7.4 HRSR 11-06-2017 . i,
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Request for Action
River
To Item Number
Housing&Redevelopment Authority 7.4
Agenda Section Meeting Date Prepared by
General Business November 6,2017 Amanda.Othoudt,EDD
Item Description Reviewed by
326 Gates Avenue Purchase Cal Portner, City Administrator
Reviewed by
Action Requested
Approve,by motion,a resolution authorizing the execution a purchase agreement for 326 Gates Avenue,
Elk River
Background/Discussion
At their November 7,2016,meeting,the HRA expressed interest in purchasing residential properties
along east Main Street connecting to Highway 169 for a potential redevelopment project that would align
with the Mississippi Connections Plan.
The HRA obtained an appraisal for the property located at 326 Gates Avenue and directed staff to
negotiate a purchase agreement with the seller.
A purchase offer agreement was reached with the seller contingent upon approval by the HRA at a public
meeting and inspection of the property.
Financial Impact
Earnest money of$1,000 will be deposited at Sherburne County Abstract and Title and will draw upon
the HRA reserve account.The remaining balance of$109,000 will be paid from the HRA reserve account
upon closing.
Attachments
■ Resolution
• Purchase Agreement 326 Gates
11EREB±11
CITY OF ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION NO . 17-04
A RESOLUTION APPROVING PURCHASE OF CERTAIN PROPERTY AND
THE EXECUTION OF DOCUMENTS IN CONNECTION
THEREWITH
WHEREAS, the HRA was heretofore established by the City of Elk River, Minnesota (the "City")
pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Act"), and is authorized to
undertake certain activities to facilitate the development and redevelopment of real property by
private enterprise,including the purchase and sale of property;and
WHEREAS, to facilitate redevelopment of property in the City, the HRA proposes to acquire certain
property located at 326 Gates in the City (the "Property") from the owner of the Property (the
"Seller").
NOW THEREFORE, BE IT RESOLVED by the Board of the HRA as follows:
1. The HRA finds and determines that the purchase of the Property from the Seller is in the public
interest and will further the objectives of its general plan of economic development, housing
development and redevelopment of the City because it will provide an opportunity for increased
employment opportunities,provide opportunities for redevelopment of the area in accordance with
the City's Mississippi Connections Plan,and serve as an impetus for further development.
2. The HRA hereby authorizes the Executive Director and HRA staff to prepare a purchase
agreement (the "Purchase Agreement") with the Seller setting forth the terms of the acquisition of
the Property in accordance with the terms presented to the Board at its meeting on November 6,
2017.
3. The HRA hereby authorizes the Executive Director and the President to execute and deliver the
Purchase Agreement on behalf of the HRA, together with any related documents necessary in
connection therewith (collectively, the "Development Documents"). The President and Executive
Director are further authorized and directed to execute the Development Documents on behalf of
the HRA and to carry out,on behalf of the HRA,the HRA's obligations thereunder.
4. HRA staff and officials are authorized to take all actions necessary to perform the HRA's
obligations under the Development Documents as a whole, including without limitation execution
of any documents or certifications to which the HRA is a party referenced in or attached to the
Development Documents,and other documents necessary to acquire the Property from the Seller.
5. The approval hereby given to the Development Documents includes approval of such language
and details as may be necessary and appropriate and such modifications thereof, deletions
therefrom and additions thereto as may be necessary and appropriate and approved by legal
counsel to the HRA and by the officers authorized herein to execute said documents prior to
their execution; and said officers are hereby authorized to approve said changes on behalf of the
HRA. The execution of any instrument by the appropriate officers of the HRA herein
authorized shall be conclusive evidence of the approval of such document in accordance with
the terms hereof. In the event of absence or disability of the officers, any of the documents
authorized by this Resolution to be executed may be executed without further act or
authorization of the Board by any duly designated acting official, or by such other officer or
officers of the Board as,in the opinion of the HRA's legal counsel,may act in their behalf.
Approved by the Board of Commissioners of the Housing and Redevelopment Authority in and for
the City of Elk River this 6th day of November,2017.
Larry Toth,Chair
A'TT'EST:
Amanda Othoudt,Executive Director
PURCHASE AGREEMENT
THIS PURCHASE AGREEMENT (the "Agreement") is made as of this 15 Tay of
October 151.2017.by and between Huy Le,a (the"Seller")and the Housing and
Redevelopment Authority of the City of Elk River,a public body corporate and politic under the
laws of the State of Minnesota(the"Buyer").
RECITALS
The Seller is the owner of property located at 326 Gates Ave NW, Elk River, Minnesota,
which is legally described on the attached Exhibit A(the"Property").
AGREEMENT
1. Offer/Acceptance for Sale of Property. The Seller agrees to sell to Buyer the
Property and Buyer agrees to purchase the same,according to the terms of this Agreement.
2. Purchase Price for Property and Terms.
A. PURCHASE PRICE: The total purchase price for the Property is One Hundred
and Ten Thousand.and 00/100ths Dollars($110,000)(the"Purchase Price").
B. TERMS:
(1). EARNEST MONEY. The sum of One Thousand Dollars ($1,000)(the
"Earnest Money") shall be paid by the Buyer to the Seller, receipt of
which is hereby acknowledged by the Seller.
(2): BALANCE DUE SELLER.The Buyer agrees to pay by check or electronic
transfer of funds on the date of closing on the Property (the "Closing
Date") any remaining balance of the Purchase Price due to Seller
according to the terms of this Agreement.
