HRA 12/09/1999 - 6317_(
HOUSING & REDEVELOPMENT AUTHORITY MEETING
THURSDAY, DECEMBER 9, 1999
MEETING 7:30 P.M.
PUBLIC COPY
(Please return to Community Development Department)
CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY MEETING
DECEMBER 9, 1999, MEETING, 7:30 P.M.
AGENDA
LOCATION: City Council Chambers
CALL TO ORDER
ROLL CALL:
APPROVAL OF MINUTES:
November 4, 1999
CONSENT AGENDA:
Cola Increase for HRA Employees (Amended Resolution) . ..............................1
VApprove Appraisals for Gateway East Properties ............ ............................... 2
Claims and Expenses ............................................... ............................... 3
ACTION ITEMS:
VApprove Resolution Authorizing Execution of
Restated Development Contract, Medtronic, Inc ............. ............................... 4
Approve Proposed Acquisitions .................................... ..............................5
a. Duplex at 340 -353 5r Place
b. Werner's Furniture
c. Scattered Site Residential
1) 6175 East River Road
2) 571 Lafayette Street
3) 630 Ely Street
d. Vacant Land Acquisitions
1) Erickson Property, Central Avenue
2) Nedegaard Property, r Street
3) Doug, Petty Property, Central Avenue
4) Carlson Property, Central Avenue
Resolution Authorizing Prepayment of
Housing Loan to the City of Fridley .............................. ............................... 6
INFORMATION ITEMS:
"Welcome to Fridley" Sign at Northwest Comer
of TH 65 and Medtronic Parkway ................................ ............................... 7
Comprehensive Plan Update ....................................... ..............................8
OTHER BUSINESS
ADJOURNMENT
CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY MEETING
NOVEMBER 4,1999
CALL TO ORDER:
Chairperson Commers called the November 4, 1999, Housing and Redevelopment
Authority meeting to order at 7:32 p.m.
ROLL CALL:
Members Present: Lary Commers, John Meyer, Virginia Schnabel, Jim McFarland,
Pat Gabel
Members Absent: None
Others Present: Barbara Dacy, Community Development Director
Grant Femelius, Housing Coordinator
Jim Casserly, Development Consultant
Julie Vogel, Accountant
Dennis P. Micke, 621 Lafayette Street
Janice Bressler, 621 Lafayette Street
APPROVAL OF THE OCTOBER 14. 1999. HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES:
MOTION by Ms. Gabel, seconded by Mr. McFarland, to approve the October 14, 1999,
Housing and Redevelopment Authority meeting minutes as presented.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
CONSENT AGENDA:
1. CONSIDER PARTICIPATION IN MINNESOTA SOLUTIONS FOR 2000.
2. CONSIDER ACQUISTION OF 6175 EAST RIVER ROAD.
3. AMENDMENT TO DEVELOPMENT CONTRACT WITH CEE.
4. COLA INCREASE FOR HRA EMPLOYEES.
5. CLAIMS AND EXPENSES.
MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the Consent Agenda
with the Consideration of the Acquisition of 6175 East River Road taken from the
Agenda, and with the addition of the additional expenses provided by Julie Vogel.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
PUBLIC HEARINGS:
HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 4, 1999 PAGE 2
2. PUBLIC HEARING ON SALE OF 611 LAFAYETTE STREET:
MOTION by Ms. Schnabel, seconded by Ms. Gabel, to open the public hearing.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED AND THE PUBLIC HEARING WAS OPENED AT 7:40 P.M.
Mr. Fernelius stated that the property at 611 Lafayette Street is located in the Riverview
Heights area of Fridley. The property, acquired by the HRA 1996, was purchased from
a family that experienced a fire and the property was damaged beyond 50% of the value
of the structure and they were not able to rebuild. The HRA made an offer at that time
to purchase the property for $5,500. The lot is 55 feet wide and 110 feet deep and is
considered a non - buildable lot. The City has been unable to include it in the Scattered
Site Program as a site for a new home. Since that time they have been maintaining it
but have not done anything with it.
Mr. Femelius stated that the property owner to the west, Dennis Micke at 621 Lafayette
Street, contacted him last summer. Mr. Micke had expressed interest in buying the
property and combining it with his parcel to expand the size of his yard and provide
opportunities to enlarge his home and other improvements. Mr. Femelius proposed a
sale price of $5,500 to Mr. Micke. Mr. Micke expressed concerns about being able to
finance it on his own. A deal was negotiated in which the HRA would essentially
provide him with a deferred mortgage on the property. He would not have to pay that
off until he sells the entire site at some time in the future. This approach has been used
before on other HRA properties. Staff recommends authorization to award the property
to Mr. Micke.
Mr. Micke, 651 Lafayette Street, stated that he understood the process of the sale of the
lot. His plan for the lot was to combine it with his present lot. He has a small house and
would like to eventually turn it into a small garage and build a larger house on part of the
new lot.
Mr. Commers asked what lot Mr. Micke currently lives on.
Mr. Micke stated he lives on Lots 24 and 25. The lots are only 25 feet wide for a
combined total of 50 feet wide. This lot would add another 50 feet.
Ms. Schnabel asked if the 1 % interest rate was standard.
Mr. Femelius stated they have used this same interest rate on a recent lot that was sold
in Hyde Park to a property owner who had a similar situation.
Ms. Schnabel asked if the lots have to be recorded with the County in any special way.
Mr. Femelius stated that nothing would be done from a planning perspective. The lot
would be combined into one parcel for tax purposes.
Ms. Gabel stated that with the sale, a conforming lot size is achieved.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 4, 1999 PAGE 3
Mr. Micke asked if it would be an annual interest.
Mr. Femelius stated that it would be simple interest.
Mr. Micke stated that he thought it was a very good deal and thanked the HRA
members.
Mr. Commers stated that the HRA was trying to help people and make things available
at a very reasonable price so they can improve their property.
MOTION by Ms. Schnabel, seconded by Mr. McFarland, to close the public hearing.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED AND THE PUBLIC HEARING WAS CLOSED AT 7:46 P.M.
MOTION by Mr. Meyer, seconded by Ms. Gabel, to approve the sale of 611 Lafayette
Street to Dennis Micke.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
ACTION ITEMS:
7. RESOLUTION AUTHORIZING COMDEMNATION OF GATEWAY EAST
REDEVELOPMENT PARCELS:
Mr. Fernelius stated that the HRA is attempting to acquire three remaining parcels in the
Gateway East Project area --the property owned by Valvoline at the comer of 57th and
University Avenue, a duplex property at 353 57th Place, and a vacant lot immediately
north of that site. They have attempted to negotiate with all three property owners, and
the owners of two of the sites are far apart on price with the City. They have not been
able to contact the tax forfeit lot owner due to the owner being out of state.
Mr. Femelius stated that they would like to receive authorization to proceed with the
condemnation of all three sites. That does not preclude them from trying to negotiate
with the owners; but due to the timing and necessity that they get the transactions
closed by the end of the year, they feel it is important to take that action this evening.
This will have to happen fairly quickly, but they are not actually buying the properties at
this point.
Mr. Commers asked what Lots 4, 5, and 6 are.
Mr. Fernelius stated that Lots 4, 5 , and 6, Block 3, City View Addition, is the tax - forfeit
lot owned by Richard Miller between the duplex and JR's Automotive. The second site,
Lots 5, 6, and 7, Block 6, City View Addition, is the Valvoline site directly east of Instant
Oil Change. The third site, Lots 7 and 8, Block 3, City View Addition, is the duplex
owned by William Fogarty.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 4, 1999 PAGE 4
Mr. Femelius stated staff would give the HRA an update on the process at the
December meeting. They can get into more discussions about evaluations and prices.
Mr. Commers stated the only issue is what is the HRH's obligation if they have to
condemn the property. How does that affect the consent decree?
Ms. Dacy stated that the City Attorney did evaluate that issue. He felt that the
acquisition and the condemnation are appropriate and that it would not adversely affect
the consent decree. She could provide a copy of his opinions.
Mr. Commers asked for clarification regarding the redevelopment and the resolution.
Mr. Casserly stated that legal documentation contained a number of references to the
redevelopment program that provides the HRA to enter into acquisitions. It really
specifies the factual justification.
Mr. Commers stated that if the resolution is sufficient, that is fine, in case somebody
wanted to object to the acquisition process.
Mr. Casserly stated that it was the redevelopment plan that states the public policy and
bindings that they use.
Ms. Schnabel asked if these are the only properties they need to proceed with.
Mr. Femelius stated that is correct.
Mr. Commers stated that this was an outgrowth of the funds that are tied up in the other
districts.
Mr. Casserly stated that this was also necessitated by the fact that they have the funds
available. This district could never support itself, being that it would be residential.
They do need to use some of the other resources they have available now to do this
acquisition.
Mr. Commers stated that this was discussed at the joint City Council and HRA meeting,
and the majority felt this was what should be done.
MOTION by Mr. Meyer, seconded by Ms. Schnabel, to approve HRA Resolution No.
13 -1999, Resolution Determining the Necessity for and Authorizing the Acquisition of
Certain Property by Proceedings in Eminent Domain.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED.
8. RESOLUTION AUTHORIZING AMENDMENT TO DEVELOPMENT
CONTRACT, MEDTRONIC. INC.
a HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 4, 1999 PAGE 5
Ms. Dacy stated that Medtronic is agreeable to the terms in general, but they wanted to
check with their legal counsel regarding the issue of the business subsidy law. Staff is
suggesting postponing this item until the December agenda.
Mr. Commers asked Mr. Casserly to give a summary of the changes made to the
resolution.
Mr. Casserly stated that from the time they originally entered into the contract for
negotiations with Medtronic, they had intended that there would be an actual sale of the
property. In order to try to get the project going, everybody agreed to go ahead and
proceed with the closing and execute the documents; then sort the issues out later.
Mr. Casserly stated Medtronic is signing a note to the City for $5,000,000 to cover the
cost of the site and the City's cost for public improvements, and there are still some
things that have not been done that will incur more expenses. It is also to cover their
option rights. They have the right to take down additional portions of the property. They
will provide the City with that note and pay the City over a period of time.
Mr. Casserly stated a copy of the revenue note shows the amount that is being paid
back to the City. The City has received three pages regarding cash flows. The pages
are titled Original, Restated, and Note. The cash flow that has the handwritten original
in the right hand comer reflects the cash flow they have been working on for many
months. The assumptions that go into this are just assumptions. There is a large
amount of increment projected which assumes that they will have very high market
valuation.
Mr. Casserly stated the buildings will be valued at $100 per square foot. It also
assumes the inflation rate of 2% per year and a buildup of six or seven years. It
assumes the legislature does not reduce the class rates anymore and a tax rate that is
fairly high also. All of these assumptions provide the revenue stream. The revenue
stream has then been allocated between the HRA and Medtronic. The original concept
shows how they have tried to piece this together through last winter and spring. The
amount in column C is the amount that is available from the HRA, and the amount in
Column F is the amount available from Medtronic. They needed to increase the
budgets for Tax Increment District 6 where Medtronic is located. That has all been
done and the public hearing was held by the City Council. That has been continued
until the second meeting in November or probably first meeting in December.
Mr. Casserly stated they reworked the arrangement with Medtronic, and the restated
cash flow is how the current arrangement would look if the HRA approved the changes.
In column E, the Medtronic loan payments are the result of the $5,000,000 loan
payments they need to execute. That note payment with interest would generate the
revenues that are shown in column E.
Mr. Casserly stated Column H is the restated cash flow which shows the flow of
payments to the HRA. If the HRA was to look back at the original cash flow and the
amount available to the City, column C is going to look very much like column H, the
restated cash flow. Medtronic will be paying the HRA by installment sales. These
figures are all just based on reasonable assumptions, but they cannot say for certainty
A.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 4, 1999 PAGE 6°
that in ten years from now there will be a note payment of $250,000 every six months.
This should work favorably for the HRA, and Medtronic's corporate counsel indicated
that they are comfortable with the concept and want to try to make sure the formulas are
working. Medtronic has raised the issue of a subsidies act that went into effect August
1St this year.
Mr. Commers stated that the HRA needed a little time to look over this change in
concept and thanked Mr. Casserly for giving a little more background.
Mr. Meyer stated that both sides are where they were before.
Mr. Commers stated that they are in terms of the numbers, but the HRA is in different
shape in the way that they are getting the money and how the money can be eligible.
Mr. Casserly stated that there is an opportunity that is important. If this site was really
built out more than the square feet projected, and if it was built sooner than the six year
period, it is possible for them to pay off this note. They could be getting more than
anybody anticipated. This project is complicated because the space is very difficult to
use other than what they need it for.
Mr. Casserly asked Ms. Dacy if they were doing some assembly.
Ms. Dacy stated that they would have an auditorium.
Mr. Commers asked if there was a way to expand the project area in this district.
Mr. Casserly stated that they would not be able to expand the district.
Mr. Commers asked if the funds generated on the tax increment side of this project will
have to be spent within the district.
Mr. Casserly stated that they will have to be spent within the district, or spent on the
special legislation authorizing very specific kinds of things. In addition, administrative
expenses are pooled, so for those amounts that can be allocated in the program, this
district could be a source for the administrative expenses.
Mr. Commers asked what fund the administrative receipts go into.
Ms. Dacy stated that the administrative fees go into the tax increment district where they
have created a fund. They will have to make some fund transfers and keep track of the
source. The land sale payments would be reflected in the revenue of that particular
fund for District 6.
Mr. Casserly suggested that those can be spent outside the district so they would
probably need to establish some kind of internal tracking mechanism.
Mr. Commers stated his concern is how they reflect the moneys that they are getting for
administrative expenses. He understands that they can be used any place they want.
What fund are they putting them into and how are they reflected in the budget?
HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 4, 1999 PAGE 7
Ms. Dacy stated that the term "administrative expenses" has a broad definition in terms
of the TIF Statute. They do not have a revenue line item that specifies administrative
expenses, because administrative expenses can be all kinds of across line items in the
specific budget sheet.
Mr. Commers stated they have been getting administrative expenses for some time.
How much has been collected and has it just gone into the general account?
Ms. Dacy stated that up until this year they have not had to track by district. They had
one operating fund for all of the districts. This year they had to establish a tracking
system. They can probably go back and identify that number and answer that question,
but it may take some time.
Mr. Casserly stated that the HRH's annual administrative expenses have exceeded the
percentage that was authorized. They have been taking the portion that they can take
out the tax increment, and that portion that they cannot take has been coming from the
General Fund. You can only take up to 10% administrative expenses or 10% of the
increment generated.
Mr. Commers stated that he wants to find out where that money is going, because they
pay the general administrative expenses monthly to the City out of the General Fund.
How do these administrative moneys get into that General Fund to reimburse the HRA
for those expenses?
Mr. Casserly stated that they would have been pooled and integrated. They were
essentially operating with a unified fund. The City is now tracking them all individually
by district.
Mr. Commers asked Ms. Vogel where the money goes.
Ms. Vogel stated that with Ellers and Associates, they have gone back through the last
20 years and looked at the TIF District and looked at the charges. They have taken all
of the non -TIF revenues out of the TIF fund and put the non -TIF money into the General
Fund. That is why they have a good fund balance in the General Fund to be able to use
for administrative expenses. They are going to be incorporating a program that will be
charged to the specific TIF District based on where they spend their time. They can
spend up to 5% of the total TIF expenditures and a 10% for all of the other districts.
She has looked at the larger TIF districts. Districts 2 and 3 are well under the 5%
limitation of what they have in those districts. Those will expire in a couple of years.
They will hopefully try to charge for administrative expenses to those districts.
Mr. Commers asked why that was necessary if, overall, they are spending more than
they are reflecting and why do they have to track it to a district.
Ms. Vogel stated they do not charge as much for administrative expenses as 10%
allows for TIF districts.
Mr. Commers stated he thought they were charging the maximum
HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 4, 1999 PAGE 8
Ms. Vogel stated that she did not think it was being charged out that way, because the
districts have not been segregated out each year the way they are now.
Ms. Gabel asked if there was so much more available.
Mr. Casserly stated that they had to look at cash flows. They need to look at potential
revenue through the years. They have been reluctant to show some of that because
they have not been sure this project would proceed until last June.
Mr. Commers stated that he thought they also accumulated administrative expenses
overall of the other projects, and he thought they were taking the maximum every time.
Ms. Vogel stated that you cannot just take the 10% of increment received. You have to
show actual expenditures for that.
Mr. Commers stated that if you can pool it and use it anywhere and, over all their
expenses exceed that 10 %, then why worry about tracking in one district. If one district
is 5 %; but they make it up in some other district and use the funds in another district, he
does not see why it makes any difference.
Mr. Casserly stated that this is simply a State Auditor presentation of how they have to
proceed. He interprets that Program expenses have to be charged into the specific
district. In the aggregate they are not going to be able to exceed 10 %. In previous
years they pooled all of their resources and did not have to do this. He does not think
they will be short any funds and it is just a matter of tracking.
Mr. Commers stated they have $519,000 worth of administrative fees for the year 2000.
They must be able to make a specific calculation for the 10% tax increment that they will
be bringing in this year to offset that.
Mr. Casserly stated that they are really dealing with the limitation of 10% of the available
increment that can be used for administrative expenses. If the administrative expenses
are greater than that, it has to be paid out of whatever resources they have available.
He believes that the administrative fees have exceeded the limitation the past number
of years. It has never been a major concern because of the unencumbered funds
available.
Mr. Commers stated that 10% of the total tax increment district would be $300,000, and
asked if that would be shown in the budget.
Ms. Dacy stated that it is not. The total revenues and types of resources and
expenditures by category is shown. They have created an operating budget so they
can make sense out of it. The Auditor's office is requiring a different set of accounting.
The City is doing a budget for the City and also must tell the Auditors office what they
spend.
Ms. Vogel stated that it is a confusing thing, especially with the language from the State
Auditors office.
�r
'A HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 4, 1999 PAGE 9
MOTION by Ms. Schnabel, seconded by Ms. Gabel, to table the Resolution Authorizing
Amendment to Development Contract, Medtronic, Inc., until the December meeting.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
9. YEAR 2000 BUDGET:
Ms. Dacy stated that the HRA approved the 1999 budget at the October meeting. There
are a number of summary sheets in the packets for the HRA, and funds have been
created for each of the Tax Increment Districts and the Housing activities. A General
Fund was created for the HRA for non -tax increment types of revenue. Next year, they
are projecting that they will receive about $4,000,000 in revenues. They are projecting
about $1,600,000 in expenditures. In addition, there will be slightly less than
$1,000,000 in debt service. They are projecting a year end fund balance of
$11,300,000.
Ms. Dacy stated the General Fund will provide the sources of funds for the Housing
Programs or other types of expenditures now or in the future. Charges will be charged
to each individual tax increment district fund. There are 17 tax increment districts with
four being inactive. Thirteen range from 2-4 acres in size. The Housing Replacement
District is authorized by state taxes. They want to continue the Revolving Loan
Program, the Hyde Park Rehabilitation Programs, the Remodeling Fair, contract with
CEE, and continue the Scattered Site Acquisition Program. Some minor expenditures
include a potential idea of a 'Welcome to Fridley' sign at Christenson Crossing. The
acquisition expenditure for the Gateway East project will be wrapped up in 1999. They
anticipate expenditures next year with the relocation costs, demolition costs and
potentially they may even finish the demolition earlier.
Ms. Dacy stated staff recommends approval of the 2000 budget. Additional significant
expenditures other than the routine administrative activities will be brought for approval.
Next year, the City will have completed its Comprehensive Plan. Drafts will be in the
packets for the next month. There are also minor corrections to the Housing Fund.
Mr. Commers stated that after all of the operating expenses and debt service, they have
$1,500,000 to spend on various programs in the year 2000.
Ms. Dacy stated that was the annual calculation; but in addition to that, they have the
fund balance.
Mr. Commers stated that in other words, if they just break even next year of what they
are bringing in versus what they are spending, they have $1,500,00 to spend on the
programs if they do not go into their reserve.
Ms. Vogel stated that is correct.
Mr. Commers asked how much the budget proposes that they spend on programs.
a.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 4, 1999 PAGE 10
Ms. Dacy stated that from the $1,600,000 total from the total expenditures, $300,000 of
that $1,600,000 is for the Scattered Site Program. The Housing Rehab Programs are
also in addition to that. The Capital Outlay section of that $1,600,000 pertains to the
Gateway East expenditures and pay -as- you -go payments.
Mr. Commers asked for clarification.
Ms. Dacy stated that the $1,600,000 is including those programs. The CEE contract is
included in that as well.
Mr. Commers asked where that was reflected in the budget on page 1.
Ms. Dacy stated that should be part of Capital Outlay and Total Tax Increments
Districts.
