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110804 EDA CITY OF NEW HOPE EDA MEETING City Hall, 4401 Xylon Avenue North November 8, 2004 ' Revised A~enda - added #7 I President Don Collier Commissioner Doug Andersen Commissioner Sharon Cassen Commissioner Mary Gwin-Lenth Commissioner Steve Sommer Call to order Roll call Approval of regular meeting minutes of October 25, 2004, and executive session meeting minutes of October 25, 2004 Resolution approving financial guarantee of the Hennepin County Housing and Redevelopment Authority affordable housing incentive fund program in the 5501 Boone Avenue North development project (improvement project no. 776) Public Hearing - Resolution approving sale of property at 7819 Angeline Drive to Kingsman, LLC (improvement project no. 603) Discussion regarding appeal of commissioner's award for 7809 Bass Lake Road (improvement project no. 716) Resolution finding need to acquire title and possession of three additional Winnetka Avenue East area development properties (tracts D, F, and G, Registered Land Survey 97) prior to the commissioner's award, approving the appraisal of damages for each property resulting from the taking, and ratifying and authorizing all steps taken by staff to acquire the properties (improvement project no. 751) 8. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes Regular Meeting October 25, 2004 City Hall CALL TO ORDER ROLL CALL APPROVE MINUTES CLOSED MEETING Item 4 EDA RESOLUTION 04-35 Item 4 ADJOURNMENT EDA Meeting Page 1 President Collier called the meeting of the Economic Development Authority to order at 9:21 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 October 11, 2004. All present voted in favor. Motion carried. President Collier introduced for discussion Item 4, Resolution authorizing and calling for a closed meeting of the New Hope Economic Development Authority to discuss purchase of the property at 7809 Bass Lake Road. Mr. Dan Donahue, city manager, advised the EDA that adoption of the resolution is necessary to permit the EDA to hold a closed meeting upon adjournment of its regular meeting. Commissioner Sommer introduced the following resolution and moved its adoption "RESOLUTION AUTHORIZING AND CALLING FOR A CLOSED MEETING OF THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY." 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 Cassen, seconded by Commissioner Andersen, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 9:24 p.m. Respectfully submitte, d, Valerie Leone City Clerk October 25, 2004 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes Executive Session October 25, 2004 City Hall CALL TO ORDER ROLL CALL LITIGATION ADJOURNMENT President Collier called the closed meeting of the Economic Development Authority to order at 9:29 p.m. Present: Don Collier, President Doug Andersen, Commissioner Sharon Cassen, Commissioner Mary Gwin-Lenth, Commissioner Steve Sommer, Commissioner Staff Present: Dan Donahue, City Manager Amy Baldwin, Community Development Assistant Jerry Beck, Communications Coordinator Valerie Leone, City Clerk Steve Sondrall, City Attorney President Collier explained that the purpose of the closed meeting is to consider the Commissioners' Award of the property at 7809 Bass Lake Road (part of the Winnetka Green development). The EDA discussed the award and provided direction to the city attorney. Motion was made by Commissioner Andersen, seconded by Commissioner Gwin-Lenth, to adjourn the closed meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 10:05 p.m. Valerie Leone City Clerk EDA Meeting Page 1 October 25, 2004 EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development ~'~\~ 11-8-04 EDA Item No. By: Kirk McDonald, Director of CD BY:///x~ J 4 Shawn Siders, CD Specialist RESOLUTION APPROVING FINANCIAL PARTICIPATION OF THE HENNEPIN COUNTY HOUSING AND REDEVELOPMENT AUTHORITY AFFORDABLE HOUSING INCENTIVE FUND PROGRAM IN THE 5501 BOONE AVENUE NORTH DEVELOPMENT PROJECT (IMPROVEMENT PROJECT NO. 776) REOUESTED ACTION Staff recommends that the New Hope Economic Development Authority approve the enclosed resolution approving the financial participation of the Hennepin County Housing and Redevelopment Authority (HRA) Affordable Housing Incentive Fund (AH1-F) Program at the 5501 Boone Avenue North development project. Hennepin County has conditionally approved a $300,000 AHIF loan to the apartment portion of the project, subject to EDA consent to its participation. These funds are part of the' funding "from other sources" for the project that were previously identified in the project pro forma. POLICY/PAST PRACTICE City goal #2 is to emphasize the maintenance and redevelopment of commercial and residential properties within the city. The EDA has been addressing the residential portion of this goal through the city's many housing activities, including coordinating with potential developers on the sale and development of city- owned property. The EDA has previously entered into contracts for private redevelopment with developers to facihtate improvements in the city. In the past, the City has participated in similar collaborative efforts, most recently the redevelopment of the Bass Lake Road apartment complex. As previously indicated, projects of this scope and nature require multiple funding sources and usually require the expertise of an experienced development agency to complete these projects. In many instances where not for profit development agencies such as PPL are involved, other funding agencies require the city's consent prior to their participation. BACKGROUND On September 13, 2004, the New Hope Economic Development Authority approved a redevelopment contract for the construction of thirty-five apartment units and forty-one condominium units on the property located at 5501 Boone Avenue North. I:\RFA\~LANNI~G\Housin~\§50~I Boono\O-~l_ da aCrvl.do¢ Request for Action Page 2 September 13, 2004 During its meeting of September 13, 2004, staff presented information to the EDA indicating that this proposal utilizes multiple funding sources for completion. Since that time, the funding for the apartment complex has been secured and construction will commence during November 2004. The funding for the condominium units is substantially in place and the developer expects to initiate construction as originally scheduled during spring 2005. In accordance with Hennepin County Resolution No. 03-HCHRA-21A, the I-Iennepin County HRA has conditionally approved the use of a $300,000 AHIF loan for the apartments located at the 5501 Boone Avenue North property. In that regard, the loan has been conditionally