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HomeMy WebLinkAbout10-26-1998 EDA • • CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MONDAY, OCTOBER 26, 1998 AGENDA ROLL CALL: President McCarty, Vice President Koopmeiners, Commissioner Gunn, Commissioner Quick, Commissioner Stigney 1. AGENDA ADDITIONS: 2. APPROVAL OF MINUTES Ocoter 13, 1998 3. SPECIAL ORDER OF BUSINESS: None 4. CONSENT AGENDA None • 5. COUNCIL BUSINESS A. Consideration of EDA Resolution No. 98-EDA-98 Authorizing the Purchase Agreement for the property located at 6991 Pleasant View Drive as part of the Housing Replacement Program. F. REPORTS G. ADJOURNMENT • • CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY TUESDAY, OCTOBER 13, 1998 Regular Meeting Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 CALL TO ORDER President McCarty called the meeting to order at 10:15 p.m., October 13, 1998 ROLL CALL MEMBERS PRESENT: President McCarty, Commissioners Gunn, Koopmeiners, Quick and Stigney. ALSO PRESENT: City Administrator Chuck Whiting, Community Development Director Rick Jopke, Housing Inspector Steve Dorgan, and Recorder Kathy Hix (for Dave Hix). • 1. AGENDA ADDITIONS No additions were considered. 2. APPROVAL OF MINUTES MOTION/SECOND: Gunn/Quick to approve the EDA meeting minutes of September 14, 1998. VOTE: Ayes - 5 Nays - 0 The motion carried 3. SPECIAL ORDER OF BUSINESS No special order of business was considered. 4. CONSENT AGENDA No consent agenda was considered. 5. AUTHORITY BUSINESS A. Discussion of Home Improvement Loan Interest Subsidy Program. • Dorgan gave his report as follows: Mounds View EDA October 13, 1998 • Page 2 At a previous workshop meeting the Council had directed staff to take steps necessary for the implementation of the Home Improvement Loan Interest Subsidy Program. As proposed, the program would use TIF funds to finance subsidies and associated administrative costs. The City Attorney has informed staff that TIF may not be used to subsidize interest rates for home improvement loans. Staff has begun researching other funding sources which the City may access to provide subsidies for the proposed program. Some of the available options were listed as follows: 1. Metropolitan Council Livable Communities Housing Initiatives Fund 2. Super RFP(sponsored by the Metropolitan Council and the Minnesota Housing Finance Agency 3. Housing replacement program 4. Remodeling counselors If approved, some modifications to the income requirements of the proposed program may be necessary. Staff will continue to work on obtaining financial assistance for the interest subsidy program as well as other housing related programs. • MOTION/SECOND: Koopmeiners/Gunn to direct staff to pursue alternative funding sources including the MHFA "Super RFP" to fund the proposed interest subsidy Home Improvement Loan Program as well as additional housing related programs. VOTE: Ayes - 5 Nays - 0 The motion carried B. Discussion of Salvation Army Proposed Multi-Family Development. Dorgan reviewed staffs October 8, 1998 Memo to the EDA and gave the following report: The Salvation Army is requesting that the City acquire and sell a tax-forfeited parcel to them for a proposed development. They are proposing to acquire the proposed lot as well as an adjacent lot owned by Glen thorpe Realty for the development of an eight unit multi-family building. Since the property is a tax forfeited parcel owned by the State, non-municipal entities would have to purchase the property through an auction. The Salvation Army is requesting that the City release the "use deed" on the property. The City would then purchase and resell the lot to the Salvation Army contingent upon the approval of the Salvation Army's development proposal. The development proposal would include a rezoning, variance and development review. Ramsey County Assessors Office has valued the land at $29,000. Staff was seeking direction from the EDA for further action on this proposal. • • Mounds View EDA October 13, 1998 Page 3 Attorney Long advised the Commissioners that, procedurally, there is an issue here that the City act rather than the EDA to deal with tax forfeit properties. He stated he would have to review the statute to get the exact wording and how it applies to the City and the EDA. The City Attorney recommended deferring the matter to the City Council. McCarty recommended that the Commission not take action on the issue. He directed staff to prepare the necessary documentation for presentation to the City Council as soon as possible. The Commission concurred. 