(3): DEED/MARKETABLE TITLE. Subject to performance by the Buyer.
the Seller agrees to execute and deliver a Warranty Deed conveying
marketable title to the Property to the Buyer.subject only to the following
exceptions:
a. Building and zoning laws. ordinances, state and federal
regulations.
h. Reservation of minerals or mineral rights to the State of
Minnesota. if any.
c. Public utility and drainage easements of record which will not
interfere with the Buyer's intended use of the Property.
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(4): DOCUMENTS TO BE DELIVERED AT CLOSING BY THE SELLER. In
addition to the Warranty Deed required at paragraph 28(3) above, the
Seller shall deliver to the Buyer:
a. Standard form Affidavit of Seller.
b. A"bring-down"certificate.certifying that all of the warranties made
by Seller in this Agreement remain true as of the Closing Date.
c. Certificate that the Seller is not a foreign national.
d. If an environmental investigation by or on behalf of the Buyer
discloses the existence of petroleum product or other pollutant.
contaminant or other hazardous substance on the Property.
either(i)a closure letter from the Minnesota Pollution Control
Agency (MPCA) or other appropriate regulatory authority that
remediation has been completed to the satisfaction of the MPCA or
other authority: or(ii) Agreement for remediation/indemnification
and security as the Buyer may require.
e. Well disclosure certification,if required,or,if there is no well on the
Property. the Warranty Deed given pursuant to paragraph 213(3)
above must include the following statement: "The Seller certifies
that the Seller does not know of any wells on the described real
property."
The Seller agrees to have all welts located on the Property, which
are not in use, sealed by a licensed well contractor at the Seller's
expense.
The Seller agrees to escrow funds on the Closing Date for the
purpose of locating and sealing wells if circumstances prohibit
locating and sealing wells prior to closing.
f. Methamphetamine Disclosure Certificate.
g. Any other documents reasonably required by the Buyer's title
insurance company or attorney to evidence that title to the
Property is marketable and that Ithe Seller has complied with the
terms of this Agreement.
3. Contingencies. The Buyer's obligation to buy is contingent upon the following:
a. The Buyer's determination of marketable title pursuant to paragraph 4 of this
Agreement;
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b. The Buyer's determination, in its sole discretion, that the results of any
environmental investigation,or inspection reports of the Property conducted
pursuant to this Agreement are satisfactory to the Buyer:and
c. Approval of this Agreement by the Housing and Redevelopment Authority.
The Buyer shall have until the Closing Date to remove the foregoing contingencies. The
contingencies at a.and b.are solely for the benefit of the Buyer and may be waived by the Buyer.
The contingency at c.may not be waived by either party. If the Buyer or its attorney gives written
notice to the Seller that the contingencies at a.,b.and c.are duly satisfied or waived,the Buyer and
the Seller shall proceed to close the transaction as contemplated herein.
11 one or more of the Buyer's or the Seller's contingencies is not satisfied.or is not satisfied on time,
and is not waived,this Agreement shall thereupon be void at the written option of the Buyer and
the Seller shall return the Earnest Money to the Buyer,and the Buyer and the Seller shall execute
and deliver to each other a termination of this Agreement. As a contingent Agreement, the
termination of this Agreement is not required pursuant to Minnesota Statutes, Section 559.21, et.
seq.
4. Title Examination/Curing Title Defects. As soon as reasonably possible after
execution of this Agreement by both parties.
(a) .1 he Seller shall surrender any abstract of title and a copy of any owner's title
insurance policy for the property. if in the Seller's possession or control.to the Buyer or to the
Buyer's designated title service provider;and
(b) The Buyer shall obtain the title evidence determined necessary or desirable by the
Buyer.
The Buyer shall have 20 days from the date it receives such title evidence and a fully
executed Purchase Agreement to raise any objections to title it may have. Objections not made
within such time will be deemed waived. The Seller shall have 90 days from the date of such
objection to affect a cure;provided,however,that the Seller shall have no obligation to cure any
objections. and may inform the Buyer of such. The Buyer may then elect to close
notwithstanding the uncured objections or declare this Agreement null and void,and the parties
will thereby be released from any further obligation hereunder.
5. Environmental Investigation. The Seller warrants that the Property has not
been used for production. storage. deposit or disposal of any toxic or hazardous ‘A aste or
substance.petroleum product or asbestos product during the period of time the Seller has owned
the Property. The Seller further warrants that the Seller has no knowledge or information of ani
fact which would indicate the Property was used for production. storage. deposit or disposal of
any toxic or hazardous waste or substance. petroleum product or asbestos product prior to the
date the Seller purchased the Property. Notwithstanding the above. the Seller's warranty
regarding petroleum products does not preclude the presence of heating oil or other similar
505'45,2 SSI 1185 1
products,used as a heating fuel for the dwelling but the Seller does warrant that if there was a
fuel tank on the Property used for the storage of heating oil or other similar product. the Seller
has no knowledge of any leak in the tank or contamination caused thereby.
The Seller hereby grants to the Buyer and the Buyer's agents a license to enter and evaluate the
Property for the purpose of conducting an environmental assessment. Further,the Buyer or the
Buyer's agent shall have the right pursuant to the license to bring persons and equipment onto
the Property, make inspections and perform tests and analyses as the Buyer may deem
reasonable to determine the presence of any toxic or hazardous waste, substance, or petroleum
product Or asbestos product,and ascertain soil conditions on the Property. The Buyer shall bear
the cost Of the environmental assessment. If the results of the environmental assessment are not
to the satisfaction of the Buyer,the Buyer at its sole discretion may cancel this Agreement. If the
Buyer cancels this Agreement pursuant to this provision,the Buyer shall restore the Property to
its original condition or nearly so as is reasonably practicable.