approved subject to the EDA's consent to the County's participation in the project and overall project approval. As previously stated, the project was previously approved by the EDA and the matter being presented to the EDA is of procedural nature as it simply approves the County's financial participation in this project. REQUEST FOR ACTION Staff requests the EDA approve the enclosed resolution giving its consent to the Hermepin County HRA to financially participate in this project. ATTACHMENTS · Resolution EDA RESOLUTION NO. 2004- RESOLUTION APPROVING FINANCIAL PARTICIPATION OF THE HENNEPIN COUNTY HOUSiNG AND REDEVELOPMENT AUTHORITY AFFORDABLE HOUSiNG INCENTIVE FUND PROGRAM IN THE 5501 BOONE AVENUE NORTH DEVELOPMENT PROJECT (IMPROVEMENT PROJECT NO. 776) WEREAS, the Hennepin County Housing and Redevelopment Authority in Resolution No. 03-HCHRA-21A has conditionally approved the use of a $300,000 Affordable Housing Incentive Fund loan for, the 5501 Boone Avenue North Apartment Project, located at 5501 Boone Avenue North in the city of New Hope, subject to approval by the City of New Hope, and; WHEREAS, the 5501 Boone Avenue North Apartment Project will enhance the supply of affordable housing in the city of New Hope by the construction of thirty five (35) apartment units, and; NOW, THEREFORE, BE IT RESOLVED, by the New Hope Economic Development Authority that the 5501 Boone Avenue North Apartment Project and the participation of the Hennepin County Housing and Redevelopment Authority in the project are hereby approved. Adopted by the Economic Development Authority of the City of New Hope, Hennepin County, Minnesota, this 8th day of November, 2004. President Attest: Executive Director EDA . REQUEST FOR ACTION Originating Department ,,, Approved for Agenda Agenda Section Community Development ~ ~..'~ 11-8-04 EDA By: Kirk McDonald, Director of CDy:~ Item No. Shawn Siders, CD Specialist B 5 PUBLIC HEARING: RESOLUTION APPRC~VING SALE OF PROPERTY AT 7819 ANGELINE DRIVE TO KINGSMAN, LLC (IMPROVEMENT PROJECT NO. 603) REOUESTED ACTION This is a pubhc hearing to consider the enclosed resolution approving the sale of the property as well as approving the purchase agreement which was prepared by the city attorney for the property located at 7819 Angeline Drive to Kingsman, LLC for $35,000. After a brief staff presentation and the taking of public comments, staff recommends that the EDA approve a motion to close the pubhc hearing and then adopt the resolution. POLICY/PAST PRACTICE City goal #2 is to emphasize the maintenance and redevelopment of commercial and residential properties within the city. The EDA has been addressing the residential portion of this goal through the city's many housing activities, including coordinating with potential developers on the sale and development of city- owned property. The EDA has previously entered into contracts for private redevelopment with developers to facilitate improvements in the city. BACKGROUND At its meeting of October 11, 2004, the EDA expressed its support for the proposed construction of a market rate single family home on the city owned property located at 7819 Angeline Drive. At that same meeting, the EDA expressed its support of the proposed purchase price of $35,000. Staff presented multiple site and building improvements that must be completed which added $11,000 of additional expense to the developer that was not anticipated when Kingsman, LLC made its initial offer to the EDA. Those expenses are: · $5,000 to strip the topsoil, grade and compact the new soil brought to the property in order to elevate the site. It is expected that the fill dirt will be provided and hauled to the site, free of charge from 'other developments currently under construction in the city. · $2,000 to conduct two (2) soil boring tests · $2,000 additional cost to waterproof the basement · $2,000 for extending the driveway and the brick facade treatment MOTION BY ~ SECOND o~ h \ R.FA\ PLANNING \ Housin~ \ 7819 \ Q- Kin{sman Pub Hear~'~ Sale of Property. Request for Action Page 2 - ' The developer indicated its willingness to pay the ,additional cost as well as the original $35,000 purchase offer. Once the proposed purchase price of $35,000 plus the additional site and building improvements was affirmed by the EDA, city staff scheduled the public hearing regarding the transfer of the property to Kingsman, LLC. The City Attorney prepared the enclosed purchase agreement. In addition to the typical conditions of any sale, the following conditions have been included in the purchase agreement to ensure the site is developed in accordance with the direction provided by city staff and discussed by the EDA. Those conditions are: · Conduct two soil borings to determine the water table · Elevation of the building pad so the basement floor grade is at 910 feet elevation · Buyer will strip topsoil and grade and compact new soil brought to the property by the City to increase the basement elevation grade height. · Conveyance of the Property to Buyer will not occur until Buyer provides to the City acceptable plans and specifications for construction of the single family home. · The City of New Hope will retain an additional 10 foot wide drainage and utility easement to the rear or south portion of the property to allow for a future extension of the existing culvert which currently terminates on the east side of the Property. · The single family home constructed on the Property will have a brick wainscot finish on the exterior front elevation acceptable to the City · The single family home constructed on the Property will be sufficiently set back for an extended driveway to allow for additional on-site parking acceptable to the City · The basement of the constructed home will be waterproofed in a manner acceptable to the City FUNDING Total acquisition cost of the site was $7,053 through a tax forfeiture sale. Closing costs will be covered through the proceeds of the sale. 