Mr. Femelius stated that would be under Capital Outlay 4510 Land. $459,000 with
$300,000 of that would be coming from the Housing Replacement Program.
Ms. Dacy stated that page 9 describes expenditures and revenues for each of the tax
increment districts.
Mr. Commers stated that the programs that are included in the budget are the Housing
Operation, the other housing programs, the Revolving Loan Fund, and the Housing
Replacement Program.
Mr. Commers asked where the Gateway Program is.
Ms. Dacy stated that is on page 26 and programmed to be a tax increment district.
MOTION by Mr. Meyer, seconded by Ms. Gabel, to approve the Year 2000 Budget.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED
THE MOTION CARRIED UNANIMOUSLY.
Mr. Commers thanked Staff for the information.
10. CONSIDER ACQUISTION OF 6175 EAST RIVER ROAD:
Ms. Dacy stated that this item was removed from the Consent Agenda and placed on
the Action Items.
Mr. Femelius stated this property is located on East River Road at the comer of 61St
Way. The property is very small, a one -story house built in 1948. It has two bedrooms,
one bath, and a single car garage. The total square footage is 616 square feet. The lot
is 60 feet by 126 feet. It was platted before 1950 and is considered a conforming lot.
They could sell it as a buildable lot. The property was inspected by the appraiser, Paul
Schwartz, as well as the City's Chief Building Official. They noticed substandard
conditions. One of the critical things for a property to qualify for this program is that all
of the defects in the property have a cost of repair that exceeds over 15% of the value
HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 4, 1999 PAGE 11
of the structure. Based on the analysis of the appraiser, the cost to improve this
property would be well over $20,000. This clearly meets the criteria of the Scattered
Site Program. It is extremely visible in the area and acquiring this property meets a
number of objectives. This would improve the streetscape along East River Road. The
appraisal amount came in at $74,000. That amount was offered to the owner. They
hired Wilson Development Services to help them in negotiating a number of
acquisitions. They met with the property owner and presented the appraisal as the
offered amount being $74,000. Staff recommends approval of the acquisition.
Ms. Gabel stated that she did not expect something of that size with that many
problems to be appraised at $74,000.
Mr. Femelius stated that when the appraiser looks at these properties, they are always
using comparables. They look at three other properties that have sold within the recent
time period and make adjustments based on the condition of the property and reconcile
all of those figures to come up with what they believe is the final market value. The
market is strong with a high demand for properties. People are paying premiums for
properties that are substandard.
Mr. Commers asked if the $74,000 is after $20,000 of improvements have been made
to the property.
Mr. Femelius stated that the $74,000 appraised price is before improvements have
been made.
Mr. McFarland asked if it would be worth $94,000 after improvements have been made.
Mr. Fernelius stated the analysis that is done for the Scattered Site Program is different
in terms of how they look at it for appraisal purposes. In theory, no two properties are
exactly identical. They make adjustments based on the condition of the property. The
analysis for purposes of the program is done in terms of what they believe it would cost
to upgrade this structure.
Ms. Schnabel stated that looking at the appraised value and then the square footage, it
calculates to $120 per square foot and she feels that is not worth that kind of money in
that condition.
Ms. Schnabel asked if they have only had one appraisal done and have they used the
same appraiser in the past.
Mr. Femelius stated that they have had only appraisal This is an appraiser they have
used in at least a dozen times on other properties, and he feels they are competent
appraisers.
Ms. Gabel stated that unfortunately she feels the appraisal may be accurate. She has a
friend who is a realtor, and she tells her that these smaller types of homes have people
outbidding each other. Some are getting more than the original asking prices and that
is probably what is driving this.
•
HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 4, 1999 PAGE 12
Mr. Meyer stated that it seems to him if the market is so over - inflated, they should hold
tight and let the folks stay with the house and wait until the market cools down for a year
or two or three. They will have to put in about $80,000 cash with demolition costs to a
residence that needs another $20,000 to come up to code.
Mr. Commers asked why they selected this house.
Mr. Femelius stated that this property was identified by a number of means. City staff
and the appraiser in doing recent windshield surveys identified this. There was some
analysis done at one point of the East River Road Corridor, and this property came up.
They have been aware of it for awhile and given their recent interest in trying to utilize
as much of those funds as possible, this site became one of the properties they took a
hard look at. This is not the only site being considered.
Mr. Commers asked if this was involved in the tax increment transfer money.
Ms. Dacy stated that some of the Scattered Site Acquisition Programs are funded by
that source of funds.
Ms. Schnabel stated that Mr. Femelius will be bringing other sites to the December
meeting for consideration.
Ms. Dacy stated that the Scattered Site Acquisitions brought to the HRA would be
funded by that source of funds. Next year's and this years budget does have $300,000
to allocate each year, but that would then come out of the General fund.
Mr. Commers asked Ms. Dacy how much they have left out of the special arrangement.
Ms. Dacy stated they had budgeted approximately $400,000 for Scattered Site
Acquisitions. It does not look like they may be acquiring the Nelson property prior to the
end of the year. They are evaluating other options for the use of those funds as well.
Ms. Gabel asked if they should discuss this at the next meeting.
Mr. Femelius stated that they could table this until the next meeting so they can also
evaluate whatever acquisitions they bring back all at once and prioritize them.
Mr. McFarland stated that they may have the same problems on all of the other sites.
Mr. Femelius stated that potentially they would be faced with the same question on
each one of them.
Ms. Dacy stressed that the funds are an issue, but it is a secondary issue to the goal of
the program. The goal was to identify the houses that did have substandard conditions,
and they are trying to achieve that program. The value is higher than what they have
paid in the past, but they really are at a crossroads. The economy has a double -edged
sword. They are trying to remove substandard housing and replace it with new housing
and jump -start the neighborhoods.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 4, 1999 PAGE 14
Ms. Gabel pointed out that Ms. Dacy and the City of Fridley were recognized for
Community Building and won an NLC Award for submitting "A Planbook for Post World
War II Houses" which was recorded in the Nation's Cities Weekly.
Ms. Dacy thanked the HRA and stated that she had a lot of help.
Mr. Commers stated that she has developed a lot of expertise over the years, all to their
benefit, and thanked her.
ADJOURNMENT:
MOTION by Mr. McFarland, seconded by Mr. Meyer, to adjourn the meeting.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON SCHNABEL DECLARED
THE MOTION CARRIED AND MEETING OF THE HOUSING AND
REDEVELOPMENT AUTHORITY WAS ADJOURNED AT 9:12 P.M.
Respectfully submitted,
r
Signif L. Johnso QY4
ReccTrding Secretary
IL
Memo to: Barbara J. Dacy, Director of Community Development
From: Sara S. Hill, Director of Human Resources L �'
O
Subject: Resolution Authorizing Pay Increase for HRA Employees
Date: November 22, 1999
My sincere apologies for the mix -up on mileage reimbursement on the original
resolution. The amount has been changed three times over the last 1 1/2 years and we
apologize for not presenting you with the most recent rate.
The amount for the year 2000, as it stands now, is $31 per mile. Please note the
change on the new resolution. Please present this resolution to the HRA at your next
meeting.
Thank you for your attention to this matter.
`I
RESOLUTION NO. HRA -1999
A RESOLUTION AUTHORIZING AN INCREASE IN
COMPENSATION FOR FRIDLEY HOUSING AND
REDEVELOPMENT EMPLOYEES FOR THE 2000
CALENDAR YEAR
WHEREAS, it is the intention of the Fridley Housing and Redevelopment Authority (the
"Authority ") to provide fair and equitable compensation to Employees within budgetary
constraints; and
WHEREAS, the Authority intends to comply with the Minnesota Local Government Pay Equity
Act; and
WHEREAS, staff of the City of Fridley has reviewed the Authority's financial position as well
as economic indicators and compensation adjustments by comparable employers; and
WHEREAS, an adjustment of employee salaries and benefits is warranted.
NOW, THEREFORE, BE IT RESOLVED, by the Fridley Housing and Redevelopment
Authority that the following adjustments be authorized for employees of the Authority, with the
exception of employees who are members of a bargaining unit, effective January 1, 2000.
1. A general increase of 3.0 percent in employee salaries.
2. Mileage reimbursement at the rate of $0.31 per mile.
3. Other benefits as promulgated by the City Council for 2000.
PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT
AUTHORITY OF THE CITY OF FRIDLEY THIS DAY OF '1999.
LAWRENCE R. COMMERS — CHAIRPERSON
ATTEST:
WILLIAM W. BURNS, EXECUTIVE DIRECTOR
HOUSING & REDEVELOPMENT
AUTHORITY UK
Memorandum aw
FMN%
DATE: December 3, 1999 p�
TO: William W. Burns, Executive Director of HRA 4jii�`
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Acceptance of Appraisals for Gateway East Project
At their November 4, 1999 meeting the HRA authorized the acquisition of the Valvoline,
Miller and Fogarty properties by condemnation. The good news is that we have
successfully negotiated an agreement with Bill Fogarty to purchase his property and
avoid condemnation. The bad news is that we haven't made much progress on the
other two sites.
Richard Miller who owns the vacant lot between JR's Automotive and the Fogarty
duplex has been unresponsive to our numerous attempts to contact him. He lives in
Florida, which has made communications difficult. Based on these circumstances,
condemnation is our only option.
With regard to the Valvoline site, we did meet with representatives from Ashland Oil
(parent company) in mid - October and reviewed our appraisal information. They also
had an appraisal done which determined the value to be approximately $25,000 higher
than our report. Due to the wide disparity in values we believe it is prudent to proceed
with condemnation as well.
Fritz Knaak has drafted most of the documents to initiate a "quick take" condemnation
and has already served notice to the affected property owners. However, before he
files the petitions with the Court, there are a couple of administrative procedures that
the HRA must take.
First, the HRA must accept the appraisals and second authorize the payment and
deposit of funds with Court. Copies of each appraisal and a site map are also attached
showing the location of the parcels.
z
the Subject Property. Seller has made "due inquiry" pursuant hereto only in those circumstances
where Seller had either been notified of or formed a belief that circumstances existed or are
likely to exist on any portions of the Property which would cause a violation of these
representations.
Buyer and its agents shall have the right to enter into the Property for the purposes of
making soil tests and such other physical inspections and investigations as Buyer deems
necessary; provided, however, that Buyer shall not interfere with the operation of the Seller's
business conducted upon the Property and, provided further, that Buyer shall indemnify and hold
Seller harmless from all liabilities arising from entry upon or testing of the Property, including
but not limited to liabilities arising from mechanic's, materialmen's or other liens filed against the
Property connection with work performed or material furnished by or at the direction of Buyer.
11. Risk of Loss
If there is any loss or damage to the Property between the date hereof and the
Possession Date, for any reason including fire, vandalism, flood, earthquake, or act of God, the
risk of loss shall be on Seller.
12. Time of Essence
Time is of the essence in this Agreement.
13. Well Disclosure
Buyer acknowledges receipt of a well disclosure statement from Seller attached as
Exhibit B to this Agreement.
14. Individual Sewage Treatment System Disclosure
Seller discloses that there is not an- individual sewage treatment system on or
serving the Property.
15. Right of Entry
Buyer and its duly authorized agents shall have the right during the period from
the date of this Agreement to Date of Closing, and thereafter in accordance with the Escrow
Agreement, to enter in and upon the Property in order to make, at Buyer's expenses, surveys,
measurements, wetland delineations, soil tests, and other tests that Buyer shall deem necessary.
Buyer agrees to restore any resulting damage to the Property and to indemnify, hold harmless
and defend Seller from any and all claims by third persons of any nature whatsoever arising from
Buyer's rights of entry hereunder, including all actions, suits, . proceedings, demands,
assessments, costs, expenses and attorneys' fees.
5
Gateway East Memo
December 3, 1999
Page 2
Funds for the condemnation will be charged to one of the gap year districts ( #2 or #3).
Recommendation
Staff recommends that the Authority accept the appraised amounts for the Gateway
East properties shown on the next page. In addition, staff recommends that the
Authority approve the expenditure of funds to be deposited with the Court.
Property: Vacant Lot
Owner: Richard Miller
Address: No Address
Legal Description: Lots 4 and 5, Block 3, City View Addition (23- 30- 24-24 -0074)
Lot 6, Block 3, City View Addition (23 -30 -24-24 -0075)
Appraised Value: $27,000
Property: Vacant Lot
Owner: Valvoline Instant Oil Change
Address: 348 - 57"' Avenue
Legal Description: Lots 5, 6 and 7, Block 6, City View Addition (23- 30- 24-24-
0101)
Appraised Value: $35,000
M -99 -286
l
C
rl 1 I
1 1
OO
,11<
O
n+
r
r
r
r
OO
99
O
o
111
m
In
m
' H '
O N
e
N
m
00
O
O
O
W I M 1
1-I r
N
N
r1 r1
N
o
V,
1 ,
N N
o
1
1 ,
1 ,
1 1
1 I
1 1
1 ,
1 1
1 1
W i
e.ono
C
In
0
0
0
o
O
va
01
In
o
ails
O
t�
0 0000
O1
ri
rl
O
O
O
O
r/ N
N
c
0
O ri ey
O
'1
O O O O O
.
.
.
.
.
.
.
r .
.
.
.
. rr
.
r
►,My
NN PI
111
111
111
O
O
O
O
NN
01
w
Ol
ON N
O
N
In NO NI
b
rl
�O
O
1 n1
O
N
Y1
O
O
m
m
O1
01
%a
%5
N N N N
'ar'1
ei
m
1q
M
YI
N
N
N
1n
10
in en In 1�1
1 W 1
, a 1
m m
•• rl
00
rl
m as
au
1 1
1
1 1
I 1
I ,
1 1
I I
I 1
1 I
1 1
'
1 1
1 1
1 1
1 1
w
M
\ 111
1 1
F� 1
V
p
F
to
FO
F
1Zi
C7
F
O
W
F
F
F
U
F
dl
F
;
Q
w\
Ol 0
F N S M M M
M ,
a z l
w
0
a
W
a
a
K 1�1
a
>
a
w W
d W W
a
O
a W g
a a a a
, 1
W
�
y
Iw -Iz7U„
M
a l
Q w
H
aw
'
aoQZ
IWn
IU1
W W W W
a\
� cli Q i
"lus$
a
�ro
uult
W
w
m
p°c.zi
a
aa
a0aaa0a0
W1
1
MO
�.0
o
o
o
r
oo
000
0
0000
1 1
1 1 1
1
.a
1
111
1
V1 111
1+1
m
Ilf 111 111
111
rl 'i
, I
N N N
N
u1
111
1 1
111 M
1
111
1 1 1
PI
1
1 1 1 1
' '
000
0
0
0
00
o
1+1 I+1
aoo
I+1
0
N W N N
0000
coo
0
0
0
00
0
coo
0
Coco
1 I
111 111 m
M
M
111
M In
MO
11, in "
M
111 111 M M
a
000
0
o000
1 1
000
0
0
0
00
1
0
1 1 1
coo
1
0
1 1 1 1
Coco
1
000
0
0
0
00
0
coo
0
Coco
1 01
1 �zi
000
Coo
0
0
o
0
O
0
o0
00
0
0
coo
coo
0
0
Coco
Coco
O1
In
O
r r
N
1 1 1
o N IV
1
ri
1 1 1 1
N N N N
'
coo o
COO
,0
In
O
%0%9
N
0 10N
O
Y1NN0
1 1
1 1
N YI N
v
o
rl
N N
o
rl o a
In
o 0 o v
1 ,
(tj ,
'.7
01 01 01
m
01
O1
01 01
01
01 01 Of
01
01 01 01 01
1
Q w 1
01 0% 0,
0, a0,
th
0,
01
01
01 01
01
01 01 01
O1
at O1 01 01
I \ F 1
N N N
rl
0,
rl
0,
N
. 0, a
rl rl
O,
ei
01 01 0,
0,
rl
0, 04 01 01
H r1 N r1
1 Q 1
1 w 1
c o o
coo 0
0
O
U
M ri
O
z\
0
\
0 0 0
a\\
0
\
0 0 0 0
z\\\
O
\
C o Coco
\\\\
I 1
N N N
N
M ry
N
M N N
N
M N N N
N
U NNN N
(ti 1 I
rl rl rl
rl
r�
rl
ri rl
rl
ri ri ri
r/
z
.µZ7'.711 1
U
H
N
1 1
µ7
W
1 a 1
N
w
w
u
u
III qq 1 1
Illo rl
0 0 111
~w O
1+,
0
Mu
a' `
(t�
10
mr,0r
07
~`010,0 m
'yWy.�
°0
a o
1+1
0
/.,
0
mom
0 0
a /11
0
f M c O
0 0 0
O
10
p: Hl 111 V1 0
a o 0 0 0
C 1Z; 1
0 0
uo
O O
V0
0
x2 G
W0
c 0
000
0
O O O
Zcoo
O
3o
,Wt 0000
m 1 '
GOO
w0
R
W
µ0000
1T
\ a C7 l a 1
of
U
O
02
p6
IFt0
w
y
z
rl m z 1
W
'ay�
E�i
a: in a 11Dn ,n
N 8.'] ' 9 1
6 B, 1 1
R MIl1
Q��d
R
W
�7a1
U
��+Ty71
V
p
U
ya
W
O
k'
ON 44 NCq
wIy
rl
/ ,
W aM
II.•
ri ly r,l
'((�'II t
W
W
Coco
� OU
, zH 1
ryx
.+►+or
0,
111
co
rr
ob
In ,O V1m
rII"
C00100,q 001
1 1, 1 00 1
aU0 1 q>,7. ,
14 coin
olr.ym
rIN
HLn
o.y
rI
Nrt
o0
or
11101
010
r10%In
MLnrr
o1n 111
C.4 %D
111N
oN
oa%rr
u110NU1
0,0,010
r4 (4
,0r
oN
N , 1 1 1
,0 aaa
oE+E+F �!
W w 1 ,(ir77,z 1
owo Ln
00
0
Om
o 00
0H
orl 11M
C,
oNt00 W
a a 0 1 MJ 1
0
0
0
0
0
0
0
o
O
as 1 1
0
0
0
0
0
C
0
0
0
N 1
1
1
I
i
.171 1
W I
W I
N i
Ov 10 W v MN
910 O N 10
N N VI
Ov r 0)NN VI co
O H a1r Nb1DN
O M O .,VW
01
VI
r
O
N
O
O
o
O
N
O
O
O
O
N
0070 W
O . O O!
ONON
NN U1 M
N N
w
r
N
N
M
WI
1
I
O N N
W
@
v
I
I
1
1
1
1
1
1
1
1
I
I
I
1
1
1
1
1
I
1
1
W 1
1
1
M 1
O 1
00
00
. .
N UI
N N
M M
O
0
O
N
D1
N N N N N N N N
r r r r r r r r
MN.1.1M N. M
rrrrrrrr
N N N N N N N N
C
0
M
r
N
r
N
O
0
m m OI T
r r r r
Mw.1.i
rrrr
N N N N
O
O
•
o 0
00
00
m1D
rl O
0
O
O
v
N
0 0
00
. .
0] N
01M
YI YI
0
O
.
O
M
N
cc O
00 O
. .
v v O
M y r
YI O M
a
~
4e ac ae #
7C 7R 7C 940
M .1
v
Q 110.1
V
m N M
1
1
1
i
I
1
1
1
1
1
1
1
I
1
1
1
F 1
a
ch
> e1 1
o�
94.1 1
940 1
aN
W M 1
w 1
1
1
1
1
z
H�
F�
94 1
w1
F D: 1
M(j 1
1
W W
q
1
W W
1.� a
4 1S
W W
HM
9
as
44
F N
FF
11Ga
[1�w
as
00
94 94
«
F
O
E
o
>
X %
�D�wuxifAaaa
annnn'r�'r 'r�
•+zzzz
m Ir ►+ 1-1 ►I F F F
FEF FI-1 Hw
.Tiggg gww W
Ea aaa���
a0000mmm
FFFFFFFF
a a a a a a a a
wwwwwwww
41 U11q 0%mfq (q (i1
1 1 1 1 1 1
iat ^%�1a.�71 �Jj�1 �%j�I .^��71 �1
77ij Fj COj jij i0j
«
E
O
F
a
x
ca
W
a
Iq
1t
0
a
n
H
H
w
0
«
a
4
F
O
F
a
1
>
�MM�
0000
E>:El
pppp
W W W W
ada°
wwww
wwww
QgQq
11 I 1
aaaa
0000
a 940
�''�1
•
�
F
O
F
a
I
�.1
£
a s
941
�+t
9494
w w
m m
«
a
4
F
O
F
a
��..11 �(r.1
S£
a s
9494
w w
m m
F
O
F
a
�.1 F
£ O
a s F
a
9494
w W >
0 m
Q 1
HC^ 1
Wz 1
1
W 1
a 1
W 1
1
1
1
1
1
1
I
1
1
1
1
1
1
1
1
1
1
I
I
I
I
p O 1
U Z.
