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101215 EDA
CITY OF NEW HOPE EDA MEETING City Hall, 4401 Xylon Avenue North October 12, 2015 EDA Meeting will commence upon adjournment of the City Council Meeting President Kathi Hemken Commissioner John Elder Commissioner Andy Hoffe Commissioner Eric Lammle Commissioner Jonathan London Call to order - EDA Meeting of October 12, 2015 2. RoU call 3. Approval of Minutes: e September 28, 2015 4. Resolution requesting that the City Council of the City of New Hope call for a public hearing on the modification of redevelopment project no.1 and the establishment of the Industrial Equities tax increment financing district 5. Resolution approving Purchase Agreement for the acquisition of 5407 Yukon Avenue North {improvement project no. 972} 6. Resolution approving Purchase Agreement for the acquisition of 6065 Louisiana Avenue North (improvement project no. 973) 7. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes September 28, 2015 Regular Meeting City Hall CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to order at 8:29 p.m. ROLL CALL Present: Kathi Hemken, President John Elder, Commissioner Andy Hoffe, Commissioner Jonathan London, Commissioner Absent: Eric Lammle, Commissioner Staff Present: Kirk McDonald, City Manager Aaron Chirpich, Community Development Specialist Tim Fournier, Police Chief Valerie Leone, City Clerk Chris Long, City Engineer Susan Rader, Director of Parks & Recreation Jeff Sargent, Director of Community Development Steve Sondrall, City Attorney APPROVAL OF Motion was made by Commissioner Hoffe, seconded by Commissioner MINUTES London, to approve the minutes of September 14, 2015. Voting in favor: Item 3 Hemken, Elder, Hoffe; Voting against: None; Absent: Lammle; Abstained: London. Motion carried. IMP. PROJECT 964 President Hemken introduced for discussion EDA Item 4, Resolution Item 4 approving the preliminary development agreement with Alatus, LLC (project no. 964). Mr. Jeff Sargent, director of community development, explained at the September 21 work session Council supported entering into a six-month exclusive negotiation period with Alatus, LLC, for potential development of the city -owned property at 8400 Bass Lake Road. He commented that if negotiations are successful a project could occur as early as spring of 2016. Mr. Kirk McDonald, city manager, stated after more planning takes place, a neighborhood meeting will be coordinated to seek neighborhood feedback on a proposal. RESOLUTION 2015-14 Commissioner Elder introduced the following resolution and moved its Item 4 adoption "RESOLUTION APPROVING THE PRELIMINARY DEVELOPMENT AGREEMENT WITH ALATUS, LLC (PROJECT NO. 964)." The motion for the adoption of the foregoing resolution was seconded by Commissioner London, and upon vote being taken thereon, the following EDA Meeting Page 1 September 28, 2015 voted in favor thereof; Hemken, Elder, Hoffe, London; and the following voted against the same: None; Abstained: None; Absent: Lammle; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. IMP. PROJECT 893 President Hemken introduced for discussion EDA Item 5, Resolution Item 5 Authorizing the Execution of a Second Amendment to Easements with Covenants and Restrictions Affecting Land between the EDA and Hy -Vee (Project No. 893). Mr. Jeff Sargent, director of community development, explained the city has an easement with covenants and restrictions (ECR) with Hy -Vee. He stated the owner of the New Hope Mall is negotiating the purchase of the North Memorial Clinic site (lot 3) from Hy -Vee, and has requested a second amendment to the ECR, as some of the requirements would not be applicable if Hy -Vee no longer retained ownership of Lot 3. The original ECR addresses an easement to connect Winnetka Avenue to Hy -Vee shopping center, and this language would be removed as it is not part of the current development. Such language would likely be a part of a future phase II development of City Center. Mr. Sargent stated the city received a letter from Hy -Vee showing their support of the proposed amendment. Mr. Sargent commented the city does not become involved with negotiations between private parties. Mr. Sargent noted the ECR is part of the development agreement between the EDA and Hy -Vee; therefore, any changes must be approved by the EDA. The amendment was prepared by Bob Deike, the city's redevelopment attorney, and has been recommended for approval by Ehlers. RESOLUTION 201545 Commissioner Elder introduced the following resolution 'and moved its Item 5 adoption "RESOLUTION AUTHORIZING THE EXECUTION OF A SECOND AMENDMENT TO EASEMENTS WITH COVENANTS AND RESTRICTIONS AFFECTING LAND BETWEEN THE EDA AND HY-VEE (PROJECT NO. 893)." The motion for the adoption of the foregoing resolution was seconded by Commissioner London, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, London, and the following voted against the same: None; Abstained: None; Absent: Lammle; whereupon the resolution was declared duly passed and adopted signed by the president which was attested to by the executive director. IMP. PROJECT 965 President Hemken introduced for discussion EDA Item 6, Resolution Item 6 approving contract with Nitti Rolloff Services, Inc. for demolition and site grading of 4415 Nevada Avenue North (improvement project no. 965). Mr. Aaron Chirpich, community development specialist, stated staff has solicited bids for the demolition and site grading at 4415 Nevada Avenue North. Three bids were received and the low bid was submitted by Nitti Rolloff Services, Inc. for $15,430. The city has used this company in the past and been pleased with their work. Funds are available in the EDA budget for the projects and will be reimbursed with CDBG funds. EDA Meeting Page 2 September 28, 2015 Mr. Chirpich noted the topography of the lot which is high on the south side and low on the north side. He stated the site will be backfilled to the existing grade, and contours will need to be developed to properly address drainage issues. Mr. Jeff Sargent, director of community development, pointed out the property is too narrow for two standard lots, and the city will seek 10 -foot lot - width variances through the Planning Commission. RESOLUTION 2015-16 Commissioner Elder introduced the following resolution and moved its Item 6 adoption "RESOLUTION APPROVING CONTRACT WITH NITTI ROLLOFF SERVICES, INC. FOR DEMOLITION AND SITE GRADING OF 4415 NEVADA AVENUE NORTH (IMPROVEMENT PROJECT NO. 965):' 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, London; and the following voted against the same: None; Abstained: None; Absent: Lammle; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director, ADJOURNMENT Motion was made by Commissioner London, seconded by Commissioner Elder, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 8:57 p.m. Respectfully submitted, 40 Valerie Leone, City Clerk EDA Meeting Page 3 September 28, 2015 EDA Request for Action Originating Department Approved for Agenda Agenda Section Community Development October 12, 2015 EDA Item No. 4 By: Jeff Sar ent, Director of CD By: Kirk McDonald, City Manager Resolution requesting that the City Council of the City of New Hope call for a public hearing on the modification of redevelopment project no. 1 and the establishment of the Industrial Equities tax increment financing district. Requested Action Staff requests the EDA approve the attached resolution calling for a public hearing on the modification of redevelopment project no. 1 and the establishment of the Industrial Equities tax increment financing district. Policy/Past Practice Policy requires that the City Council make the official call for a public hearing on any TIF modification. Background At the August 17 work session meeting, staff and Jason Aarsvold from Ehlers, identified the need to conduct a public hearing in support of the redevelopment efforts at the property located at 9449 Science Center Drive. Industrial Equities has recently purchased the vacant and distressed building located at 9449 Science Center Drive, and intends to redevelop the site into a 48,000 sq/ft multi -tenant industrial building. The'developer's site plan received final approval by the City Council on July 27th. The developer has requested $250,000 in TIF assistance to pay for demolition, abatement, and soil corrections on the site. Ehlers has run the preliminary TIF numbers for the project concept, and found that the request is reasonable. The County has decreased the value of the property to $400,000 since it has been vacant -for a few years and has determined that the highest and best use of the property is raw land for redevelopment. %sed. upon preliminary assumptions, the project would generate approximately $38,000 a year in TIF. Ten percertt Motion by / Second by ' To: 7 I:\RFA\COMM DMI)evelo ment\Q & R Call for Public Hearing Industrial Equities 10-12-15 EDA.doc Request for Action Page 2 October 12, 2015 would be available to the City to pay for administrative costs, and the balance (approximately $34,000) would be available to reimburse the developer. It would take approximately nine years to pay off the TU note. The district would be certified as an Economic Development District. Attached is a memo from Ehlers outlining the pro forma from Industrial Equities, with a recommendation to create the TIF district. The public hearing to consider this matter will be held on November 23, 2015. Staff recommends the EDA approve the resolution. Attachments o Resolution ® Ehlers Memo NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY CITY OF NEW HOPE HENNEPIN COUNTY, STATE OF MINNESOTA RESOLUTION NO. RESOLUTION REQUESTTNG THAT THE CITY COUNCIL OF THE CITY OF NEW HOPE CALL FOR A PUBLIC HEARING ON THE MODIFICATION OF REDEVELOPMENT PROJECT NO. I AND THE ESTABLISHMENT OF THE INDUSTRIAL EQUITIES TAX INCREMENT FINANCING DISTRICT. BE IT RESOLVED, by the Board of Commissioners (the "Board") of the New Hope Economic Development Authority, Minnesota (the "EDA") as follows: WHEREAS, the City Council (the "Council") of the City of New Hope, Minnesota (the "City") established Redevelopment Project No. 1 pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, inclusive, as amended, in an effort to encourage the development and redevelopment of certain designated areas within the City; and WHEREAS, the EDA is proposing the modification of Redevelopment Project No. 1 and the establishment of the Industrial Equities Tax Increment Financing District, pursuant to, and in accordance with, Minnesota Statutes, Sections 469.174 to 469.1794 and Sections 469.090 to 469.1082, inclusive, as amended; NOW, THEREFORE BE IT RESOLVED by the Board as follows: 1. The EDA hereby requests that the Council call for a public hearing on November 23, 2015 to consider the proposed adoption of the Modification to the Redevelopment Plan for Redevelopment Project No. 1 and the proposed adoption of the Tax Increment Financing Plan for the Industrial Equities Tax Increment Financing District (collectively, the "Plans") and cause notice of said public hearing to be given as required by law. 2. The EDA directs the Executive Director to transmit copies of the Plans to the Planning Commission of the City and requests the Planning Commission's written opinion indicating whether the proposed Plans are in accordance with the Comprehensive Plan of the City, prior to the date of the public hearing. 