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052404 EDA
-'- OFFICIAL FILE COPY CITY OF NEW HOPE EDA MEETING City Hall, 4401 Xylon Avenue North May 24, 2004 President Don Collier Commissioner Doug Andersen Commissioner Sharon Cassen Commissioner Mary Gwin-Lenth Commissioner Steve Sommer 2. 3. 4. Call to order Roll call Approval of regular meeting minutes of May 10, 2004 Resolution approving purchase agreement and relocation benefits for 5531 Sumter avenue north (improvement project no. 763) Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes Regular Meeting May 10, 2004 City Hall CALL TO ORDER ROLLCALL APPROVE MINUTES IMP. PROJECT 724 Item 4 EDA RESOLUTION 04-17 Item 4 EDA Meeting Page 1 President Collier called the meeting of the Economic Development Authority to order at 7:39 p.m. Present: Don Collier, President Doug Andersen, Commissioner Sharon Cassen, Commissioner Mary Gwin-Lenth, Commissioner Steve Sommer, Commissioner Motion was made by Commissioner Andersen, seconded by Commissioner Sommer, to approve the Regular Meeting Minutes of April 26, 2004. All present voted in favor. Motion carried. President Collier introduced for discussion Item 4, Resolution modifying the restated redevelopment plan for redevelopment plan no. 1 and the tax increment financing plans for tax increment financing districts nos. 80-2, 81-1, 82-1, 85-1, 85- 2, 86-1, 02-1, 03-1 (special law) and 04-1 (special law) (improvement project no. 724). Mr. Steve Sondrall, city attorney, clarified that the EDA will make a recommendation to the city council regarding the amendment to the TIF District. Then the EDA should suspend its meeting and return to the public hearing (Item 7.1) being conducted by the city council. Mr. Kirk McDonald, director of community development, stated the resolution has been prepared by Krass Monroe, the city's redevelopment financial consultant. Approval of the resolution will modify the East Winnetka Tax Increment Financing District to include 5519 Sumter Avenue North. He reported that proper notifications of the public hearing were mailed to the appropriate jurisdictions including Hennepin County and School District 281. He stated the Hennepin County Board of Commissioners submitted a memorandum dated April 30, 2004, in support of the amendment and requested that their response be entered into the public hearing record. The EDA expressed support of the amendment to the TIF District. Commissioner Sommer introduced the following resolution and moved its adoption "RESOLUTION MODIFYING TI-IE RESTATED REDEVELOPMENT PLAN FOR REDEVELOPMENT PLAN NO. 1 AND THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICTS NOS. 80-2, 81-1, 82-1, 85-1, 85-2, 86-1, 02-1, 03-1 (SPECIAL LAVe') AND 04-1 (SPECIAL LAW) (IMPROVEMENT PROJECT NO. 724)." The motion for the adoption of the foregoing resolution was seconded by Commissioner Cassen, and upon vote being taken thereon, the following voted in favor thereof: Collier, Andersen, Cassen, Gwin-Lenth, Sommer, and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted~ signed by the president which was May 10, 2004 attested to by the executive director. IMP PROJECT 723 Item 5 The EDA meeting was suspended at 7:45 p.m. to conduct the public hearing (Item 7.1). The EDA meeting was reconvened at 10:14 p.m. President Collier introduced for discussion Item 5, Discussion regarding 7615 Bass Lake Road (New Hope Alano) gap request and motion directing staff to proceed with preliminary loan terms (improvement project no. 723). Mr. Kirk McDonald, director of community development, reported that Alano has come to a verbal agreement with AC Carlson to purchase the building located at 7550 Bass Lake Road, but additional financing is required for acquisition and remodeling. Staff is seeking authorization to review the proposal in greater detail to determine if the city's business subsidy loan program is appropriate for this application. He stated the financing request would be in the form of a low interest loan. The loan agreement would be prepared for consideration at a future EDA meeting. Mr. McDonald reported that Alano has visited the site and is very interested in the building due to its close proximity to Alano's present site. He stated the parking requirements may have to be increased from 43 spaces to 53 spaces. Mr. Steve Sondrall, city attorney, pointed out the reason behind the request is due to the fact that the city is acquiring the Alano site for the Winnetka Green development project. Mr. Fred Boyes, New Hope Alano Group, reported that the 7550 Bass Lake Road property is ideal. He stated they have a verbal agreement with AC Carlson to purchase the property for substantially less than its value. Mr. Boyes and the EDA expressed gratitude to AC Carlson for being a good neighbor. MOTION/ Item 5 IMP PROJECT 749 Item 6 Motion was made by Commissioner Gwin-Lenth, seconded by Commissioner Andersen, to direct staff to proceed with preparation of a Iow-interest loan for the New Hope Alano Group. All present voted in favor. Motion carried. President Collier introduced for discussion Item 6, Resolution authorizing approval of a term sheet between the New Hope Economic Development Authority and Project for Pride in Living, Inc. for the redevelopment of 5501 Boone Avenue North (improvement project no. 749). Mr. Kirk McDonald, director of community development, clarified that a majority vote rather than a 4/5's vote will be needed on the future rezoning request for the 5500 Boone property. EDA Meeting Page 2 President Collier inquired of the length of time that the 5501 Boone property has been off the tax rolls. Mr. Donahue, city manager, reported that it has been at least ten years. Commissioner Sommer indicated he does not believe the housing proposal is right for New Hope and that it is not a good investment for the city. He referred to past housing studies that reveal there is not a need for more low income, affordable, or rental housing. He stated his intent to vote against the project. President Collier and Commissioners Andersen, Cassen, and Gwin-Lenth, expressed support for the project. Reasons cited included redevelopment of a tax- exempt property requiring soil correction, replacement of rental housing that may be demolished, affordable units for empty nesters, wide range of housing choices, a profit of 2.1 million dollars over 25 years, and PPL's favorable track record with the Bass Lake Road project. May 10, 2004 EDA RESOLUTION 04-18 Item 6 IMP PROJECT 665 Item 7 EDA RESOLUTION 04-19 Item 7 EDA Meeting Page 3 Commissioner Gwin-Lenth introduced the following resolution and moved its adoption "RESOLUTION AUTHORIZING APPROVAL OF A TERM SHEET BETWEEN THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY AND PROJECT FOR PRIDE IN LIVING, INC. FOR THE REDEVELOPMENT OF 5501 BOONE AVENUE NORTH (IMPROVEMENT PROJECT NO. 749)." The motion for the adoption of the foregoing resolution was seconded by Commissioner Cassen, and upon vote being taken thereon, the following voted in favor thereof: Collier, Andersen, Cassen, Gwin-Lenth; and the following voted against the same: Sommer; 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. President Collier introduced for discussion Item 7, Resolution approving exclusive representation agreement (retail site development services/sale of Electronic Industries site property (improvement project no. 665). Mr. Ken Doresky, community development specialist, reported that in January the city was notified by the Culver's Restaurant developer that that approval of the New Hope location was rescinded due to a franchisee complaint concerning proximity to their restaurant in Brooklyn Center. The city was informed that the corporate franchise proximity rules were changed based upon this complaint. Throughout the late winter and spring, staff continued to work with the developer to exhaust all options with Culver's corporate office and an additional restaurant possibility for the site. The developer has exhausted all their resources to locate a restaurant on the site and is requesting that the purchase agreement be canceled and their $1,000 escrow deposit be returned. The city attorney will prepare a cancellation agreement. The office condominium developer is still on board and is willing to cooperate with the city until a use for the vacant portion of the site is secured. He stated a marketing agreement was submitted for consideration from Dexter Marston, Retail Site Development Services, the same broker that previously represented Culver's Restaurant and is currently still representing the office condominium developer. The agreement was revised by the city attorney. It is essentially the same arrangement as the former one (the city will net $380,000, less estimated closing costs and recording fees of $1,000 - $2,000 and provide the broker with at least $20,000). Culver's would have paid the broker $20,000 under the original arrangement. He noted if the property is sold for more than the listed price of $460,000, the city will make a higher profit. Due to the number of redevelopment activities managed by the community development department, staff recommends that marketing of the property be undertaken by a professional broker. With this agreement, the city will have the right to accept and reject potential buyers in its sole discretion. The broker is aware of the city's desire to obtain a quality restaurant at the site. Mr. Dexter Marsden, Retail Site Development Services, was recognized. He reviewed his letter dated May 10, 2004, and explained the definitions of various restaurant classifications (fast food, quick serve, quick casual, casual dining, freestanding restaurant, and in-line restaurant). He stated the property is best suited for a quick casual dining concept and will be marketed for such. The EDA expressed support for the marketing direction presented by Mr. Marsden. Commissioner Sommer introduced the following resolution and moved its adoption "RESOLUTION APPROVING EXCLUSIVE REPRESENTATION AGREEMENT (RETAIL SITE DEVELOPMENT SERVICES/SALE OF ELECTRONIC