6 Real Estate Taxes and Special Assessments. Real estate taxes payable in the
year of closing will be pro-rated between the Buyer and the Seller to the Closing Date. The Seller
shall pay all real estate taxes payable in previous years. the entire unpaid balance of special
assessments, and all installments of special assessments levied and pending. including special
assessments installments payable after the year of closing. [.he Seller also agrees to pay all
assessments related to service charges furnished to the Property prior to the Closing Date (e.g.,
delinquent water or sewer bills, removed or diseased trees), including those charges levied,
pending,or certified to taxes payable in the year of closing. If closing occurs prior to the date the
amount of real estate taxes due in the year of closing are available from Sherburne County, the
current year's taxes will be pro-rated based on the amount due in the prior year.
7. Closing Date. The Closing Date will be on or before November 17, 2017. Delivery
of all papers and the closing shall be made at the offices of Buyer, 13065 Orono Parkway, Elk
River, MN 55330, or at such other location as is mutually agreed upon by the parties. All
deliveries and notices to the Buyer shall be made to the above address and marked to the
attention of Amanda Othoudt.
8. Possession/Utilities/Removal of Property/Escrow.
(a) Possession. The Seller agrees to deliver possession not later than the Closing
Date.
(b) Utilities. City water and sewer charges, electricity and natural gas charges, fuel
oil and liquid petroleum gas shall be pro-rated between the parties as of the Closing Date. The
Seller shall arrange for final readings as of the Closing Date.
(c) Personal Property and Debris. The Seller must remove all debris and personal
property not included in this sale, including, all Window treatments. and furniture from the
Property prior to closing. The Seller agrees to leave all appliances including the refridgerator.
stove, oven, microwave, and dishwasher in tack and in working order. The Buyer may inspect
the Property immediately prior to closinyg in order to ensure that removal of all debris and
5O5i45,2SJSLIDO-i}
personal property has been completed.
(d) Escrow. In the event that removal of debris and personal property has not been
completed by the Seller at closing. the Buyer may require that funds be retained from the
purchaseprice for the Property as an escrow for payment of the estimated cost of debris and
personal property removal and disposal charges. The Buyer may also require that funds be
retained from the purchase price for payment of utility charges. The retained amount(s), less
deductions provided for this in paragraph 8,will be delivered to the Seller no later than 60 days
following the Closing Date or delivery of possession, whichever is later. Said funds shall be
held by Kennedy & Graven. Chartered, as Escrow Agent, pursuant to the terms of the Escrow
Agreement attached here as Exhibit B. The provisions of this paragraph shall not merge with the
deed and shall survive closing on the Property.
(f) Amounts Due. The Buyer's ability to deduct amounts due under this paragraph
from the retained escrow is not exclusive but is in addition to the Buyer's rights at law and equity
to collect such amounts from the Seller. The Seller is responsible for the amounts due under this
paragraph even if:(i)the Buyer neglects to deduct the amount from escrow;or(ii)the escrowed
amount is insufficient to pay all amounts due under this paragraph 8.
9. Seller Warranties. The Seller hereby represents and warrants to the Buyer as
of the Closing Date that:
(a) Title. The Seller has flood. indefeasible and marketable tee simple title to the
Property.
(b) Condemnation.There is no pending or. to the actual knowledge of the Seller,
threatened condemnation or similar proceeding affecting the Property or any portion thereof.
and the Seller has no actual knowledge that any such action is contemplated.
(L) Defects. The Seller is not aware of any latent or patent defects in the Property.
such as sinkholes,weak soils,unrecorded easements and restrictions.
(d) Legal Compliance. The Seller has complied with all applicable laws,
ordinances. regulations, statutes. rules and restrictions pertaining to and affecting the
Property and the Seller shall continue to comply with such laws, ordinances, regulations,
statutes,rules and restrictions.
(e) Legal Capacity. The Seller has the legal capacity to enter into this
Agreement. The Seller has not tiled.voluntarily or involuntarily,for bankruptcy relief within the
last year under the United States Bankruptcy Code, nor has any petition for bankruptcy or
receivership been filed against the Seller within the last}ear.
(f) Sewer and Water. The Seller arrants that the Property is connected to City
sewer and Citye water.
(g) Mechanics' Liens. The Seller warrants that.prior to the closing.the Seller shall pay
5
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in full all amounts due for Iabor, materials, machinery, fixtures or tools furnished within the 1,0
days immediately preceding the closing in connection with construction,alteration or repair of any
structureupon or improvement to the Property.
(h) Legal Proceedings. There are no legal actions, suits or other legal or
administrative proceedings, pending or threatened, that affect the Property or any portion
thereof;and the Seller has no knowledge that any such action is presently contemplated.
(i) Leases. The Seller represents that there are no third parties in possession of the
Property,or any part thereof;and that there are no leases.oral or written affecting the Property or
any part thereof:
(j) Broker Commission. The Buyer represents to the Seller that it has not utilized
the services of any real estate broker or agent in connection with this Agreement or the
transaction contemplated by this Agreement. The Seller represents to the Buyer that the Seller
has not utilized the services of any real estate broker or agent in connection with this Agreement or
the transaction contemplated by this Agreement. Each party agrees to indemnify,defend. and
hold harmless the other party against and in respect of any such obligation and liability based in
any way upon agreements.arrangements,or understandings made or claimed to have been made by
the party with any third person.