3. The Executive Director of the EDA is hereby directed to submit a copy of the Plans to the Council for its approval. 4. The EDA directs the Executive Director to transmit the Plans to the county and the school district in which the Industrial Equities Tax Increment Financing District is located not later than October 23, 2015. Staff and consultants are authorized and directed to take all steps necessary to prepare the Plan and documents and to undertake other actions necessary to bring the Plan before the Council. Approved by the Board on October 12, 2015. Kathi Hemken, President ATTEST: Kirk McDonald, Executive Director To: Jeff Sargent, Community Development Director From: Jason Aarsvold, Ehlers Date: October 7, 2015 Subject: Analysis of Request for Assistance — Industrial Equities: 9449 Science Center Drive (former Broadband Site) The City received a proposal tram Inaustrlal Equities to redevelop the property at 9449 Science Center Drive. The project includes demolition of the existing structure, environmental remediation, soil corrections, and construction of a new, 48,000 square foot offrcelwarehouse building. The project is expected to commence this fall and be completed in 2016. Because of the increased costs associated with redevelopment of the property, the developer is requesting $250,000 in Tax Increment Financing (TIF) assistance from the City. This memo is intended to review the need for TIF assistance based on our analysis of the developer's project budget and projections, generally known as a pro forma. Ehlers conducted a thorough review of the developer's budget and operating pro forma to ensure all development costs, anticipated revenues, and expenditures are represented appropriately. The table below depicts the proposed sources and uses for the project. SOURCES - - Developer Financing - 1st Mortgage 3,070,900 70.00% Developer Equity 1,316,100 30.00% TOTAL SOURCES_ 4,387,000 100.00% USES M. -A ,:.Qm, rte•, t Acquisition Costs 683,000 15.57%0 4.46 Construction Costs 3,164,000 72.12% 65.92 Professional Services 213,000 4.86% 4.44 Financing Costs 117,000 2.67% 2.44 Developer Fee 150,000 3.42% 3.13 TOTAL USES 4,387,000 91.40 Generally, this project meets the expectations of an office/warehouse project with regards to the financing structure, projected revenues, on-going operational costs and developer fee. Following are our findings relating to the analysis completed for the development: vwvw.ehiers-inc.com EHLERS Minnesota phone 651-697-8500 3060 Centre Pointe Drive LEASERS IN PUBLIC FINANCE CMoes also in Wisconsin and Illinois fax 651-697-6555 Roseville, Mtn! 55113-1122 toll free 800-552-1171 Jeff Sargent, Director of Community Development Analysis of Request For Assistance — Industrial Equities October 7, 2015 Page 2 The developer is proposing permanent financing for 70% of the project cots and will bring 30% in equity, or approximately $1.3 million. This financing structure is in line with typical industrial projects. • The total development costs for this project are approximately $4.39 million, or $91 per square foot. Based on our experience with similar projects, this is within the expected range. • The developer fee of $150,000 is 3.42 percent of total development costs. For a project of this nature, we would expect to see a developer fee between 3% and 5%, so the fee is commensurate with typical industry standards. • Proposed rents are $9.75 per square foot for office space and $4.75 per square foot for warehouse space. These rents are consistent with the surrounding market area. • The projected cash -on -cost return on investment in year three (3) is 5.5% without assistance and 6.28% with assistance. Industrial developers are typically seeking a cash -on -cast return of between 7% and 9%. Even with the requested assistance, this project still falls slightly below the typical industry threshold for desired return on investment. In addition to review of the project's pro forma, we also reviewed the proposed extraordinary costs associated with redevelopment of the property. This review is a way to further establish the need for assistance and ensure the developer will incur sufficient qualified costs eligible for TIF reimbursement. The total anticipated cost for demolition of the building, environmental remediation and site grading totals $252,923. These costs were confirmed based on a quote provided from a reputable contractor to ready the site for development. Recommendations Based on our review of the developer's pro forma and current market conditions, the proposed development may not reasonably be expected to occur solely through private investment within the reasonably near future. Due to the costs associated with redeveloping the property, this project is feasible only through assistance, in part, from City contributions. Furthermore, the requested amount of $250,000 is warranted by the actual anticipated qualified redevelopment costs that will be incurred and the fact that the anticipated return on investment is still below typical industry standards. The developer has indicated that they are accepting of this proposal and are willing to move forward based upon the TIF assistance. Please contact me at 651-697-8512 with any questions. EDA Request for Action Originating Department Approved for Agenda Agenda Section Community Development October 12, 2015 EDA Item No. By: Aaron Chirpich, CD Specialist By: Kirk McDonald, City Manager 5 Jeff Sargent, CD Director Resolution approving Purchase A reement for the acquisition of 5407 Yukon Avenue North (project no. 972) Requested Action Staff requests the EDA to authorize entering into a Purchase Agreement for the acquisition 5407 Yukon Avenue North, for $80,000 (purchase price) plus any associated fees. Policy/Past Practice In the past, the city has successfully acquired vacant and distressed properties as part of the city's scattered site housing program. Background The EDA has directed community development staff to actively pursue the acquisition of distressed single family homes as part of the city's scattered site housing program. In the past 12 months, the city has acquired four vacant single family homes as part of this program. Since the acquisition of these four units, staff has been researching and pursuing other available properties. 5407 Yukon Avenue North 5407 Yukon is a foreclosure that is located in the neighborhood just south of the Centra Homes site. The neighborhood is one of the oldest in New Hope where most homes were constructed in the early 50's. The typical homes in this area are very small with less than 600 square feet of living space on the main floor. 5407 Yukon is not exception to this rule. The house is actually the exact same floor plan as the home acquired by the city at 5431 Virginia Avenue. The home has not seen many upgrades since built and does not even have a garage. Staff feels that the best use of the home and site would be demolition to facilitate the construction of a new single family home. The lot is big enough to build the same type of home that is being built on the Virginia Avenue lot. Motion by Second by To: ego I:IRFAICOMM DEV\Deve10 mentlHau ' IQ —R 5407 Yukon Ave acquisition 10-12-15 Request for Action October 12, 2015 Page 2 The list price of the home is $73,000. Staff started by submitting a full price otter for the home one day after it hit the market. As expected, the home received a lot of interest from various investors and there were quickly multiple offers on the property. The seller asked all potential buyers to submit their best and final offers by October 7th. Staff responded by increasing the city's offer to $80,000. Funding Funding for the acquisition and all costs associated with demolition of this home will initially come from EDA reserves. The EDA will be reimbursed with CDBG grant funds for eligible expenses at a later date. Eligible expenses will include all project costs. Recommendation At the time of this report, staff has not confirmed that the seller has accepted the EDA's offer. Staff is seeking approval of the acquisition in order to move quickly towards the purchase should the seller accept the offer. Staff recommends the EDA approve the attached resolution prepared by the City Attorney and terms of the attached purchase agreement for the acquisition of 5407 Yukon Avenue North. Attachments • Resolution Project Budget • County Tax Information Location Map • Sample Lot Layout • Pictures Purchase Agreement CITY OF NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 15 - RESOLUTION APPROVING PURCHASE AGREEMENT FOR THE ACQUISITION OF 5407 YUKON AVENUE NORTH BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: WHEREAS, on September 22, 2014 the City Council adopted Resolution No. 14-126 at the City Council meeting authorizing City community development staff to actively pursue the acquisition of distressed, functionally obsolete single family homes for potential purchase by the Economic Development Authority in and for the City of New Hope, as part of the City's scattered site housing program; and WHEREAS, the City Council has directed City staff to negotiate for the terms most favorable to the City, and the execution of purchase agreements so as to secure purchase rights for these real properties, contingent on the review and approval of the Economic Development Authority in and for the City of New Hope to the terms of the purchase agreements; and WHEREAS, New Hope City staff have identified the opportunity to purchase certain real property located at 5407 Yukon Avenue North, New Hope, MN and legally described as: Lot 7, Block 6, Begin Addition, Hennepin County, Minnesota (the "Property") from The Secretary of Veterans Affairs; and WHEREAS, the Property is currently unoccupied; and WHEREAS, the house located on the Property was built in 1954 and has a functionally obsolete floor plan; and WHEREAS, City staff believes that the best use of the Property is demolition in order to maximize the tax base by making the lot available for the development of a new residential housing unit; and WHEREAS, the Property will be acquired using Economic Development Authority in and for the City of New Hope funds; and WHEREAS, it is in the best interest of the Economic Development Authority in and for the City of New Hope to purchase the Property from The Secretary of Veterans Affairs, in order to redevelop the Property in accordance with the City's scattered site housing program and policy; WHEREAS, the City staff is hereby seeking approval from the Economic Development Authority in and for the City of New Hope of the Purchase Agreement, subject to the review and approval by the City Attorney of proper title evidence and other terms relating to the closing on the sale of the Property. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: Attest: 1. That the above recitals are incorporated herein by reference. 2. It is in the best interest of the City to purchase the Property for redevelopment in accordance with the City's scattered site housing program and policy. 3. That the purchase of the Property by the Economic Development Authority in and for the City of New Hope from The Secretary of Veterans Affairs, for the sum of $80,000.00, with other terms and conditions as set forth in the Purchase Agreement attached hereto as Exhibit A, is approved subject to the review and approval by the City Attorney of proper title evidence and other terms relating to the closing on the sale of the Property. 4. That the payment of $1,000 earnest money to the listing agent, to be held in listing agent's trust account pending closing as set forth in the Purchase Agreement is approved. Said earnest money shall be applicable to the purchase price of the Property. 5. The City shall use due diligence for correcting the Property's blighted condition and conducting any necessary environmental cleanup of the Property to pursue this redevelopment purpose and return the Property to the tax roils for the benefit of all taxing jurisdictions. 6. The President and Executive Director and the New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional actions are necessary or desirable, to complete the purchase of the Property in accordance with the Purchase Agreement. Dated the day of October, 2015. Kirk McDonald, Executive Director Kathi Hemken, President P:1AttorneylSAS11 Client Filesl2 City of New Hope199-11392 Purchase of 5407 Yukon Ave. N. by EDAWesolution Approving Purchase of 5407 Yukon Avenue North.doex City of New Hope Single- Scattered Site Housing Program Total Project Cost and Total Funding Sources USES Amount CDBG Amount Acquisition 80,000 Demolition 15,000 Real estate taxes 2,400 Closing costs (purchase) 1,500 Legal fees 2,958 Asbestos abatement 1,500 Tree removal 3,000 Demo survey 650 Contingency 5,000 Closing costs for sale of lot 1,500 Total 113,508 SOURCES 5407 Yukon Avenue New Hope MN, 55428 Amount CDBG 58,508 EDA 55,000 Total 113,508 Sales Price "vacant lot" 55,000 Value Gap 513,508 5407 Yukon Avenue New Hope MN, 55428 Hennepin County GIS - Printable Map Page 1 of 1 Parcel 06-118-21-43-0026 A T -B: Abstract Map Scale: 1" 100 ft. N + ID: ! Print [late: 10/8/2015 NO mee� Wayne L Heinz ryTotalt $107,000 { Parcel 5407 Yukon Ave N Address: New Hope, MN 55428 i Property Residential Type: Home- Homestead stead: Parcel 0.23 acres Area: 10,145 sq ft Tax $2,487.52 Total: (Payable: 2015) Sale $125,350 Price: Sale 0612002 Date: Sale Warranty Deed Code: I This map is a compilation of data from various sources and is furnished "AS IS" with no i representation or warranty expressed or Implied, including fitness of any particular purpose, merchantability, or the accuracy and completeness of the information shown. COPYRIGHT ® HENNEPIN COUNTY 2015 ± https:llgis.hennepin.us/Propertylprintldefault.aspx?C=459533.2127221495,498873 7.34844... 10/8/2015 W PUIN A MOORE Alt, Al All lo, t FA F 11 PIP nor np, 14wo 9 ZA In -k v I W TA Ul mmob Aoki !wmq , om Aw■ Z- - ' :moi •;: 4'�} 4a • - 4, .Y .^ � s��;Y �G.F vh �� 5�+� •�rx 3 +..:_ fig . m OFFER SUMMARY WORKSHEET Agents •- This Offer Summary Wforitsheet must be presented with all offers. Agent ID # and Office ID S are required Items. MOST OFFERS ARE SUBMITTED ON A WEBSITE AND THS CONTACT INFORMATION IS COMMONLY REQUIRED IN ORDER TO SUBMIT THE OFFER CURRENTLY, OFFERS ARE BEING SUBMITTED WITHIN ONE (1 ) BUSINESS DAY Property Address: 540-1 i i(n+i fl, hi rJ Oily states Zip Code Buyer. Owner will occupy property Yes Money $ C3 No Closing Date_ �k 1 ta - f ! LL Earnest -11- Purchase Price $'ova � Mor�page Amount $ $ Dawn Payment Perceniege In Seller paid dosing costs$ Pre -approval letter attached Yes D No 0 Proof of funds attached, if cash Yes d No 0 Mortgage type Corte. 0 FHA O Rehab O Cash 01 Other 0 (specify) Is buyer using NSP funds Yes 0 No Is buyer a first time homebuyer Yes 0 No R COti NDSSIONS is there a selling agent bonus offered: Yes a No AN bonuses must be stipulated on PA to be valid. Is offer subject to an iron Requesting w*or an INSPECTIONS Yes O No G(, Yes fl No 1,/ IS Buyer a Veteran? Yes _ No NO State Pit IS NEEDED. THE SELL IER WILL NO"r SIGN ANY STATE FORMS CODE COMIPi..IANcEmACANT BUILDING REOISTRAYtOM CITY BUILDING CODE REQUIREMENTS: Agerrt to verify all city required work orders or vidations. Buyer is responsible for all dty code ! building violations, it applicable. AGENT INFORMATION (infommdon must be Filial in compfebel ) Agent Narne (print) ` ' 41 `�, -,-,k - 14 e'`"Av.- Agent MLS lt7* L 0 ?. 0p 111 Company Name 11, { wlt 'p -12L -t, e -o Office MLS 1100 ys Company Address _ ._'A P) 13e' - gvs ! S'S y Z J street My ap code Agent Cog Phone I Z V 8 Ile - Agent Fax --7b3 53-7- 3,7-t, AgentEmali ,a JJAwl�Y{a! Name of Primary Broker ;14 ., , r k Agent Signature ...0 - - VENDOR RESOURCE M A N A G E M E N T MULTIPLE OFFER DISCLOSURE FORM Current Date: 10/0512015 VRM Asset ID: 73172 Buyer's Name: Property Address: 5407 Yukon Ave N City, State, ZIP: New Hope, MN 55428 Attention Buyer: b We are involved in a multiple offer situation on the above referenced property. • All offers must be submitted in writing. No verbal offers will be accepted. • All offers must be delivered to the listing agent. The only acceptable form of offer submission is via the fakx or e-Mpji Usted beloW: Listing Agent/Broker: Agent Phone Number: 7$3-433-9133 Agent Fax Number.: Offer Submission e-mail: offers@oemurphy.com The Usting agent must receive your "BEST" offer before 11.00am on 10/07/2015 Purchaser: Purchaser: Date: S Date: OFFER SUMMARY WORKSHEET Agents -This Offer Summary Worksheet must be presented with all offers. Agent Ila # and Once ID # are required Items. MOST OFFERS ARE SUBMITTED ON A WEBSITE AND THIS CONTACT INFORMATION IS COMMONLY REQUIRED IN ORDER TO SUBMIT THE OFFER CURRENTLY, OFFERS ARE BEING SUBMITTED WITHIN ONE (t) BUSINESS DAY Property Address: smo hid ZY Bayer. - Buyer. Owner will occupy propertyf Yes 0 No Esrrood Morley - Closing Date Purchase Price $ Morlpage Amount $ Down Payment Percentage 1 Seller paid cW"Q coasts$ Pre -approval letter attached Yes 0 No a Proof of funds attachad, if cash Yes ® No D Mortgage type Is buyer using NSP irun& Is buyer a first time homebuyer Conv. 0 FMA 0 Rehab O Cash I' Other 0 (specify) Yes 0 No I( Yes 0 No R( COMMISSIONS Is thence a selling agent bonus offered: Yes 0 No All bonuses rnust be stipulated on PA to be valid Is after subject to an inspection Requesting caster on INSPECTIONS Yes © Na 3(, Yes 0 No �J IS Buyer a Veteran? Yes _ No NO Stade PA IS NEEDED. THE GELLED WILL NOT SIGN ANY STATE DORMS. CODE COMPLIANCEBNACANT BUIlLI)ING REGISTRATION CITY BUILDING CODE REQUIREMENTS: Agent to verify all city required work ceders or violations. Buyer N responsible for all city code ! building violations, if applicable. AGENT INFORMATION (Infon mtlon nwst be filled in completely) Agent Name (ISM) . &L4= - k . 1� A-" .,_.,__... Agent MLS ID# j0 UO4 1 1 'i - any New �- � co • Office MLS 100 -_ Y—V 3 Company Address i� a -o -p r kmkt U # Jr?Z, l ticr S"sy z4 CRY 23P code Agent Cell Phone ! 2- - ! - 2- ! Agent Fax -76 S-3-7 32-7-4, Agent Ercall ++" a wk►- ca. l + C o . C.a r� Name of Primary y Broker -,�� Agent mature Buyers Address k 41 rl44.,Jr M- 0 R Buyers Title Company Address T7 10 f ; • Closers Name _ Closers Contact W Z - f 6162- 7t -� - ` 2-q w jSjl Closers Email j , A �V P V SPI,// SAW Seller requests that buyer use buyer choice closer and will not pay any buyer title costs or fees. Seller will not sign any state contracts, addendums, disclosures or forms. A state PA is not needed and will not be signed by the seller. Seller will de -winterize for buyer inspection if no repairs are needed. If there are any repairs needed to turn on utilities the seller will NOT make the repairs. The property is being sold strictly AS IS, Where Is. STATE PA IS NOT NEEDED AND WILL NOT BE SIGNED BY THE SELLER PLEASE ANSWER YES OR NO TO ALL - T1113 !S NEEDED TO SUBMIT OFFElet11111 VA EUGIBIL17Y Any person at any time obtained or assumed the payment of any loan made or held by VA or guaranteed or insured by VA under chapter 37, title 38, U.S. code? YES ! F7® Any person who has been employed by the service provider or any other entity under common ownership with the service provider within the last 6 months? * YES / Any person who at any time was the owner of the property? * YDS / IV0 Any person who previously purchased a property from VA? * YES 1 No An officer, employee, director or shareholder of VRIVI or its affiliated companies? * YESM 0 Any person deriving primary means of financial support from a VRM or affiliate employee or close relative? * YEAS �No Any agents, brokers, appraisers, attorneys, trustees, employee of representatives and vendors (including property inspection, property preservation and title companies) of VRM or affiliated companies? * YES / Mo Is buyer a veteran? YES / (!EO) JLfR1iNNr711i;��F' t+i`�r:rr'tIC�S °lid:�t�:: - .E OEC t998 ivw r v�r� WHICH WILL NOTE USED. •� ••,y ,�a� NOTICE OF POSSIBLE LEAD-BASED PAINT AND/OR LEAD-BASED PAINT HAZARDS 1. DATE PREPARED I 2. PAGE NO. 3. MOPERTY IDENTIFIER PAGE I DE ma 73172 4. PROPERTY ADUFFS5 (Include No- Sired or Rurai Route, City arP,O., Stale and 2IP Coda) 5407 Yukon Ave N. New Hope, MN 55428 5- DISCLOURES AND GERIFICATIONS A- LEAD WARNING STATEMENT Every purser of any interest In residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of'devefoping lead poisoning, lead poisoning in young children may produce permanent neurological damage, including learning disabilifies, reduced intelligence quotient, behavioral problems, and unpaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller's possession and notify the buyer of any known lead-based paint hazards. A risk assessment or Inspection Is recommended prior to purchase. S. Seller's Disclosure (Initial Items 131 or 82 and 133 or 134, you may attec h additional sheets If needed for 81 or 133) 1. The following known lead-based paint and/or lead-based paint hazards are present in the housing: OR 2. VA has no knowledge of lead-based paint hazards in the housing. AND 3. VA has provided the purchaser with all available records and reports pertaining to lead-based paint and/or leads -based paint hazards in the housing; i.e., the following: OR 4. VA has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing. C. PURCHASER'S ACKNOWLEDGEMENT (The purchaser(s) must initial item C1 or