INDUSTRIES SITE PROPERTY (IMPROVEMENT PROJECT NO. 665)." The motion for the adoption of the foregoing resolution was seconded by Commissioner Andersen, and upon vote being taken thereon, the May 10, 2004 IMP PROJECT 714 Item 8 EDA RESOLUTION 04-20 Item 8 ADJOURNMENT following voted in favor thereof: Collier, Andersen, Cassen, Gwin-Lenth, Sommer, and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. President Collier introduced for discussion Item 8, Resolution approving purchase agreement and relocation benefits 5434 Winnetka Avenue North (improvement project no. 714). Mr. Ken Doresky, commumty development specialist, stated the property located at 5434 Winnetka Avenue North is the final property to be acquired for phase I of the east Winnetka redevelopment. Commissioner Sommer introduced the following resolution and moved its adoption "RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS 5434 WINNETKA AVENUE NORTH (IMPROVEMENT PROJECT NO. 714)." The motion for the adoption of the foregoing resolution was seconded by Commissioner Gwin-Lenth, and upon vote being taken thereon, the following voted in favor thereof: Collier, Andersen, Cassen, Gwin-Lenth, Sommer, and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. Motion was made by Commissioner Gwin-Lenth, seconded by Commissioner Andersen, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 11:05 p.m. ~pectfully ~ed, Valerie Leone City Clerk EDA Meeting Page 4 May 10, 2004 EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development ('"'-~: 5-24-04 EDA Item No. By: Kirk McDonald, Director of CD & Ken Doresk¥, CD Specialist B 4 RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS 5531 SUMTER AVENUE NORTH (IMPROVEMENT PROJECT FILE 763) REQUESTED ACTION Staff recommends EDA approval of a resolution prepared by the city attorney approving the purchase of property located at 5531 Sumter Avenue North for the negotiated price of $214,000.00. The city will pay up to $219,900 as a differential payment ($5,900) if the owner purchases a property that is up to that amount. The owner has indicated that they do not plan to use the differential payment. In addition, the city is required to pay moving .costs estimated at $2,350 and closing costs for their new property. The purchase agreement is expected to be executed by the property owner by the time of tonight's meeting. Krass Monroe, the city financial/redevelopment consultant recommends that the EDA now consider acquisitions of this type, instead of the City Council. Please see the attached city attorney correspondence regarding this request. POLICY/PAST PRACTICE City goal #2 is to emphasize the maintenance and redevelopment of commercial and residential properties within the city. The City Council has been addressing the residential portion of this goal through the city's many housing activities, including acquiring property in areas designated for redevelopment in the Comprehensive Plan. BACKGROUND At the November 3, 2003, Council Work Session, the Council directed staff to complete appraisals, relocation estimates and to present offers to residents located in the east Winnetka redevelopment area. On January 26, 2004, the EDA authorized condemnation of the remaining properties. Staff is still negotiating with the remaining two residential property owners and one commercial property owner. Staff recommends approval of the resolution. FUNDING The subject property is located in an area where TIF funds can be expended. TIF funds would be used for property acquisition, relocation and associated holdin~l costs. Durin~l the 2003 State Legislative Special To: I:\RFA\PLANNING\Housin~I\5531\Q - 5531 Purchase .~reement.doc Request for Action Page 2 5-24-04 Session, the city's TIF special legislation was passed. In December 2003, the district was approved by the City Council. A'I-FACHMENTS · Resolution · Purchase Agreement · City Attorney Correspondence, 5-19-04 · Relocation Study (full study available for review Dept. of Comm. Dev.) · City Appraisal Excerpts (full appraisal available for review in Dept. of Comm. Dev.) · Location Map · Provided in past Council reports relating to the east Winnetka redevelopment area: · Location Map · Topographic Map · Section Map · Comprehensive Plan References- Planning District 6 CITY OF NEW HOPE EDA RESOLUTION NO. 04 - RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS 5531 Sumter Avenue North BE IT RESOLVED, by the Economic Development Authority in and for the City of New Hope as follows: WHEREAS, New Hope City staff have been in contact with Margueritte Hanle ("Owner"), Owner of certain real estate known as 5531 Sumter Avenue North (the "Property"); and WHEREAS, appraisers hired by the New Hope EDA valued the Property at $189,000.00 as of January 2, 2004; and WHEREAS, appraisers hired by the Owner valued the Property at $195,000.00 as of February 4, 2004; and WHEREAS, the Owner is willing to sell the Property to the New Hope EDA for the sum of $214,000.00 as set forth in the Purchase Agreement attached hereto as Exhibit A and incorporated herein by reference; and WHEREAS, the New Hope EDA hereby approves the Purchase Agreement with the understanding relocation assistance benefits will be paid to the Owner as required by both State and Federal law; and WHEREAS, City staff have employed the service of Evergreen Land Services Company to provide the required relocation assistance; and WHEREAS, Evergreen Land Services Company has prepared a relocation analysis (attached as Exhibit B) for the Owner herein and has determined the estimated maximum relocation benefits payable to Owner based on a $214,000.00 acquisition price of the subject property is as follows: 1. differential payment - $5,900.00 2. moving expenses - $2,350.00, 3. closing costs - $4,500.00; and WHEREAS, it is in the best interest of the New Hope EDA to purchase the Property from the Owners for the sum of $214,000.00, with other terms and conditions as set forth in the Purchase Agreement attached as Exhibit A and to pay the required relocation assistance benefits as determined by Evergreen Land Services Company in the analysis attached as Exhibit B. NOW, THEREFORE, BE IT RESOLVED by the Economic DeveloPment Authority in and for the City of New Hope as follows: e e Dated the 24th That the above recitals are incorporated herein by reference; That the purchase of the Property by the New Hope EDA from Margueritte Hanle for the sum of $214,000.00, with other terms and conditions as set forth in the Purchase Agreement attached hereto as Exhibit A, is approved. The relocation assistance benefits payable to the Owner as determined by Evergreen Land Services Company attached as Exhibit B is hereby approved. 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 the Purchase Agreement attached hereto as Exhibit A. day ofMay, 2004. Don Collier, President Attest: Daniel J. Donahue, Executive Director P:LAttomey\Cnh Resolutions\99. I 1303-001 --Re. so Approv PA-5531 Surnter Avenue.doc MINNESOTA STANDARD RESIDENTIAL PURCHASE AGREE.~fFNT BEFORE YOU USE OR SIGN THIS CONTRACT, YOU SHOULD CONSULT V~TI'H A LAWYER TO DETERMINE THAT THIS CONTRACT ADEQUATELY PROTECTS YOUR LEGAL RIGHTS. 1. PARTIES. This Purchase Agreement is made on May ,2004. by and between Marg~eritte C. Hanle. a single person, of 5531 Sumter Avenue North, New Hope,' Minnesota 55428. SELLER. and the Econormc Development Authority m and for the Ci.ty of New Hope (New Hope EDA). a public body corporate and pohuc under the laws of the State of Minnesota, of 4401 Xylon Avenue North. New Hope. Mmnes'ota 55428, BUYER. 2. OFFER/ACCEPTANCE. Buyer offers to purchase and Seller agrees to sell real propen3, legally described That part of Lot Thirty-nine 09), Auditor's Subdivision Number 226, Hennepin County. Minnesota, described as follows: Commencing at a point on the West line of said Lot 39, 200 feet South of the Northwest corner thereof, which point is the point of beginning of the tract to be described; thence continuing South along said West line 100 feet; thence East and parallel to the North line of said Lot 39, 200 feet; thence North and parallel with West line of said Lot 39, 100 feet; thence West and parallel with the North line of said Lot 39, 200 feet to the point of beginning, Files of Registrar of Titles, County of Hennepin, State of Minnesota. · Property Tax Identification Number or Tax Parcel Number 05-118-21-33-0026; located at 5531 Sumter Avenue North, City of New Hope, County of Hennepin, State of Minnesota, 55428. 3. ACCEPTANCE DEADLINE. The acceptance date of this Purchase Agreement is the date it is delivered by the last party signing to the other party. T]:~g e-.fief t-.; ~.-'-'rc~aze. '.:n!-cz~ ~c_-'~:c~ z.~c.':.er, :!:al! bc :'::i~ at ! ! :59 a.m. 4. PERSONAL PROPERTY AND FIXTURES INCLUDED IN SALE. The following items o fp ersonal property and fixtures owned by Seller and cun-ently located on the real property are included in this sate: garden bulbs, plants, shrubs, trees, storm windows and inserts, storm doors, screens, awnings, window shades, blinds, curtain-traverse-drapery rods, attached lighting fixtures with bulbs, plumbing fixtures, sump pumps, water heaters, heating systems, heating stoves, fireplace inserts, fireplace doors and screens, built-in humidifiers, built- in air eonditioning units, built-in electronic air filters, automatic garage door openers with eonmols, television antennas, water softeners, built-in dishwashers, garbage disposals, built-in trash compactors, built-in ovens and cooking stoves, hood-fans, intercoms, installed carpeting, work benches, security systems, and also the following property: UFcn ~clivc.