HomeMy WebLinkAbout05-24-1999 EDA CITY OF MOUNDS VIEW
ECONOMIC DEVELOPMENT AUTHORITY
MONDAY,May 24, 1999
AGENDA
ROLL CALL: President Coughlin, Vice President Stigney, Commissioner Marty,
Commissioner Quick, Commissioner Thomason
i',
1. AGENDA ADDITIONS
None
2. APPROVAL OF MINUTES
A. Approval of EDA minutes from May 10, 1999
3. SPECIAL ORDER OF BUSINESS
none
4. CONSENT AGENDA
5. EDA BUSINESS
A. 7:05 Public Hearing- Sale of 6991 Pleasant View Drive to Marquis Builders Inc.
B. Proposal for Participation in the Housing Replacement Program for 2225 Hillview
Road
6. REPORTS
7. ADJOURNMENT
EDA
CITY OF MOUNDS VIEW
MEETING MINUTES
MONDAY,MAY 10, 1999
8:49 P.M.
CALL MEETING TO ORDER
ROLL CALL: Quick, Stigney, and Thomason.
NOT PRESENT: Coughlin and Marty.
1. AGENDA ADDITIONS
None.
. 2. APPROVAL OF EDA MINUTES FROM APRIL 26, 1999
MOTION/SECOND: Thomason/Stigney. To approve minutes of EDA for April 26, 1999.
Ayes - 3. Nays - 0. Motion carried.
3. SPECIAL ORDER OF BUSINESS
None.
4. CONSENT AGENDA
A. Set Public Hearing for May 24, 1999 for the sale of City owned property
located at 6991 Pleasant View Drive
Vice President Stigney asked the EDA if anyone would like to remove items for discussion.
MOTION/SECOND: Quick/Thomason. To approve the Consent Agenda for item A as listed
above.
Ayes - 3. Nays - 0. Motion carried.
5. EDA BUSINESS
None.
1 U:\CARTS\COUNCIL\MINUTES\MVEDA10.MAY "
i'll
6. REPORTS
There were none at this time. i
7. ADJOURNMENT
Vice President Stigney adjourned the meeting at 8:51 P.M.
Respectfully submitted,
Recorded and transcribed by:
Carla Wirth
TimeSaver Off Site Secretarial, Inc.
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Item No. A
Meeting Date: 5-24-99
Staff Report No.
Type of Business: EDA_
WK:Work Session;PH:Public Hearing;
CA:Consent Agenda;EDBA:EDA Business
Mounds View Economic Development Authority
Staff Report
To: Mounds View Economic Development Authority
From: Steve Dorgan, Housing Inspector
Item Title/Subject: 6991 Pleasant View Drive
Sale of Property to Marquis Builders, Inc.
Date of Report: May 20, 1999
SUMMARY
At the city council workshop meeting on May 3, the council directed staff to arrange for the sale
of the city owned property at 6991 Pleasant View Drive to Marquis Builders, Inc. for the
redevelopment of the subject lot. State Statutes require that before the City/EDA can sell
property a public hearing must be held. Staff has arranged for the publication of a public hearing
notice as well as mailing a notice to all property owners within 350 feet of the subject site.
Attached for review is a purchase and redevelopment agreement drafted by legal staff for the
subject lot.
ACTION TO BE CONSIDERED
Approve Resolution No. 99-EDA-113 for the sale of the city owned property located at 6991
Pleasant View Drive to Marquis Builders, Inc. for the purpose of redeveloping the subject site.
Steve Dorgan, Housing Inspector
612/717-4023
Attachements: 1) Resolution No. 99-EDA-113
2) Purchase and Redevelopment Agreement- 6991 Pleasant View Drive
MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 99-EDA-113
COUNTY OF RAMSEY
STATE OF MINNESOTA
A RESOLUTION APPROVING AND AUTHORIZING A PURCHASE AND
REDEVELOPMENT AGREEMENT BY AND BETWEEN THE MOUNDS VIEW
ECONOMIC DEVELOPMENT AUTHORITY AND MARQUIS BUILDERS, INC.
It is hereby resolved by the Board of Commissioners (the "Board") of the Mounds View
Economic Development Authority(the "Authority") as follows:
1. Recitals.
a. The Authority has the powers provided in the Minnesota Statutes,
Sections 469-124 10 469.134 and 469.090 to 469.108 (collectively, the
"Act").
b. Pursuant to and in furtherance of the objectives of the Act, the
Authority has undertaken a program to promote development and
redevelopment of certain land within the City of Mounds View and in this
connection is engaged in carrying out the Mounds View Economic
Development Project (the"Project")within the City.
c. There has been approved pursuant to the Act a Project Plan for the
Project.
d. The redevelopment and development of property within the Project
by private developers are stated objectives of the Project Plan.
e. The Authority acquired the land and house located at 6991 Pleasant
View Drive(the "Property") as part of the Housing Replacement Program
per Resolution No. 98-EDA-93 and in furtherance of the objectives stated
above.
f. Marquis Builders, Inc. (the "Developer") is offering to purchase the
Property from the EDA under the guidelines of the Housing Replacement
Program for$49,500 of which the terms of the purchase and
redevelopment of the Property are outlined in the attached Purchase and
Redevelopment Agreement (the"Agreement").
EDA RESOLUTION NO. 99-EDA-113
PAGE TWO OF TWO
2. The Board hereby determines that the Authority's execution of the Agreement and
subsequent sale and redevelopment of the Property would be in furtherance of the Project Plan
and hereby approves and authorizes said actions, including the execution of the Agreement by the
officers of the Authority in their discretion and at such time, if any, as they may deem appropriate.
3. Upon execution and delivery of the Agreement, the officers and employees of the
Authority(including members of the City staff, acting in their capacity as staff to the Authority as
well) are hereby authorized and directed to take or cause to be taken such actions as may be
appropriate or necessary on behalf of the Authority to implement the Agreement, including the
sale and redevelopment of the Property, per the provisions set forth in the Agreement.
4. The Board hereby determines that the execution and performance of the
Agreement will help realize the public purpose of the Act and are in furtherance of the Project
Plan.
Adopted by the Board of Commissioners of the Mounds View Economic Development
Authority on May 24, 1999.
BY:
Dan Coughlin, President
ATTEST:
Charles S. Whiting, Executive Director
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DRAFT
PURCHASE AND REDEVELOPMENT AGREEMENT
BY AND BETWEEN
THE MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
AND
MARQUIS BUILDERS,INC.
This document was drafted by:
KENNEDY&GRAVEN,Chartered
470 Pillsbury Censer
Minneapolis,MN 55402
WG-162543
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PURCHASE AND REDEVELOPMENT AGREEMENT
THIS AGREEMENT is made as of _by and among the
MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY, a public body politic and
corporate under the laws of the State of Minnesota (the "Authority"), located at 2401 Highway 10,
Mounds View, Minnesota 55112-1499, and MARQUIS BUILDERS, INC., a Minnesota
corporation(the "Developer"),located at 1211 Old Highway 8 NW,New Brighton,MN 55112.
