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HRA 03/05/2009 - 6217T,)L),bL /C March 5, 2009 HRA Meeting Regular Meeting Agenda 7:00 a.m. City Hall, Council Chambers Call to order Roll call. Action Items 1. Approval of expenditures 2. Approval of January 8, 2008 Meeting Minutes 3. Approval of Interfund Loan 4. Approval of Purchase Agreement(s) — Gateway Northeast Informational Items 1. Housing Loan Program Update 2. Moore Lake Landscaping Improvement Project Adjournment C Oocurnents and Settings \bebergj \Local SettingsUemporary Internet Files \Content.Outlook \VWCEOPO4\March 5 -2009 Agenda Outline.docC OoCUments and Settings \bebergj \Local SettingsWemporary Internet Files \Content.outlook \VWCEOPO4\March 5 -2009 Agenda Outline.doc CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION JANUARY 8, 2008 CALL TO ORDER: Chairperson Commers called the Housing and Redevelopment Authority to order at 7:06 p.m. ROLL CALL: MEMBERS PRESENT: Pat Gabel William Holm Steve Billings John Meyer Larry Commers OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Gay Cerney, HRA Attorney Rod Krass, Attorney Mike Jeziorski, Accountant William Burns, City Manager ACTION ITEMS: 1. Approval of Expenditures MOTION by Commissioner Holm to approve the expenditures as presented. Seconded by Commissioner Billings. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. 2. Approval of December 4, 2008 Meeting Minutes MOTION by Commissioner Gabel to approve the minutes as presented. Seconded by Commissioner Billings. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED.. 3. Approval of Final 2009 Budget Mike Jeziorski, Accountant, said that the 2009 Budget was reviewed at the December meeting and only one revision has been made. The Building and Land Purchases will increase from $700,000 to $1,400,000. The final budget reflects the most current appraisals and purchase agreements for the Gateway Northeast properties. Chairperson Commers asked why there was a change. Paul Bolin, HRA Executive Assistant Director, said that originally staff had thought HRA would close on two of the properties prior to the end of the year and that did not happen so the numbers were adjusted. The $1.4M is the best estimate of what it will take to purchase the properties HRA is pursuing. MOTION by Commissioner Billings to approve the Final 2009 Budget as presented. Seconded by Commissioner Gabel. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. 4. Approval of Contract Extension with CEE for Administration of Loan Programs Paul Bolin, HRA Executive Assistant Director, said the HRA has contracted with the Center for Energy and Environment (CEE) for loan program administration since 1996. Program Administration includes: marketing the program, processing loan applications, determining eligibility, and customizing loans to individual needs. CEE also provides residents with technical assistance on topics such as remodeling, energy conservation, and indoor air quality. The CEE - HRA partnership allows residents to access other loan dollars (MHFA and Met Council). There will be no changes to the current fee structure. Staff and residents have been pleased with CEE and Staff recommends that the HRA approve the contract extension through December 31, 2009. MOTION by Commissioner Holm to approve the contract extension with CEE for administration of loan programs. Seconded by Commissioner Gabel. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 5. Approval of Purchase Agreement (s) / Gateway Northeast Update Mr. Bolin said that the Alano Society property was closed on, on December 18'h and the Tae Kwan Do property offer was made but staff is still waiting for a formal response to the offer. Commissioner Gabel asked how Mr. Wilson is paid. Mr. Bolin said he is paid an hourly rate. Commissioner Gabel suggested that HRA doesn't ask Mr. Wilson to spend so much time on the Tae Kwan Do purchase because it isn't going anywhere. Mr. Bolin said that the MPCA has determined that the Sinclair property has no additional investigation or clean up required at this time. Closing will take place on January 26th. The Sikh Society has now decided they need to have further discussions amongst themselves to move forward. The appraisal on the 5905 University property is complete and Staff recommends the HRA authorize an offer to purchase for the appraised value, inclusive of relocation benefits. MOTION by Commissioner Billings to approve the purchase agreement at 5905 University Avenue. Seconded by Commissioner Meyer. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. Commissioner Billings disagreed with the value of the property at the former McDonalds building location as the estimate is too high. He understands the appraiser's logic but doesn't think the property is worth $450,000. He will not be voting in favor of that project if the estimate comes in at that price. Commissioner Holm asked if the HRA should withdraw the purchase offer Mr. Bolin said that the appraisal for the Sikh Society was done in 2007. The Sikh Society is considering getting another appraisal. Comments from previous meetings were considered and an offer of about $20,000 lower than the appraisal was presented. Chairperson Commers said that HRA can revisit this at a later date once the Sikh Society gets a new appraisal. William Burns, City Manager, asked if HRA should get another appraisal. Mr. Bolin said another appraisal could be done but there is an expense associated with appraisals, about $3,500. Commissioner Meyer thought it may be worth getting a new appraisal. Commissioner Holm recalled that the last time HRA asked for a second appraisal the value went up. Commissioner Billings said it would be best to see what the Sikh Society comes up with and address this at the next meeting. Chairperson Commers asked if the easement problems have been worked out. Mr. Bolin answered no. There is enough city street frontage road but there are some things that need to be worked out between Sikh Society and the day care center. INFORMATIONAL ITEMS: 1. Northstar Rail Station Update Mr. Bolin updated the construction progress and said that bid packets were made available mid - December and the opening of the bidding will take lace on January 27`h. Construction will start mid - February. At the HRA Meeting on February 5 HRA can begin planning for development/ redevelopment around the station site. 2. Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director, said that no loans were closed in December and year to date 18 loans were closed. There were also no remodel visits in December and year to date there were 16 remodel visits total. RECESS MEETING MOTION by Commissioner Holm to Recess the HRA Meeting. Seconded by Commissioner Gabel UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MEETING RECESSED AT 7:50 P.M. MOTION by Commissioner Holm to reconvene the meeting. Seconded by Commissioner Gabel. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE MEETING RECONVENED AT 8:16 P.M. Chairperson Commers said that the meeting was recessed for the purpose to consider purchasing 11 acres of land to be used for the construction of the Fridley Rail Station. MOTION by Commissioner Gabel to approve the resolution to purchase the property. Seconded by Commissioner Holm. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. William Burns, City Manager, asked what the purchase price is for the property. Chairperson Commers said that there is some confusion on the price because of the different contributions involved. The total settlement is $4.OM with contributions being received from other parties. A lot of people including the Mayor, City Council and HRA members have been working on this for a long time and deserve a lot of credit for this accomplishment. This was a complex transaction and has finally come to fruition. This will be a tremendous addition to the City of Fridley. ADJOURNMENT: MOTION by Commissioner Meyer to adjourn. Seconded by Commissioner Gabel. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 8:25 P.M. Respectfully Submitted, 6z�&#Mmyx (e Krista Monsrud Recording Secretary COMMUNITY DEVELOPMENT DEPARTMENT y HOUSING AND REDEVELOPMENT AUTHORITY Memorandum DATE: February 23, 2009 TO: William W. Bums, Executive Director of HRA FROM: Rick Pribyl, Finance Director Mike Jeziorski, HRA Accountant Paul Bolin, Assistant Director of HRA SUBJECT: Approval of Interfund Loan: General Fund to TIF #11,12 and 13 The cash balances in TIF Districts #11, #12, and #13 have been utilized to pay fees associated with the acquisition and lawsuit settlement pertaining to the Northstar rail station site. To that end, in order to fully fund these expenditures these districts need to borrow general fund dollars against future increment that will be received. The amount of these interfund loans is chronicled below. We anticipate these loans being paid back in full within a four year time frame. District Amount Borrowed TIF #11 $107,000.00 TIF #12 $104,000.00 TIF #13 $162,000.00 Staff recommends that the HRA make a motion to approve the Interfund Loan. CADocuments and Settings\BolinMocal Settings \Temporary Intemet Files \OLK36\2 - HRA Interfund Loan Memo.doc ERA RESOLUTION NO. 2009- RESOLUTION APPROVING INTERFUND LOAN BETWEEN GENERAL FUND AND TIF DISTRICTS #11, #12, and #13 BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority ") as follows: Section 1. Recitals. 