(k) Structures. The Seller warrants that the buildings, if any,are entirely within the
boundary lines of the Property. The parties acknowledge that the Property is being sold in "as
is"condition relating to the structural,operational.and mechanical systems.
(I) Foreign Status. The Seller is not"foreign person"as such term is defined in the
Internal Revenue Code.
(m) Methamphetamine Production. To the best of the Seller's knowledge.
methamphetamine production has not occurred on the Property.
(n) Refuse and Hazardous Materials. The Seller has not performed ano has no
actual knowledge of any excavation,dumping or burial of any refuse materials or debris of any
nature whatsoever on the Property. To the Seller's best actual knowledge and belief,there are no
"Hazardous Materials"(as hereinafter defined)on the Property that would subject the Buyer to
any liability under either federal or state laws. including. but not limited to.the disposal of any
foreign objects or materials upon or in the Property, lawful or otherwise. Without limiting the
generality of the foregoing. the Seller represents and warrants to the Buyer that, to the Seller's
best actual knowledge and belief:
I.
The Property is not now and has never been used to generate,manufacture,refine,
transport.treat,store, handle.dispose.transfer.produce.process or in any manner
deal with Hazardous Materials:
2. No Hazardous Materials have ever been installed. placed. or in any manner
handled or dealt with on the Property
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3. There are no underground or aboveground storage tanks on the Property:
4. Neither the Seller nor any prior owner of the Property or any tenant, subtenant.
occupant, prior tenant. prior subtenant, prior occupant or person (collectively,
"Occupant")has received any notice or advice from any governmental agency or
any other Occupant with regard to Hazardous Materials on, from or affecting the
Property.
The term "Hazardous Materials" as used herein includes, without limitation, gasoline.
petroleum products, explosives, radioactive materials, hazardous materials. hazardous wastes,
hazardous or toxic substances,polychlorinated biphenyls or related or similar materials,asbestos
or any material containing asbestos, or any other substance or material as may be defined as a
hazardous or toxic substance by any federal,state or local environmental law,ordinance,rule,or
regulation including, without limitation, the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended (42 U.S.G. Section 9601, et seq.), the
Hazardous Materials Transportation Act, as amended (42 U.S.C. Section 1801, et seq.), the
Resource Conservation and Recovery Act, as amended (42 U.S. C. Section 1251, et seq.), the
Clean Air Act,as amended(42 U.S.C. Section 7401,et seq.)and in the regulations adopted and
publications promulgated pursuant thereto.
The Seller's representations and warranties set forth in this Section shall be continuing and are
deemed to be material to the Buyer's execution of this Purchase Agreement and the Buyer's
performance of its obligations hereunder. All such representations and warranties shall be true
and correct on and as of the Closing Date with the same force and effect as if made at that time:
and all of such representations and warranties shall survive the closing and any cancellation or
termination of this Purchase Agreement, and shall not be affected by any investigation.
verification or approval by any party hereto or by anyone on behalf of any party hereto. The
Seiler agrees to defend, indemnify and hold the Buyer harmless for, from,and against any loss,
costs, damages, expenses, obligations and attorneys' fees incurred should an assertion, claim,
demand, action or cause of action be instituted, made or taken, v,hien is contrary to or
inconsistent with the representations or warranties contained herein.
10. Closing Costs/Recording Fees/Deed Tax. The Buyer will pay: (a) title
insurance premium costs:(b)the recording fee for the deed transferring title to the Buyer:and(d)
any survey or environmental investigation costs incurred by it. The Seller will also pay all other
fees normally paid by sellers, including (a) any transfer taxes, recording fees and well
Disclosure fees required to enable the Buyer to record its deed from the Seller under this
Agreement: (h) tees and charges related to the filing of any instrument required to make title
marketable: and (c) title evidence and updating costs. The Seller and Buyer will pay its own
portion of any closing fees charged by the title insurance or other closing agent.if any.utilized to
close the transaction contemplated by this Agreement. Each parte shall pay its own attorney
1 1. Inspections. From the date of this Agreement to the Closing Date.the Buyer. its
employees and agents, shall be entitled to enter upon the Property to conduct such surveying.
inspections, investigations. soil borings and testing, and drilling, monitoring, sampling and
SJS UI I i5-1
testing of groundwater monitoring wells,as the Buyer shall elect;provided.that the Seller is given
at least 24 hours'notice.
12. Relocation Benefits; Indemnification. The Seller acknowledges that the Seller
is being displaced from the Property as a result of the transaction contemplated by this Purchase
Agreement and that the Seller is eligible for relocation assistance and benefits and that the
Purchase Price includes compensation for any and all relocation assistance and benefits for
which the Seller may be eligible and the Seller agrees to waive any and all further relocation
assistance benefits. The provisions of this paragraph shall survive closing of the transaction
contemplated by this Purchase Agreement.
13. Risk of Loss. If there is any loss or damage to the Property between the date
hereof and the Closing Date,for any reason including fire,vandalism,flood,earthquake or act of
God,the:risk of loss shall be on the Seller. lithe Property is destroyed or substantially damaged
before the Closing Date,this Agreement may become null and void,at the Buyer's option. At the
request of the Buyer,the Seller agrees to sign a cancellation of Agreement.
14. Default/Remedies. If the Buyer defaults in any of the covenants herein, the
Seller may terminate this Agreement,and on such termination all payments made hereunder shall
be retained by the Seller as liquidated damages,time being of the essence. This provision shall
not deprive either party of the right to enforce specific performance of this Agreement.provided
this Agreement has not terminated and action to enforce specific performance is commenced
within six months after such right of action arises. In the event the Buyer defaults in its
performance of the terms of this Agreement and Notice of Cancellation is served upon Buyer
pursuant to Minn. Stat. Section 559.21, the termination period shall be thirty (30) days as
permitted by Minn.Stat.,Section 559.21,Subd.4.
