereinafter referred to as "Seller "). 1. Sale and Purchase of Prope Subject to the terms, conditions, representations and warranties set forth herein, and except for the "Excluded Property" (as that term is defined in Section 5(j) of this Agreement), Seller agrees to sell to Purchaser, and Purchaser agrees to purchase from Seller the following: a. All that certain real property located in the City of New Hope, County of Hennepin, State of Minnesota, having a property address of 7940 55 Avenue North, New Hope, Minnesota, 55428. The real property is generally depicted and identified by the "Tax Records" attached as Exhibit A (the "Real Property "). The Real Property is composed of the following three (3) contiguous parcels. i. 06- 118 -21 -44 -0054 .44 acres (vacant) ii. 06- 118 -21 -44 -0055 5.25 acres (includes building) iii. 06- 118 -21 -44 -0056 11.25 acres (vacant) b. Certain rights and appurtenances pertaining to the Real Property consisting of any right, title and interest of Seller in and to adjacent public streets and adjacent public rights of way. C. The building and all other improvements and fixtures located on the Real Property including the component structural, heating, plumbing, electrical, air - conditioning, and roofing elements incorporated into the improvements. d. All assignable warranties and guaranties pertaining to the Property and given to, assigned to, or benefiting Seller and /or the Property and its improvements regarding the construction, design, use, operation, management or maintenance of the Property and its improvements. 1 e. Unless otherwise expressly stated to the contrary, the assets listed in this Section 1 are collectively referred to as the "Property". 2. Purchase Price; Earnest Money and Payment of Purchase Price a. The purchase price of the Property (the "Purchase Price ") shall be One Million Seven Hundred Fifty Thousand and 00 /100 Dollars ($1,750,000.00) to be paid as follows. L Ten Thousand and No /100ths Dollars ($10,000.00) as earnest money (`Earnest Money ") upon execution of this Agreement, payable directly by Purchaser, which Earnest Money shall be held in an interest bearing account for the benefit of Purchaser in accordance with an escrow agreement among Purchaser, Seller, and Title (as hereinafter defined). ii. The balance of the Purchase Price in cash or by wire transfer of U.S. funds (subject to such other or further allocations and adjustments as are specified in this Agreement to the extent not separately paid outside of the Closing (provided reasonable evidence of such payments is furnished to all parties and Title on or before the Closing) to be received in the trust account of Title, before 4:00 p.m. on the Closing Date (as herein defined). 3. As Is Sale. Other than those representations and warranties expressly set forth in this Agreement, or hereafter furnished by or on behalf of Seller to Purchaser in writing, it is understood and agreed that Seller is not making, and specifically disclaims, any warranties or representations of any kind or character, express or implied, with respect to the Property, including, but not limited to, warranties or representations as to matters of title, zoning, tax consequences, physical or environmental conditions, availability of ingress or egress, operating history or projections, valuation, governmental approvals, governmental regulations, the value, condition, merchantability, marketability, profitability, suitability or fitness for a particular use or purpose of the Property, the manner or quality of construction or materials incorporated into any part of the Property, the manner, quality, state of repair or lack of repair of the Property or any other matter or thing relating to or affecting the Property. Except for the representations and warranties made in this Agreement, Purchaser has not relied upon, and will not rely upon, either directly or indirectly, any representation or warranty of Seller or any agent of Seller. Purchaser represents that Purchaser is riot a knowledgeable purchaser of real estate, that Purchaser has or shall, in all material respects, engage and consult with knowledgeable experts in connection with the review, negotiation of, and performance under, this Agreement and any and all other documents as may be entered into or furnished in connection herewith, and that, in connection with the foregoing, Purchaser hereby expressly waives, and releases Seller from and against, any and all claims, if an.v, of inadequate representation or disproportionate bargaining power, it being understood and agreed that Seller ,does not represent Purchaser with respect to the subject matter hereof or otherwise. In furtherance of the foregoing, in the case of any undertakings or other performance rights or obligations arising, or otherwise provided for in this Agreement, the following shall apply: (a) Purchaser hereby expressly represents and agrees that Purchaser shall separately engage and/or consult with such knowledgeable experts as Purchaser may require; and (b) with respect to each any every agreement or undertaking by Purchaser under and pursuant to this Agreement, Purchaser shall be deemed to have at all times so engaged, and consulted with, such experts. In furtherance of the foregoing, Purchaser will conduct such inspections and investigations of the Property as Purchaser deems necessary, including, but not limited to, the physical and environmental conditions of the Property, and shall rely upon the same. Upon Closing, Purchaser shall assume the risk that adverse matters, including, but not limited to, adverse physical and environmental conditions, may not have been revealed by Purchaser's inspections and investigations. Purchaser acknowledges and agrees that upon Closing, Seller shall sell and convey to Purchaser and Purchaser shall accept the Property AS IS, WHERE IS, AND WITH ALL FAULTS. Seller is not liable or bound in any manner by any oral or written statements, representations, or information pertaining to the Property furnished by any real estate broker, agent, employee, servant or other person, unless the same are specifically set forth or referred to herein. The terms and conditions of this Section shall expressly survive Closing or a termination of this Agreement, and shall not merge with the provisions of any Closing documents or the Deed (as hereinafter defined). 4. Due Diligence Period Purchaser shall have a "Due Diligence Period" commencing on the Effective Date and continuing for a period of ninety (90) consecutive days thereafter. During such Due Diligence Period, Purchaser shall satisfy itself as to the condition of, and matters relating to, the Property, including without limitation the following: a. Environmental Reports Seller shall provide, within thirty (30) consecutive days after the Effective Date, electronic or other copies of any environmental assessment reports, remediation reports, governmental statutory or regulatory filings and reports, and any other correspondence or other documentation, if any, in the Seller's possession regarding the environmental condition of the Property (collectively, the "Existing Environmental Reports "). Purchaser may obtain, at Purchaser's sole expense, one or more current environmental site assessment and such other reports regarding the Property (collectively, the "Purchaser's Environmental Reports "). The Existing Environmental Reports and Purchaser's Environmental Reports, if any, are collectively referred to hereinafter as the "Environmental Reports ". At Purchaser's sole cost and expense, and upon receipt by Purchaser, Purchaser shall furnish to Seller two (2) full and complete copies of all such Purchaser's Environmental Reports. b. Surveys, Inspection Re ports and Other Documents Seller shall provide, within thirty (30) consecutive days after the Effective Date, electronic or other copies of any existing surveys, inspection reports, contracts and other agreements affecting the Property and/or its improvements, if any, in the Seller's possession. C. Inspection During the Due Diligence Period, and at Purchaser's sole cost and expense, Purchaser shall have the right to undertake inspections, tests, and investigations of the Property, including without limitation investigations needed to determine costs of abatement of any hazardous materials, if any, located on or in the Property. Provided Purchaser gives Seller at least three (3) consecutive 3 business days advance notice, Seller shall provide Purchaser, and Purchaser's consultants, with access to the Property without charge and at all reasonable times during the Due Diligence Period for purposes of inspection, testing and approval of the Property, and completion of environmental, engineering, and such additional investigation and testing as is deemed desirable by Purchaser; rovided, however (i) all such rights of access shall be limited to such areas, dates and times as do not conflict with then existing scheduled rights of use previously granted by Seller to other users of the Property, (ii) the conduct and completion of all such tests and investigations shall occur without material interruption, interference or disturbance to, with, or of the then ongoing uses of the Property by Seller or any of Seller's tenants, guests, contractors or invitees, and shall be performed consistent with all applicable industry standards, including without limitation full and complete compliance with all applicable best practices to ensure the health and safety of all occupants of the Property. Upon completion of such tests and investigations, and except as otherwise provided below, all work areas shall be cleaned and otherwise rendered safe and secure from access by Seller's tenants, guests, contractors, invitees and other persons (collectively, "Property Occupants "), all interior and exterior penetrations caused or resulting from such tests and investigations shall be sealed to the extent reasonably necessary to ensure the health and safety of all Property Occupants, and all exterior penetrations shall be sealed in accordance with the requirements set forth in Section 4(d) below. The results of all such inspections, investigations and testings shall be disclosed by Purchaser to Seller in writing, and Purchaser shall promptly deliver to Seller, at no cost to Seller, two (2) full and complete sets of copies of any and all results and reports in connection therewith (all collectively referred to as "Purchaser's Due Diligence Reports ") (all of the Environmental Reports and Purchaser's Due Diligence Reports are hereby collectively referred to herein as "Property Reports "). d. In the event Closing (as hereinafter defined) does not occur for any reason, Purchaser covenants and agrees that Purchaser shall promptly, and at Purchaser's sole cost and expense, repair and restore any and all damage to the Property as may have been, or may be, caused, whether directly or indirectly, by Purchaser or any of Purchaser's employees or consultants (or any other persons or entities acting for, or on behalf of, Purchaser or any of Purchaser's employees or consultants), including without limitation any damage resulting from the conduct of Purchaser's due diligence and any other activities related thereto as herein authorized or otherwise provided for in this Agreement, together with such other damage to the Property as may be caused, directly or indirectly by Purchaser or any of Purchaser's employees, contractors or consultants (or any other persons or entities acting for, or on behalf of, Purchaser or any of Purchaser's employees, contractors or consultants), and shall restore the Property to the same or better condition as existed immediately prior to the occurrence of such inspections, testing, investigations or other damage; provided however and notwithstanding anything to the contrary in this Agreement, in the event of any damage comprising or including any exterior penetration of or to any building or roof structures, all such damage associated therewith, including without limitation 9 such penetrations, shall be promptly repaired and restored to a quality and condition comparable to, or better than, the condition thereof existing immediately prior to the occurrence of such damage. In the event, and upon the occurrence, of any such damage, Purchaser, or Purchaser's employees or consultants shall promptly notify Seller of the occurrence of such damage or exterior penetration, and shall take all reasonable remedial steps to protect the building located on the Real Property from further damage pending physical inspection thereof by Seller. Purchaser further hereby agrees to, and does, indemnify Seller, and Seller's successors and assigns, and holds Seller, and Seller's successors and assigns, harmless from and against (i) any and all expenses and damages, financial or otherwise, that Purchaser, or any consultant, inspector, engineer, investigator, or other person or entity acting for or on behalf of Purchaser, may cause, whether in whole or in part, and (ii) all cost or loss resulting, in whole or in part, from any failure by Purchaser to fully and completely perform its repair and restoration obligations hereinabove set forth. Notwithstanding anything to the contrary herein or otherwise, the Purchaser's indemnification and hold harmless obligations set forth in this Section 4(d) shall survive the Closing and any termination of this Agreement. 