WITNESSETH:
WHEREAS, the Authority is the owner in fee simple of the parcel of land (the "Land")
located in the City of Mounds View, County of Ramsey, State of Minnesota, and legally described
as:
Lot 70, Knollwood Park,Mounds View,Minnesota, according to the
plat filed with the Ramsey County Recorder.
The Land and all rights, privileges, easements, tenements, hereditaments, and appurtenances
belonging thereto, shall hereinafter be referred to as the "Property". The street address of die
Property is 6991 Pleasant View Drive,Mounds View,Minnesota 55112.
WHEREAS, the Authority deems it to be in the public interest to facilitate and encourage
redevelopment of the Property by private activity; and
WHEREAS, the Developer has proposed a development ("Development") within such
Property which the Authority believes will promote and carry out the objectives of the Authority,
will be in the vital best interests of the Authority, will promote the health, safety, morals, and
welfare of its residents and will be in accord with the public purposes and provisions of the
applicable state and local laws and requirements under which activities within the Authority have
been undertaken and are being assisted; and
WHEREAS, the Developer proposes to construct on the Property a 1600 sq. ft. three
bedroom, single story walkout, single family home, including two full bathrooms and a three car
garage,with an estimated market value of$184,500.00.
WHEREAS, the Developer is willing to purchase the Property and to develop the Property
for and in accordance with this Agreement; and
WHEREAS, the Authority desires to convey the Property to Developer and Developer is
desirous of purchasing the same.
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
contained and other valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby covenant and agree as follows:
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AGREEMENT
1.0. Definitions. In this Agreement, unless a different meaning clearly appears from the
context:
(a) "Agreement" means this Agreement, as the same may be from time
to time modified, amended,or supplemented.
(b) "Authority" means the Mounds View Economic Development
Authority.
(c) "Certificate of Completion" means the certification provided to the
Developer, substantially in the form attached as Exhibit B to this Agreement,
pursuant to Section 20 of this Agreement.
(d) "City"means the City of Mounds View,Minnesota.
(e) "Construction Plans" means the plans, specifications, drawings and
related documents on the construction wort;to be performed on the Property which
(a) shall be as detailed as the plans, specifications, drawings and related documents
which are submitted to the appropriate building officials of the Authority, and (b)
shall include at least the following: (1) foundation plan; (2) basement plans; (3)
floor plan for each floor; (4) cross sections of each (length and width); and (5)
elevations(all sides).
(f) "County" means the County of Ramsey,Minnesota.
(g) "Developer" means Marquis Builders, Inc., or its permitted
successors and assigns.
(h) "Event of Default" means an action by the Developer listed in
Section 17 of this Agreement.
(i) "Holder" means the owner of a Mortgage.
(j) "Material" means any effect or change which sirificantly alters the
intended use of the Property, or increases or decreases the costs of any individual
item of the Minimum Improvements by more than$2,500.
(k) "Minimum Improvements"means the construction of a 1600 sq. ft.
three bedroom,single story walkout,single family residential home, including two
full bathrooms and a three car garage,with an estimated market value of
$184,500.00.
(I) "Mortgage" means any mortgage made by the Developer which is
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secured, in whole or in part, with the Property and which is a permitted
encumbrance pursuant to the provisions of this Agreement.
(m) "Parcel" means the real property so described as above as the
Property.
(n) "Property" means the real property upon which the Minimum
improvements will be constructed, a legal description of which is set forth at Exhibit
A of this Agreement. After construction of the Minimum Improvements, the term
means the Property as improved. The Property consists of one Parcel.
(o) "State" means the State of Minnesota.
(p) "Termination Date" means the date on which the Developer receives
a Certificate of Completion pursuant to the terms and conditions of this Agreement.
(q) "Unavoidable Delays" means delays beyond the reasonable control
of the party seeking to be excused as a result thereof which are the direct result of
strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other
casualty to the Minimum improvements, litigation commenced by third parties
which,by injunction or other similar judicial action,directly results in delays,or acts
of any federal, state or local governmental unit (other than the City or Authority in
exercising their rights under this Agreement) which directly result in delays.
Unavoidable Delays shall not include delays in the Developer's obtaining of permits
or governmental approvals necessary to enable construction of the Minimum
Improvements by the dates such construction is required under Section 20 of this
Agreement.
2.0. Premises To Be Purchased. Subject to compliance with the terms and conditions of
this Agreement, Authority shall sell to Developer and Developer shall purchase from Authority the
Property.
3.0. Purchase Price_ The purchase price ("Purchase Price") of the Property shall be
$49,500.00 payable as follows:
3.1. The amount of $1,000.00 as earnest money (the "Earnest Money") to be
deposited by Developer with the closer for this matter,Land Title Inc., within three (3) days
after the date of this Agreement and held and disbursed under the terms of this Agreement.
3.2. The amount of$48,500.00 shall be payable in cash or certified check on the
Date of Closing.
4.0. Title To Be Delivered. Authority agrees to convey to Developer marketable fee simple
title to the Property subject only to the encumbrances approved by Developer in accordance with
Section 5.2. Should Developer determine Authority's title to the Property to be unmarketable,
Developer may make objections to Authority's title in accordance with Section 5.2. Nothing
contained in this Agreement shall be construed as a covenant requiring Authority to obtain
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marketable title to the Property if it is determined that Authority does not have marketable title.
5.0. Evidence Of Title.
5.1. Within fifteen (15) days after the execution of this Agreement by both parties
or such other time period as may be specified in this Article, Authority shall at the
discretion of the Authority:
(4) Cause to be delivered to the Developer at the cost of Developer, an
Abstract of Title for the Property (or a Registered Property Abstract if title to the
Property is registered) certified to date to include proper searches covering
bankruptcies,tax liens and state and federal court judgments and liens; or
(b) Cause to be issued and delivered to Developer, at the cost of
Developer, an ALTA Form 1970 commitment for an Owner's title insurance policy
(the "Commitment") issued by the Title Insurer pursuant to which the Title Insurer
agrees to issue to the Developer upon the recording of the documents of conveyance
referred to herein an ALTA Form 1970 Owner's title insurance policy in the full
amount of the Purchase Price, with standard exceptions for matters of survey,
parties in possession (other than tenants under current written leases) and unfiled
mechanic's or materialmen's liens deleted. The Commitment shall include proper
searches covering bankruptcies, state and federal judgments and liens and levied and
pending special assessments and shall be accompanied by copies of all recorded
documents presently affecting the Property.
5.2. Developer shall have fifteen (15) business days after receipt of all the title
evidence discussed in Sections 5.1 above to render objections to title in writing to Authority
and Authonty shall have the greater of(i) the number of days remaining until the Date of
Closing or (ii) thirty (30) days to have such objections removed or satisfied. If Authority
shall fail to have such objections removed within said time, the Developer may, at its sole
election: (a) terminate this Agreement without any liability on its part; in which event the
Earnest Money paid hereunder shall be promptly refunded in exchange for a quit claim deed
to the Property from Developer; or(b) take tide to the Property subject to such objections.
