082304 EDA CITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
August 23, 2004
President Don Collier
Commissioner Doug Andersen
Commissioner Sharon Cassen
Commissioner Mary Gwin-Lenth
Commissioner Steve Sommer
2.
3.
4.
Call to order
Roll oall
Approval of regular meeting minutes of August 9, 2004
Resolution modifying the restated redevelopment plan and tax increment financing
plans for redevelopment project no. 1 and 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); creating
tax increment financing district no. 04-2 (special law) and adopting a tax increment
financing plan relating thereto (improvement project no. 776)
Resolution calling for public hearing regarding a proposed transfer of real property
(5501 Boone Avenue North) (improvement project no. 776)
Resolution approving purchase agreement - 5207 Pennsylvania Avenue North
(improvement project no. 775)
7. Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes
Regular Meeting
August 9, 2004
City Hall
CALL TO ORDER
ROLL CALL
APPROVE MINUTES
IMP. PROJECT 770
Item 4
MOTION
Item 4
EDA Meeting
Page 1
President Collier called the meeting of the Economic Development
Authority to order at 8:48 p.m.
Present: Don Collier, President
Sharon Cassen, Commissioner
Mary Gwin-Lenth, Commissioner
Steve Sommer, Commissioner
Absent: Doug Andersen, Commissioner
Motion was made by Commissioner Cassen, seconded by Commissioner
Gwin-Lenth, to approve the Regular Meeting Minutes of July 26, 2004.
Voting in favor: Collier, Cassen, Gwin-Lenth, Sommer; Voting against:
None; Absent: Anderson; Abstained: None. Motion carried.
President Collier introduced for discussion Item 4, Motion authorizing staff
to proceed with the burial of overhead utilities on the east side of Winnetka
Avenue between 53rd Avenue North and the north side of Bass Lake Road
(improvement project no. 770).
Ms. Amy Baldwin, community development assistant, stated staff is
requesting that the EDA approve a motion authorizing staff to proceed with
the burial of overhead utility lines on the east side of Winnetka Avenue
between 53ra Avenue North and the north side of Bass Lake Road. She
stated Xcel Energy's estimate is $100,624 which is nearly $50,000 less than
the city's original estimate of $150,000. The project will be completed in
conjunction with the installation of the new sidewalk around the perimeter
of the Winnetka Green project.
Discussion ensued regarding the utilization of tax increment funding rather
than a surcharge. Mr. Dan Donahue, city manager, explained that a
surcharge could not be limited to the project area, therefore, rather than a
city-wide surcharge, staff recommends the use of TIF funds.
Motion was made by Commissioner Gwin-Lenth, seconded by
Commissioner Sommer, to authorize staff to proceed with the burial of
overhead utilities On the east side of Winnetka Avenue between 53,a
Avenue North and the north side of Bass Lake Road (improvement project
August 9, 2004
IMP. PROJECT 751
Item 5
no. 770). Voting in favor: Collier, Cassen, Gwin-Lenth, Sommer; Voting
against: None; Absent: Anderson; Abstained: None. Motion carried.
President Collier introduced for discussion Item 5, Update on Winnetka
Green phase III expansion and motion authorizing staff to proceed with
appraisals and relocation estimates on eight properties located within the
phase III expansion area (improvement project no. 751).
Mr. Kirk McDonald, director of community development, explained his
desire to update the EDA regarding the discussions with the eight property
owners impacted by the proposed Phase III expansion. He stated staff is
coordinating individual meetings with the eight property owners. Six of the
eight property owners are in favor of the project and two property owners
would reluctantly sell. He stated during the meetings he covered the same
information (asked whether the property owner would sell for an agreed
upon price, notified property owner of relocation benefits, answered any
questions, and discussed timing and the next steps of the process).
At this time, staff is requesting authorization to proceed with appraisals and
relocation estimates for the eight properties. He explained staff's intent to: 1)
coordinate with Ryland on revised plans; 2) conduct a neighborhood
meeting about the expansion of the project; 3) coordinate with Krass
Monroe and Ryland on amended redevelopment contract and the TIF
District modification; and 4) coordinate on planning steps necessary to
amend PUD and plat.
Mr. McDonald noted that Ryland would like an answer from the city by the
end of September as Phase li would be impacted by Phase III.
President Collier cautioned against making a commitment for Phase III
prior to approval of a concept plan.
Mr. Steve Sondrall, city attorney, noted the EDA is not entering a
contractual obligation by obtaining the appraisals. He noted it would be
beneficial to determine the appraised values in order to start the negotiation
process. He noted the appraisal information would be shared with the
property owner, but no offer would be extended until after an agreement is
reached with the developer.
President Collier expressed concerns regarding Phase III without answers
regarding the plan, traffic, and neighborhood buffers.
Mr. Donahue, city manager, suggested authorizing the appraisals with the
understanding that the appraisal process would not be initiated until after
the city has selected a proposed plan and process.
Staff commented that the neighborhood meeting is scheduled for August 25.
EDA Meeting
Page 2
August 9, 2004
Commissioner Sommer expressed reluctance of incurring expenses for
appraisals until a plan is agreed upon and shared with the neighborhood.
He also pointed out that the term sheet included specific timelines.
Commissioner Gwin-Lenth pointed out that staff has met the property
owners. She expressed understanding of her colleague's discomfort of
proceeding without a formal plan but suggested a parallel track as the
appraisals are the next step of the process.
Discussion ensued regarding the term sheet that was approved on July 26 to
provide direction and approximate timelines. Mr. Sondrall confirmed that
the term sheet included conveyance of property east of Sumter Avenue to
the developer by May 1, 2005, and the property west of Sumter Avenue by
July 1, 2005. He stated the units proposed on the term sheet can be changed.
For financial analysis purposes, the term sheet included 42 proposed units.
He reiterated that the term sheet is non-binding.
Commissioner Cassen commented that the term sheet is direction to staff
and is not in final form. She supported authorization of the appraisals.
President Collier opened the floor for comments.
Mr. Andy Hoffe, 4632 Flag Avenue North, was recognized. He questioned
the costs of Phase III and how the financing would differ from Phases I and
II.
Mr. Donahue stated the costs for Phase III are not known but the main
difference in the financing is that Ryland will advance the city for all
upfront costs so the risks to the city are minimized. He noted the project
would still be part of the tax increment financing district.