15. Notice. Any notice,demand, request or other communication which may or shall
be given or served by the parties,shall be deemed to have been given or served on the date the same
is personally served upon one of the following indicated recipients for notices or is deposited in
the United States Mail. registered or certified. return receipt requested. postage prepaid and
addressed as follows:
SELLER: Huy Le
BUYER: Housing and Redevelopment Authority of the City of Elk River
Attn: Amanda Othoudt
13065 Orono Parkway
Elk River. MN 55330
AGENT: Kennedy&Graven,Chartered
ATTN:Jenny Boulton
470 U.S.Bank Plaza
200 South Sixth Street
Minneapolis,MN 55402
16. Entire Agreement. This Agreement, Exhibits, and other amendments signed by
the parties.shall constitute the entire Agreement between the Seller and the Buyer and supersedes
any other written or oral agreements between the parties relating to the Property. This
Agreement can be modified only in a writing properly signed on behalf of the Seller and the
Buyer:except that the Closing Date may be extended up to six months by written agreement of the
Seller and the Buyer without further approval by the Housing and Redevelopment Authority. The
Buyer's staff is hereby authorized to execute agreements to extend the Closing Date up to six months
from the Closing Date at paragraph 7 above.
17. Survival. Notwithstanding any other provisions of law or court decision to the
contrary.the provisions of this Agreement shall survive closing.
18. Binding Effect. This Purchase Agreement binds and benefits the parties and their
heirs,successors and assigns.
5,1iii35%2 S'S I 185-13
IN WITNESS WHEREOF. the undersigned have executed this Agreement on the date and year
ahm e
Buyer: Seller:
Housing and Redevelopment Authority
13):
Its HRA Chair Huy i.e
And by:
Its Executive Director
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EXHIBIT A
Legal Description of the Property
Lot 1.Block 1 of Auditors Subdivision No.5,according to the recorded plat thereof,Sherbune
County,Minnesota.
A-i
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EXHIBIT B
Escrow Agreement
Oci-D5L-IL
THIS AGREEMENT entered into this 15 day of My, 2017, by and between Quinn
Avenue,LLC,a limited liability company in the State of Minnesota(the"Seller"),the The Housing
and Redevelopment Authority of the City of Elk River,a public body corporate and politic under
the laws of the State of Minnesota (the"Buyer"), and KENNEDY & GRAVEN, CHARTERED
("Escrow Agent"or"Agent").
RECITALS
oLTAC:-"a..
A. The Seller and the Buyer have entered into a Purchase Agreement dated.1)5Iy 15 ,
2017(the"Purchase Agreement") for the sale of property located at 326 Gates
Avenue NW. Elk River, Minnesota and legally described on the attached Exhibit
One(the"Property").
B. The parties desire to close the sale of the Property on or before
AGREEMENT
The parties agree as follows:
1. Delivery of Possession. The Seller shall deliver possession of the Property to the
Buyer in accordance with the Purchase Agreement entered into by the parties.
The Purchase Agreement requires the Seller to remove all personal property and
debris from the Property upon closing.
2. Escrow. (a) Upon closing and execution of this Agreement. the Seller agrees to
deposit into escrow the sum of Q _ (the"Escrowed Funds")from the purchase
price,to be held by Agent in a non-interest bearing account.
(b) Within seven days after requested by Agent. the Buyer shall provide to
Agent(with copy to the Seller)evidence of expenses incurred for the removal
and disposal of an) personal property and debris. Agent shall reimburse the
Buyer for the incurred expenses from the Escrowed Funds within 7 days following
receipt of such evidence from the Buyer.
(c) Agent shall deliver to the Seller the balance of the Escrowed Funds on
deposit. less deductions provided for in paragraph 2(h)above, no later than 30
days following vacation of the Property by the Seller.
(d)The sole duties of Agent shall he those described herein, and Agent shall be
under no obligation to determine whether the other parties hereto are
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complying with any requirements of law or the terms and conditions of any other
agreements among said parties. Agent shall have no duty or liability to verify any
amounts deducted from the retained amount and Agent's sole responsibility shall be
to act expressly as set forth in this Escrow Agreement.
3. Escrow Agent Liability.The sole duties of Escrov‘ Agent shall be those described
herein, and Escrow Agent shall be under no obligation to determine whether the
other parties hereto are complying with any requirements of law or the terms and
conditions of any other agreements among said parties. Escrow Agent may
conclusively rely upon and shall be protected in acting on any notice believed by it to
be genuine and to have been signed or presented by the proper party or parties,
consistent with reasonable due diligence on Escrow Agent's part. Escrow Agent
shall have no duty or liability to verify any such notice.and its sole responsibility
shall be to act expressly as set forth in this Escrow Agreement.
The Seller and the Buyer understand that Agent is legal counsel to the Buyer and
each consents to Agent's serving as Escrow Agent notwithstanding such
representation. In the event Agent determines, in its sole discretion, that it cannot
continue to serve as Escrow Agent herein,Agent shall deposit the funds with Old
Republic National Title Insurance Company or such other Escrow Agent
acceptable to the Seller and the Buyer. The Seller consents to Agent's continued
representation of the Buyer after a deposit is made, and the Buyer agrees to pay all
escrow fees charged by the substitute Escrow Agent.