Authority agrees to use its reasonable efforts to satisfy promptly at its sole cost any such
objections,provided, however,that other than to cure liens,Authority shall not be obligated
to spend a total of more than$0.00 to cure all such objections.
6.0. Control of Property. Until the Date of Closing, Authority shall have the full
responsibility and the entire liability for any and all damages or injuries of any kind whatsoever to
the Property, to any and all persons, whether employees or otherwise, and to any other property
from and connected to the Property, except liability arising from the acts, omissions, intentional
tons or negligence of Developer, its agents or employees. If, prior to the Date of Closing, all or a
material portion of the Property shall be the subject of an action in eminent domain or a proposed
taking by a governmental authority (other than the City), whether temporary or permanent,
Developer, at its sole election, shall have the right to terminate this Agreement without liability on
its pan, by so notifying Authority in writing and all sums heretofore paid to Authority shall then be
promptly refunded to Developer in exchange for a quit claim deed for the Property. At its option,
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Developer may proceed to closing and in such event, the Authority shall either assign to Developer
all rights to recover any awards for such action in eminent domain or proposed taking or pay to
Developer any such awards or any proceeds already received. Authority agrees to keep the Property
continually insured during the term of this Agreement. U, pnor to the Date of Closing, all or ;i
portion of the Property shall be damaged or destroyed by any casualty such that the damage or
destruction will cost in excess of$5,000 to repair, Developer, at its sole discretion, shall have the
right to terminate this Agreement without liability on its part, by so notifying Authority in writing
and all sums heretofore paid by Developer shall be promptly refunded to Developer. At
Developer's option, Developer may proceed to closing and Authority shall either assign to
Developer ;ill rights under existing insurance policies to recover insurance proceeds for such
damage or pay to Developer all insurance proceeds already recovered on account of such damage.
7.0. Representations by the Authority and Developer. The Authority and the Developer
make the following representations as the basis for the undertaking on their part herein contained:
7.1. Representations of Authority. As an essential part of this Agreement and in
order to induce Developer to enter into this Agreement and purchase the Property, Authority
hereby represents and warrants to Developer
(a) The Authority has the power to enter into this Agreement and carry
out its obligations hereunder.
7.2. Representations and Warranties by the Developer. The Developer represents
and warrants that:
(a) The Developer is a duly organized corporation, in good standing
under the laws of the State of Minnesota, is not in violation of any provisions of as
charter, bylaws, or the laws of the State, is duly authorized to transact business
within the State, has power to enter into this Agreement, and has duly authorized the
execution, delivery, and performance of this Agreement by proper action of its
board of directors.
(b) The Developer has received no notice or communication from any
local,State, or federal official that the activities of the Developer or the Authority on
the Property may be or will be in violation of any environmental law or regulation
(other than those notices or communications of which the Authority is aware). The
Developer is aware of no facts the existence of which would cause it to be in
violation of or give any person a valid claim under any local, State, or federal
environmental law, regulation, or review procedure a, to the Property, or any other
project within the City.
(c) Neither the execution and delivery of this Agreement, the
consummation of the transactions contemplated hereby, nor the fulfillment of or
compliance with the terms and conditions of this Agreement is prevented, limited
by, or conflicts with or results in a breach of the terms, conditions, or provisions of
any corporate or partnership restriction or any evidences of indebtedness,agreement,
or instrument of whatever nature to which the Developer is now a parry or by which
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it is bound,or constitutes a default under any of the foregoing.
(d) The Developer will construct, operate and maintain the Minimum
Improvements in accordance with the terms of this Agreement and all local, state
and federal laws and regulations (including, but not limited to, environmental,
zoning,building code and public health laws and regulations).
7.3. The representations and warranties set forth in this section shall be continuing
and shall be true and correct as of the Date of Closing with the same force and effect as if
made at that time. All such representations and warranties shall survive closing and shall
not be merged in the delivery and execution of the deed or other instruments of conveyance
called for in this Agreement.
7.4. Except for the representations and warranties of Authority expressly made
herein, Developer is buying the Property on an "as is," "where is," and "with all faults"
basis,based upon its own investigation and judgment.
7.5. Prior to commencement of construction of the Minimum Improvements, the
Developer agrees to furnish to the Authority a performance bond,certified check, certificate
of deposit, irrevocable letter of credit, or cash escrow in the amount of 150% of the cost of
the Property (the "Financial Guarantee"). The cost for the Property is $49,500.00. Upon a
breach by the Developer of this Agreement, and in addition to and notwithstanding any
other remedy the Authority has under this Agreement or otherwise, the Authority may
declare the Developer to be in default under this Agreement and, upon failure of the
Developer to cure the default within 30 days of written notice, may demand the Financial
Guarantee be paid over to the Authority. From the proceeds of the Financial Guarantee, the
Authority shall be reimbursed for any attorneys' fees, engineering fees or other technical,
administrative or professional assistance, and the remainder thereof shall be used by the
Authority to complete the Minimum Improvements. The Developer shall be liable to the
Authority in the event and to the extent that the Financial Guarantee is inadequate to
reimburse the Authority for its costs and pay for the completion of the Minimum
Improvements.
8.0. Review of Documents. Concurrently with execution of this Agreement or within ten
days following the date hereof, and to the extent such documents are available to Authority,
Authority shall deliver to Developer the following documents: existing (i) reports (whether
in draft or final form) of any environmental inspections, audits or examinations of the
Property; (u)reports of all engineering tests,inspections and studies of the Property and(iii)
reports of soil tests of the Property; all as Authority may have or be able to obtain copies of
without unreasonable expense (all such records, plans, permits and reports being hereafter
referred to as the "Existing Tests").
9.0. Conditions to Closing. The closing of the transaction contemplated by this Agreement
and the obligation of the Authority to sell the Property and of the Developer to purchase the same
shall be subject to the following conditions:
9.1. Authority Responsibilities:
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(a) Provide an updated abstract or title commitment, at the cost of
Developer,for the Property;
(b) Provide confirmation that sewer and water service is available to the
Property.
9.2. Developer's Responsibilities:
(a) Title: Developer may review and approve preliminary title reports and
surveys in accordance with this Agreement;
(b) Developer shall indemnify Authority against any liability, cost or
expense incurred by Authority as a result of Developer's actions, including but not
limited to fines,court costs,reasonable attorneys'fees and remedial costs. Authority
shall provide Developer and Developers agents and representatives access to the
Property, at reasonable times and in a reasonable manner, for purposes of
completing such Investigation/Due Diligence Period requirements. Authority shall
cooperate with the Developer's investigation of the Property, including Developer's
ability to interview, at reasonable times and in a reasonable manner, Authority or
any of Authority's employees or to take samples of any soil, ground water or other
materials provided the same does not unreasonably interfere with Authority's
operations.