C2) The purchaser(s) of the property identified in Item 4 above acknoMedge(s) that he/she/they hasihave received all of the information luted above and the lead hazard information pamphlet *Protect Your Family From Lead In Your Horne," EPA 747-K-94-001, and certify that: 1. H"hetthey hasihave received a 10 -day opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards (unless the parties have Mutually agreed to a differerd period time), before becoming obligated under the contract to purchase the housing. The 10 -day period expired o 2He/sheRhey has/have been informed of the 10 -day opportunity to conduct a risk assessment or inspecti for the presence of lead-based paint and/or lead-based paint hazards and choose to waive it. O. AGENTS ACKNOWLEDGEMENT (initial and complete items 8A and 813 below) I am aware of my duty under 42 U.S.C. 4852d to ensure compliance with the requirements of Title K. CERTIFICATION OF ACCURACY The following parties have reviewed the information above and certify, to the treat of their knowledge, diad the information provided by the signatory is true and accurate. EA. SIG PURCHASER ea. IlA SIGNED 7A. SIGNA OF CO -PURCHASER 7e, DATE SIGNED HB. 1E SI 9A. SIGNATURE pF REAL TA E BROK 8 RS 9B. DA D- $A. SIGNA RE ESTATE AciEN7 AUTHORIt,ED17EPRESENTATIVE lak Sl"Tuf SECRETARY AFFAIRS OR DESIGNEE vw � 108. DATE SIGNED OEC t998 ivw r v�r� WHICH WILL NOTE USED. •� ••,y ,�a� 11S. Department of Veterans Affairs Radon Gas and Mold Notice And Release Agreement Property Loan# 3535605686D2 REO ID#: -73"172 — Property address. Address, W7 Yukon Ave N City:_ New Hoge _ State: MN Zip: 55428 PURCHASERS ARE HEREBY NOTIFIED AND UNDERSTAND THAT RADON GAS AND SOME .MOLDS HAVE THE POTENTIAL TO CAUSE SERIOUS HEALTH PROBLEMS. Purchaser acknowledges and accepts that the VA -owned property described above (the "Property") is being offered for sale "AS IS" with no representations as to the condition of the Property. The Secretary of the U.S. Department of Veterans Affairs, his/her officers. employees, agents. successors and assigns (the "Seller") and Vendor Resource Management, an independent management and marketing contractor to the Seller, its officers_ employees, agents. successors and assigns (the "Agent") have no knowledge of radon or mold in, on, or around the Property other than what may have already been described on the web site of the Seller or Agent or otherwise made available to Purchaser by the Seller or Agent. Radon is an invisible and odorless gaseous radioactive element. Mold is a general term for visible growth of fungus, whether it is visible directly or is visible when barriers, such as building components (for example. walls) or furnishings (for example. carpets), are removed. Purchaser represents and warrants that Purchaser has not relied on the accuracy or completeness of any representations that have been made by the Seller and/or Agent as to the presence: of radon or mold and that the Purchaser has not relied on the Seller's or Agent's failure to provide information regarding the presence or effects of any radon or mold found on the Property. Real Estate Brokers and Agents are not generally qualified advise purchasers on radon or mold treatment or its health and safety risks. PURCHASERS ARE ENCOURAQED TO OBTAIN THE SERVICES OF A OUALIFIED AND P SS Q TO COND C'T INSPECTION T5 RLGAH2jLqG RADON AND MOLD PRIOR TO CLOSING. Purchasers are hereby notified and agree that they are solely responsible for any required and remediation and/or resulting damages, including, but 1101 limited to, any effects on health. due to radon or mold in, on or around the property. In consideration of the sale of the Property to the undersigned Purchaser. Purchaser does hereby release, indemnify, hold harmless and forever discharge the Seller, as owner of the Property and separately. Agent, as the independent contractor responsible for maintaining and marketing the Property, and its officers. employees, agents, successors and assigns. from any and all claims, liabilities, or causes of action of any kind that the Purchaser may now have or at any time in the future may have against the Seller and/or Agent resulting from the presence of radon or mold in, on or around the Property. Purchaser has been given the opportunity to review this Release Agreement with Purchaser's attorney or other representatives of Purchaser are choosing, and hereby acknowledge reading and understanding this Release. Purchaser also understands that the promises, representations and warranties made by Purchaser in this Release are a material inducement for Seller entering into the contract to sell the Property to Purchaser. AJ Qat is sC J day of O ct: 20 15-- l Purchaser Signature Purchaser Signature K l ILK Mt- OONALA t=_e-r-1 Purchaser Printed /dame Purchaser Printed Nance ADDENDUM TO PURCHASE AGREEMENT Thls Corm aWrowd by the Minnesota Association of REALMRV, which disdafms any ((ability arising out of use or misuse of Us form. ® 2011 Minnesota Association of RE=ALTORS°, Edina, MN 1. Date 10/02/15 2. Page 1 3. Addendum to Purchase Agreement between parties, dated October 2nd 120 15 , pertaining to the 4. purchase and sale of the property at 5407 Xbkon Avenue N. 5. Starr Ekwe, AN 55428 6. In the event of a conflict between this Addendum and any other provision of the Purchase Agreement, the language 7. in this Addendum shall govern. 8. The Purchase Agreement is contingent on the following: 9. (1) Review and approval of the germs of the Purchase Agreement by the 10. New Hope City Councils 11. and 12. (2) An acceptable environmental review of the Property to be performed 13. by Hennepin County. 14. 15. 16. If eit=her of the above contingencies are not met, Buyer may declare 17 this Purchase Agreement cancelled by written notice to Seller, or licensee representing or assisting Seller, in which case this Purchase 18. Agreement is cancelled. If Buyer declares this Purchase Agreement 19. cancelled due to the failure of one of the above contingencies, Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement 20- confirming said cancellation and directing all earnest money paid 21. hereunder to be refunded to Buyer. 22. 23, 24, 25. 26. 27. 28. 29. 30. 31.E (seller) (gate) (Buyer) (DWe) 32. (Baiter) 33. 34. MN -APA (8111) (Borer) THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYERS AND SELLERS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL, pate) October 2, 2015 To Whom It May Concern, The City of New Hope has been asked to provide verification of funds in the amount of $73,000 plus any additional fees for the purchase of 5407 Yukon Avenue North, New Hope MN, 55428. I herby certify that the City of New Hope has the necessary cash resources available to complete the transaction proposed in the purchase agreement dated 10-2-15, submitted by the City of New Hope for the purchase of 5407 Yukon Avenue North. CITY OF NEW HOPE By: , W ��u Kirk McDonald Its City Manager STATE OF MINNESOTA } } ss. COUNTY OF HENNEPIN } The foregoing was acknowledged before me this 2nd day of October, 2015, by Kirk McDonald, the City Manager, respectively, of the City of New Hope, a Minnesota municipal corporation, on behalf of said municipal corporation. Notary Public i m` EMILY KATE BECKER Notary Public State of Minnesota �Y Commission Expires JanuCtty 31, 2020 CITY OF NEW HOPE 4401 Xylon Avenue North + New Hope, Minnesota 55428-4$98 + www. ci.new-hope.mn.us City Hall: 7'63-531-5]00 + Police (non -emergency): 763-531-5170 + Public Works: 763-592-6777 City Hall Fax: 763-531-5136 # Police Fax: 763-531-5174 + Public Works Fax: 763-592-6776 EDA Request for Action Originating Department Approved for Agenda Agenda Section Community Development October 12, 2015 EDA Item No. By: Aaron Chirpich, CD Specialist By: Kirk McDonald, City Manager 6 Jeff Sargent, CD Director Resolution approving Purchase Agreement for the acquisition 6065 Louisiana Avenue North (project no. 973) Requested Action Staff requests the EDA to authorize entering into a Purchase Agreement for the acquisition 6065 Louisiana Avenue North, for $130,000 (purchase price) plus any associated fees. Policy/Past Practice In the past the city has successfully acquired vacant and distressed properties as part of the city's scattered site housing program. Background The EDA has directed community development staff to actively pursue the acquisition of distressed single family homes as part of the city's scattered site housing program. In the past 12 months, the city has acquired four vacant single family homes as part of this program. Since the acquisition of these four units, staff has been researching and pursuing other available properties. 6065 Louisiana Avenue North Staff has been watching 6065 Louisiana Avenue for over five months. The property is a foreclosure that hit the market in late March with an asking price of $185,000. Staff was interested in the opportunity, but felt that the list price was too high to consider making an offer. Staff hoped that the home would sit for awhile and the price would come down. Instead of sitting with no offers, the house received a lot of interest from buyers and was under contract shortly after hitting the market. This surprised staff because of the amount of work needed to be done to the home when compared to the list price. Recently, the property resurfaced on the MLS with a lower list price of $149,900. Staff contacted the listing agent to discuss the property and ask why the home had not sold. Staff found out that the home had failed to close with four different bu ers over a five month period. The listing agent indicated that the primary reason Motion by Second by L-XRFA\COMM DEV\Develo ment\Hous' IQ—R 6065 Louisiana Ave a uisition 10-12-15 Request for Action October 12, 2015 Page 2 the sales were falling through was due to the extremely poor condition of the home and high cost estimates for repairs. The home is very large with 3,350 finished square feet. The city's general inspector has identified several code deficiencies in the home as well as unpermitted improvements and additions. The point of sale escrow amount has been set at $20,285. The lot at 6065 Louisiana is large enough to subdivide and create two standard R-1 single family lots. Staff feels that the best use of the property is demolition in order to maximize tax base with the development of two new detached single family homes. The current zoning of the property is R-4 High Density Residential. Therefore, the property will have to be rezoned to achieve this goal. Funding Funding for the acquisition and all costs associated with demolition of this home will initially come from EDA reserves. The EDA will be reimbursed with CDBG grant funds for eligible expenses at a later date. Eligible expenses will include all project costs. Recommendation At the time of this report, staff has not confirmed that the seller has accepted the city's offer. Staff is seeking approval