1.01. The Authority is authorized by Minnesota Statutes 2001 Supplement Section 469.174, subdivision 3 and Section 469.178, subdivision 7 to approve by resolution any interfund loans made after July 31, 2001 that are to be repaid with tax increment from any of the Authority's tax increment financing districts. 1.02. The Authority is authorized to disclose by resolution the terms of the interfund loan, i.e. principal amount of loan, interest rate, and length of loan. 1.03. The Authority is authorized to limit the principal amount of the interfund loan to the largest negative cash balance that existed at any one time in the fund receiving the loan. Section 2. Findings. 2.01. The Authority hereby finds it necessary to create an interfund loan between its general fund and the fund for TIF District #19. This loan is for the express purpose of providing financing for TIF District 19 projects until such time that enough tax increment is generated in the TIF district to pay back the interfund loan. Section 3. Adgption of Interfund Loan. 3.01. The following are the terms of the interfund loan to be approved: Loan Amount #11 $107,000.00 Loan Amount #12 $104,000.00 Loan Amount #13 $162,000.00 Interest Rate: 0% Length of Loan:4 years or until December 31, 2012 3.02. The Authority will create and maintain a loan payment schedule for the interfund loan that will be approved by this resolution. 3.03 TIF Districts #11 ,12, and #13 may pay off the loan early if sufficient tax increment is available. PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 10TH DAY OF JANURARY 2008. LAWRENCE R. COMMERS, CHAIRPERSON ATTEST: WILLIAM W. BURNS, EXECUTIVE DIRECTOR ACTION ITEM M` HRA MEETING MY OF MARCH 59 2009 FRIDLEY Date: February 26, 2008 To: William Burns, City Manager From: Paul Bolin, Asst. Executive HRA Director Scott Hickok, Community Development Director Subiect• Gateway Northeast Property Acquisition Update Sikh Society: After nearly two months of uncertainty, it appears we have reached a deal with the Sikh Society for their property located at 5831 University Avenue. The full terms are contained in the attached purchase agreement, but as a summary: the purchase price is $470,000 and includes a payment in lieu of relocation. The Sikh's would lease the property from the HRA through October at which time they will move in to a new location in Blaine. The Sikh's are meeting on Sunday to vote on the attached purchase agreement. I am anticipating having a signed purchase agreement, reviewed and approved by Attorney Cerney prior to your meeting on next week. 5905 University Avenue — Select Product Company: Like the Sikh Society staff anticipates having a signed purchase agreement prior to next weeks meeting. The full terms are contained in the attached purchase agreement, but as a summary: The purchase price of the property is $305,000 and includes a payment in lieu of relocation. The property owner has requested leasing the property from the HRA for one year to provide ample time for relocation. PIN # 23.30.24.24.0022 COMMERCIAL INDUSTRIAL PURCHASE AGREEMENT l THIS PURCHASE AGREEMENT ( "Agreement ") is made and entered into this day of by and between Sikh Society of Minnesota, a nonprofit Minnesota Corporation, ( "Seller "), and Housing and Redevelopment Authority in and for the City of Fridley, a municipal corporation ( "Purchaser "). RECITALS A. Seller is the fee owner of certain real property situated at 5831 University Avenue Northeast, Fridley Minnesota, and being legally described as follows: See Exhibit A attached B. Seller desires to sell and Purchaser desires to purchase the Property, subject to the terms and conditions of this Agreement. AGREEMENT In consideration of the mutual covenants made below and other good and valuable consideration, the parties agree as follows: 1. Offer and Acceptance. Seller agrees to sell and Purchaser agrees to purchase the Property, subject to the terms and conditions of this Agreement. Together with all buildings, improvements and fixtures owned by Seller, all tenant leasehold interests, all easements, rights and appurtenances thereto, and all of Seller's rights, title and interest in all public ways adjoining the same.(hereafter all the foregoing referred to as the " Subject Premises "). 2. Purchase Price. The purchase price for the Property ( "Purchase Price ") is $470,000, Four Hundred Seventy Thousand and no /100 and is payable on the Closing Date (as hereinafter defined). See Paragraph 24, Relocation, for description of relocation benefits. 3 Salvage Rights. The Seller reserves the right to salvage the following building components or fixtures located on the Subject Property. (See Exhibit A Salvage Items.) The following conditions apply to the Seller's salvage. a. The Seller agrees to remove all salvageable items from the Subject Property prior to the date of possession. b. The Seller agrees that the cost of removal of all salvage items shall be that of the Seller. Sikh Society of Minnesota (mf) Purchase Agreement (R02- 18 -09) Page 1 of 16 c. The Seller agrees to leave the Subject Properly in a condition that it can be secured from unauthorized entry. 4. As -Is- Basis. It is specifically agreed that the Real Property is being conveyed to the Purchaser by the Seller in "As- In- Condition "(with all faults). 5. Evidence of Title. Seller shall, within ten (10) days after execution of this Agreement, cause to be delivered to Purchaser for examination by its attorney an Abstract of Title certified to date (or a Certificate of Title and Registered Property Abstract), same to include proper searches covering bankruptcies and State and Federal judgments and liens. Within 15 days thereafter the Purchaser shall give notice in writing to the Seller of any defects in or objections to the title as so evidenced and Seller shall thereafter clear the title of the defects and objections so specified at Seller's expense. If Seller fails to clear title to the extent herein required or to submit evidence of ability to do so within 30 days of the delivery of the notice of defects, Purchaser may clear title to the extent so required and charge the cost of clearing to Seller. Title to be conveyed as herein provided shall be marketable title, free and clear of all liens, encumbrances, restrictions options to purchase, and easements, except as may be expressly waived by Purchaser. 6. Conditions to Closing. Closing of the transaction contemplated by this Agreement and the obligation of Seller to sell the Property and of Purchaser to purchase the Property is subject to the following conditions: 6.1 Purchaser shall have determined on or before the Closing Date that it is satisfied, based upon the results of and matters disclosed by any environmental or soil investigations or testing of the Property, that there are no environmental or soil conditions that would interfere with the Purchaser's proposed use of the Property; and 6.2 Purchaser shall have reviewed and approved title to the Property pursuant to Section 5 of this Agreement. 6.3 The Seller has obtained, no later than May 21, 2009, a conditional use permit from the City of Blaine for the property at 654 119th NE, Blaine, Minnesota, that will permit the Seller to occupy the proposed Blaine replacement property. The above contingencies are for the sole benefit of Purchaser, and Purchaser shall have the right to waive those contingencies by giving written notice to Seller. If the contingencies set forth in this Section 6 have not been satisfied or waived by the Closing Date, Purchaser or Seller may terminate this Agreement by giving written notice to the other on or before the Closing Date. 7. Environmental and Soil Investigation. Purchaser and its agents shall have the right, at its sole option and risk, to enter the Property for the purpose of testing soils, surveying, or doing other such work as may be necessary to determine the suitability of the Property Sikh Society of Minnesota (mf) Purchase Agreement (R02- 18 -09) Page 2 of 16 for use by Purchaser. If Purchaser investigates and tests the Property pursuant to this Section 7, Purchaser shall pay all costs and expenses of such investigations and testing and shall hold Seller harmless from all damages and liabilities arising out of Purchaser's activities. Upon request by Purchaser, Seller shall also permit Purchaser to review all environmental reports and files, if any, relating to the Property and in Seller's possession or control. 8. Costs and Prorations. Seller and Purchaser agree to the following Prorations and allocation of costs in connection with this Agreement and the transaction contemplated hereby: 8.1 Purchaser shall be responsible for closing costs including: a. State deed tax applicable to the transfer of the Property to Purchaser. b. Well certificate filing fee, if applicable. c. Conservation fee. d. Recording fees related to filing the Deed. e. Title company closing fee, if any. 8.2 Seller shall be responsible for: a. all recording fees and charges related to the filing of any instrument required to make title marketable. b. fees incurred by Seller in extending the abstract of title or obtaining title evidence. 