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4.2. ERMUSR 09-11-2012Elk Ri Munic a ties UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. — General Manager John Dietz — Chair Daryl Thompson — Vice Chair Al Nadeau — Trustee MEETING DATE: AGENDA ITEM NUMBER: Se tember 11, 2012 4.2 SUBJECT: Purchase of Property (Parcel ID #75- 411 -0210 BACKGROUND: The property at 1639 Main Street NW (Parcel ID# 45- 411 - 0210), north of ERMU's Field Services building, has been listed for sale. Because of this property's location, it would be desirable for the Utilities acquisition for future expansion, storage, or parking needs. At the August 2012 Utilities Commission meeting, the Commission authorized staff to negotiate the purchase of the property with final approval being awarded by the Utilities Commission. DISCUSSION: Staff has met with the Real Estate agent and inspected the home. Staff submitted an offer letter on August 24, 2012, for $134,900. This offer was accepted and a purchase agreement has been drafted. This property would be subject to property tax until it is used for a municipal function. This capital purchase was unbudgeted requires Commission approval for purchase based on policy criteria. As a result of above normal temperature for much of this year, utility sales are above budget for both the water and electric funds. This purchase can be made out of the unbudgeted margins. ACTION REQUESTED: Staff recommends the Utilities Commission authorize the purchase of 1639 Main Street NW (Parcel ID #75411- 0210). ATTACHMENTS: • Sherburne County, MN, Beacon Satellite Map of 1639 Main Street NW (Parcel ID#75- 441 -0210) • Sherburne County, MN, Beacon Property Summary for 1639 Main Street NW (Parcel ID #75- 441 -0210) • Purchase Agreement for 1639 Main Street NW (Parcel 113475-441-0210) • Elk River Municipal Utilities offer letter dated August 24, 2012 M Rellsble Public Power Provider Page 1 of 1 POIIEflEI ar NAN YUR� Pow. 1r To 5 , . �, N Sherburne i' rt ,( 1 4 I ..... c,, 1703 Main St MW Data Created: 7/1012012 Parcel ID 75-133 -4210 1w ownships :Dads ,arcels Wetlands 4 Flood .2 PCT ANNUAL HANCE FLOOD AZARD, E, E - FLOODWAY Parcel ID 75- 133 -4210 Alternate ID n/a Owner Address n/a Sec /Twp /Rng 33 -33 -26 Class 201 - Residential 1 unit Property Address 1703 MAIN ST NW Acreage 6.60 ELK RIVER District ELK RIVER CITY Brief Tax Description n/a (Note: Not to be used w legai documents) I ast Data Upload: 7:19:57 AM Disclaimer: Every attempt has been made to ensure that the information contained on this web site is valid at the time of publication. Sherburne County developed by reserves the right to make additions, changes, or corrections at anytime and without notice. Additionally, Sherburne County disclaims any and all liability for damages incurred directly cr indirectly as a result of errors, omissions or discrepancies and is not responsible for misuse or misinterpretation. Data is The Schneider Corporation updated periodically. For the most current information contact the appropriate county department. Schneider www- sohneidercorp.com PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORS*, which disclaims any liability arising out of use or misuse of this form. 0 2011 Minnesota Association of REALTORS®, Edina, MN 1. Date 08/29/12 2. Page 1 of 3. RECEIVED OF Elk River Municipal Utilities 4. 5. the sum of Dollars ($ ) 6. by ❑ CHECK ❑ CASH ❑ NOTE as earnest money to be deposited upon Final Acceptance of Purchase --- ----------------- (check one. --- .--- - --------------- 7. Agreement by all parties, on or before the third Business Day after Final Acceptance, in the trust account of listing 8. broker, unless otherwise agreed to in writing, but to be returned to Buyer if Purchase Agreement is not accepted 9. by Seller. 10. Said earnest money is part payment for the purchase of the property located at 11. Street Address: 1639 Main St 12. City of Elk River County of Sherburne 13. State of Minnesota, legally described as 14. PID 754110210 15. 16. 17. including all fixtures on the following property, if any, owned by Seller and used and located on said property, 18. including but not limited to garden bulbs, plants, shrubs and trees; storm sash, storm doors, screens and awnings; 19. window shades, blinds, traverse and curtain and drapery rods; attached lighting fixtures and bulbs; plumbing 20. fixtures, water heater, heating plants (with any burners, non -fuel tanks, stokers and other equipment used in connection 21. therewith), built -in air - conditioning equipment, electronic air filter, water softener ® OWNED ❑ RENTED ❑ NONE, ---- ------ ...... .4check one.}---------- -- ---- -- 22. built -in humidifier and dehumidifier, liquid fuel tank(s) ❑ OWNED ❑ RENTED ® NONE and controls (if the --- ------ -- ------------ (check one.