5. Miscellaneous Representations, Warranties Covenants and Agreements a. This Agreement is valid and binding upon Seller and Purchaser in accordance with its terms. b. Seller is the fee owner of the Property described in paragraph 1 of this Agreement. C. To the best of Seller's actual knowledge, and except as may be otherwise disclosed in any Property Reports, or otherwise discovered by Purchaser in connection with any inspection of the Property by Purchaser or otherwise, Seller has not received written notice from any state or local authority having jurisdiction over the Property with respect to, and otherwise has no actual knowledge of, any existing violations of any law, regulation, ordinance or code affecting the Property. d. To the best of Seller's actual knowledge, and except as may be otherwise disclosed in any Property Reports, or otherwise discovered by Purchaser in connection with a_ny inspection of the Property by Purchaser or otherwise, Seller has no actual knowledge as to whether any toxic or hazardous substances or wastes, pollutants or contaminants (including without limitation, urea formaldehyde, the group of organic compounds known as polychlorinated biphenyls, petroleum products including gasoline, fuel oil, crude oil, and various constituents of such products, or any hazardous substance as defined in the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ( "CERCLA "), 42 U.S.C. §9601- 9657, as amended) have been generated, treated, stored, released or disposed of, or otherwise placed, deposited in or 5 located on the Real Property or in the ground water thereunder, or if any activity has been undertaken on the Real Property that would cause or contribute to: i. The Real Property to become, or becoming, a treatment, storage or disposal facility within the meaning of, or otherwise bring the Property within the ambit of, the Resource Conservation and Recovery Act of 1976 ( "RCRA "), 42 U.S.0 §6901 et sue, or any similar state law or local ordinance. H. A release or threatened release of toxic or hazardous wastes or substances, pollutants or contaminants, from the Real Property within the meaning of, or otherwise bring the Real Property within the ambit of, CERCLA, or any similar state law or local ordinance. iii. The discharge of pollutants or effluents into any water source or system, the dredging or filling of any waters or the discharge into the air of any emissions, that would require a permit under the Federal Water Pollution Control Act, 33 U.S.C. §1251 et sue, or the Clean Air Act, 42 U.S.C. §7401 et sue, or any similar state law or local ordinance in, under or on the Property that may support a claim or cause of action under RCRA, CERCLA or any other federal, state or local environmental statutes, regulations, ordinances, or other environmental regulatory requirements. e. To the best of Seller's actual knowledge, and except as may be otherwise disclosed herein or in any Property Reports, or otherwise discovered by Purchaser in connection with any inspection of the Property by Purchaser or otherwise, Seller is not a party to any unrecorded contract or agreement affecting the Property that, subsequent to Closing, will be binding upon Purchaser or upon the Property without the Purchaser's written consent. Notwithstanding the foregoing, (i) Seller is party to each of a Right of Entry Agreement, dated November 4, 2011, and a Storm Sewer Easement Agreement, each by and between Seller and Intermediate District No. 287 ( "ISD 287 "), pursuant to which Seller granted to ISD 287 a storm sewer easement, all on such terms and conditions are set forth in that Storm Sewer Easement Agreement, dated January 23, 2012; and (ii) as of the date hereof, Seller has reason to believe that Centerpoint Energy has installed, or may in the future install, within the Winnetka Avenue right of way, a natural gas utility system. f. To the best of Seller's actual knowledge, and except as may be otherwise disclosed in any Property Reports, or otherwise discovered by Purchaser in connection with any inspection of the Property by Purchaser or otherwise, there are no existing claims, actions, suits or other proceedings pending, or to the knowledge of Seller, threatened by any governmental department or agency, or any other corporation, partnership, entity or person whomsoever, which in any manner or to any extent may have a material detrimental effect on the Property or Purchaser's right, title and interest in and to any part or all of the Property. ral g. Seller covenants and agrees that Seller shall not knowingly do or fail to do any act which would reasonably be expected to result in the creation of any lien, charge or encumbrance of any material nature whatsoever (other than liens, if any, of a monetary amount which can be released or discharged upon the payment of money at Closing) on the Property or otherwise affect the marketability of title or Seller's ability to convey such title and deliver possession of the Property. h. Seller authorizes (at Purchaser's sole cost and expense), Purchaser and Purchaser's qualified employees, agents and representatives, to conduct such investigations and examinations of the Property as it deems necessary or advisable, and Seller will cooperate fully in such investigation. Such investigation may include, but is not limited to, survey, architectural, structural, electrical, mechanical, soil and drainage, environmental and other investigations. All investigations conducted on the Property, unless otherwise agreed in writing by Seller and Purchaser, shall be performed only upon three (3) consecutive business days advance notice to Seller, and without material disruption of or to any then occurring activities or operations of Seller, or of any tenant or invitee of Seller. Copies of all written reports pertaining to such investigations (all such reports constituting "Property Reports ", as heretofore defined) shall be furnished by Purchaser to Seller for Seller's permanent retention and at Purchaser's sole cost and expense. Purchaser further hereby agrees to, and does, indemnify Seller, and Seller's successors and assigns, and holds Seller, and Seller's successors and assigns, harmless from and against (i) any and all expenses and damages that Purchaser, or any consultant, inspector, engineer, investigator, or other person or entity acting for or on behalf of Purchaser, may cause, whether in whole or in part, and (ii) all cost or loss resulting, - in whole or in part, from any failure by Purchaser to fully and completely perform its repair and restoration obligations hereinabove set forth. Notwithstanding anything to the contrary herein or otherwise, the Purchaser's indemnification and hold harmless obligations set forth in this Section 5(h) shall survive the Closing and any termination of this Agreement. i. From and after the date of this Agreement, Seller has not entered into any other contracts for the sale of the Property, nor are there any rights of first refusal, options to - purchase the Property, lease agreements, or any other rights of others (other than such leases or contracts as shall be terminable on or prior to Closing) that might prevent or delay performance of this Agreement. j. Until the Closing Date Seller shall use, operate and maintain the Property in the same general mariner in which the Property is currently used, operated and maintained; provide d , however and notwithstanding the foregoing, Purchaser and Seller agree that at the option of Seller, prior to Closing, and for an uninterrupted period of thirty (30) consecutive days from and after Closing, Seller may permanently detach, remove and retain from the Property any and all personal property, and such other fixtures and personal property as are expressly identified on Exhibit B attached hereto (collectively referred to herein as the "Excluded Property "). 7 k. Seller has no knowledge of any material defects in the roof, foundation, structural supporting members or exterior walls, or in the mechanical, electrical, heating, air conditioning, drainage, sewer, water or plumbing systems of the building constituting part of the Real Property; rop yided however and notwithstanding the foregoing, Seller hereby discloses that existing skylights located on the roof of the building comprising a portion of the Property may not be designed to comply with existing codes or regulations. 1. To the best of Seller's actual knowledge, and except as may be disclosed in Existing Property Reports or any other reports, if any, commissioned by Purchaser, or otherwise discovered by Purchaser in connection with any inspection of the Property by Purchaser, there are no septic systems abandoned or in operation located upon the Property of which Seller has knowledge. Seller affirmatively represents that there is an underground well on the Property. For purposes of this Agreement, the phrase "Seller's actual knowledge" shall mean the actual knowledge, as applicable, of Jeff Priess and/or Jim Gerber, the Executive Director of Business Services and Director of Facilities, respectively, of Seller. 6. Representations, Warranties and Covenants of Purchaser a. Purchaser acknowledges that, under the terms and conditions of this Agreement, the Purchaser is granted the full opportunity to inspect the Property and surrounding area and records applicable to its operation and condition. Purchaser acknowledges that it will be relying solely upon its own inspection and judgment and, except as otherwise expressly provided in this Agreement, will not be relying upon any representation of Seller. b. The execution and delivery of this Agreement by Purchaser, and compliance by Purchaser with the terms and provisions of this Agreement, will not conflict with or result in a breach of any judgment, order, decree or ruling to which Purchaser is a party, any injunction of any Court or governmental authority to which Purchaser is subject, or any agreement, contract or commitment which is material to the financial condition of Purchaser; or require the affirmative consent or approval of any third party. C. Subject to formal approval by Resolution duly adopted by the Economic Development Authority of the City of New Hope, this Agreement is valid and binding upon Purchaser in accordance with its terms and the individual executing this Agreement on behalf of the Purchaser has, subject to such Resolution, the authority and power to enter into this Agreement and to consummate the transaction contemplated hereby. 7. Conditions to Purchaser's Obligations In the event the conditions set forth in this paragraph 7 have not been met to the Purchaser's sole satisfaction on or before the date specified, or if no date is specified, then on or before the Closing Date, this Agreement shall terminate at the option of the Purchaser and the Earnest Money paid by Purchaser shall be refunded. a. No later than thirty (30) consecutive days from and after the date of execution of this Agreement by both Seller and Purchaser, Seller shall provide to Purchaser a commitment from a Title Insurance Company selected by Purchaser ( "Title ") for an ALTA Owner's Policy of Title Insurance insuring title to the Property in the amount of the Purchase Price (the "Commitment "). The Commitment will commit to insure title to Purchaser's interest in the Property subject only to the Permitted Encumbrances. The Commitment shall be effective as of a date no earlier than the effective date of this Agreement and shall include a copy of each instrument listed as an exception to title or referred to therein. Purchaser shall be allowed ten (10) consecutive business days to make any objections thereto including objection to the Permitted Encumbrances, as hereafter defined, said objections to be made in writing or deemed to have been waived. If any objections to title are made, Seller shall be allowed sixty (60) consecutive days in which to make title marketable. Pending correction of title, Closing shall be postponed, but upon correction of title or waiver of the specified defects by Purchaser, the Ciosing shall be held on such date as shall be mutually designated in writing by Seller and Purchaser; provided howeve in the absence of such mutual designation, Closing shall be held on the later of the Closing Date or ten (10) consecutive business days after the title objections are cured or waived. If title is not made marketable or the objections thereto are not waived within sixty (60) consecutive days after the date on which Purchaser gives written objection to title as provided above, then Purchaser may at its option terminate this Agreement, in which event all Earnest Money shall be reimbursed to Purchaser and neither party shall have any further obligations hereunder. The following shall be deemed Permitted Encumbrances: i. Reservation of minerals or mineral rights by the State of Minnesota; H. Building, zoning and subdivision laws and regulations consistent with the current utilization of the Property; W. Exceptions to title which are not found objectionable after title examination; iv. Exceptions to title which constitute encumbrances, restrictions or easements which have been disclosed to Purchaser and accepted by Purchaser in writing; V. Exceptions or easements which constitute encumbrances, restrictions or easements which will be removed at or prior to Closing; Vi. Matters raised in the Commitment to which Purchaser has not made timely objection. I b. Purchaser obtaining affirmation and approval and authorizing Resolution from the Economic Development Authority for the City of New Hope authorizing the purchase on the terms and conditions set forth herein on or before the Closing Date. C. Purchaser conducting and completing such investigations and examinations of the Property as it deems necessary or advisable in its sole discretion. d. Purchaser determining to its sole satisfaction, or waiving, on or before the Closing Date, that the physical condition of the Property and its improvements are acceptable to Purchaser in its sole discretion. e. That Seller shall have fully kept, performed and observed each and every agreement and obligation on its part to be kept, performed and observed hereunder and all of Seller's representations and warranties shall be true and correct in all respects, as remade, on the Closing Date. Unless Purchaser has timely raised a contingency specified above on or before the date specified, the contingencies shall at 5:00 p.m. local time on the day specified be deemed fulfilled. 8. Conditions to Seller's Obligations The obligations of the Seller to proceed on the Closing Date shall be subject (at its discretion) to the satisfaction on or before the Closing Date of the following conditions. a. The representations of Purchaser herein contained shall be true in all material respects on the Closing Date with the same effect as though made as such time; b. Purchaser shall have fully complied with all of the terms and conditions of this Agreement in all material respects; C. Purchaser shall have provided evidence, reasonably acceptable to Seller and Title, that approval has been given by the Economic Development Authority of New Hope; d. Seller shall have received its formal Board approval, in form and substance as shall be approved by Title, granting authority to consummate this transaction, on or before the "Closing Date ", as hereinafter defined. 9. Closing and Possession. a. The consummation of the purchase and sale contemplated hereby (the "Closing ") shall be held on or before May 15, 2013 (the "Closing Date "). Closing shall occur in the office of Jensen Sondrall & Persellin, P.A., 8525 Edinbrook Crossing, Suite 201, Brooklyn Park, Minnesota. b. Possession of the Property shall be delivered to the Purchaser on the Closing Date free of any outstanding rights of possession. 10 C. At the Closing: i. Subject to Purchaser's performance, Seller shall: 1. Deliver to Purchaser a general Warranty Deed, subject to such restrictive covenants limiting Purchaser's rights with respect to use of the Property, all in the form attached hereto as Exhibit C fully executed and acknowledged in recordable form, conveying to Purchaser good, indefeasible and marketable fee title pursuant to the provisions of this Agreement subject only to the Permitted Encumbrances. 2.. Deliver an Affidavit by Seller indicating that on the Closing Date there are no outstanding, unsatisfied judgments, tax liens or bankruptcies against or involving Seller or the Property; that there has been no skill, labor or material furnished to the Real Property for which payment has not been made or for which mechanic's liens could be filed; and that there are no other unrecorded interests in the Property, together with whatever standard owner's affidavit and/or indemnity (ALTA Form) which may be required to issue an Owner's Policy of Title Insurance with the standard exceptions waived. 3. Provide an appropriate federal income tax reporting form, if any is required. 4. Execute all other documents .reasonably necessary to perform this Agreement and to transfer the Property to Purchaser. 5. Pay the state deed tax due for conveyance of the Property. 6. Pay the cost of recording all documents necessary to place record title of the Property in the condition warranted and required of Seller by this Agreement. 