CJ 1
U 1
1
1
O O
N1-I
1 1
YI YI
V v
..
00
MM
vv
1 1
O O
O O
00
00
1 1
NN
N111
vv1111IrI
r O N N 10 .1 0 o
O N MMMO 00
1 1 1 1 1 1 1 1
MA M 0
M M
v VlvvvrlNei
........
0 0 0 0 0 01 01 01
MMMMMI -I ri 1-1
ii ii 1TNNN
1 1 1 1 1 1 1 1
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
1 1 1 1 1 1 1 1
00 o OONN N
0000 0www
rINNN
O
O
1
O
O
.
r
N
N
1
O
O
O
0
1
r
1D
N
Coco
0000
1 1 1 1
r r r r
NeiN�
....
01 01 01 m
M H r4 rl
NNNN
1 1 1 1
0 0 0 0
O
0000 0 0 0
0000
coo
1 1 1 1
N NN N
101010 b
NNNN
O O
NN
1 1
M M
V1 VI
..
cc
MM
V� V1
1 1
00
O O
00
0 0
1 1
.1N
YIN
as
cc
1(11!1
1 1
MM
V1v
..
cc
MM
v V1
1 1
cc
O O
cc
0 0
1 1
.i N
N 111
vv
cc
W W
1 1
MM
V�v
..
cc
MM
v V1
1 1
cc
O O
cc
0 0
1 1
.i eV
NN
v
1
1
1
1
1
I
1
I
I
1
1
r a i
.O.1
01 W`� 1
N w 1
M 1
M WI
W
ai£p
01 Q 11y'
dh i z
a r i a
0 Q I z l�
\�y
1N-1
x l
O
94'94 1 '80
O
W N I >WZ
a s 1
a s 1
I
(a 1
Q W 1
E 1
uq I
W I
C1 1
1
I
00 �
W z
1
a 1
W I
w�1101
V z 1
1
o I
D
I
1
1
1
>z 1
1Z 1
M I
1
m01
01 m
01 01
H ri
r1 ei
o0
UNN
N ri 1-1
01
W
~!�`NM
Wvv
avv
0.00
4'00
y. 00
W M r
aMV
O NM
NN
0 o
000f10O11
N 1
o W a
oFF
O W W
O
0
mm m m mm mO1
m m m m m m m m
m m m 01 m m m m
M M H M M M H M
ei1- 11.11.1 ei e-1 r-1 ei
COOOOOOO
NNNNNNNN
.�.i NN e1 .i N1-1
o
010.1 NM�U11D
y10MMA 'iNNM
Fvvvvavvv
I-I 0 0 0 0 0 000
u0000ccoo
0 0000000
Q aaaa 1. a a a a
►!aaaa 949494
94 m11� Maw
ppr� pp,� pa; pp,� Mp�Mp�Ma
F
E F E a F F E F
MOOOOdOOO'
N
1D
/0999999 W 9
OMMMM MMMM
O
0
M
m
01
fsq ri
aei
940
z�jN
O4 ei
17
z
112
or
x.1
v
1� O
D:0
x o
q
1(.�
r
N
10
om
O
O
0
m mm m
01 O1 01 01
01 01 01 01
.i ri ri ri
��
1.1 eiMM
Coco
fANNNN
1e7.1 M ri ri
H
�.cy
W
aNMv YI
MNNNN
Fvvvv
0 0 0 0
940000
0 0 0 0
u yyy
z f.1
iWi �`
2000
0'E SSE
O
OIW ww W
OWN W W
O Q Q g Q
O
O
01m
D1 01
M 01
.i ri
��
MeiM
moo
eR��
NN
FN N
M
q
a
y8
U ?111
W vv
vv
0 0
�00
"e(WW� 0 0
w a a
�NN
MM
Mel r1
11
O1FF
o W W
O.i ri
O
0
mm
01 m
01 01
e1 H
��
aeiM
.100
Y6NN
NN
[r .1 v1
M
Q
9494
'y8
u10r
W vv
av
0 0
�00
WW 0 0
w a a
�NN
��
v.1 '1
1-1
oNtn
CM ri
O
0
01m
01 D1
m 01
'1 ri
54
10 eiM
.100
7C��
NN
Fei 11
H
Q
fya�
8
600%
W
vv
0 0
Ho
0 0
w a a
�NN
��
101'11'1
.1
CMM
0 A
O
0
N1
M
0
.1
0
O
3
S
si.
1 Q 1 O O O l� l.
1 (^,Nt7 1 O O O YI Ifl
1
in O in N N
1 dl 1 N O N N N
W 1 M 1 m N V� M M
tl 1 1 1
a• 1 1 r♦
1
1 1
1 I
I 1 �
1 I
1 1
1 1
1 1
1 1
1 W "" 000Lnlnln00 " r- cc 0 O o OM M a 0 Ow w w w
1 1 m m Mriol�MNmo " rl00 .l o " " ot� n .+ o ram o r e•
1 iiC�,} 1 N N w VIOMw'i ln0 1� N NY1 N O N N V m N N N N P
M 1 w w t VmMAaQw O l�N O w w N V L mM M
VI r'1 1` ri M N M VW 1` Q V m In " w M m s! " O
1 W 1 OMF ri."I .+ m « » » N N "
1 a 1 am as v.
u u u
1 1
1 1
1 1
1 1
1 1
1 1
1 I
I I
I I
a CA w z w
,w.l . a . q F � .aa •aa W '.� iC sa ��.1 .a o .a
to F w O "� M "4 F F W E KW F r4 F a F
O F MH N fk\q E
1 I F O "O 4aF0 ORy
F i 1 p F a 3 y E E 0 H 4 F o~o H
" 1 W U F,2 a Z W H W F h
M 1 1 a' y Itt 1"1 a s O .-1 .� fOKC a a Cd W W 0. N a' U W tti
W W p h
W W � Z � ►+
> N 4 1 1 1 1 WWW> U
0\ 1 (LyM l a4 > > "ytl MM a tltl (Y.
a\ r�N �W7 aaaaaaaa !ppq,,!;!gy �� a NM kU/
w'' q a 00000000 Ii1QKx 44 a E£
1 I
pi i o 0000c000 0 0 0 0 0- 00 0 00 CO
M I 1 O M M M M M M M M M M M H M M" O V• V M
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
M" M "" N M M M
1 I w aaaveaaa aaaa a as o of al O
C4 co0o00co Coco 0 00 an o0 0
W 1 1 w mm M M M M M M M M M M M M M �f M M M
1 1 M aavavvvv v7 d�v a vv N 1 v V• V
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
ocO000 0000 0 0o 0 00 0
1 l 0 00000c0c00 0000 0 00 0 00 0
1 pl o Ooacc000 cooa 0 00 0 00 0
1 p55a; 1 0 00000000 0000 0 00 0 00 0
1 U 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I
1 U 1 O O N " mw wm N N in in a In Nm N In0 In
O ON" "w w w0 "111 "0 " "w w NO "
1 1 1.1 ri V V VI VI VI Q" Q V Q" 10 V V N V• " O
1 1
I 1
1 1 m malanmmalmm mmmm m man m at at m
m mmmmmmmm (�mmmm m mm m mm m
1 qWl m mmmmmmmm Ammmm 2m mm m mm m
1 \ F 1 ei rA ri .� ri ri ri .� .i ►a ri .� '+ N W .i r1
1 A•i 1 \ \\ \\\\\\ \\\\
ad\ \\ \ \\ \
1 u q 1 r• ri ri ri rl r♦ ri ri ri ri ri IH r1 0 rl ri ri ri N ri ri
1 W 1 O 0 cc 0 0 0 0 0 a 4 Coco (-7 O 00 0 0 0 0
\ \\ \ \\ \
1 1 N N N N N N N N N N N N N M N N N N N N N
.. r+ ra ri .ti ri ri ra r+
i 1 ' z
Fi al1 z Is L. \ Q w o
m jt� 1 1 rPj
o a ei N M F V• " w m g m m 0 ei a M N 'a w
M 1 W 1 " N " " " "" "" WrINwN w Mww i4N ww w
rl ® 1 0 1 a taaaaaaaaa a,aaaa a UVIa Wv A,' -0-0
a`� 1 554 1 .7o 00000000 Coco 0 00 qo aoo a0
.7 1 0 a� 0 o C O o 0 o o W coo o lor,
o w o 0 0 0 0 6'
a� 1 O 1 0
00000000 F O o 0 o O o moo A o 0 0 0
1 0 4 x a o
,m, � x> w x z w
.\-1 th i S i r7N " x W w pj wm
W$ WW M m
NITG"a > AGE. N .3 5~E03 2N
uuuuuuu u
�Wa7 pp4: ap� p� pp4: pyy. {{�� N N ��C1 O
0 U 1 M M 1'7 h h rJ h r7 h N m V• 111 W V' m M O O Q all m Vl a
zN 1 O H Hri ri H r1 ri ra ra Cm00 O v ri c0 r♦ N 00
1I��Ri 1►►711 1 OO 1 ri ei P l� [� l� a� Ply P NriC4 NO NN rl M> M "M VIO
agQ 1 >Z 1 ri - " " " """"" riCOOM No r+OO 2O raNN raM
00 Om mm mmm mm om 'n 0%%D oM 0co CZ 000 ON
a ap 0 0 0 0 0
W ~ O O OO 0 0 0 O 0
a 1
1
�
N
N O
o
In %o a
In
11 w
I
a
a o
0
i
1
1
1
m
m o
o
Invr
m
am
►V
v o
o
m r w
A
N In
m %o .1
r
O q
ri
.
.i
q 0
1
1
1
1
1
N
1
1
1
1
1
1
1
'
W
Ln
r
o 0
N N
o mm
m co
o
a
1
1
rr
O
O
O
N
N
In
N N N N
N
1
r
N
r
YI
m
!
1
i
1
cm
yR
« ..
># VQ YE
N
1
,
lull
N
1
1
1
1
1
I
1
1
1
1
1
1
1
1
1
1
1
•
•
•
1
1
g
Upaw!
N ry
tAi
W«
f" i
i
•�I�'±i
F
IIIpJJJ
pp
F
N
H rA
rA
q
F WOW
i
a '
CK
ad
U
a SL,
Ch 1
O I
gg
M
q
°'
M 1
I
O
n
C
ad
°z °z°
°x'o
ggH
z
aa>
z
.�
a �
a.
H 1
Ir U 1
p
z
O\ 1
Ic N 1
H 1
p7 1
Ma
O
["
e1 1
4
. 0
i
n
I
w
1
a
aaa
1
O '
~ '
1
'
0
0
0
coo
�i of 1
1
/�i'
m
M
O O O
In
fn
1^
rl m Q
1
1
0 0
1
1
O
O
O
. . .
at q q
'
i
'
a
N
N N
O
G
1
O
1 1 1
coo
'
o
coo
'
'
�z�
c
c
o
o
000
1
i
U 1
a
1
m
m
coo
1 1 1
ewe
m
1'nn
1
1
v
a
N N N
1
1
1
1
I
at
q
q
q q q
in
q
q q q
W ,
0
0
O
O o 0
\
\ \ \
rq
N N N
1
1
p
q
Ifl > 1
1
~
W I
1
O
N
W.
.�i 0
ao
za
�aoa
£OZ
£
c
c
coo
000
m
o
0o
oq 000
3
a
mma
a
fA
N
w
.1 q
0m11 i
\ 1+1 w 1
,
m
z
H
a uw
��o� >
z
y
F
m
zzHH
u
j
z(�00
i
0cna
InN
-om
N W
Ln
a(t(�JfQ
'j�t�7
�'
v
'_' O
O..
N O
.pir
N N
s 0 0 0
, 1
p
07i %.x
W W W 1 7~
1
O
00
CO
O'�
0
0
6
HOUSING & REDEVELOPMENT
AUTHORITY
Memorandum
DATE: December 3, 1999
TO: William W. Bums, Executive Director ,AV
FROM: Barbara Dacy, Community Development Director
SUBJECT: Resolution Authorizing Execution of Amended Contract, Medtronic Inc.
Background
This item was postponed from the Authority's November agenda in hopes that Medtronic's
concerns regarding the Business Subsidy Act can be resolved. As of the writing of this memo,
Medtronic was still researching this topic, but very close to a conclusion. An update will be
provided at the Authority's meeting. The proposed Resolution is attached and the proposed
amended agreement is included in the packet.
In the meantime, Medtronic Inc. notified the Executive Director in writing of its intent to exercise
the option to acquire the entire site from the Authority. The plans for the first phase construction
total at least 514,000 square feet. The draft of the contract has been amended to accommodate
the option request.
Proposed Amendment to Contract
The proposed contract requires that Medtronic issue a $5 million note with an 8.25% interest
rate to the Authority with payments beginning in 2001 and continuing until February 1, 2026.
The $5million represents the value of the land. The payment amount would equal 11.11 % of
the increment received from the authority through 2011, and then increase to 22.22% from 2012
through 2025. Medtronic would receive 90% of the increment through the year 2025.
The key change to the contract is in Section 3.2 (d). The "Price and Payment language is .
amended to reflect that the Note to be issued by Medtronic represents the payment for the land
area included in the first phase and the remaining 14.7 acres. Because Medtronic has notified
the Authority of its option to acquire the remainder of the site, it made sense to include this in
the amended contract. "Schedule W has also been added to the contract and represents the
Note for payment of the property. The Note would be delivered upon the issuance of a
certificate of completion, or the date of closing on the Option Property, whichever comes first.
Staff intends to conduct the "closing" on the remaining property by the end of the year.
Recommendation
Staff recommends the Authority approve the attached resolution authorizing the Chairperson
and Executive Director to execute the restated contract.
M -99 -281
11/03/99 WED 09:41 FAX 612 885 5969 1UR4SS MONROE
HRA RESOLUTION NO. ___
RESOLUTION AUTHORIZING EXECUTION AND DELIVERY
OF A RESTATED CONTRACT FOR PRIVATE
REDEVELOPMENT BY AND BETWEEN THE HOUSING AND
REDEVELOPMENT AtJTHORiTY IN AND FOR THE CITY OF
FRIDLEY, MINNESOTA AND MED "rRONIC, INC.
BE IT RESOLVED by the Board of Commissioners (the " Commissioners") of the Housing and
Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority ") as follows:
Section 1. Recitals.
1.01. It has been proposed that the Authority enter into a Restated Contract For Private
Redevelopment (the "Contract ") with Medtronic, Inc. (the "Redeveloper ").
D
raj 002'
Section 2. Findings.
2.01. The Authority hereby finds that it has approved and adopted a development program known as
the Redevelopment Plan for its Redevelopment Project No. 1 (the "Redevelopment Program ")
pursuant to Minnesota Statutes, Section 469.001 et M.
2.02. The Authority hereby finds that it has approved and adopted and the City Council has created
Tax Increment Financing District No. 6 (the. "T.I. District') and the Authority and City Council
have approved and adopted the Tax Increment Financing Plan relating thereto pursuant to
Minnesota Statutes, Sections 469.174 through 469.179, inclusive, as amended and supplemented
from time to time.
2.03. The Authority hereby finds that the Contract promotes the objectives as OLItlined in its
Redevelopment Program.
Section 3. Authorizations.
3.01. The Chairman and the Executive Director of the Authority (the "Officers ") are hereby
authorized to execute and deliver the Contract when the following conditions are met:
A. The Contract to be executed substantially eonfonns to the Contract presented to the
Authority as of this date with such additions and modifications as those Officers may
deem desirable or necessary as evidenced by the execution thereof,
B. The City has approved the Special Lcbislation contained in Laws of Mi nesota 1999,
Chapter 243, Article 10, Section 23.
3.02. Upon execution and delivery of the Contract, the Officers and employees of the Authority
are hereby authorized and directed to take or cause to be taken such actions as may be
necessary on behalf of the Authority to implement the Contract.
'11/03/99 EYED 09:42 FAX 812 885 5989 BRASS MONROE IM 003
Page 2 -- Resolution No.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY 1N'
AND FOR THE CITY OF FRIDLEY, MINNESOTA THIS DAY OF ^ +,
1999.
LAWRENCE R. COMMERS - CHAIRMAN
ATTEST:
WILLIAM W. BURNS — EXECUTIVE DIRECTOR
(;:%IwrDATA%r ,RIrn.EYriaDXDO014RA RESOLUTION APPROVING R6STATEL) c:ONTRAC'T• OC
HOUSING & REDEVELOPMENT
AUTHORITY
Memorandum CIWOF
FMDUY
DATE: December 3, 1999 k—
TO: William W. Bums, Executive Director C�
FROM: Barbara Dacy, Community Development Director
SUBJECT: Proposed Acquisitions
PURPOSE OF PROPOSED ACQUISITIONS
The acquisitions proposed on Thursday's agenda accomplish three objectives of the Authority:
• To initiate the Gateway East redevelopment project at 5r Avenue and University Avenue
• To continue the Scattered Site Acquisition Program and remove substandard housing
• To acquire property for future redevelopment activities in the City's Redevelopment Project
Area
PROPOSED ESCROW AGREEMENTS
With the exception of the residential scattered site properties, purchase and escrow agreements
will be executed with the property owners identifying the terms and conditions of releasing the
funds. Broad language giving the Authority the °sole discretion" to negate the acquisition will be
in place. For example, there was not adequate time to complete soil analyses or phase I audits
for the vacant parcels. The agreements will be contingent on satisfactory conclusion of these
studies. The accompanying memos will describe the contingencies.
GATEWAY EAST
The Authority's approval of the acquisition of the duplex on 5r Place represents the last parcel
to be acquired in the redevelopment project. Staff will work with legal counsel to pursue the
condemnation of the Valvoline and Miller properties. By next Spring, staff will be ready to
initiate the developer solicitation process, site planning, and the public hearing process.
SCATTERED SITE ACQUISITIONS
Three acquisitions are proposed, one of which was postponed from the November agenda.
One of the acquisitions is a HUD home that became available after the Authority's meeting in
November. The HUD bidding process requires a commitment of payment when submitting a bid
leaving no opportunity for the Authority to review it. The property is located in the Riverview
Heights neighborhood, where the Authority has completed a number of acquisitions and sold
lots for new developments. Staff discussed the acquisition with the Chairperson and the City
Council at that time, and received authorization to proceed with the bid. The Authority's bid was
successful and accepted by HUD.
Proposed Acquisitions
December 3, 1999
Page 2
The remaining two acquisitions are acquisitions consistent with the program requirements
established by State law and the Authority's program. The Authority raised three distinct issues
at the Authority's meeting in November, which if taken individually, may lead one to different
conclusions. The three issues are:
• Is the price too high? Should the Authority wait until the market "goes back to normal "?
There is no question that the market is strong and the appraisals reveal a market price higher
than the Authority has seen in the past. The strong market is not unique to Fridley according to
our appraisers and City Assessing staff. Assessed values in other cities have increased 6 to
10% depending on the location. In fact, the City has raised assessed valuations a total of 20%
in the last three years, with little opposition, since taxes have remained fairly constant. The City
Assessors do not see a "cooling down" of the market; rather, the market may continue to be
strong and then stabilize as opposed to declining. How long does the Authority wait, and at
what risk to the neighborhood? Should rehab dollars be spent on houses that should really be
replaced?
• Is the housing really °blight"? Are we taking away a legitimate option for people "?
The enabling legislation for the Housing Replacement program for the City of Fridley specified
the conditions under which housing would be eligible for acquisition and demolition. The
Building Inspector and the appraiser inspected the property and developed a checklist based on
the statute. In addition, the cost to rehabilitate the structure is a tool to help measure the extent
of the blight. It is not intended as a means to determine value, but merely to document why the
property is in substandard condition. Based on the conclusions of the Building Inspector and
the appraiser, the Authority has met the statutory test for blight for the subject acquisitions. Is
the housing uninhabitable and condemnable? No. They do however have enough concerns
that justify the Authority's acquisition under the law.
It is true that there are people in the market who will purchase these homes, since they are
available at an "affordable" value. The question then becomes if the City wants to encourage
households, either from Fridley or elsewhere, to purchase houses that are in dubious condition.
• Is the scattered site program worth it?
One house can affect the neighborhood. There are a number of examples in the City where
staff receives complaints from homeowners about "that house" which looks like a mess. The
Authority has been very successful in the Hyde Park and Riverview Heights neighborhoods by
completing several acquisitions and literally changing the direction of parts of a neighborhood.