%..cf :~: 5. PRIC~ A_ND TERlVlS. The price for the real and personal property included in this sale is Two Hundred Eourteen Thousand and 00/100 Dollars ($214,000.00) which Buyer shall pay as follows: Earnest money of $0.00 by r~ Seller, to be deposited and held by Seller (and may be commingled with Seller's other funds) pending closing, = Seller's lawyer, to be deposited and held in the lawyer's U'ust account pending closing, [] Seller's broker, to be deposited or held by broker according to the requirements of Minnesota Statutes,. [] Other r~zlpt cf '::hSeh ~: hcrzb;, ae!mc-:.'Icdgcd and $214,000.00 cash, on Closing., ' . , 2004, the Date of 6. DEED/MARKETABLE TITLE. Upon performance by Buyer, Seller shall execute and deliver a General Warranty Deed, joined in by spouse, if any, conveying marketable title of record, subject to: A. Building and zoning laws, ordinances, state and federal regulations; B. Reslxicfions relating to use or improvement of the real property without effective forfeiture provisions; C. Reservation of any mineral rights by the State of Minnesota; D. Utility and drainage easements which do not interfere with existing improvements: E. Exceptions to title which constitute encumbrances, restrictions, or easements which have been disclosed to Buyer and accepted by Buyer in this Purchase Agreement: None. 7. PEAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Real estate taxes due and payable in and for the year of closing shall be prorated between Seller and Buyer on a calendar year basis to the actual Date of Closing, unless otherwise provided in this Purchase Agreement. !f'~-; ~:a:em~:~ fc.r :'.:ch :axe'.; are ::.o: available ,~ ...... ......... . ~ **' ............... . ..... ,,..,~,.~ Seller represents the rexes due and payable m the year(s} 2004 will be FULL ?AP-T, ?@?, homestead classification.. :x':l::s r~ ....... ~. ...... ~. ...... ~""~:~'~*':~- '"' ...... F.a',':hD er. '~-~ year S-..'y:: :: el;sing $__ -~ Seller's share of such te,..;t.~ ar.~ BUYER AND SELLER SHALL PRORATE AS OF THE DATE OF CLOSING ~ S=-~*..L' L PAY ON DATE OF CLOSE~.C all installments of special assessments certified for payment with the real estate taxes due and payable in the year of closing. tc,~:~.~ axe] ~L~E ~=*· · · ~e·mw~- , SELLER SHALL PAY ON DATE OF CLOSING all other special assessments levied as of the date of this Purchase Agreement. re,.n. .... ~ =~n.,~l~ c,~· · AS£U?J~ / SELLER SHALL PROVIDE FOR PAY/~IENT OF special assessments pending as of the date of this Purchase Agreement for improvements that have been ordered by the City Council or other governmental assessing authorities. (Seller's provision for payment shall be by payment into escrow of 1-1/2 times the estimated amount of the assessments.) As of the date of this Purchase Agreement. Seller represents that Seller has not received a Notice of Hearing of a new public improvement project from an>' governmental assessing authority, the costs of which project may be assessed against the real properly. If a special assessment becomes pending after the date of this Purchase Agreement and before the Date of Closing, Buyer may, at Buyer's option: A. Assume payment of the pending special assessment without adjustment to the purchase price of the real property; or B. Require Seller to pay the pending special assessment (or escrow for payment of same as provided above) and Buyer shall pay a commensurate increase in the purchase price of the real properg.,, which increase shall be the same as the estimated amount of the assessment; or C. Declare this Purchase Agreement void by notice to Seller, and earnest money shall be refunded to Buyer. re,.;~. ....? ~,rt,~n ~ ,~r ~ A££L~,~/SELLER SHALL PAY ON DATE OF CLOSING any deferred real estate taxes (including "Green Acres" taxes under Minn. Stat. 273.111) or special assessments payment of which is required as a result of the closing of this sale. Buyer shall pay real estate taxes due and payable in the year following closing and thereafter and any unpaid special assessments payable therewith and thereafter, the payment of which is not otherwise provided herein. Seller makes no representation concerning the amount of future real estate taxes or of future special assessments. 8. DAlVlAGES TO REAL PROPERTY. If the real property is substantially damaged prior to closing, this Purchase Agreement shall terminate and the earnest money shall be refunded to Buyer. If the real property is damaged materially but less than substantially prior to closing, Buyer may rescind this Purchase Agreement by notice to Seller within 21 days after Seller notifies Buyer of such damage, during which 21-day period Buyer may inspect the real property, and in the event of such rescission, the earnest money shall be refunded to Buyer. 9. SELLER'S BOUNDARY LI]~, ACCESS, RESTRICTIONS AND LIEN WARRANTIES. Seller warrants that buildings, if any, are entirely within the boundary lines of the real property. Seller warrants that there is a right of access to the real property from a public right of way. Seller warrants that there has been no labor or material furnished to the real property for which payment has not been made. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the real property. These warranties shall survive the delivery of the Deed or Contract for Deed. 10. CONDITION OF PROPERTY. A. Seller warrants that all appliances, fixtures, heating and air conditioning equipment, fireplaces (including mechanisms, dampers, flues, and doors), wiring, and plumbing used and located on the real propert?' will be in working order on the Date of Closing. Seller shall remove all debris, and all personal property not included in this sale from the real property before possession date. Seller has no knowledge of any 13utch elm disease, oak wilt, or other disease of any trees on the real property. B. Seller knows of no haTardous substances or petroleum products having been placed, stored, or released from or on the real property by any person in violation of any law. nor of any underground storage tanlc~ having been located on the real property, at any time, except as follows: None'. Seller's warranties and representations contained in this paragraph I0 shall survive the deliveD, of the Deed or Ccnz=ct for Dec& Any action based upon these warranties and representations must be commenced within two years after the date on which the Buyer closed on the purchase of the real property. D. Buyer shall have the right to have inspections of the property conducted prior to closing. Unless required by local ordinances or lending regulations, Seller does not plan to have the prope~ inspected. go Statutory Disclosure. Pursuant to Minnesota Statutes sections 5t3.52 - 513.60 (effective January 1. 2003), Seller must provide a written disclosure [see (1) below], or Buyer must have received an inspection report [see (2) below], or Buyer and Seller may waive the w~tten disclosure requirements [see (3) below]. Minnesota Statutes Section 513.57, Subd. 2. L/ABILITY. A seller who fails m make a disclosure as required by sections 513.52 to 513.60 and was aware of the condition of the real property is liable to the prospective buyer. A person injured by a violation of this section may bring a civil action and recover damages and receive other equitable relief as determmed by the court. Aa action under this subdivision must be commenced within m'o years after the date on which the prospective buyer closed the purchase or transfer of the real property. [Select only one of these three.J [] (1) Seller's Disclosure. Seller has provided a written disclosure to Buyer. A copy of Seller's disclosure is attached. Seller shall correct in writing any inaccuracies in the disclosure as soon as reasonably possible before closing. - Minnesota Statutes Section 513.55. GENERAL DISCLOSURE REQUIREMENTS. Subdivision 1. CONTENTS. (a) Before signing an agreement to sell or wansfer residential real property, the seller shall make a ~nnnen disclosure to the prospective buyer. The disclosure must include all material facts pertaining to adverse physical conditions in the property of winch the seller is aware that could adversely and significantly affect: (1) an orSi~ry buyer's use and enjoyment of the property; or, (2) any intended use of the property of winch the seller is aware. (b) The disclosure must be made in good faith and based upon the best of the seller's knowledge at the time of the disclosure. Minnesota Statutes Section 513.58. AMENDMENT TO DISCLOSURE. Subdivision 1. NOTICE. A seller must notify the prospective buyer in writing as soon as reasonably possible, but in any event before closing, if the seller learns that the seller's disclosure required by section 513.55 was inaccurate. Subdivision 2. FAILURE TO NOTIFY; LIABILITY. A seller who fails to notify the prospective buyer of any amendments to the initial disclosure required under subdivision I is liable to the prospective buyer as provided in section 513.57. (2) Inspection Report. Buyer has received an inspection report by a qualified third-party. If a copy of the inspection report is provided to Seller, Seller shall disclose to Buyer material facts known to Seller that contradict any information in the inspection report. Minnesota Statutes Section 513.56 Sub& 3. INSPECTIONS. (a) Except as provided in paragraph (b), a seller is not required to disclose information relating to the physical condition of the real property ff a written report that discloses the information has been prepared by a qualified third party and provided to the prospective buyer. For purposes of this paragraph, "qualified third party" means a federal, state, or local governmental agency, or any person whom the seller, or prospective buyer, reasonably believes has the expertise necessary to meet the industry standards of practice for the type of inspection or investigation that has been conducted by the third party in order to prepare the written report. (b) A seller shall disclose to the prospective buyer material facts known by the seller that contradict any information included in a written report under paragraph (a) ff a copy of the report is provided to the seller. [] (3) Waiver of Disclosure. Minnesota Statutes Section 513.60. WAIVER. The written disclosure required under sections 513.52 to 513.60 may be waived if the seller and the prospective buyer agree in writing. Waiver of the disclosure required under 3 sections 513.52 to 513.60 does not waive, limit, or abridge any obhgation for seller disclosure created by any other Seller and Buyer waive the written disclosure required under sections 513.52 to 513.60. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE SELLER: BY: Marguentte C. Hanle Don Collier, President BY: Daniel J. Donahue, Execunve Director Other than the warranties and representations made m this paragraph 10, the propert3,' is being sold "AS IS" with no express or implied representations or warranties by Seller as to physical conditions, quality, of construcnon, workmanship, or fitness for any particular purpose. (This paragraph is not intended to waive or limit an3 provisions of Mmn. Stat., Chapter 327A.) 11. DISCLOSURE OF NOTICES. Seller has not received any notice from any governmental authority as to violation of any taw, ordinance or regulation affecting the real property.. If the real property is subject to restrictive covenants, Seller has not received any notice from any person as to a breach of the covenants. Seller has not received any nonce from any governmental authOrity concemmg any eminent domain, condemnation. special taxing dis~ict, or rezoning proceedings. 12. TRUTH-IN-HOUSING. Buyer acknowledges receipt of the Troth-in-Housing Disclosure Report or other inspection report if required by the municipality in which the real property is located. 13. POSSESSION. Seller shall deliver possession of the property not later than the Date of Closing~ct to any access a~,reement entered into bv the narties. Seller at, tees to nay all interest,.~.~ ....~:,...--~---n-";~ pc~.~leu:n gas. and all charges for city water, city sewer, electricity, and natural gas thr~l~wld~udm$; :ha!! 5c prc.mtc~ ............ Fa.-cz -~s ef the Date of Closing. or the date they vacate the nronerw ncr the Access Am'_ee_m_gpd_ whichever is later. *SEE ADDITIONAL TERMS 14. EXAMINATION OF TITLE ......................... er ~ .:_e :z gsa_ an_ mar.zcta~.c 15. ~LE CO~O~S ~ ~D~S. Sel]~ shaN ha~e 120 da~s ~om receipt & ~de objec~s to ~e dtle ~e~ble. Upon receipt of Bu~'s ~tle objecdons, SeII~ shall, wi~in t~ (10) business days, nofi~ Buy~ of Sell~'s mt~fi~ to make title ~rkemble wi~m ~e 120 day p~od. Liens or mcumbmees for liqui~t~ amo~ which c~ be releas~ by pa~t or escrow ~om proceeds of closing shall not delay ~e closing. C~e of~e defec~ by Sell~ shall be rmmnable, diligmL ~d prompt. P~dmg'co~ection of rifle, all pa~mm r~u~ h~em ~d ~e closing shill be pos~. A. ~nofiee is Dvm ~d Sell~ ~es title ~kemble, ~m up~ p~smmfion to Buy~ =d propos~ lmd~ of d~ummmfim establishing ~at title has bern made ~kemble, ~d if not objected to m the same time ~d m~ ~ ~e off,al title obj~fions, ~e closing shall rake place withM tm (10) business days or on ~e seh~uled ClosMg ~te, whiehev~ is lat~. B. If notice is ~vm ~d Sell~ pr~eeds in g~d fai~ to ~e title ~kemble but ~e 120 day pm~ expires ~out title being mdc ~kemble, Buy~ my deelm ~is Purch~e A~eem~t void by notice to Sell~, n~ p~ shall be liable for damges h~und~ to ~e oth~, ~d earnest money shall be rended to Buy~. C. ~ Sell~ does not ~ve notice of Mtmfion ~ rake title m~kemble, ~ ifno~ce is ~v~ but ~e 120 day p~ expos wi~out title b~g mdc mrkemble due to Sell~'s failm m pr~d m good fai~, Buy~ my s~L ~ p~R~ by law, one or more of~e follo~g: 4 (1) Proceed to closing without waiver or merger in the Deed of the objections to title and without waiver of any remedies, and may: (a) Seek damages, costs, and reasonable lawyer's fees fi.om Seller as pertained by law (damages under this subparagraph (a) shall be limited to the cost of eunng objecnons to title, and consequential damages are excluded): or (b) Undertake proceedings to correct the objections to title: (2) Rescission of this Purchase Agreement by nouce as provided herein. ~n which case the Purchase Agreement shall be null and void and all earnest money paid shall be refunded to Buyer: (3) Damages from Seller together with costs and reasonable lawyer's fees. as permitted by law: (4) Specific performance within six months after such right of action arises. D. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect either of the following options, as permitted by lag': (1) Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation: (2) Seek specific performance within six months after such fight of action arises, including costs and reasonable lawyer's fees, as permitted by law. E. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as perrmtted by law: (1) Seek damages from Seller including costs and reasonable lawyer's fees; (2) Seek specific performance within six months after such fight of action arises. 16. NOTICES. All notices required herein shall be in venting and delivered personally or mailed to the address as shown at paragraph 1 above and, if mailed, are effective as of the date of mailing. ~ha!! r. ay :!I ~..ua:.~; ....~ ...... .~ ~t.,~:_ :II ncgc:z:.9c,r rcq:::r:z a ........................................ Cia:kg. ~ .......... ar ':,51! 5: appra;':d far rz:crdi::.g as cf :he Date of 18. MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota. 19. IVELL DISCLOSURE. [Check one of the following] [] Seller certifies that Seller does not know of any wells on the real property. ~ Wells on the real property are disclosed by Seller on the attached Well Disclosure Form. 20. SEWAGE TREATMENT SYSTEM DISCLOSURE. [Check either A or BI A. ~ Seller certifies that sewage generated at the property goes to a facility permitted by the Minnesota Pollution Control Agency (for example, a city or municipal sewer system). B. [] Seller certifies that sewage generated at the property does not go to a facility permitti~d by the Minnesota Pollution Control Agency and Seller's Disclosure of Individual Sewage Treatment System is attached (attach form). [Check either C or D] C. [] Seller does not know if there is an abandoned individual sewage system on the property. D. ~Seller knows that there [strike oneJ: =re'are no abandoned individual sewage treatment systems on the property. If Seller discloses the existence of an abandoned individual sewage treatment system on the property, then Minnesota law requires that the location of the system be disclosed to Buyer with a map. [Attach Seller "s Disclosure of Individual Sewage Treatment System with map completed.] 21. LEAD PAllOr DISCLOSURE. [Check one of the following] [] Seller represents that the dwelling was constructed on the real property in 1978 or later. 5 [] Seller represents that the dwelling was construed on the real property, before 1978. (If such housing ~s located on the real property, attached and made a part of this Purchase Agreement is "LEAD PAINT ADDENDUM FOR HOUSING CONSTRUCTED BEFORE 1978".) 23. SELLER'S AFFIDAVIT. At closing, Seller shall supplement the warranties and representations m this Purchase Agreement by executing and delivering a Minnesota Uniform Conveyanc~ng Blank [Form 116-M. 117- M, or 118-M] Affidavit of Seller. 24. CLOSING. Closing shall be at the zffi:ev.~c ~.....e~' .... ~ la:%'er. ---eD ......... .... ...."~ ingurzr, ar at ..................... ....... ~- ......... n.. a~'ggabl: !v.:.xti~.::. [State other locationJ: New Hope City Hall, 4401 Xylon Avenue North. New Hope. Minnesota 55428. At closing, Seller and Buyer shall disclose their Social Security Numbers or Federal Tax Identification Numbers for the purposes of completing state and federal tax forms, 25. aDDmONAL TERMS: *Buyer shall obtain, at Buyer's expense, a comrmtment for an Owner's Policy of Title Insurance on a current ALTA form issued by an insurer licensed to write title insurance in Minnesota. Buyer shall be responsible for payment of those costs necessary to prepare such Comrmtment, including but not limited to abstracting fees, name search fees, service charges, etc. Buyer shall pay the premium for the Owner's Policy of Title Insurance. Buyer shall have ten (10) business days after receipt of the Commitment for Title Insurance to provide Seller with a copy of the Commitment and written objections. Buyer shall be deemed to have waived any title objections not made within the ten (10) day period above, except that this shall not operate as a waiver of Seller's covenant to deliver a statutory Warranty Deed, unless a Warranty Deed is not specified above. If Buyer obtains title insurance, Buyer is not waiving the right to obtain a good and marketable title of record from Seller. 26. ADDENDA. Attached are 4 addenda which are made a pan of this Purchase Agreement. 27. ~ IS OF THE ESSENCE. Time is of the essence for all provisions of this Purchase Agreement. 28. 1HU-LTIPLE ORIGINALS. Seller and Buyer have signed 3_ originals of this Purchase Agreement. TIllS IS A LEGALLY BINDING CONTRACT. BEFORE SIGNING~ CONSTULT A LAWYER. Minnesota law permits licensed real estate brokers and sales agents to prepare purchase agreements. No recommendation or representation may be made by any real estate broker or sales agent as to the legal sufficiency, the legal effect, or the tax consequences of this conwact. These are questions for your lawyer. SELLER: I agree to sell the property for the price and terms and conditions set forth above. Date: May ,2004. Margueritte C. Hanle SSN: BUYER: I agree to purchase the property for the price and terms and conditions set forth above. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE Date: May ,2004. By: Don Collier, President Date: May ,2004. By: Daniel J. Donahue, Executive Director This Purchase Agreement was prepared by: JENSEN & SONDRALL, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 (763) 424-8811 Others who will assist Seller or Buyer with this transaction: Lawyer for Buyer: Steven A. Sondrall,//103391 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, Minnesota 55428 (763) 424-8811 Listing Agent and Broker for this transaction are: N/A Selling Agent and Broker for this transaction are: N/A Buyer's Title Insurer: Old Republic National Title Insurance Company 400 Second Avenue South Minneapolis, Minnesota 55401 [1994; Rev. 1996; Rev. 1997; Rev. 2002] P:~Atlorney',.II~\l-Client Folders~'DNH~99-I 1303L09.11303-001 -Residential PA.doc EXHIBIT A ADDITIONAL TERMS RELATING TO PURCHASE AGREEMENT FOR 5531 SUMTER AVENUE NORTH 1. Closing Costs. Buyer acknowledges that it shall be responsible for payment of the State Deed Tax due on the sale of the above property, as well as the cost of securing a title commitment as set forth in the Purchase Agreement. Buyer will also be responsible for all other closing costs, specifically including all recording costs and all costs to seal the water well on the property. 