7. Execute and deliver a Well Certificate for wells, if any, located upon the Real Property. S. Provide a certified copy of a Resolution of the Seller's Board authorizing the sale and containing the legal description of the Real Property. H. Subject to Seller's performance, Purchaser shall: 1. Deliver to Seller by wire transfer the balance of the Purchase Price, less any adjustments expressly authorized in accordance with this Agreement. 11 2. Accept delivery of possession to the Property. d. Proration of all operating expense relating to the Property shall be made as of the Closing Date, with Seller responsible for the expenses applicable to the period prior to the Closing Date and Purchaser shall be responsible for the expenses on and after the Closing Date. e. If on the Closing Date any of the amounts to be apportioned under subparagraph d. above cannot be calculated with complete precision because the amount or amounts of one or more items included in such calculation are not then known, such calculation shall be made on the basis of reasonable estimates of Seller and Purchaser of the amount or amounts of the item or items in question, subject to adjustments (by additional payments by Purchaser to Seller or by refunds from Seller to Purchaser) when the amount or amounts of such item or items become known. Promptly after the amount of any such item becomes known to either party, such party shall notify the other thereof and shall include in such notice the amount of any required adjustment. If such adjustment requires an additional payment by Purchaser to Seller, Purchaser shall make such payment to Seller simultaneously with its giving of, or within twenty (20) consecutive days after its receipt of, such notice, as the case may be. If such adjustment requires a refund by Seller to Purchaser, Seller shall make such refund simultaneously with its giving of or within twenty (20) consecutive days after its receipt of such notice, as the case may be. 10. Real Estate Taxes and Special Assessments Seller represents that the Property is exempt from ad valorem real estate taxes. Special assessments, if any, levied, pending, approved or deferred against the Property as of the Closing Date shall be paid by Seller. 11. Indemnification. a. Seller shall indemnify and hold Purchaser harmless from and against any and all claims, obligations and liability arising out of Seiler's ownership, operation or maintenance of the Property for any portion for Seller's period of ownership thereof. b. Purchaser shall indemnify and hold Seller harmless from and against any and all claims, obligations and liability arising out of Purchaser's ownership, operation or maintenance of the Property for any portion for Purchaser's period of ownership thereof. 12. Real Estate Taxes and Special Assessments Seller represents that the Property is exempt from ad valorem real estate taxes. Special assessments, if any, levied, pending, approved or deferred against the Property as of the Closing Date shall be paid by Seller. 13. Default, Termination and Remedies a. If Purchaser defaults under this Agreement, Seller shall have the right to terminate this Agreement by giving written notice of such election to Purchaser, which 12 notice shall specify the default. If Purchaser fails to cure such default within ten (10) consecutive days of the date of such notice, Seller may at its option either (i) terminate this Agreement and retain all Earnest Money paid by Purchaser, or (ii) seek specific performance by Purchaser of Purchaser's obligations under this Agreement. The termination of this Agreement and retention of the Earnest Money, or specific performance of this Agreement, shall be the sole remedies available to Seller for such default by Purchaser. b. If Seller defaults under this Agreement, Purchaser's sole and exclusive remedy shall be to (i) terminate this Agreement and receive a refund of the Earnest Money deposit and any interest accrued thereon, or (ii) pursue an action against Seller for specific performance of this Agreement, provided that such action is commenced within six (6) months of the date of Seller's default. The above remedies shall be Purchaser's sole and exclusive remedies on account of Seller's default. Provided, however, that in the case of a default by Seller under this Agreement, and in lieu of general damages, Purchaser may recover Purchaser's actual out -of- pocket costs and expenses incurred in preparing and negotiating this Agreement. 14. Brokerage a. Seller shall indemnify and hold harmless Purchaser against and in respect of all claims, losses, liabilities and expenses (including, but not limited to, attorneys' fees and court costs) which Purchaser may incur on account of any claim which may be asserted against Purchaser, whether or not meritorious, by any broker or any other person on the basis of any agreements made or alleged to have been made by or on behalf of Seller. b. Purchaser shall indemnify and hold harmless Seller against and in respect of all claims, losses, liabilities and expenses (including, but not limited to, attorneys' fees and court costs) which Seller may incur on account of any claim which may be asserted against Seller, whether or not meritorious, by any broker or other person on the basis of any agreements made or alleged to have been made by or on behalf of Purchaser. 15. Notice Any notice, request or other communication required or provided to be given under this Agreement shall be in writing and shall be sufficiently given and shall be deemed given when delivered personally or when mailed by certified or registered mail, return receipt requested, postage prepaid, addressed: 13 To Seller: Robbinsdale School District No. 281 4148 Winnetka Avenue N New Hope, MN 55427 Attn: Mr. Jeff Priess Fax: 763-504-8971 Email: Jeff Priess @rdale.org With a copy to Jeffrey D. Carpenter, Esq. Henson & Efron, P.A. 220 South 6th Street, Suite 1800 Minneapolis, MN 55402 Fax: (612) 339-6364 Email: jarpenter@hensonefron.com To Purchaser New Hope Economic Development Authority Attn: Curtis Jacobsen 4401 Xylon Avenue North New Hope, MN 55428 (763) 531 -5119 With a copy to Jensen Sondrall & Persellin, P.A. Attn: Gordon Jensen 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 5._5443 (763) 201 -0210 Fax: (763) 493 -5193 E -mail: glj@jspattomeys.com or to such other party or other address as a party, by notice given as herein provided, shall designate, provided that no party may require notice to be sent to more than two addresses. Any notice given in any other manner (e.g. fax or e- mail) shall be effective only upon receipt by the addressee. 16. Insurance. a. Seller shall, during the term of this Agreement, maintain the fire and hazard insurance presently carried by Seller on the Property. At the Closing of the purchase and sale hereunder, Seller shall deliver the Property to Purchaser in the 14 same condition as exits as of the date hereof, normal wear and tear excepted. In the event the improvements on the Real Property or a portion thereof, are destroyed or damaged by fire or other casualty, such damage or destruction being in excess of $50,000.00 prior to the Closing hereunder, then, at the option of Purchaser (which option must be exercised within five consecutive days of receipt by Purchaser of notice from Seller of such fire or other casualty): i. This Agreement shall be null and void in which case Earnest Money shall be returned to the Purchaser and neither party shall have any further rights, duties or liabilities hereunder, or H. This Agreement shall remain in full force and effect, and Seller, at the time of Closing hereunder, and in exchange for payment by Purchaser of the Purchase Price (subject to such adjustments thereto as are expressly provided for in this Agreement), shall transfer and assign to Purchaser all of Seller's rights, title and interest in and to the insurance proceeds received or to be received by reason of such damage or destruction and shall tender at Closing the deductible portion of any such loss pursuant to the terms of Seller's insurance policy. b. In the event the Improvements, or a portion thereof, are destroyed or damaged by fire or other casualty, such damage or destruction being $50,000.00 or less and if: L The insurance carrier affirms and acknowledges its liability; H. The insurance proceeds are sufficient (when added to the deductible amount under such policy) to pay the full cost of repairing such damage or destruction; and W. Seller tenders at Closing the full amount of the deductible portion of such insurance loss, then this Agreement shall not be terminated, and at Closing, Seller shall assign and transfer to Purchaser all such insurance proceeds and deductible amount. 17. Miscellaneous a. All the terms of this Agreement shall be binding upon, inure to the benefit of, and be enforceable by, the respective heirs, legal representatives, successors and assigns of Seller and Purchaser. Purchaser may not assign its interest in this Agreement without the advance written approval of Seiler, which approval may be granted or withheld in Seller's sole and absolute discretion. In the event of any approval by Seller of an assignment of Purchaser's interest in this Agreement, and subject to the terms of such approval so granted, the individually named Purchaser, if so permitted by Seller, may allocate the percentage interest of the respective individuals in such manner as they may deem appropriate. 15 b. This Agreement contains the entire agreement between the parties. Terms hereof cannot be waived except by the written agreement of the parties. C. The captions used in connection with the sections of this Agreement are for convenience only and shall not be deemed to construe or to limit the meaning of the language of this Agreement. d. This Agreement may be amended only by a written instrument executed by Seller and Purchaser. e. All references in this Purchase Agreement to "Agreement" shall refer to this Purchase Agreement, including all exhibits and attachments hereto as the same may be amended and modified by written agreement of the parties from time to time. f. This Agreement may be executed in any number of counterparts and/or by facsimile signature, each of which shall be an original, but such counterparts together shall constitute one and the same instrument. g. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. h. It is expressly understood and agreed that Purchaser and Seller shall each be entirely responsible for the payment of any attorneys' fees incurred by each party relating to the legal services furnished to such party in connection with the transactions contemplated herein. L One or more waivers of any covenant, term or condition of this Agreement by either party shall not be construed as a waiver of a subsequent breach of the same covenant, term or condition. The consent or approval of either party to or of any act by the other party of a nature requesting consent or approval shall not be deemed to waive or render unnecessary consent to or approval of any subsequent similar act. The failure or delay on the part of either party to enforce or exercise at any time any of the provisions, rights or remedies in this Agreement shall in no way be construed to be a waiver thereof or of the right to thereafter enforce each and every provision, right or remedy. j. If any part of this Agreement or any part or any provision herein shall be adjudicated to be void or invalid, then the remaining provisions hereof, not specifically so adjudicated to be invalid, shall be executed without reference to the part of portions so adjudicated, insofar as such remaining provisions are capable of execution. k. Time is of the essence as respects all terms and conditions of this Agreement. [The balance of this page has been intentionally left blank.] 10 Signature Page PURCHASER: SELLER: Economic Development Authority in and Independent School District No. 281, a for the City of New Hope, a public body public body corporate and a political corporate and a political subdivision of the subdivision of the State of Minnesota State of Minnesota in Its: an go Its: IN Its: Its: 17 � Tax Records 1See Attached] Page 1 of 2 Note: Taxes Payable 2013 (2012 Values) will be available on this web site approximately 03101 Parcel Data for Taxes Pa yable 2012 Property ID: 06- 118 -21 -44 -0054 Address: 86 ADDRESS UNASSIGNED Municipality: NEW HOPE School Dist: 281 Construction year: Watershed: 8 Approx. Parcel Size: E 115X166 Sewer Dist: 02 Owner Name: SCHOOL DIST NO 281 Taxpayer Name ROBBINSDALE SCH DIST NO 281 & Address: 4148 WINNETKA AVE N NEW HOPE MN 55427 _ Sale Information Sales prices are reported as listed on the Certificate of Real Estate Value and are not warranted to represent arms - length transactions. Sale Date: October, 2004 Sale Price: $114,564 Transaction Type: Vacant Land Tax Parcel Description The following is the County Auditor's description of this tax parcel. It may not be the legal description on the most recent conveyance document recording ownership. Please refer to the legal description of this property on the public record when preparing legal documents for recording Addition Name: CVS WINNETKA ADDITION Lot: Block: First Line Metes & Bounds: OUTDOT A Full Metes & Bounds: Note: To read full tax parcel description, dick here. Abstract or Torrens: ABSTRACT Value and Tax Summary for Taxes Payable 2012 Values Establ by Assessor as of _J anuary 2, 2011 Estimated Market Value: V " Taxable Market Value: Total Improvement Amount: Total Net Tax: Total Special Assessments: Solid Waste Fee: Total Tax: Property Information Detail for Taxes Payable 2012 Values Established by As sessor as Of Ja nuar y 2, 2011 Values: Land Market Building Market Machinery Market Total Market. Qualifying Improvements htfn'/ /"na7Iz1 1 r, rn hPnnPnin mn tie ;o,-.'J, 4 =t K1 1 471 A At) f) 1 /11 /1n11) Page 2 of 2 Veterans Exclusion Homestead Market Value Exclusion Classifications: Property Type Homestead Status Relative Homestead Agricultural Exempt Status COMMERCIAL PREFERRED NON - HOMESTEAD EXEMPT httn• / /wwwl 6 ro hPnnPnin mn rrc / nine /r�r;nt lata;Ic! I r�;r7�f1K7 1 Q )l A A()()< 1 1 X11 inns Page 1 of 1 Ma x : :: Search Ma Advanced Search Find a PID or an address on the map Welcome -- Results Parcet Links d Tax Information Neighbcrhood AM LU View oblique imaaery f8ina maps? Survey Documents _.. _ .._.. iei.Street : T PiD: 0611821440034 86 Address Unassigned City New Hope, MN 00000 , Owner/Taxpayer U - wounty i _., Owner: School Dist No 281 ROBBINSDALE SCH _ DiS? NO 281 Taxpayer. 4148 WINNETKA AVE N NEW HOPE MN P _ 55427 Vie-:: ?ax District - - School Dist: 281 Sewer 02' Dist: Watershed} Dist: _ .__.. Parcel Parcel ! 