4. Notices to be sent to the parties to this Agreement shall be sent by mail or
personal delivery to:
SELLER: Hu) Le
Bt:YER: Housing and Redevelopment Authority of the City of Elk River
Attn: Amanda Othoudt
13065 Orono Parkway
Elk River. MN 55330
AGENT: Kenned> &Graven,Chartered
ATIN:Jenny Boulton
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis,MN 55402
B-2
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EN WITNESS WHEREOF,the parties have executed this agreement as of the date
written above.
SELLER: BUYER:
HOUSING AND REDEVELOPMENT
AUTHORITY OF THE CITY OF ELK RIVER
V- .11
By:
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Its Chair
And by:
Its Execuitive Director
ESCROW AGENT:
KENNEDY&GRAVEN.CHARTERED
By:
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S1S Ii1
Exhibit One
Legal Description of the Property
Lot 1.Block 1 of Auditors Subdivision No.5,according to the recorded plat thereof Sherbune
County.Minnesota.
13-4
,0504),2 SJ El
Certificate of Survey for: Huy Le
326 Gates Avenue NW
Elk River, MN 55330
Mattke Surveying & Engineering, Inc.
599 Hawthorn Road
Lino Lakes, MN 55014
(763) 783-0300
lib
Scale: 111=401
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3rd Street
East
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(13' 52.501
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Fence Corner is Property Corner
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I hereby certify that this survey was prepared
by me or under my direct supervision, and
that I am a duly Licensed Land Surveyor 1
Basis of Bearings Is Assumedunder the laws of the State of Minnesota.
.
o Denotes Iron Monument Set (RLS 15612)
i,Li )17_ -
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40 Denotes Iron Monument Found
-o-- Old Woad Fence
Tedd W. Mattke, LS
Oats: Stfy,./MInn. License No. 15612
Lot. 1, Block 1, AUDITOR'S SUBDIVISION NO 5
i
Shnrburne County, Minnesota 14046 i
1
_ .
......._ __ . _____.. _____....................
DISCLOSURE STATEMENT:
METHAMPHETAMINE PRODUCTION
This form approved by the Minnesota Association of REALTORS'',
which disclaims any liability arising out of use or misuse of this form.
C 2014 Minnesota Association of REALTORS.Edina,MN
1. Date _10/15/201}
2. Page 1 of pages:THE MAP AND
3. CONTRACTOR'S VERIFICATION, IF ANY, ARE
4. ATTACHED HERETO AND MADE A PART HEREOF
5. Property Iodated at 'L 6- }i J U
6. in the City of k L. .LI& ,County of S i-(Ele) b
7. State of Minnesota,legally described as follows or on attached sheet(the"Property")
r
8. __ -oT t z ! of Au b i i' `� D tl i i r� pit% c AcLo Rw,J tsr I. 71- 46-
9.
4E-
9. R+ ez-D PI r OF . E 2 bu, f l y t11
10. This disclosure is not a warranty of any Kind by Seller(s)or any licensee(s)representing or assisting any party(ies)in
11. this transaction and is not a substitute for any inspections or warranties the party(ies)may wish to obtain.
12. BUYERS)AND SELLER(S)MAY WISH TO OBTAIN PROFESSIONAL ADVICE AND/OR INSPECTIONS
13. OF THE PROPERTY AND TO PROVIDE FOR APPROPRIATE PROVISIONS IN A CONTRACT BETWEEN
14. BUYER(S)AND SELLER(S)WITH RESPECT TO ANY ADVICE/INSPECTION/DEFECTS.
15. SELLER'S INFORMATION:The following Seller disclosure satisfies MN Statute 152.0275,Subd.2(m).Seller discloses
16. the following information with the knowledge that even though this is not a warranty,prospective Buyers may rely on this
17, information in deciding whether and on what terms to purchase the Property. Seller authorizes any licensee(s)
18. representing or assisting any party(ies)in this transaction to provide a copy of this Statement to any person or entity
19. in connection with any actual or anticipated sale of the Property.
20. Unless Buyer and Seller agree to the contrary in writing before the closing of the sale,a Seller who fails to disclose
21. the information required under MN Statute 152.0275,Subd.2(m),at the time of sale,and who knew or had reason to
22. know of methamphetamine production on the Property,is liable to Buyer or transferee for costs relating to remediation
23. of the Property according to the Department of Health's Clandestine Drug Labs General Cleanup Guidelines(Guidelines)
24. and for reasonable attorneys'fees for collection of costs from Seller.An action under this section must be commenced
25. within six years after the date on which Buyer closed the purchase or transfer of the Property where the methamphetamine
26. production occurred.
27. The following are representations made by Seller to the extent of Sellers actual knowledge.This information is a
28. disclosure and is not intended to be part of any contract between Buyer and Seller.
29. METHAMPHETAMINE PRODUCTION DISCLOSURE:
30. (Check the appropriate boxes.)
31. Seller is aware that methamphetamine production has occurred on the Property.
32. A. If Seller is aware that methamphetamine production has occurred on the Property,Seller[Ij IS NJ IS NOT aware
--(Check
33. if there are currently,or have previously been,any orders issued on the Property by any governmental authority
34. ordering the remediation of a public health nuisance or by-products or degradates from the manufacture of
35. methamphetamine on the Property.
36. B. if answer under(A)is IS,Seller certifies that all orders j HAVE U HAVE NOT been vacated.
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DISCLOSURE STATEMENT:
METHAMPHETAMINE PRODUCTION
37. Pace 2
38. Property located at 3 2, A i ES /WE
39. C. rf Seller is aware that methamphetamine production has occurred on the Property and no order was issued
40. against the Property, the Seller makes the following representation regarding the status of removal and
41. remediation of contaminants on the Property.