Mr. Bob Sable, 5242 Quebec Avenue North, was recognized. He stated he
served on the Livable Communities Task Force when the city gathered
community input for the initial project. He recommended a similar process
be followed for Phase III. He commented that the density will generate
traffic problems and the character of the single family neighborhood is
deteriorating.
President Collier noted that a neighborhood meeting is planned for August
25. -
EDA Meeting
Page 3
Mr. Keith Pahl, 5432 Quebec Avenue North, was recognized. He stated he
has not heard of one neighbor who is in favor of the project. He commented
that the residents are being forced out of their homes. He objected to the use
of Ryland Homes as they are not a Minnesota based developer.
Commissioner Gwin-Lenth pointed out that the neighborhood is open to
considering the project. President Collier interjected that a plan is not in
August 9, 2004
DEVELOPMENT
PROPOSAL
Item 6
place at this time.
Mr. John Westphall, 5437 Quebec Avenue North, was recognized. He stated
he lives by Elm Grove Park and has experienced sewage entering his
basement. He expressed concern regarding the increased population and
potential for infrastructure problems.
Mr. Vince VanderTop, assistant city engineer, explained that the city has
reviewed the sanitary sewer in Phases I and II and the issue that creates the
sewer backup is not related to the additional homes. He stated inflow and
infiltration (improper sump pump discharge and storm water runoff)
contributes to the problem. He suggested installation of a shut off valve if
the problem at Mr. Westphall's home persists.
Ms. Johnelle Opem, 2733 Zealand Avenue North, was recognized. She
questioned the amount of taxes that would be paid to the general fund.
Mr. Dan Donahue, city manager, stated the pre-development values will
continue to be paid to the general fund. The value of the new development
will continually increase and the additional taxes will be used to pay off the
bonds.
Mr. Mike Drenth, 7616 55th Avenue North, was recognized. He pointed out
that proceeding with phase III will benefit the City of New Hope. He
questioned where these residents were when the initial phases were
constructed. He commented that the EDA needs to decide what is best for
New Hope.
Mr. Donahue stated the total cost of the eight appraisals is less than $4,000.
A motion was made by Commissioner Gwin-Lenth authorizing the city
manager to proceed with the appraisals after consensus of the EDA on
design concepts. The EDA discussed postponing action for two weeks or
taking action at the work session. Councilmember Gwin-Lenth later
withdrew her motion. No vote was taken. Commissioner Gwin-Lenth urged
the EDA to make a decision early enough to allow sufficient time to resolve
possible design questions.
President Collier indicated that a work session is planned tonight uPon
adjournment of the EDA. The purpose of the work session is to discuss the
Winnetka Green phase III expansion proposals.
President Collier introduced Item 6, Discussion regarding concept
development proposal by Ryland Homes for city-owned property north of
C.P. Railroad; motion authorizing appraisal of property.
Discussion on Item 6 was postponed until the September 13 meeting.
EDA Meeting
Page 4
August 9, 2004
OTHER BUSINESS
Mr. Andy Hoffe, 4632 Flag Avenue North, was recognized. He asked a
procedural question regarding whether public input would be allowed at
the work session.
ADJOURNMENT
President Collier clarified that the standard practice of the council is to
prohibit public input at its work sessions.
Mr. Steve Sondrall, city attorney, pointed out that a work session is a type of
a council meeting. He stated the city council is not required to take citizen
input on any item other than a public hearing. The chair of the meeting can
permit public input on other items, but it is not required.
Motion was made by Commissioner Cassen, seconded by Commissioner
Sommer, to adjourn the meeting. All present voted in favor. Motion
carried. The New Hope EDA adjourned at 9:57 p.m.
ectfully submitted,
Valerie Leone
City Clerk
EDA Meeting
Page 5
August 9, 2004
EDA
O .CT OS
Originating Department Approved for Agenda Agenda Section
Community Development :.. ~.?~ 08-23-04 EDA
Item No.
By: Kirk McDonald, Director of CD By
Amy Baldwin, CD Assistant
PUBLIC HEARING: A RESOLUTION MODIFYING THE RESTATED REDEVELOPMENT PLAN AND TAX
INCREMENT FINANCING PLANS FOR REDEVELOPMENT PROJECT NO. 1 AND 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-
I(SPECIAL LAW); CREATING TAX INCREMENT FINANCING DISTRICT NO. 04-2 AND ADOPTING A
TAX INCREMENT FINANCING PLAN RELATING THERETO. (IMPROVEMENT PROJECT NO. 776)
REOUESTED ACTION
Staff and consultants are recommending that the New Hope Economic Development Authority approve the
attached Resolution Modifying the Restated Redevelopment Plan and Tax Increment Financing Plans for
Redevelopment Project No. 1 and 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); Creating Tax Increment Financing District No. 04-2 and Adopting a
Tax Increment Financing Plan Relating Thereto.
The resolution was prepared by Krass Monroe, the city's redevelopment financial consultant. Jim Casserly
will be in attendance at the meeting to answer any questions on this matter. This step creates the Tax
Increment Financing District related to the Project for Pride in Living project at 5501 Boone Avenue North.
The EDA needs to approve this resolution making recommendations to the City Council prior to the City
Council public hearing.
POLICY/PAST PRACTICE
The EDA and City Council have created tax increment financing districts in the past to" facilitate
redevelopment projects.
BACKGROUND
Extensive background information is provided on this matter under the City Council public hearing request
and i.._....~t is not the~e all of that information in this recl~est for action.
I: \ RFA \ PLANNING \ Housin \ 5501 Boone\ Q-eda-TIF Public Hearin .doc
Request for Action Page 2 08-23-04
Staff recommends approval of the resolution and forwarding the matter to the City Council for consideration
at the public hearing.
ATTACHMENT
· Resolution
NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF HENNEPIN
STATE OF MINNESOTA
RESOLUTION NO.
A RESOLUTION MODIFYING THE RESTATED REDEVELOPMENT PLAN AND
TAX INCREMENT FINANCING PLANS FOR REDEVELOPMENT PROJECT NO. 1
AND 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); CREATING TAX
INCREMENT FINANCING DISTRICT NO. 04-2 AND ADOPTING A TAX
INCREMENT FINANCING PLAN RELATING THERETO.