0.44 acres � r :._.. _ A rea: 19,494 sq ft L -- _ _45- Torrens /Abstract: Abstract - - Addition: Cvs Winnetka Addn - 55 Ft AVE �3 - 5:57H fSI E: httD:/ /f4is. /nronerly /Matz /de anlf- »cnx ?ni(i =061 1 R) 1 4400l 4 Page 1 of 2 Owner Name: Taxpayer Name & Address: SCHOOL DIST NO 281 ROBBINSDALE SCH DIST NO 281 4148 WINNETKA AVE N NEW HOPE MN 55427 Sale Information Sales prices are reported as listed on the Certificate of Real Estate Value and are not warranted to represent arms - length transactions, NO SALE INFORMATION ON FILE FOR THIS PROPERTY. Tax Parcel Description The following is the County Auditor's description of this tax parcel. It may not be the legal _ description on the most recent conveyance document recording ownership. Please refer to the legal description of this property on the public record when preparing legal documents for recording Addition Name: UNPLATTED 06 118 21 Lot: Block: First Line Metes & Bounds: W 288.6 FT OF E 494.6 FT OF N 1/2 OF Full Metes & Bounds: Note To read full tax parcel description, click here. Abstract or Torrens: ABSTRACT' Value and Tax Summary for Taxes Payable 2012 Values Established by Assessor as of January 2, 2011 Estimated Market value: -- Taxable Market Value: Total Improvement Amount: Total Net Tax: Total Special Assessments: Solid Waste Fee: Total Tax: Property Information Detail for Taxes Payable 2012 _ Values Established by Ass as of January 2, 2011 Values: Land Market Building Market Machinery Market Total Market: Qualifying Improvements Veterans Exclusion Homestead Market Value Exclusion hfi - /lunxnu1 6 rn hPnnan ;n mn I 1 Q) I A W)IZG' 1 !11 In A I ') Note: Taxes Payable 2013 (2012 Values) will be available on this web site approximately 03101 Parcel Data for Taxes Payable 2012 Property ID: 06- 118 -21 -44 -0055 Address: 7940 55TH AVE N Municipality: NEW HOPE School Dist: 281 Construction year: Watershed: 8 Approx. Parcel Size: IRREGULAR Sewer Dist: 02 Owner Name: Taxpayer Name & Address: SCHOOL DIST NO 281 ROBBINSDALE SCH DIST NO 281 4148 WINNETKA AVE N NEW HOPE MN 55427 Sale Information Sales prices are reported as listed on the Certificate of Real Estate Value and are not warranted to represent arms - length transactions, NO SALE INFORMATION ON FILE FOR THIS PROPERTY. Tax Parcel Description The following is the County Auditor's description of this tax parcel. It may not be the legal _ description on the most recent conveyance document recording ownership. Please refer to the legal description of this property on the public record when preparing legal documents for recording Addition Name: UNPLATTED 06 118 21 Lot: Block: First Line Metes & Bounds: W 288.6 FT OF E 494.6 FT OF N 1/2 OF Full Metes & Bounds: Note To read full tax parcel description, click here. Abstract or Torrens: ABSTRACT' Value and Tax Summary for Taxes Payable 2012 Values Established by Assessor as of January 2, 2011 Estimated Market value: -- Taxable Market Value: Total Improvement Amount: Total Net Tax: Total Special Assessments: Solid Waste Fee: Total Tax: Property Information Detail for Taxes Payable 2012 _ Values Established by Ass as of January 2, 2011 Values: Land Market Building Market Machinery Market Total Market: Qualifying Improvements Veterans Exclusion Homestead Market Value Exclusion hfi - /lunxnu1 6 rn hPnnan ;n mn I 1 Q) I A W)IZG' 1 !11 In A I ') Page 2 of 2 Property Type Homestead Status Relative Homestead Agricultural Exempt Status Classifications: COMMERCIAL PREFERRED NON- HOMESTEAD 1ittn• / /xxrxxrxxr1 A nn Bann "in 7 —(1,<1 1 Q71 AAAf1CC 1 t 1 ) 7 PIA 117 Page 1 of 1 ?5 Find a PID or an address on the neap W elcome Resultsr _..._....... Parce! . Links Tax Information �. Neighborhoa 1� Search Map Advanced Search h _ View oblique imagery (Bing maps) o_ . _ .I_s .� Survey Documents Pi®: 0611821440055 7940 55th Ave N New Flope, MN 55428 Ownertraxpayer Owner: School Dist No 281 ROBBINSDALE SCH DIST NO 281 Taxpayer: 14148 WINNEfKA AVE N NEW HOPE MN 55427 Tax District School Dist: 281 Sewer Dist: 02 Watershed 8 Dist: Parcel ... i Parcel 5.25 acres - Area: 228,639 sq ft Torrens /Abstract: Abstract Addition: Un latted 06 118 21 114 Avt k ... hf.'iY) /i¢i.q.rn.hPnne.nin mn , �e /nrt�r /ma » /rl�fa ae »v % »;ri�l1F,'. 15271M.r)n z Page 1 of 2 Note: Taxes Payable 2013 (2012 Values) will be available on this web site approximately 03101 Parce Data for Taxes Payable 2012 Property ID. 06- 118 -21 -44 -0056 Address: 8000 55TH AVE N Municipality: NEW HOPE School Dist: 281 Construction year: Watershed: 8 Approx. Parcel Size: IRREGULAR Sewer Dist: 02 Owner Name: INDEPENDENT SCHOOL DIST 281 Taxpayer Name ROBBINSDALE SCH DIST NO 281 & Address: 4148 WINNETKA AVE N NEW HOPE MN 55427 Sale Information Sales prices are reported as listed on the Certificate of Real Estate Value and are not warranted to represent arms - length transactions. NO SALE INFORMATION ON FILE FOR THIS PROPERTY. Tax Parcel Description The following is the County Auditor's description of this tax parcel. It may not be the legal description on the most recent conveyance document recording ownership. Please refer to the legal description of this property on the public record when preparing legal documents for recording Addition Name: UNPLATTED 06 118 21 Lot: Black: First Line Metes & Bounds: THAT PART' OF THE NOP.TH HALF OF THE Full Metes & Bounds: Note: To read full tax parcel description, click here. Abstract or Torrens: ABSTRACT Value and Tax Summary for Taxes Payable 2012 Values Es by Assessor as of January 2, 2011 Estimated Market Value: Taxable Market Value: Total Improvement Amount: Total Net Tax: Total Special Assessments: $6,664.60 Solid Waste Fee: Total Tax: $6,664.60 Property Information Detail for Taxes Payable 2012 Values Established b y Assessor as of January 2, 2011 Values: Land Market Building Market Machinery Market Total Market: Qualifying Improvements Veterans Exclusion Homestead Market Value Exclusion 1-httn• /Aanx ,Nu1 6 on hannar ir, mr, „o /r,;v,nJr,r;n+ ry +n;ln , _ A —A41 1 Q11 AAW)<4 i h1 l n, Page 2 of 2 Property Type Homestead Status Relative Homestead Agricultural Exempt Status Classifications: LAND COMMERCIAL PREFERRED NON - HOMESTEAD EXEMPT ht +n• / / cznXTNV1 F: mr, iie /,,;r o /r,rir, +Iq +,;lr ;9_,A —(),<1 1 471 AA(1t)G,< 1 M7 innl,) Page 1 of 1 Search Map Advanced Search Find a PID or an address on the map Results r 21 ... .. ....... . . ... . . .. ...._. . .......... . Links e - �t Tax Information ! - Neighb &hood �T View oblique imagery (Bind maps) • ___:�� _.° Survey Documents _... _ Street _. PID; 0611821440056 8000 55th Ave N _ city New Hope, MN 55428 � II a -Count a 'rt.. tea-r Owner/Taxpayer U' . .. y i01f ; Owner Independent School _. Dist 281 ' ROBBINSDALE SCH i DIST NO 281 �; 5fiTH AVE N _ 4148 WINNETKA Eta RD E Taxpayer: AVE NN7 _.. ... NEW HOPE MN - -, .. _.. _ '55427 ... ; .. Tax District, School Dist: '281 z . Sewer Dist: 02 .._..__ _..... ., a S,STH AVE N Watershed en Dist: 8 Parcel Parcel 11.25 acres 1.1 Area: 490 ,078 s €t O: � Torrens /Abstract: Abstract E: - Addition: Unpiatted 06 i 18 21 ... h tt): Hizis .co.hennenin.tnn.iiq!nrone.rty /man /rlPfn,,Tt acnx`lnirj =nr%1 1 R71 ddnll�iti 1 �7 y i�nt ? Int+efact _. ull:. Removable Fiztures and Personal Property fSee Attachedl 1 Deed 1See Attached) WARRANTY DEED STATE DEED TAX DUE HEREON: $5,950.00 Date: 20� FOR VALUABLE CONSIDERATION, INDEPENDENT SCHOOL DISTRICT NO. 281, a public body corporate and politic under the laws of the State of Minnesota, Grantor, hereby conveys and warrants to ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL, a public body corporate and politic under the laws of the State of Minnesota, O.•antee, together with its successors and assigns, real property located in Hennepin County, Minnesota, described as follows: Lot 7 and the West 270 Feet of Lot 8, excluding road right ways, Schaefers Lake Side Grove, according to the recorded plat thereof, Hennepin County, Minnesota, and Outlot I, Mork Campion 4th Addition, according to the recorded plat thereof, Hennepin County, Minnesota. together with all hereditaments and appurtenances belonging thereto (collectively, the "Property "). THE SELLER CERTIFIES THAT THE SELLER DOES NOT KNOW OF ANY 'WELLS ON THE DESCRIBED REAL PROPERTY. Grantee hereby covenants and warrants for Grantee and Grantee's successors and assigns, and for the benefit of Grantor and Grantor's successors and assigns, that, except as, and until, otherwise agreed in a writing duly executed by and between Grantee and Grantor, or their respective successors and assigns, and duly recorded against the Property with the County Recorder in and for the County of Hennepin, State of Minnesota, Grantee shall not use, or permit the use of, the Property, in whole or in part, whether as a single campus or location or together with one or more other campuses or locations, and whether individually or in concert or affiliation with one or more other persons or entities, for any educational purpose, program, service or other educational use that includes, in whole or in part, any or all academic grade levels from and including kindergarten through and including twelfth grade; provided however and notwithstanding the foregoing, the following shall apply: (a) Grantee may use, or permit the use of, all or a portion of the Property for the provision of either or both (i) pre - kindergarten child care services and (ii) academic tutoring services; and (b) Grantee may use, or permit the use of, any athletic or recreational fields comprising all or any portion of the Property for any athletic or recreational purpose. All of the foregoing covenants and restrictions shall run with the land, and shall be binding upon Grantee and Grantee's heirs, devisees, personal representatives, successors and assigns. AFFIX DEED TAX STAMP HERE: �1�7s�►Y - 1�1 INDEPENDENT SCHOOL DISTRICT NO. 281 By Its PA ACKNOWLEDGMENTS STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of , 20 — , by the and by the _ of Independent School District No. 281, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the corporation. (Notarial Seal) Notary Public THIS INSTRUMENT WAS DRAFTED BY (NAME AND ADDRESS) Henson & Efron, P.A. 220 South Sixth Street Suite 1800 Minneapolis, Minnesota 55402 -4503 Tax Statements for the real property described in this instrument should be sent to (Include name and address of Grantee): ESCROW AGREEMENT This ESCROW AGREEMENT is dated as of the day of February, 2013, by and among INDEPENDENT SCHOOL DISTRICT NO. 281, a public body corporate and a political subdivision of the State of Minnesota ( "Seller "), ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, a public body corporate and a political subdivision of the State of Minnesota ('Buyer "), and FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation (the "Escrow Agent "). RECITALS WHEREAS, Seller is the fee simple owner of tracts or parcels of land situated in Hennepin County, Minnesota, and collectively comprising approximately 16.94 acres, all as more particularly described on Exhibit A attached hereto (the "Property "); WHEREAS, Seller and Buyer have entered into a Purchase Agreement dated (the "Purchase Agreement "), under which the Buyer has agreed, subject to the terms and conditions stated therein, to purchase the Property; WHEREAS, Seller and Buyer want to provide that the "Earnest Money" (as that term is defined in the Purchase Agreement) payable under the Purchase Agreement be deposited in escrow with the Escrow Agent in order to facilitate implementation of the terms and provisions of the Purchase Agreement as such terms and provisions govern the receipt, retention, administration, and delivery of the Earnest Money thereunder. Accordingly, the parties hereto agree as follows: 1. APPOINTMENT OF ESCROW AGENT. Seller and Buyer hereby irrevocably appoint the Escrow Agent, as escrow agent, to receive, hold, administer, and deliver the Escrowed Funds (as defined below) in accordance with this Escrow Agreement, and Escrow Agent hereby accepts its appointment, all subject to and upon the terms and conditions set forth herein. 2. DEPOSIT OF ESCROWED FUNDS AND CREATION OF ESCROW. 2.1 Simultaneously with the execution of this Agreement, Buyer has delivered to Escrow Agent the sum of Ten Thousand and No /100ths Dollars ($10,000.00) representing the Earnest Money called for under the Purchase Agreement (the "Escrowed Funds "). 2.2 Escrow Agent shall deposit the Escrowed Funds into an interest bearing trust account pursuant to investment instructions to be mutually agreed upon by the parties. In the absence of any such mutual investment instructions, or until such time as such investment instructions are agreed upon, Escrow Agent shall invest the Escrowed Funds in interest bearing -I - accounts through such financial institution as may be reasonably acceptable to Buyer and Seller. Escrow Agent agrees to hold the Escrowed Funds in accordance with the terms of this Agreement. 3. ADMINISTRATION OF ESCROW, Escrow Agent shall hold the Escrowed Funds until the earlier of (a) the date Buyer successfully closes its acquisition of the Property as contemplated by the Purchase Agreement; (b) the termination of the Purchase Agreement as evidenced by a notice to the Escrow Agent signed by both parties or their attorneys (the "Termination Agreement "); provided, however if (i) for any reason the closing does not occur, (ii) no Termination Agreement is received by Escrow Agent and (iii) either party makes a written demand upon Escrow Agent for payment of all or any portion of the Escrowed Funds, Escrow Agent shall give written notice to the other party of such demand. If Escrow Agent does not receive a written objection from the other party to the proposed payment within ten (10) business days after the giving of such notice, Escrow Agent is hereby authorized to make such payment in accordance with such demand. If Escrow Agent does receive such written objection within such ten (10) business day period, or if for any other reason Escrow Agent in good faith shall elect not to make such payment, Escrow Agent shall continue to hold such amount until otherwise directed by written instructions from the parties to this Escrow Agreement or a final judgment of a court, or Escrow Agent can remit the Escrowed Funds as otherwise provided in Section 5 of this Escrow Agreement; or (c) the termination of the Purchase Agreement following a default by Buyer, carried out in accordance with the requirements of applicable law. 4. NOTICES. Any notice required to be given to Seller, Buyer or Escrow Agent pursuant to this Agreement shall be in writing and shall be deemed duly given: (i) on the date of personal delivery; (ii) one business day following dispatch by Federal Express or equivalent or (iii) three (3) business days after mailing certified or registered mail, postage prepaid, return receipt requested, to respective addresses of the parties set out below: If to Seller: Robbinsdale Area Schools 4148 Winnetka Avenue N. New Hope, MN 55427 Attn: Mr. Jeff Preiss With copy to: Jeffrey D. Carpenter, Esq. Henson & Efron, P.A. 220 South 6th Street Minneapolis, MN 55402 -2- If to Buyer: New Hope Economic Development Authority 4401 Xylon Avenue North New Hope, MN .55428 Attn: Curtis Jacobsen With copy to: Jensen Sondrall & Persellin, P.A. Attn: Gordon Jensen 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 If to Escrow Agent: First American Title Insurance Company 1900 Midwest Plaza West 801 Nicollet Mall Minneapolis, Minnesota 55402 -2504 Attn: Any party, by notice given as aforesaid, may change the address to which subsequent notices are to be sent to such party. 