6. REPORTS No Commissioner or staff reports were considered. 7. ADJOURNMENT MOTION/SECOND: Koopmeiners/Stigney to adjourn. • VOTE: Ayes - 5 Nays - 0 y The motion carried There being no further business before the EDA, President McCarty adjourned the meeting at 10:32 p.m. Respectfully submitted, Dave Hix Recorder • Item No. 5P Meeting Date: 10-26-98 Staff Report No. Type of Business:EDAB WK Work Session;PH:Public Hearing; CA:Consent Agenda;EDAB:EDA Business Mounds View Eoonomlo Development Authority Staff Report To: Mounds View Economic Development Authority From: Steve Dorgan, Housing Inspector Item Title/Subject: MVHRP—Purchase Agreement for 6991 Pleasant View Dr. Date of Report: October 21, 1998 SUMMARY Purchase Agreement At the EDA meeting on June 22, 1998 the Commission approved the purchase of 6991 Pleasant View Drive as part of the Housing Replacement Program. The approved purchase price for the property is $60,500. Staff has prepared a purchase agreement for the EDA to acquire the property. The owner has recently signed the purchase agreement and has tentatively scheduled a closing with the City for December 18, 1998. Hazardous Materials Assessment • As part of the site acquisition,HRP policy requires a Hazardous Materials Survey to be completed. Staff has received three separate bids for completion of the required work Airtech Environmental,Inc submitted the low bid of$630.00. Staff is in the process of arranging for the survey to be performed. ACTION TO BE CONSIDERED Approve EDA Resolution No. 98-EDA-98 authorizing the purchase agreement for the property located at 6991 Pleasant View Drive as part of the Housing Replacement Program. Sm:VZ)s Steve Dorgan,Housing Inspector 717-4023 Attachments: 1) Purchase Agreement for 6991 Pleasant View Drive 2) Resolution 98-EDA-98 N:\DATAWROZJPSVICONDEWMVNRP6991PLEMAPR1L 13.REP • • PURCHASE AGREEMENT 1. PARTIES. This Purchase Agreement is made this 20 day of O C?, I , 1998 by and between JOE W TZMAN, a single person, owner and seller (the "Seller") and the MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic, 2401 Highway 10,Mounds View,MN 55112-1499("Buyer"). 2. SUBJECT PROPERTY. Seller is the owner of that certain real estate (the "Property") located at 6991 Pleasant View Drive,Mounds View,and legally described as follows: Lot 70, KNOLLWOOD PARK, Mounds View, Minnesota, according to the plat filed for record with the Ramsey County Recorder. 3. O.NFER/ACCEPTANCE. In consideration of the mutual agreements herein contained, Buyer offers and agrees to purchase and Seller agrees to sell and hereby grants to Buyer the exclusive right to purchase the Property and all improvements thereon, together with all appurtenances, including, but not limited to, garden bulbs,plants,shrubs, trees, and grass. 4. CONTINGENCY/ACCEPTANCE DEADLINE. This Purchase Agreement shall be presented to the Board of the Buyer within 30 days of the date it is submitted to Buyer, fully executed by Seller herein. If the Buyer does not approve this Purchase Agreement, all Earnest . Money shall be refunded to the Buyer. 5. PERSONAL PROPERTY INCLUDED IN SALE. The following items of personal property and fixtures owned by Seller and currently located on the Property are included in this sale: storm windows and inserts, storm doors, screens, awnings, window shades, blinds, curtain- au) traverse-drapery rods, attached lighting fixtures with bulbs, plumbing fixtures, sump pumps, veer heaters, heettifig-sy3tex4s, built-in appliances, water softeners, garbage disposals, installed carpeting, work benches, television antennas and hood-fans. Upon delivery of the deed, Seller shall also deliver a Bill of Sale for the above personal property. 