(c) Developer must provide adequate evidence of financing for the purchase
and construction of the Minimum Improvements on the Property.
9.3. With respect to the above-described conditions, Developer shall give notice of
its desire to terminate this Agreement for failure to fulfill any of said conditions on or before
the Dare of Closing or such earlier date as may be specified above. In the event no notice of
termination is given within the specified time period with respect to any such section hereof,
such condition shall be deemed to be waived by Developer and Developer shall proceed to
closing in accordance with the other terms and conditions hereof. If this Agreement is
terminated clue to the failure of the conditions set forth in Sections 9.1, the Earnest Money
shall be promptly returned to Developer in exchange for a quit claim deed for the Property
and neither party shall have further rights and obligations hereunder. If this Agreement is
terminated due to the failure of the conditions set forth in Section 9.2, the Earnest Money
shall be retained by the Authority and the Developer shall execute a quit claim deed for the
Property.
10.0. Closing. The closing shall take place on June 23, 1999 (the "Date of Closing") or on
such earlier date as Authority and Developer may mutually agree in writing. The closing shall take
place at the office of Land Title Inc. or such other place as the Authority and Developer may
reasonably determine. Possession of the Property shall be delivered on the Date of Closing.
11.0. Authority's Obligations at Closing. On or prior to the Date of Closing, Authority
shall:
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11.1. Execute, acknowledge and deliver to the Developer a warranty deed, with a
right of reverter, to the Property conveying to the Developer marketable fee simple title to
the Property, subject to the limitations contained in Sections 4.0 and 5.2 hereof, and all
rights appurtenant thereto subject only to the encumbrances approved by Developer in
accordance with Section 5.2.
11.2. Deliver to Developer an affidavit of the Authority in recordable form
identifying the Authority as the owner of the Property free and clear of all encumbrances
except the encumbrances approved by Developer in accordance with Section 5.3, that all
work, labor, services and materials furnished to or in connection with the Property have
been fully paid for so that no mechanic's, materialmen's,or similar lien may be filed against
the Property.
11.3. In the event the warranty deed described in Secuon 11.1 does not contain the
statement "The Seller certifies that the Seller does not know of any wells on the described
real property", Authority shall execute and deliver to Developer a Well Disclosure
Certificate as required in Minnesota Statutes, Section 1031.235 indicating that all wells have
been properly abandoned and sealed by a licensed well contractor, all as required by the
rules and regulations issued to Minnesota Statutes, Section 1031.501(0{2).
11.4. Execute and deliver to Developer a Designation Agreement relating to the
Property which designates the "reporting person" for purposes of completing internal
Revenue Form 1099S.
113. Deliver to Developer such other documents as may be required by this
Agreement or applicable law.
11.6. Deliver to Developer evidence of Authority's authorization to complete this
transaction.
11.7. Execute and deliver to Developer a closing statement consistent with this
Agreement.
12.0. Developer's Obligations at Closing. At closing, and subject to the terms, condiuons,
and provisions hereof and the performance by Authority of its obligations as set forth above, the
Developer shall:
12.1. Deliver to Authority any portion of the Purchase Price then due and payable
by Developer's certified or cashier's check or equivalent.
12.2. Execute,and/or deliver to Authority such other documents as may be required
by this Agreement or applicable law.
12.3. Deliver to Authority evidence of Developer's authorization to complete this
transaction. Developer hereby represents and warrants to Authority that the execution and
performance of this Agreement by Developer has been duly authorized by all necessary
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action.
12.4. Execute and deliver to Authority a closing statement consistent with this
Agreement.
13.0. Closing Costs. The following costs and expenses shall be paid as follows
in connection with the closing:
13.1. Developer shall pay the following costs in connection with the closing
(a) All abstracting expenses, the cost of issuing the title commitment
and the cost of copies of all additional title documents necessary for the examination
of title.
(b) The title insurance premium charged by the Title Insurer.
(c) The cost of preparation of the warranty deed and other documents of
conveyance.
(d) Any filing fee to record the warranty deed and related documents.
(e) Stare Deed Tax upon delivery of the warranty deed to the Developer.
(f) Authority's attorneys'fees,
(g) Developer's attorneys'fees.
14.0. Prorations. The following prorations shall be made as of the Date of Closing and
subsequent to the Date of Closing to the extent actual information is unavailable on the Date of
Closing:
14.1. All utilities furnished to the Property.
14.2. Real estate taxes and special assessments as hereinafter provided.
15.0. Taxes and Special Assessments. Authority shall pay the real estate taxes and special
assessments relating to the Property which are due and payable in all years prior to the year of
closing, and any and all deferred real estate taxes and all levied and pending special assessments at
the closing of the sale . Real estate taxes payable in the year of closing shall be prorated to the Date
of Closing. The parties agree and understand that, as of the date of this Agreement, there are no
outstanding deferred real estate taxes or levied or pending special assessments. The parties also
agree and understand that, as of the date of this Agreement,notice has been provided by the City as
to possible future special assessments affecting the Property and that Developer shall pay for any
such future assessments.
16.0. Brokerage. Developer and Authority each represent and warrant to the other that they
have nor engaged the services of any broker in connection with the purchase contemplated by this
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Agreement. Each party hereby agrees to indemnify and hold the other harmless of any claim made
by a broker or sales agent or similar party for a commission due or alleged to be due on this
transaction.
17.0 Default. The following default provisions govern this Agreement.
17.1. Events of Default Defined. The following shall be "Events of Default" under
this Agreement and the term "Event of Default" shall mean, whenever it is used in this
Agreement (unless the context otherwise provides), any failure by any parry to observe or
perform any other covenant,condition,obligation or agreement on its part to be observed or
performed hereunder, but only If such failure has not been cured within thirty days after
receipt by the defaulting party of written notice of such failure or, if the failure is by its
nature incurable within thirty days, the defaulting party does not provide assurances
reasonably satisfactory to the non-defaulting party within such thirty-day period that the
failure will be cured and will be cured as soon as reasonably possible. Subject to the
foregoing notice and cure periods,nothing in this Section shall limit the Authority's right to
exercise any remedy to which it is entitled under any other provision of this Agreement.
17.2. Remedies on Default. Whenever any Event of Default referred to in
Paragraph 17.1 of this Agreement occurs,the non-defaulting party may:
(a) Suspend its performance under this Agreement until it receives
assurances that the defaulting party will cure its default and continue its
performance under this Agreement.
(b) Cancel and rescind or terminate this Agreement. In the event that
Authority should fail to consummate the transaction contemplated by this
Agreement for any reason except for Developer's default or the failure of Developer
to satisfy any conditions to Authority's obligation hereunder, and Developer elects to
cancel and terminate this Agreement in the manner provided by applicable law and
be relieved of its obligations hereunder, Developer shall be immediately entitled to
the return of the Earnest Money heretofore paid in exchange for a quit claim deed
for the Property. In the event that Developer shall fail to consummate the
transaction contemplated herein for any reason, except the default by Authority or
the failure of Authority to satisfy any of the conditions to the Developer's
obligations set forth herein, and the Authority elects to cancel and terminate this
Agreement in the manner provided by applicable law and be relieved of its
obligations hereunder,the Authority shall be entitled to retain the Earnest Money as
liquidated damages.