42. (Check one.)
43. ..] The Property has been remediated according to the Department of Health Guidelines.Attached is a copy
44. of the contractor's verification that the work was completed according to the Department of Health Guidelines:
45. ci
46. [] Other(explain):
47.
48. SELLER'S STATEMENT:(To be signed at time of listing.)
49. Seller(s) hereby states that the facts as stated above are true and accurate and authorizes any licensee(s)
50. representing or assisting any party(ies)in this transaction to provide a copy of this Disclosure Statement to any person
51. or entity in connection with any actual or anticipated sale of the property.A seller may provide this Disclosure Statement
52. to a real estate licensee representing or assisting a prospective buyer.The Disclosure Statement provided to the real
53. estate licensee representing or assisting a prospective buyer is considered to have been provided to the prospective
54. buyer. If this Disclosure Statement is provided to the real estate licensee representing or assisting the prospective
55. buyer,the real estate licensee must provide a copy to the prospective buyer.
56. Seller is obligated to continue to notify Buyer in writing of any facts that differ from the facts disclosed herein
57. (new or changed)of which Seller is aware that could adversely and significantly affect the Buyer's use or
58. enjoyment of the property or any intended use of the property that occur up to the time of closing.To disclose
59. new or changed facts,please use the Amendment to Disclosure Statement form.
60. if0/151ZdII"
Seiler) (Date) %Setter, (Date,
61. BUYER'S ACKNOWLEDGEMENT:(To be signed at time of purchase agreement.)
62. INVe,the Buyer(s)of the property,acknowledge receipt of this Disclosure Statement:Methamphetamine Production
63. and Location Map and agree that no representations regarding facts have been made other than those made above.
64.
(!)Pte` E'i,,er tDat,t1
65. LISTING BROKER AND LICENSEES MAKE NO REPRESENTATIONS HEREIN AND ARE
66. NOT RESPONSIBLE FOR ANY CONDITIONS EXISTING ON THE PROPERTY.
MN:DS'MP-2.(S 14)
DISCLOSURE STATEMENT:WELL
This form approved by the Minnesota Association of REALTORS'
which disclaims any liability arising out of use or misuse of this form.
P2017 Minnesota Association of REALTORS'.Edina,MN
1. Date 1ot/5 J 2(4/
-
2. Page 1 of pages: THE REQUIRED MAP
3. IS ATTACHED HERE AND MADE A PART OF THIS
4. DISCLOSURE
5. Minnesota Statute 1031.235 requires that,before signing an agreement to sell or transfer real property,Seller must
6. disclose information in writing to Buyer about the status and location of all known wells on the property.This requirement
7. is satisfied by delivering to Buyer either a statement by Seller that Seller does not know of any wells on the property,
8. or a disclosure statement indicating the legal description and county,and a map showing the location of each well.In
9. the disclosure statement Seller must indicate,for each well,whether the well is in use,not in use or sealed.
10. Unless Buyer and Seller agree to the contrary in writing,before the closing of the sale,a Seller who fails to disclose
11. the existence or known status of a well at the time of sale,and knew or had reason to know of the existence or known
12. status of the well,is liable to Buyer for costs relating to sealing of the well and reasonable attorneys'fees for collection
13. of costs from Seller,if the action is commenced within six years after the date Buyer closed the purchase of the real
14. property where the well is located.
15. Legal requirements exist relating to various aspects of location and status of wells. Buyer is advised to
16. contact the local unit(s) of government, state agency, or qualified professional which regulates wells for further
17. information about these issues.For additional information on wells,please visit the Minnesota Department of Health's
18. website at www.health.state.mn.us.
19. Instructions for completion of this form are on page three(3).
20. PROPERTY DESCRIPTION:Street Address:___ 3 l-ld CrI i E A v E (1`-) _
21. ELK oelz MIN 553. 0 cueg Li��-
(L'tY) (Zip) (Count?,;
22, LEGAL DESCRIPTION: Lor 1 ' ju jiT0!i; S uAQ{V f to ., P tIli g ACc:.'O/ik(.
23. I o .. OE SLA 7 b" IA 2t= t= $H.E ke.u 0 r" (2 iii 3
24.
25. WELL DISCLOSURE STATEMENT:(Check appropriate boxes.)
26. Seller certifies that the following wells are located on the above-described real property.
27. MN Unique Well Year of Well IN USE NOT IN SHARED SEALED
28. Well No. Depth Const. Type USE
29. Well 1
30. Well 2 ;
31. V.te11 3
32. Is this property served by a well not located on the property? fl YOs El No
33. If"Yes."please explain:
34.
35. NOTE: See definition of terms"IN USE,""NOT IN USE,"and"SEALED"on lines 102-113.If a well is not in use,it
36. must be sealed by a licensed well contractor or a well owner must obtain a maintenance permit from
37. the Minnesota Department of Health and pay an annual maintenance fee.Maintenance permits are not
38. transferable.if a well is operable and properly maintained,a maintenance permit is not required.
39. If the well is,"Shared"•
40. (1) How many properties or residences does the shared well serve?
