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HomeMy WebLinkAbout12-15-1997 EDA • CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MONDAY,DECEMBER 15, 1997 Meeting No. 48 AGENDA ROLL CALL: President McCarty, Vice President Koopmeiners, Commissioner Gunn, Commissioner Quick, Commissioner Stigney A. AGENDA ADDITIONS: B. APPROVAL OF MINUTES None C. SPECIAL ORDER OF BUSINESS: None D. CONSENT AGENDA No items on consent agenda. E. COUNCIL BUSINESS • 1. Consideration of Resolution No. 97-EDA78 Approving and Authorizing the Acquisition of 8005 Groveland Road for Redevelopment Purposes and The Execution of a Purchase Agreement for that Purchase. F. REPORTS G. ADJOURNMENT • Item No. Meeting Date 12-15-97 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 City Council From: Cathy Bennett, Director of Economic Development Item Title/Subject: Consideration of Resolution No. 97-EDA78 Approving and Authorizing the Acquisition of 8005 Groveland Road for Redevelopment Purposes and the Execution of a Purchase Agreement for That Purchase Date of Report: December 11, 1997 Per EDA direction, I proceeded with the negotiations for the purchase of 8005 Groveland Road for redevelopment purposes. An appraisal was ordered by the EDA and set the value at $85,000. The owners did their own appraisal that set value at $90,000. The owners have agreed to sell the property to the EDA for $85,000 based on the following conditions. • • Closing would not occur until May 1, 1998. ► Owner will be able to sell outbuildings on the lot and remove the home if possible at no cost to the EDA. This will reduce our costs for demolition and will make up for the difference to the owners for accepting the lower appraised value. ► The EDA will perform an Environmental Assessment of the site prior to closing. If it is revealed that there is any cleanup necessary the parties are able to renegotiate the purchase without penalty. • The owners will be required to have any wells on the property sealed per State law. ► The EDA will provide $500 in earnest money with the balance of $84,500 due at closing. Attached is a basic purchase agreement prepared by Kennedy &Gravin for your review and comment. In addition, attached is a resolution approving the acquisition and authorizing the execution of the purchase agreement. The resolution allows the EDA to purchase the property for redevelopment purposes which allows further evaluation of its reuse. With several opportunities for redevelopment, the site will be evaluated as part of the Comprehensive Planning process with the entire community. • The opportunities will be presented as part of that process and comments and suggestions can be taken at that time. MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 97-EDA78 COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING AND AUTHORIZING THE ACQUISITION OF 8005 GROVELAND ROAD FOR REDEVELOPMENT PURPOSES AND THE EXECUTION OF A PURCHASE AGREEMENT FOR THAT PURCHASE 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 Minnesota Statutes, Sections 469.124 to 469.124 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) In order to achieve the objectives of the Project Plan, the Authority has determined to provide substantial aid and assistance through the financing of certain public costs of development. (f) The Authority desires to acquire approximately .79 acres of land located in the City at 8005 Groveland Road (the"Property"), and it has been proposed that the Authority enter into a purchase agreement and/or similar agreement(s) (collectively, the"Agreement") with the owners of that property for that acquisition and/or subsequent clearance of the property for redevelopment. (g) The Authority authorizes the acquisition of the property for$85,000 with an expenditure no greater than 3% of the purchase price to be used for closing costs. • 41, EDA RESOLUTION NO. 97-EDA78 PAGE TWO OF TWO 2. The Board hereby determines that the Authority's execution of the Agreement and the subsequent acquisition 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 acquisition of the Property, which is being accomplished for redevelopment purposes. 4. The Board hereby determines that the execution and performance of the Agreement and the acquisition of the Property will help realize the public purposes of the Act and are in furtherance of the Plan. Adopted by the Board of Commissioners of the Mounds View Economic Development Authority on December 15, 1997. • ATTEST: President (SEAL) Executive Director Executive Director's Certificate S I, the undersigned, being the duly qualified Executive Director of the Mounds View Economic Development Authority, do hereby certify that I have carefully compared the attached and foregoing resolution adopted at a meeting of the Board of Commissioners of said Authority duly called and held on the date herein indicated with the original thereof on file in my office and I further certify the same is a full,true, and correct copy thereof, insofar as the same relates to the approval of a certain Purchase Agreement respecting redevelopment property located at 8005 Groveland Road, Mounds View, Minnesota. I further certify that Boardmember moved the adoption of said resolution, that Boardmember seconded said motion, and that upon a vote being taken thereon, the following Boardmembers voted in favor thereof: • and the following Boardmembers voted against the same: whereupon said resolution was declared duly passed and adopted. WITNESS my hand as such Executive Director of said Authority the day of , 1997. Executive Director Mounds View Economic Development Authority III PURCHASE AGREEMENT IIIThis Purchase Agreement is made and entered into this day of , 1997, by and between Lloyd J. Blanchard and Phyllis Blanchard, husband and wife, ("Seller") and the Mounds View Economic Development Authority, a body corporate and politic under the laws of Minnesota ("Buyer"). 