'REOUESTED ACTION Staff recommends the EDA approve the enclosed purchase agreement and resolution. The agreement includes all staff comments as conditions of the transaction. Those conditions are outlined above. ATTACHMENTS City Attorney Correspondence Resolution Purchase Agreement Location Map Public Hearing Notification DOUGLAS Jl DEBNER2 GORDON L. JENSEN1 CLARISSA M. KLUG GLEN A. NORTON STEVEN A. SON'DP. ALL 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~j ensen-sondrall.com November 3, 2004 Shawn Siders Community Developmem Specialist City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 Re.' Resolution Approving Sale of 7819 Angeline Drive Our File No.:99-11316 Dear Shawn: Enclosed herein are the following documems for consideration at the November 8, 2004 EDA meeting: 1. Resolution Approving Sale Of ProPerty At LLC, 2. Purchase Agreement attached as Exhibit 7819 Angelne Drive To Kingsman Very truly yours, Steven A. Sondrall EDA RESOLUTION NO. 04- RESOLUTION APPROVING SALE OF PROPERTY AT 7819 ANGELINE DRIVE TO KINGSMAN LLC BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope (the EDA) as follows: WltEREAS, the EDA is the fee owner of certain real estate known as 7819 Angeline Drive, New Hope, (hereafter Property) legally described as follows: Lot 24, Block 5 JP Reidel & Company St. Raphael Addition; Hennepin County, Minnesota WHEREAS, the Property is vacant, consists of approximately 10,056 sq.gr, is zoned R-1 "Single Family Residential" and is suitable for improvement with a single family home; and WHEREAS, Kingsman LLC (hereafter Buyer) desires to enter into a Purchase Agreement with the EDA (attached as Exhibit A) to buy the Property for Thirty Five Thousand and No/00 Dollars ($35,000.00), in accordance with the terms stated in the Purchase Agreement, for the purpose of developing and constructing a single family home on the Property; and WHEREAS, a public hearing, notice of which was duly and lawfully published in the Sun Post, a paper of general circulation within the City of New Hope, was held before the EDA at its meeting of November 8, 2004 to considered the sale of this property to Buyer pursuant to the terms of Exhibit A attached; and WHEREAS, at the November 8, 2004 public hearing all parties wishing to be heard were heard by the EDA relating to the sale of the Property to Buyer; and WHEREAS, based on all of the information presented to the EDA at the November 8, 2004 public heating by New Hope City Staff and other parties at the public hearing and further based on the EDA's own knowledge and discussion about the Property, the EDA hereby determines it is in the best interests of the City to sell the Property to Buyer for $35,000.00 pursuant to the terms of the attached Purchase Agreement. The EDA also finds said sale is authorized by Minn. Stat. 89469.105 and will further the general plan of economic and housing development of the City; and WHEREAS, the City's obligation to sell the Property to Buyer per the attached Purchase Agreement will still be dependant on Buyer's agreement to construct a single family home on the Property with the following conditions: -1- o The single family home constructed on the Property will be in compliance with Minn. Stat. §§469.090-469.1082, and The single family home constructed on the Property will have a brick waimcot finish on the exterior front elevation acceptable to the City, and The single family home constructed on the Property will be sufficiently set back for an extended driveway to allow for additional on-site parking acceptable to the City, and The basement of the constructed home will be waterproofed in a manner acceptable to the City, and Buyer will be required to perform necessary site work prior to construction acceptable to the City at a minimum to include: a. Two soil borings to determine the water table, and b. Elevation of the building pad so the basement floor grade is at 910 feet elevation, and c. Buyer will strip topsoil and grade and compact new soil brought to the property by the City to increase the basement elevation grade height, and do Conveyance of the Property to Buyer will not occur until Buyer provides to the City acceptable plans and specifications for construction of the single family home. The City of New Hope will retain an additional 10 foot wide drainage and utility easement to the rear or south portion of the property to allow for a future extension of the existing culvert which currently terminates on the east side of the Property. 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 sale of the Property at 7819 Angeline Drive to Kingsman LLC per the terms of the attached Purchase Agreement (Exhibit A) considered at the November 8, 2004 public hearing before the EDA is hereby approved and that the President and Executive Director are hereby authorized and directed to enter into the Purchase -2- Agreement with Kingsman LLC and take all necessary steps to complete the sale and conveyance of the Property to Kingsman LLC. Dated the 8t~ day of November, 2004. Don Collier, President Attest: Daniel J. Donahue, Executive Director PSAttomey\Cnh Resolutions\CNH99-11316 reso authorizing sale of 7819 Angeline Drive.doc -3- MINNESOTA STANDARD RESIDENTIAL PURCHASE AGREEMENT BEFORE YOU USE OR SIGN THIS CONTRACT, YOU SHOLrLD CONSULT WITH A LAWYER TO DETERMINE THAT THIS CONTRACT ADEQUATELY PROTECTS YOUR LEGAL RIGHTS. 1. PARTIES. This Purchase Agreement is made on ,2004, by and between the Economic Development Authority in and for the City of New Hope, a public body corporate and politic under the laws of the State of Minnesota, of 4401 Xylon Avenue North, New Hope, Minnesota 55428, SELLER, and Kingsman, LLC, a Minnesota limited liability company, of 3512 Hampshire Avenue North, Crystal, Minnesota 55427, BUYER. 2. OFFER/ACCEPTANCE. Buyer offers to purchase and Seller agrees to sell real property legally described as: Lot 24, Block 5, J. P. Riedel & Company's St. Raphael Addition, Hennepin County, Minnesota; subject to and together with easements, restrictions and covenants of record; and subject further to the reservation of the easement described in Section 6(E) below. Property Tax Identification Number or Tax Parcel Number 08 118-21-22-0075; located at 7819 Angeline Drive, 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. This offer to purchase, unless accepted sooner, shall be void at 11:59 a.m. on ,2004, and in such event all earnest money shall bc refunded to Buyer. 4. PERSONAL PROPERTY AND FIXTURES INCLUDED IN S.~I.F.. The following items of personal property and fixtures owned by Seller and cun-ently 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 fmtures, 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 thc following property: N/A. 5. PRICE AND TERMS. The price for the real ~-nd pcr:cr=l property included in this sale is Thirty-Five Thousand and 00/100 Dollars ($35,000.00), which Buyer shall pay as follows: Earnest money of $0.00 by CASH, CHlgCK, NOTE payable to: [] 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 Umst account pending closing, [] Seller's broker, to be deposited or held by broker according to the requirements of Minnesota Statutes, [] Other ; rec:ipt of ':&2c~ i: h=:':y ac!~cwlcdged and $35,000.00 cash, on ,2004, the Date of Closing. 