8.3 Seller shall be responsible for payment of the Real Estate taxes due and payable in the year of sale prorated to the Date of Closing. Seller shall pay all real estate taxes due and payable for the years prior to Date of Closing, together with all special assessments pending or levied against the property. Also, Seller shall pay any and all green acres or other deferred taxes and/or special assessments levied or pending against the property. 8.4 Each of the parties shall pay all of its own respective attorneys' fees in connection with the negotiation, preparation and closing of this Agreement and the transaction contemplated hereby. 9. Closing. 9.1. Closing shall occur on June 1, 2009 or at such other date as may be agreed to by the parties in writing ( "Closing Date "). Closing shall take place at the offices of a closing company selected by Purchaser or at such other location as may be mutually agreeable in writing to the parries. 9.2. On the Closing Date, Purchaser shall deliver to Seller the Purchase Price and Seller shall execute and/or deliver to Purchaser: Sikh Society of Minnesota (mf) Purchase Agreement (R02- 18 -09) Page 3 of 16 (a) A duly executed general warranty deed ( "Deed "), conveying marketable title to the Property, subject only to: (i) building and zoning laws, ordinances, state and federal regulations; and (ii) utility and drainage easements which do not interfere with Purchaser's intended use of the Property; (b) A duly executed affidavit regarding Seller; (c) A well disclosure certificate or indication that there is no well; (d) Affidavit of non - foreign identity; (e) Abstract or owner's duplicate certificate of title (f) Other documents customarily and reasonably required by Purchaser's title examiner or title insurer. 10. Possession. Buyer shall allow Seller to occupy the property through November 30, 2009, pursuant to the terms of the Lease Agreement attached hereto as Exhibit C. Seller shall deliver possession of the Property to Buyer on or before November 30, 2009, in the same condition as the Property existed on the date of this Purchase Agreement subject to normal wear, tear and salvage. 11. Damages to Real Property. If the Property is substantially damaged prior to closing, Purchaser may at its sole option rescind this Agreement by notice to Seller within 10 days after Seller notifies Purchaser of the damage, during which 10 -day period Purchaser may inspect the Property. 12. Personal Property Not Included. Seller shall remove all personal property, not included in this sale, prior to the possession date. 13. Covenants, Representations and Warranties of Seller. 13.1. Seller represents that it is the fee owner of the Property. The signatories to this Agreement represent that they are authorized to execute this Agreement on behalf of Seller. 13.2. Seller agrees to take no actions to encumber title to the Property between the date of this Agreement and the time the Deed is delivered to Purchaser. 13.3. Seller warrants that it has not used the Property for the storage of hazardous substances or petroleum products and, as of the date of this Agreement, is not aware of any facts the existence of which would constitute a violation of any local, state or federal environmental law, regulation or review procedure or which would give any person a valid claim under the Minnesota Environmental Rights Act or the federal Comprehensive Environmental Response, Compensation and Liability Act. The foregoing is applicable only to Seller's actual knowledge of facts, and Seller represents that Seller has made no independent investigation of the Property. Sikh Society of Minnesota (mf) Purchase Agreement (R02- 18 -09) Page 4 of 16 13.4. Seller warrants that there has been no labor or material furnished to the Property for which payment has not been made. 13.5. Seller warrants that the Property is connected to city water and city sewer. 13.6. Seller warrants that the buildings are entirely within the boundary lines of the Property. 13.7. Seller warrants that Property is not occupied by any tenant and no person or entity has any leasehold interest in the Property. In the event anyone makes a claim for residential relocation benefits under MS 117.52, the Seller warrants that it will pay in full any and all residential relocation benefits deemed due and payable by an appropriate authority. 13.8. Seller warrants that On the Date of Closing, there will be no service contracts in effect in connection with the Subject Premises, expect those which are terminable on thirty (30) days' written notice. 13.09. Seller warrants that 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. 14. Covenants, Representations and Warranties of Purchaser. Purchaser is a public body corporate and politic under the laws of Minnesota and has the power to enter into this Agreement and carry out its obligations hereunder. The signatories to this Agreement represent that they are authorized to execute this Agreement on behalf of Purchaser. 15. Well Disclosure. Seller will certify on the Deed that it knows of no wells on the Subject Property or will furnish a well disclosure certificate. 16. Underground Storage Tanks. Seller is not aware of any underground storage tanks on the Subject Property. 17. Brokers Commissions. Seller and Purchaser are responsible for the respective real estate brokerage fees or commissions. 18. Miscellaneous. 18.1. This Agreement represents the complete and final agreement of the parties regarding sale of the Property and supercedes any prior oral or written understanding. This Agreement may be amended only by a writing executed by both parties. This Agreement shall be binding on the parties hereto, their successors and assigns. Sikh Society of Minnesota (mf) Purchase Agreement (R02- 18 -09) Page 5 of 16 18.2. Purchaser and Seller represent and warrant that the recitals contained herein are true and accurate as of the date of execution of this Agreement. All warranties and representations by Seller and Purchaser shall survive the closing of this transaction. 18.3. All notices required hereunder shall be given by depositing in the U.S. mail, postage prepaid, certified mail, return receipt requested, to the following addresses (or such other addresses as either party may notify the other) To the Seller: Sikh Society of Minnesota 5831 University Avenue NE Fridley, MN 55432 To the Purchaser: Paul Bolin City of Fridley 6431 University Avenue Northeast Fridley, MN 55432 -4303 19. Assignment. Purchaser shall the right to assign its interest under this Agreement, without first obtaining the consent of Seller, provided that Purchaser shall remain liable to Seller under this Agreement. 20. Survival. All of the terms, covenants, conditions, representations, warranties and agreements contained in this Agreement shall survive and continue in force and effect and shall be enforceable after the closing. 21. Effective Date of Agreement. This Agreement shall become effective and shall be binding upon the parties hereto only after it has been executed by each of the parties hereto. Purchaser will have no more than forty -five (45) days after date of Seller's acceptance of this agreement to accept and sign this purchase agreement. 22. Specific Performance. This Purchase Agreement may be specifically enforced by the parties, provided that any action for specific enforcement is brought within six months after the date of the alleged breach. This paragraph is not intended to create an exclusive remedy for breach of this agreement; the parties reserve all other remedies available at law or in equity. 23. Minimum Compensation. The Seller acknowledges and stipulates that the purchase price fulfills the minimum compensation requirements due to Sellers by Minnesota Statute 117.187. 24. Relocation. The $470,000.00 acquisition price includes a fixed $20,000.00 "Payment in Lieu Relocation Payment" for any and all relocation benefits due the Seller. Relocation Sikh Society of Minnesota (mf) Purchase Agreement (R02- 18 -09) Page 6 of 16 benefits are defined at Minnesota Statute 117.52, commonly known as the Minnesota Uniform Relocation Act. Date: Date: DATE OF FINAL ACCEPTANCE PURCHASER: Housing and Redevelopment Authority in and for the City of Fridley Its Board Chairman SELLER: Sikh Society of Minnesota Lo Kehar Singh, Its President Its Sikh Society of Minnesota (mf) Purchase Agreement (R02- 18 -09) Page 7 of 16 Imo; 1111-3 � . ATTACHMENT TO PURCHASE AGREEMENT LEGAL DESCRIPTION That part of Lot Ten (10) lying north of the following described line in Lot Ten (10): Commencing at a point on the west line of said Lot Ten(10), 36.03 feet north of the southwest corner thereof, said line running in an easterly direction to a point on the east line of said Lot Ten (10), 36.15 feet north of the southeast comer thereof; and Lots Eleven (11), Twelve (12), Thirteen (13) and the south ten(10) feet of Lot Fourteen (14), Block Four (4), Bennett- Palmer Addition, according to the plat on file and of record in the office of the Registrar of Titles in and for Anoka County, Minnesota. and That part of Lot Ten (10), lying south of the following described line in Lot (10): Commencing at a point on the west line of said Lot Ten (10), 36.03 feet north of the southwest comer thereof, said line running in an easterly direction to a point on the east line of said Lot Ten (10), 36.15 feet north of the southeast comer thereof; Block 4, Bennett- Palmer Addition, Anoka County Minnesota. Sikh Society of Minnesota (m fl Purchase Agreement (R02- 18 -09) Page 8 of 16 ATTACHMENT TO PURCHASE AGREEMENT SALVAGE LIST 5831 University Ave. NE Fridley, MN Seller may remove the following items at Seller's expense by the Possession Date. Dated EXHIBIT B Any and all items subject to leaving the property in a condition that it can be secured from unauthorized entry. Sikh Society of Minnesota By: Kehar Singh, Its President Sikh Society of Minnesota (mf) Purchase Agreement (R02- 18 -09) Page 9 of 16 EXHIBIT C LEASE AGREEMENT On this day of , 2009, the Housing and Redevelopment Authority in and for the City of Fridley, hereinafter the "Landlord," and Sikh Society of Minnesota, a nonprofit corporation, hereinafter the "Tenant," agree to enter into this Lease Agreement with the following terms and conditions: 1. Property and Use: 5831 University Avenue NE, Fridley, Minnesota. 