Two of the proposed acquisitions are in the Riverview Heights neighborhood and would
continue the neighborhood revitalization effort in that area. The acquisition on East River Road
is the first one in that neighborhood, which has the same types of housing issues that can be
found in Hyde Park and Riverview Heights. Taken alone, the East River Road acquisition is
expensive. The return on the Authority's investment however is the value of the new housing in
the community and the positive impacts on the neighborhood at large.
c
Proposed Acquisitions
December 3, 1999
Page 3
VACANT LAND ACQUISITIONS
The remaining acquisitions are located in TIF #2 along Old Central Avenue, except for the
Nedegaard property on 7t' Street just south of 1 -694. The Old Central sites offer a unique
opportunity to take advantage of a positive future as a result of two Medtronic Campuses
needing the Central Avenue corridor as an important link. This area could really transform with
low -rise office buildings or infill residential development.
The Nedegaard piece is harder to develop, but could support a multi- family project.
Alternatively, it could be sold to adjoining multiple family owners for parking lot expansions or
potential garage additions.
RECOMMENDATION
Staff recommends that the Authority approve the acquisitions below with the various caveats to
be contained in the escrow agreements. TIF funds from #2 and #3 will be used for these
acquisitions.
M -99 -282
HOUSING & REDEVELOPMENT
AUTHORITY
Memorandum
FRI�
DATE:
TO:
FROM:
SUBJECT:
December 3, 1999
William W. Burns, Executive Director of HRA Jh4
Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
Consider Acquisition of Fogarty Duplex
We are pleased to report that we have reached agreement with Bill Fogarty, owner of
the duplex located at 349 -353 57"' Place NE. This site is located on the eastern
boundary of the Gateway East project area.
Purchase Price
In September of this year, Lake State Realty Services appraised the property for
$135,000. Our initial offer for the property was well below this amount, however the
owner counter - offered at $150,000. After several weeks of negotiations both sides
agreed to a final price of $142,500 which is midway between the appraised value and
the owner's demand. This amount is $7,500 or 5% higher than the appraised value.
Tenant Issues
At the present time, two tenants, one of who has a lease through May 2000 and the
other who has a month -to -month lease, occupy the units. By law the HRA is required
to pay relocation benefits to the tenants, including advisory
services, moving expenses and a rental supplement. This supplemental payment must
be provided if the replacement housing is more expensive than the tenant's current rent
amount. Dan Wilson has been hired to assist the tenants with their relocation needs.
Closing Date
In order to meet the December 31, 1999 deadline to utilize resources from the "gap"
year districts (TIF #2 and #3), staff is proposing that the funds for the purchase be
placed in escrow with a title company and held until closing. The closing is tentatively
scheduled for June 1, 2000. The reason for the delayed closing is to avoid all of the
5.a
Duplex Acquisition Memo
December 3, 1999
Page 2
tenant management and rental liability issues associated with owning the building while
it is still occupied. The June 1st closing date would provide sufficient time for the
tenants to find suitable replacement housing.
Funds for the acquisition will be charged to one of the gap year districts ( #2 or #3) and
placed in an escrow account.
Recommendation
Staff recommends that the Authority approve the following:
1. The Purchase and Escrow Agreements by and between William Fogarty and the
Authority for $142,500 for the purchase of 349 -353 57th Place
2. Authorize the Executive Director to execute all documents related to the
transaction.
M -99 -287
KRASS MONROE, P.A.
A T T O R N E Y S AT LAW
■ Robert W. Corey
Attorney at Law
Admitted In Wsconsin and Iowa
Email robertc@krassmonroecom
wwwArassmonroe.com
Direct Dial (612) 8855886
MEMORANDUM
To: City of Fridley, MN
Attn: Barbara. Dacy, Community Development Director
Grant Femelius, Housing Coordinator
From: Robert W. Corey, Esq.
James R. Casserly, Esq.
Date: November 29, 1999
Re: Purchase and Sale Agreement by and between Sentry Real Estate, Inc. and the Housing and
Redevelopment Authority
Our File No. 9571 -30
Sentry Real Estate, Inc. owns a duplex that the Authority wishes to acquire for redevelopment
purposes. The duplex is occupied by two tenants, one of which holds a written lease that extends to May 31,
2000; and one which has a month -to -month lease which can be terminated by either party upon one month's
notice.
We have prepared the attached Purchase and Sale Agreement which sets a purchase price for the
property of $142,500. In order to close this transaction this year, the parties agree to enter into an escrow
agreement on or about December 20, 1999, at which time the entire purchase price is to be placed into an
escrow account. The Seller can obtain a release of the escrowed purchase price at such time as Seller is able to
deliver good title and the property free of tenants. Until these conditions are satisfied the Seller continues to
operate the property in the same manner as it does today. Seller collects all rents and continues to be responsible
for maintenance expenses as well as real estate taxes, property insurance, and any other normal rental property
operating costs.
If the tenants are not gone by May 31, 2000, the Seller is obligated to pursue an unlawful detainer
action and the closing is postponed until Seller delivers the property, without tenants, to the Authority. If the
Seller cannot perform its obligations by August 15, 2000, the agreement can be terminated by the Authority.
If you have any questions or need any further information, please let me know. Thank you.
GAWPDAWRFRIDLEMMMEMOIDACY RE SENTRY REAL ESTATE.DOC
SUITE 1100 SOUTHPOINT OFFICE CENTER • 1650 WEST 82ND STREET • BLOOMINGTON, MINNESOTA 55431 -1447
TELEPHONE 6121885 -5999 • FACSIMILE 6121885 -5969
Address: 349 -353 57h Place NE
Fridley, MN 55432
PURCHASE AND SALE AGREEMENT
THIS AGREEMENT, made as of the _ day of December, 1999, by and between Sentry
Real Estate, Inc., hereinafter referred to as Seller, and the Housing and Redevelopment Authority
in and for the City of Fridley, Minnesota, hereinafter referred to as Buyer.
RECITALS:
WHEREAS, Seller owns certain real estate situated at 349 -353 57th Place NE, Fridley,
Minnesota, and legally described below; and
WHEREAS, Buyer wishes to purchase and Seller is willing to sell to Buyer such real
estate; and
WHEREAS, the parties wish to define their respective rights, duties and obligations
related to the purchase and sale of such real estate.
NOW, THEREFORE, in consideration of the mutual promises and the respective
agreements contained herein, the parties hereby agree as follows:
1.
Property
The Seller hereby agrees to sell and the Buyer hereby agrees to purchase the
following described real estate (the "Property") located in the City of Fridley, State of
Minnesota:
Lots 7 and 8, Block 3, City View Addition
PIN: 233024240076
2. Purchase Price
The purchase price for the Property shall be the sum of One Hundred Forty-Two
Thousand Five Hundred and 00 /100 Dollars ($142,500.00) payable as provided for herein.
3. Contingency
The obligations of each party under this Agreement are contingent upon the
following:
3.1 Vacation of Property by Tenants. The Property is presently
occupied by two tenants. The tenant of 349 57th Place NE has a written lease that terminates on
May 31, 2000. The tenant of 353 57th Place NE has a "month -to- month" lease which either party
can terminate upon one month notice to the other party. Both leases are referred to herein as the
"Leases." The Leases will expire and terminate, and the Tenant will be required to vacate the
Property on or before May 31, 2000 ( "Lease Termination Date "). If the Tenants do not vacate
the Property within five (5) days of the Lease Termination Date, the Seller shall, at Seller's cost,
immediately commence and prosecute an unlawful detainer action, and the date of Closing as
established in the Escrow Agreement shall be that date which is ten (10) days following the date
the last tenant vacates the Property.
4. Escrow
The parties shall execute the Escrow Agreement, Exhibit A, on or before
December 20, 1999.
5. Possession
The Seller agrees to deliver possession of the Property to Buyer not later than
June 1, 2000, provided that all conditions of the Escrow Agreement have been complied with.
All charges for property and liability insurance, city water, city sewer, electricity, and natural gas
shall be continue to be Seller's responsibility for the period from the date of this Purchase and
Sale Agreement through the date of Closing, as established in the Escrow Agreement. Seller
agrees to remove all debris and all personal property not included herein from the Property by
the date of Closing. Any personal property not removed by the date of Closing shall be
considered the property of the Buyer.
6. Deed
Subject to performance by the Buyer, the Seller agrees to execute and deliver a
Warranty Deed conveying marketable title to the Property subject only to the following
exceptions ( "Permitted Encumbrances "):
(a) Building and zoning laws, ordinances, State and Federal regulations.
(b) Restrictions relating to use or improvement of premises without effective
forfeiture provision.
(c) Reservation of any materials or mineral rights to the State of Minnesota.
(d) Utility and drainage easements which do not interfere with present
improvements.
7. Evidence of Title Seller shall, within fourteen (14) days, furnish Buyer with a
commitment ( "Commitment ") for an owner's policy of title insurance insuring title to the
Property in the amount of the Purchase Price, issued by a title company of Seller's choice
( "Title "). The Commitment will commit Title to insure title to the Property subject only to the
Permitted Encumbrances. Seller's only obligation pursuant to this Section 7 is to provide Buyer
with the Commitment. If Buyer desires to purchase title insurance, Buyer is solely responsible
for arranging for such purchase and any costs associated with such purchase.
2
7.1 Buyer shall be allowed twenty (20) days after receipt of the Commitment
for examination of title and the making of any objections, which objections shall be made in
writing or deemed to be waived. If any .objections are so made, Seller shall be allowed thirty
(30) days to make such title marketable.
7.2 If title is not marketable and is not made so within thirty (30) days from
the date of written objections, Buyer may terminate this Agreement and neither party shall be
liable thereafter to the other party pursuant to this Agreement. If the title to the Property is found
marketable or may be so made within such time, and Buyer shall default in any of the
agreements, then and in that case Seller may terminate this Agreement.
8. Real Estate Taxes
Real estate taxes due and payable in 1999 shall be paid by Seller. Real estate
taxes due and payable in and for the year 2000 shall be prorated between Seller and Buyer on a
calendar basis to the date of Closing.
9. Special Assessments
Seller shall pay on the date of Closing all installments of special assessments.
Seller shall provide for payment of all special assessments pending as of the date of Closing for
improvements that have been ordered by the city or other assessing authorities. Seller shall pay
any deferred taxes on the date of Closing.
10. Seller Warranties
Seller warrants that prior to the date of Closing, payment in full will have been
made for all labor, materials, machinery, fixtures or tools furnished within the 120 days
immediately preceding the closing in connection with construction, alteration or repair of any
structure on or improvement to the Property.
Seller warrants that upon execution of this Agreement, Seller will not rent the
Property once it is vacated by any person now occupying same.
Seller warrants Seller has executed no option to purchase, right or first refusal, or
any other agreement giving any person or other entity the right to purchase or otherwise acquire
any interest in the Property, and Seller is unaware of any option to purchase, right of right
refusal, or other similar rights affecting the Property, except as otherwise noted in the title
commitment for the Property.
Seller has received no notice of any action, litigation, investigation or proceeding
of any kind pending against Seller, not to the best of Seller's knowledge is any action, litigation,
investigation, or proceeding pending or threatened against the Property, or any party thereof.
On the date of Closing, there will be no service contracts in effect in connection
with the Property, except those which are terminable on thirty (3 0) days' written notice.
11. Risk of Loss
If there is any loss or damage to the Property between the date of this Agreement
and the date of Closing, for any reason including fire, vandalism, flood, earthquake, or act of
God, the risk of loss shall be on Seller.
12. Time of Essence
Time is of the essence in this Purchase and Sale Agreement.
13. Environmental Concerns
To the best of the Sellers knowledge there are no hazardous substances,
underground storage tanks or wells on the Property.
14. Well Disclosure
Buyer acknowledges receipt of a well disclosure statement from Seller attached as
Exhibit B to this Agreement.
15. Individual Sewage Treatment System Disclosure
Seller discloses that there is not an individual sewage treatment system on or
serving the Property.
16. Right of Entry
Buyer and its duly authorized agents shall have the right during the period from
the date of this Agreement to the date of Closing, to enter in and upon the Property in order to
make, at Purchaser's expenses, surveys, measurements, wetland delineations, soil tests, and other
tests that Buyer shall deem necessary. Buyer agrees to restore any resulting damage to the
Property and to indemnify, hold harmless and defend Seller from any and all claims by third
persons of any nature whatsoever arising from Buyer's rights of entry hereunder, including all
actions, suits, proceedings, demands, assessments, costs, expenses and attorneys' fees.
17. Entire Agreement
This Agreement, any attached exhibits and any addenda or amendments signed by
the parties, shall constitute the entire agreement between Seller and Buyer, and supersedes any
other written or oral agreements between Seller and Buyer. This Agreement can be modified
only in writing signed by Seller and Buyer.
4
18. Incidental Expenses
All expenses of examination of title, transfer tax, preparation and recording or
deed, appraisal, closing fees, lot surveys, etc. will be paid by the Buyer. Any costs incurred to
remove any cloud on the title to convey a good and marketable title to the Property shall be the
responsibility of the Seller.
20. Ineligible for Relocation Assistance
The Seller acknowledges that it has voluntarily entered this Purchase Agreement
and, as such, acknowledges that the Seller is not a "displaced person" as defined by The Uniform
Real Property Acquisition and Relocation Act of 1970 at amended and M.S. 117.52 and hence
the Seller is not eligible for any relocation assistance or benefits.
[Signature Page Follows]
GAWPDATAWWRIDLEYl MOOPURCHASE AND SALE.DOC
rol
SELLER:
SENTRY REAL ESTATE, INC.
Its:
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF FRIDLEY, MINNESOTA
By:
Chairman
By:
Executive Director
f *TI.TiWAIX10 -.qI Dl D101 D) W
This Escrow Agreement is made, this day of , 1999, by and
between Sentry Real Estate, Inc. ( "Seller "), the Housing and Redevelopment Authority in and for
the City of Fridley, Minnesota, ( "Buyer ") and ( "Escrow
Agent ").
RECITALS
A. Seller and Buyer are parties to that certain Purchase and Sale Agreement
( "Purchase Agreement ") dated December _, 1999, for the purchase of certain
property located at 349 -353 57fl' Place NE, Fridley, Minnesota, and such Purchase
and Sale Agreement is attached hereto as Exhibit A.
B. Seller and Buyer desire to consummate the transaction contemplated by the
Purchase and Sale Agreement, and, escrow the funds into an Escrow Account
established hereby, pending the performance of the parties of certain obligations
as set forth herein.
C. Escrow Agent has agreed to be designated escrow agent for handling the
transaction contemplated by this Agreement.
AGREEMENT
NOW, THEREFORE, the parties hereto, intending to be bound hereby, agree as follows:
1. Appointment of Escrow Agent. Seller and Buyer hereby appoint and designate
Escrow Agent for the purpose set forth herein and Escrow Agent accepts such appointment. The
account . established by the Escrow Agent for purposes of fulfilling its obligations hereunder shall
be referred to as "Escrow" or "Escrow Account ".
2. Definitions. Any capitalized terms used in this Agreement that are not
specifically defined herein shall refer to the definitions set forth in the Purchase and Sale
Agreement.
3. De osit. On the date hereof, Buyer shall deposit with Escrow Agent, $142,500.00
representing the full amount of the Purchase Price (the "Deposit ").
4. Conditions to Release of Deposit.
Escrow Agent shall retain the Deposit until both of the following conditions have
been fulfilled, and upon their fulfillment, the closing of this transaction shall occur:
A. Delivery of Title Commitment. Seller shall provide Buyer with a commitment for
title insurance subject only to the Permitted Encumbrances. This condition 4.A.
shall be deemed fulfilled at such time as any of the following occur:
1. Seller provides Buyer and Escrow Agent with a certificate that
Buyer has failed to object to the condition of title within the time
frames set forth in Section 7 of the Purchase and Sale Agreement
and Buyer fails to provide Escrow Agent a copy of Buyer's
objection, in writing, to such certificate within ten (10) days of the
receipt thereof, or
2. Seller provides a certificate to Buyer and Escrow Agent that Seller
has cured any title objection raised by Buyer within the time
frames set forth in Section 7 of the Purchase and Sale Agreement
and Buyer fails to provide Escrow Agent a copy of Buyer's
objections, in writing, to such certificate within ten (10) days of the
receipt thereof, or
3. Seller provides a certificate to Buyer and Escrow Agent that Seller
believes that the title objection raised by Buyer is invalid and
Escrow Agent receives a copy of an award from an arbitrator,
pursuant to Section 6 hereof, which holds that such objection is
invalid, whereupon the objection shall be deemed a Permitted
Encumbrance.
B. Termination of Tenancy. The tenants under both of the existing leases shall have
vacated the Property. This condition 4.B. shall be deemed fulfilled at such time as
any of the following occur:
1. Seller provides a certificate to Buyer and the Escrow Agent that all
tenants have vacated the Property and Buyer fails to provide
Escrow Agent a copy of Buyer's objection, in writing, to such
certificate within ten (10) days of the receipt thereof; or
2. Seller has provided to Buyer and Escrow Agent a writ of
restitution against all tenants occupying the Property from a court
of competent jurisdiction, together with evidence that no appeal
therefrom is pending. The obligation of Seller to obtain a writ of
restitution for the Property shall supercede the right of either party
to terminate the Purchase and Sale Agreement because of the
failure of a tenant to vacate the Property as set forth in Paragraph 3
of the Purchase Agreement.
5. Release of Escrowed Deposit. Buyer and Seller shall notify Escrow Agent and
each other when that party believes the conditions set forth in 4.A and 43 herein have been met.
Such notice by a party shall be accompanied by the documents to be provided by that party at
Closing, pursuant to the Purchase and Sale Agreement. At such time as Escrow Agent has
received notice from both parties that the conditions have been met, together with the documents
to be prepared and executed by that party for closing, Escrow Agent shall:
2
3
A. Record the Warranty Deed
B. Pay and obtain releases of any mortgages, contracts for deed or liens that
encumber the Property
C. Release one original Closing Statement to each of Seller and Buyer
D. Pay the "net" sale proceeds to Seller
E. Pay any interest accrued during the term of this Escrow to Buyer
F. Issue a marked -up commitment for a title policy issued in favor of Buyer
in the full amount of the purchase price, subject only to the Permitted
Encumbrances, effective as of recording date
6. Disputes. In the event either Buyer or Seller disputes whether a condition of
release of the Deposit as defined in Paragraph 4 has been fulfilled, then either party may notify
Escrow Agent and the other party hereto, in writing, of its protest, whereupon the Escrow Agent
shall retain the Deposit. The parties hereto agree to arbitrate any dispute relating to whether or
not the conditions to release of the Deposit in the Escrow Account have been met. Such
arbitration shall proceed pursuant to the Construction Industry Arbitration Rules of the American
Arbitration Association. Any decision of the arbitrators shall be binding. The arbitrators shall
be directed to award attorneys' fees as they may deem appropriate.
7. Interest. Escrow Agent is authorized to deposit the funds set forth in paragraph 3
hereof and such funds shall be placed in investments that are statutorily authorized municipal
investments as approved by the City's Finance Director. Interest on amounts deposited with
Escrow Agent pursuant to this Agreement shall be distributed to the Buyer on the termination
hereof.
8. Closing of Escrow Account: Termination of Escrow. This Escrow Agreement
may be closed as follows:
A. At such time the conditions set forth in Paragraph 4 hereof are fulfilled
and Escrow Agent shall have released the Deposit and made the disbursements in accordance
with paragraph 5 hereof.
B. At such time as directed by the Arbitrator, if paragraph 6 hereof is
invoked.
C. If the conditions set forth in Paragraph 4 have not been fulfilled on or
before July 15, 2000, the Escrow Agent shall release to the Buyer the Deposit and accrued
interest in the Escrow Account.
Upon the closing of the Escrow Account in accordance with the provisions of this
Paragraph 8, this Agreement shall automatically terminate. Escrow Agent shall then notify
Buyer and Seller of the closing of the Escrow Account, the termination of this Agreement, and
the disbursements pursuant hereto.
Kj
9. Expenses. Seller and Buyer shall equally pay upon demand all charges of Escrow
Agent, and such attorneys' fees, expenses, and other costs as may be reasonably incurred in
connection with the administration of this Agreement by Escrow Agent. Escrow Agent agrees
that its fees in connection herewith shall be $
10. Liability of Escrow Agent. The Escrow Agent, in performing its duties under this
Agreement, shall not be liable to any party for damages, losses, or expenses, except for bad faith,
negligence, gross negligence or willful misconduct on its part. The Escrow Agent shall not incur
any such liability for (i) any act or failure to act made or omitted in good faith, or (ii) any action
taken or omitted in reliance upon any notice, instruction, consent or other instrument that the
Escrow Agent shall in good faith believe to be genuine, nor will the Escrow Agent be liable or
responsible for forgeries, fraud, impersonations, or determining the scope of any agent's
authority. The Escrow Agent shall not be responsible or liable for the correctness, genuineness,
or validity of any instrument delivered to it of for the identity or authority of any person
executing or depositing any instrument. The Escrow Agent shall have no duties beyond those
which are expressly set forth in this Agreement and shall not be required to take any action under
this Agreement involving any expense unless the payment of such expense shall be made or
provided for in a manner satisfactory to it.