BE IT RESOLVED by the Board of Commissioners (the "Commissioners'') of
the New Hope Economic Development Authority (the "EDA"), as follows:
Section 1. Recitals.
1.01. It has been proposed that the EDA approve and adopt the proposed
modifications to the Restated Redevelopment Plan (the "Plan") for Redevelopment
Project No. 1 (the "Project Area") reflecting increased project costs, increased
bonding authority and increased geographic area within the Project Area, pursuant
to and in accordance with Minnesota Statutes, Sections 469.001 to 469.047,
469.124 to 469.134 and 469.090 to 469.108, inclusive, as amended and
supplemented from time to time.
1.02. It has been further proposed that the EDA approve and adopt the
proposed modifications to the Tax Increment Financing Plans (the "Existing TIF
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) (the "Existing TIF Districts")
reflecting increased project costs, increased bonding authority and increased
geographic area within the Project Area, pursuant to and in accordance with
Minnesota Statutes, Sections 469.174 to 469.1799 and 469.090 to 469.!08,
inclusive, as amended and supplemented from time to time.
1.03. It has been further proposed that the EDA approve the creation of
proposed Tax Increment Financing District No. 04-2 (the "Proposed TIF District")
within the Project Area and approve and adopt the 'proposed Tax Increment
Financing Plan (the "Proposed TIF Plan") relating thereto pursuant to and in
accordance with .Minnesota .Statutes, Sections 469.174 to 469.1799 and 469.090 to
469.108, and Laws of Minnesota 2003, Chapter 21, Article 10, Section 10, inclusive,
as amended and supplemented from time to time.
1.04. The EDA has caused to be prepared and has investigated the facts
with respect thereto a modified Plan for the Project Area and modified Existing TIF
Plans for the Existing TIF Districts reflecting increased project costs, increased
bonding authority and increased geographic area within the Project Area, and a
Proposed TIF Plan for the Proposed TIF District defining more precisely the property
to be included, the public costs to be incurred and other matters relating thereto.
1.05. The EDA has performed all actions required by law to be performed
prior to the approval and adoption of the modifications to the Plan and Existing TIF
Plans and the approval and adoption of the Proposed TIF Plan.
1.06. The EDA hereby determines that it is necessary and in the best
interests of the City and the EDA at this time to approve and adopt the modifications
to the Plan and Existing TIF Plans, to create the Proposed TIF District and to
approve and adopt the Proposed TIF Plan relating thereto.
Section 2. Findinqs.
2.01. The EDA hereby finds that the assistance to be provided through the
adoption and implementation of the modified Plan, modified Existing TIF Plans and
Proposed TIF Plan (collectively the "Plans") is necessary to assure the development
and redevelopment of the Project Area.
2.02. The EDA hereby finds that the Plans conform to the general plan for the
development and redevelopment of the City as a whole.
2.03. The EDA hereby finds that the Plans afford maximum opportunity
consistent with the sound needs of the City as a whole for the development and
redevelopment of the Project Area by private enterprise and it is contemplated that
the development and redevelopment thereof will be carried out pursuant to
redevelopment contracts with private developers.
Section 3. Approvals and Adoptions.
3.01. The modifications to the Plan reflecting increased project costs,
increased bonding authority and increased geographic area within the Project Area
are hereby approved and adopted by the Commissioners of the EDA and are
forwarded to the New Hope City Council for public hearing, review and approval.
3.02. The modifications to the Existing TIF Plans reflecting increased project
costs, increased bonding authority and increased geographic area within the Project
Area are hereby approved and adopted by the Commissioners of the EDA and are
forwarded to the New Hope City Council for public hearing, review and approval.
3.03. The creation of the Proposed TIF District within the Project Area and
the adoption of the Proposed TIF Plan relating thereto are hereby approved and
2
adopted by the Commissioners of the EDA and are forwarded to the New Hope City
Council for public hearing, review and approval.
Section 4..Filing of Plans.
4.01. Upon approval and adoption of the Plans, the EDA shall cause said
Plans to be filed with the Minnesota Department of Revenue.
AdoPted by the Commissioners of the EDA this
YES:
NO:
ABSENT:
day of ,2004.
ATTEST:
President
Executive Director
CERTIFICATION
I, , Executive Director of the New Hope
Economic Development Authority, County of Hennepin, State of Minnesota, do
hereby certify that the foregoing is a true and correct copy of Resolution
No. adopted by the EDA on the day of
2004. ,
Executive Director
G :\WPDATA/NkNEW HOPE~21 \TIF/EDA RESOLUTION, DOC
I I
EDA
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
Community Development 08-23-04 EDA
Item No.
By: Kirk McDonald, Director of CD By:
RESOLUTION CALLING FOR PUBLIC HEARING REGARDING A PROPOSED TRANSFER OF REAL
PROPERTY (5501 BOONE AVENUE NORTH). (IMPROVEMENT PROJECT NO. 776)
ACTION REQUESTED
Staff is requesting EDA approval of the attached resolution scheduling a pubhc hearing for the sale of City-
owned property located at 5501 Boone Avenue North. The public hearing will be held on September 13, 2004.
POLICY/PAST PRACTICE
City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties within
the City. The EDA has been addressing the residential portion of this goal through the city's many
development activities, including selling city-owned property for redevelopment.
BACKGROUND
Please refer to the attached correspondence from the city attorney. The city is required to conduct a pubhc
hearing regarding the conveyance of property to PPL. This resolution schedules the public hearing for
September 13. The redevelopment contract will also be considered at that meeting.