2. Term: Beginning Date: June 1, 2009 Ending Date: November 30, 2009 3. Holding Over: Subject to Section 16 herein, if Tenant remains in possession of the Property after the Ending Date, and the Tenant and Landlord have not renewed this Lease or entered into a new lease, this Lease Agreement will be extended under its original provisions and obligations, except (a) the Term shall be changed to month -to -month and (b) the daily rent shall be $100.00 per day. 4. Intentionally left blank. 5. Monthly Rent: Rent in the amount of $ -0- will apply for a period of this lease. 6. Security Deposit: None. 7. Utilities: The Tenant must furnish and must pay for any and all utilities used at the Property by maintaining an account with the service provider in the Tenant's name. 8. "As Is" Condition: The Landlord makes no representations, warranties or statements, whether express or implied, with regard to the condition of the Property, nor to its suitability for occupancy by the Tenant. The Tenant leases the Property "as is," "where is," and Sikh Society of Minnesota (mf) Purchase Agreement (R02- 18 -09) Page 10 of 16 n with all faults. 9. Maintenance: The Tenant is responsible for any and all repairs and maintenance of the Property during the Term of the Lease Agreement, including but not limited to lawn mowing, weed control, snow removal, leaf raking, general upkeep of the exterior and interior of the building, and maintenance and repair of all structural, mechanical and plumbing systems. IF TENANT FAILS TO MAKE REPAIRS REASONABLY REQUIRED BY LANDLORD UNDER THIS LEASE FOR A PERIOD OF TEN (10) DAYS AFTER NOTICE FROM LANDLORD, LANDLORD MAY (BUT IS NOT REQUIRED TO) MAKE SUCH REPAIRS AND CHARGE TENANT FOR THE COST OF SUCH REPAIRS AS ADDITIONAL RENT. 10. Tenant Damages to Property: All costs for any damage to the Property caused by the conduct of the Tenant or Tenant's guests, agents, or family members must be reimbursed to the Landlord within three (3) days after demand for payment by Landlord. 11. Use of Property: The Tenant will occupy the Property solely for the use of Sikh Society of Minnesota. Tenant agrees that Tenant will: (a) comply with all local, state and federal laws and regulations: (b) not allow "contraband" or "controlled substances" (as those are defined under Minnesota law) to be on the Property in violation of Minnesota law; and (c) not manufacture, transfer, or possess "contraband" or "controlled substances" (as those are defined under Minnesota law), or allow anyone else under Tenant's control to manufacture, transfer, or possess those items on the Property. If Tenant's or anyone else under Tenant's control in the use of the Property results in a violation of any laws or regulations, Tenant will pay the amount of any fines, penalties, or costs imposed for such violations. Also, the violation of any laws by a Tenant or anyone else under Tenant's control on the Property may cause the Landlord. to terminate this Lease Agreement Sikh Society of Minnesota (mf) Purchase Agreement (R02- 18 -09) Page 11 of 16 immediately. 12. Landlord Right to Entry: The Landlord, or its agents, may enter the Property at any reasonable time to conduct predevelopment activities and inspections. The Landlord may enter the building at any time after reasonable notice to the Tenant for the purpose of asbestos abatement studies, demolition studies or similar predevelopment activities. 13. Subletting or Assignment: This Lease Agreement may not be assigned to another person or entity by the Tenant, nor shall the Tenant allow any other person or entity to occupy the Property. Tenant shall not be permitted to sublease the property to any third party, nor permit anyone to occupy the property as a residential use. 14. Damage or Destruction of Property: In the event that the Property is damaged or destroyed and the property is no longer deemed habitable or fit for occupancy, this Lease Agreement shall be immediately terminated upon written notice by either party to the other party with no further obligation by the Landlord to the Tenant. 15. Surrender: On or before the last date of the Term or on the sooner termination thereof, Tenant must surrender the Property in. good order, condition, and repair. Tenant must remove all movable fixtures and other moveable property from the Property, and any property not removed shall be deemed abandoned, subject to the agreed upon salvage provisions of the ,2009 Subject Property Purchase Agreement. 16. Possession After Termination: If Tenant fails to leave the Property and give possession to Landlord on or before the Ending Date, Landlord is authorized to take any action permitted by law to take possession of the Property, and Landlord will be entitled* to recover damages from Tenant for Landlord's loss of use in the amount of $100 per day, beginning with the Ending Date specified above, in addition to all charges and reimbursements stated in this Sikh Society of Minnesota (mf) Purchase Agreement (R02- 18 -09) Page 12 of 16 Lease Agreement and all reasonable costs which result from obtaining possession of the Property and enforcing the terms of the Lease Agreement, including reasonable attorneys fees. 17. Improvements: Tenant may not make any alterations, improvements, or additions to the Property without the prior written consent of the Landlord. Tenant agrees to pay all sums of money for any labor, services, materials, supplies, or equipment furnished or alleged to have been furnished to Tenant in or about the Property. 18. Notices: Tenant agrees that notices and demands mailed to the Tenant at the Property address or hand - delivered by the Landlord to the Tenant at the Property are proper notice to the Tenant and are effective upon mailing or hand - delivery by the Landlord. All notices by the Tenant to the Landlord shall be made in writing and mailed or hand - delivered to the Landlord at the following address: William W. Burns, City Manager/Executive Director City of Fridley 6431 University Avenue NE Fridley, MN 55432 -4303 Notices and requests by the Tenant to the Landlord are effective upon mailing or hand delivery by the Tenant. 19. Indemnity; Insurance: Tenant agrees to indemnify and hold Landlord harmless from and against any demand, claim, loss or damage, including costs and reasonable attorney's fees incurred by Landlord, arising out of any injury, death, property damage or other matter occurring in, on or about, or alleged to arise out of or in connection with Tenant's use and occupancy of the Property - unless such injury, death, damage or matter was proximately caused by Landlord's negligence or willful act. During the entire term of this Lease Agreement and any extensions or renewals thereof, and any holdover tenancy, Tenant shall obtain and keep in full force and effect, at Tenant's sole cost and expense: Sikh Society of Minnesota (rnf) Purchase Agreement (R02- 18 -09) Page 13 of 16 a. Liability Insurance. Tenant shall maintain a policy of comprehensive public liability insurance with respect to the Property, written by a casualty or indemnity company authorized to do business in Minnesota, under which policy Landlord shall be named as an additional insured, and with not less than $1,000,000 single coverage limits for each occurrence of injury or property damage. Prior to the commencement of this Lease, Tenant shall furnish Landlord with said policy or with a certificate evidencing that said insurance is in effect, which shall state that Landlord will be notified in writing thirty (30) days prior to any cancellation, material change or renewal of said insurance. b. Casualty Insurance. Tenant shall maintain a "renter's" policy insuring its own personal property, now or later located on or a part of the property, against loss by fire, extended coverage perils, vandalism, malicious mischief, etc. Landlord shall- have no responsibility for loss of any kind, for tenant's personal property, unless such loss was proximately caused by Landlord's negligence or willful act. C. Waiver of Subrogation. Landlord and Tenant hereby waive any and all rights of subrogation that they may have against the other arising out of any claim for property damage or personal injury to the extent covered by any insurance policy maintained by such party. 