2. Relocation Benefits. Buyer acknowledges that relocation assistance benefits as determined by Evergreen Land Services Company will be paid to the Seller, as required by law. Seller agrees the differential payment on the purchase of a replacement property resulting from the sale of the subject property shall not exceed the sum of $5,900.00 based on a $219,900.00 purchase price for a comparable replacement property. Seller also agrees Evergreen has estimated moving expenses at $2,350.00 and closing costs of $4,500.00, however, these payments will be based on the actual costs as determined by Evergreen Land Services. It is acknowledged and agreed the determination of moving expenses and closing costs by 'Evergreen Land Services Company shall be binding on both parties. SELLER: Dated: May ~, 2004. Margueritte C. Hanle Dated: May ,2004. P:~AttorneyULB\l-Client Folders\CNH\99-11303~99. I 1303-002-Exhibit A.doe BUYER: THE ECONOMIC DEVELOPMENT AUTHORITY LN AND FOR THE CITY OF NEW HOPE By: Don Collier Its: President By: Daniel J. Donahue Its: Executive Director Addendum to Purchase Agreement bem, een parties dated sale of the property, at 5531 Sumter Avenue North. New Hope. Minnesota 55428. Miller/Davis Co. ~ St. Paul. MN 651-642-1988 ~jl~Bil~~' Form 1519Y ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS This form approved by ~ Minnesota A~sociation of REALTORS~, wt~ich ciiscJaims any liability arising out of use or m~suse of t~is form, © 2000, Minnesota AssoOat~on of REALTORS~, Edina. MN Date Page _ Ma.x _ 2004 pertaining to the purchase and Section 1: Lead Warning Statement Eve~. purchaser of an),' interest in residential real propero' on which a residential dwelhng was built prior to 1973. ts notified ii, at such property.' mO, present exposure to lead from lead-based paint that mat' place .young children ar risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilmcs. reduced intelligence quotient, behavioral problems, and impaired memoo'. Leadpoisonmg also poses a particular risk to pregnant women. The seller of any interest in residential real propero, is required to provide the buyer with ant. in£ormatton on lead-based paint hazards from risk assessments or inspections in the seller's possession and noti~.' the buyer qf any known lead-based pamt hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase. Seller's Disclosure (initial) ~ (a) Presence of lead-based paint and/or lead-based paint hazards (check one below): [] Known lead-based paint and/or lead-based paint hazards are present in the housing ~explain). Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing. Records and reports available to the seller (check one below): Seller has provided the purchaser with all available records and reports pertaining to lead-based paint an&or lead-based paint hazards in the housing (hst documents below). Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards m the housmg. Purchaser's Acknowledgment (initial) ~ (c) Purchaser has received copies of all information listed under (b) above. ~ (d) Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. ~ (e) Purchaser has (check one below): [] Received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards (If checked, see Section II below); or [~ Waived the opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and~or lead/based paint ha~,~rds. Real Estate Licensee's Acknowledgment (initial) (f) Real estate licensee has informed the seller of the seller's obligations under 42 U.S.C. 4852(d) and is ware of licensee's responsibility to ensure compliance. Certification of Accuracy The following parties have reviewed the information above and certify, to the best of their knowledge, that the information provided by the signatory is tree and accurate. Margueritte C. Hanle SelIer Don Collier, President, New Hope EDA Date Purchaser Date Seller Daniel J. Donahue, Executive Director, New Hope ED~ Date Purchaser Date Real Estate Licensee Date Real Estate Licensee Dab o.~tlagency (Initial only if first box under Purchaser's Acknowledgment letter (e) above is checjft, dd/'~'' . '..~ct is contingent upon a risk assessment or an inspection of the property for the presence of le paint and/or lead.-.b_.a~e.~i~..~ s to be conducted at the purchaser's expense. The assessment or inspecti~~~:nand/°r ten (10)/ cm~n~,.~days after acceptance of the Purchase Agreement. This contin~ll be denm~d removed, and the -(_strike out onej- the Purchase Agrcemant shall be in ~and effect, unless P~ng or acting on behalf of If of Schedule "A" Legal Description That part of Lot Th/try-nme (39), Auditor's Subdivision Number 226. Hennepm Count3', Minnesota, described as follows: Commencing at a point on the West line of said Lot 39. 200 feet South of the Northwest comer thereof, which point is the pomt of beginning of the tract to be described; thence continuing South along said West line 100 feet: thence East and parallel to the North line of said Lot 39, 200 feet; thence North and parallel with West line of said Lot 39. 100 feet: thence West and parallel with the North line of said Lot 39. 200 feet: to the point of beginning. Files of Regisuar of Titles. Count3.. of Hennepm. State of Minnesota. 4. Property located at 5. in the City of New Hope County of Hennepin State of 6. attached sheet (the "Property") SEE ATTACI-I£D SCH'EDULE A 7. Miller/Davis CO. ~ St. Paul, MN 651-642-198~ Form 1519SS PRIVATE sEWER SYSTEM DISCLOSURE This form approved by the Minnesota Associaaon of REA!_TORS~, which bisc~alms any liability arising out of use or m~suse of Ibis form. © 2002, Minnesota A.ssOC~at~on of REALTORS~, Ei:iina. MN 1. Date 2. Page I of __ Pages: THE REQUIRED MAP IS 3. A'I-~ACHED HERETO AND MADE A PART HEREOF 5531 Sumter Avenue North Minnes0L , legally descriOed as follows or 8. This disclosure is not a warranty of any kind by the Seller(s) or any Licensee(s) representing or assisting any Parly{s) in th~s 9. transaction, and is not a substitute for any inspections or warranties the Party(s) may wish to obtain 10. BUYER(S) AND SELLER(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE AND/OR INSPECTIONS 11. OF THE SEWER SYSTEM AND TO PROVIDE FOR APPROPRIATE PROVISIONS IN A CONTRACT BETWEEN 12. BUYER(S) AND SELLER(S) WITH RESPECT TO ANY ADVlCEIINSPECTIONIDEFECTS. 13. SELLER'S INFORMATION: The following Seller disclosure satisfies MN. Statutes Chapter 115.55. The Seller discloses the 14. following information with the knowledge that even though this is not a warranty, prospective Buyers may rely on this information 15. in deciding whether and on what terms to purchase the Property. The Seller(s) authorizes any Agent(s) representing any party(s) 16. in this transaction to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of 17. the Property. 18. Unless the Buyer and Seller agree to the contrary in wdfing before the closing of the sale, a Seller who fails to disclose the 19. existence or known status of an individual sewage treatment system at the time of sale, and who knew or had reason to know of 20. the existence or known status of the system, is liable to the Buyer for costs relating to bringing the system into compliance with 21. individual sewage treatment system rules and for reasonable attorney fees for collection of costs from the Seller. An action under 22. this subdivision must be commenced within two years after the date on which the Buyer closed the pumhase of the real property 23. where the system is located. 24. Legal requirements exist relating to vadous aspects of location and status of individual sewage treatment systems. Buyer cs 25. advised to contact the local unit(s) of government, state agency or qualified professional which regulates individual sewage 26. treatment systems for further information about these issues. 27. The following are representations made by the Seller(s) to the extent of the Seller(s) actual knowledge. This information is a 28. disclosure and is not intended to be part of any contract between the Buyer and Seller. 29. PRIVATE SEWER SYSTEM DISCLOSURE (CHECK THE APPROPRIATE BOX.) 30. r~. The Seller certifies that the Seller does not know of any private sewer system on or serving the above described real 31. property. (If this option is checked, then skip to the last line and sign and date this statement.) 32. ~_~ The Seller certifies that the following private sewer system is on or serving the above described real property. 33. TYPE (Check appropriate box(es) and indicate Iocation~on attached MAP) 34. ~ Septic Tank: ~ with drain field _~ with mound system ~ seepage tank -- with open end 35. == Sealed System (holding tank) -- 36. ~ Other (Describe): 37. Is the sewer system(s) currently in use? Yes__ No __ 38. NOTE: If any water use appliance, bedroom or bathroom has been added to the Property, the system may no longer 39. comply with applicable sewage treatment laws and rules. 40. Is the sawer system(s) in compliance with applicable sewage treatment system laws and rules? Yes No 41. When was the sewer system installed? Installer Name/Phone: 42. 43. Where is tank located? 44. What is tank size? When was the tank last pumped? 45. Where is the drain field located? 46. What is the drain field size? 47. Describe work pe~ormed to the system since you have owned the Property: 48. _ How often is tank pumped? 49. Date work performed/by whom: 50. Is sewer system entirely within Property boundary lines, including set back requirements?, 51. s the system shared'~ How many units on system Annual fee?. 52. Comments: 53. On this Property:, 54. Approximate number of: people using the sewer system, showers/baths taken per week wash loads per week __ 55. Distance between well and sewer system: .. 