6. PURCHASE PRICE AND TERMS: A. PURCHASE PRICE: The total Purchase Price for the real and personal property and fixtures included in this sale is Sixty Thousand Five Hundred and No/100ths Dollars ($60,500.00). B. TERMS: (1) PAYMENT OF PURCHASE PRICE TO SEJ.i,FR. Buyer agrees to pay by check the amount of One Thousand and No/100ths Dollars ($1,000.00) as earnest money (the "Earnest Money") to be deposited by Seller with Title • Insurer/Closer within three (3) days after the date of this Agreement and held and disbursed under the terms of this Agreement on the Date of Closing. Buyer agrees to pay the Balance Due of Fifty Nine Thousand Five Hundred and No/100ths Dollars ($59,500.00) in cash or by check on the SJR-148110 MU205-12 Date of Closing according to the terms of this Purchase Agreement. • (2) ASSUMPTION OF EXISTING INDEBTEDNESS. The Buyer, in its discretion and in partial payment of the purchase price, may, to the extent assumable, assume or take title subject to any existing indebtedness encumbering the Property, in which case the cash to be paid at the time of closing shall be reduced by the then remaining indebtedness. (3) DEED/MARKETABLE TITLE. Subject to performance by Buyer, Seller agrees to execute and deliver a Warranty Deed conveying marketable title to the Property to Buyer,subject only to the following exceptions: a. Building and zoning laws,ordinances,state and federal regulations. b. Reservation of minerals or mineral rights to the State of Minnesota. c. Utility and drainage easements. (4) DOCUMENTS TO BE DELIVERED AT CLOSING. In addition to the Warranty Deed required in paragraph 6.B.(3) above, Seller shall deliver to Buyer: • a. Bill of Sale for personal property. • b. Affidavit of Seller. c. Such other documents as may be required by Buyer's title examiner or title insurance company. 7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. A. Seller shall pay at or prior to closing all real estate taxes due and payable in 1997 and prior years. B. Seller shall pay at or prior to closing the balance of all special assessments Ievied prior to closing. C. Real estate taxes due and payable in 1998 shall be prorated as of the date of closing between Buyer and Seller. D. Seller shall pay all special assessments pending as of the date of this Purchase Agreement, if any. If the amount of the special assessments is not finally deter- mined by the Closing Date, Seller agrees to escrow an amount equal to one and one- half times the estimated amount, which shall be used to pay the special assessments • when levied. Buyer shall assume special assessments that become pending after the date of this Purchase Agreement, except that Seller shall at all times be responsible to pay special assessments, if any, for delinquent sewer or water bills, removal of SJR-148110 MU205-12 diseased trees, snow removal, or other current services provided to the Property by • the assessing authority while the Seller is in possession of the Property. 8. MARKETABILITY OF TITLE; COSTS TO CLEAR TITLE. Seller shall, within a reasonable time after signing this Agreement and at the expense of Seller, furnish an abstract of title or registered property abstract certified to date to include proper searches covering bankruptcies, all judgments, taxes, special assessments and liens. Buyer shall be allowed fourteen (14) days after receipt thereof for examination of said title and the making of any objections thereto, said objections to be made in writing or deemed to be waived. If any objections are so made, Seller shall be allowed sixty (60) days to make such title marketable. Seller shall permit no additional encumbrances to be made upon the Property between the date of this Purchase Agreement and the Closing Date. If said title is not marketable and is not made so within sixty (60) days from the date of written objections thereto as above provided, this Agreement shall be null and void, at option of Buyer, and neither party shall be liable for damages hereunder to the other party. All money theretofore paid by Buyer shall be refunded. Alternatively, if Buyer elects to proceed with this transaction, Seller shall bear any and all costs to clear title to the Property, including the cost of satisfying any mortgages or liens of record, if any. In the event Seller fails to clear title to the extent herein required, Buyer may clear title to the extent required and charge the cost of clearing title to the Seller, including attorney's fees, court • costs, condemnation awards, amounts paid for releases, waivers or quit claims and all other costs actually incurred by Buyer,unless waived by Buyer. In the event that title to the Property cannot be made marketable by the Seller by the Closing Date, then, at the option of the Buyer, this Purchase Agreement shall be null and void and all money theretofore paid by Buyer shall be refunded to the Buyer. 