}---------- ---- - - - - -- 23. property of Seller), sump pump; attached television antenna, cable TV Jacks and wiring; BUILT -INS: dishwashers, 24. garbage disposals, trash compactors, ovens, cook -top stoves, microwave ovens, hood fans, intercoms; 25. ATTACHED: carpeting; mirrors; garage door openers and all controls; smoke detectors; fireplace screens, doors and 26. heatilators; AND the following personal property: 27. 28. 29. 30. all of which property Seller has this day agreed to sell to Buyer for sum of ($ 134, 900.00 ) 31. One Hundred Thirty -Pour Thousand Nine Hundred Dollars, 32. which Buyer agrees to pay in the following manner: 33. 1. Cash of 100 percent ( %) of the sale price, or more in Buyer's sole discretion, which includes the earnest 34. money; PLUS 35. 2. Financing of 0 percent ( %) of the sale price, which will be the total amount secured against this property 36. to fund this purchase. 37. Such financing shall be (check one) ❑ a first mortgage; ❑ a contract for deed; or ❑ a first mortgage with 38. subordinate financing, as described in the attached Addendum: 39. ❑ Conventional ❑ FHA ❑ DVA ❑ Assumption ❑ Contract for Deed ❑ Other: 40. The date of closing shall be By 10/15 20 12 MN:PA -1 (8/11) i 8. PURCHASE AGREEMENT 41. Page 2 Date _- 08129/12 42. Property located at 43. This Purchase Agreement ❑ IS 0 IS NOT subject to a Contingency Addendum for sale of Buyer's property. ---- -(Check one.)- - ---- 44. (If answer is IS, see attached Addendum.) 45. (If answer is IS NOT, the closing of Buyer's property, if any, may still affect Buyers ability to obtain financing, if financing 46. is applicable.) 47. This Purchase Agreement ❑ IS X IS NOT subject to cancellation of a previously written purchase agreement ----- -(Check one. )- ---- 48. dated 20 49. (If answer is IS, said cancellation shall be obtained no later than , 20 . If 50. said cancellation is not obtained by said date, this Purchase Agreement is canceled. Buyer and Seller shall immediately 51. sign a Cancellation of Purchase Agreement confirming said cancellation and directing all earnest money paid 52. hereunder to be refunded to Buyer.) 53. Buyer has been made aware of the availability of property inspections. Buyer ❑ Elects ❑X Declines to have a ------ ---- (check one.N ----------- 54. property inspection performed at Buyer's expense. 55. This Purchase Agreement ❑ ISM IS NOT subject to an Inspection Contingency Addendum. - - - - -- (Check one.)- ----- - 56. (If answer is IS, see attached Addendum.) 57. DEED/MARKETABLE TITLE: Upon performance by Buyer, Seller shall deliver a 58. ® Warranty Deed or ❑ Other: Deed joined In by spouse, if any, conveying 59. marketable title, subject to 60. (a) building and zoning laws, ordinances, and state and federal regulations; 61. (b) restrictions relating to use or improvement of the property without effective forfeiture provisions; 62. (c) reservation of any mineral rights by the State of Minnesota; 63. (d) utility and drainage easements which do not Interfere with existing improvements; 64. (e) rights of tenants as follows (unless specified, not subject to tenancies): 65. 66. 67. (f) others (must be specified in writing): ;and 68. Seller shall pay on the date of closing all real estate taxes due and payable In all prior years including all penalties and 69. interest. 70. ❑ BUYER SHALL PAY ❑X SELLER SHALL PAY on date of closing any deferred real estate taxes (e.g., Green -- ---- -- -------- ---- -(Check me. ----------------- - ---- - -------------- - 71. Acres) or special assessments, payment of which is required as a result of the closing of this sale. 72. ❑ BUYER AND SELLER SHALL PRORATE AS OF THE DATE OF CLOSING ❑X SELLER SHALL PAY ON 73. DATE OF CLOSING all installments of special assessments certified for payment, with the real estate taxes due and 74. payable in the year of closing. 75. ❑ BUYER SHALL ASSUME ❑X SELLER SHALL PAY on date of closing all other special assessments levied as --- ----- ---- --- -- --- - ----- --(check one. )-' ------- ---- --------- --------------- 76. of the date of this Purchase Agreement. 77. ❑ BUYER SHALL ASSUME ❑X SELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as ___ .... - ................ - ----- --- ---- ----- -- --------- (Chock Dm). - ---- ---------------- -------------------------------- 78. of the date of this Purchase Agreement for Improvements that have been ordered by any assessing authorities. (Seller's 79. provision for payment shall be by payment into escrow of two (2) times the estimated amount of the assessments or 80. less, as required by Buyer's lender.) MN:PA -2 (8/11) ,moot PURCHASE AGREEMENT 81. Page 3 Date 08/29112 82. Property located at 1639 Main se 83. Buyer shall pay any unpaid special assessments payable in the year following closing and thereafter, the payment of 84. which is not otherwise herein provided. 