11. Notices. Any notices required or permitted to be delivered under this Agreement
shall be in writing and shall be delivered by facsimile, hand delivered or mailed postage prepaid,
regular, registered, or certified mail, return receipt requested, addressed to Buyer, Seller, or
Escrow Agent, as the case may be, at the respective addresses and facsimile numbers set forth
opposite their names below, or at such other address or addresses as they may have theretofore
specified by written notice delivered in accordance herewith:
If to Seller: Sentry Real Estate, Inc.
Attn:
Fax:
With a copy to:
Attn:
Fax:
If to Buyer: Housing and Redevelopment Authority
in and for the City of Fridley, Minnesota
6431 University Avenue Northeast
Fridley, MN 55432
Attn: Barbara Dacy
Community Development Director
Fax: (612) 571 -1287
4
With a copy to: James R. Casserly
Southpoint Office Center, Suite 1100
1650 West 82 °d Street
Minneapolis, MN 55431
Fax: (612) 885 -5969
If to Escrow Agent:
Attn:
Fax:
12. Governing Law. This Agreement shall be governed by and interpreted in
accordance with the laws of the State of Minnesota.
13. Heading. The headings used herein are for convenience only and are not to be
used in interpreting this Agreement.
14. Amendments. This Agreement is irrevocable and may be amended only by a
written amendment executed by all the parties hereto.
15. Assignment. This Agreement shall inure to the benefit of and bind the parties
hereto and their respective successors and assigns.
16. Counterparts. This Agreement may be executed in counterparts or with
counterpart signature pages.
M
IN WITNESS WHEREOF, the parties have executed this Agreement.
G: \WPDATA\FIFMLEY\30\DOC\ESCROW AGRDOC
u
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF FRIDLEY, MINNESOTA
By:
Chairman
By:
Executive Director
SELLER:
SENTRY REAL ESTATE, INC.
LON
Its:
ESCROW AGENT
Its:
HOUSING & REDEVELOPMENT
AUTHORITY
Memorandum
DATE: December 3, 1999
TO: William W. Burns, Executive Director of HRA',40-
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Consider Acquisition of Werner's Furniture
Background
The Werner's Furniture building is located on the corner of 3rd Street and 59"' Avenue in
the Hyde Park neighborhood. The property has been used as a furniture refinishing
shop for many years and is one of only two commercial buildings still in the
neighborhood (the other is the US West telephone facility).
The building was constructed in the early1950's as a showroom for used cars, and was
then occupied by a golf cart distributor until the mid- 1980's. Virgil Werner purchased
the building around 1985 and operated a furniture refinishing business until the late
1980's when he sold the shop to Mike Larson who is the current owner.
Purpose of Acquisition
The purpose of acquiring Werner's Furniture is to help achieve a number of land use,
planning and redevelopment objectives. As you know, this area is one of the oldest
parts in Fridley and is characterized by a mixture of residential and commercial land
uses. In the early 1970's the City began to recognize the problem of these
incompatible land uses and established a special zoning district. Although this was
successful in preventing the expansion of commercial businesses in Hyde Park, it did
not eliminate the uses.
By the mid- 1990's the City took a more aggressive approach and began buying
properties to encourage redevelopment. In 1994 the City purchased the Custom
Mechanical property, one block to the north of Werner's, for $105,000 and tore
5mb
Werner's Furniture Memo
December 3, 1999
Page 2
down the building. Two new homes were built on the site. In 1995, the HRA
bought the Frank's Used Cars property, one block to the south of Werner's, for
$165,000. The site has remained undeveloped pending the completion of Gateway East
project.
At minimum, the site is large enough to accommodate two residential lots if
redeveloped. However, staff is evaluating options to vacate 59th Avenue and possibly
acquire the house to.the south and expand the project area. This option could provide
an additional two to three lots for new development.
Building and Improvements
As mentioned earlier, the building was constructed in 1950, using concrete block and is
2,160 square feet in size. The lot is 120'x 129 or 15,480 square feet of land area. The
structure is in fair condition and was appraised for $130,000 in October. This value was
based on sales data of comparable buildings over the last two years. The property is
assessed for $61,900 for tax purposes ($36,600 for land; $25,300 for building).
Overview of Transaction
The owner has agreed to sell the building, for $140,000, which is $10,000 more than
the appraised value. As an incentive to sell, staff has offered to pay relocation benefits
to the owner. Under the Uniform Relocation Act the owner can select either a
reimbursement for actual moving expenses (no cap) or a fixed payment -in -lieu up to
$20,000. In this case, the owner has selected the fixed payment option and our
relocation consultant, Dan Wilson, has determined that he is eligible for the full
$20,000. As a result, the total package is worth $160,000. The owner would like to
remain in the building rent -free through April in order to allow sufficient time for him to
construct a new shop in Andover.
We are including language in the purchase agreement which would pay the seller part
of the money up front ($100,000) and escrow the remaining funds ($60,000) until the
owner has moved out of the building. We will also include our standard language about
environmental contamination and liability for clean -up costs.
Funds for the acquisition and relocation will be charged to one of the gap year districts
( #2 or #3) and placed into an escrow account.
Werner's Furniture Memo
December 3, 1999
Page 3
Recommendation
Staff recommends that the Authority approve the following:
1. The Purchase and Escrow Agreements by and between Michael and Barbara Larson
and the Authority for $140,000 for the purchase of the Werner's Furniture Building
at 5901- 3rd Street NE.
2. Authorize the Executive Director to execute all documents related to the transaction.
KRASS MONROE, P.A.
ATTORNEYS AT LAW
■ Robert W. Corey
Attorney at Law
Admitted in Wisconsin and Iowa
Email robertc@krassmonroacom
www.krassmonroe.com
Direct Dial (612) 885 -5986
MEMORANDUM
To: City of Fridley, MN
Attn: Barbara Dacy, Community Development Director
Grant Femehus, Housing Coordinator
From: Robert W. Corey, Esq.
James R. Casserly, Esq.
Date: November 29, 1999
Re: Purchase and Option Agreement by and between Michael and Barbara Larson and the
Housing and Redevelopment Authority
Our File No. 9571 -30
Michael and Barbara Larson own a business property that the Authority desires to acquire for
redevelopment purposes. The Authority proposes to acquire the property for $160,000, which represents a
purchase price for the property in the amount of $140,0000, and a settlement of all relocation benefits claims in
the amount of $20,000.
The transition shall close on or about December 20, 1999, at which time legal title to the property is to
be conveyed to the Authority. The Seller shall receive $100,000 on the date of closing and $60,000 shall be
placed into an escrow account for the purpose of paying for site clean-up.
Seller will be allowed to continue to occupy the property and conduct its business on -site until May 31,
2000, when it shall vacate the property. When Seller vacates, the Authority's environmental consultant shall
investigate the environmental condition of the property and prepare, if necessary, a plan to clean up any
environmental problems. The costs of any clean-up shall be paid from the $60,000 which is to be escrowed at
the time of closing. If the clean-up costs are less than $60,000, any remaining funds are to be paid to Seller after
the clean-up is finished.
The Seller continues to pay all costs of operating and maintaining the property until they vacate,
including, but not limited to, real estate taxes, utilities and insurance.
If you have any questions or need further information please let us know. Thank you.
G.\ WPDATA\F\FRIDLEYM\MEMO\DACY.DOC
SUITE 1100 SOUTHPOINT OFFICE CENTER • 1650 WEST 82ND STREET • BLOOMINGTON, MINNESOTA 55431 -1447
TELEPHONE 6121885 -5999 • FACSIMILE 612/885 -5969
Address: 5901 NE 3rd Street
Fridley, MN 55432
PURCHASE AND SALE AGREEMENT
THIS AGREEMENT is made as of the _ day of December, 1999, by and between
Michael J. Larson and Barbara Larson, husband and wife, hereinafter referred to as Seller, and
the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, hereinafter
referred to as Buyer.
RECITALS:
WHEREAS, Seller owns certain real estate situated at 5901 NE 3`d Street, Fridley,
Minnesota, and legally described below; and
WHEREAS, Buyer wishes to purchase and Seller is willing to sell to Buyer such real
estate; and
WHEREAS, the parties wish to define their respective rights, duties and obligations
related to the purchase and sale of such real estate.
NOW, THEREFORE, in consideration of the mutual promises and the respective
agreements contained herein, the parties hereby agree as follows:
1.
PropejU
The Seller hereby agrees to sell and the Buyer hereby agrees to purchase the
following described real estate (the "Property") located in the City of Fridley, State of
Minnesota:
Lots 16, 17 and 18, Block 12, Hyde Park Addition to the City of Fridley
PIN: 23 30 24 22 0130
23 30 24 22 0129
2. Purchase Price
The total purchase price shall be One Hundred Sixty Thousand and 00 /100
Dollars ($160,000.00) which shall be allocated as follows: One Hundred Forty Thousand and
00 /100 Dollars ($140,000.00) for the Property and Twenty Thousand and 00 /100 Dollars
($20,000.00) as settlement of all of Seller's claims for business relocation benefits. One Hundred
Thousand and 00 /100 Dollars ($100,000.00) shall be paid to Seller at Closing and Sixty
Thousand and 00 /100 Dollars ($60,000.00) shall be placed into the Escrow Account in
accordance with the Escrow Agreement, a copy of which is attached as Exhibit A, to be executed
by the parties at Closing.
3. Contingencies
The obligations of each party under this Agreement are contingent upon the
following:
(a) Buyer being satisfied that good and marketable title to the Property is
vested in Seller pursuant to Paragraph 7 herein;
(b) All warranties and representations of Seller hereunder being true and
correct as of the date hereof, on the date of Closing and on the Possession Date, as
defined in the Escrow Agreement;
If the foregoing contingencies have not been satisfied or waived by Buyer on or before
the date of Closing or such other date as is expressly set forth above, then this Agreement may be
terminated at Buyer's option, and neither party shall have any further rights or obligations with
respect to this Agreement or the Property. If notice of termination of the Agreement for failure
to satisfy any contingency set forth above is not given by Buyer on or before the date of Closing,
such contingency shall be deemed waived by Buyer.
Buyer shall have the right to unilaterally waive any contingency and proceed to close.
Each party shall cooperate with the other in satisfying the conditions hereof.
4. Closin
The Closing shall be on or before December 20, 1999. At Closing, the parties
shall execute and deliver the Escrow Agreement, Exhibit A, to the Escrow Agent.
5. Possession
Legal possession of the Property shall be delivered to Buyer on the date of
Closing, subject to Seller's continuing right to remain as a tenant and to conduct its present
business on the Property until May 31, 2000, the Possession Date, for no additional rent,
provided that all conditions of the Escrow Agreement have been satisfied. All charges for city
water, city sewer, electricity, and natural gas shall be paid by Seller for the period commencing
on the date of Closing and continuing through the Possession Date. Seller shall continue to keep
in full force and effect through the Possession Date all policies of property and liability insurance
in existence on the date of this Agreement, which shall name Buyer as an additional insured.
Seller agrees to remove all debris and all personal property from the Property by Possession
Date. Seller may, at its option, remove the existing lights, furnace, air compressor and spray
booth before the Possession Date. Any personal property not removed by the Possession Date
shall be considered the property of the Buyer
P?
6. Deed
Subject to performance by the Buyer, the Seller agrees to execute and deliver a
Warranty Deed conveying marketable title to the Property subject only to the following
exceptions ( "Permitted Encumbrances "):
(a) Building and zoning laws, ordinances, state and federal regulations.
(b) Reservation of any materials or mineral rights to the State of Minnesota.
(c) Existing utility and drainage easements.
7. Evidence of Title Seller shall, within fourteen (14) days, furnish Buyer with a
commitment ( "Commitment ") for an owner's policy of title insurance insuring title to the
Property in the amount of the One Hundred Forty Thousand and 00 /100 Dollars ($140,000.00),
issued by a title company of Seller's choice ( "Title "). The Commitment will commit Title to
insure title to the Property subject only to the Permitted Encumbrances. Seller's only obligation
pursuant to this Paragraph 7 is to provide Buyer with the Commitment. If Buyer desires to
purchase title insurance, Buyer is solely responsible for arranging for such purchase and any
costs associated with such purchase.
7.1 Buyer shall be allowed twenty (20) days after receipt of the Commitment
for examination of title and the making of any objections, which objections shall be made in
writing or deemed to be waived. If any objections are so made, Seller shall be allowed thirty
(30) days to make such title marketable. Pending correction of title, the parties shall perform this
Agreement according to its terms.
7.2 If title is not marketable and is not made so within thirty (30) days from
the date of written objections, Buyer may terminate this Agreement and neither party shall be
liable thereafter to the other party pursuant to this Agreement. If the title to the Property is found
marketable or may be so made within such time, and Buyer shall default in any of the
agreements, then and only in that case Seller may terminate this Agreement.
Real Estate Taxes
Seller shall be responsible for all real estate taxes due and payable in 1999. Real
estate taxes due and payable in 2000 shall be prorated between Seller and Buyer on a calendar
basis to the Possession Date.
9. Special Assessments
Seller shall pay all installments of special assessments payable through the
Possession Date.
10. Seller Warranties
On the date of Closing, Seller will own the Property, free and clear of all liens,
charges and encumbrances.
Seller warrants upon execution of this Agreement, Seller will not rent any portion
of the Property to a third party.
Seller warrants that Seller has executed no option to purchase, right or first
refusal, or any other agreement giving any person or other entity the right to purchase or
otherwise acquire any interest in the Property, and Seller is unaware of any option to purchase,
right of right refusal, or other similar rights affecting the Property.
Seller has received no notice of any action, litigation, investigation or proceeding
of any kind pending against Seller, not to the best of Seller's knowledge is any action, litigation,
investigation, or proceeding pending or threatened against the Property, or any party thereof.
On the date of Closing, there will be no service contracts in effect in connection
with the Property, except those which are terminable on thirty (30) days' written notice.
Seller has received no notice of any action, litigation, investigation or proceeding
of any kind pending against Seller, nor to the best of Seller's knowledge is any action, litigation,
investigation, or proceeding pending or threatened against the Property, or any party thereof.
Seller will cause, to the extent applicable, all policies of insurance covering the
Property with respect to fire and extended coverage risks, business interruption and liability to be
kept in full force and effect through and including the Possession Date.
To the best of Seller's knowledge, after due inquiry, no toxic or hazardous
substances (including, without limitation, asbestos, urea form formaldehyde, the group of
organic compounds known as polychlorinated biphenyls, and any hazardous substance as defined
in the Comprehensive Environmental Response, Compensation and Liability Act of 1980
( "CERCLA "), 42 U.S.C. Section 9601 -9657, as amended have been generated, treated, stored,
released or disposed of, or otherwise deposited in or located on the Property, including without
limitation, the surface and subsurface waters of the Property, nor has any activity been
undertaken on the Property, which would cause (i) the Property to become a hazardous waste
treatment storage or disposal facility within the meaning of, or otherwise bring the Property
within the meaning of the Resources Conservation and Recovery Act of 1976 ( "RCRA "), 42
U.S.C. Section 6901 et. sea., or any other state law or local ordinance or any other
Environmental Law; (ii) a release or threatened release of hazardous waste from the Property
within the meaning of, CERCLA, or any similar state law or local ordinance or any other
Environmental Law or (iii) the discharge of pollutants or affluent into any water source or
system, or the discharge into the air of any emissions, which would require a permit under the
Federal Water Pollution Control Act, 33 U.S.C. Section et. sew,._, or the Clean Air Act, 42 U.S.C.
Section 7401 et. agg., or any similar state law or local ordinance or any other Environmental
Law. To the best of Seller's knowledge after due inquiry, there are no .substances or conditions
in or on the Property which may support a claim or cause of action under RCRA, CERCLA or
any other federal, state or local environmental statutes, regulations, ordinances, or their
environmental requirements. To the best of Seller's knowledge, after due inquiry no
underground deposits which cause hazardous wastes or underground storage tanks are located on
n
the Subject Property. Seller has made "due inquiry" pursuant hereto only in those circumstances
where Seller had either been notified of or formed a belief that circumstances existed or are
likely to exist on any portions of the Property which would cause a violation of these
representations.
Buyer and its agents shall have the right to enter into the Property for the purposes of
making soil tests and such other physical inspections and investigations as Buyer deems
necessary; provided, however, that Buyer shall not interfere with the operation of the Seller's
business conducted upon the Property and, provided further, that Buyer shall indemnify and hold
Seller harmless from all liabilities arising from entry upon or testing of the Property, including
but not limited to liabilities arising from mechanic's, materialmen's or other liens filed against the
Property connection with work performed or material furnished by or at the direction of Buyer.
11. Risk of Loss
If there is any loss or damage
Possession Date, for any reason including fire,
risk of loss shall be on Seller.
12. Time of Essence
to the Property between the date hereof and the
vandalism, flood, earthquake, or act of God, the
Time is of the essence in this Agreement.
13. Well Disclosure
Buyer acknowledges receipt of a well disclosure statement from Seller attached as
Exhibit B to this Agreement.
14. Individual Sewage Treatment System Disclosure
Seller discloses that there is not an individual sewage treatment system on or
serving the Property.
15. Right of Entry
Buyer and its duly authorized agents shall have the right during the period from
the date of this Agreement to Date of Closing, and thereafter in accordance with the Escrow
Agreement, to enter in and upon the Property in order to make, at Buyer's expenses, surveys,
measurements, wetland delineations, soil tests, and other tests that Buyer shall deem necessary.
Buyer agrees to restore any resulting damage to the Property and to indemnify, hold harmless
and defend Seller from any and all claims by third persons of any nature whatsoever arising from
Buyer's rights of entry hereunder, including all actions, suits, . proceedings, demands,
assessments, costs, expenses and attorneys' fees.
W
SELLER:
Michael J. Larson
Barbara Larson
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF FRIDLEY, MINNESOTA
By:
Chairman
By:
Executive Director
\\ PMVOU \WPDATA\MMLEWO\DOGIPUP.CHASE AND SALE (LARSON) DOC
7
ESCROW AGREEMENT
This Escrow Agreement is made this day of December, 1999, by and between
Michael J. Larson and Barbara Larson ( "Seller "), the Housing and Redevelopment Authority in
and for the City of Fridley, Minnesota ( "Buyer ") and ( "Escrow
Agent").
RECITALS
A. Seller and Buyer are parties to that certain Purchase and Sale Agreement
( "Purchase Agreement ") dated November _, 1999, for the purchase of certain
property located at 5901 NE 3`d Street, Fridley, Minnesota, and such Purchase and
Sale Agreement is attached hereto as Exhibit A.
B. Seller and Buyer desire to consummate the transaction contemplated by the
Purchase and Sale Agreement, and, escrow the funds into an Escrow Account
established hereby, pending the performance of the parties of certain obligations
as set forth herein.
C. Escrow Agent has agreed to be designated escrow agent for handling the
transaction contemplated by this Agreement.
AGREEMENT
NOW, THEREFORE, the parties hereto, intending to be bound hereby, agree as follows:
1. Appointment of Escrow Agent. Seller and Buyer hereby appoint and designate
Escrow Agent for the purpose set forth herein and Escrow Agent accepts such appointment. The
account established by the Escrow Agent for purposes of fulfilling its obligations hereunder shall
be referred to as "Escrow" or "Escrow Account ".
2. Definitions. Any capitalized terms used in this Agreement that are not
specifically defined herein shall refer to the definitions set forth in the Purchase and Sale
Agreement.
3. Deposit. On the date hereof, Buyer shall deposit with Escrow Agent, $60,000.00
(the "Deposit ").
4. Conditions to Release of Escrow Deposit.
Escrow Agent shall retain the Deposit until the following condition has been
fulfilled:
A. Delivery of Property in Acceptable Environmental Condition:
Buyer, at its expense, shall retain an environmental consultant for the
purposes of conducting an environmental assessment and testing of the
Property before possession is to be delivered to Buyer after Seller's lease
terminates and Seller vacates the Property. In the event Buyer's
environmental consultant identifies any unacceptable environmental
conditions or problems that require remediation or corrective action, the
Buyer's environmental consultant shall prepare a Response Action Plan
( "RAP ") which shall include an estimate of the costs to complete the RAP.
The Escrowed Funds shall be made available to Buyer for the purpose of
completing the remedial/corrective actions recommended by Buyer's
environmental consultant. After the RAP has been completed to Buyer's
satisfaction, and paid for from the Deposit, any remaining Escrowed
Funds shall be paid to the Seller.