1. Seller bas received today from the Buyer the sum of$500.00 as earnest money and in part payment for the purchase of the premises at 8005 Groveland Road and legally dcscibed- as the South 1/3 of the West 1/2 of Lot 63. Auditors Subdivision no. 89, located in the City of Mounds View,Ramsey County, Minnesota("Property"). The Property includes all plants, shields and trees. storm windows and/or A, storm doom, screens, awnings, window shades, blinds, curtains traverse-drapery rods, attached lighting fixtures with bulbs, plumbing fixtures. water heater, heating system, humidifier, central air conditioning, electronic air filter, water softener. cable television outlets and cabling, and built-ins, including dishwasher, garbage dispose, trash compactor, oven(s), cooktop, stove, microwave oven, hood-fin, intercom and installed carpeting located on the premises which are the property of Seller. The Property also include the following personal property: None all of which Seller has this day sold to Buyer for the sum of$85,000.00 which Buyer agrees to pay in the following manners: (a) Earnest money of$500.00 paid today; and(b) $84,500.00 cash on the date of closing. Buyer agrees that Seller may sell and remove all out-buildings located on the property prior to the date of closing. 0 Buyer. the Seller agrees to execute and deliver a 2. Subject to performance by the Bu Y subject only Warranty deed conveying unencumbered and marketable title to the Property,sub) to the following exceptions: (a) building and zoning laws,local ordinances, and state and federal regulations; and (b) public utility and drainage easement which to not interfere with the intended use of the Property. 3. Real estate Taxes due and payable in the ate ofhomestead shall clabsification or(� pro-rated as of the day of closing. The Seller warrants that current taxes (X) non-homestead classification. The Seller makes no representation concerning the amount of future real estate taxes. The Seller agrees to pay on the date of closing all special assessments levied or pending against the Property. including any assessments the payment of which has been deferred pursuant to Minn. Stat. Sections 435.193 through 435.195. 4. The Seller warrants that buildings, if any. are entirely within the boundary lines of the Property. The Seller also warrants that the premises are connected to city sewer and city water. The Parties acknowledge that the Properly is being sold in "as is" condition relating to the structural, operations, and mechanical systems. 5. If the Property is destroyed or substantially damaged by fire or any other cause before the closing this Purchase Agreement shall become null and void at the Buyers option, and the Seller shall refund all earnest money to the Buyer. • 6. The Seller warrants that the Property has not been used for production, storage, deposit or disposal of any toxic or hazardous waste or substance. petroleum product or asbestos Ww1348,1 Mu205-10 821-i 50/ZO'd 919-1 01E81EEZ19 N3AY99 7 Aa3NN9N-woJwdZO:ZI 18-91-3Ra product during the time the Seller has owned the Property. The Seller further warrants that the Seller has no knowledge or information of any fact which would indicate the Property was used for production, storage. deposit or disposal of any toxic or hazardous waste or substance petroleum product or asbestos product prior to the date the Seller purchased the Property. Notwithstanding the above,the Seller's warranty regarding petroleum products does not preclude the presence of heating oil or other similar products used us a heating fuel for the dwelling but the Seller does warrant that if there is a fuel tank on the Property used for the storage of heating oil or other similar product. the Seller has no knowledge of any leak in the tank or contamination caused thereby. The provisions of this paragraph shall not merge with the deed and shall survive closing on the Property. Not withstanding the foregoing, if, on or before April 15. 1998, Seller shall, in its sole discretion. determine that, due to the condition of the heating oil tank located on the Property that the Property is not acceptable. Buyer may, upon written notice to Seller, terminate this purchase agreement in which�event Ball earnest money shall be refunded to Buyer and this purchase agreement shall be nu 7. Seller hereby grants to Buyer and Buyers agents a license to enter the Property for the purpose of conducting an environmental assessment. The Buyer or Buyer's agent shall have the right pursuant to the license to bring persons and equipment onto the Property. make inspections and perform tests and analyses as Buyer may deem reasonable to determine the presence of a toxic or hazardous waste, substance.or petroleum product or asbestos product, and ascertain soil conditions on the Property. Buyer shall bear the cost of the environmental assessment. If the results of the environmental assessment are not to the satisfaction of the Buyer, the Buyer at its sole discretion may cancel this Purchase Agreement. If the Buyer cancels this Purchase Agreement pursuant to this provision, the Buyer shall restore the Property to its original condition or nearly so as is reasonably practicable. 