of the acquisition in order to move quickly towards the purchase should the seller accept the offer. Staff recommends the EDA approve the attached resolution prepared by the City Attorney and terms of the attached purchase agreement for the acquisition of 6065 Louisiana Avenue North. Attachments • Resolution • Project Budget County Tax Information • Location Map • Sample Lot Layout * Purchase Agreement CITY OF NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 15 RESOLUTION APPROVING PURCHASE AGREEMENT FOR THE ACQUISITION OF 6065 LOUISIANA AVENUE NORTH BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: WHEREAS, on September 22, 2014 the City Council adopted Resolution No. 14-126 at the City Council meeting authorizing City community development staff to actively pursue the acquisition of distressed, functionally obsolete single family homes for potential purchase by the Economic Development Authority in and for the City of New Hope, as part of the City's scattered site housing program; and WHEREAS, the City Council has directed City staff to negotiate for the terms most favorable to the City, and the execution of purchase agreements so as to secure purchase rights for these real properties, contingent on the review and approval of the Economic Development Authority in and for the City of New Hope to the terms of the purchase agreements; and WHEREAS, New Hope City staff have identified the opportunity to purchase certain real property located at 6065 Louisiana Avenue North, New Hope, MN and legally described as: n 150 ft of a 200 ft of that part of ne 114 of nw 114 lying s of a line desc as fol com at a pt in n line of ne 114 dis 644 5110 ft e from nw cor thereof th swly at an angle to the rt of 104 deg 40 min a dis of 289 8/10 ft to actual pt of beg of line to be desc th w to a pt in ctr line of Old Jefferson Hwy dis 275 61/100 ft rely from n line of sec, Hennepin County, Minnesota (the "Property") from The Federal National Mortgage Association; and WHEREAS, the Property is currently unoccupied; and WHEREAS, the house located on the Property was built in 1953 and has a functionally obsolete floor plan; and WHEREAS, City staff believes that the best use of the Property is demolition in order to maximize the tax base through splitting the Property into two separate lots and making them available for the development of two new residential housing units; and WHEREAS, the Property will be acquired using Economic Development Authority in and for the City of New Hope funds; and WHEREAS, it is in the best interest of the Economic Development Authority in and for the City of New Hope to purchase the Property from The Federal National Mortgage Association, in order to redevelop the Property in accordance with the City's scattered site housing program and policy; WHEREAS, the City staff is hereby seeking approval from the Economic Development Authority in and for the City of New Hope of the Purchase Agreement, subject to the review and approval by the City Attorney of proper title evidence and other terms relating to the closing on the sale of the Property. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: Attest: 1. That the above recitals are incorporated herein by reference. 2. It is in the best interest of the City to purchase the Property for redevelopment in accordance with the City's scattered site housing program and policy. 3. That the purchase of the Property by the Economic Development Authority in and for the City of New Hope from The Federal National Mortgage Association, for the sum of $130,000.00, with other terms and conditions as set forth in the Purchase Agreement attached hereto as Exhibit A, is approved subject to the review and approval by the City Attorney of proper title evidence and other terms relating to the closing on the sale of the Property. 4. That the payment of $1,000 earnest money to the listing agent, to be held in listing agent's trust account pending closing as set forth in the Purchase Agreement is approved. Said earnest money shall be applicable to the purchase price of the Property. 5. The City shall use due diligence for correcting the Property's blighted condition and conducting any necessary environmental cleanup of the Property to pursue this redevelopment purpose and return the Property to the tax rolls for the benefit of all taxing jurisdictions. 6. The President and Executive Director and the New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional actions are necessary or desirable, to complete the purchase of the Property in accordance with the Purchase Agreement. Dated the day of October, 2015. Kirk McDonald, Executive Director Kathi Hemken, President MAttorneylSAS11 Client Filesl2 City of New Hope199-11391 Purchase of 6065 Louisiana Ave. N. by EAA\Resolution Approving Purchase of 6065 Louisiana Avenue North.dom City of New Hope— Scattered Site Housing Program Total Project Cost and Total Funding Sources USES mount Acquisition 125,000 Demolition 25,000 Real Estate Taxes 1,500 Asbestos Abatement 3,500 Legal fees (purchase) 2,500 Lot Split Survey 1,700 Closing, Recording Fees (purchase) 1,500 Legal 1,500 Tree Removal 6,500 Contingency 5,000 Demolition Survey 650 Closing costs lot sale(s) 1,500 Total 175,850 SOURCES Amount C DBG 75,850 EDA 100,000 Total 175,850 Anticipated Sales Price "2 vacant lots" 100,000 Anticipated Value Gap 75,850 6065 Louisiana Ave North New Hope MN, 55428 Hennepin County GIS - Printable Map Page 1 of 1 A T-13: Abstract Market ANA&I Parcel 05-118-21-21-0017 { ID: $2,996.18 E Owner Federal Natl Mortgage Assoc Sale r Parcel 6065 Louisiana Ave N Address: New Hope, MN 55428 Property Residential Type: Home- Warranty Deed Code: Homestead stead: Parcel 0.69 acres Area: 30,000 sq ft A T-13: Abstract Market $175,000 Total: Tax $2,996.18 Total: (Payable: 2015) Sale $92,197 Price: Sale 06/1990 Date: Sale Warranty Deed Code: Map Scale: 1" - 50 ft. Print Date: 10/8/2015 This map is a compilation of data from various sources and is furnished "AS IS" with no representation or warranty expressed or implied, including fitness of any particular purpose, merchantability, or the accuracy and completeness of the information shown. COPYRIGHT o HENNEPIN COUNTY 2015 i https:I/gis.hennepin.us/Property/print/default. aspx?C=470 819.91520000016,4990205.8549... 10/8/2015 1. jL-el .# - tea. -£.a I - rt •;.i � "!.f _ -- VWM -1 qW . - �, 'If ° i LOUISIANA A4j �;m i i is R4 IL I FA t - '� iPr -J4ry ILI ,rr,r s,. Y� WO W L%A' Jdw Date: ' 2 OFFER COVER FORM PRINT CLE,4RLY1 EMAIL all offers to address in Agent Remarks! Property Address: � 0 4 .5-i�.a-.. av,- n - Buyer's Agent Name: l�l��f AGENT ML.S ID: Jr4 0 y 7 `7 L Buyer's Agea# Firm: f ,� Firm Address: CPTY _Y141'r- - - _Ziff'-.5gq zy Office Phone: -763 -53-7 -7-►vm Office Fax: -7(e-3 Cell Phone- Z - S 1 � - I1 0-0 ** Email: �o� y �+a+��v� o. k[ Co . C'�tltiw (required) COUNTER OFFERS LLANDJCONTRACTS WELL BE SENT VIA EMAIL �/ BUYER Name: ry'1r f t�4Aw- I`r'�j E. 0 -A - T T (as it appears on contract) r **BUYER Type (check one): / Investor Owner Occupant (required) **'IF PURCHASING A FANNIE MAE PROPERTY, INDICATE HERE IF BUYER .HAS PREVIOUSLY PURCHASED A FANNIE MAE PROPERTY (check one): YES NO 11f130 0:4 zaa- ! Phone: Email: OFFER SUMMARYSECTION 1, 11 -it, -r S' Purchase Price: $ Q; ey-o Closing Date: ft- Multiple OITERS YES NO ( Phase adkaawledge if you are aware arMuWple Offers) cY� Earnest Morley $ I PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORS®, which disclaims any liability arising out of use or misuse of this form. O 2015 Minnesota Association of REALTORS®, Edina, MN 1. Date 10/02/2015 2. Page 1 of 11 4. 5. Buyer's earnest money in the amount of MkC 6. Dollars ($ _1 ---- ) 7. shall be delivered to listing broker no later than two (2) Business Days after Final Acceptance Date of this Purchase 8. Agreement. Buyer and Seller agree that listing broker shall deposit any earnest money in the listing broker's trust 9. account within three (3) Business Days of receipt of the eamest money or Final Acceptance Date of this Purchase 10. Agreement, whichever is later. 11. Said earnest money is part payment for the purchase of the property located at 12, Street Address; 6065 Louisiana Avenue N. 13, City of New Hope , County of Hennepin 14, 15. 18. 17. 18. 19, 20. 21, 22, 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. State of Minnesota, legally described as 13NPLATTRDJ 05 118 21 N 150 FT OF 8 200 FT OF THAT PART OF N$ 1/4 OF NW 1/4 L-rING 8 OF A LINE DESC AS FOL COM AT A PT IN N LIXE OF NE 1/4 DIS 644 5/10 FT S FROM NW GOR THEREOF T$ SWLY'AT AN ANGLE TO T8 Said purchase shall include all improvements, fixtures, and appurtenances on the property, if any, including but not limited to, the following (collectively the "Property")., garden bulbs, plants, shrubs, tress, and lawn watering system; shed; storm sash, storm doors, screens and awnings; window shades, blinds; traverse, curtain, and drapery rods, valances, drapes, curtains, window coverings and treatments; towel rods; attached lighting and bulbs; fan fixtures; plumbing fixtures; garbage disposals; water softener, water treatment system; water heating systems, heating systems; air exchange system; radon mitigation system; sump pump; TV antenna/cable TV jacks and wiring/TV wall mounts; wall/ceiling-mounted speakers and mounts; carpeting; mirrors; garage door openers and all controls; smoke detectors; fireplace screens, door and heatilators; BUILT-INS.- dishwashers; refrigerators; wine/beverage refrigerators; trash compactors; ovens; cook -top stoves; warming drawers; microwave ovens; hood fans; shelving; work benches; intercoms; speakers; air conditioning equipment; electronic air filter; humidifier/dehumidifier; liquid fuel tanks (and controls); pool/spa equipment; propane tank (and controls); security system equipment; TV satellite dish; AND the following personal property shall be transferred with no additional monetary value, and free and clear of all liens and encumbrances: Notwithstanding the foregoing, leased fixtures are not included. Notwithstanding the foregoing, the following item(s) are excluded from the purchase: 0 b� 35. Seller has agreed to sail the Property to Buyer for the sum of ($ 36. h a �. 4~ ° Dollars, 37, which Buyer agrees to pay in the following manner: 38. 1. CASH of 100 percent (%) of the sale price, or more in Buyer's sole discretion, which includes the earnest 39. money; PLUS 40, 2. FINANCING of n percent (%) of the sale price, which will be the total amount secured against.1his 41, Property to fund this purchase. 42. Such financing shall be (check one) ❑ a first mortgage; ❑ a contract for deed; or ❑ a first mortgage with 43, subordinate financing, as described in the attached Addendum: 44. ❑ Conventional 0 FNA ❑ DVA ❑ Assumption ❑ Contract for Deed ❑ Other: _- ..._ -(Check ogre}-_ _ _-- - - - .---.................. - - 45. The date of closing shall be 03-t �.