85. As of the date of this Purchase Agreement, Seller represents that Seller ❑ HAS ❑X HAS NOT received a notice ---- -- --- (Checkone.) ----- - - -- 86. regarding any new improvement project from any assessing authorities, the costs of which project may be assessed 87. against the property. Any such notice received by Seller after the date of this Purchase Agreement and before closing 88. shall be provided to Buyer immediately. If such notice is issued after the date of this Purchase Agreement and on 89. or before the date of closing, then the parties may agree in writing, on or before the date of closing, to pay, provide 90. for the payment of or assume the special assessments. In the absence of such agreement, either party may declare 91. this Purchase Agreement canceled by written notice to the other party, or licensee representing or assisting the other 92. party, in which case this Purchase Agreement is canceled. If either party declares this Purchase Agreement canceled, 93. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and 94. directing all earnest money paid hereunder to be refunded to Buyer. 95. Buyer shall pay ❑X PRORATED FROM DAY OF CLOSING ❑ 12ths OF ❑ ALL ❑ NO real estate taxes due ------------- ----------- - - - --- ---- ------ --- --- --- -- - - - --- (Check one.} ----------------- - I -------------- --------------- 96. and payable in the year 20 12 97. Seller shall pay ❑X PRORATED TO DAY OF CLOSING ❑ 12ths OF ❑ ALL ❑ NO real estate taxes due and .- ------ - --- . ---- --- --------- - ------------ - . ------- (Check one.}_.-_..------------------------------- ---- - ---------- .------ 98. payable in the year 20 12 . If the closing date is changed, the real estate taxes paid shall, if prorated, be adjusted 99. to the new closing date. Seller warrants taxes due and payable in the year 20 12 shall be ❑X FULL- ❑ PARi ❑ NON- 100. homestead classification. -------------- (Check one.} --------- ------- 101. If Part- or non - homestead classification is checked, Seller agrees to pay Buyer at closing $ 0 102. toward the non - homestead real estate taxes. Buyer agrees to pay any remaining balance of non - homestead taxes 103. when they become due and payable. Buyer shall pay real estate taxes due and payable in the year following closing 104. and thereafter, the payment of which is not otherwise herein provided. No representations are made concerning the 105. amount of subsequent real estate taxes. 106. POSSESSION: Seller shall deliver possession of the property no later than immediately after closing. 107. Seller agrees to remove ALL DEBRIS AND ALL PERSONAL PROPERTY NOT INCLUDED HEREIN from the property 108. by possession date. 109. PRORATIONS: All interest; unit owners' association dues; rents; and charges for city water, city sewer, electricity and 110. natural gas shall be prorated between the parties as of date of closing. Buyer shall pay Seller for remaining gallons of 111. fuel oil or liquid petroleum gas on the day of closing, at the rate of the last fill by Seller. 112. TITLE AND EXAMINATION: As quickly as reasonably possible after Final Acceptance of this Purchase Agreement: 113. (a) Seller shall surrender any abstract of title and a copy of any owner's title insurance policy for the property, if 114. in Seller's possession or control, to Buyer or Buyer's designated title service provider; and 115. (b) Buyer shall obtain the title services determined necessary or desirable by Buyer or Buyer's lender, including 116. but not limited to title searches, title examinations, abstracting, a title insurance commitment or an attorney's 117. title opinion at Buyer's selection and cost and provide a copy to Seller. 118. Seller shall use Seller's best efforts to provide marketable title by the date of closing. Seller agrees to pay all costs 119. and fees necessary to convey marketable title including obtaining and recording all required documents, subject to the 120. following: 121. In the event Seller has not provided marketable title by the date of closing, Seller shall have an additional 30 days to 122. make title marketable, or in the alternative, Buyer may waive title defects by written notice to Seller. In addition to 123. the 30 -day extension, Buyer and Seller may, by mutual agreement, further extend the closing date. Lacking such 124. extension, either party may declare this Purchase Agreement canceled by written notice to the other party, or 125. licensee representing or assisting the other party, in which case this Purchase Agreement is canceled. If either 126. party declares this Purchase Agreement canceled, Buyer and Seller shall immediately sign a Cancellation of 127. Purchase Agreement confirming said cancellation and directing all earnest money paid hereunder to be refunded 128. to Buyer. MN:PA -3 (9/11) i nsOt PURCHASE AGREEMENT 129. Page Date 08/29 /12 130. Property located at 1639 Main St 131. SUBDIVISION OF LAND: If this sale constitutes or requires a subdivision of land owned by Seller, Seller shall pay 132. all subdivision expenses and obtain all necessary governmental approvals. Seller warrants that the legal description 133. of the real property to be conveyed has been or shall be approved for recording as of the date of closing. Seller warrants 134. that the buildings are or shall be constructed entirely within the boundary lines of the property. Seller warrants that 135. there is a right of access to the property from a public right -of -way. These warranties shall survive the delivery of the 136. deed or contract for deed. 137. MECHANIC'S LIENS: Seller warrants that prior to the closing, payment in full will have been made for all labor, materials, 138, machinery, fixtures or tools furnished within the 120 days immediately preceding the closing in connection with 139. construction, alteration or repair of any structure on, or improvement to, the property. 