6. DEEDfMARKETABLE TITLE. Upon performance by Buyer, Seller shall execute and dehver a 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. Restrictions 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 a~.d 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: A 15 foot easement for drainage and utility purposes (the exact description of which will be obtained prior to Closing). 1 7. REAL ESTATE TAXES ~ 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 tax :'.:tzm.~.t: f~r :'.'-zh ."'..xzs -.re not iss'a:nz: cf tho *.-~x st.-.tzm:nt:). S¢ller represents thc taxes due and payable in the year(s) 2005 will be ?~rLL, P.a.~.T, NON-homestead classification, unless Buyer changes the tax classification for taxes payable in the year following closing by taking possesiion of the real property as Buyer's homestead and filing a new homestead declaration within the time required by law. ,c,~ ..... ~ ..... ~ ..... ~-'~ -2n '~- ....... * -'-"; ..... "'~'~ :?.~r: cf ~e t~xe:. If the taxes due and payable in the year following closing are PART or NON-homestead classification and the closing takes place after the date by which Buyer must take possession of the real property as Buyer's homestead to .file for homestead tax status for taxes due and payable in such year, Seller shall pay to Buyer at closing ON/A as Seller's share of such taxes. [Strike one] BUYER AND SEI.I,F.R SHALL PRORATE AS OF THE DATE OF CLOSING / 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. [Strike one.] BUYER SHALL ASSUME / SELLER SHALL PAY ON DATE OF CLOSING all other special assessments levied as of the date of this Purchase Agreement. [Strike oneJ BUYER SHALL ASSUME / SELLER SHALL PROVIDE FOR PAYMENT 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 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 of the assessment; or C. Declare this Purchase Agreement void by notice to Seller, and earnest money shall be refunded to Buyer. 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 BOI_~NDARY LINE, ACCESS, RESTRICTIONS AND LIEN WARRANTIE. S. 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 fight 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 resections 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. bz Ln wcr!~ng order .~n '~c 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 Dutch elm disease, oak wilt, or other disease of any trees on the real property. B. Seller knows of no hazardous 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 tanks having been located on the real property at any time, except as follows: C. Seller's warranties and representations contained in this paragraph 10 shall survive the delivery of the Deed or Contract for Deed. 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 prop~. 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 inspected, E. Statutory Disclosure. Pursuant to Minnesota Statutes sections 513.52 - 513.60 (effective January I, 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 written disclosure requirements [see (3) below]. Minnesota Statutes Section 513.57, Subd. 2. LIABILITY. A seller who fails to make a disclosure as required by sectiom 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 refer 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: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 transfer residential real property, the seller shall make a written disclosure to the prospective buyer. The disclosure must include all matorial facts pertaining to adverse physical conditions in the property of which the seller is aware that could adversely and significantly affect: (1) an or~tlnary 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 in good faith and based upon the best of thc 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 poss~le, but in any event before closing, if thc 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 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 Subd. 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 if a written report that discloses the infomtion 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 gov~nmental agency, or any person whom the seller, or prospective buyer, reasonably believes has the expertise necessa~ 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. 0o) 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) if a copy of the report is provided to the seller. [] (3) Waiver of Disclosure. Miunesota 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 sections 513.52 to 513.60 does not waive, limit, or abridge any obligation for seller disclosure created by any other law. Seller and Buyer waive the written disclosure required under sections 513.52 to 513.60. SELLER: BUYER: ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE KINGSMAN, LLC By: By: Daniel I. Donahue Its: Its: Executive Director By: Don Collier Its: President 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, worlananship, or fitness for any particular purpose. (This paragraph is not intended to waive or limit any provisions of Minn. Stat., Chapter 327A.) 11. DISCLOSURE OF NOTICES. Seller has not received any notice from any governmental authority 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. Ail 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. To demonstrate that Seller's title is good and marketable of record, within a reasonable time after acceptance of this Purchase Agreement, Seller shall furnish Buyer with an Abstract of Title or a Registered Property Abstract certified to date including proper searches covering bankruptcies and state and federal judgments, federal court judgment liens in favor of the U.S., liens, and levied and pending special assessments. Buyer shall have ten (10) business days after receipt of the Abstract of Title or Registered Property Abstract either to have Buyer's lawyer examine the title and provide Seller with written objections or, at Buyer's own expense, to make an application for a title insurance policy and notify Seller of the application. Buyer shall have ten (10) business days after receipt of the Comrcfitment 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 fi:om Seller. 15. TITLE CORRECTIONS AND REMEDIES. Seller shall have 120 days fi:om receipt of Buyer's written title objections to make tlfie 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 fi:om 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. 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, wh/chever is later. Bo 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. 