Staff recommends approval of the resolution.
i ATTACHMENTS
· Resolution
· City Attorney Correspondence (August 18, 2004)
70: a ,q
h\RFA\PLANNING\Hoosin~\5501 Boone\O - Schedule PH for sale of F, roF, ert¥.doc
RESOLUTION NO. 04 -
RESOLUTION CALLING FOR A
PUBLIC HEARING
REGARDING A PROPOSED TRANSFER OF REAL PROPERTY
(5501 BOONE AVENUE NORTH)
WHEREAS, the Economic Development Authority in and for the City of New Hope (the
"EDA") is currently the owner of that certain real property located at 5501 Boone Avenue North (the
"Property"); and
WHEREAS, the EDA has reviewed various proposals over time regarding the feasibility of
redeveloping the Property into a more productive use; and
WHEREAS, it has been proposed by Project for Pride in Living, Inc. ("PPL") that the
Property be redeveloped into an apartment and condominium site pursuant to a Contract for Private
Redevelopment between PPL and the EDA; and
WHEREAS, a proposal regarding authorization for a Contract for Private Redevelopment
between the EDA and PPL is expected to be presented to the EDA in the future; and
WltEREAS, the preliminary findings of the EDA indicate that transfer of the Property to
PPL appears to be in the best interests of the City of New Hope and its people, as the transfer and
subsequent redevelopment of the Property would further both the EDA's objectives and the
objectives of the City of New Hope in creating the Restated Redevelopment Plan for Redevelopment
Project No. 1 in the City; and
WHEREAS, the preliminary findings of the EDA additionally indicate that transfer of the
Property would advance the EDA's general plan of economic development for the City; and
WHEREAS, the EDA has determined that it will hold a public hearing at its next regular
meeting to determine if the proposed transfer of the Property is advisable.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in
and for the City of New Hope as follows:
1. That a public hearing on the proposed transfer of the land known as 5501 Boone
Avenue North to Project for Pride in Living, Inc. be held at the regular meeting of the EDA
scheduled for September 13, 2004 (the "Hearing Date").
2. That the Executive Director, or his designated representative, publish notice of the
hearing in accordance with the requirements of Minnesota Statutes Section 469.105.
3. That notice of the hearing indicate that the proposed terms and conditions of transfer
of the Property to PPL are outlined in a draft Contract for Private Redevelopment, a copy of which is
available to members of the public at the EDA offices.
Adopted by the EDA this
__ day of ,2004.
Don Collier, President
Attest:
Daniel J. Donahue, Executive Director
2
JENSEN & SONDRALL, P.A.
Attorneys At Law
8525 EDINBROOK CROSSING, STE. 201
BROOKLYN PARK, MINNESOTA 55443-1968
TELEPHONE (763) 424-8811 · TELEFAX (763) 493-5193
e-mail law~jensen-sondrall.com
MEMORANDUM
Date: 18 August 2004
To: Kirk McDonald
Community Development Director
City of New Hope
From: Clarissa M. Klug
Assistant City Attorney
Re: 5501 Boone Avenue: Preparation for Public Hearing
(Our File # 99.11309)
Enclosed is a Resolution calling for a public hearing on the proposed transfer of Boone Avenue property
to Project for Pride in Living, Inc. (PPL). Please note the following in connection with the Resolution:
· Minnesota Statutes Section 469.105 authorizes the EDA to transfer real property after fn-st
holding a public hearing.
Published notice of the hearing is required at least ten, but not more than 20 days before the
hearing. This timefi'ame will allow publication in the New Hope-Golden Valley Sun Post on
August 26 and a hearing before the EDA at its regular meeting on September 13. Our office has
prepared the required notice and will submit it to the Sun Post.
The above-referenced statute states that "terms and conditions" of the proposed transfer must be
available to the public at the EDA offices. This requirement can be met by having a copy of the
draft Contract for PriVate Redevelopment available at the City information desk, and we have
confirmed with Krass Monroe that they will supply an updated draft for these purposes.
In terms of scheduling, it is our understanding that both Krass Monroe and PPL are comfortable with
having the TIF District and plat matters presented to the EDA on August 26 and the Contract for Private
Redevelopment presented September 13. Accordingly, the attached Resolution refers to the
Redevelopment Contract as still in draf~ form.
MEMORANDUM - PAGE
As always, feel free to contact us with any questions or concerns.
Enclosure
Daniel J. Donahue (by e-mail, with enclosure)
Valerie Leone (by e-mail, with enclosure)
Steven Sondrall (by e-mail, w/o enclosure)
Douglas Debner (by e-mail, w/o enclosures)
Gay Greiter (with enclosures)
P:~AttomeyXCmk\Client~\CN~99-11309\CNH99. 11309-007-Memo to Kirk McDonald re R~olution Calling for Hearing. doc
MEMORANDUM- PAGE 2
EDA
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
/ Item No.
Kirk McDonald, Director
By: Sha~ Siders, CD S~ecia~st By: 6
RESOLU~ON APPRO~NG P~C~SE AGREEMENT - 5207 PENNSYLVAN~ AVENUE NOR~
(~PROVEMENT PROJECT No. 775)
REO~STED ACTION
Staff requests Ci~ Co~cil approval of a resolution approv~g ~e purchase agreement for ~e proper~
located at 5207 Pe~sylv~a Avenue Nor~ for its appraised value of $80,000
POLICY/PAST P~CTICE
Ci~ goal $2 is to pursue ~e ma~ten~ce ~d redevelopment of co~ercial ~d residential properties wi~
· e ci~. ~e Ci~ Co,cfi has been address~g ~e residential portion of ~s goal ~ough ~e ci~'s m~y
hous~g activities, ~clud~g acqu~g properties &om wfl~g sellers ~ desi~ated redevelopment areas.
BACKGROUND
At its mee~g of J~e 28, 2004, ~e Ci~ Co,cfi au~or~ed staff to obta~ ~ appraisal of ~e proper~ located
at 5207 Pe~sylv~ia Avenue Nor~. ~e Ci~ had recently received correspondence &om Mark S~tebeck,
~dica~g ~ ~terest ~ potenfia~y se~g ~ mo~er's proper~ at 5207 Pe~sylv~a to ~e ci~. Mr.
S~tebeck ~dicated ~at ~e proper~ had fallen ~to disrepa~ ~d he has nei~er ~e ~ds nor ~terest ~
fix~g ~d ma~ta~g ~e properS.
At its mee~g of July 26, 2004, ~e Ci~ Co,cfi au~or~ed st~f to enter ~to negotiations wi~ ~e proper~
o~er of 5207 Pe~sylv~a Avenue Nor~ for ~e p~chase price of $80,000. ~e purchase price of $80,000
was determ~ed by ~e appraisal completed by Greg CaH~ of Forsy~e Appraisals. ~s apPraisal was
forwarded ~der separate cover at ~e Co,cfi mee~g of July 26, 2004. ~e o~er has agreed to a purchase
price of $80,000.