140. NOTICES: Seller warrants that Seller has not received any notice from any governmental authority as to condemnation 141. proceedings, or violation of any law, ordinance or regulation. If the property is subject to restrictive covenants, Seller 142. warrants that Seller has not received any notice from any person or authority as to a breach of the covenants. Any 143. such notices received by Seller shall be provided to Buyer immediately. 144. DIMENSIONS: Buyer acknowledges any dimensions, square footage or acreage of land or improvements provided 145. by Seller or broker may be approximate. Some information may have been provided by third parties and information 146. may be reliable but not guaranteed. Buyer shall verity the accuracy of information to Buyer's satisfaction, if material, 147. at Buyer's sole cost and expense. 148. ACCESS: Seller agrees to allow reasonable access to the property for performance of any surveys or inspections 149. agreed to herein. 150. RISK OF LOSS: If there is any loss or damage to the property between the date hereof and the date of closing for any 151. reason, including fire, vandalism, flood, earthquake or act of God, the risk of loss shall be on Seller. If the property 152. is destroyed or substantially damaged before the closing date, this Purchase Agreement is canceled, at Buyer's option, 153. by written notice to Seller or licensee representing or assisting Seller. If Buyer cancels this Purchase Agreement, 154. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and 155. directing all earnest money paid hereunder to be refunded to Buyer. 156. TIME OF ESSENCE: Time is of the essence in this Purchase Agreement. 157. ENTIRE AGREEMENT. This Purchase Agreement, any attached exhibits and any addenda or amendments signed 158. by the parties shall constitute the entire agreement between Seller and Buyer and supersedes any other written or 159. oral agreements between Seller and Buyer. This Purchase Agreement can be modified or canceled only in writing 160. signed by Seller and Buyer or by operation of law. The parties agree the electronic signature of any party on any document 161. related to this transaction constitute valid, binding signatures. All monetary sums are deemed to be United States 162. currency for purposes of this Purchase Agreement. Buyer or Seller may be required to pay certain closing costs, which 163. may effectively increase the cash outlay at closing or reduce the proceeds from the sale. 164. FINAL ACCEPTANCE: To be binding, this Purchase Agreement must be fully executed by both parties and a copy 165. must be delivered. 166. CALCULATION OF DAYS: Any calculation of days begins on the first day (calendar or Business Days as specified) 167. following the occurrence of the event specified and includes subsequent days (calendar or Business Days as specified) 168. ending at 11:59 P.M. on the last day. 169. BUSINESS DAYS: "Business Days" are days which are not Saturdays, Sundays or state or federal holidays unless 170. stated elsewhere by the parties in writing. 171. DEFAULT: If Buyer defaults In any of the agreements hereunder, Seller may terminate this Purchase Agreement 172. under the provisions of MN Statute 559.21. If either Buyer or Seller defaults in any of the agreements hereunder or 173. there exists an unfulfilled condition after the date specified for fulfillment, either party may cancel this Purchase 174. Agreement under MN Statute 559.217, Subd. 3. Whenever it is provided herein that this Purchase Agreement is 175. canceled, said language shall be deemed a provision authorizing a Declaratory Cancellation under MN Statute 559.217, 176. Subd.4. 