5. LIMITED DUTIES OF ESCROW AGENT. The sole duties of Escrow Agent shall be those described herein, and Escrow Agent shall be under no obligation to determine whether the other parties hereto are complying with the requirements of law or the terms and conditions of any other agreements among said parties. Escrow Agent may conclusively rely upon and shall be protected in acting upon any notice, consent, order or other document believed by it to be genuine and to have been signed or presented by the proper party or parties, consistent with reasonable due diligence on Escrow Agent's part. Escrow Agent may consult the advice of counsel with respect to any issue concerning the interpretation of its duties hereunder. Buyer and Seller hereby acknowledge such fact and indemnify and hold harmless Escrow Agent from any action taken by it in good faith in reliance thereon. Escrow Agent shall have no duty or liability to verify any such notice, consent, order or other document, and its sole responsibility shall be to act as expressly set forth in this Agreement. Escrow Agent shall be under no obligation to institute or defend any action, suit or proceeding in connection with this Agreement. If any dispute arises with respect to the disbursement of any monies, Escrow Agent may continue to hold the same or commence an action in interpleader and in connection therewith remit the same to a court of competent jurisdiction pending resolution of such dispute, and the parties hereto hereby indemnify and hold harmless Escrow Agent for any action taken by it in good faith in execution of its duties hereunder. -3- 6. TERMINATION. Upon distribution of the Escrowed Funds as provided in Section 3 above, the Escrow Agent shall thereupon be released and discharged from any and all further obligations in connection with this Escrow Agreement. 7. FEES, Escrow Agent waives any fee for serving as Escrow Agent 8. RESIGNATION OF ESCROW AGENT The Escrow Agent may at any time resign by delivering the Escrowed Funds to a successor escrow agent designated by Buyer and Seller in writing, or to any court of competent jurisdiction, whereupon the Escrow Agent shall be discharged of and from any further obligation arising in connection with this Escrow Agreement. 9. MISCELLANEOUS. 9.1 Benefit and Binding Effect This Agreement shall be binding upon and inure to the benefit of each party hereto, and its successors and assigns. 9.2 Further Assurances The parties shall execute any other documents that may be necessary and desirable to the implementation and consummation of this Agreement. 93 Goveming Law This Agreement shall be governed, construed, and enforced in accordance with the laws of the State of Minnesota. 9.4 He adings . The headings herein are included for ease of reference only and shall not control or affect the meaning or construction of the provisions of this Agreement. 9.5 Amendment This Agreement cannot be amended, supplemented, or changed except by an agreement in writing that makes specific reference to this Agreement and which is signed by all the parties hereto. 9.6 Counterparts This Agreement may be signed in counterparts with the same effect as if the signature on each counterpart were upon the same instrument. 9.7 Entire .Agreement and Severability This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof. If any provision or application of this Agreement is held unlawful or unenforceable in any respect, such illegality or unenforceability shall not affect other provisions or applications that can be given effect, and this Agreement shall be construed as though the unlawful or unenforceable provision or application had never been contained herein or prescribed hereby. IN WITNESS WHEREOF, this Agreement has been duly executed by Seller, Buyer and the Escrow Agent as of the date first written above. V, -Wj a I WK191 Ij all) "I'm 0 1 IMUN Wral) UMMAN. I M� By: _ Its: Chair By: _ Its: Clerk SELLER: INDEPENDENT SCHOOL DISTRICT NO, 281 By: - Its: Chair By: _ Its: Clerk ESCROW AGENT: FIRST AMERICAN TITLE INSURANCE COMPANY B Its -5- 1*01 , 11 .1 k Seller's Property Description All that certain real property located in the City of New Hope, County of Hennepin, State of Minnesota, having a property address of 7940 55 Avenue North, New Hope Minnesota, 55428. The real property is generally depicted and identified by the "Tax Records" attached as Exhibit A -1 (the "Real Property "). The Real Property is composed of the following three (3) contiguous parcels: 06- 118 -21 -44 -0054 ii. 06-118-21-44-0055 06- 118 -21 -44 -0056 .44 acres (vacant) 5.25 acres (includes building) 11.25 acres (vacant) EXHIBIT A -1 Tax Records [See Attached] -7- Page 1 of 2 Note: Taxes Payable 2013 (2012 Values) will be available on this web site approximately 03101 Parcel Data for Taxes Payable 2012 Property ID: 06- 118 -21 -44 -0054 Address: 86 ADDRESS UNASSIGNED Municipality: NEW HOPE School Dist: 281 Construction year: Watershed: 8 Approx. Parcel Size: E 115X166 Sewer Dist: 02 Owner Name: SCHOOL DIST NO 281 Taxpayer Name ROBBINSDALE SCH DIST NO 281 & Address: 4148 WINNETKA AVE N NEW HOPE MN 55427 Sale Information Sales prices are reported as listed on the Certificate of Real Estate Value and are not warranted to represent arms - length transactions. Sale Date: October, 2004 Sale Price: $114,564 Transaction Type: Vacant Land _ Tax Parcel D escription The following is the County Auditor's description of this tax parcel. It may not be the legal description on the most recent conveyance document recording ownership. Please refer to the legal description of this property on the public record when preparing legal documents for recording Addition Nance: CVS WINNETKA ADDITION Lot: Block: First Line Metes & Bounds: OUTL.OT A Full Metes & Bounds: Note: To read full tax parcel description, click here. Abstract or Torrens: ABSTRACT Value and Tax Summary for Taxes Payable 2012 _ _ _ Values Established b Assessor as of January 2, 2011 Estimated Market Value: Taxable Market Value: Total Improvement Amount: Total Net Tax: Total Special Assessments: Solid Waste Fee: Total Tax: Property Information Detail for Taxes Payable 2012 _ Values Established by Assessor as of January 2, 2011 Values: Land Market Building Market Machinery Market Total Market: Qualifying Improvements httn- /Avixnv16 on hannan;n mn A=A K1 1 Q')t n A Of) LZA 1 Mt >11n1 11 Page 2 of 2 Veterans Exclusion Homestead Market Value Exclusion Classifications: Property Type Homestead Status Relative Homestead Agricultural Exempt Status COMMERCIAL PREFERRED NON - HOMESTEAD EXEMPT httw / /vavw16 r.n hPnnPnin tnn le lo, 9- ;A —n41 1 Q)1AAnnsn IIIIIII)AIII Page 1 of 2 Note; Taxes Payable 2013 (2012 Values) will be available on this web site approximately 03101 Parcel Data for Taxes Payable 2012 Property ID: 06- 118 -21 -44 -0055 Address: 7940 55TH AVE N Municipality: NEW HOPE School Dist: 281 Construction year: Watershed: 8 Approx. Parcel Size: IRREGULAR Sewer Dist: Owner Name: Taxpayer Name & Address: 02 SCHOOL DIST NO 281 ROBBINSDALE SCH DIST NO 281 4148 WINNETKA AVE N NEW HOPE MN 55427 Sale Information Sales prices are reported as listed on the Certificate of Real Estate Value and are not warranted to represent arms - length transactions. NO SALE INFORMATION ON FILE FOR THIS PROPERTY. Tax Parcel Description _ The following is the County Auditor's description of this tax parcel. It may not be the legal description on the most recent conveyance document recording ownership. Please refer to the legal description of this property on the public record when preparing legal documents for recording Addition Name: UNPLATTED 06 118 21 Lot: Block: First Line Metes & Bounds: W 288.6 FT OF E 494.6 FT OF N 1/2 OF Full Metes & Bounds: Note: To read full tax parcel description, Click here. Abstract or Torrens: ABSTRACT Value and Tax Summary for Taxes Payable 2012 _ V Established by Assessor as of .January 2, 2011 Estimated Market Value: —' Taxable Market Value: Total Improvement Amount: Total Net Tax: Total Special Assessments: Solid Waste Fee: Total Tax: Property Information Detail for Taxes Payable 2012 Value Est ablished by Assessor as of January 2, 2011 Values: Land Market Building Market Machinery Market Total Market: Qualifying Improvements Veterans Exclusion Homestead Market Value Exclusion hffn /AxrNxnv16 rn hannan ;n mn I "l AAAOIZIZ 1 rrti /�ni Page 2 of 2 Property Type Homestead Status Relative Homestead Agricultural Exempt Status Classifications. COMMERCIAL PREFERRED NON- HOMESTEAD EXEMPT liffn- /umnxrI ,. on r " ,oI- ;riol; "fA_+-1, , _')A-0K1 1 Q') I A A A0 Z 1 /71 11AI I Page I of 1 Intern ti t_ Search Map Advanced Search Find a PID or an address on the map Welcome Results .. Parcei _ . . _- - -- Links Tax informatio ti� Neighborhno 101; . _ View oblique Imagery (Bing maps) - - R, r Y Survey Documents ._..._. __.. Street PID: 0611821440055 _ 7940 55th Ave N , �k 7N� New Hope NON 55428 _ - County Owner/Taxpayer U .. s a Owner: School Dist No 281 ROBBINSDALE SCH m _.. TIC DIST NO 281 5 6TH AtkE _ 4148 WINNETKA Taxpayer: AVE N a NEW HOPE MN 55427 MU a... is Tax District ., School Dist: 1 s Sewer _..._ ._.. 02 Dist. �F Watershed ....._.. Dist: zy . � a* : � - Parcel r Parcel '5.25 acres ,. �. Area: :228,639 sq ft r Torrens /Abstract:. Abstract _.� µ Addition: Unplatted 06 118 21 - - N , hfitn:Ilais.en.hPnnPnin mr liCltlrll aenv`)n;rl- 1}�11R ^1d�J.ftf}CC /')1 PinIz Page 1 of 2 Note: Taxes Payable 2013 (2012 Values) will be available on this web site approximately 03101 Parcel Data for Taxes Payable 2012 Property ID: 06- 118 -21 -44 -0056 Address: 8000 SSTH AVE N Municipality: NEW HOPE School Dist: 281 Construction year: Watershed: 8 Approx. Parcel Size: IRREGULAR Sewer Dist: 02 Owner Name: INDEPENDENT SCHOOL DIST 281 Taxpayer Name ROBBINSDALE SCH DIST NO 281 & Address: 4148 WINNETKA AVE N NEW HOPE MN 55427 Sal Information Sales prices are reported as listed on the Certificate of Real Estate Value and are not warranted to represent arms - length transactions. NO SALE INFORMATION ON FILE FOR THIS PROPERTY. Tax Parcel Description The following is the County Auditor's description of this tax parcel. It may not be the legal description on the most recent - conveyance document recording ownership. Please refer to the legal description of this property on the public record when preparing legal documents for recording Addition Name: UNPLATTED 06 118 21 Lot: Block: First Line Metes & Bounds: THAT PART OF THE NORTH HALF OF THE Full Metes & Bounds: Note: To read full tax parcel description, click here. Abstract or Torrens: ABSTRACT Value and Tax Summary for Taxes Payable 2012 _ Values Establis by Assessor as of January 2, 2011 Estimated Market Value: - -- Taxable Market Value: Total Improvement Amount: Total Net Tax: Total Special Assessments: $6,664.60 Solid Waste Fee: Total Tax: $6,664.60 Property Information Detail for Taxes Payable 2012 Values Established by Assessor a of January 2, 2011 Values: — - Land Market Building Market Machinery Market Total Market: Qualifying Improvements Veterans Exclusion Homestead Market Value Exclusion htM /AX7AXnzr1 Fi rn i1P"'Ma";r, m» In ;7,- A —nK1 1 Q')1 A Ann <4 I my lnntiI) Page 2 of 2 Property Type Homestead Status Relative Homestead Agricultural Exempt Status Classifications: LAND COMMERCIAL PREFERRED NON - HOMESTEAD EXEMPT htM• / /xxnxnx71 i, on lhannan;r» m" ;nv,0 -4 —OK1 1 Q')1 AAAAZK 1 111 /1n11) Page I of 1 OM Welcome Results I-- . ............. -.- Links Tax Information View oblique imagery (Bing maps) Survey Documents ... .. . .... PID:0611821440056 8000 55th Ave N New Hope, MN 55428 ... ... .. .. . ..... Owner/Taxpayer Owner: Independent School Dist 281 ROBBINSDALE SCH DIST NO 281 Taxpayer: 4148 WINNETKA AVE N NEW HOPE MN :55427 Tax District . School Search Map Advanced Search '7 >1 Neighb:o" st rhoo Street City Cou nty - to F U Dist: '281 Sewer a '02 Dist: AV 5 Watershed Dist: 8 ..... ....... . ................. Parcel Uj Parcel - ',..: _ l ; _ ,�, � ��` W z �' :11.25 acres Area: 490,078 sq ft -�4 Torrens/Abstract Abstract 4 K Addition: Unplatted 06 118 21 90 httD:H6s.Co.hennen:n.rnn I 17 1 /'I 1 Find a PID or an address on the map .. ........ �•;II Removable Fixtures and Personal Pronertty [See Attached] = CSee Attached] STATE DEED TAX DUE HEREON: $5,950.00 Date: 20_ FOR VALUABLE CONSIDERATION, INDEPENDENT SCHOOL DISTRICT NO. 281, a public body corporate and politic under the laws of the State of Minnesota, Grantor, hereby conveys and warrants to ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL, a public body corporate and politic under the laws of the State of Minnesota, Grantee, together with its successors and assigns, real property located in Hennepin County, Minnesota, described as follows: Lot 7 and the West 270 Feet of Lot 8, excluding road right ways, Schaefers Lake Side Grove, according to the recorded plat thereof, Hennepin County, Minnesota; and Outlot 1, Mork Campion 4th Addition, according to the recorded plat thereof, Hennepin County, Minnesota. together with all hereditarnents and appurtenances belonging thereto (collectively, the "Property "). THE SELLER CERTIFIES THAT THE SELLER DOES NOT KNOW OF ANY WELLS ON THE DESCRIBED REAL PROPERTY. Grantee hereby covenants and warrants for Grantee and Grantee's successors and assigns, and for the benefit of Grantor and Grantor's successors and assigns, that, except as, and until, otherwise agreed in a writing duly executed by and between Grantee and Grantor, or their respective successors and assigns, and duly recorded against the Property with the County Recorder in and for the County of Hennepin, State of Minnesota, Grantee shall not use, or permit the use of, the Properly, in whole or in part, whether as a single campus or location or together with one or more other campuses or locations, and whether individually or in concert or affiliation with one or more other persons or entities, for any educational purpose, program, service or other educational use that includes, in whole or, in part, any or all academic grade levels from and including kindergarten through and including twelfth grade; provided, however and notwithstanding the foregoing, the following shall apply: (a) Grantee may use, or permit the use of, all or a portion of the Property for the provision of either or both (i) pre - kindergarten child care services and (ii) academic tutoring services; and (b) Grantee may use, or permit the use of, any athletic or recreational fields comprising all or any portion of the Property for any athletic or recreational purpose. All of the foregoing covenants and restrictions shall run with the land, and shall be binding upon Grantee and Grantee's heirs, devisees, personal representatives, successors and assigns. AFFIX DEED TAX STAMP HERE: INDEPENDENT SCHOOL DISTRICT NO. 281 By Its 2 ACKNOWLEDGMENTS STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of __,, 20 the and by _ , the —_ _ _. _— of Independent School District No. 281, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the corporation. (Notarial Seal) Notary Public THIS INSTRUMENT WAS DRAFTED BY (NAIVIE AND ADDRESS) Henson & Efron, P.A. 220 South Sixth Street Suite 1800 Minneapolis, Minnesota 55402 -4503 Tax Statements for the real property described in this instrument should be sent to (Include name and address of Grantee): DISSENT TO PURCHASE OF WINNETKA LEARNING CENTER PROPERTY Daniel Stauner Council Member I dissent from the decision by the majority of the council to purchase the Winnetka Learning Center property. Given the limited time available for discussion of issues at council meetings and the limitation on discussion of issues outside of council meetings, I am writing to more thoroughly discuss the reasons for my dissent. I. The majority has not articulated a reason the city should buy the property. It has been said that the site is key property and that it is a key property because it is big. Neither of these claims can withstand scrutiny. The property, unlike