I:~A ~l~nin~housin~ 5207 ~ Q-~urchase a~eement
Request for Action Page 2 8-23-04
At its meeting of August 9, 2004, the City Council adopted a resolution which directed the City Attorney to
prepare a purchase agreement for the acquisition of the single family property located at 5207 Pennsylvania
Avenue North. That agreement is attached. The purchase price of the property will be $80,000 less routine
costs outlined in previously forwarded City Attorney correspondence as well as sealing the well on the
property and payment of special assessments. The heirs will also sign a waiver of relocation benefits.
Once acquired, the house will be demolished as the appraisal noted that the site is in overall poor condition
and not marketable as is. Once demolished, City staff at the direction of the City Council will work to market
the property to a single developer for the construction of a new market rate single-family home. The primary
goal is to remove a dilapidated home and improve the neighborhood with a new structure.
FUNDING
Per direction from the City Council, the acquisition cost will be paid for with EDA funds, as the project will be
market rate, not affordable and is not eligible for the use of CDBG funds.
ATTACHMENTS
· Resolution
· Location Map
· Purchase Agreement
· City Attorney Correspondence
CITY OF NEW HOPE
EDA RESOLUTION NO. 04 -
RESOLUTION APPROVING PURCHASE AGREEMENT
5207 Pennsylvania Avenue North
BE IT RESOLVED, by the Economic Development Authority in and for the City of
New Hope (EDA) as follows:
WHEREAS, New Hope City staff have been in contact with Mark Smntebeck
("Owner"), one of the Owners of certain real estate known as 5207 Pennsylvania Avenue North
(the "Property"); and
WHEREAS, the Owner and his three sisters Melinda King, Michele Arnold and M. Sally
Kerwood have acquired title to the Property by an Informal Deed of Distribution fi.om their
mother's estate and are desirous of selling the property as soon as practical without incurring any
further rehab costs or expenses given the current condition of the structure located on the
Property, and
WHEREAS, the Property is currently unoccupied and not habitable, and
WHEREAS, the EDA has authorized and approved an appraisal of the property which
was completed by Forsythe Appraisals, LLC as of June 30, 2004 indicating a market value for
the property of $80,000.00, and
WHEREAS, the Owner is willing to sell the Property to the EDA for the sum of
$80,000.00 as set forth in the Purchase Agreement attached hereto as Exhibit A and incorporated
herein by reference with the understanding this is an "AS IS" sale with the EDA assuming all
responsibility for the condition, rehab or removal of the single family structure located on the
property; and
WHEREAS, the EDA hereby approves the Purchase Agreement, it being in the best
interest of the EDA and the City of New Hope to purchase the Property from the Owners for the
sum of $80,000.00, with other terms and conditions as set forth in the Purchase Agreement and
to redevelop the Property in accordance with the City's scattered site housing program and
policy.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in
and for the City of New Hope as follows:
1. That the above recitals are incorporated herein by reference;
That the purchase of the Property by the New Hope EDA fi.om Mark Stuntebeck,
Melinda King, Michele Arnold and M. Sally Kerwood 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.
i I
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.
Dated the 23~d day of August, 2004.
Don Collier, President
Attest:
Daniel J. Donahue, Executive Director
P:k~.ttomey\Cnh ResolutionskOg. 11314-001-Reso Approv PA-S20? Pennsylvania Avenue.doc
EXHIBIT A
MINNESOTA STANDARD RESIDENTIAL PURCHASE AGREEMENT
BEFORE YOU USE OR SIGN THIS CONTRACT, YOU SHOULD CONSULT WITH A LAWYER TO
DETERMINE THAT THIS CONTRACT ADEQUATELY PROTECTS YOUR LEGAL RIGHTS.
1. PARTIES. This Purchase Agreement is made on August ,2004. by and between Mark Stuntebeck and
Jane C. Stuntebeck, husband and wife; Melinda King, a single person: Michele Arnold and Gary, Arnold, wife and
husband; and M. Sally Kerwood and Michael Kerwood, wife and husband. SELLER, and the Econormc
Development Authority in and for the City of New Hope (New Hope EDA). a public body corporate and polinc
under the laws of the State of Minnesota, of 4401 Xylon Avenue North. New Hope, Minnesota 55428. BUYER.
2. OFFER/ACCEPTANCE. Buyer offers to purchase and Seller agrees to sell real property legally described
as:
Lot 8, Block 4, Sunset Heights.
Property Tax Identification Number or Tax Parcel Number 08-118-21-21-0044.
located at 5207 Pennsylvania 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 bv
the last party signing to the otl~er party. This offer to purchase, unless accepted ~ooncr, ~,,~, ug w,,,~ ,~, 11:59 a.m.
on ,2004, and in such event all earnest money shall be refunded to Buyer.
4. PERSONAL PROPERTY AND FIXTURES INCLUDED IN SALE. The following items of personal
property and fixtures owned by Seller and currently located on the real property are included in this sale: 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 conditioning units, built-in electronic air filters, automatic garage door openers with controls, 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: None.
5. PRICE AND TERMS. The price for the real and personal property included in this sale is Eighty Thousand
and 00/100 Dollars ($80,000.00) which Buyer shall pay as follows:
Earnest money of $0.00
9 Seller, to be deposited and held by Seller (and may be commingled with Seller's other funds) pending closing,
9 Seller's lawyer, to be deposited and held in the lawyer's trust account pending closing,
9 Seller's broker, to be deposited or held by broker according to the requirements of Minnesota Statutes,
9 Other
receipt -e...u:~. -2z ~----~-y ~-~ ..... ,~ag~a and $80,~0.00 cash, on 2004, the Date of Closing.;
6. DEED~T~LE ~E. Upon p~o~nce by Buyer, Seller shall execute and deliver a Genml
W~nW ~ed, joined in by ~ouse, iffy, conve~ng ~kemble title of record, subject to:
A. Building and ~ning laws, ordin~ces, state ~d fed~l re~lafions;
B. Resffi~ions ~laang to use or i~rovem~t of ~e real pro~ ~out effective foffei~e pro,sloes;
C. Res~afion of any mineral hgh~ by ~e S~te of Mi~eso~;
D. Utiliw ~d ~amage easements which do not int~e ~ exis~g improvements;
E. ~cepaons to title which consamte encmbmces, resections, or msem~ w~ch ~ve been disclosed
to Buyer ~d accepted by Buy~ m ~is P~c~se A~eem~t: None.