177. If this Purchase Agreement is not canceled or terminated as provided hereunder, Buyer or Seller may seek actual 178. damages for breach of this Purchase Agreement or specific performance of this Purchase Agreement; and, as to 179. specific performance, such action must be commenced within six (6) months after such right of action arises. MN:PA -4 (8/11) i ser PURCHASE AGREEMENT 180. Page 5 Date 08/29/12 181. Property located at 182. NOTICE REGARDING PREDATORY OFFENDER INFORMATION: Information regarding the predatory offender 183. registry and persons registered with the predatory offender registry under MN Statute 243.166 maybe obtained 184. by contacting the local law enforcement offices in the community where the property is located or the Minnesota 185. Department of Corrections at (651) 361 -7200, or from the Department of Corrections web site at 186. www.corr.state.mn.us. 187. HOME PROTECTION/WARRANTY PLAN: Buyer and Seller are advised to investigate the various home protection/ 188. warranty plans available for purchase. Different home protection/warranty plans have different coverage options, 189. exclusions, limitations and service fees. Most plans exclude pre- existing conditions. (Check one.) 190. ❑ A Home Protection/Warranty Plan will be obtained and paid by[] BUYER ❑ SELLER to be issued by ------ --- -- (Check one. ) - - ----- - ---- 191 at a cost not to exceed $ 192• ❑X There will be no Home Protection/Warranty Plan as part of this Agreement. 193. ENVIRONMENTAL CONCERNS: To the best of Seller's knowledge, there are no hazardous substances or underground 194. storage tanks except herein noted: 195. 196. 197. 198. 199. 200. (Check appropriate boxes.) 201. SELLER WARRANTS THAT THE PROPERTY IS EITHER DIRECTLY OR INDIRECTLY CONNECTED TO: 202. CITY SEWER ❑X YES ❑ NO / CITY WATER ❑X YES ❑ NO 203. SUBSURFACE SEWAGE TREATMENT SYSTEM 204. SELLER CERTIFIES THAT SELLER ❑ DOES 0 DOES NOT KNOW OF A SUBSURFACE SEWAGE TREATMENT ------- - - - - -- - } (Check one. -------- - -.-.. 205. SYSTEM ON OR SERVING THE PROPERTY. (If answer is DOES, and the system does not require a state permit, 206. see Subsurface Sewage Treatment System Disclosure Statement.) 207. PRIVATE WELL 208. SELLER CERTIFIES THAT SELLER ❑ DOES ❑X DOES NOT KNOW OF A WELL ON OR SERVING THE ----- ._.... - -- .(Check one.}-..-.....-._. - 209. PROPERTY. (If answer is DOES and well is located on the property, see Well Disclosure Statement.) 210. THIS PURCHASE AGREEMENTE] IS X IS NOT SUBJECTTO A SUBSURFACE SEWAGE TREATMENTSYSTEM --- - - - - -- (Check one. --- - ----- 211. AND WELL INSPECTION CONTINGENCY ADDENDUM. (If answer is IS, see attached Addendum.) 212. IF A WELL OR SUBSURFACE SEWAGE TREATMENT SYSTEM EXISTS ON THE PROPERTY, BUYER HAS 213. RECEIVED A WELL DISCLOSURE STATEMENT AND /OR A SUBSURFACE SEWAGE TREATMENT SYSTEM 214. DISCLOSURE STATEMENT. MN:PA -5 (6/11) PURCHASE AGREEMENT 215. Page Date 0e /29 /12 216. Property located at 217. SELLER WARRANTSTHAT CENTRAL AIR-CONDITIONING, HEATING, PLUMBING AND WIRING SYSTEMS USED 218. AND LOCATED ON SAID PROPERTY SHALL BE IN WORKING ORDER ON DATE OF CLOSING, EXCEPT AS 219. NOTED IN THIS PURCHASE AGREEMENT. 220. BUYER HAS THE RIGHT TO A WALK- THROUGH REVIEW OF THE PROPERTY PRIOR TO CLOSING TO 221. ESTABLISH THAT THE PROPERTY IS IN SUBSTANTIALLY THE SAME CONDITION AS OF THE DATE OF 222. THIS PURCHASE AGREEMENT. 223. BUYER ❑ HAS ❑X HAS NOT RECEIVED A SELLER'S PROPERTY DISCLOSURE STATEMENT OR A --- ---- ------- 224. SELLER'S DISCLOSURE ALTERNATIVES FORM. 225. BUYER HAS RECEIVED THE INSPECTION REPORTS, IF REQUIRED BY MUNICIPALITY. 226. SELLER AGREES TO NOTIFY BUYER IMMEDIATELY IN WRITING OF ANY SUBSTANTIVE CHANGES FROM 227. ANY PRIOR REPRESENTATIONS REGARDING THE PROPERTY. 228. BUYER ACKNOWLEDGES THAT NO ORAL REPRESENTATIONS HAVE BEEN MADE REGARDING POSSIBLE 229. PROBLEMS OF WATER IN BASEMENT OR DAMAGE CAUSED BY WATER ICE OR ICE BUILDUP ON ROOF OF 230. THE PROPERTY. 231. NOTICE 232, Tony Powell is ® Seller's Agent ❑ Buyer's Agent ❑ Dual Agent ❑ Facilitator. (Licensee) '__._.__-_--- .___ ____ ..............__...`_(Check one.) ---..._ ---------- ---------------- _ ----------- _ 233. Avalar No (Real Estate Company Name) 234. Res Powell is ❑ Seller's Agent ® Buyer's Agent ❑ Dual Agent ❑ Facilitator. (Licensee) `.__'_.'___` _.__-_._.'._.'_..'_..__._ .... one.} --- _ ----- _. ... _.. ........... ....._.....______ 235. Avalar Mn (Real Estate Company Name) 236. THIS NOTICE DOES NOT SATISFY MINNESOTA STATUTORY AGENCY DISCLOSURE REQUIREMENTS. 237. DUAL AGENCY REPRESENTATION 238. PLEASE CHECK ONEOFTHE FOLLOWING SELECTIONS: 239. ❑ Dual Agency representation DOES NOTapply in this transaction. Do not complete lines 240 -256. 240. ❑X Dual Agency representation DOES apply in this transaction. Complete the disclosure in lines 241-256. 241. Broker represents both the Seller(s) and the Buyer(s) of the property involved In this transaction, which creates a 242. dual agency. This means that Broker and its salespersons owe fiduciary duties to both Seller(s) and Buyer(s). Because 243. the parties may have conflicting interests, Broker and its salespersons are prohibited from advocating exclusively for 244. either party. Broker cannot act as a dual agent in this transaction without the consent of both Seller(s) and Buyer(s). 