5. Release of Escrowed Deposit. Buyer shall notify Escrow Agent and Seller when
Buyer believes the condition set forth in paragraph 4 has been met. At such time as Escrow
Agent has received notice from Buyer that the condition has been met, Escrow Agent shall pay
to Seller any remaining portions of the Deposit.
6. Disputes. In the event either Buyer or Seller disputes whether the condition of
release of the Deposit has been fulfilled, then either party may notify Escrow Agent and the other
party hereto, in writing, of its protest. The parties hereto agree to arbitrate any dispute relating to
whether or not the conditions to release of the Deposit in the Escrow Account have been met.
Such arbitration shall proceed pursuant to the Construction Industry Arbitration Rules of the
American Arbitration Association. Any decision of the arbitrators shall be binding. The
arbitrators shall be directed to award attorneys' fees as they may deem appropriate.
7. Interest. Escrow Agent is authorized to deposit the funds set forth in paragraph 3
hereof and such funds shall be placed in investments that are statutorily authorized municipal
investments as approved by the City's Finance Director. Interest on amounts deposited with
Escrow Agent pursuant to this Agreement shall be distributed to the Buyer on the termination
hereof.
8. Closing of Escrow Account: Termination of Escrow. This Escrow Agreement
may be closed as follows:
A. At such time the conditions set forth in paragraph 4 hereof are fulfilled
and Escrow Agent shall have released the Deposit and made the disbursements in accordance
with paragraph 5 and 6 hereof.
B. At such time as directed by the Arbitrator, if paragraph 6 hereof is
invoked.
C. If the conditions set forth in paragraph 4 have not been fulfilled on or
before August 1, 2000, the Escrow Agent shall release to the Buyer the Deposit and accrued
interest in the Escrow Account.
0)
Upon the closing of the Escrow Account in accordance with the provisions of this
Paragraph 8, this Agreement shall automatically terminate. Escrow Agent shall then notify
Buyer and Seller of the closing of the Escrow Account, the termination of this Agreement, and
the disbursements pursuant hereto.
9. Expenses. Seller and Buyer shall equally pay upon demand all charges of Escrow
Agent, and such attorneys' fees, expenses, and other costs as may be reasonably incurred in
connection with the administration of this Agreement by Escrow Agent. Escrow Agent agrees
that its fees in connection herewith shall be $
10. Liability of Escrow Agent. The Escrow Agent, in performing its duties under this
Agreement, shall not be liable to any party for damages, losses, or expenses, except for bad faith,
negligence, gross negligence or willful misconduct on its part. The Escrow Agent shall not incur
any such liability for (i) any act or failure to act made or omitted in good faith, or (ii) any action
taken or omitted in reliance upon any notice, instruction, consent or other instrument that the
Escrow Agent shall in good faith believe to be genuine, nor will the Escrow Agent be liable or
responsible for forgeries, fraud, impersonations, or determining the scope of any agent's
authority. The Escrow Agent shall not be responsible or liable for the correctness, genuineness,
or validity of any instrument delivered to it of for the identity or authority of any person
executing or depositing any instrument. The Escrow Agent shall have no duties beyond those
which are expressly set forth in this Agreement and shall not be required to take any action under
this Agreement involving any expense unless the payment of such expense shall be made or
provided for in a manner satisfactory to it.
11. Notices. Any notices required or permitted to be delivered under this Agreement
shall be in writing and shall be delivered by facsimile, hand delivered or mailed postage prepaid,
regular, registered, or certified mail, return receipt requested, addressed to Buyer, Seller, or
Escrow Agent, as the case may be, at the respective addresses and facsimile numbers set forth
opposite their names below, or at such other address or addresses as they may have theretofore
specified by written notice delivered in accordance herewith:
If to Seller: Michael J. Larson and Barbara Larson
Attn:
Fax:
If to Buyer: Housing and Redevelopment Authority
6431 University Avenue Northeast
Fridley, MN 55432
Attn: Barbara Dacy
Community Development Director
Fax: (612) 571 -1287
3
I
With a copy to: James R. Casserly
Southpoint Office Center, Suite 1100
1650 West 82nd Street
Minneapolis, MN 55431
Fax: (612) 885 -5969
If to Escrow Agent:
Attn:
Fax:
12. Governing Law. This Agreement shall be governed by and interpreted in
accordance with the laws of the State of Minnesota.
13. Heading. The headings used herein are for convenience only and are not to be
used in interpreting this Agreement.
14. Amendments. This Agreement is irrevocable and may be amended only by a
written amendment executed by all the parties hereto.
15. Assignment. This Agreement shall inure to the benefit of and bind the parties
hereto and their respective successors and assigns.
16. Counterparts. This Agreement may be executed in counterparts or with
counterpart signature pages.
[Signature Page Follows]
4
IN WITNESS WHEREOF, the parties have executed this Agreement.
G.\WPDATA\F%F MIM'\30\DOC1ESCaOW AOa a AaSON) DOC
5
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF FRIDLEY, MINNESOTA
By:
Chairman
By:
Executive Director
SELLER:
MICHAEL J. LARSON
BARBARA LARSON
ESCROW AGENT
Its:
HOUSING & REDEVELOPMENT 1!
AUTHORITY CJ7Y
Memorandum FM&
DATE: December 3, 1999
TO: William W. Burns, Executive Director of HRA
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Consider Acquisition Scattered Site Properties
Staff has identified three potential candidates for acquisition under the Housing
Replacement Program. The following memo summarizes each of the sites and
acquisition terms.
630 Ely Street
This home is located in the Riverview Heights neighborhood. The home has been on
the priority list for a number of years. In fact, in March of 1998 staff tried to acquire
the property from the former owner, but was unable to reach agreement on a price. At
that time the property was appraised for $41,500.
Since that time the property has continued to deteriorate in condition. Earlier this year
the bank foreclosed on the property and it was placed in HUD's inventory for re -sale to
the public. Staff was informed that the property had been for sale by HUD for several
weeks, but no offers were made.
Due to the HUD's special bidding procedure, a non - contingent offer was made to buy
the property for $48,000. This was HUD's minimum bid price. In 1989, the property
sold for $47,500.
The property was built in 1948 and has two bedrooms and a full bath with a total of
660 square feet of livable space. Based on information from our appraiser, the property
is showing numerous signs of deferred maintenance and deterioration. The home was
determined to be in poor condition and beyond the point of rehabilitation.
5mc j
Scattered Site Memo
December 3, 1999
Page 2
The lot is 50'x 110' and is considered non - conforming. As a result, it could not be sold
as a new home site. We could land bank the property or sell the site after demolition to
an adjoining property owner.
571 Lafayette Street
This home is also located in the Riverview Heights neighborhood. The property was
identified as potential candidate during a windshield survey earlier this fall.
The house has 2 bedrooms and a full bathroom and a total or 544 square feet of livable
area. It was also built in 1948. It is currently owner - occupied.
The property was inspected by both Lake State Appraisal service and the Chief Building
Official. Among the substandard conditions, were the following:
- Inadequate roof venting and rotting rafters
- Buckling of the south wall due to extensive water damage
- Poor ventilation and unsafe heating system
- Improper bathroom venting which has caused interior damage to the roof.
The total estimated cost to repair the items is over $15,000 which significantly above
the 15% threshold. The Chief Building Official feels very strongly that this property
should really be torn down, as opposed to remodeled.
This site is also 50'x 110' or 5,500 square feet which is considered substandard and
non - buildable. The adjoining parcel is also substandard, therefore an opportunity exists
to sell the site once vacant to create a conforming lot.
The property was appraised for $58,000 and the owner has accepted this offer amount.
It was assessed for tax purposes at $46,700 ($18,300 land and $28,400 building). The
home was purchased by Robert and Lori Schuneman in 1992 for $42,900.
6175 East River Rd.
This acquisition was tabled at the November HRA meeting. The HRA expressed
concerns over the purchase price ($74,000) of the property and asked staff to come
back with additional information.
As you recall, this site is located along East River Road on the corner of 61st Avenue.
The house has been on the priority list for several years and is highly visible along the
East River Road corridor.
Scattered Site Memo
December 3, 1999
Page 3
The home is in substandard condition due to deferred maintenance. The Chief Building
Inspector determined that there was water damage caused by a leaky foundation,
evidence of wood rot, a deteriorated roof, asbestos siding, poor lighting and ventilation,
and inadequate plumbing. The total cost to make these repairs (conservatively) is
$20,000 or roughly 1/3 of the value of the structure. In staffs opinion this clearly meets
the criteria of program.
We have meet with City Assessing staff and confirmed what we have been told by our
appraiser. Over the last 18 months properties of all types and particularly those under
$100,000 have been selling very strongly. People are paying premiums for lower- priced
housing, regardless of condition, knowing that multiple repairs are often required.
The ultimate purpose of this acquisition (and program) is to have a long term impact on
the neighborhood. Over time the cost to repair this property will exceed its value.
There will be little economic incentive for an owner to make this kind of investment.
Intervening now is really a preventive strategy to eliminate a substandard property and
help prevent blight from spreading further.
Recommendation
Staff recommends that the Authority approve the following:
1. Approve the purchase of 630 Ely Street for $48,000 from the U.S. Department of
Housing and Urban Development.
2. Approve the purchase of 571 Lafayette Street for $58,000 from Robert and Lori
Schuneman.
3. Approve the purchase of 6175 East River Road for $74,000 from Patricia Melich.
4. Authorize the Executive Director to enter into the necessary purchase
agreements and execute all of the appropriate documents to complete the
transactions.
M -99 -290
Page 1 of 6
Address: 571 Lafayette St NE Project
Fridley, MN 55432
Parcel
REAL ESTATE SALE/PURCHASE AGREEMENT
THIS AGREEMENT, made as of the '12 "`day of No y , , 1999, by and
between Robert N. and Lori L. Schuneman, husband and wife, hereinafter referred to as
Seller, and Housing & Redevelopment Authority in and for the City of Fridley, a political
subdivision of The City of Fridley, a municipal corporation, hereinafter referred to as
Buyer.
WITNESSETH:
WHEREAS, Seller owns certain real estate situated at 571 Lafayette St NE,
Fridley, Minnesota, and legally described below; and
WHEREAS, Buyer wishes to purchase and Seller is willing to sell to Buyer said
real estate; and
WHEREAS, the parties wish to define their respective rights, duties and
obligations related to the sale/purchase of said real estate.
NOW, THEREFORE, in consideration of the mutual promises and the respective
agreements contained herein, the parties hereby agree as follows:
The Seller hereby agrees to sell and the Buyer hereby agrees to purchase the
following descriled real estate located in the City of Fridley, State of Minnesota, to -wit:
RIVER VIEW HEIGHTS, CITY OF FRIDLEY LOTS 13 & 14, BLK C, RIVER
VIIEW HEIGHTS, (SUBJ TO EASE RESERVED FOR BENEFIT OF OTHER
OWNERS OF LOTS IN AID BLK OVER REAR 8 FT OF LOTS 13 AND 14 OF
SAID BLK TO BE USED IN COMMON WITH OTHERS FOR PURPOSE OF
HAVING ACCESS TO & RETURNING FROM A WELL LOCATED ON
LOTS 13 & 14 & INCL. RTS TO TAKE WATER FROM SAID WELL)
Page 2 of 6
2. Purchase Price
The purchase price for the subject property shall be the sum of Fifty -Eight
Thousand and 00 /100 Dollars ($58,000.00) payable at closing.
3. Closing
The closing shall be on or before December 31, 1999 or with in 30 days after all
title objections have been satisfied by the Seller, if any have been made by the Buyer.
4. Contingence
This offer is contingent upon approval by the Fridley HRA for a period of 30 days
after signing of the Purchase Agreement by the Seller.
5. Possession
The Seller further agrees to deliver possession not later than six (6) months, after
closing provided that all conditions of this agreement have been complied with. All
charges for city water, city sewer, electricity, and natural gas shall be prorated between
the parties as of date of possession. Seller agrees to remove ALL DEBRIS AND ALL
PERSONAL PROPERTY NOT INCLUDED HEREIN from the property by possession
date. Any personal property not removed by the date of possession, shall be considered
the property of the Buyer. See P,ddendiun "C"
6. Deed/Marketable Title
Subject to performance by the Buyer, the Seller agrees to execute and deliver a
Warranty Deed conveying marketable title to said premised subject only to the following
exceptions:
(a) Building and zoning laws, ordinances, State and Federal regulations
(b) Restrictions relating to use or improvement of premises without effective
forfeiture provision.
(c) Reservation of any minerals or mineral rights to the State of Minnesota.
(d) Utility and drainage easements which do not interfere with present
improvements.
(e) Rights of tenants as follows: (unless specified, not subject to tenancies)
7. Title
The Seller shall, within a reasonable time after approval of this agreement, furnish
an abstract of title, or a Registered Property Abstract certified to date to include proper
searches covering bankruptcies, and State and Federal judgments and liens. The Buyer
Page 3 of 6
shall be allowed 15 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 the Seller shall be allowed 60 days to make such title
marketable. Pending correction of title the payments hereunder required shall be
postponed, but upon correction of title and within 10 days after written notice to the
Buyer, the parties shall perform this agreement according to its terns.
If Seller shall fail to have said exceptions removed or satisfied within the time
provided, Buyer may elect to do one or more of the following: (a) remove or satisfy the
exceptions on behalf of Seller and at Seller's cost and expense, all of which costs and
expenses shall be deducted from the purchase price at closing; (b) elect to purchase the
property subject to the exceptions; and/or (c) declare this Agreement null and void (in
which case neither party shall have any further liability or obligation to the other. In the
event Buyer elects to remove or satisfy the exceptions on behalf of Seller in accordance
with alternative (a) above, Seller shall cooperate with and assist Buyer in all reasonable
respects.
8 Real Estate Taxes
Real estate taxes due and payable in and for the year of closing shall be prorated
between Seller and Buyer on,a calendar basis to the actual date of closing.
9. Special Assessments
- - Per-d; r,% S P z6% cLL assess rne4s -fo be. P i d 6 bier,
Seller shall pay o to of closing all installments of special assessments. Seller
shall pay on date of closing all o ecial esr��n s levied as of the date of closing. CM
Seller shall provide for payment p ' assessments pending as of the date of
closing for improveme at have been order city or other assessing
authorities. Sel 1 pay on the date of closing, any defer es.
10. Seller Warranties
Seller warrants that buildings, are or will be, constructed entirely within the
boundary lines of the property. Seller warrants that there is a right of access to the
property from a public right of way. These warranties shall survive the delivery of the
deed or contract for deed.
Seller warrants that prior to the closing, payment in full will have been made for
all labor, materials, machinery, fixtures or tools furnished within the 120 days
immediately preceding the closing. in connection with construction, alteration or repair of
any structure on or improvement to the property.
Page 4 of 6
Seller warrants upon execution of this Agreement, Seller will not rent the property
once it is vacated by any person now occupying same.
Seller warrants Seller has executed no option to purchase, right of first refusal, or
any other agreement giving any person or other entity the right to purchase or otherwise
acquire any interest in the property, and Seller is unaware of any option to purchase, right
of first refusal, or other similar rights affecting the property, except as otherwise noted in
the title commitment for the property.
Seller has received no notice of any action, litigation, investigation or proceeding
of any kind pending against Seller, nor to the best of Seller's knowledge is any action,
litigation, investigation, or proceeding pending or threatened against the Subject
Premises, or any part thereof.
On the Date of Closing, there will be no service contracts in effect in connection
with the Subject Premises, except those which are terminable on thirty (30) days' written
notice.
If There is any loss or damage to the property between the date hereof and the
date of closing, for any reason including fire, vandalism, flood, earthquake, or act of God,
the risk of loss shall be on Seller. If property is destroyed or substantially damaged
before the closing date, this Purchase Agreement shall become null and void, at Buyer's
option, and earnest money shall be refunded to Buyer; Buyer and Seller agree to sign
cancellation of Purchase Agreement.
Time is of the essence in this Purchase Agreement.
Seller understands and agrees that this Purchase Agreement is subject to
acceptance by Buyer in writing.
14. Default
If the title to said property shall be found marketable or be so.made within said
tune, and said Buyer shall default in any of the agreements and continue in default for a
period of 10 days, then and in that case the Seller may terminate this contract and on such
termination all the payments made upon this contract shall be retained by said Seller, as
liquidated damages, time being of the essence hereof. This provision shall not deprive
Page 5 of 6
either party of the right of enforcing the specific performance of this contract provided
such contract 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.
To the best of the Seller's knowledge there are no hazardous substances,
underground storage tanks, or wells except herein noted:
Buyer acknowledges receipt of a well disclosure statement from Seller attached as
Exhibit A to this Agreement.
7
Seller discloses that there is not an individual sewage treatment system on or
serving the Property.
It is specifically agreed that the Real Property is being conveyed to the Buyer by
the Seller in "As -Is Condition' ( "with all faults ").
Buyer is duly authorized agents shall have the right during the period from the
date of this Agreement to closing, to enter in and upon the Premises in order to make, at
Purchaser's expense, surveys, measurements, wetland delineations, soil tests, and other
tests that Buyer shall deem necessary. Buyer agrees to restore any resulting damage to
the Premises and to indemnify, hold harmless and defend Seller from any and all claims
by third persons of any nature whatsoever arising from Buyer's right of entry hereunder,
including all actions, suits, proceedings, demands, assessments, costs, expenses and
attorneys' fees.
20, Brokers Commissions
In the event Seller has retained the services of any agent, person, corporation or
firm to assist in the sale of the property who, in turn, is entitled to a commission by
reason of this Agreement and the closing hereunder, Seller hereby agrees to indemnify
and hold Buyer harmless from any liability arising therefrom.
Page 6 of 6
This Purchase Agreement, any attached exhibits and any addenda or amendments
signed by the parties, shall constitute the entire agreement between Seller and Buyer, and
supersedes any other written or oral agreements between Seller and Buyer. This Purchase
Agreement can be modified only in writing signed by Seller and Buyer.
22, Incidental Expenses
All expenses of examination of title, transfer tax, preparation and recording of
deed, appraisal, closing fees, lot surveys, etc. will be paid by the Buyer. Any cost
incurred to remove any cloud on the title to convey a good and marketable title to said
premised subject shall be the responsibility of the Seller.
The Sellers acknowledge that they have voluntarily entered this Purchase
Agreement and, as such, acknowledge that the Sellers are not "displaced persons" as
defined by The Uniform Real Property Acquisition and Relocation Act of 1970 as
amended and M.S. 117.52 and hence the Sellers are not eligible for any relocation
assistance or benefits.
The undersigned, owner of the above land, does hereby approve the above agreement and
the sale thereby made.
SELLER: M \
1, ` J 1
I hereby agree to purchase the said property for the price and upon the terns above
mentioned, and subject to all conditions herein expressed.
WELL DISCLOSURE STATEMENT Addendum "A"
This form approved by the Minnesola Association of
REALTORS®, which disclaims any liability
arising out of use or misuse or this form.
O fees, Mlnnsao Association of REALTORS®, Edina, MN
1. Dale iu DI + zz , 1 R�%`1
2. Page 1 of _I Pages: THE REQUIRED MAP IS
3. ATTACHED HERETO AND MADE A PART HEREOF
Minnesota Statutes Sec, 1031.235 requires that before signing an agreement to sell or transfer real property, the Seller
must disclose Information In writing to the Buyer about the status and location of all known wells on the property. This
requirement is satisfied by delivering to the Buyer either a statement by the Seiler that the Seger does not know of any
wells on the property, or a disclosure statement Indicating the legal description and county, and a map showing the
location of each well. In the disclosure statement the Sege must Indicate, for each well, whether the well is In use, not In
use or sealed
Unless the Buyer and Seller agree to the contrary. In writing, before the closing of the sale, a Seger who fails to disclose
the existence or known status of a well at the time of sale and knew or had reason to know of the existence or known
status of the wag, Is gable to the Buyer for costs rotating to sealing of the well and reasonable attorney lees for
collection of costs from the Seger, H the action is commenced within sic years alter the dale the Buyer closed the
purchase of the real property where Iha well Is located.
Legal requirements exist relating to various aspects of location and status of wens. Buyer Is advised to contact the local
unft(s) of govemmenL state agency, or qualified professional which regulates wells for further Information about these
Issues.
Instructions for completion of this form are on the reverse side.
. PROPERTY DESCRIPTION
J. Street address: !-% 71 ' i
LEGAL DESCRIPTION
Se f
3. WELL DISCLOSURE STATEMENT
3. (CHECK THE APPROPRIATE BOX,)
'. O The Seger cerWies that the Seller does not know of any wells on the above described real property.