(c) in the case of an Event of Default by the Developer, the Authority
may demand reimbursement by the Developer to the Authority in the amount of any
costs paid by the Authority pursuant to this Agreement.
(d) Take whatever action, including legal, equitable, or administrative
action, which may appear necessary or desirable to collect any payments due under
this Agreement, or to enforce performance and observance of any obligation,
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agreement, or covenant under this Agreement.
(e) Enforce the specific performance of this Agreement, which action
must be commenced within one (1) year of the date of failure of a parry to
consummate the transactions contemplated herein.
17.3. Revesting Title in Authority upon Happening of Event Subsequent to
Conveyance to Developer. in the event that, subsequent to conveyance of the Property to
the Developer and prior to the issuance of the Certificate of Completion:
(a) subject to Unavoidable Delays, the Developer fails to carry out its
obligations with respect to the construction of the Minimum improvements
(including the nature and the date for the completion thereof), or abandons or
substantially suspends construction work, and any such failure, abandonment, or
suspension shall not be cured, ended, or remedied within thirty (30) days after
written demand from the Authority to the Developer to do so; or
(b) subject to Unavoidable Delays the Developer fails to cure any
default under this Agreement within 30 days after receipt of notice of Event of
Default.
Then the Authority shall have the right to re-enter and take possession of the
Property and to terminate and revest in the Authority the estate conveyed pursuant to
the Deed to the Developer, it being the intent of this provision, together with other
provisions of the Agreement, that the conveyance of the Property to the Developer
shall be made upon, and that any instrument conveying title from the Authority to
the Developer of the Property shall contain a condiuon subsequent to the effect that
in the event of any default on the part of the Developer and failure on the part of the
Developer to remedy, end, or abrogate such default within the period and in the
manner stated in such subdivisions, the Authority at its option may declare a
termination in favor of the Authority of the title, and of all the rights and interests in
and to the Property conveyed to the Developer, and that such title and all rights and
interests of the Developer, and any assigns or successors in interest to and in the
Property, shall revert to the Authority.
17.4. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting
in the Authority of title to and/or possession of the Property as provided in Section 17.3, the
Authority shall, pursuant to its responsibilities under law, use its best efforts to sell the
Property or part thereof as soon and in such manner as the Authority shall find feasible and
consistent with the objectives of such law and of the Authority to a qualified and
responsible party or parties(as determined by the Authority)who will assume the obligation
of making or completing the Minimum Improvements or such other improvements in their
stead as shall be satisfactory to the Authority and in accordance with the uses specified for
the Property. Upon such resale of the Property,the proceeds thereof shall be applied:
(a) First, to reimburse the Authority for ail costs and expenses incurred
by the Authority, including but not limited to salaries of personnel, in connection
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with the recapture, management, and resale of the Property or part thereof(but less
any income derived by the Authority from the property or part thereof in connection
with such management); all taxes, assessments, and water and sewer charges with
respect to the Property (or, in the event the Property is exempt from taxation or
assessment or such charge during the period of ownership thereof by the Authority,
an amount, if paid, equal to such taxes, assessments, or charges (as deterrmned by
the Authority assessing official) as would have been payable if the Property were
not so exempt); any payments made or necessary to be made to discharge any
encumbrances or liens existing on the Property or part thereof at the time of
revesting of title thereto in the Authority or to discharge or prevent from attaching or
being made any subsequent encumbrances or liens due to obligations, defaults or
acts of the Developer, its successors or transferees; any expenditures made or
obligations incurred with respect to the making or completion of the Minimum
Improvements or any part thereof on the Property; financial assistance made by the
Authority to the Developer (less any portion thereof previously repaid by the
Developer); and any amounts otherwise owing the Authority by the Developer and
its successor or transferee; and
(b) Any balance remaining after such reimbursements shall be returned
to the Developer.
17.5. No Remedy Exclusive. No remedy herein conferred upon or reserved to any
party in this Agreement is intended to be exclusive of any other available remedy or
remedies, but each and every such remedy shall be cumulative and shall be in addition to
every other remedy given under this Agreement or now or hereafter existing at k.tw or in
equity or by statute. No delay or omission to exercise any right or power accruing upon any
default shall impair any such right or power or shall be construed to be a waiver thereof,but
any such right and power may be exercised from time to time and as often as may be
deemed expedient. In order to entitle the Authority to exercise any remedy reserved to it, it
shall not be necessary to give notice, other than such notice as may be required in this
Section.
17.6. No Additional Waiver Implied by One Waiver. In the event any provision or
agreement contained in this Agreement should be breached by any party and thereafter
waived by another party, such waiver shall be limited to the particular breach so waived and
shall not be deemed to waive any other concurrent, previous or subsequent breach
hereunder.
18.0. Access to property and Inspection. Any time and from time to time prior to the Date
of Closing,Developer,and person or persons selected by Developer shall be permitted access to the
Property for the purpose of conducting such studies and investigations of the Property as Developer
deems appropriate, which studies and investigations shall be conducted at Developer's sole expense
and pursuant to any other terms and conditions of this Agreement. Developer agrees to indemnify
Authority against any liability, cost or expense incurred by Authority as a result of Developers
actions,including but not limited to fines,court costs,reasonable attorneys'fees and remedial costs.
Such studies may include without limitation, physically Inspecting the Property and reviewing
Authority's records concerning the Property which records shall be made reasonably available to
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Developer,
19,0. Miscellaneous. The following general provisions govern this Agreement.
19.1. Time is of the Essence. The Date of Closing is of the absolute essence. In the
event this transaction does not close on the Date of Closing because the Authority is unable
to perform as required by this Agreement, the Agreement shall be null and void and all
Earnest Money shall be immediately refunded to Developer. In the event this transaction
does not close on the Date of Closing because the Developer is unable to perform as
required by this Agreement, this Agreement shall be null and void and all Earnest Money
shall be delivered to the Authority as liquidated damages.
19.2. Governing Law. This Agreement is made and executed under and in all
respects is to be governed and construed under the laws of the State of Minnesota.
19.3. Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice,demand,or other communication under this Agreement by either party
to the other shall be sufficiently given or delivered if it is dispatched by registered or
certified mail, postage prepaid, return receipt requested, or delivered personally to the
parties as follows:
Authority: The Mounds View Economic Development
2401 Highway 10
Mounds View,MN 55112-1499
Developer: Marquis Builders,Inc.
1211 old Highways NW
New Brighton,MN 55112
or at such other address with respect to either such party as that party may, from time to
time,designate in writing and forward to the other as provided in this Section.
19.4. Construction. The captions and headings of the various sections of this
Agreement are for convenience only and are nor to be construed as defining or as limiting in
any way the scope or intent of the provisions hereof. Wherever the context requires or
permits, the singular shall include the plural, the plural shall include singular, and the,
masculine,feminine and neuter shall be freely interchangeable.
