HRA RES 2000-05 - 00002006RESOLUTION NO. HRA 5-2000
A RESOLUTION DETERMINING THE NECESSITY FOR AMENDMENT TO THE
PURCHASE AND SALE AGREEMENT AND ESCROW AGREEMENT RELATING TO
LOTS 2 AND 3, BLOCK 1, HERWAL' S RICE CREEK ADDITION, FRIDLEY,
MINNESOTA, AND AUTHORIZING EXECUTION AND DELIVERY OF A SECOND
AMENDMENT TO SAID AGREEMENTS
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. B�citals.
1.01. It has been proposed that the Authority acquire Lots 2 and 3, Block 1, Herwal's Rice Creek
Addition, City of Fridley, Minnesota (the "Propert�') for redevelopment purposes.
1.02. The Authority has entered into a Purchase and Sale Agreement (the "Purchase Agareement")
with the owners of the Property, Daniel H. Erickson, 7ohn Chisholm, Rodric L. Guindon, Harm A.
Weber, J. Richard Burton, and Donald Ericksen (collectively, the "Seller"), in order to facilitate the
acquisition of the Property. The Authority has also entered into an Escrow Agreement (the "Escrow
Agreement") with the Seller and Old Republic Title Insurance Company (the "Escrow Agent") in order
to facilitate the acquisition of the Property.
1.03. The Purchase Agreement provides that purchase of the Property by the Authority is contingent
upon a number of factors, including the Authority's determination, in its sole discretion, that results of
the Authority's investigations of the Property show that the conditions of the Property are acceptable
to the Authority. The Escrow Agreement provides that the agreed-upon purchase price for the
Property shall be held in escrow and released if and when this transaction closes.
Section 2. Fin�.
2.01. The Authority hereby finds that the results of its investigations of the Property show that the
conditions of the Property are unacceptable. More specifically, the Authority finds that the
investigations show that the soil conditions of the Property are not acceptable for future
redevelopment.
2.02. The Authority hereby finds that the soil issues which render the Property unacceptable for
future redevelopment are correctable, and that estimates have been presented to the Authority stating
that such correction may cost $85,900.00.
2.03. The Authority hereby finds that redevelopment of the Property would best be facilitated if the
sum of $85,900.00 were retained by the Escrow Agent and disbursed in accordance with instructions
of the Seller and the Authority in the future as such work is performed.
HRA Resolution No. 5-2000
Section 3. Anth�ri�ati�ns
Page 2
3.01. The Chairperson and the Executive Director of the Authority (the "Officers") are hereby
authorized to execute and deliver a Second Amendment to the Purchase Agreement and Escrow
Agreement. The Second Amendment will substantially conform with the Second Amendment
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.
3.02. Upon execution and delivery of the Second Amendment, 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 Purchase Agreement and the Escrow
Agreement, as amended, and to further proceed towards the closing of the transaction
contemplated by the Purchase Agreement.
PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT
AUTHORITY 1N AND FOR THE CITY OF FRIDLEY, NIlNNESOTA THIS lgt DAY OF JUNE,
2000.
LAWRENCE R. COMIV�RS, CHAIRPERSON
ATTEST:
WII,LIAM W. BURNS, EXECUTIVE DIRECTOR