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: (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 thc cost of curing objections to rifle, 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 permitted by law; (4) Specific performance within six months after such right of action arises. D. If rifle 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 law: (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 right 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 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 acrion arises. 16. NOTICES. Al/notices required herein shah 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. 17. SUBDMSION OF LAND. If this sale constitutes or requires a subdivision of land owned by Seller, Seller shall pay all subdivision expenses and obtain all necessary governmental approvals. Seller warrants that the legal description of the real property to be conveyed has been or will be approved for recording as of the Date of Closing. 18. MINNESOTA LAW. This contract shall be governed by the laws of the State of Mirmesotm 19. WELL DISCLOSURE. [Check one of the following~ [] Seller certifies that Seller does not know of any wells on the real property. [] Wells on the real property are disclosed by Seller on the attached Well Disclosure Form. 20. SEWAGE TREATMENT SYSTEM DISCLOSURE. [Check eitherA orB] A. [] Seller cerrifies that sewage generated at the property goes to a facility permitted by the Minnesota Pollution Conlrol Agency (for example, a city or municipal sewer system). B. [] Seller certifies that sewage generated at the property does not go to a facility permitted by the Minnesota Pollution Control Agency and Seller's Disclosure of Individual Sewage Treatment System is attached (attach form). [Check either C or DJ C. [] Seller does not know if there is an abandoned individual sewage system on the property. D. [] Seller knows that there [strike one]: are/are no abandoned individual sewagetreatment 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.J 21. LEAD PAINT DISCLOSURE. trcJ:cc!: ~n.~ cf thc f.~lt.~.'~:'i.x~t7 N/A [] Seller represents that the dwelling was constructed on the real property in 1978 or later. [] Seller represents that the dwelling was constructed on the real property before 1978. (If such housing is located on the real property, attached and made a part of tiffs Purchase Agreement is "LEAD PAINT ADDENDUM FOR HOUSING CONSTRUCTED BEFORE 1978".) 22. WETLANDS, SHORELAND, AND FLOOD PLAIN CONCERNS. Currently the law does not require Seller to disclose Seller's knowledge, if any, of the existence of wetlands, shoreland, or flood plain on or affecting the real property. If Buyer has not already investigated these concerns, Buyer rrdght want to include Seller's disclosures regarding these concerns. [Check the box if the following provision applies to this Purchase Agreement:] [] ADDENDUM TO PURCHASE AGREEMENT: WETLANDS, SHORELAND AND FLOOD PLAIN DISCLOSURE, M.S.B.A. Real Property Form No. 8 (1997), is included as an addendum to this Purchase Agreement. 23. SELLER'S AFFIDAVIT. At closing, Seller shall supplement the warranties and representations in ihis 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 office of Seller's lawyer, Buyer's title insurer, or at some other mutually agreeable location. [State other locationJ: New Hope City Hall, 4401 Xylon Avenue North, New Hope, IVIN 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: SEE EXHIBIT A ATTACHED H~RETO. 26. ADDENDA. Attached are 3 addenda which are made a part of this Purchase Agreement. 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 4 originals of this Purchase Agreement. ITHIS 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 contract. These are questions for your lawyer. SELLER: I agree to sell the property for the price and terms and conditions set forth above. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOP, THE CITY OF NEW HOPE Date: ,2004, By: Daniel J. Donahue Its: Executive Director Date: By: ,2004. Don Collier Its: President BUYER: I agree to purchase the property for the price and terms and conditions set forth above. KINGSMAN, LLC Date: ,2004. By: 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 Eu;~r/Selleri Steven A. Sondrall, #103391 Jensen & Sondrall, P.A. 8525 Edinbrook Crossing, Suite'201 Brooklyn Park, MN 55443 EXI=IIRIT A ADDITIONAL TERMS RELATING TO PURCHASE AGREEMENT FOR 7819 ANGELINE DRIVE Seller makes no warranties as to the condition of the Property and Buyer acknowledges that it is purchasing the Property in its "as is" condition. Buyer further acknowledges that it intends to construct a single-family home (the "Dwelling") on the Property and has agreed to the following conditions in connection with said construction: The Dwelling will have brick wainscoting finish on the exterior front elevation acceptable to the City of New Hope. The Dwelling will be located on the Property so as to extend the driveway to allow for additional on-site parking acceptable to the City of New Hope. The basement of the Dwelling will be waterproofed in a manner acceptable to the City of New Hope. The Buyer will do necessary site work prior to construction of the Dwelling as directed by the City of New Hope to include the following: a. A minimum of two soil borings will be conducted to determine the water table. The building pad will be elevated so that the basement floor grade is at least 910 feet. The Buyer will strip topsoil and grade and compact new soil brought to the Property to increase the grade height. Seller acknowledges and agrees that it will be responsible for all costs related to providing and hauling additional dirt to the site from the Ryland development. All obligations and representations of Seller and Buyer set forth above shall be true as of the date of closing and will survive the conveyance of the Property by Seller to Buyer. SELLER: ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE BUYER: KINGSMAN, LLC By: Don Collier Its: President By: By: Daniel J. Donahue Its: Its: Executive Director Mill~/Davis Co. ~ St. Paul, MN 651-842-1988 ~1~.S~* Form t519VLDS (10103) VACANT LAND DISCLOSURE STATEMENT This form approved by the Minnesota Association of REALTORS~, which disclaims any liability arising out of use or misuse of this form. ©2003, Minnesota Association of REALTORS©, Edina, MN 1. Date 2o04 2. Page 1 of Pages :3. I THE INFORMATION DISCLOSED IS GIVEN TO THE BEST OF THE SELLER'S KNOWLEDGE. 5. 6. 7. 8. 9. 10. 11. 12. 13. A. GENERAL INFORMATION: 14. (1) When did you purchase the property? 