9. DEFAULT. If the title to the Premises be found marketable or be so made within said time, and Buyer shall default in any of the covenants contained in this Agreement and continue into default for a period of ten (10) days, then and in that case, Seller may terminate this Agreement and on such termination all the payments made under this Agreement shall be retained by Seller as liquidated damages, time being of the essence hereof. This provision shall not deprive either party of the right of enforcing the specific performance of this Agreement provided this Agreement shall not be terminated as aforesaid, and provided action to enforce such specific performance shall be commenced within six months after such right of action shall arise. 10. CLOSING DATE. The closing of the sale of the Property shall take place on or before, December 4, 1998, or at such earlier or later date as may be mutually agreed upon by the Seller and Buyer. In no event shall the Closing Date be after December 18, 1998. 11. POSSESSION. The Seller shall deliver possession of the Property to Buyer at 11:59 a.m. • on the date of closing, in substantially the same condition as the Property exists on the date of this Purchase Agreement, reasonable wear and tear excepted. 12. DAMAGES TO REAL PROPERTY. If the Property is substantially damaged prior to SJR-148110 MU205-12 closing, or if the Property is damaged materially but less than substantially prior to closing, Buyer • may rescind this Purchase Agreement by notice to Seller within twenty-one (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. 13. CONDITION OF PROPERTY. Seller warrants that all appliances, fixtures, heating and air conditioning equipment, wiring, and .lumbing used and located on the property are in working order on the date of closing. Seller k'i'p' • S NOT) had a wet basement or water in the basement. Seller discloses that the roof) • NOT) leaked. Seller shall remove all debris and all personal property not included in , sale from the Property before possession date. Seller has not received any notice from any governmental authority as to the existence of any dutch elm disease, oak wilt,or other disease of any trees on the Property. Seller's warranties and representations contained in this paragraph 13 shall survive the closing of this transaction. Buyer shall have the right to have inspections of the Property conducted prior to Closing. Unless required by local ordinance or lending regulations, Seller does not plan to have the Property inspected. Other than the representations made in this paragraph, the property is being sold "AS IS" with no express or implied representations or warranties by Seller as to physical conditions, quality of construction, workmanship,or fitness for any particular purpose. (This paragraph is not intended to waive or modify any provisions of Minn. Stat.,Chapter 327A.) 14. DISCLOS it ; INDIVIDUAL SEWAGE TREATMENT SYSTEM. Seller discloses • that there (IS) eh 0 an individual sewage treatment system on or serving the Property. If there is an individu. •• .ge treatment system on or serving the Property, Seller discloses that the system (IS) (IS NOT) in use, and Seller further discloses that the type of system is a system and the location is shown on map attached as Exhibit B to this Purchase Agreement. 15. CONDITION OF SUBSOIL AND GROUND WATER; ENVIRONMENTAL WARRANTY. Seller hereby warrants to Buyer that during the time the Seller has owned the Property there have been no acts or occurrences upon the Property that have caused or could cause impurities in the subsoil or ground water of the Property or other adjacent properties. This warranty shall survive the closing of this transaction. Seller agrees to indemnify and hold harmless Buyer from any and all claims, causes of action, damages, losses, or costs (including reasonable attorney's fees) relating to impurities in the subsoil or groundwater of the Property or other adjacent properties which arise from or are caused by acts or occurrences upon the Property