the K -Mart property, is not the cornerstone in the process of redeveloping a central area of the city or the first step in assembling parcels of land that will be necessary to accomplish a significant redevelopment. This property is a stand alone site. It is not part of a bigger critical area the redevelopment of which will define the future of the city for several generations to come. Nor is this a blighted or problem property. As it stands now the property is green space that benefits the city. The size of the property is as much a detriment to development in this case as a benefit. The bigger the parcel to be developed the bigger the cost to the devel oper. The bigger the cost the bigger the subsidy from the city in the form of infrastructure construction and public financing that will be necessary to develop the site. Any potential tax revenue from development will be severely limited by the costs of funding that development. It has also been said that the city should control the property. But no one has explained why control of the property is beneficial to the city. The fact that the property will be encumbered by a restrictive covenant demonstrates one aspect of control that comes with ownership; the right to limit future use of the property. But the covenant also means that we will not have full control of the property. To the extent that we feel the need to control future development of the property a city has tools available to it that are not available to most property owners which allow a city to influence how a property is developed. These tools include zoning ordinances and public financing. If the idea is that city ownership of the property will attract developers ( "if you own it they will come ") that may be true. But it will be true only because developers will believe that city ownership means the property can be acquired by the developer for little or no cost. R1 No one will ever accuse this council of favoring a hardball negotiating strategy when it comes to real estate purchases, but we have not even done a minimal cost benefit analysis of the purchase of this property. Why is the property worth $1,750,000 to the city. What benefits does the city receive from owning the property that justify paying that price. By the time we demolish the building and clear the property we will have invested in the neighborhood of $2,000,000 in the property. This is money .that the city will not get back from a developer. When we subsidize development we have a duty to to carefully determine the public benefit that will flow from that investment. We will also incur carrying costs for owning the property during the years it sits vacant waiting for development. Any development on the site will require significant subsidies from the city that will include tax increment financing that will reduce the tax revenue the city will receive from the property. There is no clear public good that will be generated by city ownership of the property that justifies this commitment of public resources at this time. III. The old saying in real estate is that the value of a property comes down to location, location and location. The location of this property limits the uses that can be made of it. This is not a viable location for a retail development. The market for retail properties is severely depressed at this time. But even in a good retail market this location has major drawbacks for a retail development. To begin with only a small portion of the property fronts on a major street. That may not matter for a school site but it is important for generating the traffic necessary to sustain retail. The site is just up the hill from a major retail area in Crystal with which it would have to compete. Retail development on this site would also compete with and draw critical traffic away from any retail development we undertake in city center. More than likely this would result in retail not being viable in either location. It is unlikely that we would put industrial development on this site, and there is no clear demand for new office space in New Hope. We have not done an analysis of the potential uses of the property that would enable us to determine whether or not this is a viable site for single family homes. The one thing that should be clear from citizen responses to recent redevelopment proposals is that this is the type of development that would be preferred by a large majority of our citizens. There has been a recent improvement in the single family home market and it may be that this site would work as a single family development. But there are issues with the configuration and location of the property that may make it unsuitable for such a development. A careful approach to acquisition of property for redevelopment dictates that an analysis of the potential uses for the property, a study that would help determine the true value of the property to the city, be done before purchase negotiations commence, not after the property has been purchased. The most likely development to occur on the site is high density housing. The townhome /condominium market is still depressed and is likely to remain that way for years to come. When the market does start to recover, many of the new apartment complexes now under construction will be converted to condominiums slowing the growth in the demand for new development., including development of new condominiums on this site. If development does occur on this site in the near future it will almost certainly be in the form of a large apartment complex. Probably one several stories high. But even with apartments there are factors that could make development of this site problematic. There are currently some 14,000 apartments in various stages of construction in the metro area. More are in the pipeline, including the 800 units proposed for Golden Valley and the 64 units proposed for 62nd and Broadway. Real estate development tends to be highly focused, concentrating on what developers see as the hot type of property at any given moment. There is a real danger that the apartment market will reach saturation sooner rather than later. As we consider what development to direct city subsidies toward we should be very careful of the risks associated with a saturated market for any type of development. If there is one lesson the Winnetka Green project should have taught us it is that your are more likely to have a problem development if your project comes on line at the point the market is saturated. The other issue that an apartment development raises on this site is the impact on city center. All the discussions of redevelopment at city center of indicated that an apartment housing component is an essential element to making city center viable in the future. It is likely that apartment buildings in city center will be high rise structures to provide a large enough number of units to make the development economically feasible. It is uncertain that the market can absorb a large number of apartments at both sites. IV. The question is not whether the Winnetka Learning Center site will be redeveloped at some point; it will be. Nor is it whether the city will be involved in the redevelopment process and provide subsidies for the redevelopment. The question is whether or not we should be diverting any of our limited resources for redevelopment to this site at this time. We have taken the first steps in the process of a major redevelopment of city center by purchasing the K -Mart property. With the costs of acquisition and clearing the Winnetka Learning Center site we will have invested more than half of the funds currently available for redevelopment in this site. Those funds will no longer be available to use to maintain the momentum we have begun in pursuing a vision driven redevelopment of city center. Not only will we divert financial resources away from city center but we will also divert human resources in the form of staff time and focus away from city center. By diverting resources at a critical moment in the city center redevelopment process we increase the risk that a vision driven redevelopment will not occur and we will slide back into piecemeal redevelopment with all the negative consequences that entails. EDA Originating Department Community Development Curtis Jacobsen, Director of CD Approved for Agenda February 11, 2013 Kirk McDonald, Agenda Section EDA Item No. Resolution adopting "Agreement to deliver the city of New Hope Loan and Home Energy Visit Program" within the city of New Hope administered by the Center for Energy and the Environment (CEE) Requested Action Staff requests that the EDA approve a resolution adopting the agreement for four housing programs to be offered within the city of New Hope and administered by the Center for Energy and the Environment (CEE). Policy /Past Practice It is city practice to have the EDA review and approve housing programs that will be offered within the city of New Hope and paid for with EDA monies. Background In late 2011 the Council accepted a staff recommendation to move the administration of housing programs from GMHC to CEE. In Early 2012, CEE began administering the Minnesota Fix -Up Fund and Home Energy Loan programs in New Hope. On June 18 at the work session CEE staff along with city staff addressed the Council at a work session with the idea of creating a couple of additional programs that could be used in New Hope and would be programs specific to New Hope. Proposed at this time are the following programs: Revolving Loan Program, an Interest Subsidy Program, an Emergency Deferred Loan Program and the Home Energy Visit Program. The Revolving Loan Program would be a local program to assist New Hope residents with home improvements when they may not be eligible for other fix up program loans. It is suggested that this program initially be funded at $42,000. The Interest Subsidy Program would be to assure that all borrowers in the programs in New Hope have available funds at a reasonable rate and to assure consistency between MHFA program loans and city funded loans initially proposed to be funded at $5,000. The Emergency Deferred Loan Program is desijzned to assist New Hope residents who have true emerizencies but do not aualifv for other Motion by r CLC L1),1L, Second by 0W � /)wV61 10 I:\RFA\COMM JAS & Ab1.3 -- Initiatives \Q & R - Agreement CEE programs for 2013.doc Request for Action February 11, 2013 Page 2 loan or grant programs, initially proposed to be funded at $15,000. The final program proposed to be put in place in New Hope is the Home Energy Visit Program designed to assist New Hope residents in their quest to save energy by thoroughly inspecting the home and providing simple energy saving upgrades and contractor coordination on larger scale projects, this program would initially be funded at $15,000. The EDA has budgeted $100,000 for these programs in 2013. Program costs and administrative fees from CEE are anticipated to come in at $85,000 or $15,000 under the funds budgeted for this purpose. Recommendation Staff recommends the EDA adopt the proposed program Agreement and budgets for implementation by CEE of the specified housing programs. Attachments • Resolution • CEE letter • Agreement Economic Development Authority New Hope, Minnesota Resolution No. 2013 — Resolution adopting "Agreement to deliver the city of New Hope Loan and Home Energy Visit Program" within the city of New Hope administered by the Center for Energy and the Environment (CEE) WHEREAS, the city desires to continue the promotion of well maintained houses within the city, and WHEREAS, the city has appointed the Center for Energy and Environment to administer many city housing programs, and WHEREAS, the Council has at previous council meetings supported the expansion of the number of housing programs available to the residents of the city. NOW, THEREFORE BE IT RESOLVED that the EDA hereby adopts the attached agreement and budget for implementation within the city of New Hope: Adopted by the Economic Development Authority of the city of New Hope, Hennepin County, Minnesota, this 11th day of February, 2013. President Attest: Executive Director February 5, 2013 Mr. Curtis Jacobsen City of New Hope 4401 Xylon Ave. North New Hope, Minnesota 55428 Dear Mr. Jacobsen: I would like to thank you for selecting the Center for Energy and Environment (CEE) to be the program administrator for the New Hope Home Improvement Loan and Home Energy Visit Program. Please find 2 copies of the program agreement enclosed for your review and the approval of the New Hope Economic Development Authority. Please let me know if I can assist you in your review of the agreement. ��oich �.A� e; 56"'1 are ,, 1 , Ev�i` iJ1 � � , . 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LOAN ORIGINATION AND HOME ENERGY VISIT AGREEMENT This LOAN ORIGINATION and HOME ENERGY VISIT AGREEMENT(" is made by and between the ECONOMIC DEVELOPMENT AUTHORITY |n and for the City of NEW HOPE, with offices at 4401 Xylon Avenue N' New Hope, /WN 55428 (''Authoriitv"), and CENTER FOR ENERGY AND ENVIRONMENT, with offices at 212 3rd Avenue North, Suite 560, Minneapolis, Minnesota 55401 /"CEE">. RECITALS A. The Authority has o need for certain professional services and desires to retain CB to provide said services, all subject |o the terms and conditions contained inthis Agreement. CEEis qualified to provide the desired professional services and desires to provide sold services for the Authority, all subject to the terms and conditions contained iDthis /\0naenlert. NC}YV'THEREFORE|n consideration of the foregoing and the mutual promises contained inthis Agreement, the parties agree as follows: J, of Work |.l CBE shall in conjunction with the A develop and deliver the City nfNew Hope Home Improvement Loan Program (hereinafter the "Program") and more fully described in Exhibit A attached hereto. All activities delivered under the Program shall be coordinated viith the Authority's designated program manager, Curtis Jacobsen. ' 1.2 CEE shall assist the Authorirry staff in marketing the Program, CEE shall insure that the Authority's sponsorship of the program isoprominent part of any marketing effort. 1.3 The funding source is exclusively from the Authority and the program will be referred t000 the Authority Funded Program. 2. Compensation 2.1 The Authority shall compensate CEE for services provided under this agreement according to the following schedule and more fully described in Exhibit B attached hereto: Loan 06-gination Fee $550.00 The Authority shall pay CEEon{}h 'no#onFwefnreVchkoonokoaedudnQfheAofhodtv Funded Program. The Origination Fee shall compensate CEE for assisting borrowers with loan applications, preparation of loan documents, loan closing and other direct costs of processing loans. Mortgage filing costs shall be paid by the borrower. CEE shall provide a copy of closing documents including f he loan note and mortgage as documentation of the loan closing. AUTHORITY — between —-- Page1 ENVIRONMENT Interest Subsidy . Orig !nation Fee $150.00 The Authority shall pay CEE an origination fee for each interest subsidy grant closed using the Auth0hty Funded Program, CEE shall provide o copy of the mHFA loan note and k4HFA Origination Certifioateoo documentation nf loan closing. Post Installation Inspection Fee $80.0} The Authority shall pay CEE a fee for each post installation inspection completed. The inspection shall be performed byCEE whenever the project doesn0tnequireobuUding permit to verify the work was c0nlp|eted. $100.00 TheAVthohfyshaUpayCEEafmeforeochpFopertyinspection.Thiyinopectionin required for the emergency deferred loan program only. Home Energy Visit $70.00 The Authority shall pay CEEo fee for each home energy Visit completed. The Authority shall compensate CEE only for services completed. Upon request [EEvvU| provide marketing services for the following fees: CEELabor $65.00/hour Hourly rates are inclusive of all overhead expenses and will be charged only for hours din+cf|yna|ahrdtonnorketing. CEE will bo reimbursed by the Authority for any non-labo/. out-of-pocket expenses, relating to these services nnodo||mphJr-doUor basis with no mark-up. 2.2 CEE shall invoice the Authority not more than two times each month for the principal of loans and administrative fees. The Authority shall pay CEE within 20 days of receipt of the invoice. 