7. REAL 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. If mx ~m:cm:n:: far :'ach :axes arc n~.: aa'ail:blt
iszumn:: af thc :ax ::atemznt:~,. Seller represents the taxes due and payable in the year(s) 2004 will be FULL,
tZ~R-T-~4gl~homestead classification., "-~ ~u;'cr :haT. g:: *:'
share af th: taxa:. If th: :axes ~ ..... '~ Fa:,'aS!: in "~ '.,'car .........
as ~:::,':r'a ham:at:ad :a .ql: far ham:st:ad mx ::a.'----: f:r --....~::
[Strike one] .~n.,~D ~,7~,m, CrT · v. c~u.~ · UUnU~.'Tn:' /.C n~" '~U~" n*'Pt" n~' o, nc~r, / SELLER
SHALL PAY ON DATE OF CLOSING all installments of special assessments certified for payment with the
real estate taxes due and payable in the year of closing.
[S:N!:c ar.c] P. UYER $?_S. LL A££~?/IE / SELLER SHALL PAY ON DATE OF (.'LI./~IINI.~ ail other speciai
assessments levied as of the date of this Purchase Agreement.
rc,-:t. .... ~ ~r~ eus~ se~ra/s~, , SELLER SHALL PROVIDE FOR PAYMENT OF special
assessments pending as of the date of this pur6hase 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 Heanng of a new public improvement project from any
governmental assessing authority, the costs of which project may be assessed against the real property. 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 property, which increase
shall be the same as the estimated amount oftbe assessment; or
C. Declare this Purchase Agreement void by notice to Seller, and earnest money shall be refunded to Buyer.
reo-:~.~ a.':c] ~E ~'EP. £?~..LL A£SL?.S.E/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 furore special assessments.
8. DAMAGES 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 BOIYNDARY LINE, 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 fight 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 sUnqve the delivery of the Deed or Contract for Deed.
10. CONDITION OF PROPERTY.
;-'~- ~ ..... ...... ~,,~,~'~ ..... ~,~,.; ..... ~,, ,,,~ ~..,~"*-- of C}osmg. SeII~ s~ll ~move ail debris, ~d all pmonal prop~ not
included in ~s ~le from ~e real pro~ ~fore ~ssession date. Seller has no ~owledge of~y Dutch
elm dise~e, oak ~lt, or o~er dise~e of~y ~ees on ~e ~al pro~,.
B. Seller knows of no hazardous substances or petroleum products having been placed, stored, or released
from oi' on the real property by any person m violation of any law, nor of any underground storage tanks
havmg been located on the real property at any time, except as follows: None.
C. Seller's warranties and representations contained in this paragraph 10 shall surmve the delivery of the
Deed er C~::~ac: £.~r Dz:d. Any action based upon these warrannes and representanons 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 property ~nspected.
Statutory Disclosure. Pursuant to Minnesota Statutes sections 513.52 - 513.60 (effective January 1.
2003), Seller must provide a written disclosure [see (1) below], or Bayer must have received an
inspection report [see (2) below], or Buyer and Seller may waive the written disclosure requirements [see
(3) below].
Mmesota Statutes Section 513.57, Subd. 2. LIABILITY. A seller who fails to make a disclosure as requLred 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 determined by the court. An action under this subdivision must be commenced within two years
after the date on which the prospective buyer closed the purchase or transfer of the real property.
[Select only one of these three.']
9 (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 transfer residential real property, the seller shall make a written
disclosure to the prospective buyer. The disclosure must mchide all material facts pertaining to adverse
physical conditions in the property of which the seller is aware that could adversely and significantly affect:
(1) an ordinary buyer's use and enjoyment of the property; or,
(2) any intended use of the property of which the seller is aware.
(b) The disclosure must be made m 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 1 is liable to the prospective buyer as provided m
section 513.57.
9
(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 reformation in the inspection report.
Minnesota Statutes Section 513.56 Subd. 3. INSPECTIONS.
(a) Except as provided m paragraph Co), a seller is not required to disclose information relating to the physical
condition of the real property if 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 expemse necessary to meet the industry standards of practice for the type of inspection
mvesnganon 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) ifa copy of the report is provided to the seller.
: (3) Waiver of Disclosure.
1 I
Minnesota Statutes Section 513.60. WAIVER. The written disclosure reqUU'ed under sections 513.52 to 513.60
may be waived if the seller and the prospective buyer agree in writing. Waiver of the disclosure reqmred under
sections 513.52 to 513.60 does not Wmve, limit, or abridge any obliganon 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: SEE ATrACHED EXECUTION PAGE BY:
Don Collier. President
BY:
Daniel J. Donahue. Executive Director
Other than the warranties and representations made in this paragraph 10, the property is being sold "AS IS" with
no express or implied representations or warranties by Seller as to physical conditions, quality of construction,
workmanship, or fitness for any particular purpose. (This paragraph is not intended to waive or limit an)'
provisions cfMmn. Stat., Chapter 327A.)
1i. DISCLOSURE OF NOTiCES. Seller has not :cceived any notice from any governmental authonW as to
violation of any law, 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 notice from any governmental authority concerning any eminent domain, condemnation,
special taxing district, or rezoning proceedings.
12. TRUTH-IN-HOUSING. Buyer acknowledges receipt of the Truth-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. All
interest, fuel oil, liquid petroleum gas, and all charges for city water, city sewer, electricity, and natural gas shall
be prorated between the parties as of the Date of Closing.
14. EXAMINATION OF TITLE. ,r~ ~ ..........
...................... ~_cc_~ptancc ~ ,~.~. n...~.~ A~'ecmcnt, Sc!let zha!! ?rn,.!zh E'.:;'cr ':.':.th a.': Abz~ac: cfTitl.
cra RcF, izt~cd Prc~c.'.y ~:~act cc~.Scg tv d.::c Lncludlng prc~c, zc:rchcz ccvc~ing ~cnla-uptc!cz and :tr. tc and
Abz,~.act cit~:: :c ha;-c ~u:,'er'~ la;;5-c: cxs.--..'.'.~c thc ~tlc
........... , ....... ~_ ' ' - ..il ...... ac:cc pc!:cy
-I~.*SEE PARAGRAPIt 25 ADDITIONAL TERMS
15. TITLE CORRECTIONS AND REMEDIES. Seller shall have 120 days from receipt of Buyer's written
title objections to make rifle marketable. Upon receipt of Buyer's title objections, Seller shall, within ten (I0)
business days, notify Buyer of Seller's intention to make title marketable within the 120 day period. Liens or
encumbrances for liquidated amounts which can be released by payment or escrow from proceeds of closing shall
not delay the closing. Cure of the defects by Seller shall be reasonable, diligent, and prompt. Pending correction
of title, all payments required herein and the closing shall be postponed. '
A. If notice is given and Seller makes title marketable, then upon presentation to Buyer and proposed lender
of documentation establishing that title has been made marketable, and if not objected to in the same time
and manner as the original title objections, the closing shall take place within ten (10) business days or on
the scheduled closing date, whichever is later.