prior to Buyer taking possession of the same. This indemnity shall survive the closing of this transaction. Seller warrants that to the best of the Seller's knowledge no toxic or hazardous substances, including, without limitation, asbestos, urea formaldehyde, the group of organic compounds known • as polychlorinated biphenyl, and any substance as defined or listed as "hazardous materials" or "toxic substances" or similarly identified in or pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"),42 U.S.C. Section 9601-9657, as SJR-148110 MU205-12 now or later amended, "hazardous materials" identified in or pursuant to the Hazardous Materials • Transportation Act,49 U.S.C. Section 1802, et seq., as now or later amended, "Hazardous Wastes" identified in or pursuant to The Resource Conservation and Recovery Act of 1976 ("RCRA"), 42 U.S.C. Section 6901 et seq., as now or later amended, any chemical substances or mixture regulated under the Toxic Substances Control Act of 1976, 15 U.S.C. Section 2601, et seq., as now or later amended, any "toxic pollutant" under the CIear Water Act, 33 U.S.C. Section 1251 et seq., as now or later amended, any hazardous air pollutant under the Clean Air Act, 42 U.S.C. Section 7901 et seq., as now or later amended, and any hazardous or toxic substance or pollutant now or later regulated under any other applicable federal, state or local Environmental Laws, have been generated, treated, stored, released or disposed of, or otherwise deposited in or located on the Property, including without limitation, the surface and sub-surface waters of the Property, nor has any activity been undertaken on the Property which would cause the Property to become a hazardous waste treatment, storage or disposal facility within the meaning of, or otherwise, bring the Property within the ambit of, any of the aforementioned acts or any similar state law or local ordinance or any other Environmental Law. Seller also warrants that to the best of Seller's knowledge there are no substances or conditions in or on the Property which may support a claim or cause of action under any of the aforementioned acts or any other federal, state or local environmental regulatory requirement and that no underground deposits which cause hazardous wastes or underground storage tanks of any type are located on the Property. 16. WELL DISCLOSURE. The Seller certifies that the Seller does not know of any wells on the described real property. • 17. SELLER'S WARRANTIES. Seller warrants that buildings, if any, are entirely within the boundary lines of the property. Seller warrants that there is a right of access to the real property from a public right-of-way. Seller warrants that there has been no labor or material furnished to the property for which payment has not been made. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the Property. These warranties shall survive the closing of this transaction. 18. NO BROKER INVOLVED. The Seller and Buyer represent and warrant to each other that there is no broker involved in this transaction with whom it has negotiated or to whom it has agreed to pay a broker commission. Buyer agrees to indemnify Seller for any and all claims for brokerage commissions or finders'fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Buyer, and Seller agrees to indemnify Buyer for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Seller. 19. RELOCATION BENEFITS. Seller expressly agrees to waive any and all relocation benefits, assistance and services, related to the Seller's ownership and activities on the Property to which Seller may be entitled by law, as a result of the transaction contemplated by this Purchase Agreement. Seller agrees to provide to Buyer at Closing an executed waiver of relocation benefits as to these activities. • 20. MERGER OF REPRESENTATIONS, WARRANTIES. All representations, warranties and agreements contained in this Purchase Agreement shall not be merged into any instruments or SJR-148110 MU205-12 conveyance delivered at closing, and the parties shall be bound accordingly. • 21. ENTIRE AGREEMENT; AMENDMENTS. This Purchase Agreement constitutes the entire agreement between the parties, and no other agreement prior to this Purchase Agreement or contemporaneous herewith shall be effective except as expressly set forth or incorporated herein. Any purported amendment shall not be effective unless it shall be set forth in writing and executed by both parties or their respective successors or assigns. 