'e, (If We option Is checked, then skip to the feel One and sign and date this statemenL)
9. O The Seiler certilles that the following welts are located on the above described real property.
0. MN Unique ' , Wen Year of Well IN USE NOT IN SEALED
11• Well No. Depth Coral Type USE
2. Weil 1 —1 — O O lzl��
Well 2 0 0 0
4. Well 3 D O O
5. NOTE: See definition of terms "IN USE," "NOT IN USE," and "SEALED" on lines 82-88. If a well is not In
.e, use, It must be sealed by a licensed well contractor or a well owner must obtain a maintenance permit
.7, from the Minnesota Department of Health and pay an annual maintenance fee. If a well Is operable and
Ia. property maintained, a maintenance permit Is not required.
19. SEALED WELL INFORMATION
1o. For each wag designated as sealed above. complete this section.
i1. When was the wan sealed? f gwa\o ti4 S&',,r c
12. Who sealed the well? - tine'.)io i n" mrer
i3. Was a Sealed Well Report flied with the Minnesota Department of Health? Yes No Unknown ✓
4. MAP
,5. Complete the attached MAP showing the location of each well on the real property.
S. This disclosure Is not a warranty of any kind by the Seller(s) or any Agent(s) representing any Parly(s) In this
transaction, and Is not a substitute for arty inspections or warranties the Party(s) may wish to obtain.
CERTIFICATION BY SELLER
Isaffily lh the Inforritaill provided above is accurate and CTIele to the best of my knowledge.
{sent« f mete) (serer «Deeipnu RepreeerdalMs) lea
BUYER'S ACKNOWLEDGEMENT
a"" (00) lestwl (M)
ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER
bwhl�& W►1SGn
(Wensee)
�o (Son -be- 'e-1od
(Cornpany)
(Licermes)
Addendum °B"
NOTICE
is Seller's Ag ntBuyer's Agen ual Agent/Non -Agent
is Seller's Agent/Buyer's Agent/Dual Agent/Non -Agent
c' ue on
THIS NOTICE DOES NOT SATISFY MINNESOTA STATUTORY AGENCY DISCLOSURE REQUIREMENTS
DUAL AGENCY REPRESENTATION
DUAL AGENCY REPRESENTATION DOE /DOES NOT LY IN THIS TRANSACTION
Broker represents both the Seller(s) and the Buyer(s) of the property involved in this transaction, which
creates a dual agency. This means that Broker and it salespersons are prohibited from advocating
exclusively for either party. Broker cannot act as a dual agent in this transaction without the consent of
both Seller(s) and Buyer(s). Seller(s) and Buyer(s) acknowledge that:
1. confidential information communicated to Broker which regards price, terms, or motivation to
buy or sell will remain confidential unless Seller(s) or Buyer(s) instructs Broker in writing to
disclose this information. Other information will be sham.
2. Broker and its salespersons will not represent the interest of either party to the detriment of the
other, and
3. within the limits of dual agency, Broker and its salespersons will work diligently to facilitate the
mechanics of the sale.
With the knowledge and understanding of the explanation above, Seller(s) and Buyer(s) authorize and
instruct the Broker and its salespersons to act as dual agents in this transaction.
A- Ve X i .=\.--
1
Buyer
Buyer
Addendum "C"
ADDENDUM TO PURCHASE AGREEMENT
SELLER HOLDOVER POSSESSION
AGREEMENT "RENT BACK"
Date: Nov, ZZ , t c q 9'
Page I of I Pages
Amendment to the Purchase Agreement between Buyer and Seller, dated 11 -7.2 -q
about the purchase and sale of the property at 571 Lafayette St. NE, Fridley,
Minnesota.
The Buyer and Seller agree as follows:
NATURE AND PURPOSE: This Amendment gives Seller the right to remain in and
occupy the property after dosing on the purchase of the property. This Amendment remains
in effect after the closing.
POSSESSION DATE: Seller agrees to deliver possession of the property to Buyer on
or before June 1, 2000.
SECURITY AND DAMAGE DEPOSIT: On N/A Seller will deposit $0.00 with Buyer
in certified funds, as a security and damage deposit. The deposit will earn statutory interest at
the rate prescribed in Minn. Stat. Section 504.20 subd. 2. The Buyer will refund the deposit,
plus interest, to Seller, or after Seller moves out of the property and gives possession to
Buyer. Buyer may keep amounts necessary to cover unpaid rent or to cover the cost of
repairing damage to the property (including personal property and appliances) caused by
Seller. If the Buyer keeps all or a part of the deposit, Buyer will provide a written statement
within 21 days stating the reason for withholding.
MONTHLY RENT: Seller will pay Buyer $0.00 per month beginning on the Closing
Date and continuing through the above Possession Date. If Seller remains in the property
after the above Possession Date, Seller will pay additional monthly charges to Buyer in
advance.
UTILITIES: Seller agrees to continue all utility services in Seller's name and to pay all
bills for utility service during the period of the Seller's possession, as they become due.
INSURANCE: Seller will maintain liability insurance for the property through the date
that Seller vacates the property. Seller is responsible for Seller's personal property insurance.
MAINTENANCE: Seller will be responsible for all repairs and normal maintenance of
the property and personal property covered by the Purchase Agreement from and after the
Closing Date. Seller will keep the property in reasonable repair and order.
USE OF PROPERTY: During the term of this Agreement, Seller will occupy the
property as Seller's personal residence and Seller will not make any changes to the property.
Seller will not assign nor sublease the property under this Agreement.
HOLD HARMLESS: Buyer is not responsible for liabilities, claims, or expenses from
Seller's use, possession, and occupancy of the property.
"AS IS ": The Buyer makes no warranties or statements with regard to the condition
of property nor to its suitability for occupancy by the Seller. The Seller rents the property "as
is ", with all faults.
QUIET ENJOYMENT: Buyer promises that upon Seller's performance of Seller's
obligation in this Agreement, Seller will peacefully and quietly have, hold and enjoy the
property according to this Agreement.
TERMINATION: If Seller fails to leave the property and give possession to Buyer on
the Possession Date specified above, Buyer will provide Seller with seven days advance
written notice to leave the property. Notice is considered given on the date mailed to Seller at
the above address. Seller will leave the property in the same condition as it was at the time of
closing. If Seller fails to leave the property, Buyer is authorized to take any action permitted by
law to take possession of the property. Buyer will be entitled to recover damages from Seller
for Buyer's loss of use in the amount of $0.00 per day beginning with Possession Date
specified above, in addition to all charges and reimbursements stated in this Agreement, and
all reasonable costs which result from obtaining possession of the property and enforcing the
terms of the Agreement, including reasonable attorney's fees.
All other terms and conditions of the Purchase Agreement will remain.
e -o o r� 1 - as -Rg
(Seller) (Date)
(Seller) (Date)
(Buyer) (Date)
(Buyer) (Date)
THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYERS AND SELLERS.
IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL.
Page 1 of 6
Address: 6175 E River Road Project
Fridley, MN
Parcel
REAL ESTATE SALE/PURCHASE AGREEMENT
THIS AGREEMENT, made as of the 116'", day of & y, , 1999, by and
between Patricia A. Melich, hereinafter referred to as Seller, and Housing &
Redevelopment Authority in and for the City of Fridley, a political subdivision of The
City of Fridley, a municipal corporation, hereinafter referred to as Buyer.
WITNESSETH:
WHEREAS, Seller owns certain real estate situated at 6175 E River Road,
Fridley, Minnesota, and legally described below; and
WHEREAS, Buyer wishes to purchase and Seller is willing to sell to Buyer said
real estate; and
WHEREAS, the parties wish to define their respective rights, duties and
obligations related to the sale /purchase of said real estate.
NOW, THEREFORE, in consideration of the mutual promises and the respective
agreements contained herein, the parties hereby agree as follows:
The Seller hereby agrees to sell and the Buyer hereby agrees to purchase the
following described real estate located in the City of Fridley, State of Minnesota, to -wit:
Lot 13 and the West %z of Lot 14, Block 18, Fridley Park,
according to the duly recorded plat thereof.
Page 2 of 6
2. Purchase Price
The purchase price for the subject property shall be the sum of Seventy -four
Thousand and 00 /100 Dollars ($74,000.00) payable at closing.
3. Contingencx
This offer is contingent upon approval by the Fridley HRA for a period of 30 days
after signing of the Purchase Agreement by the Seller.
44. C
The closing shall be on or before December 31, 1999 or with in 30 days after all
title objections have been satisfied by the Seller, if any have been made by the Buyer.
5. Possession
The Seller further agrees to deliver possession not later than six (6) months, after
closing provided that all conditions of this agreement have been complied with. All
charges for city water, city sewer, electricity, and natural gas shall be prorated between
the parties as of date of possession. Seller agrees to remove ALL DEBRIS AND ALL
PERSONAL PROPERTY NOT INCLUDED HEREIN from the property by possession
date. Any personal property not removed by the date of possession, shall be considered
the property of the Buyer. See Addendum °c°
6. Deed/Marketable Title
Subject to performance by the Buyer, the Seller agrees to execute and deliver a
Warranty Deed conveying marketable title to said premised subject only to the following
exceptions:
(a) Building and zoning laws, ordinances, State and Federal regulations
(b) Restrictions relating to use or improvement of premises without effective
forfeiture provision.
(c) Reservation of any minerals or mineral rights to the State of Minnesota.
(d) Utility and drainage easements which do not interfere with present
improvements.
(e) Rights of tenants as follows: (unless specified, not subject to tenancies)
7 Title
The Seller shall, within a reasonable time after approval of this agreement, furnish
an abstract of title, or a Registered Property Abstract certified to date to include proper
searches covering bankruptcies, and State and Federal judgments and liens. The Buyer
Page 3 of 6
shall be allowed 15 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 the Seller shall be allowed 60 days to make such title
marketable. Pending correction of title the payments hereunder required shall be
postponed, but upon correction of title and within 10 days after written notice to the
Buyer, the parties shall perform this agreement according to its terms.
If Seller shall fail to have said exceptions removed or satisfied within the time
provided, Buyer may elect to do one or more of the following: (a) remove or satisfy the
exceptions on behalf of Seller and at Seller's cost and expense, all of which costs and
expenses shall be deducted from the purchase price at closing; (b) elect to purchase the
property subject to the exceptions; and/or (c) declare this Agreement null and void (in
which case neither party shall have any further liability or obligation to the other. In the
event Buyer elects to remove or satisfy the exceptions on behalf of Seller in accordance
with alternative (a) above, Seller shall cooperate with and assist Buyer in all reasonable
respects.
$ Real Estate Taxes
Real estate taxes due and payable in and for the year of closing shall be prorated
between Seller and Buyer on a calendar basis to the actual date of closing.
9 Special Assessments
Seller shall pay on date of closing all installments of special assessments. Seller
shall pay on date of closing all other special assessments levied as of the date of closing.
Seller shall provide for payment of all special assessments pending as of the date of
closing for improvements that have been ordered by the city or other assessing
authorities. Seller shall pay on the date of closing, any deferred taxes.
10. Seller Warranties
Seller warrants that buildings, are or will be, constructed entirely within the
boundary lines of the property. Seller warrants that there is a right of access to the
property from a public right of way. These warranties shall survive the delivery of the
deed or contract for deed.
Seller warrants that prior to the closing, payment in full will have been made for
all labor, materials, machinery, fixtures or tools furnished within the ' 120 days
immediately preceding the closing in connection with construction, alteration or repair of
any structure on or improvement to the property.
Page 4 of 6
Seller warrants upon execution of this Agreement, Seller will not rent the property
once it is vacated by any person now occupying same.
Seller warrants Seller has executed no option to purchase, right of first refusal, or
any other agreement giving any person or other entity the right to purchase or otherwise
acquire any interest in the property, and Seller is unaware of any option to purchase, right
of first refusal, or other similar rights affecting the property, except as otherwise noted in
the title commitment for the property.
Seller has received no notice of any action, litigation, investigation or proceeding
of any kind pending against Seller, nor to the best of Seller's knowledge is any action,
litigation, investigation, or proceeding pending or threatened against the Subject
Premises, or any part thereof.
On the Date of Closing, there will be no service contracts in effect in connection
with the Subject Premises, except those which are terminable on thirty (3 0) days' written
notice.
If There is any loss or damage to the property between the date hereof and the
date of closing, for any reason including fire, vandalism, flood, earthquake, or act of God,
the risk of loss shall be on Seller. If property is destroyed or substantially damaged
before the closing date, this Purchase Agreement shall become null and void, at Buyer's
option, and earnest money shall be refunded to Buyer; Buyer and Seller agree to sign
cancellation of Purchase Agreement.
12. Time of Essence
Time is of the essence in this Purchase Agreement.
13. Acceptance
Seller understands and agrees that this Purchase Agreement is subject to
acceptance by Buyer in writing.
14. Default
If the title to said property shall be found marketable or be so made within said
time, and said Buyer shall default in any of the agreements and continue in default for a
period of 10 days, then and in that case the Seller may terminate this contract and on such
termination all the payments made upon this contract shall be retained by said Seller, as
liquidated damages, time being of the essence hereof. This provision shall not deprive
Page 5 of 6
either party of the right of enforcing the specific performance of this contract provided
such contract 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.
15. Environmental Concerns
To the best of the Seller's knowledge there are no hazardous substances,
underground storage tanks, or wells except herein noted:
16. Well Disclosure
Buyer acknowledges receipt of a well disclosure statement from Seller attached as
Exhibit A to this Agreement.
17, Individual Sewage Treatment System Disclosure
Seller discloses that there is not an individual sewage treatment system on or
serving the Property.
18. As -Is -Basis
It is specifically agreed that the Real Property is being conveyed to the Buyer by
the Seller in "As -Is Condition" ( "with all faults ").
19. Right of EntrX
Buyer is duly authorized agents shall have the right during the period from the
date of this Agreement to closing, to enter in and upon the Premises in order to make, at
Purchaser's expense, surveys, measurements, wetland delineations, soil tests, and other
tests that Buyer shall deem necessary. Buyer agrees to restore any resulting damage to
the Premises and to indemnify, hold harmless and defend Seller from any and all claims
by third persons of any nature whatsoever arising from Buyer's right of entry hereunder,
including all actions, suits, proceedings, demands, assessments, costs, expenses and
attorneys' fees.
20. Brokers Commissions
In the event Seller has retained the services of any agent, person, corporation or
firm to assist in the sale of the property who, in turn, is entitled to a commission by
reason of this Agreement and the closing hereunder, Seller hereby agrees to indemnify
and hold Buyer harmless from any liability arising therefrom.
Page 6 of 6
21. Entire Agreement
This Purchase Agreement, any attached exhibits and any addenda or amendments
signed by the parties, shall constitute the entire agreement between Seller and Buyer, and
supersedes any other written or oral agreements between Seller and Buyer. This Purchase
Agreement can be modified only in writing signed by Seller and Buyer.
22, Incidental Expenses
All expenses of examination of title, transfer tax, preparation and recording of
deed, appraisal, closing fees, lot surveys, etc. will be paid by the Buyer. Any cost
incurred to remove any cloud on the title to convey a good and marketable title to said
premised subject shall be the responsibility of the Seller.
23. Ineligible for Relocation Assistance
The Sellers acknowledge that they have voluntarily entered this Purchase
Agreement and, as such, acknowledge that the Sellers are not "displaced persons" as
defined by The Uniform Real Property Acquisition and Relocation Act of 1970 as
amended and M.S. 117.52 and hence the Sellers are not eligible for any relocation
assistance or benefits.
The undersigned, owner of the above land, does hereby approve the above agreement and
the sale thereby made.
SELLER:
I � w W-0 - M
1
I hereby agree to purchase the said property for the price and upon the terms above
mentioned, and subject to all conditions herein expressed.
BUYERS:
WELL DISCLOSURE STATEMENT Addendi n "A"
This form approved by the Minnesota Association of
REALTORS®, which disclaims any liability
arising out of use or misuse of this form.
01998. Minn ota Association of REALTORS®, Edina, MN
1. Date i�4, Ito, 1999
2. Page 1 of 1 Pages: THE REQUIRED MAP IS
3. ATTACHED HERETO AND MADE A PART HEREOF
Minnesota Statutes Sec. 1031.235 requires that before signing an agreement to sell or transfer real property, the Seller
must disclose Information in writing to the Buyer about the status and location of all known wells on the property. This
requirement Is satisfied by delivering to the Buyer either a statement by the Seller that the Seller does not know of any
wells on the property, or a disclosure statement Indicating the legal description and county, and a map showing the
location of each well. In the disclosure statement the SeOeLmust Indicate, for each well, whether the well is in use, not In
use or sealed. ,
Unless the Buyer and Seller agree to the contrary, In writing, before the closing of the sale, a Seller who fails to disclose
the existence or known status of a well at the time of sale and knew or had reason to know of the existence or known
status of the well, is liable to the Buyer for costs relating to sealing of the well and reasonable attorney fees for
collection of costs from the Seller. N the action Is commenced within six years after the date the Buyer closed the
purchase of the real property where the well is located.
Legal requirements exist relating to various aspects of location and status of wells. Buyer is advised to contact the local
unft(s) of government, state agency, or qualified professional which regulates wells for further Information about these
Issues.
Instructions for completion of this form are on the reverse side.
PROPERTY DESCRIPTION
Street address: _ (a 1-7 S
counb
LEGAL DESCRIPTION
Lot- 13 0:.4 +i-%e- West I/z of LOt (y I Klocle 19,
f= riA1e.► Pazofle_ n,at•nwi)%jx *4, P Ai.0.. r P r ,A -A nl &
WELL DISCLOSURE STATEMENT
(CHECK THE APPROPRIATE BOX.)
6 The Seller certifies that the Seller does not know of any wells on the above described real property.
(If this option is checked, then skip to the last line and sign and date this statement)
❑ The Seller certifies that the following wells are located on the above described real property.
MN Unique ' , Well Year of Well
Well No. Depth Const. Type
Wen I
Well 2
Well 3
IN USE NOT IN SEALED
USE
❑ ❑ ❑
❑ ❑ ❑
❑ ❑ ❑
NOTE: See definition of terms "IN USE," "NOT IN USE," and "SEALED" on lines 82-88. If a well Is not In
use, it must be sealed by a licensed well contractor or a well owner must obtain a maintenance permit
from the Minnesota Department of Health and pay an annual maintenance fee. H a well is operable and
properly maintained, a maintenance permit is not required.
SEALED WELL INFORMATION
For each well designated as sealed above, complete this section.
When was the well sealed?
Who sealed the well?
Was a Sealed Well Report filed with the Minnesota Department of Health? Yes No Unknown
MAP
Complete the attached MAP showing the location of each well on the real property.
This disclosure Is not a warranty of any kind by the Seller(s) or any Agent(s) representing any Party(s) in this
wnsaction, and is not a substitute for any inspections or warranties the Party(s) may wish to obtain.
,'ERTIFICATION BY SELLER
ce ' that the information p ded above Is accurate and complete to the best of my knowledge.
,Asi or llealpneled ROPM80iftlIve) (Date) (seller or Ves%pWed Repmse 40") (Oats)
3UYER'S ACKNOWLEDGEMENT
410 owe) PUY" owe)
ORIGINAL COPY TO LISTING BROKER; COPIES TO SELLER, BUYER, SELLING BROKER
1
Addendum "C°
ADDENDUM TO PURCHASE AGREEMENT
SELLER HOLDOVER POSSESSION
AGREEMENT "RENT BACK"
Date: Nov-w,1999
Page I of ? Pages
Amendment to the Purchase Agreement between Buyer and Seller, dated NOV . I to
199 9 about the purchase and sale of the property at 6175 E. River Road, Fridley,
Minnesota.
The Buyer and Seller agree as follows:
NATURE AND PURPOSE: This Amendment gives Seller the right to remain in and
occupy the property after closing on the purchase of the property. This Amendment remains
in effect after the closing.
POSSESSION DATE: Seller agrees to deliver possession of the property to Buyer on
or before June 1, 2000.
SECURITY AND DAMAGE DEPOSIT: On N/A Seller will deposit $0.00 with Buyer
in certified funds, as a security and damage deposit. The deposit will earn statutory interest at
the rate prescribed in Minn. Stat. Section 504.20 subd. 2. The Buyer will refund the deposit,
plus interest, to Seller, or after Seller moves out of the property and gives possession to
Buyer. Buyer may keep amounts necessary to cover unpaid rent or to cover the cost of
repairing damage to the property (including personal property and appliances) caused by
Seller. If the Buyer keeps all or a part of the deposit, Buyer will provide a written statement
within 21 days stating the reason for withholding.