20. Default by Tenant: If Tenant does not pay the rent or other amounts when due or if Tenant violates any term of this Lease Agreement, Landlord may terminate this Lease. If Tenant does not move out, Landlord may bring an eviction action. If Tenant violates a term of this Lease Agreement and Landlord does not terminate this Lease Agreement or evict Tenant, Landlord may still terminate this Lease Agreement and evict Tenant for any other violation of Sikh Society of Minnesota (mfl Purchase Agreement (R02- 18 -09) Page 14 of 16 a e this Lease Agreement. Landlord may use its legal rights and remedies in any combination. By using one or more of these rights or remedies, Landlord does not give up any other rights or remedies it may have. Acceptance of rent does not waive Landlord's right to evict Tenant for any past or existing violation of any term of this Lease Agreement. Rent is due under this Lease Agreement even if Tenant surrenders the Property or is evicted by Landlord. If contraband or a controlled substance manufactured, distributed, or acquired in violation of Minnesota law is seized in the Property or on the property in which the Property is located incident to a lawful search or arrest, and if Tenant has no defense under Minnesota Statutes § 609.5317, Tenant shall have no further right to possession of the Property, and Landlord may bring an eviction action against Tenant. If Landlord brings any legal action against Tenant, Tenant must pay Landlord's actual attorneys' fees and court costs even if rent is paid after the legal action is started. 21. Owner and Management: The following is provided under Minnesota Statutes: a. Authorized Manager of Property: City of Fridley, William W. Burns, City Manager/Executive Director. b. Address: 6431 University Avenue NE, Fridley, MN 55422 C. An owner of the Property or an agent authorized to accept service of process and receive -and give receipt for notices and demands: William W. Burns, City Manager/Executive Director. d. Address: 6431 University Avenue NE, Fridley, MN 55422 22. Binding Effect: The terms of this Lease Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of Landlord and Tenant. 23. Liability of Landlord: Landlord's obligation pursuant to this Lease Agreement shall be non- recourse to Landlord, except to the extent of Landlord's interest in the Property. Sikh Society of Minnesota. (mf) Purchase Agreement (R02- 18 -09) Page 15 of 16 Landlord and Tenant agree to the terms and conditions of this Lease Agreement. LANDLORD Housing and Redevelopment Authority in and for the City of Fridley Date: , 2009 By William W Burns,.City Manager/Executive Director TENANT: Sikh Society of Minnesota Date: , 2009 By: Date: Kehar Singh, Its President 2009 By: Its: Sikh Society of Minnesota (mf) Purchase Agreement (R02- 18 -09) Page 16 of 16 PIN #'s 23 -30 -24-21 -0122 23 -30 -24-24 -0016 23- 30 -24 -21 -0123 COMMERCIAL INDUSTRIAL PURCHASE AGREEMENT THIS PURCHASE AGREEMENT ("Agreement ") is made and entered into, this day of , 2009 by and between Michelle,Molumby and. Michael Molumby, wife and husband- ( "Seller"), 'and the Housing and Redevelopment Authority in and for the City of Fridley, a municipal corporation ("Purchaser "). RECITALS A. Seller is the fee owner of certain real property situated at 5905 University Avenue Northeast, Fridley, Minnesota, and being legally described as follows in the County of Anoka: SEE EXHIBIT A B. Seller desires to sell and Purchaser desires to purchase the Property, subject to the terms and conditions of this Agreement. AGREEMENT In consideration of the mutual covenants made below and other good and valuable consideration, the parties agree as follows: ' 1. Offer and Acceptance. Seller agrees to sell and Purchaser agrees to purchase the Property, subject to the terms and conditions of this Agreement in a voluntary transaction with no threat of any eminent domain action. Together with all buildings, improvements and fixtures owned by Seller, all easements, rights and appurtenances thereto, and all of Seller's rights, title and interest in all public ways adjoining the same.(hereafter all the foregoing referred to as the "Subject Property"). 2. Purchase Price. The purchase price for the Subject Property ( "Purchase Price ") is Three Hundred Five Thousand and no /100 dollars ($305,000.00) and is payable on the Closing Date. 3. Salvage Rights. The Seller reserves the right to salvage the following building components or fixtures located on the Subject Property. (See Exhibit B Salvage Items.) The following conditions apply to the Seller's salvage. a. The Seller agrees to remove all salvageable items from the Subject Property prior to the date of possession. b. The Seller agrees that the cost of removal of all salvage items shall be that of the Seller. c. The Seller agrees to leave the Subject Property in a condition that it can be secured from unauthorized entry. Select Product- (Molumby) 02 -18 -09 Page I of 16 4. As- Is- Basis. It is specifically agreed that the Subject Property is being conveyed to Purchaser by Seller in "As -Is= Condition" (with all faults). 5. Evidence of Title. Seller shall, within twenty (20) days after execution of this Agreement cause to be delivered to Purchaser, for examination by its attorney, an Abstract of Title, if one exists, or a Registered Property Abstract, or if no abstract exists, a title commitment including property searches covering bankruptcies and State and Federal judgments and liens. Within fifteen (15) days thereafter the Purchaser shall give notice in writing to the Seller of any defects in or objections to the title as so evidenced and Seller shall thereafter clear the title of the defects and objections so specified at Seller's expense. If Seller fails to clear title to the extent herein required or to submit evidence of ability to do so within sixty (60) days of the delivery of the notice of defects, Seller shall have a continued right to clear the defects through his attorney, providing money is held in escrow to cover the costs and expenses of clearing the title. Seller will pay the attorneys' fees to clear the title. Title to be conveyed as herein provided shall be marketable title, free and clear of all liens, encumbrances, restrictions, options to purchase, and easements, except as may be expressly waived by Purchaser. 6. Conditions to Closing. Closing of the transaction contemplated by this Agreement and the obligation of Seller to sell the Subject Property and of Purchaser to purchase the Subject Property is subject to the following conditions: 6.1 Purchaser shall have determined on or before the Closing Date that it is satisfied, based upon the results of and matters disclosed by any environmental or soil investigations or testing of the Property, that there are no environmental or soil conditions that would interfere with the Purchaser's proposed use of the Subject Property; and 6.2 Purchaser shall have reviewed and approved title to the Subject Property pursuant to Section 5 of this Agreement. The above contingencies are for the sole benefit of Purchaser, and Purchaser shall have the right to waive those contingencies by giving written notice to Seller. If the contingencies set forth in this Section 6 have not been satisfied or waived by the Closing Date, Purchaser or Seller may terminate this Agreement by giving written notice to the other on or before the Closing Date. 7. Environmental and Soil Investigation. Purchaser and its agents shall have the right, at its sole option and risk, to enter the Subject Property for the purpose of testing soils, boring, surveying, or doing other such work as may be necessary to determine the suitability of the Subject Property for use by Purchaser. If Purchaser investigates and tests the Subject Property pursuant to this Section 7, Purchaser shall pay all costs and expenses of such investigations and testing and shall hold Seller harmless from all damages and liabilities arising out of Purchaser's activities. Upon request by Purchaser, Select Product- Wolumby) 02 -18 -09 Page 2 of 16 - a Seller shall also permit Purchaser to review all environmental reports and files, if any, relating to the Subject Property and in Seller's possession or control. Purchaser may terminate this Agreement if it is not satisfied with the results of its investigation of the Subject Property. 8. Costs and Prorations. Seller and Purchaser agree to the following prorations and allocation of costs in connection with this Agreement and the transaction contemplated hereby: 8.1 Purchaser shall be responsible for closing costs including: a. State deed tax applicable to the transfer of the Subject Property to Purchaser: b. Well certificate filing fee, if applicable. c. Conservation fee. d. Recording fees related to filing the Deed. e. Title company closing fee, if any. 8.2 Seller shall be responsible for: a. all recording fees and charges related to the filing of any instrument required to make title marketable. b. fees incurred by Seller in extending the abstract of title or obtaining title evidence. 8.3 Seller shall be responsible for payment of the Real Estate taxes due and payable in the year of sale prorated to the Closing Date. Seller shall pay all real estate taxes due and payable for the years prior to Closing Date, together with all special assessments pending or levied against the Subject Property. 