11-13-2002 Council Agenda - Laserfiche WebLink

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PURCHASE AGREEMENT Dated: , 2002 1. Parties. The parties to this Purchase Agreement are: a. The Economic Development= Autlrorityof the City of Little Canada, a body_ corporate and politic under the Taws of the. state of Minnesota municipal cerperation, Attention: Mr. Joel Hanson, City Administrator, 515 East Little Canada Road, Little Canada, MN 55117 (the "Seller "); b. The Lodge at Little Canada LLC, a Minnesota limited liability company, Attention: Mr. George E. Sherman, c/o Sherman Associates, Inc., 233 Park Avenue South, Suite 201, Minneapolis, Minnesota 55415 (the "Buyer "). This Agreement sometimes refers to Seller and Buyer individually as a "Party" and collectively as the "Parties." 2. Property. The real property that is the subject of this Agreement is located at the southeast corner of Rice Street and Little Canada Road in the City of Little Canada, Ramsey County, Minnesota and is legally described on the attached Exhibit A (the "Property "). The primary improvements located on the Property are a building which was formerly operated as the Venetian Inn (the "Venetian Inn Building). The term "Property," as used in this Agreement shall include all improvements and fixtures located on the Property and all hereditaments and appurtenances to the Property. 3. Purchase and Sale. Seller agrees to sell the Property to Buyer pursuant to the terms of this Agreement, and Buyer agrees to purchase the Property from Seller pursuant to the terms of this Agreement. 4. Purchase Price. The purchase price for the Property is Seven Hundred Thousand and 00 /100 Dollars ($700,000.00). 5. Earnest Money. Seller's execution of this Agreement acknowledges Buyer's deposit of a $150,000.00 letter of credit (the "Letter of Credit ") with the City as earnest money (the "Earnest Money "). The Letter of Credit authorizes Seller to draw on the Letter of Credit: a. if Buyer fails to provide Seller with a replacement letter of credit in the amount of $150,000 and with terms otherwise identical to the Letter of Credit (except for the expiration date) on or before the date 30 days prior to the stated expiration date of the Letter of Credit or any replacement of letter of credit; or b. Buyer defaults in the performance of Buyer's obligations under this Agreement, Seller teuuinates this Agreement pursuant to Minnesota Statutes Section 559.21 and Seller's city administrator provides the issuer of the Letter of Credit with a written statement certifying that Seller has terminated this Agreement pursuant to Minnesota Statutes Section 559.21. 428339vRed V8 to V7; l 1/1/02