22. BINDING El i ECT; ASSIGNMENT. This Purchase Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors and assigns. Buyer shall not assign its rights and interest hereunder without notice to Seller, and Seller shall give notice to Buyer of assignment of its interests in the manner prescribed in paragraph 23. 23. NOTICE. Any notice, demand, request or other communication which may or shall be given or served by the parties shall be deemed to have been given or served on the date the same is deposited in the United States Mail, registered or certified, postage prepaid and addressed as follows: a. If to Seller: Joe Wi an d�g/ Ic'mso"--74 w • p-- b. If to Buyer: Mounds View Economic Development Authority Attn: City Clerk/Administrator 2401 Highway 10 Mounds View,MN 55112 With copy to: Scott J. Riggs Kennedy&Graven,Chartered 470 Pillsbury Center 200 South Sixth Street Minneapolis,MN 55402 24. SPECIFIC PERFORMANCE. This Purchase Agreement may be specifically enforced by the parties. 25. ADDITIONAL DOCUMENTS. Buyer and Seller agree to cooperate with the other and their representatives regarding any reasonable requests made subsequent to the execution of this Purchase Agreement to correct any clerical errors in this Purchase Agreement and to provide any and all additional documentation deemed necessary by either party to effectuate the transaction contemplated by this Purchase Agreement. 26. EXECUTION IN COUNTERPARTS. This Purchase Agreement may be executed in counterparts by the parties hereto. SJR-148110 MU205-12 NOTICE: THIS IS A LEGALLY BINDING CONTRACT BETWEEN • BUYER AND SELLER. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. IN WITNESS WHEREOF, the parties have executed this agreement as of the date written above. R ..— Airr—o.,,,Z, Aid if - /tzman / BUYER MARVIN L JOHNSON ki _ NOTARY PUBLIC-MINNESOTA •'� MOUNDS VIEW ECONOMIC . • SHERBURNECOUNTY DEVELOPMENT AUTHORITY M�; m ^" mission Expires Jan.31,?^^1 t By Duane McCarty,President By Charles S. Whiting, Executive Director • SJR-148110 MU205-12 RESOLUTION NO. 98-EDA-98 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA • RESOLUTION APPROVING AND AUTHORIZING THE PURCHASE AGREEMENT FOR THE ACQUISITION OF 6991 PLEASANT VIEW DRIVE AS PART OF THE EDA'S HOUSING REPLACEMENT PROGRAM It is hereby resolved by the Board of Commissioners(the"Board")of the Mounds View Economic Development Authority(the "Authority") as follows: Section 1. Recitals. (a) Pursuant to Minnesota Statues, Sections 469.124 to 469.134 and 469.090 to 469.108 (collectively,the"Act"),the Authority(I)has undertaken a program to promote development and redevelopment of certain land within the City of Mounds view and is engaged in carrying out the Mounds View Economic Development Project(the"Project")within the City; (ii)has approved a Project Plan for the Project; and(iii)has approved and adopted a Housing Replacement Program under and as an aspect of the Project Plan (b) It has been approved that the Authority acquire the property located 6991 Pleasant View Drive(the"Property") and that the Authority enter into a purchase agreement and/or similar agreement(s)(collectively,the"Agreement")for that acquisition and/or subsequent clearance of the property for redevelopment Section 2. Resolved. 2.01 The Board hereby determines that the Authority's execution of the Agreement and the 41) subsequent acquisition and/or clearance of the Property would be in furtherance of the Project Plan and the Housing Replacement Program 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. 2.02 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. 2.03 That the Board of the Authority hereby determines that the execution and performance of the Agreement and acquisition of the Property will help realize the public purposes of the Act and are in furtherance of the Project Plan and the Housing Replacement Program. Adopted by the Board of Commissioners of the Mounds View Economic Development Authority this 26th day of October, 1998. Duane McCarty,Acting President ATTEST: Chuck Whiting, Executive Director i N:\DATA\GROUPSCOMD 1PLEAV.QUISRES