15. (2) Type of title Evidence: 16. Location of Abstract: NOTICE: 7his disclosure is not a warranty or a guaranty of any kind by the Seller(s) or Licensee(s) repmssnting or assisting any party(s} in the transaction. INSTRUCTIONS TO THE BUYER: Buyers are encouraged to thoroughly inspect the property personally or have it inspected by a third party, and to inquire about any specific areas of concern. NOTE: If Seltsr answers 'NO" to any of the questions listed below, it does not necessarily mean that it does not exist on the property. 'NO" may mean that the Seller is unaware that it exists on the property. INSTRUCTIONS TO SELLER: (1) Complete this form yourself. (2) Consult prior disclosure statement(s) and/or inspection report(s) when completing this form. (3) Describe conditions affecting the property to the best of your knowledge. (4) Attach additional pages with your signature if additional space is required. (5) Answer all questions. (6) If any items do not apply, write "NA" (not applicable). Property located at 7g1 q An~eIine DHve City of New Ho~e , County of [-]'en~e?in , State of Minnesota December: 1 q99 Abstract Registered (Torrens) [] 17. Is there an existing Owner's Title Insurance policy? 18. (3) Has the land been surveyed? 19. Year surveyed: __ 20. J4) What company/person performed the survey? 21. Name __ Address 22. (5) Is this platted land? 23. If "Yes", 24. Has the plat been recorded? 25. Do you have a certificate of survey in your possession? 26. If "Yes', Who completed the survey? 27. (6) Are you aware of any property markers on the proper[y? 28. If "yes," give details: Yes[--]No[~ Yes[]No[] When? Phone Yes~No~--] Yesl'-~ No[~ Yes~--] No r-] Yes[~ No[--~ 29. To your knowledge, are there: 30. (7) Encroachments? Yesl--~No~] 31. (8) Easements, other than utility or drainage easements? Yes[~ NoN 32. (9) Is the property located in a designed flood plain? Yes~=..~No~=~ 33. (10) Has there ever been a flood or other disaster at the property? Yesl INoL_I 34. (11) Are you in possession of prior vacant land disclosure statement(s)? (if "yes," please attach) Yes [] No [] 35. (12) Comments: 36. 37. B. USE RESTRICTIONS AND FINANCING: 38. (1) To your knowledge, do any of the following types of covenants, conditions, reservations or restrictions affect the land?. 39. (a) Subdivision or other recorded covenants, conditions or restrictions? Yes[~ No[~ 40. (b) Association requirements or restrictions? Yes[__J NoN'I 41. (c) A right of first refusal to purchase? Yes[~ No~..~ 42. (d) Reservations? Yes~.=~ No~=.=~ 43. (e) Department of Natural Resources? Yes[=~ No~.~ 44. (f) Watershed? Yes [_~ No ~.~ 45. (g) Local municipality? Yesl INo[_~ 46. (2) If any of the above questions [B(1)] are answered "yes," list which written copies of these covenants, conditions, 47. reservations, or restrictions that you have: 48. 49. (3) Have you ever received notice from any person or authority as to any breach of any of these covenants, conditions, 50. reservations, or restrictions? Yes[~No~] 51. If "Yes" describe: 52. 53, (4) To your knowledge, is this property approved for FHA financing? 54. C. CONDITION OF PROPERTY To your knowledge: 55. (1) Are there any structures, improvements, emblements, or personal properly included in the sale? 56. If "Yes," list all items: Yesr--~No[] Yes[-'~ No[-~ 57. 58. Are there any problems or defects with any of the above item~? Yes{--] No ~i 59. 60. If "Yes," describe all problems and defects: 61. (2) Were there any previous structures on the property? 62. (3) Are there any buded storage tanks, or buried debris or waste on the property? 63. If "Yes," give details: Yesr~No[~ Yesl'~ No[-] 65. 66. 67. (4) Are there any hazardous or toxic substances or wastes in, on or affecting this property? If "Yes," give details: Yesr--~ NoJ--~ 68. (5) Have any soils tests been performed? 69. When? 70. Results? By whom? Yesr--] No~--] 71. 72. 73. (6) Are there any settling or soil movement problems on or affecting this property? If "Yes," give details: Yes~] No [-'] 74. MN:VLDS-1 (10103) ORIGINAL COPY TO LISTING BROKER: COPIES TO SELLER, BUYER, SELLING BROKER WARNING: UNAUTHORIZED COP~ING OF THIS FORM PROHIBITED. Listing Agent and Broker for this transaction are: N/A Selling Agent and Broker for this transaction are: N/A Buyer's or Lender's Title Insurer: Old Republic National Title Insurance Company 400 Second Avenue South Minneapolis, Minnesota 55401 [1994; Rev. 1996; Rev. 1997; Rev. 2002] P:'~A.~oraey~LB\I -Client Folfle~s',12Nl-l~9-11 ~ 1 b'~9.113164101 -PA. doc Form 1519VLDS-2 (~ 0/031 VACANT LAND DISCLOSURE STATEMENT 75. Page 2 of Pages 76. THE INFORMATION DISCLOSED IS GIVEN TO THE BEST OF THE SELLER'S KNOWLEDGE. 77. Proper[7 located at ?R19 An_~eline ]3fl-ye 78. C. CONDITION OF THE PROPERTY CONTINUED To your knowledge: 79. (7) Are there any dead or diseased trees? 80. If "Yes," give details: Yes~--~ No [~] 81. 82. (8) Are there any insect/animal/pest infestations? 83. (9) Other? Yes[---[ No [~ 84. D. UTILITIES: To your knowledge: 85. (1) Have any percolation tests been performed? 86. When? By whom? 87. Results? Yes [--] No r--i, 88. 89, 91. 92. 93. 94. 95. 96. 97. 98. 99. 100. 101. 102. · 103. 104. 105. 106. 107. 108. 109. E: 110. 111. 112. 113. (2) Are any of the following presently existing within the Property? (a) Connection to public water? (b) Connection to public sewer? (c) Connection to private water system off property? (d) Connection to electric uffiity? (3) Private Sewer System Disclosure: (A Private Sewer System Disclosure is required by Minn. Stat. 115.55) (Check approp~fate box) The seller does not know of a pdvate sewer system on or serving the above described real property. There is a pdvate sewer system on or serving the above described real property. See Private Sewer System Disclosure. There is an abandoned private sewer system on the above described real property. See Private Sewer System Disclosure. (4) Private Well Disclosure: (A Well Disclosure Statement and Certificate are required by Minn. Stat, 103t.235) (Check appropriate box) FThe seller certifies that the seller does not know of any wells on the above described real property. The seller certifies there are one or more wells located on the above described real property. See Well Disclosure StatemenL Are there any wells serving the above described property that are not located on the property? To your knowledge, is this property in a Special Well Construction Area? (5) Are any of the following existing atthe boundary of the property? (a) Public water system access? (b) Private water system access? (c) Electric service access? PREFERENTIAL PROPERTY TAX TREATMENT Is the property subject to any preferential property tax status or any other credits affecting the property which would terminate upon the sale of the property? (e.g., Green Acres, CRP, RIM, etc.) If "Yes," please explain: Yes[~No[~ Yes[=_~ No[==~ Yes ~..