MONTHLY RENT: Seller will pay Buyer $0.00 per month beginning on the Closing
Date and continuing through the above Possession Date. If Seller remains in the property
after the above Possession Date, Seller will pay additional monthly charges to Buyer in
advance.
UTILITIES: Seller agrees to continue all utility services in Seller's name and to pay all
bills for utility service during the period of the Seller's possession, as they become due.
INSURANCE: Seller will maintain liability insurance for the property through the date
that Seller vacates the property. Seller is responsible for Seller's personal property insurance.
MAINTENANCE: Seller will be responsible for all repairs and normal maintenance of
the property and personal property covered by the Purchase Agreement from and after the
Closing Date. Seller will keep the property in reasonable repair and order.
USE OF PROPERTY: During the term of this Agreement, Seller will occupy the
property as Seller's personal residence and Seller will not make any changes to the property.
Seller will not assign nor sublease the property under this Agreement.
HOLD HARMLESS: Buyer is not responsible for liabilities, claims, or expenses from
Seller's use, possession, and occupancy of the property.
"AS IS ": The Buyer makes no warranties or statements with regard to the condition
of property nor to its suitability for occupancy by the Seller. The Seller rents the property "as
is ", with all faults.
QUIET ENJOYMENT: Buyer promises that upon Seller's performance of Seller's
obligation in this Agreement, Seller will peacefully and quietly have, hold and enjoy the
property according to this Agreement.
TERMINATION: If Seller fails to leave the property and give possession to Buyer on
the Possession Date specified above, Buyer will provide Seller with seven days advance
written notice to leave the property. Notice is considered given on the date mailed to Seller at
the above address. Seller will leave the property in the same condition as it was at the time of
closing. If Seller fails to leave the property, Buyer is authorized to take any action permitted by
law to take possession of the property. Buyer will be entitled to recover damages from Seller
for Buyer's loss of use in the amount of $0.00 per day beginning with Possession Date
specified above, in addition to all charges and reimbursements stated in this Agreement, and
all reasonable costs which result from obtaining possession of the property and enforcing the
terms of the Agreement, including reasonable attorney's fees.
All other terms and conditions of the Purchase Agreement will remain.
Lit �1
(Seller) (Date)
(Seller) (Date)
(Buyer) (Date)
(Buyer) (Date)
THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYERS AND SELLERS.
IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL.
5.d
HOUSING & REDEVELOPMENT
AUTHORITY
Memorandum 'WFMDL%
DATE: December 3, 1999
TO: William W. Burns, Executive Director of HRA Ak to
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Consider Acquisition of Vacant Commercial Sites along Old Central
As outlined in the previous cover memo, staff has been working over the last several
months to identify potential sites for future redevelopment. Much of our analysis was
done as part of the City's 2020 Comprehensive Plan update, which is nearing
completion.
One of the areas identified for redevelopment is the Old Central corridor, particularly
the area between Mississippi Street and Rice Creek Road. As you know, this area will
serve as an important connection between the existing Medtronic campus and their new
facility at Lake Pointe.
Old Central is generally characterized by a mixture of small commercial buildings,
underutilized property and a number of vacant sites. Although, redevelopment of the
corridor may be 5 to 10 years off, there is an opportunity to assemble parcels now
using our TIF resources that won't be available after this year. We did have preliminary
discussions with the HRA about this concept at their October meeting.
The following memo describes three vacant sites that represent redevelopment
opportunities. We have had each of the sites appraised and have negotiated tentative
agreements to acquire the sites subject to HRA approval on December 9"'. In addition,
we have also put in place contingencies that will allow the HRA to back out of the
transactions, should we find environmental contamination or soil problems.
Site #1
This site is comprised of two adjacent vacant parcels (Lots 2 and 3, Block 1, Herwal's
Rice Creek Addition) which are located along the west side of Old Central Avenue
,,
Memo Regarding Old Central Lots
December 3, 1999
Page 2
between Rice Creek Road and Mississippi Street. Both parcels are zoned CR -1 General
Business and are approximately 33,000 square feet in size (total site is roughly 1.5
acres).
The property is owned by a group of investor's lead by Dan Erickson of Minneapolis.
The group has owned the property for a number of years, but has never developed it.
The property was appraised for $166,000 or about $2.50 per square foot. The owner
has accepted the appraised price. The site is assessed for tax purposes at $49,500.
In terms of re -use, the site would make an excellent location for a low -rise office
building or other appropriate commercial use oriented to the neighborhood.
Site #2
This site is located near the corner of Old Central and Rice Creek Road on East Moore
Lake Drive. As a point of reference it is across the street from the Joe DiMaggio's
restaurant. It is just to the south and west of the Erickson property described above.
The property is zoned M -1 Light Industrial and is approximately 32,500 square feet in
size (.75 acres). The parcel is owned by Doug Petty of Fridley.
The property was appraised for $74,500, however the appraiser indicated that due to
an error in the County's records the valuation might be slightly higher. The County's
records indicate that the property is 29,000 square feet in size, however the City's
records show the site to be 32,500 square feet. This error was discovered after the
appraisal had been completed and an offer made. We will update the Authority on
Thursday night regarding this new information and the impact on our negotiations. We
can report that the property is assessed for tax purposes at $27,200.
In reality, this property will have to be re -zoned for either a low -rise office use or other
appropriate neighborhood oriented commercial activity.
Site 3
This site is located near the corner of Mississippi Street and Old Central Avenue. As a
point of reference, it is across the street from Sandee's Restaurant. The
property is zoned C -1 Local Business and is 41,875 square feet in size. The site is
currently owned by Richard Carlson of Fridley.
The property has been appraised for $104,000 and the owner has accepted this
amount. The property is assessed for tax purposes at $37,100. Based on our
Memo Regarding Old Central Lots
December 3, 1999
Page 3
preliminary analysis we believe this site would be an appropriate location for a
residential use, most likely higher density housing. The adjacent land use to the east is
residential and the site has good access to the retail businesses at the nearby Moore
Lake Shopping Center. It is also has access to bus service along Mississippi Street.
Summary
As outlined in the introduction, our objective in acquiring these sites is to help shape
future redevelopment along the Old Central corridor. Clearly additional planning and
analysis are required.
Our goal for December V' is to have the HRA approve the purchase and escrow
agreements for all three properties. Upon execution of the documents, the funds will
be placed in escrow with a title company, pending additional environmental and soil
testing. Assuming there are no problems, the closing and transfer of title would take
place sometime in the summer of 2000.
Recommendation
Staff recommends that the Authority approve each transaction by separate motion. We
are asking for specific action on the following:
1. Approve the Purchase and Escrow Agreements by and between Daniel Erickson, et.
al. and the Authority for $166,000 for the purchase of Lots 2 and 3, Block 1,
Herwal's Rice Creek Addition.
2. Approve the Purchase and Escrow Agreements by and between Douglas Petty and
the Authority for Lot 5, Block 1, Herwal's Rice Creek Addition. Staff will provide an
updated purchase price at the December 9t' meeting.
3. Approve the Purchase and Escrow Agreements by and between Richard Carlson and
the Authority for $104,000 for Lot 18, Block 1, Spring Valley Addition.
4. Authorize the Executive Director to execute all documents related to the
aforementioned transactions.
u •• ••
� 31
ELA TE
EC /
p �
I.�' ...Masi •• -- -�-- -- —
II 01 ltd fs'' ' \' fp sp Avis?
L , 7J 7f
co SU Y
• �q
f'
01 Mrs E /m.� Z,�� l Carlson Property
lrlwy PAfk
q Z I �� ° Z (� . 5 iTE 3� s
} cac• /J r a r
W w
J,� V
al� A ' l 1 l� a o tai W , �yI ° y ✓(�� ��� R
L# • �i _ A-al—L-a
d �cr.ir� °
Y
MO ORE- .0 23��° 9 I�q _ 4TH AVE
II— 4
zi
04 � t
N °' c ° Erickson Property';:
P -. ,7VA' --- � �i�i /G L6dN ��' ' 3 ul• . r..�i.N.• l � �T� 1 ) - --
7S 7f 7.5 L'a �0 % w �d . ¢� �n� _ ACE r •�
--
W
�--I Petty Property -`
L —_ V V I Mr ssHOOwar srlr rMs�. �^`
N
JP - 8 �� 09 . Y.sav
r!R � �.
I � ro'- '• ri � I
16 15
a AUDITORS SUB
Ly
NO. 88
20 SU9.
.r
OGRE — LA
2 ►J.0 s/ c
1 ? ZZ ab a Ytif r I ' f7G/� 1 q• = L
/ Q
O a � � ; 1j ''n7 !•rw 6(71, air °e
41 Jjy c Ole
i
ya.
low
rwgtr q `J / le �f� S1 2
e6 R.L.Q. aL c
5 ,p� iy wo VN • • _ ~�.►. .T.,
'S,'
4 3 , sq , (�
l • J1 N R! Rio
r
6
HOUSING & REDEVELOPMENT
AUTHORITY
Memorandum CIWOF
FRUX"
DATE: December 3, 1999
TO: William Bums, Executive Director of HRA 10 01
FROM: Barbara Dacy, Community Development Director
SUBJECT: Nedegaard Parcel
Proposed Acquisition
The subject parcel is located just west of 7"' Street and immediately south of 1 -694. It is zoned
C -2, General Commercial and has public street frontage by virtue of an old right of way of 5e
Avenue, which runs east west parallel with 1 -694. The 15, 600 square foot lot is separated from
7"' Street by another similar size lot owned by Fairway Outdoor Advertising Company who has a
nonconforming billboard on the site.
Staff has negotiated a purchase price of $32,000. The appraised value is $31, 200.
The assessed valuation is $21, 800.
Future Uses
The parcel is bounded on the west and south by R -3, Multiple Family zoning and apartment
buildings. The site, if rezoned to R -3, Multiple Family, is large enough for a four -plex.
Alternatively, adjacent owners could use the site for additional parking or garage improvements
(unfortunately, staff has not been able to work more on this idea). Finally, the billboard site to
the east could be ultimately combined with this lot for a larger project, but the billboard is located
in the center of that site, and would constitute an expensive acquisition. This alternative is more
long term. The site will be difficult to develop, however, it provides some flexibility for the
Authority in the future.
The proposed purchase price will be placed in escrow at a title company, and a phase I audit
and soil analysis will be completed prior to releasing the funds.
Recommendation
Staff recommends the Authority authorize the following:
1. Preparation of the Escrow Agreement and Purchase and Sale Agreement by and
between Nedegaard Construction for $32,000.
2. Authorize the Executive Director to execute all documents related to the transaction.
M -99 -284
5.d2
. • T. 1 11 11 • .7 Vb I
U)
N
AV E.
t-441 E
PIE-
21?
le
F
71 61.
Af
16 l$1
z
Sol
W, lad
tv
INTLc R
ST
— --------- 71 — — — — — — — — —
.11 Ar
ZY 10)
Ar
;: - \-
I Y
At
-7r- -.
- - -7e-
Af
Ar
JS
F v
2-F
-ales)
24
Sol
W, lad
tv
INTLc R
ST
— --------- 71 — — — — — — — — —
.11 Ar
ZY 10)
Ar
531/2., 1
NL
AVPIJI -
Oct,
.
W21'
Af
Ar
2-F
-ales)
24
p
Alf
a
zw
1,e
N hr
,14
Ap
NA 1.4'
TIN
AVE.
-/of
S N.E.
ov -;I
20 mw o
W�-7 127 Its)
24
4 241
ONO
0 2s
531/2., 1
NL
AVPIJI -
W21'
Af
Ar
p
Alf
a
531/2., 1
NL
AVPIJI -
Af
zw
HOUSING & REDEVELOPMENT
AUTHORITY 1!.
Memorandum ma
DATE: December 3, 1999
TO: William W. Bums, Executive Director ai
FROM: Barbara Dacy, Community Development Director
SUBJECT: Resolution Authorizing Prepayment of Housing Loan
The resolution will be presented to the Authority at Thursday's meeting. The intent of
the resolution is to authorize staff to make the appropriate amount of pre - payment on the
City's housing loan to the City using the remaining increment in TIF #2 and TIF #3 by
January 1, 2000. The amount of the payment will depend on the Authority's action on
the previously scheduled land acquisitions. A "not to exceed" figure will be presented to
the Authority on Thursday evening.
M -99 -283
�ej
HOUSING & REDEVELOPMENT
AUTHORITY U!
Memorandum CM
OF
DATE: December 3, 1999 k
TO: William Bums, Executive Director of HRA AA
FROM: Barbara Dacy, Community Development Director
SUBJECT: "Welcome to Fridley Sign"
Background
The City formed a 50th Anniversary Committee the latter part of 1998 to coordinate several City
activities through 1999 to celebrate the city's heritage. One of the recommendations of the
committee was to create "community identification signs" at each of the major entrances of the
City on TH 65, TH 47, and East River Road. In general, there has been community wide
concern about the image and appearance of major thoroughfares.
A fund raising campaign was completed and 8 service organizations have contributed a total of
$48,000 toward the signs. Requests for proposals are now being sought from sign companies
to construct the sign as seen on the attached drawing. Planning staff has been negotiating with
six property owners to obtain easements for the sign. In one case on East River Road, the
resident has agreed to plant flowers around the sign and maintain theml
Proposal
It is proposed that one of the sign locations be the Authority's property at the northwest comer
of TH 65 and Medtronic Parkway. This area was the former site of two single family houses that
were acquired to make room for the realigned Lake Pointe Drive, now named Medtronic
Parkway.
Medtronic Inc. has not submitted their sign plans as of yet, and staff needs to find out if
Medtronic would have any concerns. In any case, with Moore Lake as the background, the sign
would be well placed at a strategic location in the City.
Summary
No action is required by the Authority; however, if the Authority has any concerns about this
proposal, please notify us. As a point of information, the area of land which was used to realign
the roadway needs to be replatted to match the boundary lines of the Medtronic plat, and to
create the appropriate right of way. The survey work has been initiated and further information
will be presented to the Authority on future agendas.
M -99 -285
z
z cc -o
0v
L�
W
to
V
I m
O
O C
r
t
f �
f
�l
_.J
_!ill
y
. Y .3. -A ♦A1 -2 1 v .5 I , VI 1;,
W
kn
m
I
1.8
W
m
mW
.p
�s
¢mg
b W ...
C m Q
�somm
0
W
O
m
S
m E d
Ca
C W
I m
mllip
0 C = 9 qq
8 Q O 0
1A8 1
}
®NN
� � N
W I
to
V
L
m
o�n
�c
y
� 5
TI
a {�
Q d
T `
O
0
0
0
y 0
O yrt 'a
a „C�
. O C
O
N
O �
V
NNW :.
m
iocL
�c
H
1►
cc
W
O �
�N
Pn
mWn
�S
0
3
c -cmQ
1.o
p � O
C
CS
W
C
m,
IC V C Q ti
or o�g
U�p
r � C
k...
Oct 13 99 03:06P Patrick Carlson 612 - 431 -6243 P.1
Post -Ir Fax Note 7671
Date (p_�;
mesil.
To 5,c c 4 lc Ka K
From
Co./Dept.
Co.
Phone #
Phone �/2 -Sr3l " 62y3
Fax # fC'
Fax A Y3/- 2-.'2 Y ?
PUBLIC SIGNAGE
EASEMENT
THIS INDENTURE, made this day of I999, by and
between , (Grantor);
and the City of Fridley, a Minnesota Municipal Corporation, Anoka County, Minnesota,
(Grantee).
WITNESSETH:
WHEREAS, Grantor is the owner in fee simple of the real estate hereinafter
described.
That for and in consideration of the sum of
and other good and valuable consideration, the receipt of which is hereby acknowledged,
Grantor has this day bargained and sold, and by these presents does bargain, sell and
transfer unto the City of Fridley, its successors and assigns the following.
A perpetual easement for public signage purposes with the right to enter upon the.
real estate hereinafter described at any time that grantee may see fit, and construct,
maintain and repair an above ground city entrance sign, equipment, materials, or other
items for public signage purposes, for the purpose of maintaining, repairing or replacing
the said public signage over, across, through and under the lands hereinafter described,
together with the right to excavate and refill ditches and/or trenches for the location of
said public signage, and the further right to install lighting, remove trees, bushes,
undergrowth, and other obstructions interfering in the location, construction and
maintenance of said public signage.
That said public signage easement located in the City of Fridley, Anoka County,
State of Minnesota, is described as follows, to -wit:
Oct 13 99 03 :06p
Patrick Carlson
(insert legal)
612 - 431 -6243
TO HAVE AND TO HOLD, said perpetual easement and rights -of -way unto the
City of Fridley, Anoka County, Minnesota, its successors and assigns, forever.
Grantor does hereby covenant with the City of Fridley, that it is lawfully seized
and possessed of the real estate above described.
IN WITNESS WHEREOF, the said parties have caused this instrument to be
executed the day and year first above written.
GRANTOR:
By: By:
It's: It's:
STATE OF MINNESOTA )
ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
1999, by and
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
Evergreen Land Services Company
6110 Blue Circle Drive, Suite #140
Minnetonka, MN 55343
(612) 930 -3100
A21ndley sign ease
P.2
HOUSING & REDEVELOPMENT
AUTHORITY UK
Memorandum
FRIO
DATE: December 3, 1999 fl
TO: William Bums, Executive Director of HRA a ij
FROM: Barbara Dacy, Community Development Director
SUBJECT: Comprehensive Plan Discussion
Believe it or not, the comprehensive plan draft is underwayl The purpose of the Commission's
discussion on Thursday night is to review and comment on the proposed first draft of the
following chapters:
• Community Vision
• Plan Overview
• Land Use
• Housing
• Park and Recreation
PLAN DRAFT REVIEW PROCESS
All advisory commissions are now beginning to review various chapters of the Plan. The first
official public hearing is scheduled for December 15 in front of the Planning Commission. The
City must submit an initial draft to Met Council by December 31. Final action will not be taken
until well into the year 2000. Additional changes are sure to be needed and more hearings will
be conducted once initial feedback is received from the Metropolitan Council. An informational
hearing was conducted on November 18, 1999 and about 30 individuals were in attendance.
KEYISSUES
The consultant was directed to make a strong connection between the outcomes of the vision
meetings with the Goals, Policies, and Strategies in the plan. The consultant was also directed
to include information about how Fridley fits in the region's growth strategy. Remember that
there is information in the plan that the City is required to include. The amount of vacant land to
be developed and the nature of redevelopment is probably the most important to the Met
Council. The Met Council wants to know if the City intends to grow more than they project, less,
or about the same. The population is projected to grow to 29,500 in the year 2020. This year
the population is 28,626 and has been growing since the early 1990's. If the City continues with
aggressive infill projects, like Gateway East and redeveloping certain areas of Hyde Park, the
population could easily surpass that mark ten years earlier in 2010. Met Council's question may
be answered, but the more important question remains for the City: how much does the City
want to grow? The Comprehensive Plan process should discuss and should provide direction
about this issue.
•
Comprehensive Plan Discussion
December 3, 1999
Page 2
The Land Use Chapter is the culmination of a lot of topic areas: housing, transportation, parks
and open space etc. It is difficult to anticipate everything in the first draft. The consultant team
has researched all of these topic areas, and they were asked to include a list of "key issues"
from other areas in this first iteration of the Land Use Chapter. There is sure to be additional
issues as the process unfolds. The Land Use Chapter also proposes Goals, Policies, and
Strategies around these issues. Most of these issues were discussed at the vision meetings.
To follow is a summary of the issues. Please review the list and identify any issues staff and
consultant may have missed (see Pagel2 of the Land Use Chapter):
• Community Image
• Future Development as a result of Medtronic Corporate Campus
• Move Up Housing
• Housing Maintenance
• Economic Stability
• Traffic Congestion alternatives
• Transit (rail and east west bus service)
• Park and Recreation needs
• Commercial Areas
• Bikeways/walkways
Rediscovering the River was also a topic that was discussed at the Vision meetings, and the
Consultant will be adding that topic to the list of key issues discussed in the Plan.
PLAN APPROACH
The consultant was directed to make a strong connection between the outcomes of the vision
meetings with the "Goals, Policies, and Strategies" in the plan. In other words, the vision
meetings have completed the groundwork for the goals and policies of the plan. The list above
represents what was heard as issues to be addressed in the next twenty years. The Plan will
explain these issues, and the plan will recommend strategies to guide the City in the future
about these issues.
The draft identifies general goals and policies and leaves the "Strategies" sections blank. Here
is where the most discussion about the Plan will occur. Council, Commission, or the public can
offer suggested strategies for discussion. In addition, staff will recommend strategies to
accomplish the goals and policies identified in the Key Issues list.
SUMMARY
The Housing and Redevelopment Authority should review and comment on the proposed draft
of the Comprehensive Plan. Additional drafts will be forthcoming.
M -99 -280