56. Have you received any notices from any government agencies relating to the sewer system? Yes. No ~ 57. If "Yes", see attached notice. -- MN-PSSD (8/02) ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER Form 1519SS CRev. 8/02) 59. Are there any known defects in the sewer system? Yes__ No 60. If yes, please explain PRIVATE SEWER SYSTEM DISCLOSURE 58. Page 2 61. 62. ~ATEMENT: (To be signed at brae of listing) elle~~ge the above Private Sewer System Disclosure and MAP anc~ aut~',,= 65~fion to prospective Bu.vers. 66. ~l,'S'~ie r ) (Date) (Selier) 67. BUYER'S ACKNOWLEDGMENT: (To be signed at time of pumhase agreement) 68. I/We, the Buyer(s) of the Property acknowledge receipt of the Private Sewer System Disclosure and agree that no representation 69. regarding the condition of the Private Sewer System have been made, other than those made above. LISTING BROKER AND 70. LICENSEES MAKE NO REPRESENTATIONS AND ARE NOT RESPONSIBLE FOR ANY CONDITIONS EXISTING IN THE 71. PRIVATE SE'WER SYSTEM. 72. (Buyer) Don Collier, Presidcrlt, New Hope EDA (Date) (Buyer)Daniel .L Donahuc. Executtve Director. Ney,' Hopc EDA (Date, 73. SELLER'S ACKNOWLEDGMENT: (To be signed at time of purchase agreement) 74. AS OF THE DATE OF THE ACCEPTANCE OF THE PURCHASE AGREEMENT, I/We, the Seller(s) of the above Property, agree 75. that the condition of the private sewer system is the same as noted above, including changes indicated above which have been 76. initialed and dated· 77. (Seller) Margueritte C. Hanle (Date) (Seller) 78. ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER Schedule "A" Legal Description That part of Lot Thirty-nme (39). Auditor's Subdivision Number 226. Hennepm CounD-. Mnmesota. described as follows: Commencing at a point on the West line of said Lot 39, 200 feet South of the Northwest corner thereof, winch point is the pomt of beginning of the tract to be described: thence continuing South along said West line 100 feet: thence East and parallel to the North line of said Lot 39. 200 feet: thence North and parallel with West line of said Lot 39. 100 feet: thence West and parallel with the North line of said Lot 39. 200 feet to the point ofbegnmmg. Files of Regiswar of Titles. Count. of Hennepm. State of Minnesota. Miller/Daws Co. ~ St. Paul. MN 651-642-198.5 ,~l~&~,~' Form 1519WD (R~'. l 0 '0.~. ' WELL DISCLOSURE STATEMENT This form approved Dy We Minnesota Association of REALTORS~, which o~sctmms any liabil~t,y ansing out of use or rmsuse of wis form © 2003, Minnesota Assooabon of REALTORS®. E0~na. MN 1. Date 2. Page 1 of__ Pages: THE REQUIRED MAP IS 3. ATTACHED HERETO AND MADE A PART HEREOF 4. Minnesota Statutes Sec. 1031.235 requires that before signing an agreement to sell or transfer real property, Seiter 5. must disclose information in writing to the Buyer about the status and location of all known wells on the property. Tins 6. requirement is satisfied by delivering to the Buyer either a statement by the Seller that the Seller does not know of 7. any wells on the property, or a disclosure statement indicating the legal describtion and county, and a map showin.c 8. the location of each well. In the disclosure statement the Seller must indicate, for each well, whether the well is m 9. use, not in use or sealed. 10. Unless the Buyer and Seller agree to the contrary, in wdting, before the closing of the sale, a Seller who fails to 11. disclose the existence Or known status of a well at the time of sale and knew or had reason to know of the ex~stence 12. or known status of the well, is liable to the Buyer for costs relating to sealing of the well and reasonable attorney fees 13. for collection of costs from the Seller, if the action is commenced within six years after the date the Buyer closed the 14. purchase of the real property where the well is located. 15. Legal requirements exist relating to various aspects of location and status of wells. Buyer is advised to contact the 16. local unit(s) of government, state agency, or qualified professional which regulates wells for further information about 17. these issues. 18. Instructions for completion of this form are on the reverse side. 19. PROPERTY DESCRIPTION 20. Street Address 553 ! ~umter Avenue North City 21. LEGAL DESCRIPTION: ~F.E ATTACHED SCHF. I~UL£ A 22. 5542~ . Hcnnepil~ _ _ Zip £'oun~, 23, 24. 25. WELL DISCLOSURE STATEMENT 26. (Check the appropriate box.) 27. [] The Seller certifies that the Seller does not know of any wells on the above described real property. 28. (If this option is checked, then skip to the last line and sign and date this statement.) 29~ [] The Seller certifies that the following wells are located on the above described property. 30. MN Unique Well Year of Well IN USE NOT IN SEALED 31. Well No. Depth Const. Type USE 34. Well 3 [] [] [] 35. NOTE: See definition of terms "IN USE," "NOT IN USE," and "SEALED" on lines 83-92. If a well is not in use, 36. it must be sealed by a licensed well contractor or a well owner must obtain a maintenance permit from the 37. Minnesota Department of Health and pay an annual maintenance fee. Maintenance permits are not 38. transferable. If a well is operable and properly maintained, a maintenance permit is not required. 39. OTHER WELL INFORMATION 40. Date well water last tested for contaminants: Test results attached? Yes~-~ NoL___~ 41. Comments: 42. Contaminated Well: Is there a well on or serving the property containing contain nated water? Yes[*--~ No~-'-] 43. SEALED WELL INFORMATION 44. For each well designated as sealed above, complete this section. 45. When was the well seal.ed? /- ~ -, 0 46. Who sealed the well? ,i~ ...["~"~O/~ ~/~,// O~','/[#"~ ~ · ,Z',~, 47. Was a Sealed Welt Report filed with the Minnesota Department of~Health~ Yesj 48. MAP ' 49. Complete the attached MAP showing the location of each well on the real property. 50. This disclosure is not a warranty of any kind by the Seller(s) or any Licensee(s) representing or assisting any 51. party/ies in this transaction, and is not a substitute for any inspections or warranties the party/les may wish to obtain. 52. CERTIFICATION BY SELLER 53. I certify that the information provided above is accurate and complete to the best of my knowledge. 54. Mar~tueritte C. Hanle (SalTer or Designated Representative) (Date) (Seller or Designated Representative) (Date) 55. BUYER'S ACKNOWLEDGMENT 56. Don Collier President, New Hope EDA (Buyer) ' Daniel J. Donahuc Executive Director New Hope EDA (Date) (Buyer) ' , (Date) 57. MN-WDS-1 (10/03) ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER WARNING: UNAUTHORIZED COPYING OF THIS FORM PROHIBiTE~. WELL DISCLOSURE STATEMENT 58. Page 2 of Pages. 59. INSTRUCTIONS FOR COMPLETING THE WELL DISCLOSURE STATEMENT 60. DEFINITION 61. A "well" means an excavation that is drilled, cored, bored, washed, driven, dug, ietted, or otherwise constructed if the 62. excavation is intended for the location, diversion, artificial recharge, or acquisition of groundwater. 63. MINNESOTA UNIQUE WELL NUMBER 64. All new wells constructed AFTER January 1, 1975 should have been assigned a Minnesota unique well number by the 65. person constructing the well. If the well was constructed after this date you should have the unique well number in your 66. property records. If you are unable to locate your unique well number and the well was constructed AFTER Januar7 1, 67. 1975, contact your well contractor. If no unique well number is available, please indicate the depth and year of 68. construction for each well. 69. WELL TYPE 70. Use one of the following terms to describe the well type, 71. 72, 73. 74. 75, 76. 77. 78. WATER WELL: A~water well is any type of well used to extract groundwater for private or public use. Examples of water wells are: domestic wells, drive-point wells, dug wells, remedial wells, and municipal wells. IRRIGATION WELL: An irrigation well is a well used to irrigate agricultural lands, These are typically large diameter wells connected to a large pressure distribution system. MONITORING WELL: A monitoring well is a well used to monitor groundwater contamination. The well is typically used to access groundwater for the extraction of samples. DEWATERING WELL: A dewatering welt is a well used to lower groundwater levels to allow for construction or use of underground spaces. 79. INDUSTRIAL/COMMERCIAL WELL: An industrial/commercial well is a nonpotable well used to extract 80. groundwater for any nonpotable use including groundwater thermal exchange wells (heat pumps and heat loops). 81. WELL USE STATUS 82. Indicate the use status of each well. CHECK ONLY ONE (1) BOX PER WELL. 83. IN USE: A well is "in use" if the well is operated on a daily, regular, or seasonal basis. A well in use includes a well 84. that operates for the purpose of irrigation, fire protection, or emergency pumping. 85. NOT IN USE: A well is "not in use" if the well does not meet the definition of "in use" above and has not been 86. sealed by a licensed well contractor. 87. SEALED: A well is "sealed" if a licensed contractor has completely filled a well by pumping grout material 88. throughout the entire bore hole after removal of any obstructions f~om the well. A well is "capped" if it has a metal 89. or plastic cap or cover which is threaded, bolted, or welded into the top of the well to prevent entry into the well, A 90. "capped" well is not a "sealed" well. 91. 92. If the well has been sealed by someone other than a licensed well contractor or a licensed well sealing contractor, check the well status as "not in use". 93. If you have any questions, please contact the Minnesota Department of Health, Well Management Section at (651) 94. 215-0819 (metropolitan Minneapolis-St. Paul) or 1-800-383-9808 (greater Minnesota). 