19 5. Assignability. This Agreement and the rights set out herein may be assigned
by Developer upon notice to Authority,provided, however, any assignment shall not release
Developer from any liability under this Agreement.
19.6. Entire Agreement. This Agreement sets forth the entire understanding of the
parties and may be amended, modified or terminated only by an instrument signed by the
parties.
19.7. Counterparts. For the convenience of the parties, any number of counterparts
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hereof may be executed and each such executed counterpart shall be deemed an original,but
all such counterparts together shall constitute one in the same Agreement.
19.8. Binding Effect. This Agreement (including without limitation, the
representations and warranties set forth in Section 7 hereof) shall inure to the benefit of and
bind the respective heirs, executors, administrators and assigns of Developer and Authority,
including without limitation any successor in interest to either Developer or Authority with
respect to this Agreement or the Property or both.
19.9. Conflict of Interests: Authority Representatives Not Individually Liable. The
Authority and the Developer, to the best of their respective knowledge, represent and agree
that no member, official, or employee of the Authority shall have any personal interest,
direct or indirect, in this Agreement, nor shall any such member, official, or employee
participate in any decision relating to this Agreement which affects his or her personal
interests or the interests of any corporation,partnership, or association in which he or she is
directly or indirectly interested. No member, official, or employee of the Authority shall be
personally liable to the Developer,or any successor in interest, in the event of any default or
breach by the Authority, or for any amount which may become due to the Developer or
successor or on any obligations under the terms of this Agreement.
19.10. Equal Employment Opportunity. The Developer,for itself and its successors
and assigns,agrees that during the construction of the Minimum Improvements provided for
in this Agreement it will comply with all applicable federal, State, and local equal
employment and non-discrimination laws and regulations.
19.11. Restrictions on Use. The Developer agrees that prior to the Termination
Date,the Developer,and its successors and assigns: (a) shall not discriminate upon the basis
of race,color,creed, sex, national origin,or any other classification prohibited by law in the
sale, lease,rental, or use or occupancy of the Property or any improvements erected or to be
erected thereon, or any part thereof; and (b) shall otherwise comply with the restrictions on
use set forth in this Agreement.
19.12. Provisions Not Merged With Deeds. None of the provisions of this
Agreement are intended to or shall be merged by reason of any deed transferring any interest
in the Property and any such deed shall not be deemed to affect or impair the provisions and
covenants of this Agreement.
19.13. Recording. The Authority may record this Agreement and any amendments
thereto with the Ramsey County recorder. The Developer shall pay all costs for recording.
19.14. Attorney Fees. Whenever any Event of Default occurs and if the Authority
shall employ attorneys or incur other expenses for the collection of payments due or to
become due, or for the enforcement of performance or observance of any obligation or
agreement on the part of the Developer under this Agreement, the Developer agrees that it
shall, within ten days of written demand by the Authority, pay to the Authority the
reasonable fees of such attorneys and such other expenses so incurred by the Authority.
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19.15 Housin Desi and Site Criteria. The Housing Design and Site Criteria
information attached hereto as Exhibit C, is incorporated herein by reference and made a
part of this Agreement as if set forth fully herein. The Housing Design and Site Criteria
general policy and requirements are binding upon the Developer and shall be obligations
upon the Developer unless inconsistent with the provisions of this Agreement.
20.0 Construction of Minimum Improvements.
20.1. Construction of Minimum Improvements. (a) The Developer agrees that it
will construct the Minimum Improvements on the Property in accordance with the approved
Construction Plans, and at all times prior to the Termination Date will operate and maintain,
preserve, and keep the Minimum Improvements, or cause the Minimum Improvements to
be maintained, preserved, and kept, with the appurtenances and every part and parcel
thereof, in good repair and condition. The Authority shall not have any obligation to
operate or maintain the Minimum Improvements.
(h) The Developer will construct the Minimum Improvements in accordance
with all local, State, and federal energy-conservation laws or regulations.
(c) The Developer will obtain, in a timely manner, all required permits, licenses,
and approvals, and will meet, in a timely manner, all requirements of all applicable local,
State, and federal laws and regulations which must be obtained or met before the Minimum
Improvements may be lawfully constructed, including, without limitation, the requirements
of any necessary special use permits.
(d) The Developer shall promptly advise the Authority in writing of all litigation
or claims affecting any part of the Minimum improvements and all written complaints and
charges made by any governmental authority materially affecting the Minimum
Improvements or materially affecting Developer or its business which may delay or require
changes in construction of the Minimum improvements.
(e) The Developer agrees that the Minimum Market Value for the Property with
the Minimum Improvements shall be at least$184,500.00. The parties agree that this value
for the Minimum Improvements shall be established by the assessed value of the Property
as of the Termination Date as defined in the Agreement. The Minimum Market Value
herein established shall be of no further force and effect and shall end on the Termination
Date as defined in the Agreement.
20.2. Construction Plans. (a) Before beginning construction of the Minimum
Improvements, the Developer shall submit to the Authority Construction Plans. The
Construction Plans shall provide for the construction of the Minimum Improvements, as
applicable, and shall be in conformity with this Agreement and all applicable State and local
laws and regulations. The Authority will approve the Construction Plans in writing if: (i)
the Construction Plans conform to the terms and conditions of this Agreement; (ii) the
Construction Plans conform to all applicable federal, State and local laws, ordinances, rules
and regulations; (iii) the Construction Plans are adequate to provide for construction of the
Minimum Improvements; and (iv) no Event of Default has occurred. Approval may be
t)JG-162543 15
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based upon a review by the City's building official of the Construction Plans. No approval
by the Authority or City shall relieve the Developer of the obligation to comply with the
terms of this Agreement, applicable federal, State and local laws, ordinances, rules and
regulations, or to construct the Minimum Improvements in accordance therewith. No
approval by the Authority shall constitute a waiver of an Event of Default. If approval of
the Construction Plans is requested by the Developer in writing at the time of submission,
such Construction Plans shall be deemed approved unless rejected in writing by the
Authority, in whole or in part. Such rejections shall set forth in detail the reasons therefore,
and shall be made within 30 days after the date of their receipt by the Authority. If the
Authority rejects any Construction Plans in whole or in part, the Developer shall submit
new or corrected Construction Plans within 30 days after written notification to the
Developer of the rejection. The provisions of this Section 20.2 relating to approval,
rejection and resubmission of corrected Construction Plans shall continue to apply until the
Construction Plans have been approved by the Authority. The Authority's approval shall
not be unreasonably withheld. Said approval shall constitute a conclusive determination
that the Construction Plaits (and the Minimum Improvements constructed in accordance
with said plans)comply to the Authority's satisfaction with the provisions of this Agreement
relating thereto.