8.4 Each of the parties shall pay all of its own respective attorneys' and/or brokers' fees in connection with the negotiation, preparation and closing of this Agreement and the transaction contemplated hereby. 9. Closing. 9.1. Closing shall occur on April 30, 2009, or at such other date as may be agreed to by the parties in writing ( "Closing Date"). Closing shall take place at the offices of a closing company selected by Purchaser or at such other location as may be mutually agreeable in writing to the parties. 9.2. On the Closing Date, Purchaser shall deliver to Seller the Purchase Price and . Seller shall execute and/or deliver to Purchaser: (a) A duly executed general warranty deed ( "Deed "), conveying marketable title to the Property, subject only to: (i) building and zoning laws, ordinances, state and federal regulations; and (ii) Select Product- (Molumby) 0248 -09 Page 3 of 16 t utility and drainage easements which do not interfere with Purchaser's intended use of the Property; (b) A duly executed affidavit regarding Seller; (c) A well disclosure certificate or indication on the Deed that there is no well; (d) Affidavit of non - foreign identity; (e) Abstract or owner's duplicate certificate of title; (f) Other documents customarily and reasonably required by P.urchaser's title examiner or title insurer. 10. Possession/Condition of Property. Buyer shall allow Seller to occupy the property through April 30, 2010, pursuant to the terms of the Lease Agreement attached hereto as Exhibit C. Seller shall deliver possession of the Property to Buyer on or before April 30, 2010, in the same condition as the Property existed on the date of this Purchase Agreement subject to normal wear, tear and salvage 11. Damages to Real Property. If the Subject Property is substantially damaged prior to closing, Purchaser may at its sole option rescind this Agreement by notice to Seller within ten (10) days after Seller notifies Purchaser of the damage, during which 10 -day period Purchaser may inspect the Subject Property. 12. Personal Property Not Included. Seller shall remove all personal property, not included in this sale, prior to the possession date. 13. Covenants, Representations and Warranties of Seller. 13.1. Seller represents that it is the fee owner of the Subject Property. The signatories to this Agreement represent that they are authorized to execute this Agreement on behalf of Seller. 13.2. Seller agrees to take no actions to encumber title to the Subject Property between the date of this Agreement and the time the Deed is delivered to Purchaser. 13.3. Seller warrants that it has not used the Subject Property for the storage of hazardous substances or petroleum products and, as of the date of this Agreement, is not aware of any facts the existence of which would constitute a violation of any local, state or federal environmental law, regulation or review procedure or which would give any person a valid claim under the Minnesota Environmental Rights Act or the federal Comprehensive Environmental Response, Compensation and Liability Act. The foregoing is applicable only to Seller's actual knowledge of facts, and Seller represents that Seller has made no independent investigation of the Subject Property. 13.4. Seller warrants that there has been no labor or material furnished to the Subject Property for which payment has not been made. Select Product- (Molumby) 02 -18 -09 Page 4 of 16 13.5. Seller warrants that the Subject Property is connected to city water and city sewer. 13.6. Seller warrants that the buildings are entirely within the boundary lines of the Property. 13.7. Seller warrants that Property is not occupied by any tenant and no person or entity has any leasehold interest in the Property. 13.8. Seller warrants that on the Closing Date there will be no service contracts in effect in connection with the Subject Property, except those which are terminable on thirty (30) days' written notice. 13.9. Seller warrants that Seller has received no notice of any action, litigation, investigation or proceeding of anykind pending against Seller, nor to the best of Seller's knowledge is any action, litigation, investigation, or proceeding pending or threatened against the Subject Property, or any part thereof. 14. Covenants, Representations and Warranties of Purchaser. Purchaser is a public body corporate and politic under the laws of the state of Minnesota and has the power to enter into this Agreement and carry out its obligations hereunder. The signatories to this Agreement represent that they are authorized to execute this Agreement on behalf of Purchaser. 15. Well Disclosure. Seller will certify on the Deed that it knows of no wells on the Subject Property. or will furnish a well disclosure certificate. 16. Underground Storage Tanks. Seller is not aware of any underground storage tanks on the Subject Property. 17. Broker Commissions. Seller and Purchaser are responsible for their own respective real estate brokerage fees or commissions. 18. Miscellaneous. 18.1. This Agreement represents the complete and final agreement of the parties regarding sale of the Subject Property and supersedes any prior oral or written understanding. This Agreement may be amended only in writing executed by both parties. This Agreement shall be binding on the parties hereto, their successors and assigns. 18.2. Purchaser and Seller represent and warrant that the recitals contained herein are true and accurate as of the date of execution of this Agreement. All warranties and representations by Seller and Purchaser shall survive the closing of this transaction. Select Product- (Molumby) 02 -18 -09 Page 5 of 16 F 18.3 All notices required hereunder shall be given by depositing in the U.S. mail, postage prepaid, certified mail, return receipt requested, to the following addresses (or such other addresses as either party may notify the other) To the Seller: Michelle Molumby 585 Pierce Terrace Columbia, MN 55421 To the Purchaser: William M. Burns City Manager/Executive Director City of Fridley 6431 University Ave. NE Fridley, MN 55432 -4303 19. Assignment Purchaser shall have the right to assign its interest under this Agreement, without first obtaining the consent of Seller, provided that Purchaser shall remain liable to Seller under this Agreement. 20. Survival. All of the terms, covenants, conditions, representations, warranties and agreements contained in this Agreement shall survive and continue in force and effect and shall be enforceable after the Closing Date. 21. Effective Date of Agreement. This Agreement shall become effective and shall be binding upon the parties hereto only after it has been executed by each of the parties hereto. Purchaser will have no more than forty -five (45) days after date of Seller's acceptance of this agreement to accept and sign this Agreement. 22. Specific Performance. This Purchase Agreement may be specifically enforced by the parties, provided that any action for specific enforcement is brought within six months after the date of the alleged breach. This paragraph is not intended to create an exclusive remedy for breach of this agreement; the parties reserve all other remedies available at law or in equity. 23. Minimum Compensation. Seller acknowledges and stipulates that the purchase price fulfills the minimum compensation requirements due to sellers by Minnesota Statute § 117.187. 24. Relocation. The $305,000.00 acquisition price includes a fixed $20,000.00, "Payment in Lieu Relocation Payment'' for any and all relocation benefits due the Seller. Relocation benefits are defined at Minnesota Statute 117.52 commonly known as the Minnesota Uniform Relocation Act. 02 18 -09 Page 6 of 16 Select Product- (Molumby). - 25. Eminent Domain. It is acknowledged by and between the parties hereto that acquisition of the subject property is being acquired by the Purchaser to be used for a "public purpose" and in the event that the parties have not entered into this Purchase Agreement, the Purchaser would have instituted eminent domain proceedings to acquire same. Accordingly, this Agreement is in lieu of the institutions of formal eminent domain proceedings within the meaning of Section 1033 of the United States Internal Revenue Code. PURCHASER: Housing and. Redevelopment Authority in and for the City of Fridley By Its: Lawrence R. Commers, Board Chairperson By William W Burns, City Manager/Executive Director SELLER: Michelle Molumby Michael Molumby DATE OF FINAL ACCEPTANCE Select Product- (Molumby) 02 -18 -09 Page 7 of 16 6 EXHIBIT A ATTACHMENT TO PURCHASE AGREEMENT LEGAL DESCRITION: Lots 16 and 17, Blockl3, "Hyde Park" The North half of vacated Broadway Avenue (now known as 59th Avenue), as dedicated in the plat of "Hyde Park", lying East of the Southerly extension of the West line of Lot 16, said plat, and lying West of the Southerly extension of the centerline of the vacated alley adjoining the East boundary of said Lot 16; The West half of the vacated alley in Block 13, "Hyde Park", as dedicated in said plat, lying South of the Easterly extension of the North line of Lot. 17, said plat, and lying North of the Easterly extension of the South line of lot 16, said plat, said alley being subject to an easement for utility purposes to the City of Fridley. Lot 9, Block 3, `BENNETT- PALMER ADDITION" Subject to reservations of minerals and mineral rights by the Sate of Minnesota, as to Lots 16 and 17, Block 13, "Hyde Park". Subject to easements for utility purposes as set forth in the dedication clause and as shown on the plat of `BENNETT -PALMER ADDITION", as to Lot 9, Block 3, said plat. Select Product- (Molumby) 02 -18 -09 Page 8 of 16 EXHIBIT B ATTACHMENT TO PURCHASE AGREEMENT SALVAGE LIST 5905 University Ave. NE Fridley, MN Seller may remove the following items at Seller's expense by the Possession Date. Dated Any and all items subject to leaving the property in a condition that it can be secured from unauthorized entry. SELLER Michelle Molumby Michael Molumby Select Product- (Molu»iby) 03 -18 -09 Page 9 of 16 EXHIBIT C LEASE AGREEMENT On this day of , 2009, the Housing and Redevelopment Authority in and for the City of Fridley, hereinafter the "Landlord," and Michelle and Michael Molumby, wife and husband, hereinafter the "Tenant," agree to enter into this Lease Agreement with the following terms and conditions: 1. Property and Use: 5905 University Avenue NE, Fridley, Minnesota. 