-� l,� _ , 20 1 MN:PA-1 (8115) `�. PURCHASE AGREEMENT 46. Page 2 Date 10/02/2015 47. property located at 6065 Louisiana Avenue N. New EMS mN 55428 - 48. SALE OF BUYER'S PROPERTY CONTINGENCY: This Purchase Agreement ❑ IS ® IS NOT subject to an ------(Chat* one) ------ 49. Addendum to Purchase Agreement. Sale of Buyer's Property Contingency. (If answer is IS, see attached Addendum.) 50. (If answer is IS NOT, the closing of Buyer's property, if any, may still affect Buyer's ability to obtain financing, if 51. financing is applicable.) 52. This Purchase Agreement ❑ IS ® IS NOT subject to cancellation of a previously written purchase agreement ------(Check 53. dated dated -- , 20 . (If answer is IS, said cancellation shall be obtained no later than 54: , 20 . If said cancellation is not obtained by said date, this Purchase Agreement 55. is canceled. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation 5& and directing all earnest money paid hereunder to be refunded to Buyer.) 57. Buyer has been made aware of the availability of Property inspections. Buyer ❑ Elects ICl Declines to have a ..----..• -(Checkane.}---...--..._ 58. Property inspection performed at Buyer's expense. 59. INSPECTION CONTINGENCY: This Purchase Agreement ❑ IS g) IS NOT subject to an Addendum to Purchase. --•-- •(Check one.}--.... 60. AgreementInspection Contingency. (If answer is IS, see attached Addendum.) 61. DEED/MARKETABLE TITLE: Upon performance by Buyer, Seller shall deliver a .(check one): 62. " Warranty Deed, ❑ Personal Representative's Deed, ❑ Contract for Deed, ❑ Trustee's Deed, or 63. ❑ Other: Deed joined in by spouse, if any, conveying marketable title, subject to 64. (a) building and zoning caws, ordinances, and state and federal regulations; 65. (b) restrictions relating to use or improvement of the Property without effective forfeiture provisions; 66. (c) reservation of any mineral rights by the State of Minnesota; 67. (d) utility and drainage easements which do not interfere with existing improvements; 68. (e) rights of tenants as follows (unless specified, not subject to tenancies):. 69. 70. (f) others (must be specified in writing): 71. 72. REAL ESTATE TAXES: Seller shall pay on the date of closing all real estate taxes due and payable in all prior years 73. including all penalties and interest. 74. Buyer shall pay xC PRORATED FROM DAY OF CLOSING ❑ 12ths OF ❑ ALL ❑ NO real estate tars bue ------------.----- ------ -------- ------------ ---- ---- ---- 75. and payable in the year 20 15 76. Seller shall pay ® PRORATED TO DAY OF CLOSING ❑ 121ths OF ❑ ALL [] NO real estate taxes due and ...... -•------------- _...._.,___--.---........... {Check one. ----------------- 77. payable in the year 20 15 . If the dosing date is changed, the real estate taxes paid shall, if prorated, be adjusted 78. to the new closing date. If the Property tax status is a part- or non -homestead classification in the year of closing, Seller 79. E] SHALL ❑ SHALL NOT pay the difference between the homestead and non -homestead. 80. Buyer shall pay real estate taxes due and payable in the year following closing and thereafter, the payment of which 81. is not otherwise herein provided. No representations are made concerning the amount of subsequent real estate taxes, 82. DEFERRED TAXES/SPECIAL ASSESSMENTS: 83. ❑ BUYER SHALL PAY ® SELLER SHALL PAY on date of closing any deferred real estate taxes (e.g., Green _•---------------------------- -(Check are.} ------•----•-----_------------ 84. Acres) or special assessments, payment of which is required as a result of the closing of this sale. 85. ❑ BUYER AND SELLER SHALE. PRORATE AS OF THE DATE OF CLOSING ® SELLER SHALL PAY ON ...._--.__ ..............- ------ .......---------...._-._.-.---------------.-_.._.-�..------(check one.}......__w_...__.. ..- `__- - ---- - - -- -- - - - 86. DATE OF CLOSING all installments of special assessments certified for payment, with the real estate taxes due and 87. payable in the year of closing. MN:PA-2 (8/15) 1 PURCHASE AGREEMENT 88. Page Date is/a2/2a�s 89. Property located at W. New-Ugpe UK 55426 90. ❑ BUYER SHALL ASSUME Q SELLER SHALL PAY on date of closing all other special assessments levied.as _......_............_------_---._(CY�etalcane}--...__......._.�..�---•-----....... 91. of the date of this Purchase Agreement. 92. ❑ BUYER SHALL ASSUME © SELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as .------------ !Check 93. of the date of this Purchase Agreement for improvements that have been ordered by any assessing authorities. (Sellers 94. provision for payment shall be by payment into escrow of two (2) times the estimated amount of the assessments 95. or less, as required by Buyer's lender.) 96. Buyer shall pay any unpaid special assessments payable in the year following closing and thereafter, the payment of 97. which is not otherwise'herein provided. 98. As of the date of this Purchase Agreement, Seller represents that Seiler ❑ HAS © HAS NOT received a notice 99. regarding any new improvement project from any assessing authorities, the costs of which project may be assessed 100. against the Property. Any such notice received by Seller after the date of this Purchase Agreement and before closing 101. shall be provided to Buyer immediately. If such notice is issued after the date of this Purchase Agreement and on 102, or before the date of closing, then the parties may agree in writing, on or before the date of closing, to pay, provide 103. for the payment of or assume the special assessments. In the absence of such agreement, either party may declare 104. this Purchase Agreement canceled by written notice to the other party, or licensee representing or assisting the other 105. party, in which case this Purchase Agreement is canceled. If either party declares this Purchase Agreement canceled, 106. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and 107. directing all earnest money paid hereunder to be refunded to Buyer. 108. POSSESSION: Seller shall deliver possession of the Property no later than ... instantly after dosing. 109. Selleragrees to remove ALL DEBRIS AND ALL PERSONAL PROPERTY NOT INCLUDED HEREIN from the Property 110. by possession date. 111.. LINKED DEVICES: Seller warrants that Seller shall permanently disconnect or discontinue Seller's access or service 112, to any device or system on or serving the property that is connected or controlled wirelessly, via Internet protocol ("IP") 113, to a router or gateway or directly to the cloud no later than delivery of possession as specified in this Purchase 114. Agreement. 115. PRORATIONS: All interest; unit owners' association dues; rents; and charges for city water, city sewer, electricity and 116. natural gas shall be prorated between the parties as of date of closing. Buyer shall pay Seller for remaining gallons of 117. fuel oil or liquid petroleum gas on the day of closing, at the rate of the last fill by Seller. 118. TITLE AND EXAMINATION; As quickly as reasonably possible after Final Acceptance Date of this Purchase Agreement: 119. (a) Seller shall deliver any abstract of title and a copy of any owner's Title Insurance policy for the Property, if 120. in Seller's possession or control, to Buyer or Buyer's designated title service provider. Any abstract of title or 121. owner's title insurance policy provided shall be immediately returned to Seller, or licensee representing or 122. assisting Seiler, upon cancellation of this Purchase Agreement; and 123. (b) Buyer shall obtain the title services determined necessary or desirable by Buyer or Buyer's lender, including 124. but not limited to title searches, title examinations, abstracting, a title insurance commitment or an attoradi's 125, title opinion at Buyer's selection and cost and provide a copy to Seiler. 126. Seller shall use Seller's best efforts to provide marketable title by the date of closing. Seller agrees to pay all costs 127. and fees necessary to convey marketable title including obtaining and recording all required documents, subject to the 126. following: 129. In the event Seller has not provided marketable title by the date of closing, Seller shalt have an additional 30 dayd to 130. make title marketable, or in the alternative, Buyer may waive title defects by written notice to Seller. In addition to 131. the 30 -day extension, Buyer and Seller may, by mutual agreement, further extend the closing date. Lacking such 132. extension, either party may declare this Purchase Agreement canceled by written notice to the other party, or 133. licensee representing or assisting the other party, 1n which. case this Purchase Agreement is canceled. #f either, 134, party declares this Purchase Agreement canceled, Buyer and Seller shall immediately sign a tancellatrori:of 135. Purchase Agreement confirming said cancellation and directing all earnest money paid hereunder to be refunded 136. to Buyer. WPA-3 (8/15) PURCHASE AGREEMENT 137. Page Date 1 /02/2015 138. Property located at 6065 Louisiana Avenue N. TT New Hope HN 55428 139. SUBDIVISION OF LAND, BOUNDARIES, AND ACCESS: If this sale constitutes or requires a subdivision of land 1413. owned by Seller, Seiler shall pay all subdivision expenses and obtain all necessary governmental approvals. teller 141. warrants that the legal description of the real property to be conveyed has been or shall be approved for recording as 142. of the date of closing. Seller warrants that the buildings are or shall be constructed entirely within the boundary (Ines 143. of the Property. Seller warrants that there is a right of access to the Property from a public right-of-way. 144. MECHANIC'S LIENS: Seller warrants that prior to the closing, payment in full will have been made for all labor, materials, 145. machinery, fixtures or tools furnished within the 120 days immediately preceding the closing in connection with 146. construction, alteration or repair of any structure on, or improvement to, the Property. 147. NOTICES: Seller warrarits that Seller has not received any notice from any governmental authority as to condemnation 148. proceedings, or violation of any law, ordinance or regulation. If the Property is subject to restrictive covenants, Seller 149. warrants that Seller has not received any notice from any person or authority as to a breach of the covenants. Any 150, such notices received by Seiler shall be provided to Buyer immediately. 151. DIMENSIONS: Buyer acknowledges any dimensions, square footage or acreage of land or improvements provided 152, by Seller, third party, or broker representing or assisting Seller are approximate. Buyer shall verify the accuracy of 153. information to Buyer's satisfaction, If material, at Buyer's sole cost and expense. 154. ACCESS AGREEMENT: Seller agrees to allow reasonable access to the Property for performance of any surveys or 155. inspections agreed to herein. 