(b) If the Developer desires to make any Material change in the Construction
Plans after their approval by the Authority, the Developer shall submit the proposed change
to the Authority for its approval, If the Construction Plans, as modified by the proposed
change, conform to the requirements of this Section 20.2 of this Agreement with respect to
such previously approved Construction Plans, the Authority shall approve the proposed
change and notify the Developer in writing of its approval. Such change in the Construction
Plans shall, in any event, be deemed approved by the Authority unless rejected, in whole or
in part, by written notice by the Authority to the Developer, setting forth in detail the
reasons therefor. Such rejection shall be made within ten (10) days after receipt of the
notice of such change. The Authority's approval of any such change in the Construction
Plans will not be unreasonably withheld.
(c) The terms of this Section 20.2 shall apply only to the Construction Plans as
herein defined. Any site plan approval, variances, and any other City permit or approval
required for construction of the Minimum Improvements shall be applied for and processed
in accordance with normal City procedures.
20.3. Commencement and Completion of Construction. Subject to Unavoidable
Delays, the Developer shall commence construction of the Minimum Improvements within
60 days after the date of this Agreement. Subject to Unavoidable Delays, the Developer
shall substantially complete the construction of the Minimum Improvements by
December 7, 1999, All work with respect to the Minimum Improvements to be constructed
or provided by the Developer on the Property shall be in conformity with the Construction
Plans as submitted by the Developer and approved by the Authority.
The Developer agrees for itself, its successors and assigns, and every successor in
interest to the Property, or any part thereof, that the Developer, and such successors and
assigns, shall promptly begin and diligently prosecute to completion the development of the
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Property through the construction of the Mitumum Improvements thereon, and that such
construction shall in any event be commenced and completed within the period specified in
this Section 20.3 of this Agreement. Subsequent to the Developer's acquisition of title to
the Property, or any part thereof, and until construction of the Minimum Improvements has
been completed, the Developer shall make reports, in such detail and at such times as may
reasonably be requested by the Authority, as to the actual progress of the Developer with
respect to such construction.
20.4. Certificate of Completion. (a) Promptly after substantial completion of the
Minimum Improvements in accordance with those provisions of this Agreement relating
solely to the obligations of the Developer to construct the Minimum Improvements
(including the dates for beginning and completion thereof), the Authority will furnish the
Developer with a Certificate of Completion substantially in the form shown at Exhibit 13.
Such certification by the Authority shall be a conclusive determination of satisfaction and
termination of the agreements and covenants in this Agreement with respect to the
obligations of the Developer, and its successors and assigns, to construct the Minimum
Improvements, as applicable,and the dates for the beginning and completion thereof. Such
certification and such determination shall not constitute evidence of compliance with or
satisfaction of any obligation of the Developer to any Holder of a Mortgage, or any insurer
of a Mortgage, securing money loaned to finance the Minimum Improvements, or any part
thereof.
(b) If the Authority shall refuse or fail to provide any certification in accordance
with the provisions of this Section 20.4 of this Agreement, the Authority shall, within thirty
(30) days after written request by the Developer, provide the Developer with a written
statement, indicating in adequate detail in what respects the Developer has failed to
complete the Minimum Improvements in accordance with the provisions of this Agreement,
or is otherwise in default, and what measures or acts it will be necessary, in the opinion of
the Authority, for the Developer to take or perform in order to obtain such certification.
(c) The construction of the Minimum Improvements shall be deemed to be
substantially completed when the Minimum Improvements have been approved for use by
the responsible inspecting authority.
20.5. Reconstruction of Minimum Improvements. If the Minimum Improvements
are damaged or destroyed before the Termination Date, the Developer agrees, for itself and
its successors and assigns,to reconstruct the Minimum Improvements so that the Minimum
Improvements and the Property have a value equal to the Minimum Market Value as set
forth in and required by Section 20.1(e) of this Agreement_ The Minimum Improvements
shall be reconstructed in accordance with the Construction Plans, or with modifications
approved by the Authority in accordance with Section 20.2 of this Agreement.
20.6. Property Taxes; Special Assessments. After closing on the Property, the
Developer shall pay all real estate taxes and special assessments on the Minimum
Improvements and the Property as they become due. The Developer shall not cause the
Property to be removed from the public tax rolls or to become exempt from assessment for
general real estate taxes by reason of any conveyance,lease,abatement,or other action prior
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to the Termination Date.
20.7. Survival of Ageement. The terms of this Section 20 shall survive closing.
The parties hereto have executed this Agreement as of the day and year set forth below.
DEVELOPER: MARQUIS BUILDERS, RNC.
Dared: . By:
Its:
Dated: By.
Its:
AUTHORITY: THE MOUNDS VIEW ECONOMIC
DEVELOPMENT AUTHORITY
Dated: By:
Its: President
Dared: . By:
its: Executive Director
This document was drafted by:
KENNEDY&GRAVEN,CHARTERED(SiR)
470 Pillsbury Center
200 South Sixth Street
Minneapolis,MN 55402
(612) 337-9300
DK-162543 18
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EXHIBIT A
Legal Description of Property
Lot 70, Knollwood Park,Mounds View, Minnesota, according to the plat filed with
the Ramsey County Recorder.
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EXHIBIT B
to
PURCHASE AND REDEVELOPMENT AGREEMENT
FORM OF CERTIFICATE OF COMPLETION
The undersigned certifies that,except as may be specified below,Marquis Builders, Inc. has
fully and completely complied with its obligations under Paragraph 20 of that document entitled
"Purchase and Redevelopment Agreement", dated , between the Mounds View
Economic Development Authority and Marquis Builders, Inc. with respect to construction of the
Minimum Improvements on the Property legally described therein, in accordance with the approved
Construction Plans and is released and forever discharged from its obligations to construct under
such above-referenced Paragraph.
Dated: MOUNDS VIEW ECONOMIC
DEVELOPMENT AUTHORITY
By
Its President
By
Its: Executive Director
STATE OF MINNESOTA )
ss
COUNTY OF RAMSEY )
The foregoing instrument was acknowledged before me this day of
199 , by and , the President and Executive
Director respectively, of The Mounds View Economic Development Authority, a public body
corporate and politic, under the laws of the State of Minnesota on behalf of the public body
corporate and politic.
Notary Public
This document drafted by:
KENNEDY& GRAVEN, CHARTERED(SIR)
470 Pillsbury Center
Minneapolis,MN 55402
(612)337-9300
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EXHIBIT C
to
PURCHASE AND REDEVELOPMENT AGREEMENT
HOUSING DEVELOPMENT AND SITE CRITERIA
[Insert Housing Development and Site Criteria}
The Mounds View Economic Development Authority(EDA)established the Housing Replacement
Program to reduce the social costs of blight and increase the tax base. The purpose of the program
is to replace deteriorating lower value housing on scattered sites throughout the City with larger,
higher value housing designed for families. To accomplish this goal,the EDA purchases
substandard homes,demolishes the home and sells the lot to a prospective buyer for redevelopment.
This will assist in eliminating the blighting influence of substandard housing and increasing the
availability of quality housing for families.