2. Term: Beginning Date: May 1, 2009 Ending Date: April 30, 2010 3. Holding Over: Subject to Section 16 herein, if Tenant remains in possession of the Property after the Ending Date, and the Tenant and Landlord have not renewed this Lease or entered into a new lease, this Lease Agreement will be extended under its original provisions and obligations, except (a) the Term shall be changed to month -to -month and (b) the monthly rent shall be $2,033.00 (8% of Purchase Price on a monthly basis). 4. Intentionally left blank. 5. Monthly Rent: Rent in the amount of $ -0- will apply for a period of the first 6 months. From months 7 through 12, the tenant will pay a rent amount of $ 1,100.00 per month. A late fee of $100.00 will be added if any rent payment is not received by the 3rd of each month. 6. Security Deposit: None. 7. Utilities: The Tenant must furnish and must pay for any and all utilities used at the Property by maintaining an account with the service provider in the Tenant's name. 8. "As Is" Condition: The Landlord makes no representations, warranties or statements, whether express or implied, with regard to the condition of the Property, nor to its suitability for occupancy by the Tenant. The Tenant leases the Property "as is," "where is," and Select Product- (Molumby) 02 -18 -09 Page 10 of 16 with all faults. 9. Maintenance: The Tenant is responsible for any and all repairs and maintenance of the Property during the Term of the Lease Agreement, including but not limited to lawn mowing, weed control, snow removal, leaf raking, general upkeep of the exterior and interior of the building, and maintenance and repair of all structural, mechanical and plumbing systems. IF TENANT FAILS TO MAKE REPAIRS REASONABLY REQUIRED BY LANDLORD UNDER THIS LEASE FOR A PERIOD OF TEN (10) DAYS AFTER NOTICE FROM LANDLORD, LANDLORD MAY (BUT IS NOT REQUIRED TO) MAKE SUCH REPAIRS AND CHARGE TENANT FOR THE COST OF SUCH REPAIRS AS ADDITIONAL RENT. Landlord acknowledges that it intends to ultimately redevelop the Property and demolish the building following termination of this Lease Agreement. Accordingly, Landlord agrees to act in a commercially reasonable fashion under this Section, and acknowledges that the intent of this Section is that the building shall be in a safe and secure condition upon termination of the Lease Agreement. 10. Tenant Damages to Property: All costs for any damage to the Property caused by the conduct of the Tenant or Tenant's guests, agents, or family members must be reimbursed to the Landlord within three (3) days after demand for payment by Landlord. 11. Use of Property: The Tenant will occupy the Property solely for the use. of Select Products Company of Minneapolis, Inc. Tenant agrees that Tenant will: (a) comply with all local, state and federal laws and regulations: (b) not` allow "contraband" or "controlled substances" (as those are defined under Minnesota law) to be on the Property in violation of Minnesota law; and (c) not manufacture, transfer, or possess "contraband" or "controlled substances" (as those are defined under Minnesota law), or allow anyone else under Tenant's control to manufacture, transfer, or possess those items on the Property. Select Product- (Molumby) 02 -18 -09 Page I1 of 16 If Tenant's or anyone else under Tenant's control in the use of the Property results in a violation of any laws or regulations, Tenant will pay the amount of any fines, penalties, or costs II imposed for such violations. Also, the violation of any laws by a Tenant or anyone else under Tenant's control on the Property may cause the Landlord to terminate this Lease Agreement immediately. 12. Landlord Right to Entry: The Landlord, or its agents, may enter the Property at any reasonable time to conduct predevelopment activities and inspections. The Landlord may enter the building at any time after reasonable notice to the Tenant for the purpose of asbestos abatement studies, demolition studies or similar predevelopment activities. 13. Subletting or Assignment: This Lease Agreement may not be assigned to another person or entity by the Tenant, nor shall the Tenant allow any other person or entity to occupy the Property. Tenant shall not be permitted to sublease the property to any third party. 14. Damage or Destruction of Property: In the event that the Property is damaged or destroyed and the property is no longer deemed habitable or fit for occupancy, this Lease Agreement shall be immediately terminated upon written notice by either party to the other party with no further obligation by the Landlord to the Tenant. 15. Surrender: On or before the last date of the Term or on the sooner termination thereof, Tenant must surrender the Property in good order, condition, and repair. Tenant must remove all movable fixtures and other moveable property from the Property, and any property not removed shall be deemed abandoned, subject to the agreed upon salvage provisions of the ,2009 Subject Property Purchase Agreement. 16. Possession After Termination: If Tenant fails to leave the Property and give possession to Landlord on or before the Ending Date, Landlord is authorized to take any action permitted by law to take possession of the Property, and Landlord will be entitled to recover Select Product- (Molumby) 02 -18 -09 Page 12 of 16 damages from Tenant for Landlord's loss of use in the amount of $100 per day, beginning with the Ending Date specified above, in addition to all charges and reimbursements stated in this Lease Agreement and all reasonable costs which result from obtaining possession of the Property and enforcing the terms of the Lease Agreement, including reasonable attorneys fees. 17. Improvements: Tenant may not make any, alterations, improvements, or additions to the Property without the prior written consent of the Landlord. Tenant agrees to pay all sums of money for any labor, services, materials, supplies, or equipment fiunished or alleged to have been furnished to Tenant in or about the Property. 18. Notices: Tenant agrees that notices and demands mailed to the Tenant at the Property address or hand- delivered by the Landlord to the Tenant at the Property are proper notice to the Tenant and are effective upon mailing or hand- delivery by the Landlord. All notices by the Tenant to the Landlord shall be made in writing and mailed or hand - delivered to the Landlord at the following address: William. W. Burns, City Manager/Executive Director City of Fridley 6431 University Avenue NE Fridley, MN 55432- 4303 - Notices and requests by the Tenant to the Landlord are effective upon mailing or hand delivery by the Tenant. 19. Indemnity; Insurance: Tenant agrees to indemnify and hold Landlord harmless from and against any demand, claim, loss or damage, including costs and reasonable attorney's fees incurred by Landlord,.. arising out of any injury, death, property damage or other matter occurring in, on or about, or alleged to arise out of or in connection with Tenant's use and occupancy of the Property unless such injury, death, damage or matter was proximately caused by Landlord's negligence or willful act. During the entire term of this Lease Agreement and any Select Product- (Molumby) 02 -18 -09 Page 13 of 16 extensions or renewals thereof, and any holdover tenancy, Tenant shall obtain and keep in full force and effect, at Tenant's sole cost and expense: a. Liability Insurance. Tenant shall maintain a policy of comprehensive public liability insurance with respect to the Property, written by a casualty or indemnity company authorized to do business in Minnesota, under which policy Landlord shall be named as an additional insured, and with not less than $1,000,000 single coverage limits for each occurrence of injury or property damage. Prior to the commencement of this_ Lease, Tenant shall furnish Landlord with said policy or with a certificate evidencing that said insurance is in effect, which shall state that Landlord will be notified in writing thirty (30) days prior to any cancellation, material change or renewal of said insurance. b. Casualty Insurance. Tenant shall maintain a "renter's" policy insuring its own personal property, now or later located on or a part of the property, against loss by fire, extended coverage perils, vandalism, malicious mischief, etc. Landlord shall have no responsibility for loss of any kind, for tenant's personal property, unless such loss was proximately caused by Landlord's negligence or willful act. C. Waiver of Subrogation. Landlord and Tenant hereby waive any and all rights of subrogation that they may have against the other arising out of any claim for property damage or personal injury to the extent covered by any insurance policy maintained by such party. 