~No~=~ Yesl INoL_J Yes ~[No]--] 114. F: 115. 11§. 117. OTHER MATTERS (1) To your knowledge, are there any landfills or waste disposal sites within two (2) miles of the property? If '"Yes," state their locations: Yes~]No~] 118. 119. 120. 121. 122. (2) To your knowledge, is fftere anything else that may materially and adversely affect the proper[y? e.g., including but not limited to, pending claims or litigation, notice from any govemmental authority of violation of any law or regulation, proposed zoning changes, street changes, threat of condemnation, grave sites? Yes [] No [] If "Yes," give details: 123. 124. 125. 126. 127. 128. 129. LISTING BROKER AND LICENSEES MAKE NO REPRESENTATIONS AND ARE NOT RESPONSIBLE FOR ANY CONDITIONS EXISTING IN THE PROPERTY. G. SELLER'S STATEMENT: (To be signedat time of listing) Seller(s} hereby state(s} the condition of the property to be as stated above and authorize(s} any Licensee(s) representing or assisting any party/les in this transaction to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the property. 130. 131. 132. 133. (Seller) Daziel .~. Dona~ue, F. xecufive [~rector, ~qcw Hope EDA (Date) (Seller) Don Collier, ~'as~dcnt, New Hope EDA (Date) H. BUYER'S ACKNOWLEDGMENT: (To be signed at time of purchase agreement) I/VVe, the Buyer(s) of the property acknowledge receipt of the Vacant Land Disclosure Statement and agree that no representations regarding the condition of the property have been made other than those made above. 134. 135. 136. 137. (Buyer) s (Date) (Buyer) (Date) SELLER'S ACKNOWLEDGMENT: (To be signed at time cf purchase agreement) AS OF THE DATE BELOW, I/We, the Seller(s} of the property, state that the condition of the property is the same, except changes as indicated below. 138. 139. (Seller) Daniel J'. Doaal~uc, F_,xecutJve l~rector, New Hope EDA (Date) (Se[le0 Don Collier, President, New Hope FDA 140. MN-VLDS-2 (10/03} ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER. (Date) Miller, Davis Ca. O SL Paul, MN 651-642-1988 ,~i~O~='' Form 1519WD (R=v. 10/03) WELL DISCLOSURE STATEMENT This form approved by the Minnesota Association of REALTORS~, which disclaims any liability arising out of use or misuse of this form. © 2003, Minnesota Association of REALTORS©, Edina, MN 1. Date 2004 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, Seller 5. must disclose information in writing to the Buyer about the status and location of all known wells on the property. This 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 description and county, and a map showing 8. the location of each well. In the disclosure statement the Seller must indicate, for each well, whether the well is in 9. use, not in use or sealed. 10. Unless the Buyer and Seller agree to the contrary, in writing, 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 mason to know of the existence 12. or known status of the well, is liable to the Buyer for costs relating to sealing of the well and reasonable 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 7R l 9 An~eline ]"}rlve; New ]'-lope , 5~4~R T-:[enne?in City Zip Counb, 21. LEGAL DESCRIPTION: Lot 24= Block 5; 1. P_ Riedel & Company's St. Raphael Addition: 14ennep~n County.: Minnesota 22. 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 32. Well1 [] [] [] 33. Well 2 [] [] [] We,, 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~---I Noi-~ 41. Comments: 42. Contaminated Well: Is there a well on or serving the property containing contaminated water? 43. SEALED WELL INFORMATION 44. For each well designated as sealed above, complete this section. 45. When was the well sealed? 46. Who sealed the well? Yesr~ Nol~ 47. Was a Sealed Well Report filed with the Minnesota Department of Health? Yes~"-I No~] 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/les 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. Daniel J. Donahuc Executive Director New Hope EDA Don Collier President New Hooe EDA (Seller or Designated Representative) ' {Date) (Seller or D~signated Representative) (Date) 55. BUYER'S ACKNOWLEDGMENT 56. (Buyer) ' , Y, Jn§sman, [.LC (Date) (Buyer) (Date) 57. MN-WDS-1 (10103) ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER WARNING: UNAUTHORIZED COPYING OF THIS FORM PROHIBITED~ 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, jetted, 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 January 1, 67. 1975, contact your wel! 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. WATER WELL: A water well is any type of well used to extract groundwater for private or public use. Examples of 72. water wells are: domestic wells, drive-point wells, dug wells, remedial wells, and municipal wells. 73. 74. 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. 75. 76. 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. 77. 78. DEWATERING WELL: A dewatering well is a well used to lower groundwater levels to allow for construction or use of underground spaces. 79. 80. INDUSTRIAL/COMMERCIAL WELL: An industrial/commercial well is a nonpotable' well used to extract 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. 86. 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 sealed by a licensed well contractor. 87. 88. 89. g0. SEALED: A well is "sealed" if a licensed contractor has completely filled a well by pumping grout material throughout the entire bore hole after removal of any obstructions from the well. A well is "capped" if it has a metal or plastic cap or cover which is threaded, bolted, or welded into the top of the well to prevent entry into the well. A "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 TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER Miller/Davis Co. ~ St, Paul, MN 651-642-1988 ~{~,~' Form 15t9 MAP (Rev. 7/94) PRIVATE SEWER SYSTEM AND/OR WELL LOCATION MAP ' This form approved by the Minnesota Association of REALTORS~, which disclaims any liability arising out of use or roisuse of this form. Date Page 1 of Pages 2. Please use the space below to sketch the real property being sold and the location of each __ SEWER SYSTEM __ WELL on the Property, (check all that apply) 3. Include approximate distances from fixed reference points such as streets, buildings and landmarks. 4. Property located at: 5. 6. Seller and Buyer Initial: Seller(s) A'rracH ADDITIONAL SHEETS AS NEEDED Buyer(si 7. MN-PSSWM (7/94) ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER WARNING; UNAUTHOR~,~D COPYING OF THIS FORM PROHIBITED. : 5524 .., 55~9 ~ : 5520 ~ . N .................... - ....... ' ...................................... ' 543~ 5437 ! 