245. Seller(s) and Buyer(s) acknowledge that 246. (1) confidential information communicated to Broker which regards price, terms, or motivation to buy or sell will 247. remain confidential unless Seller(s) or Buyer(s) instructs Broker in writing to disclose this information. Other 248. information will be shared; 249. (2) Broker and its salespersons will not represent the interest of either parry to the detriment of the other; and 250. (3) within the limits of dual agency, Broker and its salespersons will work diligently to facilitate the mechanics of 251. the sale. 252. With the knowledge and understanding of the explanation above, Seller(s) and Buyer(s) authorize and instruct Broker 253. and its salesperson to act as dual agents in this transaction. 254. Seller Buyer 255. Seller Buyer 256. Date Date. MN:PA -6 (6111) IA& PURCHASE AGREEMENT 257. Page 7 Date 08129/12 258. Property located at 259. OTHER: 260. 261. 262. ADDENDA AND PAGE NUMBERING: Attached addenda are a part of this Purchase Agreement. 263. Enter total number of pages of this Purchase Agreement, including addenda, on line two (2) of page one (1). 264. I, the owner of the property, accept this Purchase I agree to purchase the property for the price and on 265. Agreement and authorize the listing broker to withdraw the terms and conditions set forth above 266. said property from the market, unless instructed I have reviewed all pages of this Purchase 267. otherwise in writing. Agreement. 268. 1 have reviewed all pages of this Purchase Agreement. 269. ❑ If checked, this Purchase Agreement is subject to 270. attached Counteroffer Addendum. 271. X (Sellers signature) (Date) 272. X (Sellers Printed Name) 273. X (Marital Status) 274. X (sellers Signature) (Date) 275. X (Sellers Printed Name) 276. X (Marital Status) X (Buyers Signature) (Date) X (Buyers Printed Name) X (Marital Status) X (Buyers Signature) (Date) X (Buyers Printed Name) X (Marital Status) 277. FINAL ACCEPTANCE DATE: The date on which the fully executed Purchase Agreement is delivered. 278. 279. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S). 280, IFYOU DESIRE LEGAL ORTAX ADVICE, CONSULT AN APPROPRIATE aRnFFCetnunr 281. 1 ACKNOWLEDGETHAT 1 HAVE RECEIVED AND HAVE HADTHE OPPORTUNITYTO REVIEWTHE ARBITRATION 282. DISCLOSURE AND RESIDENTIAL REAL PROPERTY ARBITRATION AGREEMENT, WHICH IS AN OPTIONAL, 283. VOLUNTARY AGREEMENT AND IS NOT PART OF THIS PURCHASE AGREEMENT. 284. SELLER(S) BUYER(S) 285. SELLER(S) BUYER(S) MN:PA -7 (8111) ,110 ARBITRATION DISCLOSURE AND RESIDENTIAL REAL PROPERTY ARBITRATION AGREEMENT This form approved by the Minnesota Association of REALTORS®, which disclaims any liability arising out of use or misuse of this form. ® 2009 Minnesota Association of REALTORS®, Edina, MN 1. Page 1 2. ARBITRATION DISCLOSURE 3. You have the right to choose whether to have any disputes about disclosure of material facts affecting the use 4. or enjoyment of the property that you are buying or selling decided by binding arbitration or by a court of law. By agreeing 5. to binding arbitration, you give up your right to go to court. By signing the RESIDENTIAL REAL PROPERTY 6. ARBITRATION AGREEMENT (ARBITRATION AGREEMENT) on page two, you agree to binding arbitration under the 7. Residential Real Property Arbitration System (Arbitration System) administered by National Center for Dispute Settlement 8. (NCDS) and endorsed by the Minnesota Association of REALTORS® (MNAR). The ARBITRATION AGREEMENT is 9. enforceable only if it is signed by all buyers, sellers and licensees representing or assisting the buyers and the sellers. 10. The ARBITRATION AGREEMENT is not part of the Purchase Agreement. Your Purchase Agreement will still be 11. valid whether or not you sign the ARBITRATION AGREEMENT. 12. The Arbitration System is a private dispute resolution system offered as an alternative to the court system. It 13. is not government sponsored. NCDS and the MNAR jointly adopt the rules that govern the Arbitration System. NCDS 14. and the MNAR are not affiliated. Under the ARBITRATION AGREEMENT you must use the arbitration services of 15. NCDS. 16. All disputes about or relating to disclosure of material facts affecting the use or enjoyment of the property, excluding 17. disputes related to title issues, are subject to arbitration under the ARBITRATION AGREEMENT. This includes claims 18. of fraud, misrepresentation, warranty and negligence. Nothing in this Agreement limits other rights you may have under 19. MN Statute 327A (statutory new home warranties) or under private contracts for warranty coverage. An agreement to 20. arbitrate does not prevent a party from contacting the Minnesota Department of Commerce, the state agency that 21. regulates the real estate profession, about licensee compliance with state law. 22. The administrative fee for the Arbitration System varies depending on the amount of the claim, but it is more 23. than initial court filing fees. In some cases, conciliation court is cheaper than arbitration. The maximum claim allowed 24. in conciliation court is $7,500. This amount is subject to future change. In some cases, it is quicker and less expensive 25. to arbitrate disputes than to go to court, but the time to file your claim and pre- hearing discovery rights are limited. The 26. right to appeal an arbitrator's award is very limited compared to the right to appeal a court decision. 