B. If notice is given and Seller proceeds in good faith to make title marketable but the 120 day period expires
without title being made marketable, Buyer may declare this Purchase Agreement void by notice to
Seller, neither party shall be liable for damages hereunder to the other, and earnest money shall be
refunded to Buyer.
C. If Seller does not give notice of intention to make title marketable, or if notice is given but the 120 day
period expires without title being made marketable due to Seller's failure to proceed in good faith, Buyer
may seek, as permitted by law, one or more of the following:
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 from Seller as permitted by law (damages
under this subparagraph (a) shall be limited to the cost of cUnng objections to title, and
consequential damages are excluded): or
(b) Undertake proceedings to correct the objections to title;
(2) Rescission of this Purchase Agreement by notice as provided herein, in which case the Purchase
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 perrmned 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 pertained by law:
(1) Cancel this contract as provided by statute and retam all payments made hereunder as liquidated
damages. The parties acknowledge their intention that any note gnven pursuant to this contract is a
aown payment note, and may be presented for payment notwithstanding cancella~on;
(2) Seek specific performance within six months after such right of action arises, including costs and
reasonable lawyer's fees, as perrmtted 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 permitted by law:
(1) Seek damages from Seller including costs and reasonable lawyer's fees;
(2) Seek specific performance within six months after such right of action arises.
16. NOTICES. All notices required herein shall be in writing and delivered personally or mailed to the address
as shown at paragraph 1 above and, if mailed, are effective as of the date of mailing.
~'~-;. .................. v, ..... ' '~ ..........· a~rc;~.3. $c!]zr ';,'a:''''~ .... ~n, ,~ ~ ....
18. MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota.
19. WELL DISCLOSURE. [Check one of the followingl
9 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 B]
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. 9 Seller certifies that sewage generated at the property does not go to a facility permitted by the
Minnesota Pollution Conn-ol 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. 9 Seller knows that there [strike one]: are/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.
[~lttach Seller's Disclosure of Individual Sewage Treatment System with map completed.]
21. LEAD PAINT DISCLOSURE. [Check one of the following]
I
9 Seller represents that the dwelling was co~cted on the real property m 1978 or later.
: Seller represents that the dwelling was construed on the real property before 1978. (If such housing is
located on the real properly, 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 in this
Purchase Agreement by executing and delivering a Minnesota Uniform Conveyancing Blank [Form 116-M, 117-
M. or 118-MI Affidavit of Seller.
24. CLOSING. Closing shall be at the ......... ^w.__ ~c e~.. .... .... ~ ~...9,~_, o__.,.. ...... '0o "'~.. .... in:urer, zr at .... .... ct.her mu:aatly
..... ~'~ ' .... ;~- rS:acc -"~ .... ~ ......... r~- 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. ADDITIONAL TERMS: *Buyer shall obtain, at Seller'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 Mumesota. Seller
shall be responsible for payment of those costs necessary to prepare such Commitment, 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 Comrmtment 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.
This Purchase Agreement is subject to the terms of Exhibits A and B attached hereto as addenda.
26. ADDENDA. Attached are 5 addenda which are made a part of this Purchase Agreement. (Exhibits A and B,
Signature Addendum, Well Disclosure and Private Sewer Disclosure.)
27. TIME IS OF THE ESSENCE. Time is of the essence for all provisions of this Purchase Agreement.
28. MULTIPLE ORIGINALS. Seller and Buyer have signed 3 originals of this Purchase Agreement.
ITHIS IS A LEGALLY BINDING CONTRACT. BEFORE SIGNING~ cONSTULT A LAW~'ER. t
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 contract. These are questinnn for your lawyer.
SELLER:
I agree to sell the property for the price and terms
and conditions set forth above.
SEE ATTACHED EXECUTION PAGE
This Purchase Agreement was prepared by:
JENSEN & SONDRALL, P.A.
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: August ,2004.
By:
Don Collier, President
Date: August ,2004.
By:
Daniel J. Donahue, Executive Director
[ 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. Son&all, #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 In. su.~ance Comvany
400 Second Avenue South
Minneapolis, Minnesota 55401
[1994; Rev. 1996; Rev. 1997; Rev. 2002]
P:LAttomey'~l LB~ 1 -Client Folde~'N hnO9- I 1314 ~99. l 1314-00 ! -Residential PA.doc
ADDENDUM TO PURCHASE AGREEMENT
This Purchase Agreement and addenda may be executed in any number of counterparts, each of
which shall be deemed an original, and all of which shall constitute one A~eement. Delivery of
an executed counterpart of this Agreement by facsimile shall be deemed deliver5., of the original
hereof.
EXECUTION PAGE
THIS EXECUTION PAGE IS ATTACHED TO AND FORMS A PART OF THAT CERTAIN
PURCHASE AGREEMENT DATED EFFECTIVE THE __ DAY OF AUGUST, 2004,
CONSISTING OF __ PAGES, EXCLUSIVE OF EXHIBITS AND EXECUTION PAGES.
SELLER: SELLER:
Date: Aug'es! '"ha
, -~'-,~, .. Date: August .2004.
Mark Stuntebeck Jane C. Stuntebeck
SSN: SSN:
Address: Address:
Date: August ,2004.
Melinda King
SSN:
Address:
Date: August ,2004. Date: August ,2004.
Michele Arnold Gary Arnold
SSN: SSN:
Address: Address:
Date: August ,2004. Date: August .... 2004.