41. (2) Who manages the shared well?--
42. (3) Is there a maintenance agreement for the shared well? Yes r�
well? ("Yes �_6 No
43. If"Yes,'what is the annual maintenance fee`?
MN-DS:W-t d'' 7,
instc:
DISCLOSURE STATEMENT:WELL
44. Page 2
45. Property located at 3 trirt N LA2',
46, OTHER WELL INFORMATION:
47. Date well water last tested for contaminants: Test results attached? Li Yes ri No
48. Contaminated Well:Is there a well on the property containing contaminated water? Li Yes 1-1 No
49. Comments: .T Re. SELISA IstrtiFJES. -Ti4AT 1146 sELLEa DOes 1601- k.tiotAl F
50. 143 y rl'41, OC4Pa 12 L, P o
51.
52.
53,
54,
55,
56. SEALED WELL INFORMATION:For each well designated as sealed above,complete this section.
57. When was the well sealed?
58. Who sealed the well?
59. Was a Sealed Well Report filed with the Minnesota Department of Health? Yes Ej No
60. MAP:Complete the attached Location Map showing the location of each well on the real property.
61. This disclosure is not a warranty of any kind by Seller(s)or any licensee(s)representing or assisting any part(hes)in
62. this transaction and is not a substitute for any inspections or warranties the party(ies)may wish to obtain.
63. SELLER'S STATEMENT: (To be signed at time of listing.)
64. Seller(s)hereby states that the facts as stated above are true and accurate and authorizes any licensee(s)representing
65. or assisting any party(ies)in this transaction to provide a copy of this Disclosure Statement to any person or entity
66. in connection with any actual or anticipated sale of the property.A seller may provide this Disclosure Statement to
67. a real estate licensee representing or assisting a prospective buyer.The Disclosure Statement provided to the real
68. estate licensee representing or assisting a prospective buyer is considered to have been provided to the prospective
69. buyer.If thiS Disclosure Statement is provided to the real estate licensee representing or assisting the prospective
70, buyer,the real estate licensee must provide a copy to the prospective buyer.
71. Seller is obligated to continue to notify Buyer in writing of any facts that differ from the facts disclosed here
72. (new or changed)of which Seller is aware that could adversely and significantly affect the Buyer's use or
73. enjoyment of the property or any intended use of the property that occur up to the time of closing.To disclose
74, new or changed facts,please use the Amendment to Disclosure Statement form.
75. '
-4Z' 44 t //)/./.4
(Sea (Date) ,se.,er)
76. BUYER'S ACKNOWLEDGEMENT:(To be signed at time of purchase agreement.)
77. Attie,the Buyer(s) of the property, acknowledge receipt of this Disclosure Statement:Well and Location Map and
78. agree that no representations regarding facts have been made other than those made above.
70. -- -
iDater
80. LISTING BROKER AND LICENSEES MAKE NO REPRESENTATIONS HERE AND ARE
81. NOT RESPONSIBLE FOR ANY CONDITIONS EXISTING ON THE PROPERTY.
MN-DSV-2 '7)
DISCLOSURE STATEMENT:WELL
81, Page 3
82. INSTRUCTIONS FOR COMPLETING THE WELL DISCLOSURE STATEMENT
83. DEFINITION:A"well"means an excavation that is drilled, cored, bored, washed, driven, au or otherwise
84. constructed if the excavation is intended for the location,diversion,artificial recharge,or acquisition oa oundw
groundwater.
r.
85. MINNESOTA UNIQUE WELL NUMBER: All new wells constructed AFTER January 1. 1975, should have been
86. assigned a Minnesota unique well number by the person constructing the well.If the well was constructed after this
87. date,you should have the unique well number in your property records.If you are unable to locate your unique well
88. number and the well was constructed AFTER January 1,1975,contact your well contractor.If no unique well number
89. is available,please indicate the depth and year of construction for each well.
90. WELL TYPE:Use one of the following terms to describe the well type.
91. WATER WELL:A water well is any type of well used to extract groundwater for private or public use.Exam les
92. of water wells are:domestic wells,drive-point wells,dug wells.remedial wells,and municipal wells. p
93. IRRIGATION WELL: An irrigation well is a well used to irrigate agricultural lands.These are # icali
94. large-diameter wells connected to a large pressure distribution system. yp y
95. MONITORING WELL:A monitoring well is a well used to monitor groundwater contamination.The well i
96. typically used to access groundwater for the extraction of samples. s
97. DEWATERING WELL:A dewatering well is a well used to lower groundwater levels to allow for constructs n
98. or use of underground spaces. °
99. INDUSTRIALICOMMERCIAL WELL: An industrial/commercial well is a nonpotable well used to extract
100. groundwater for any nonpotable use,including groundwater thermal exchange wells(heat pumps and heat
101. loops).
102. WELL USE STATUS:Indicate the use status of each well.CHECK ONLY ONE(1)BOX PER WELL.
103. IN USE:A well is"in use"if the well is operated on a daily,regular,or seasonal basis.A well in use includes
104. a well that operates for the purpose of irrigation,fire protection,or emergency pumping.
105. ' NOT IN USE:A well is"not in use"if the well does not meet the definition of"in use"above and has not been
106. sealed by a licensed well contractor.
107. SEALED:A well is"sealed"if a licensed contractor has completely filled a well by pumping grout material
103. throughout the entire bore hole after removal of any obstructions from the well.A well is"capped"if it has
109. a metal or plastic cap or cover which is threaded,bolted or welded into the top of the well to prevent entry
110. into the well.A`'capped"well is not a"seated"well.
111. if the well has been sealed by someone other than a licensed well contractor or a licensed well sealing
112. contractor,check the well status as"not in use."
113. if you have any questions,please contact the Minnesota Department of Health,Well Management Section,
114, at(651)201-4587(metropolitan Minneapolis-St.Paul)or 1-800-383-9808(greater Minnesota).
Mtn-DS:VV-3(8/171
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