27. A request for arbitration must be filed within 24 months of the date of the closing on the property or 28. else the claim cannot be pursued. In some cases of fraud, a court or arbitrator may extend the 24 -month 29. limitation period provided herein. 30. A party who wants to arbitrate a dispute files a Demand, along with the appropriate administrative fee, with 31. NCDS. NCDS notifiesthe other party whomayfile a response. NCDS workswith he partiestoselect and appointan arbitrator 32. to hear and decide the dispute. A three - arbitrator panel will be appointed instead of a single arbitrator at the request 33. of any parry. The party requesting a panel must pay an additional fee. Arbitrators have backgrounds in law, real estate, 34. architecture, engineering, construction or other related fields. 35. Arbitration hearings are usually held at the home site. Parties are notified about the hearing at least 14 days in 36. advance. A parry may be represented by a lawyer at the hearing if he or she gives five (5) days advance notice to the 37. other party and to NCDS. Each party may present evidence, Including documents or testimony by witnesses. The arbitrator 38. must make any award within 30 days from the final hearing date. The award must be in writing and may provide any 39. remedy the arbitrator considers just and equitable that is within the scope of the parties' agreement. The arbitrator 40. does not have to make findings of fact that explain the reason for granting or denying an award. The arbitrator may 41. require the party who does not prevail to pay the administrative fee. 42. This Arbitration Disclosure provides only a general description of the Arbitration System and a general 43. overview of the Arbitration System rules. For specific information regarding the administrative fee, please see the 44. Fee Schedule located in the NCDS Rules. Copies of the Arbitration System rules are available from NCDS by calling 45. (888) 832 -4792 or on the Web at www.ncdsusa.org orfrom your REALTOR9.It you have any questions about arbitration, 46. call NCDS at (888) 832 -4792 or consult a lawyer. 47. THE RESIDENTIAL REAL PROPERTY ARBITRATION AGREEMENT IS A LEGALLY BINDING CONTRACT 48. BETWEEN BUYERS, SELLERS AND LICENSEES. IF YOU DESIRE LEGAL ADVICE, CONSULT A LAWYER. MN:ADRAA -1 (6/09) /O t8� ARBITRATION DISCLOSURE AND RESIDENTIAL REAL PROPERTY ARBITRATION AGREEMENT 49. Page 2 50. THIS IS AN OPTIONAL, VOLUNTARY AGREEMENT. 51. READ THE ARBITRATION DISCLOSURE ON PAGE ONE IN FULL BEFORE SIGNING. 52. RESIDENTIAL REAL PROPERTY ARBITRATION AGREEMENT 53. For the property located at 1639 Main at 54. City of Elk River ' County of Sherburne State of Minnesota. 55. Any dispute between the undersigned parties, or any of them, about or relating to material facts affecting the use or 56. enjoyment of the property, excluding disputes related to title Issues of the property covered by the Purchase Agreement 57. dated 0e 129 /12 , including claims of fraud, misrepresentation, warranty and 58. negligence, shall be settled by binding arbitration. National Center for Dispute Settlement shall be the arbitration service 59. provider. The rules adopted by National Center for Dispute Settlement and the Minnesota Association of REALTORS® 60. shall govern the proceeding(s). The rules that shall govern the proceeding(s) are those rules in effect at the time the 61. Demand for Arbitration is filed and include the rules specified in the Arbitration Disclosure on page one.This Agreement shall 62. survive the delivery of the deed or contract for deed in the Purchase Agreement. This Agreement is only enforceable if 63. all buyers, sellers and licensees representing or assisting the buyers and sellers have agreed to arbitrate as acknowledged 64. by signatures below. 65. (seller's Signature) (Date) (Buyer's Signature) (Date) 66. ( Sellers Printed Name) (Buyer's Printed Name) 67. (Seller's Signature) (Date) (Buyer's Signature) (Date) 68. (Seller's Printed Name) (Buyer's Printed Name) 69. (Licensee Representing or Assisting Seller) (Date) (Licensee Representing or Assisting Buyer) (Date) 70. (Company Name) (Company Name) 71. THE RESIDENTIAL REAL PROPERTY ARBITRATION AGREEMENT IS A LEGALLY BINDING CONTRACT 72. BETWEEN BUYERS, SELLERS AND LICENSEES. IF YOU DESIRE LEGAL ADVICE, CONSULT A LAWYER. MN:ADRAA -2 (8/09) r - : ,e u BUYER PURCHASING "AS IS" ADDENDUM This form approved by the Minnesota Association of REALTORS'm, which disclaims any liability arising out of use or misuse of this form. ® 2011 Minnesota Association of REALTORS°, Edina, MN 1. Date 08/29/12 2. Page 3. Addendum to Purchase Agreement between parties, dated August 29th 20 12 , pertaining 4. to the purchase and sale of the property at 1.71 6. DISCLOSURE REQUIRED: Under Minnesota law, Sellers of residential property, except by waiver or with limited 7. exceptions, are obligated to disclose to prospective Buyers all material facts of which Seller is aware that could adversely 8. and significantly affect an ordinary Buyer's use or enjoyment of the property or any intended use of the property of 9. which Seller is aware. Such a disclosure is not a warranty or a guarantee of any kind by Seller or licensee representing 10. or assisting any party in the transaction. Seller agrees to notify Buyer Immediately In writing of any substantive changes 11. from any prior representations regarding the property. 