1. General
a. The developer must be a licensed contractor. All sub-contractors must also be
licensed.
b. The developer must enter into a Contract for Private Development with the EDA,
which will specify design,set site criteria and establish value based upon new home
construction in the surrounding area.
c. Home design must comply with all federal,state and local building codes.
d. The house must be able to be built within six (6) months from the time the Contract
for Private Development is executed. An extension may be granted with the
permission of the EDA.
e. Each home must be single-family owner occupied.
2. Building Standards
a. All building plans must have been prepared in consultation with an Architect or
Architectural Designer with a minimum two-year technical degree. Housing design
is a critical concern.
b. A minimum of three bedrooms is required.
c. A minimum of two full baths is required.
d. A three car attached garage is required.
e. Exterior materials (siding, doors and windows) should be low maintenance.
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Aluminum and vinyl are preferred. Natural cedar lap is acceptable if properly
stained or painted. Hardboard panels or hardboard lap siding are not acceptable.
f. Unit height and macs of the new homes shall be compatible with the scale of the
surrounding neighborhood.
g. Plans must present a balanced distribution of wall and window areas from all views.
h. A full basement shall be provided in the house unless the selected design results in a
split level, garden level type of basement.
3. Site Standards
a. The entire grounds shall be landscaped to be aesthetically pleasing in all seasons.
Land forms and plant materials shall be used to define the site and blend with
adjoining properties. The landscape plan must be reviewed by City staff.
b. Existing trees shall be preserved when possible. Care should be taken to preserve
existing root systems. Construction fencing around the root system must be
provided on Trees directly adjacent to active grading and construction areas. City
staff can assist in recommending methods of protecting existing trees and shrubs.
c. Site drainage shall be accommodated on the site so that water is directed away from
the new home and the neighboring properties. The developer must comply with any
federal, state or Ioc:al drainage requirements. Construction and the finished
structure must not have a detrimental impact on storm water drainage patterns in the
neighborhood.
d. All air conditioning units must be located in the rear yard of the house.
e. Utility meters shall be screen from street view,locations must be specified on plans.
f. The neighboring property and adjacent public streets shall be kept free of
construction debris at all times. The construction sire shall be managed so not to
become a nuisance. Under no circumstance during the construction period shall
construction workers, construction equipment or construction materials enter,
disturb or damage neighboring properties.
4. Builder Requirements
a. Demonstrate financial capability by providing:
I) A statement from a financial institute of sufficient construction capital;
2) A letter of credit of the value of the lot;
3) A summary of the financial conditions of the company; and
4) Evidence of a construction loan or ability to secure one.
b. Possess adequate Builder's Risk,Comprehensive General Liability and Worker's
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Compensation insurance coverage.
c. Possess a Home Owners Warranty insurance or equivalent to perform warranted
repairs required by Minnesota State Statute.
d. Provide references from:
1) Five customers;
2) Three major suppliers,one being the construction lumber supplier;
3) Building inspectors from two cities in which the builder has constructed new
housing with the past three years.
e. Provide information on inventory of homes that builder currently has under
construction.
5. Buyer Requirements if applicable
a Must be pre-approved for permanent financing prior to allow signing of Contract for
Private Development.
C-3
Item No. \g
Meeting Date: 5-26-99
Staff Report No.
Type of Business: EDAB
WK•Work Session;PH:Public Hearing;
CA:Consent Agenda;EDAB:EDA Business
Mounds View Economic Development Authority
Staff Report
To: Mounds View Economic Development Authority
From: Steve Dorgan, Housing Inspector
Item Title/Subject: Proposal for Participation in the Housing Replacement
Program 2225 Hillview Road
Date of Report: May 20, 1999
SUMMARY
Staff has recently received a letter from Jean Johnson, owners of 2225 Hillviw Road, offering her property
for sale to the Economic Development Authority(Exhibit A). The property is located just west of Quincy
Street(see location map Exhibit B). The proposed property is currently occupied by the owner. Staff has
completed an inspection of the proposed property to verify the eligibility as outlined in the Housing
Replacement Program(HRP)policy. Item G of the HRP policy states:
G. Property Eligibility Criteria
Program Staff shall evaluate each property for which an application is received to determine
its eligibility for the Program based on the criteria in this section. Program Staff shall prepare
property fact sheets for each property for which owners have expressed an interest in
participating in the Program, and shall make a drive by inspection. Properties will be
evaluated based on the following criteria outlined below. To be eligible for participation, the
house on the property must have at least one of the characteristics noted in 1, 2, 3 or 4
below.
*1. Substandard as to condition, size or usage.
*2. Obsolete and having a faulty design for block and area in which it is located.
*3. Deterioration which has caused blight to other adjoining properties.
4. Detrimental to the safety or health of abutting properties in the block.
Staff has determined that the subject property meets the characteristics as noted in item 1,2, and 3.
Because the property meets at least 2 of the 4 outlined criteria, it must also meet item numbers 5-8 in
Section G of the policy to be considered for purchase by the EDA. These items are as follows:
*5. A geographic mix of properties is achieved.
*6. The site can be developed with a single family home within city code
requirements, including zoning and conformance with the Comprehensive
Plan. The property may be considered if a variance can be obtained(see
Section I, Item 2.).
*7. The property must be owner-occupied or vacant before the owner makes
application to the Program. Non-homesteaded vacant property will be
considered for acquisition. Tenant-occupied properties will be considered by
the EDA on a case-by-case basis.
8. Prior to approval by the EDA for participation in the Program, properties over 50 years
old must be evaluated for historical significance. This will be accomplished by
forwarding general property information and a property photo to the Minnesota
Historical Society for review. The EDA will not enter into a purchase agreement or
award funding for demolition on a property which qualifies for the National Registry of
Historical Structures.
Staff has determined that the subject property meets the characteristics as noted in items 1 and 2. Because the
property meets at least 1 of the 4 outlined criteria;it must also meet item numbers 5-8 of the policy to be considered
for purchase by the EDA. As noted,the proposed property meets the criteria in item numbers 5, 6 and 7 . The city
has not yet proceeded with the requirements of item number 8, which requires a historical significance evaluation.
This will be completed if the EDA requests staff to proceed with acquiring the property.
DISCUSSION
Due to the size of the lot and the surrounding neighborhood, the subject lot may be a candidate for acquisition with
CDBG funds recently approved for the HRP program from Ramsey County. These funds will become available
July 1, 1999.
ACTION TO BE CONSIDERED
1) Approve the request for participation in the Housing Replacement Program for the property located at 2225
Hillview Road and direct staff to prepare a resolution authorizing funding(either through TIF or CDBG)for the
demolition of the single family home for redevelopment purposes.
2) Deny the request for participation in the Housing Replacement Program, which would authorize funding for
demolition of the existing home and direct staff to draft a resolution rejecting the request.
s-------t
Steve Dorgan,Hosinginspector
612/717-4023
email steved@rcmnet.org
Attachments: 1) Location Map—2225 Hillview Road
2) Letter of Request—Jean Johnson
[111
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