M. Sally Kerwood Michael Kerwood
SSN: SSN:
Address: Address:
P:L~.ttomey~JLB\l-Client Foldera~CNH~99-11314\99.11314-002-Addendum to PA-Execution Page.doc
EXHIBIT A
ADDITIONAL TERMS RELATING TO THE PURCHASE
AGREEMENT FOR 5207 PENNSYLVANIA AVENUE NORTH
1. Closing Costs. Seller acknowledges that they shall be responsible for Payment of the
following costs in addition to those set forth in the Purchase Agreement on the sale of the above
Property:
a.)
b.)
state deed tax,
cost of securing a title commitment as set forth in Paragraph 25 of the
. Purchase Agreement,
c) all recording fees necessary to render marketable title to the Property,
d.) all unpaid special assessments as set forth in Paragraph 7 of the Purchase
Agreement.
2. Closure of Water Well. Seller acknowledges and agrees they shall be responsible for all costs
to seal the water well on the Property prior to Closing. Seller agrees they will provide the Buyer
with a sealing record or affidavit that the water well has been legally sealed and abandoned. The
affidavit shall be prepared by a licensed water well contractor, as required by the Minnesota
Department of Health, and provided to the Buyer prior to Closing.
The Closing on the sale shall be delayed if Seller is not able to provide the Buyer with the water
well sealing affidavit prior to Closing. Buyer, at its sole option, may proceed with the Closing
and retain funds from Seller to be held in escrow by the Buyer to properly seal and abandon the
water well if Seller has not produced the requested documentation. The escrow shall be for one
hundred fifty (150%) of the Buyer's estimated costs, as determined by the Buyer. Buyer may
complete the Closing, take possession of the Property and cause the water well to be sealed.
Buyer may reimburse itself from the funds in escrow held from the proceeds payable to Seller at
Closing. Any monies remaining in escrow after the Buyer's costs are reimbursed shall be
immediately paid to Seller. If this option is elected by the Buyer, the work shall be performed by
the Buyer within a reasonable time after it acquires possession of the Property.
3. Lead Based Paint Inspection Waiver. Buyer waives the opportunity to conduct a risk
assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards.
P:~Attomey~SAS\l Client Files~2 City of New Hope\99-11314(5207 Pennsylvania)~Exhibit A-Additional Terms2.doc
EXHIBIT B
ACKNOWLEDGMENT AND WAIVER BY OWNERS
The owners (the "Owners") of the property known as 5207 Pennsylvania Avenue North,
New Hope, Minnesota (the "Property"), acknowledge that they have been informed in writing of
the following:
The City of New Hope (the "City") operates a scattered site housing program, involving
the acquisition of certain properties in the City. The City will be negotiating with the
Owners for the acquisition of the Property by the City.
No specific property has to be acquired. It is not required that the City purChase the
Property.
e
The Property is not part of an intended, planned or designated project area where all or
substantially all of the property within the area is to be acquired within a specific time
limit.
If the City is unable to reach a mutually satisfactory agreement on the terms for the
purchase of the Property after negotiations with the Owners, the City will not be
acquiring the Property through any other means, such as condemnation.
The City has informed the Owners that the fair market value of the Property is
$80,000.00. The City has submitted a purchase agreement to the Owner for said price.
In consideration of the City proceeding with the purchase of the Property from the
Owners, the Owners confirm that this proposed purchase is a voluntary transaction, and the
Owners hereby waive all rights they have to relocation benefits under the Code of Federal
Regulations, 49 CFR Part 24.
The Owners also affirmatively represent and warrant to the City that there are no persons
or entities with current or future tenancy or leasehold rights in the Property.
Dated:
Dated:
Dated:
Dated:
Dated:
Dated:
Dated:
DOUGLAS J. DEBNER2
GORDON L. JENSEN~
CLAmSSA 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
2Admitted in Iowa
JENSEN & SONDRALL, P.A.
Attorneys At Law
8525 EDINBROOK CROSSING, STE. 201
BROOKLYN PARK, MINNESOTA 55443-1968
TELEPHONE (763) 424-8811 $ TELEFAX (763) 493-5193
e-mail law~jensen-sondrall.com
August 17, 2004
Mr. Mark Stuntebeck
3430 France Avenue North
Robbinsdale, MN 55422
-Re:
Purehase Agreement for 5207 Pennsylvaifi~A-venue North
Our File No. 99.11314
Dear Mark:
Please find enclosed for your review a Minnesota Standard Residential Purchase Agreement with
the following five addenda:
e
Signature Addendum to Purchase Agreement.
Exhibit A - Additional Terms Relating to the Purchase Agreement for 5207 Pennsylvania
Avenue North.
Exhibit B - Acknowledgment and Waiver by Owners.
Well Disclosure Statement.
Private Sewer System Disclosure.
As we discussed, the City of New Hope is willing to purchase this property from you and'your
siblings for $80,000.00, as set forth in the Purchase Agreement. I am enclosing four copies of the
Addendum to Purchase Agreement. This Addendum can be sent out to your sisters for their
signatures and the signatures of their spouses. All parties can then sign the document and fax me a
copy of the original document at 763-493-5193. I will need to receive by mail the original signed
copies as well.
It is my understanding there is a well currently in use on the property. Regarding the Well
Disclosure Statement, please check the "in use" box on line 32 of the document, and sign the
document on line 54. It does not need to be signed by your other siblings. I will accept your
signature for the purposes of the information enclosed on that document. Further, please attempt to
draw on the location map where the well is located on the property.
With respect to the Private Sewer System Disclosure, I am assuming you are unaware of any such
system and therefore you can check box 30 on the document. You should then sign line 77 of the
document and return this document to me. Again, your siblings do not need to sign this document,
and I will accept your signature for purposes of the disclosure required by the Private Sewer
System Disclosure Statement.
If I can receive this information back from you within the next week, this matter can be placed on
the August 23, 2004 City Council Agenda for approval. Subsequent to that approval, we should be
able to arrange for a closing on this property just as soon as the title work is prepared and
completed by Old Republic Title Company.
If you have any questions about the enclosed documents or the procedure to acquire your property
i I
August 17, 2004
Page 2
by the City, please do not hesitate to contact me.
Very truly yours,
Steven A. Sondrall, City Attomey,
City of New Hope
Enclosures
cc: Kirk McDonald (w/encs.)
P:La. ttomey~SAS~I Client Filcs~ City of New Hope~99-11314(5207 Pennsylvania)~Stuntebeck Ltx2 re PA.doc