8. To the best of the Seller's actual knowledge, there are two wells located on the • Property, which Seller agrees to seal at Seller's expense. If the wells are not sealed as of the Date of Closing, Buyer shall escrow 11,500.00 to cover �cost of closing${ed l�sthe pt��rty of the Seller's actual knowledge,there are g There are no septic systems located on the Property. 9. Closing shall take place on or before the 1st day of June, 1998, or other date as the parties may agree to in writing_ Delivery of all papers and monies and the closing shall be made at the offices of the City of Moundse Buyer shall belocation as agreed made to 2401 Highway by the parties 10, Mounds hereto. All deliveries and notices Y View, Minnesota 55112, and shall be marked: Attention: Cathy Bennett. 10. The Seller agrees to deliver possession no later than the date of closing. City water amid sewer charges, electricity and natural gas charges, fuel oil and liquid petroleum gas shall be prorated between the parties as of the date of closing. The Seller agrees to remove all debris and all personal property not included herein from the Property before the possession date. Personal properly not removed shall be deemed forfeited and rshall become e tag and deduct property Bron' the e Buyer. The Buyer may inspect the Property immediately to for the cost of purchasepriceofpayable shall not merge with that closing an amount ud ed and bly hall survive closing on the provisions of this paragraph Property. uyer 11. Within 30 days after thedateofbthis����the Seller to have marketableeller will provide the Btitle with an abstract of title or registered property • tee13a921 2 Mt1205-10 911-d g0/80'd 919-1 O1E81EEZ19 N3AVa9 da3NN3N-word wdZO:tl 18-51-na to the Property. The Seller shall pay at closing all costs incurred by the Buyer in extending the abstract of title or registered properly abstract and correcting dfee s related n the deed conveyingclosing. 4) the the Seller shall also pay the amount of the ��nsferer � payable or recording fees for documents Property to the Buyer and the amount ofany necessary to vest title in the Seller. 12. If the Buyer defaults in any of the covenants herein,the Seller may terminate this Purchase Agreement, and on such termination all payment made hereunder shall be retained by the Seller as liquidated damages, time being of the essence. This provision shall not deprive either party of the right to enforce specific performance of the Purchase Agreement,provided this Purchase Agreement has not terminated and action to enforce event c perthformance Buyer defauis lts inced us within six months after such right of action arises performance of the terms of this Purchase Agreement and Notice of Cancellation is served upon the Buyer pursuant to Minn. Stat. Section 559.21. the termination period shall be thirty (30)days as permitted by Minn. Stat., Section 559.21, Subd. 4. 13. The Seller warrants that if, for any reason, a Slesion or fee is due on the sale of the Property. such commission or fee shall be paid byhe 14. The Seller warrants that the Properly is not now occupied tt by Lenants and a topurchaseas not the occupied by tenants at the time the Seller first received the Buyer's Property. 15. The parties agree that the purchase price includes any and all amounts which Seller may he entitled to receive as relocation benefits pursuant to applicable laws and regulations. • IN WITNESS'WHEREOF,the parties have hereunto set their hands the day and year first above written. SELLER: BUYER: accept this MOUNDS VIEW ECONOMIC I.Purchase Agreement and agree to sell the DEVELOPMENT AUTHORITY Property in accordance with the terms and the conditions set forth in the Purchase The ��es to on the terms conditions emises Agreement_ set forth above. SELLER: Date By: Date Its President SELLER: Date BY• Date Its Executive Director 0 v9'1341 e2 1 3 mmos-ID 821—d 90/Po'd 919-1 0tEBZEEZt9 N3AVN9 7 A03NN3N-word wdZo:Zl Z 8-51-980 STATE OF MINNESOTA ) 1111)) ss. COUNTY OF RAMSEY ) The foregoing instrument was acknowledgedday of and beforc me this the dent and 1997, by Executive Director, respectively, of the Mounds View Economic d anic Development osaid corporation., body corporate and politic under the laws of Minnesota, y Notary Public of , 1997 The foregoing instrument was acknowledged before a n behalf ofyS Seller(s). by , the Sellcr(s), by Notary Public This is a legally binding contract. If not understood, seek competent advice. This document drafted by: KENNEDY & GRAVEN, CHARTERED (LMW) 470 Pillsbury Center 200 South Sixth Street Minneapolis, MN 55402 (612) 337-9216 S Ww134821 4 MU2O5-10 911-d 90/90 d 919-1 0188199Z19 N3AYa9 7 A03NN3N-woJd wdg0:Z1 18-91-3e9