12. (Check appropriate box.) 13. ❑ Buyer has received and had an opportunity to review the Seller's Property Disclosure Statement 14. or 15. ❑ Buyer has received and had an opportunity to review the Seller's Disclosure Alternatives form. 16. CONDITION OF PROPERTY: The property being purchased by Buyer, including the dwelling, other improvements 17. and fixtures, is not new and is being purchased "AS IS ". 18. Buyer understands that the property, as defined above, will be purchased in the condition it is in at the time of Purchase 19. Agreement. Buyer shall have the right to a walk- through review of the property prior to closing. To the extent there 20. Is a material change in the condition of the property arising between the date of" the Purchase Agreement and the 21. closing date, Seller shall be responsible for restoring the property to substantially the same condition it was in on the 22. date of the Purchase Agreement, except that Seller shall have NO OBLIGATION OR RESPONSIBILITY to repair or 23. replace central air - conditioning, heating, plumbing (including subsurface sewage treatment systems, unless otherwise 24. required by law), wiring systems or wells on the property if they fail between the date of Purchase Agreement and the 25. date of closing. This provision voids lines 217 -219 of the Purchase Agreement. 26. RISK OF LOSS: The Risk of Loss provision in the Purchase Agreement is modified as follows. If there is any loss 27. or damage to the property between the date of Purchase Agreement and the date of closing for any reason, including fire, 28. vandalism, flood, earthquake or act of God, the risk of loss shall be on Seller except that Seller shall have NO 29. OBLIGATION OR RESPONSIBILITY to repair or replace central air - conditioning, heating, plumbing (including subsurface 30. sewage treatment systems, unless otherwise required by law), wiring systems or wells on the property if they fail between 31. the date of Purchase Agreement and the date of closing. If the property is destroyed or substantially damaged before 32. the closing date, this Purchase Agreement is canceled, at Buyers option, by written notice to Seller or licensee 33. representing or assisting Seller. If Buyer cancels this Purchase Agreement, Buyer and Seller shall immediately sign 34. a Cancellation of Purchase Agreement confirming said cancellation and directing all earnest money paid hereunder 35. to be refunded to Buyer. 36. RIGHT OF INSPECTION: Buyer shall have the right to inspect the property or to have it inspected by a person of 37. Buyer's choice, at Buyer's expense. 38. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S). 39. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MNSPAIA -1 (8/11) BUYER PURCHASING "AS IS" ADDENDUM 40. Page 41. Property located at 1639 Main se 42. SETTLEMENT IS FINAL: It is understood that Buyer accepts the property "AS IS." ANY WARRANTIES OF PHYSICAL 43. CONDITION OF THE PROPERTY CONTAINED IN THIS PURCHASE AGREEMENT INCLUDING, BUT NOT LIMITED 44. TO, CENTRAL AIR - CONDITIONING, HEATING, PLUMBING, WIRING, AND CONNECTION TO CITY SEWER AND 45. CITY WATER ARE VOID. This provision shall survive delivery of the deed or contract for deed. All other warranties 46. specified in the Purchase Agreement remain the same. aA1Kaltf:l= T 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. (Seller) 62. (Seller) 63. 64. MN:BPAIA -2 (8/11) (Date) (Buyer) (Date) (Buyer) THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S). IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. (Date) (Date) 1QvrrMs� Elk River.:., Municipal Utilities 13069 Orono Parkway, P.O. Box 430 Elk River, MN 55330 -0430 Avalar Minnesota Real Estate Ann: Reg Powell 616 Railroad Drive Elk River, MN 55330 Re: 1639 Main Street, Elk River, MN 55330 (Parcel ID #75- 411 -0210) Reg, Phone: 763.441.2020 Fax: 763.441.8099 August 24, 2012 Elk River Municipal Utilities (ERMU) is interested in a property you have listed. This property, 1639 Main Street, is located adjacent to our Field Services building and is indicated on the enclosed reap with a blue polygon. The Utilities is interested in acquiring the property for one hundred thirty four thousand nine hundred dollars ($134,900). Please contact me at your earliest convenience. Best Regards: n Troy Adam, P.E. General Manager Enclosed: Sherburne County Beacon Map for 1639 Main Street NW, Elk River, MN Cc: File P001aE0 BV Page 1 of 1 NATURE P ov en e. To Sexy.