20. Default by Tenant: If Tenant does not pay the rent or other amounts when due or if Tenant violates any term of this Lease Agreement, Landlord may terminate this Lease. If Tenant does not move out, Landlord may bring an eviction action. If Tenant violates a term of this Lease Agreement and Landlord does not terminate this Lease Agreement or evict Tenant, Select Product- (Molumby) 02 -18 -09 Page 14 of 16 4 � s Landlord may still terminate this Lease Agreement and evict Tenant for any other violation of this Lease Agreement. Landlord may use its legal rights and remedies in any combination. By using one or more of these rights or remedies, Landlord does not give up any other rights or remedies it may have. Acceptance of rent does not waive Landlord's right to evict Tenant for any past or existing violation of any term of this Lease Agreement. Rent is due under this Lease Agreement even if Tenant surrenders the Property or is evicted by Landlord. If contraband or a controlled substance manufactured, distributed, or acquired in violation of Minnesota law is seized in the Property or on the property in which the Property is located incident to a lawful search or arrest, and if Tenant has no defense under Minnesota Statutes § 609.5317, Tenant shall have no further right to possession of the Property, and Landlord may bring an eviction action against Tenant. If Landlord brings any legal action against Tenant, Tenant must pay Landlord's actual attorneys' fees and court costs even if rent is paid after the legal action is started. 21. Owner and Management: The following is provided under Minnesota Statutes: a. ' Authorized Manager of Property: City of Fridley, William W. Burns, City Manager/Executive Director. b. Address: 6431 University Avenue NE, Fridley, MN 55422 C. An owner of the Property or an agent authorized to accept service of process and receive and give receipt for notices and demands: William W. Bums, City Manager/Executive Director. d. Address: 6431 University Avenue NE, Fridley, MN 55422 22. Binding Effect: The terms of this Lease Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of Landlord and Tenant. 23. Liability of Landlord: Landlord's obligation pursuant to this Lease Agreement shall be non - recourse to Landlord, except to the extent of Landlord's interest in the Property. Select Product- (Molumb); 02 -18 -09 Page,15 of 16 .>ayr._ F ",.5- - t aY 5xfdE3 i� ZS :}�+��.a.w Y y�L;jCs� } jai. of I�o� Bvw SV V � ` « L,� tam '.Re Andwity Icw fa ilium c yy .;YiT,d R a a li"=S' "a..,. f ,x}�ti� �. ✓ ;`_ # T 'v}.*,I ..� ai .f+i 3 .- i x -'3 % ae» r� bf y Ik.Ooy, ji yY }` q5 e f c fV Al 5 g TSfR� $ jt�i`� ., �'.*,.., ,.•, {�f ",',y:'4tx...1 P..f f: .f f 5 .' Page 16 of 1 Fridley HRA Housing Program Summary Cover Page March 5, 2009 HRA Meeting Report Loan Application Summary Loan Origination Report Remodeling Advisor Description Loan application activity (e.g. mailed out, in process, closed loans) for December and year -to -date. Loan originations for December and year -to -date. Shows the number of field appointments scheduled and completed the Remodeling Advisor Services administered by Center for Energy and Environment. * * *** At the time this packet was being compiled, we had not received the monthly report from CEE. The information will be provided at next weeks meeting. M— Paul's Documents\HRA\IIRA Agenda Itemsl2009\March 5, 2009\Housing Program Cover March09.doc Voksne FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY March 5, 2009 IMM3 1. Northstar Update Construction On Friday February 27`h, the Anoka County Regional Rail Authority is going to issue the Notice to Proceed on construction to Lund - Martin. They expect work to begin as soon as Monday! Groundbreaking The Northstar Project Office is hosting a groundbreaking ceremony and open house for the Fridley Station on Tuesday March 3 ". Jill Brown in the Northstar Office is handling all of the details, including invitations. The groundbreaking is set to take place at 4 PM on March 3"' and an informational open house will follow in the City Hall lobby from 5 -7 PM. Station Area Planning / Joint Council Meeting Staff is awaiting confirmation from the Northstar Project Office on a final date / time / location for the line -wide Transit Oriented Design workshop. Joy Miciano of the Northstar Project provided the following: Right now we are looking to having the workshop be on Thursday, April 2 and are looking into location availability right now, possibly in Coon Rapids. We are planning a technical session for city and county planners starting at 2:30 until 4:15. And then from 4:30 -6:00 we will have a session for both planners and public officials. You are more than welcome to share this information with the Council and HRA members, but please let them know that it is still tentative; it will be dependent on the availability of speakers. Once a firm time, date and location have been set I will pass the information on to you immediately so that you can put it on your calendars. We will then be able to set up a joint meeting with the Council shortly after the TOD workshop. 2. Select Senior Living The City Council granted approval for this senior living complex in early February. Construction is expected to take place this summer. If there are any items you would like covered in upcoming issues of the Non - Agenda Update please send me an e -mail. bolinp @ci.fridley.inn.us fH a COMMUNITY DEVELOPMENT DEPARTMENT PLANNING DIVISION Memorandum DATE: February 25, 2009 TO: HRA Members FROM: Scott Hickok, Community Development Director Stacy Stromberg, Planner SUBJECT: East Moore Lake Landscape Revitalization Project PROJECT OVERVIEW Over the last few years, City staff, Council and Commission members, as well as the general public has expressed concerns about the overall condition of the landscaped retaining walls on the boulevards and the medians along East Moore Lake Drive, between Hwy 65 and Central Avenue. As part of the redevelopment of this area in 1988, a Landscape and Maintenance Agreement was drawn up between the property owners and the City. In that agreement, the City agreed to construct and install the landscaping in the boulevard and medians, with the condition that the property owners maintain the quality of landscape that would be consistent with a first class business park Some of the property owners have been notified by the City is the past for their lack of maintenance of these landscaped areas. A few years ago the City even coordinated with the property owners to hire a contractor to specifically maintain these areas, in the hopes that with some extra attention, the shrubs /plants could be brought back to life and revitalized. Staff was disappointed with the contractor's lack of effort in restoring the plant material; simply mowing and selectively pruning the vegetation did not bring back the appearance of the planting areas. It also should be pointed out that the majority of the existing plants in the landscaped beds have been there since 1988 and due to the lack of maintenance, have probably met their life expectancy. In an effort to revitalize this prominent area of Fridley, City staff has met with a landscape company to develop a new landscape plan for the retaining wall beddings and medians along East Moore Lake Drive. We have scheduled a meeting with the property owners for March 11, 2009 to review the proposed plan and to ask for their participation in the project. City staff has determined that the best way to finance this project would be to have all property owners involved equally spilt the costs of the project. The project entails the removal and disposal of the unsalvageable plant material, trees, sod, and landscape rock and installation of new plants /shrubs and trees, plus preparing the landscape beds with new edging and rock /mulch. Staff has included in your packet the proposed design of the new planting beds, showing the types of material to be used. RECOMMENDATION Staff asks that the HRA consider sharing 1/5 of the cost of the proposed redevelopment project (estimated cost is $10,817.40). Staff is not asking for the commitment at this time, simply your consideration. A meeting with the other 4 property owners will be held on Wednesday March 4, 2009. The purpose of that meeting will be to present the project and to request their consideration as well. A pie chart has been included in your packet to show the cost of the proposed project as it related to all property owners involved. 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