5435 5437 5500 : 5443 ~ ~.. 5444 ~ 5437 i t 54,t6 ~ 54.17 , :- ........... ; ..... ~ t ...................544~ : 5437 ~Zi543a, i5433 ~Zl 5434I 5433 ......... · '; ~5426 542? ~1:- 7~0~ i 5425 ~ [ 5406 : "'; ........ ~1-- .- : --- . ~ 5319 ~ ~ 5324 ~ 5331 i ! 5,1421 53Z5 ilJJ~ 5201 ~. --. ... ! '-... ~ ~. ..'./~ .',~ ,.._ .. ~! ,:.-._." ...::'.~-:; .; ; , · .' ~,. .,: ~,~. 3., -.-,,. NOTICE OF PUBLIC HEARING ON A PROPOSED SALE/CONVEYANCE OF REAL PROPERTY IN THE CITY OF NEW HOPE (7819 Angeline Drive) NOTICE IS HEREBY GIVEN, that the Economic Development Authority in and for the City of New Hope (the "EDA") will meet in the Council/Commissioners' Chambers in the New Hope City Hall, 4401 Xylon Avenue N., New Hope on the 8th day of November, 2004, at 7 o'clock p.m. (or as soon thereafter as the matter may be heard) to hear, consider and pass upon all written or oral objections, if any, to a proposed sale/conveyance of the following described property to Kingsman LLC: 7819 Angeline Drive (PID No.082118-21-22-0075) Block 5, JP Reidel & Company St. Raphael Addition Lot 24, All persons desiring to be heard in connection with the consideration of this proposed transaction are requested to be present at this heating and to make their comments or objections, if any, to the proposal. The public may see the terms and conditions of the proposal at the offices of the EDA, located at City Hall, 4401 Xylon Avenue N., New Hope, Minnesota 55428. The EDA will at this hearing meet to decide if the sale/conveyance is advisable. Accommodations such as sign language interpreter or large printed materials are available upon request at least 5 working days in advance. Please contact City Clerk Valerie Leone (telephone (763) 531-5117, TDD number (763) 531-5109) to make arrangements. Dated the 11th day of October, 2004. s/Daniel J. Donahue Daniel J. Donahue EDA Executive Director (Published in the New Hope-Golden Valley Sun-Post on the 21st day of October, 2004.) P:L~ttorney\SAS\l Client FilesX2 City of New Hope\99~11316(Angellne drive)XNoti¢¢ of Public Hearing re Proposed Land Transfer. doc EDA ~ RE(~UEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development 11-08-04 EDA Item No. By: Kirk McDonald, Director of CD By: 6 DISCUSSION REGARDING APPEAL OF COMMISSIONER'S AWARD FOR 7809 BASS LAKE ROAD (IMPROVEMENT PROJECT FILE 716) REOUESTED ACTION The city attorney wants to update the EDA on negotiations with the property owner of 7809 Bass Lake Road. MOTION BY SECOND BY , /- I: \ RFA \ PLANNING \ Housin~ \ \ Q - update eye clinic 11-8-04 DOUGLAS J. DEBNERz GORDON L. JENSEN1 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 . TELEEAX (763) 493-5193 e-mail law~j ensen-sondrall.com By e-mail and regular mail November 8, 2004 Mr. Dan Donahue EDA Executive Director City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 RE: Winnetka East Redevelopment: Proposed Resolution Approving Appraisal Of Damages for the Taking of Tracts D, F & G, Registered Land Survey No. 97 Our File: 99.53075 Court File: CD-2743 Dear Dan: Enclosed is a proposed EDA resolution for consideration at tonight's meeting, titled as follows: "RESOLUTION FINDING NEED TO ACQUIRE TITLE AND POSSESSION OF THREE ADDITIONAL WINNETKA AVENUE EAST AREA DEVELOPMENT PROPERTIES PRIOR TO THE COMMISSIONER'S AWARD, APPROVING THE APPRAISAL OF DAMAGES FOR EACH PROPERTY RESULTING FROM THE TAKING, AND RATIFYING AND AUTHORIZING ALL STEPS TAKEN BY STAFF TO ACQUIRE THE PROPERTIES" The three tracts that are subject to this Resolution are all within the vacated Sumter Avenue North area. All were dedicated in an unusual manner in that they were each designated for street use as a separately-defined easement parcel rather than as a 33-foot easement area within a developable lot. This title issue was inadvertently overlooked at the outset of the title review process and therefore these three tracts were unfortunately left out of the initial condemnation proceeding. We have scheduled a hearing before the Court on November 29, 2004, requesting leave to add these tracts to the pending condemnation proceeding. Typically such hearing would focus only on the propriety of adding additional property to the proceeding, and the EDA would then attempt to acquire the land by negotiation with the affected owners. However, in this case the land owners are deceased and the interests in these three tracts were not probated. It is therefore not possible to identify with complete certainty the parties entitled to damages for this taking. In order to be sure that all heirs are properly identified and compensated, the recommended November 8, 2004 Page 2 course is to make a deposit with the Court rather than directly paying the parties we believe to be heirs. Minn. Stat. § 117.042's "quick take" process provides the most expeditious way to achieve this goal, as it allows an initial deposit of funds in an amount determined reasonable based on EDA appraisal efforts. The Shenehon Company1 has provided appraisal assistance, and the enclosed Resolution functions to formally approve the amounts they calculated. Please note that in order to streamline the acquisition process and avoid an additional hearing before Judge Crump in order to get a declaration that title has passed, we recommend that the EDA offer to pay the approved appraisal value for each of these tracts (a total of $13,200) on November 29, 2004 at the "quick take" hearing. This will allow the Court to find on the record that all requirements have been met to allow title to automatically pass on January 10, 2005 (which date is the first business day after the 90- day "quick take" period has run). We can then immediately file a certified copy of the Court's order with Hennepin County and complete the title transfer to the Ryland Group by providing a quit claim deed on January 10th. Early deposit of the full approved appraisal values for these tracts likely will also minimize the EDA's involvement in court briefing as to the proper heirs to be paid damages in connection with the taking. As always, please feel free to contact us with any questions or concerns. Sincerely, Clarissa M. Klug Asst. City Attorney JENSEN & SONDRALL, P.A. cmk~j ensen-sondrall.com Enclosure(s) cc: Kirk McDonald (with encl.) Valerie Leone (with encl.) P:~Attorney\Cmk\Clients\CNI-B99-53075\99-53075~016-1tr A Baldwin t:eso approving appraisal amounts.doc 1 The Shenehon Company was chosen because the three tracts at issue are small and accordingly can't be developed as stand- alone lots. Shenehon recently provided a detailed consulting report on the similarly-situated "gap" areas within Winnetka East.