156. RISK OF LOSS: If there is any loss or damage to the Property between the date hereof and the date of closing for any 157. reason, including fire, vandalism, flood, earthquake or act of God, the risk of loss shall be on Seller. If the Property 158. is destroyedor substantially damaged before the closing date, this Purchase Agreement is canceled, at Buyer's option, 159. by written notice to Seller or licensee representing or assisting Seller. If Buyer cancels this Purchase Agreement, 160. Buyer and Seiler shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and 161. directing all earnest money paid hereunder to be refunded to Buyer. 162. TIME OF ESSENCE: Time is of the essence in this Purchase Agreement. 163. CALCULATION OF DAYS: Any calculation of days begins on the first day (calendar or Business Days as specified) 164. following the occurrence of the event specified and includes subsequent days (calendar or Business Days as specified) 165. ending at 11:59 P.M. on the last day. 166. BUSINESS DAYS: "Business Days" are days which are not Saturdays, Sundays or state or federal holidays unless 167. stated elsewhere by the parties in writing. 168. RELEASE OF EARNEST MONEY -Buyer and Seller agree that the listing broker shall release earnest money from the 1% listing broker's trust account: 1) at or upon the successful closing of the Property, 2) pursuant to written agreement 170. between the parties, which may be reflected in a Cancellation of Purchase Agreement executed by both Buyer and 171. Seller; 3) upon receipt of an affidavit of a cancellation under MN Statute 559.217; or 4) upon receipt of a court order. 172. DEFAULT, If Buyer defaults in any of the agreements herein, Seller may cancel this Purchase Agreement, and any 173. payments made hereunder, including earnest money, shall be retained by Seller as liquidated damages and Buyer' 174. and Seller shall affirm the same by a written cancellation agreement. 175. If Buyer defaults in any of the agreements hereunder, Seller may terminate this Purchase Agreement .under the 176. provisions of either MN Statute 559.21 or MN Statute 559.217, whichever is applicable. If either Buyer or Seller defaults 177. in any of the agreements hereunder or there exists an unfulfilled condition after the date specified for fuiflllment, elther 178. party may cancel this Purchase Agreement under MN Statute 555.217, Subd. 3. Whenever it is provided herein that 179. this Purchase Agreement is canceled, said language shall be deemed a provision authorizing a Declaratory Cancellation 180. under MN Statute 559.217, Subd. 4. 181. It this Purchase Agreement is not canceled or terminated as provided hereunder, Buyer or Seller may seek",a0rual 182. damages for breach of this Purchase Agreement or specific performance of this Purchase Agreement; and,. 0 to 183, specific performance, such action must be commenced within six (6) months after such right of action arises. MNTA•4 (8/15) +•'ylL1� PURCHASE AGREEMENT 184. Page 5 Date 10/02/2015 185. Property located at 6065 Louisiana Avenue X. Now Nope HN 55428 186• BUYER HAS THE RIGHT TO A WALK-THROUGH REVIEW OF THE PROPERTY PRIOR TO CLOSING TO S 187, ESTABLISH THAT THE PROPERTY IS IN SUBSTANTIALLY THE SAME CONDITION AS OF THE DATE OF 188. THIS PURCHASE AGREEMENT 189, BUYER HAS RECEIVED A (check any that apply): ❑ DISCLOSURE STATEMENT.- SELLER'S PROPERTY OR A 190. ❑ DISCLOSURE STATEMENT'SELLER'S DISCLOSURE ALTERNATIVES FORM. 191. DESCRIPTION OF PROPERTY CONDITION: See Disclosure Statement: Seller's Property or Disclosure Statement: 192. Seller's Disclosure Alternatives for description of disclosure responsibilities and limitations, if any, 193. BUYER HAS RECEIVED THE INSPECTION REPORTS, IF REQUIRED BY MUNICIPALITY. 194, BUYER IS NOT RELYING ON ANY ORAL REPRESENTATIONS REGARDING THE CONDITION OFTHE PROPERTY 195. AND ITS CONTENTS. 198. (Check appropriate boxes.) 197. SELLER WARRANTS THAT THE PROPERTY IS EITHER DIRECTLY OR INDIRECTLY CONNECTED TO, 198. CITY SEWER ®YES ❑ NO / CITY WATER DYES [] NO 199. SUBSURFACE SEWAGETREATMIrIVT SYSTEM 200. SELLER [] DOES ® DOES NOT KNOW OF A SUBSURFACE SEWAGE TREATMENT SYSTEM.ON OR --•----•-(CheAk one.}---..---....... 201. SERVING THE PROPERTY. (If answer is DOES, and the system does not require a state permit, see Disclosurd; 202, Statement. Subsurface Sewage Treatment System.) 203. PRIVATE WELL 204. SELLER ❑ DOES ® DOES NOT KNOW OF A WELL ON OR SERVING THE PROPERTY. 205. (if answer is DOES and well is located on the Property, see Disclosure Statement: Well.) 205. THIS PURCHASE AGREEMENT ❑ IS ® IS NOT SUBJECT TO AN ADDENDUM TO PURCHASE AGREEMENT.• -.-____(Chack one.} , 207. SUBSURFACE SEWAGE TREATMENT SYSTEM AND WELL INSPECTION CONTINGENCY. 208. (if answer is IS, see attached Addendum.) 209. IF A WELL OR SUBSURFACE SEWAGE TREATMENT SYSTEM EXISTS ON THE PROPERTY, BUYER -HAS 210, RECEIVED A DISCLOSURE STATEMENT: WELL ANDIOR A DISCLOSURE STATEMENT.• SUBSURFACE SEWAGE' 211. TREATMENT SYSTEM. 212, NOTICE REGARDING PREDATORY OFFENDER INFORMATION: Information regarding the predatory offender 213. registry and persons registered with the predatory offender registry under MN Statute 243.166 maybe obtained 214. by contacting the local law enforcement offices In the community where the Property Is located or the Minnesota 215, Department of Corrections at (651) 351-7200, or from the Department of Corrections web site„at 216. www.cornstate.mn.us. 217. HOME PROTECTION/WARRANTY PLAN: Buyer and Seller are advised to investigate the various home protection/ 218. warranty pians available for purchase. Different home protection/warranty plans have different coverage options, 219, exclusions, limitations and service fees. Most pians exclude pre-existing conditions. (Check ane.) 220. [] A Home Protection/Warranty Pian will be obtained by ❑ BUYER ❑ SELLER and paid for by _•_-__-•-- . (Check 221. E] ❑ BUYER ❑ SELLER to be issued by at cost ..- one.} .............. .............. 222. not to exceed $ 223. ® No Home Protection/Warranty Plan is negotiated as part of this Purchase Agreement. However, Buyer may elect 224, to purchase a Home Protection/Warranty Plan. MN:PA-5 (8115) PURCHASE AGREEMENT 225. Page 6 Hate 10/02/2015 226. Property located at 6465 Louisiana Avenue N. New Hoge NN 55626 227. NOTICE 228. s Is ® Seller's Agent ❑ Buyer's Agent ❑ Dual Agent ❑ Facilitator. i�c�t7;__.............---.---•---------•-------•!G►re(*one}----•------•----------.-_-_.._�..�.. 229. P_r_eutier !teal Estate Service® _ (Real Estate Company Name) 230. AnthonyHawk is Q Seller's Agent ® Buyer's Agent [] Dual Agent ❑ Facilitator. (Licensee) - 231. Hawk "alty_ Company (Real Estate Company Name) 232. THIS NOTICE DOES NOT SATISFY MINNESOTA STATUTORY AGENCY DISCLOSURE REQUIREMENTS. 233. DUAL AGENCY REPRESENTATION 234, PLEASE CHECK NEOFTHE FOLLOWING SELECTIONS: 235. ® Dual Agency representation DOES NOT apply in this transaction. Do not complete fines 236-2.52. 236. ❑ Dual Agency representation DOES apply in this transaction. Complete the disclosure in linens 23.7-252. 237. Broker represents both the Seller(s) and the Buyer(s) of the Property involved in this transaction, which creates a 238. dual agency. This means that Broker and its salespersons owe fiduciary duties to both Seller(s) and Buyer(s). Because 239. the parties may have conflicting interests, Broker and its salespersons are prohibited from advocating exclusively for 240, either party. Broker cannot act as a dual agent in this transaction without the consent of both Seller(s) and Buyer(s). 241. Seller(s) and Buyer(s) acknowledge that 242. (1) confidential information communicated to Broker which regards price, terms, or motivation to buy or sell will 243. remain confidential unless Seller(s) or Buyer(s) instructs Broker in writing to disclose this information. Other 244. information will be shared; 245. (2) Broker and its salespersons will not represent the interest of either party to the detriment of the other; and 246. (3) within the limits of dual agency, Broker and its salespersons will work diligently to facilitate the mechanics of 247. the sale. 248. With the knowledge and understanding of the explanation above, Seller(s) and Buyer(s) authorize and instruct Broker 249. and its salesperson to act as dual agents in this transaction. 250. Seller 251. Seller Buyer 252, Date Date 253, CLOSING COSTS: Buyer or Seller may be required to pay certain closing costs, which may effectively increase the 254. cash outlay at closing or reduce the proceeds from the sale. 255. FOREIGN INVESTMENT IN REAL PROPERTYTAX ACT ("FIRPTA"): Section 1445 of the Internal Revenu..e Code 256. provides that a transferee ("Buyer) of a United States real property Interest must be notified in writing and must withhold 257, tax if the transferor ("Seller") is a foreign person and no exceptions from FIRPTA withholding apply. Buyer and Seller 258. agree to comply with FIRPTA requirements under Section 1445 of the Internal Revenue Code. r 259. Seller shall represent and warrant, under the penalties of perjury, whether Seller is a "foreign person" (as the' same 260. is defined within FIRPTA), prior to closing. Any representations made by Seller with respect to this issue shall survive 261. the closing and delivery of the deed. 262. Buyer and Seller shall complete, execute, and deliver, on or before closing, any instrument, affidavit, or statement 263, reasonably necessary to comply with the FIRPTA requirements, including deliveryof their respective federal taxpayer 264. identification numbers or Social Security numbers. 265. Due to the complexity and potential risks of failing to comply with FIRPTA, including the Buyer's responsibility for 266. withholding the applicable tax, Buyer and Seller should seek appropriate legal and tax advice regarding FIRPTA 267, compliance, as the respective licensee's representing or assisting either party will be unable to assure either 268. party whether the transaction is exempt from FIRPTA withholding requirements. MN:PA-6 (m6) PURCHASE AGREEMENT 269. Mage 7 Date 10/02/2015 270. Property located at 6065 Louisiana Avenue N. New Hope .� ^MR 55428 271, ENTIRE AGREEMENT: This Purchase Agreement and any addenda or amendments signed by the parties shall 272. constitute the entire agreement between Buyer and Seller. Any other written or oral communication between Buyer and 273. Seller, including, but not limited to, e-mails, text messages, or other electronic communications are not part of this 274. Purchase Agreement. This Purchase Agreement can be modified or canceled only in writing signed by Seiler and 275. Buyer or by operation of law. All monetary sums are deemed to be united States currency for purposes of this purchase 276. Agreement. 277, ELECTRONIC SIGNATURES: The parties agree the electronic signature of any party on any document related to this 278. transaction constitute valid, binding signatures. 279. FINAL. ACCEPTANCE: To be binding, this Purchase Agreement must be fully executed by both parties and a copy 280. must be delivered. 