95. MN-WDS-2 (10/03) ORIGINAL COPY T_O LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER Schedule "A" Legal Description That part of Lot Thil'ty-nme (39), Auditors Subdivision Number 226, Hennepm Count3.', Mtmaesota. described as follows: Commencing at a point on the West line of said Lot 39, 200 feet South of the Northwest comer thereof, winch point ts the point of beginning of the tract to be described; thence continuing South along said West line 100 feet: thence East and parallel to the North Line of said Lot 39, 200 feet; thence North and parallel w/th West line of said Lot 39. I00 feet: thence West and parallel with the North line of said Lot 39, 200 feet to the point of beginning, Files of Registxar of Titles, Count3.' of Hermepm, State of Minnesota. 2. Please use the space below to sketch the real properly being sold and the location of each Miller/Davis Co. ~ St Paul. MN 651-642-1988 ~j~,~' Form 1519 MAP (Rev. 7/94) PRIVATE SEWER SYSTEM AND/OR WELL LOCATION MAP This form approved by the Minnesota AssOCiation of REALTORS®, which d~sc. Jaims any Ilabild~ arlslrlg OUt of use or misuse of this form. Date Page 1 of Pages __ SEWER SYSTEM ~WELL on the Properb.. (c_.neck all that apply) 3. IncJude approximate distances from fixed reference points such as streets, builOings and landmarks. 4. Propelly located at: 5531 Sumter Avenue North_ New Hope Minnesota 55428 ,5o 4 . 6. Seller and Buyer Initial: SellerJs) A'I-rACN ADDITIONAL SHEETS AS NEEDED Buyerlsl 7. MN-PSSWM (7/94) ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER WARNING: UNAUTHORiIZED COI~ING OF ~ FORM PROHIBITED. ML$ DOUGLAS J. DEBNER2 GORDON L JENSEN~ CLARISSA M. KLUG GLEN A. NORTON STEVEN A. SONDRALL STACY A. WOODS OF COUNSEL LORENS Q. BRYNESTAD ~Real Property Law Specialist Certified By The Minnesota State Bar Association :Admitted in Iowa JENSEN & SONDRALL, P.A. Attorneys At Law 8525 ED1NBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443-1968 TELEPHONE (763) 424-8811 $ TELEFAX (763) 493-5193 e-mail law~j ensen-sondrall.com May 19, 2004 Ken Doresky Community Development Specialist City of New Hope 440 ! Xylon Avenue North New Hope, MN 55428 RE: Acquisition of 5531 Sumter Avenue Our File: 99.11303 Dear Ken: Attached please find the proposed EDA Resolution Approving Purchase and Relocation Benefits for consideration at the May 24, 2004 meeting relating to the EDA's purchase of 5531 Sumter Avenue North from Margueritte Hanle. Please attach to the resolution the Purchase Agreement as Exhibit A and Evergreen's relocation benefits analysis as Exhibit B. As you know, we are buying this property for $214,000.00. This amount is $19,000.00 more than the owner's $195,000.00 appraisal of the property. Previously, we had direction from the City Manager and a council member to propose an additional $20,000.00 to the owner if the additional amount would close the transaction. It is my opinion we are within that direction if the attached purchase Agreement is accepted. Also, we are still under the $219,900.00 purchase price for a comparable replacement property. Therefore, if the owner spends this amount on a new property we will still need to pay her a "differential payment" up to $5,900.00. As a result, it is my recommendation the EDA accept this offer to sell in accordance with the purchase agreement attached to the resolution. Very truly yours, Steven A. Sondrall, City Attorney, JENSEN & SONDRALL, P.A. sas~jensen-sondrall.com Enclosure(s) cc: Valerie Leone PAAttomey~SAS\l Client Files~2 City of New Hope\99-11303(hanle)~. Doresky ltr approving p~doc PRICE DIFFERENTIAL PAYMENT/ANALYSIS OFCOMPARABLE PROPERTIES Subject Comparable Comparable Comparable Property #1 Property #2 Property #3 Price (appraised) $189,000 $206,385 $219,900 $194,700 Address 5531 Sumter 6100 Winnetka Ave 4809 Flag Ave 3442 Florida Avenue ~ North Avenue North City New Hope New Hope New Hope Crystal Date of Inspection Style Rambler Rambler Rambler Rambler Construction Average Quality Average Average Average Actual Age/Eft. Age 1948 1968 1967 1955 Condition EGF Average Average Average Average No. of Units 1 I 1 1 No. of Rooms 6 9 11 7 No. of Bedrooms 4 4 4 4 Bedrooms Required No. of Baths 1.75 1.75 3 2 Above Ground 1,312 1,057 1,722 1,272 Finished sq ft Below Ground 576 865 800 616 Finished sq ft Total Finished Area 1,888 1,922 2,522 1,888 Basement Yes Full - finished Full - finished Full - Finished Bsmt- Types of Fin. Family Room, Family Room, Bedroom, Family Room, Rms. Laundry Bedroom, Den Amusement Room, Bedroom Work Shop. · Heat/Cooling Gas FA / CA Gas FA / CA Gas FA / CA Gas FA / CA Fireplaces One None Two None Garage 1 - attached 2 - attached 1 - attached 2 - attached Lot Size 120x170 80x137 85x158 126x163 20,400 sq ft 10,960 sq ft 13,430 sq ff 20,538 scIff Neighborhood E/B Suburban Suburban Suburban Suburban Schools NA NA NA NA Public NA NA NA NA Transportation Church NA NA NA NA Place of NA NA NA NA Employment Water 1. Type 2. 1. City 1. City 1. City 1. City Adequate 2. Yes 2. Yes 2. Yes 2. Yes Sewer 1. Type 2. 1. City 1. City 1. City 1. City Adequate 2. Yes 2. Yes 2. Yes 2. Yes Other Comments: - $5,000 - garage + $6,375 - above * These amounts ground finished factored in to the - $2,890- below comparable price ground finished + $5,000 - lot size - $2,000 - fireplace Comparable Price $219,900.00 Project Price $189,000.00 Difference = $30,900.00 Moving Expenses + $2,350 Estimated Closing Costs + $4,500 Total Benefit -- $37~750.00 Project property has been negotiated up to $214,000.00. Differential payment at this time stands at $5,900.00 R/W Agent: Karl Klassen Date: 1/22/04 Hanle 30120323a Pro ~d~n~ Query Appra~$al~ for Busy Lenders DATA SUMMARY Client: City of New Hope/Ken Doresky 4401 Xylon Avenue N. New Hope, MN 55428.4898 Borrower: NIA Address: 5531 Sumter'~,Ve~-~ New Hope, MN 55428 Value: $189,000 Date: January 2, 2004 Appraiser: Gregory V. Callahan, Cert Resl Real Prop Client * -- File: Hanle Forsythe Fils: 30120323a FORS APPRAISALS, .LLC 222 EAST LFI'rLE CANADA ROAD, ST. PAUL, MINNESOTA 55117 (612) 486-g5501 FAX: (612)486-g732 Hanle UNIFORM RESIDENTIAL APPRAISAL REPORT Pite No, 30120323a ~ar~s 5531 Sumter Avenue oh, New Hope Stare MN Z~Co~ 55428 Auditors subd no 226 Lot 39 BIk S 100 ft of N 300 ft of W 200 fl Coon,'v Hennepin A.~ess~s Parcel No. 0511821330026 Ta~ea~ 2003 RE Tase~S 1,479.32 Speoala.~e.ment~$ None I~ower N/A Cu~TentOwfler Hanle. Marcjuentte o,-~_;~n~ IX~ o~, I 'lena~: ~,~-:i : J Leasehold ! PmfectType I PUD '~ C,o.o~um(HUD~,'Ao.~,, HO~ None ,~.' Ne~nDornoocicrProtectName N/A MapReterence D2-91 Census Tract 5120-021502 Sale R'~ce $ N/A Date of Sale N/A and $ amount et Icon c~a'oe.%,concess.,ons to De ue*o. Dv seaer N one ~.enoertC,enf Cit~ of New Hope/Ken Doresky A~ores~ 4401 Xylon Avenue N.. New Hope, MN 55428-4898 Callahan. Cer~ Resl Reap Prop Acloress 222 Little Canada Road. Little Canaoa MN 55117 Local~o~, ~==t I. XOan~X~__.l Suourean ,,~ Rurai I Predominant / Single family houalng t Preaent lane uae % ~ i. and use change__ Built up ~=l Over 75%~,~ 25-75% ~ Unoer 25% ! occupancy t PRtC~: AGE i $1o~. (.~ t One ta~b 60~ Growth rate'.~..I Ra~d X~ Stabte Slow Owner ! 95 Lo* I I 2-4 tarab 5c/~ i __l In crocas~ ' ~ values~ Ina'easmg ! I Stable Deci~ng '~enant i 350 H~,qr 65 ! ~V~J~arr.'~ 15% i 'rd NOt Apphcable Deman~supply ShOlage X~ tll~a,~= O~'s~ ~(0-5%) I PreOor~nant r Comme'oa ~v.~,,...~. j 180 35 iVacant Note: Race and the racial composition of the neighborhood are not appraisal factors. Nmghhornooa bounclarles ct~aractenst~cs The subiect's nerghborhood boundaries are Brooklyn Park to the north Golden Valley tr County Rd. 81 to the east and Hiqhway 169 to the west. Thts is an established area Factors that affect the marl~etabihty ot file proPerbes in the neighborhood (~roxlmlty to employment anti amemt~es, employmenl stabd*ly, apDeal to market e Sumter Avenue ~s a quiet residential street. Bass Lake Road, a local traffic artery ts Wtmn 1/8 mile and offers access to .ancl recreation Property values nave been ~ncreasmq Demand for the conform to the surroundmq homes. The neiqhDorhood has no apparent adverse factors ect's marketability See attached for addittonal comments. Market conditions in the sub/ecl neighborhood (including support for the above conclusions related to the I)'end et ~ values. OemanO.,supply, eno ma`~el~ng - - such as data on competitwe properties for sale in the neighborhood, description of the prevalence of sales and fmancmg concessions, err ) For the subject's MLS marketing district #362, MLS statistics indicate that 87.40% of all listin,qs are sellinq with an time of 31 days. Sellers are receivinq 99.24% of the askin.q pnce. Financinq at the present time is 'available from a variety of soumes, which benefits both potential buyers an(~ sellers. Project In;c,~-~alion for PUDa (if applicable). - Is the developer/builder m control of the Home Owners' Association (HOA)? ~ YES L.J NO · N~'oxJmale total number of units in the subject project N/A Apl~ox~ale total number of urals tu sale m the sub/ecl prelect N/A Describe common elements and recreational lacilitms: Not Applicable. Dimen=<~s 120X170 Sitearea Approx. 20400 Sq. Ft. (per county) Ce'ne'Lot L.~ Yes ~ No /S~zeT°lx~'al~y ~bv.Sl°peSAvg./20,400sFGently Specificzoning classification and clescription R-1 Sin,qle Family Residential / sheba Rectan,~ular 7-oniegcompliance ~ Legal ._~ Legalnc~:~n~(G'andfalha`eduse) [~lllegal ~] Nozomng t Drainage Adequate Hi~3hest & best use as improved: IX) Present use L ~ oma- use (explain) N/A ! Vmw Residential/Av.q Utilities Public Oth~ j Off-lite Improvements Type Pubtc l%valeI Latx:lsca~ng Avera,qe Qualit'~, Bectricit7 ~ 100 AMP CB I S~'eet Bituminous [] [] ~ Dnveway Su~ace Asphalt Gas ~ ..J Ca'b/gutta- Concrete I~ ~ / A~parenl easemenls Normal Utility san,a-/sawer ~ ' ~ S~'eat,ight~ Yes {~ ~ / stormsew~ l^l / AJle/ None ~ ~==] / FEMAZene "X" ~pOaie3/30/01 FEMA Map No 27053C-0192E Comments (apparenl adverse easementa~ encroachments, special assessments, shad areas, illegal or legal norlconformlng zomng, use, otc,) ~vements face east. Landsca in is avera e uali and avera e condition. The s~ct has a residential view. It is above considered to estimate the market value ~eaSq. Ft 960__.~ ~oo~ Conc ~ ~oe .~ ~"',"2., 4 '~"'"" Ap~. 60% ce,,,.~ ~ X~ · ~~"?" I .asement /U"/o J Ce,ng N/A Wall~ hnnr !II1~ ~ne~auvm~zs. ~e[a~ I S~,mI~TeN/A ........ ~Xi I~ ~ ~ ~,~?' ..... I ~..,~.N.!A J Wa,,s N/A ~ Con: Damboeas .N/A ~ Fk~ Concrete NoDe -- Settlement N/A ~ Out.~eEn~ N/A ~ -- N/A Infester,on N/A .L ~led INTERIOR Mate~als/C~ti~ HEATING KITCHEN EQUIP. ATrlc AMENITIES CAR STORAGE: Floors NO Int. Type FA Refrigerator None F~biaca(s)~ . None [] We~s N/A Fuel Gas I~ng~)ven Stoas Pabo Tdm/F'mish N/A Garege 1 # of cars D~sms~ D'opStair Dec~ Yes A.ac~ed 1 Car Bath Fiocr N/A COOLING Dishwash~ Scuttle Po~c~ Detached Bath WamScot N/A Cenb-a! Yes Fa~Hood Fkxx Fence Ruill.ln Doers N/A elba- NO i Micruwave Heated Pool ~ ~(~ped=_! energy efficient items, etc.): The sub'ect has an avera e efficJenc as force air heatin s stem. The Condition of the improvements , afc.: immediateAdVerse envi~onmenlalvicinity of theconditi°nS~ubject(Such as, but not limited to, hazardous wastes, toxic substances, etc.) present in the Improvements, on the dire, or in the PAGE 1 OF 2 Valuation Section I UNIFORM RESIDENTIAL APPRAISAL REPORT File Hanle 30120323a ESTIMATED SffE VALUE .................. : S .. ESTIMATED REPRODUCTION COST-NEVi OF IMPROVEMENTSr Da~lmg 1,312 Sq Ft. G$__ =$ Bsmt. 960 sq Ft. @ $__ : ~ 336 so Ft. ~ $~ Total Estmmaled Cost New 55,000 0 0 = 0 =S 0 Esl Remam~Econ. Lite :$ 0 Dm'ec~te~ Value ot lmprovemems ........ = $ 0 ! 'As-is' Vaue of Site Improvements ............... = $ INDICATED VALUE BY COST APPROACH * = $ 55.000 ~' ITEM t SUBJECT I COMPARABLE NO. 1 The site value as vacant is based on market trends Total economic life of 100 yrs COMPARABLE NO 2 COMPARABLE NO 3 5531 Sumter Avenue 16008 Winnetka Avenue N. 7819 60th Avenue N. A~rass New Hope New Hope Sales I:~ice Pnm/Gass L~..~-ea Data Venfical~on Sou"oas VALUE Saes or F,-.anang C~nc~ssmns Date of Sate/Time Loc. ab'on Site 'view t New Hope Approx. 3/4 Mile N/A s 0.00 156.21 c~ Inspection MLS/County on Market DESCRIPTION DESCRIPTION N/A Conv/0 Pts N/A Seller N/A Clsd 8/02 Suburban Similar Neigh , 120x170 100x105/Inf. 5~000 Residential Similar View , Yrs. Rambler/Gd Approx. 1/2 Mile 183~700 s s 122.83 MLS/County 17 Days on Market DESCRIPTION Conv/0 Pis By Seller Clsd 4/03 : Similar Neiqh. Fee Simple 94x 138/Inf. Similar View Rambler/Avq. ;imilar Quality : 43 Years : ] 5621 Wisconsin Avenue !New Hope ! Approx 1/3 Mile 198~0001 $ 201.506) I$ 133.36 ~ 3,000 ! MLS/County ! 33 Days on Market DESCRIPTION i ' ~') $ ~'""~' Conv/0 Pis J By Seller : I CIsU 10/03 Similar Neiqh Fee Simple 75x 180/Inf 5.000 I Similar View Similar Quality Years C43,di~on I Cond. Similar Cond. Cond. Above C~a~e 1,500 : 3,000 RoomC~unt 2~: 6: 4: 6: 3; 1.50i 7: 3: 1.00: I~,.manl & ~-.-~.~ FulI/EqL FA C/Air Jnknown .;.._ Paq:n, Palm, Deck. Deck Deck : Deck, Porch : -2,000 None N/A : None None NIA N/A : N/A Other N/A N/A ; None t Rambter/Avq S~mllar Quality 52 Years Cond 7: 3; 2.00 73% of 1st FI. Part Garage : Full/Eql. 576 SF Fin. ;imilar Utility ; Similar Utility FA C/Air FA ClAir : ~as FA C/Air : oncealed Unknown : Unknown AdjuaedSa, Rice C='OSS: 11% c~oss: 15% 0% Nor. -5% Core,his on 8e~e~ ~T~a~n (in~udmg the ~bject ~op~'s ~mpatibility to the neigh~ood, etc. ): -5.000 N/A None 1,500 C~oss: 12.31% $ Room count adiustments are included in finished ITEM .~ ~ARABLE NO. 1 ~ COMPARABLE NO2 T m Date, l~icemndData IN/A~~i. ~ ..... J COMPARARLE NO 3 'so.~r~r~.~ IN/A l~7~ ..... . o.,~ u u I~ comps Sales Grid ~See C~d · [ i N/A t N/A N/A 1 ~;~/~~~2~Rec°rd` J MLS/CounW.Records tMLS/County Recor, s ~~=~:n and .... n~ mnnr~ ........... ~--~ eo,~ ~ ....... ~ me sup ecl nas not Peen listed or transferred in the ast 36 OMPARI~N A~ROACH ~ This ;-------;_---J is made I~ 'ask' ~ .,,h~,." -r ~' "' ,,-~a I~1/~ ,l~o. xGmssRentMuami6. N/A =$ n ccwmm=~: ~. This is a "Revised Summa A ralsa Re orr No hablh .................. ' ". ' "is ,-ina R.mncilia, m: Indicated value b sales corn ari · - ,.. . mm.or a ,-~enor Ins ction, of Ih lude. Gu uu~ ~mui u)~. oue lo Ilmll~a mamet data. d ~ The purP°qe °f this aPpratsal is Io esbmate the maimt value of ihe mai ix. oporty ihat is tl~. =ubi...~ of ltd.. ' '~'~"~'"m-~"~'FtrTHATISTHE.~JBJECTOFTHiSRE~OiTi.,A~OF J_anuar~ 2~ 2004 (V~IICH IS THE DATE OF iN~PE. CTiON AND THE EFFECTiV~ DATE OF THiS REP~ .ro BE $ 18g.000 L APPRAJSER~' ~ . ~gnat~e /~'/~-.~'d~ /_/~-~/~, SUPERV~O~YAPPRAJSER(ONLYiFREQUiRED): Name Gre.q~,~/. Callahan, Cert Resl Real Prop Signaaxe [~d ~D~ Not ..Dae Relx~ ~-~ Januanf 2, 2003 Name State Certifma~on # 4002346 _ .Date Repro ,=,= # State MN Slate C~.;'-.. r~.~,ma.= ~m ~ ~ Slate Or Slate License # Stale PAGE 2 OF 2 State Forsythe Appraisals, LLC Borrower: N/A ~ 5-~1 Sumter Avenue SUBdECT PROPERTY PHOTO ADDENDUM File Nc 30120323a Case No.:Hante St: MN Zip: 55428 Lenaer City of New Hope/Ken DoresKv FRONT VIEW OF SUBJECT PROPERTY REAR VIEW OF SUBJECT PROPERTY STREET SCENE COMPARABLE PROPERTY PHOTO ADDENDUM Borrower: N/A File No 30120323a Address: 5531 Sumter Avenue Case No: Hanle CiW: New Hope St; MN Zip: 55426 Lender Citv of New Hope/Ken Dores~,~ COMPARABLE SALE #1 · ' 6008 Winnetka Avenue IX ..~ ?"'i New Hope COMPARABLE SALE #2 7819 60th Avenue N. New Hope COMPARABLE SALE #3 5621 Wisconsin Avenue New Hope IBorrower: N/A File No.' 30120323a Ad(tress: 5531 Sumter Avenue Case No: Hanie City: New Hope St: MN Zip: 55428 Lencler C~ty of New Hope/Ken Doresk~ ADDENDUM Borrower: Property Adclress: 5531 Sumter Avenue F~le No.: 30120323a C~ty: NewHope State: MN Z~p: 55.428 Lencler: City of New Hooe/Ken Do~esl(y ADDITIONAL FEATURES: In addition, the subject has: an attached one car garage, deck and central air. COMMENTS ON SALES COMPARISON: All comparables have smaller lots and are inferior in site value. As noted during a drive by inspection, comparables two and three are superior fn exterior condition. Comparable one has 1.5 baths vs the subject two full baths. It is inferior in above grade room vatue. Comparable two has one less bath and is infedor in above grade room value. TRANSMI'I-FAL LETTER: The subject was inspected on January 2, 2004. The estimated market value as of January 2, 2004 (effective date), is $189,000. The property was appraised by Gregory V. Callahan, Licence Number 4002346, Certified Residential Real Property Appraiser. A certified residential real property appraiser may appraise residential property or agricultural property without regard to transaction value or complexity. This appraisal report is a "Summary Appraisal Report". It conforms to the 1997 Uniform Standards of Professional Appraisal Practice. No responsibility has been assumed for matters which are legal in nature, nor has any opinion on them been rendered, other than assuming marketable title. Liens and encumbrances, if any, have been disregarded and the property was appraised as though free of indebtedness. Please feel free to call us if you have a question. ADDITIONAL COMMENTS: 1. The purpose of the appraisal is to estimate the market value of the subject property for litigation purposes. 2. The legal description of the subject property can be found on page 1 of the 1004 form. 3. The reasonable marketing period for the subject property is under 90 days. 4. According to the county and the MLS system, the subject property has not been transferred in the 5. The subject property was inspected on January'2, 2004, the report was prepared on January 2, 2004, the effective date of the appraisal is January 2, 2004. 6. The subject is an existing structure. This appraisal is made "as is." 7. Personal property was not included in the appraised value. 8. We have considered all three approaches to value. The income approach was not utilized due to lack of reliable rental data of single family homes in this neighborhood. The cost approach was considered but not considered applicable, therefore it was not included. 9. The subject is a single family residential property. Revenues, expenses, and/or vacancies do not apply. 10. Current and future employment or compensation is not contingent upon the reporting of a value or direction in value that favors the cause of the client, the amount of the value ADDENDUM ~o~owec N/A F~e hie 30120323~ ~r.,oper'iy AOOress: 5531 Sumter Avenue Case No.: Plame City: New Hope S~ale: MN LenOer: City of New Ho~oe/Ken Dores~y 55428 estimate, the attainment of a stipulated result or the occurrence of a subsequent event. 11. This appraisal report was completed in conformity witt~ the Uniform Standards of Professional Appraisal Practice. 12. If the photos included in this appraisal are digital/electronic images, they have not been enlargecL enhanced, or altered in any way. 13. If electronic/digital signatures are used, it has been ruled acceptable appraisal practJce by USPAP. 14. The appraiser certified that if this appraisal included an electronic/digital signature it ,s maintained and controlled by the appraiser completing the report. 15. The subject was originally inspected on December 12, 2003 (per client request - dr,va by inspection only - no interior inspection at this time) GC Ad~em:l~m Page 2 ~ 2 7940 5426 5427 5420 :" 5421 5416 ~. 5417 5.410 ~ 5411 · :- J~lJltl'~lil~ 56TH AVE N 5552 5557 5551 7;]01 5524 5520 / I .,L- ................. :.....- /.= ............ "'--_.. ~ ~ ~*~ ~ .- ~ . 7825 ..... ~ '~,.~ 218 ~ _ ...~. : , ~, -. 5~7 . , 5 :. ~ · ~ , -< ; .- ~5212 ' ', I J ' t ' -' f k-~ :,~z~ ~ ~ ..... ; ._~ -...~_ i ~ r - ~-~1 ~ ',.. '-:,, ; ..- ~ ~ , City-Owned Properties (5-14-04) 1. 5340 Winnetka Ave. N. 2. 5400 Winnetka Ave. N. 3. 5406 Winnetka Ave. N, 4. 5410/12 Winnetka Ave. N. g. 5420 Winnetka Ave. N. 5422 Winnetka Ave. N. . 7' 5434 Winnetka Ave. N. g. 5440 Winnetka Ave. N. · 5446 Winnetka Ave. N. 10. 5500 Winnetka Ave. N. 11. 5506 Winnetka Ave· N. 12. 5512 Winnetka Ave. N. 13. 5518 Winnetka Ave. N. 14. 5524 Winnetka Ave. N. 15. 5532 Winnetka Ave. N. 16.5550 Winnetka Ave. N. 17. 5519 Sumter Ave. N. 18. 5520 Sumter Ave. N. 19. 5530 Sumter Ave. N. 20. 5538 Sumter Ave. N. 21. 5546 Sumter Ave. N, 22. 5559 Sumter Ave. N. 23. 7601 Bass Lake Road Ext. 24. 7603 Bass Lake Road Ext. 25. 7605 Bass Lake Road 26. 7609 Bass Lake Road 27. 7621 Bass Lake Road Ext. 28. 7643 Bass Lake Road 29. 7801 Bass Lake Road Purchase Agreements 1. 5537 SumterAve. N. 2. 7615 Bass Lake Road