3. CLIENT's Obligations 3.1 If requested byCEEthe Authority shall make reasonable efforts to respond promptly h» requests from CEE for information and approvals regarding the services fobe provided under this Agreement. 3.2 If requested by CEE, the Authority shall make reasonable efforts to obtain information and or permission for access from clients which may be necessary for CEEto provide the services under this Agreement, 3.3 TheAufhohfyshoUpnovkdexofficianffundingfofunde|iQib|eAu1hodtyfunded loans. The Authority shall determine the amount of funds allocated 1othe Program. 3.4 The Authority sho||extob!ish eligibility for the Authority Funded Program and shall provide these criteria in writing 1oCEE prior to commencement ofany marketing efforts. CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY m and for the CITY OF NEW HOPE and CENTER FOR ENERGY AND ENVIRONMENT Page 8,5 The Authority shall make reasonable efforts to respond promptly 1oxyquests from CEE for informof [on and approvals regarding the services tobe provided under this Agreement. 4.1 CBE shall use its best efforts to provide services under this Agreement hno professional manner consistent with fhe care and skill used byreputable members cfCEE`oprofession. 4.2 CBE and all of its employees or agents, shall comply with all statutes, ordinances, rules, regulations and other laws applicable fo the provision Vf services Under this Agreement. 4.3 CEE shall secure all permits and licenses required for performance nfthe services under this Agreement. 4.4 CEE shall not engage in discriminatory employment practices against any employee or applicant for employment and shall in all respects comply with all federal, state and local laws, regulations and orders, including without limitation, Chapter 363of the Minnesota Statutes, ao amended from time iotime. Failure to comply with the provisions hereof shall be deemed a material default under this Agreement. 5.1 Unless earlier terminated cs provided hl the following paragraphs, this Agreement shall become effective on March l'2Ol3. and continue through December 3l'2O|5. 5.2 This Agreement may be terminated by either party, for any re-oson or no reason, immediately upon written notice tu the other party. |n the event this Agreement is terminated byCEE prior to the expiration of the term set forth in paragraph 5.l,the Authodty shall compensate CEE for all services delivered up the dote of termination and CEE shall provide the Authority with such information as the Authority may request regarding the slafus of the Authority Funded Program. 53 Any termination ofh his Agreement shall not release either party from their resoec1ive obligations under sections 7 and Oof this Agreement, 6. insurance 6.1 During the'ferm of this Agreement, CEE will obtain and maintain insurance in the amounts listed below: General Liability $2.000'000 Aggregate Urn|t Automobile Liability $1 Combined Single Limit Excess Liability $1,000'000 Aggregate Limit Workers Compensation Statutory Limit ��dhx�e CDYOF NEW HOPE �dCeNTEmFOR ENERGY AND CONTR -----ECONO DEVELOPMENT ENVIRONMENT NwENT Page] 7. Liability and Indemnification 7.1 CB represents that the services tobm provided under this Agreement are reasonable in scope and that CEE has the experience and ability hz provide the services. 7.2 CBE warrants that any services provided hereunder shall b* done inq professional and workmanlike manner. 7.3 CEE shall indemnify, defend and hold honn|esu Authority and its officers, directors, employees and agents from and against any and all claims, damages, losses, injuries andexpenses (Including attorneys' fees and damages for death, personal injury and property damage) which Authority may incur as a result of any act or omission by CEE in providing services under th.'s Agreement. 7.4 Aufhmrih/shall indemnify, defend and hold harmless CEE and its officers, directors, employees and agents from and against any and all claims, damages, losses, injuries ondswponsexUndudingottommys'foeeonddamages for death, personal injury and property damage) which CEE may incur osu result of any act o( omission by Authority in discharging its duties under this /\gnaemant. Unless otherwise agreed byAuthority in writing, CEEsho maintain in confidence and nofdisclosetoonyMhirdportymny|nhznnohonobfainedmagordingthaAuthnhy and/or any of Auf hority's clients for which CEE is providing services; provided, however, that this obligation to maintain confidentiality shall not apply to: a) Information il the public domain of the time ofdisclosure; b) Information which becomes part of the public domain after disclosure through no fault of CEE; or d Information which CB can demonstrate was known byd prior h»the date of this Agreement. Noiwifhstanding the foregoing, CEE shall beonfitled to disclose the documents or client information covered bythis paragraph fo governmental outhohUestoUleextentCEE reasonably believes it has a legal obligation to make such disclosures and to the extent CEE reasonably deems to be necessary; provided, however, that if CEE believes that any such disclosure ix required by law, it shall provide advance notice to the Authority to provide the Authority with a reasonable opportunity to attempt to obtain an injunction or other protective order preventing such disclosure. T- CEE Will provide services as an independent contractor under this Agreement. Neither CEE, nor any of its employees or agents, shall be considered employees of the CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY In and for the CITY OF NEW'HOPEand CENTER FOR ENERGY AND ENVIRONMENT page* AofhOdty for any purpose, and neither shall CBEbe eligible for any compensation or benefits which the Authority may provide hoits employees from time totime. CBEoha|| be solely responsible for all employment and other faxes applicable toproviding services hereunder, and the Authority will not withhold any taxes u[ contributions from the compensation payable toCEE under this Agreement. 1 0. Notices All notices, requests, demands and other communications required tobe given h1 writing under this Agreement shall be given to the of her party in person or by mail as provided in this section. |f delivered personally, notice shall be deemed to have been duly given on the date ofdelivery. |f delivered by mail, such notice shall be sent via first C105-S U.S. Mail, postage prepaid, to the address set forth at the beginning of this Agreement or such other address as a party may otherwise request by written notice, and notice shall ba deemed duly given three (3) business days after mailing. 11. Assignmerill This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, successors and assigns; provided, however, that neither party shall assign or transfer in any manner, this Agreement or any portion hereof without f he prior written consent {f the other party, and any off ennpttn assign or transfer without prior written consent shall be void and nfnueffect. 12. Governing Low This Agreement shall be governed by and construed 'in accordance with fho laws rf the State ofMinnesota. 13.1 Headings and captions used inthis Agreement are for convenience only and shall not affect the meaning of this Agreement. 13.2 This Agreement contains the en agreement of the parties and supersedes all phorogreements.dlsoosdonsondrepreoeniofiqns.wriftenorono the subject matter hereof. 133 No waiver bythe Authority of any term or condition of this Agreement o/any document referred toherein shall, whether by conduct or otherwise, be construed cmo waiver or release of any other |ennor condition ofthis Agreement. 13.4 This Agreement may only be amended ino written agreement signed byboth parties. 13.5 Except as expressly set forth in section 7. the rights and benefits under this Agreement shall inure solely to the benefit of the Authority and CEE, and this AUT�ORr�N�d��Cr�Opm2�HOP5��wTtRp�ncNcns CONTR ----�----- D — ENVIRON Agreement shall not be construed 1ogive any rights, benefitsormJUseeCf action to any third party, 13.6 The invalidity or partial invalidity Of any provision ofthis Agreement shall not invalidate the remaining provisions, and the remainder shall be construed as of the invalidated portion shall have never been a part of this Agreement. 18.7 CEE shall comply with the provisions of Minnesota Statutes Chapter \3 (Government Data Practices) that are applicable tV the Authority and shall not disseminate any information concerning loan requests of the borrowers without the prior written approval Vf the Authority, 13.8 This Agreement may be signed in any number of counterparts, each of which shall be deemed an original and one and the same instrument. |N WITNESS WHEREOF, the parties have executed this Agreement osof the date first written above. EC{]N{}k4|C DEVELOPMENT AUTHORITY inand for the City of New Hope Us: Print No Dote: CENTER FOR ENERGY &ENVIRONMENT By: Its: Corporate Secretary, Jennifer Amendt Tax |D# 41-1647799 CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF NEW HOPE and CENTER FOR, ENERGY AND ENVIRONMENT Page This document includes guidelines for the: REVOLVING LOAA PROGRAM, INTEREST SUBSIDY GRANT PROGRAM, and the EMERGENCY DEFERRED LOAN PROGRAM in addition to the HOME ENERGY VISIT Page Exhibit A - New Hope Program - Center for Energy and Environment The City of New Hope is making funds available for New Hope homeowners to make improvements to their properties. This program consists of 3 distinct loan offerings, the Revolving Loan, the Interest Subsidy Grant and the Emergency Loan as well as the Home Energy Squad Enhanced visit. The New Hope Program is designed to supplement existing loan programs available from MHFA, CEE, private lenders and other housing resources. This program is not intended to be the sole source of improvement funds available to the City. Center for Energy and Environment shall serve as the administrator for the New Hope programs and will secure the most beneficial financing based on the borrower's needs independent of the funding source. New Hope Program Pool Budget: $42,000. Interest Rate: 4% fixed Amortization T y kel Amortizing. Closed -end (Monthly Payments Required) Loan Amount: Minimum loan size of $1,500 and maximum of $5,000. Total Project Cost: The borrower must have sufficient funds necessary to cover the cost of the entire project (as outlined in the bid(s). Additional funds mat come from the borrower's personal savings, bona fide gifts, or other NON New Hope EDA loans. Loan term: Generally, one year per $1,000 borrowed. This wili be somewhat flexible depending on the size of the loan and the borrower's ability to repay the loan. The minimum term is 1 year; the maximum term will be 10 years. Eligible Properties 1 -4 unit properties located within the geographical boundaries of the City of New Hope. Townhomes and Condos are eligible. Ineligible Properties: Dwellings with more than four units (as these would be considered "apartments" and hence commercial properties), condominiums that are "Condo - hotels ", co -ops, manufactured homes, time shares, properties held in the name of a trust, contract for deeds, and properties used for commercial purposes. Eligible B orrowers: All borrowers must be legal residents of the United States, as evidenced by a social security number, Including: U.S. Citizens, Permanent Resident Aliens, Non- Permanent Resident Aliens. TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE. Exhibit A - New Hope Program Page 2 Center for Energy and Environment f:t11.3�r=1 Ineligible Borrowers: Including but not limited to: - Foreign Nationals, Non - Occupant Co- Borrowers, and Properties held in the name of a trust. ownership /Occupancy Owner- occupied and absentee owned are eligible. Contracts for Deed are not eligible. Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, should not exceed 110% of the property value. Income Limit No maximum income limit. All income must be derived in the United States. Debt - to - Income Ratio: Applicant must have the ability to repay the loan. An applicant who has a debt to income ratio in excess of 50% will be denied loan financing. Credit Reouirements: 1) All mortgage payments must be current and reflect 0 x30 payment history in the past 12 month period. 2) All real estate taxes must be current. 3) A reasonable explanation for any judgments and collections is required and may not have been placed within 12 months prior to the application date. 4) Bankruptcy must have been discharged for at least 12 months. Borrowers with late payments after bankruptcy may be declined based on an evaluation of the borrowers situation and ability to repay. 5) The redemption period on prior foreclosures must have occurred at least 12 months prior to the loan application date. Multiple Loans per Pro erty: More than one loan per property is permitted, however prior loans must be paid in fuli before a new loan on the property can be made. Multipl Loans per Borrower: Owners of multiple properties within the City of New Hope may receive one loan for each property, subject to the loans- per - property restriction above. Eligible Use of Funds: Loans may be used to finance most interior and exterior improvements that improve the basic livability of the property including the garage, as permitted by the guidelines of the MHFA's Fix Up Fund program. Ineligible Use of Funds Payment for work initiated prior to the loan being approved and closed. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non - permanent appliances, and funds for working capital, debt service or refinancing existing debts are NOT allowed. Bids: 2 bids are required when the work frorn any one contractor exceeds $5,000. All contractors must be properly licensed, as required by the City of New Hope. Permits must be obtained where required; when not required, a post installation inspection will be performed by CEE to ensure the work has been completed. Sweat Equity; Homeowner Labor: Work maybe performed by property owners on a "sweat equity" basis. Loan funds may be used only for the purchase of materials. Loan funds cannot be used to rent, tools or equipment or compensate for labor. The property owner will provide evidence to CEE that they have the ability to complete the work. Exhibit A - New Hope Program Page 3 Center for Energy and Environment W Property Inspection: Not required. Post Installation Inspection: Permits must be obtained and signed off by'a City inspector where required; when not required, a post installation inspection will be performed by CEE to ensure the work has been completed before any funds will be released. Loan Securitv: All loans will be secured with a mortgage in favor of the City of New Hope. Borrower will pay filing fees. Underwriting Decision: Applicants must have acceptable credit history: Borrowers may not have any payments greater than 60 days late in the past 12 months (without reasonable explanation), or have had a bankruptcy in the last two years. Applicants must also be current on all mortgage payments and real estate property taxes. CEE will approve or deny loans based on a credit report, income verification and other criteria as deemed necessary through CEE's underwriting guidelines. CEE's decision shall be final. Work Completion: All work must be completed within 120 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case by case basis. CEE will utilize City funds to write down the interest rate on the Minnesota Housing Finance Agency's (MHFA) Community Fix -up Fund Program. The intent of the program is to make the interest rates on MHFA funded loans and City funded loans more consistent and leverage additional dollars for the City. Underwriting Decision: Underwriting of these loans will follow the MHFA procedural manuals and normal and prudent underwriting criteria. Inte Rate: The City of New Hope will subsidise or "buy Down" the current MHFA Community Fix Up Fund interest rate to 4 %. Amo rtization Type: Not applicable. These funds are used to permanently write down the interest rate on the MHFA Community Fix Up Fund Loan, therefore these funds are a grant and are not re collected by the City. Loan Amount Minimum loan amount $2,000 maximum loan amount $7,500. Income Limit: Per MHFA guidelines, an eligible borrower must have an annual household income of less than the current MHFA Community Fix -up Fund income limit (currently $96,500). Loan Te rm: Generally, one year per $1,000 borrowed. The maximum term will be 10 years. Exhibit A - New Hope Program Page 4 Center for Energy and Environment Eligible Properties: 1 -4 unit properties, including Condos and Townhomes, located in the City of New Hope. Ineligible Properties: Dwellings with more than four units (as these would be considered "apartments" and hence commercial properties), condominiums that are "Condo- hotels ", co -ops, manufactured homes, time shares, properties held in the name of a trust, and properties used for commercial purposes, E ligible Borrowers All borrowers must be legal residents of the United States, as evidenced by a social security number, including: U.S. Citizens, Permanent Resident Aliens, Non - Permanent Resident Aliens. TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE. Ineligible Borrowers: Including but not limited to: - Foreign Nationals, Non - Occupant Co- Borrowers, and Properties held in'the name of a trust, Ownership /Occupancy: Owner- occupied and absentee owned are eligible, Contracts for Deed are not eligible. Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, must not exceed 110% of the property value per MHFA guidelines. Debt - to income Ratio: Per current MHFA guidelines at the time of closing, an applicant must prove the ability to repay the loan and have a debt to income ratio less than 48 %. Credit Requirements: Follow MHFA guidelines. Multiple Loans oer Property: The Interest Subsidy Loan Program is limited to one -loan per borrower; therefore a loan for multiple properties would not be permitted. Multiple Loans p Borrower: One loan per borrower. Eligible lm�rovements: Per current MHFA guidelines at the time of closing, loans may be used to finance most interior or exterior improvements, including the garage. Ineligible Use of Funds Payment for work initiated prior to the loan being approved and closed. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non- permanent appliances, and funds for working capital, debt service or refinancing existing debts are NOT allowed. Bids: 1 bid is required. All contractors must be properly licensed, as required by the City of New Hope, Sweat Eguity l homeowner Labor: Work maybe performed by property owners on a "sweat equity" basis. Loan funds may be used only for the purchase of materials. Loan funds cannot be used to rent tools or equipment or compensate for labor. The property owner will provide evidence to CEE that they have the ability to complete the work. Exhibit A - New Hope Program Nage Center for Energy and Environment rj Property Inspection: Not Required. Post Installation Inspection: Random as chosen by MHFA. Loan Servicing: MHFA will be responsible for servicing the loans. Loan Security: As required by the MHFA, all loans will be will be secured with a mortgage. Loan Costs: Administrative fees will be paid from the City's Administrative Budget for this program. Servicing costs will be paid by MHFA. Borrowers will pay all filing fees. Underwriting Decision: Applicants must have acceptable credit history: Borrowers may not have any payments greater than 60 days late in the past 12 months (without reasonable explanation), or have had a bankruptcy in the last two years. Applicants must also be current on all mortgage payments and real estate property taxes. CEE will approve or deny loans based on a credit report, income verification and other criteria as deemed necessary through CEE's underwriting guidelines. CEE's decision shall be final. Work Completion: All work must be completed within 120 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case by case basis. New Hope Emergency' Deferred Loan Program The Emergency Deferred Loan Program is designed specifically for homeowners in the City of New Hope that have emergency home improvement needs but do not qualify for other home improvement loan or grant programs. Applicants will be considered for this program only after it is determined that they are not eligible for all other traditional home improvement program options that CEE administers. New Hope Program Pool Budget: $15,000. Inte Nate 0% deferred loan Amortization Type: Deferred. No Payment is due as long as the borrower retains ownership. 100% of the amount borrowed is due on sale or transfer of ownership. Loan Amount: Minimum loan amount $1,000; Maximum loan amount of $5,000. Total Project Cost The borrower must have sufficient funds necessary to cover the cost of the entire project (as outlined in the bid(s). Additional funds may come from the borrower's personal savings, bona fide gifts, or other NON New Hope EDA loans. Because this is a "last resort" program, other New Hope loan programs are not an eligible source. Loan Term The loan is due and payable upon sale or transfer of ownership of the property. Exhibit A - New Hope Program Page 6 Center for Energy and Environment Eligible Properties: Funding will be available in the form ofadeferred payment loan upto $5,000 for I- 4 unit owner-occupied properties. Ineligible Properties: Dwellings with more than four units (as these would be considered "apartments" and hence commercial propertie», condominiums that are "Condo-hotels", co-ops, manufactured homes, time shares, properties held in the name of a trust, and properties used for commercial Borrowers: Eligible All borrowers must be legafresidents of the United States, as evidenced by a social security number, Including; U.S. Citizens, Permanent Resident Aliens, Non-Permanent Resident Aliens. TAX IDENTIFICATION NUMBERS (|T|N) ARE NOT ACCEPTABLE. Ineligible Borrowers: including but not limited to: ' Foreign Nationals, Non-Occupant Co-Borrowers, and Properties held in the name of a trust. owner- occupied are eligible, Contracts for Deed are not eligible. The ratio of all loans secured by the property, including the new loan must not exceed 110% of the property value. income Limit: Annual household income will be calculated based on current gross income projected forward l2months. The household limit is75%of the AK4i These numbers will change yearly |n accordance with HUD guidelines, All income must be derived within the United States. NIA with this program. Credit Requirements: This ise"last resort" program: the borrower must not be eligible for any other financing in order tn obtain on Emergency Loan. Multiple Loans per Borrower: one loan per borrower. Multiale Loans Per Pro perty: Program is limited tn one loan per borrower. Therefore a loan for multiple properties would not bepermitted. Loan Security: All deferred loans will be secured with a mortgage or lien in favor of the City of New Hope. Borrower will pay all filing fees. Eligible Improvements: An emergency b defined asan imminent condition that makes the house dangerous oruninhabitable. CEE will determine whether the proposed improvement isanemergency based Pna site visit to the property. [EEy decision on project eligibility shall befinal. Ineliaible U$e of Funds: Projects that do not meet the definition of "Emergency" as previously outlined. Payment for work initiated prior to the loan being approved and closed. Recreation or luxury projects (pools, lawn sprinkler systems, playgrOUnd equipment, saunas, whirlpools, etz.), furniture, non- permanent appQanmas,andfundsforvvorkinBcapita[debtseniceorrefnancingexJstingdebtsm Exhibit A - New Hope Program Page 7 Center for Energy and Environment I1r:1 Bids: 2 bids are required when the work from any one contractor exceeds $5,000. All contractors must be properly licensed, as required by the City of New Hope. Permits must be obtained where required; when not required, a post installation inspection will be performed by CEE to ensure the work has been completed. Sweat Equity/ Homeowner Labor: Work may NOT be performed by property owners on a "sweat equity" basis. Property inspection: Required prior to loan approval to determine the situation is an emergency. Post Installation Inspection: Permits must be obtained and signed off by a City inspector where required; when not required, a post installation inspection will be performed by CEE to ensure the work has been completed before any funds will be released. Loan Security: All loans will be secured with a mortgage in favor of the City of New Hope. Borrower will pay filing fees. Work Completion: All work must be completed within 30 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case by case basis. • :,, # ,.. Application Processing:_ Loans will be distributed on a first come first serve basis as borrowers qualify. Applicants must provide a completed application package including the following in order to be considered for funding. ;P Completed and signed application form Proof of income Bids or estimates for proposed projects other miscellaneous documents loan officers may require. Contracto Permits: Contractors must be properly licensed to work in the City of New Hope. Permits must be obtained when required by city ordinance. Pr oararn Costs: Loan origination, post installation inspection, property inspection and home energy visit fees will be paid out of the-City of New Hope Program Administrative Fund. Loan program marketing efforts will be billed directly to New Hope and is a separate expense should New Hope choose to commission CEE for marketing support. Borrowers will pay all mortgage filing fees and related closing costs. Total Project Cost: It is the borrower's responsibility to obtain the amount of funds necessary to finance the entire cost of the work. in the event the final cost exceeds the original loan amount, the borrower must obtain the additional funds and show verification of the additional funds in order to be approved for the loan. CustodMof Funds: (Interest Subsidy Grant only) Funds will be disbursed to the borrower upon completion of required rescission period after loan closing. Exhibit A - New Hope Program Page 8 Center for Energy and Environment Disbursement Process: (Emergency Loan or Revolving Loan only) Payment to the contractor (or owner in sweat equity situations of Revolving) will be made upon completion of work. An inspection will be performed by a City inspector and /or CEE to verify the completion of the work. The following items must be received prior to final disbursement of funds: • Final invoice or proposal from contractor (or materials list from supplier); • Final inspection verification by a City Inspector (or CEE); • Completion certificate(s) signed by borrower and contractor; • Lien waiver for entire cost of work; • Evidence of required city permit. City of a Hope Home Energy Squad Enhanced visit Program This unique residential energy efficiency program, called the Home Energy Squad Enhanced visit, provides an easy and comprehensive pathway for New Hope residents to save energy through major energy upgrades, as well as through low -cost and no -cost approaches. The program has 4 major steps: 1) community engagement and marketing; 2) home energy visits to residences; 3) follow -up services as a path to major energy upgrades; and 4) contractor coordination. New Hope Program Budget: $15,000 Total Project Cost: CEE shall submit regular invoices to the City of New Hope for expenses incurred under this agreement. The City of New Hope will reimburse CEE $70 per home energy visit completed in New Hope, not to exceed $15,000 (214 participants) without further authorization from the City. Timeline: The project shall run through December 31, 2013 and may be extended upon mutual agreement by the parties. Exhibit A - New Hope Program Page 9 Center for Energy and Environment I W1: 1 -1 .1 k 6 W a ifun Its .f . I . 0 . of 0 Exhibit B - New Hope Program Page 1 Center for Energy and Environment WARMA A. Total New Hope, Program Fund Allocation: $85.000.00 B. Use of Funds Program "Capital" $62,000.00 Revolving Loan $ 42,000.00 Interest Subsidy Grant $ 5,000.00 Emergency Deferred Loan $ 15,000.00 Administrative Funds $23,000.00 (1) Origination: Revolving and Emergency Loans $ 5,400.00 (2) Origination: Interest Subsidy Grants $ 1,800.00 (3) Post Installation Inspection $ 400.00 (4) Property Inspection $ 400.00 (5) Horne Energy Visit $ 15,0OO.00 Budget Notes: Funds to be transferred between Budget Categories in this Exhibit that do not change the Total Contract Amount must be approved in writing by the City of New Hope, If administrative funds are remaining when the total program capital has been utilized, the remaining administrative funds may be used for additional loan origination. 2. Administrative services performed by CEE will initially be funded from the "Administrative Funds" budget as stated above and paid in accordance with the following schedule. (1) Origination: Revolving and Emergency $550.00 per loan closed (2) Origination: Interest Subsidy $150.00 per grant closed (3) Post Installation Inspection $ 80.00 per inspection (4) Property Inspection $100.00 per inspection (5) Home Energy Visit $ 70.00 per visit 3. Servicing The City of New Hope will directly contract with a servicing company for the New Hope loans. 4. Marketing Marketing efforts will be supported by CEE and marketing costs are not included in the administrative budget. Hourly rates are inclusive of all overhead expenses and will be charged only for hours directly related to the labor of all program marketing, CEE will also be reimbursed by New Hope for any non - labor, out -of- pocket expenses relating to these services on a dollar - for- dollar basis. Exhibit B - New Hope Program Page Center for Energy and Environment