281. SURVIVAL: All warranties specified in this Purchase Agreement shall survive the delivery of the deed or contract 282, for deed. 283. OTHER: 284. 285. 288, 287. 288. 289. 290. 291. 292. _ 293. _ 294. 295. 296. 297. ADDENDA AND PAGE NUMBERING: Attached addenda area part of this Purchase Agreement. 298. Enter total number of pages of this Purchase Agreement, including addenda, on line two (2) of page'one (1). 299. NOTE: Disclosures and optional Arbitration Agreement are not part of this Purchase Agreement and should 300. not be part of the page numbering. MN;PA-7 (8/15) PURCHASE AGREEMENT 301. Page 8 Date 10102/2015 302. Property located at .6065 Louisiana Avenue N. �- Now How_ _ _ DK 55428 303. 1, the owner of the Property, accept this Purchase I agree to purchase the Property for the price and on 304. Agreement and authorize the listing broker to withdraw the terms and conditions set forth above 305. said Property from the market, unless instructed I have reviewed all pages of this Purchase 306. otherwise in writing. Agreement. $07. 1 have reviewed all pages of this Purchase Agreement. 308. ❑ If checked, this Agreement Is subject to attached 309. Addendum to Purchase Agreement: Counteroffer. 310. FIRPTA: Seller represents and warrants, under penalty 311. of perjury, that Seller [] IS ® IS NOT a foreign person (i.e., a ........(Che(* ane.} ------ 312. non-resident alien individual, foreign corporation, foreign 313, partnership, foreign trust, or foreign estate for purposes of 314, income taxation. (See lines 255-268.)) This representation 315. and warranty shall survive the closing of the transaction 318. and the delivery of the deed. 317. X (sellers Signature) (Date) 318. 1t (Seller's Prinked Name) 319. X (Marital Status) 320. X (Seller's signature) 321. X (Seller's Printed Name) X ksws���' -U, (Buyer's Signature) (Date) x j�l AA A&&P JA 4-D . (Buyees Printed Name) X (Marital Status) X (Buyer's Signature) (Date) X (Buyer's Printed Name) 322. X X (Marital Status) (Martial Status) 3 323. FINAL ACCEPTANCE DATE: The Final Acceptance Date 324. is the date on which the fully executed Purchase Agreement is delivered. 325. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S). 326. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. 327, 1 ACKNOWLEDGETHAT I HAVE RECEIVED AND HAVE HAD THE OPPORTUNITYTO REVIEWTHE DISCLOSURE 328. STATEMENT. ARBITRATION DISCLOSUREAND RESIDENTIAL REAL PROPERTYARBITRATIONAGREEMENT, 329. WHICH IS AN OPTIONAL, VOLUNTARY AGREEMENT AND IS NOT PSS O�"THIS:PURC ASE A" EMENT. 330. SELLER(S) BUYER(S) 331. SELLER(S) BUYER(S) MN,PA-8 (8115) ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS This form approved by the Minnesota Association of REALTORS, which discialms any liability arising out of use or misuse of this form. 92009 Minnesota Association of REALTORS°, Edina, MN 1. date 10/02/15 2. Page-- _ 9 of 11 ^ 3. Addendum to Purchase Agreement between parties, dated 10/02115 e 4. pertaining to the purchase and sale of the property at 6065 Louisiana Avenue N. 5, New Hope, XN 55428 Kx=_13" .g : rs s:a ma._ Lar -: -j 'm Baa . �� SIC- VMWMAW y 6. Section 1: Lead Warning Statement 7, Every buyer of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified 8, that such property may present exposure to lead from lead-based paint that may place young children at risk of 9. developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including 10. learning disabilities, reduced intelligence quotlent, behavioral problems and impaired memory. Lead poisoning also 11. poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide 12. the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller's 13. possession and notify the buyer of any known lead-based paint hazards, A risk assessment or inspection for possible 14, lead-based paint hazards is recommended prior to purchase. .� "mss-_ "'-''�.:sC :f-�.�..�.�-' J�7.:fi_�:.i: �'S w7.�:7��...C:..� G,-�.;=�:.,,R.�-.1�:f.0 :T..R .�7K i..7f•----"--' +---'"� , 15. Seller's Disclosure (initial) 16. (a) Presence of lead-based paint and/or lead-based paint hazards. 17. (Check one below.) 18. ❑ Known lead-based paint and/or lead-based paint hazards are present in the housing 19. (explain). 20. 21, ❑ Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing. 22, (b) Records and reports available to the seller, 23, (Check one below.) 24. ❑ Seller has provided Buyer with all available records and reports pertaining to lead-based paint 25, and/or lead-based paint hazards In the housing (list documents below): 26, — 27. ❑ Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards 28, in the housing. r__.sir-:it:=iai:awR=�16rw1�s.�,sz.a1tY's:�:7r.t .:lr._i rs �-=�S'�I�C'.:a=.a711i7�4�Q...=,._;-:�Ni•76SCSY'_��.;;r,-,. _:x. .--�� . 29. Buyer's Acknowledgment (Initial) 30. (c) Buyer has received copies of all information listed under (b) above. 31. (d) Buyer has received the pamphlet, Protect Your Family from Lead in Your Home., 32. _ _ , . (e) Buyer has (check one below): 33, ❑ Received a 10 -day opportunity (or mutually agreed-upon period) to conduct a risk assessment 34. or inspection for the presence of lead-based paint and/or lead-based paint hazards ('rechecked, 35. see Section /I on page 2); or 36. ® Waived the opportunity to conduct a risk assessment or inspection for the presence of lead - 37. based paint and/or lead-based paint hazards. TLX:SALE-1 (8109) 39. Property located at 6065 Louisiana Avenue N. ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT AND LEAD-BASED PAiNT HAZARDS 38. Page _ 10 of 11 New Hope, NN 5.5+28 _.'Yil- -yr '.-_. �. =��m.- 40. Real Estate Licensee's Acknowledgement (initial) 41. (f) Real estate licensee has informed Seller of Seller's obligations under 42 U.S.C. 4852(d) and is aware 42. of licensee's responsibility to ensure compliance. K�*- &l ILV.c7l&W-X'at7C-:-;C "sJt it= --Z1 - v11• -„f= .'°..^.c']'ir. :.r:3: _.�.: -.i�.x:.c.�ar'AR7',-, ?riffs: -'f a 43. Certification of Accuracy 44. The following parties have reviewed the information above and certify, to the bust of their knowledge, that the information 45. provided by the signatory is true and accurate. 46. (serler) 47. (Seller) 48. (Real Estate licensee) Ryan 3 Johnson (Buyer) {D3 ) (Date) (8UYt-r) (Real Estate cenaee) Anthony Gawk (Daie) RX=_=2X 1NWI � W'+1 3w 7.._ c t. .fe us iz'��s:«i.�ar �,sm..nt:a:*iR 49. Section II: Contingency (initial only if first box under (e) is checked in Buyer's Acknowledgment above.) 50. This contract is contingent upon a risk assessment or an inspection of the property for the presence -of lead - 51. based paint and/or lead-based paint hazards to be conducted at Buyer's expense. The assessment, or inspection 52. shall be completed within ❑ ten (t 0) ❑ calendar days after Final Acceptance of the Purchase Agreement. -- — (Check one.) 53. This contingency shall be deemed removed, and the Purchase Agreement shall be in full force and effect,. unless Buyer or 54. real estate licensee representing or assisting Buyer delivers to Seller or real estate licensee representing or assisting 55. Seller, within three (3) calendar days afterthe assessment orinspection is timely completed, a written listof the specific 56. deficiencies and the corrections required, together with a copy of any risk assessment or inspection report. If Seller 57. and Buyer have not agreed in writing vtitthin three (3) calendar days after delivery of the written list of required corrections 58, that: (A) some or all of the required corrections will be made; or (B) Buyer waives the deficiencies; or (C) an adjustmenho 59. the purchase price will be made; this Purchase Agreement is canceled. Buyer and Seller shall immediately sign a- 60. Cancellation of Purchase Agreement confirming said cancellation and directing all earnest money paid hereunder to 61. be refunded to Buyer. It is understood that Buyer may unilaterally waive deficiencies or defects, or remove this contingency, 62. providing that Buyer or real estate licensee representing or assisting Buyer notifies Seller or real estate licensee 63. representing or assisting Seller of the waiver or removal, in writing, within the time specified. TLKSALE-2 (8/09) ADDENDUM TO PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORSO, whlch dlsd$tms any liability arising out of use or rnlsuse of chis form. 02Di1 Minnesota Association of REALTORS", Edina, MN 1. Date 10x02/15 2. Page 3. Addendum to Purchase Agreement between parties, dated October 2nd , 20 15 , pertaining to the 4. purchase and sale of the property at sass Louissiawa avenue x. 5. 2 LUN 6. In the event of a conflict between this Addendum and any other provision of the Purchase Agreement, the language 7. in this Addendum shall govern. 8. The Purchase Agreement is contingent on the following: 9. (1) Review and approval of the terms of the Purchase Agreement by the 10. New Hope City Council; 11. and 12. (2) An acceptable environmental review of the Property to be performed 13• by Hennepin County. 14. 15. 16. If either of the above contingencies are not met, Buyer may declare 17. this Purchase Agreement cancelled by written notice to Seller, or ' licensee representing or assisting Seller, in which case this Purchase 18. Agreement is cancelled. If Buyer declares this Purchase Agreement ig. cancelled due to the failure of one of the above contingencies, Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement 20. confirming said cancellation and directing all earnest money paid 21, hereunder to be refunded to Buyer. 22, 23, 24. 25, 26. 27. 28. 29. 30. 31. (Sailer) (Date) (Buyer) { tel 32. �..� (Seller) Mine) ArAd iC�atel 33. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYERS AND SELLERS. 34. IFYOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MN -APA (8/11) A4 October 2, 2015 To Whom It May Concern, The City of New Hope has been asked to provide verification of funds in the amount of $130,000 plus any additional fees for the purchase of 6065 Louisiana Avenue North, New Hope MN, 55428, I herby certify that the City of New Hope has the necessary cash resources available to complete the transaction proposed in the purchase agreement dated 10-2-15, submitted by the City of New Hope for the purchase of 6065 Louisiana Avenue North. CITY OF NEW HOPE By: Kiri: McDonald Its City Manager STATE OF MINNESOTA ) )ss' COUNTY OF HENNEPIN ) The foregoing was acknowledged before me this 2nd day of October, 2015, by Kirk McDonald, the City Manager, respectively, of the City of New Hope, a Minnesota municipal corporation, ani behalf',:` of said municipal corporation. Notary Public �j -, EMILY KATE DECKER Notary public a state of Minnesota 3" My Commission Expires Jonuary 31. 2020 CITY OF NEW HOPE 4401 Xylon Avenue North + New Hope, Minnesota 55428-4898 + www. ci.new-hope.mmus City Hall: 763531-51003 + Police (non -emergency): 763-531-5.170 + Public Works: 763-592-6777 City Hall Fax: 763-531-51.36 + Police Fax: 763-531-5174 + Public Works Fax. 763-592-6776