4.5. HRSR 08-05-2019Request for Action
To Item Number
Housing & Redevelopment Authority 4.5
Agenda Section Meeting Date Prepared by
Consent August 5, 2019 Amanda Othoudt, EDD
Item Description Reviewed by
420 Main Street Purchase Cal Portner, City Administrator
Reviewed by
Action Requested
Approve, by motion, a resolution authorizing the execution a purchase agreement for 420 Main Street,
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 420 Main Street 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 $210,500 will be paid from the HRA reserve account
upon closing. In addition, relocation costs of $3,520 will be paid to the seller.
Attachments
Resolution
Purchase Agreement 420 Main Street (to be delivered at the meeting)
HOUSING AND REDEVELOPMENT AUTHORITY
OF THE CITY OF ELK RIVER, MINNESOTA
RESOLUTION NO. 19-04
RESOLUTION APPROVING THE PURCHASE OF CERTAIN PROPERTY LOCATED AT:
420 MAIN STREET NW, ELK RIVER, MN
WHEREAS, the Housing and Redevelopment Authority of the City of Elk River (the
“Authority”) is authorized pursuant to Minnesota Statutes, Section 469.001 to 469.047, to acquire
and convey real property and to undertake certain activities to facilitate the redevelopment of real
property by private enterprise; and
WHEREAS, to facilitate redevelopment of certain property in the City of Elk River,
Minnesota (the “City”), the Authority proposes to enter into a Purchase Agreement (the “Purchase
Agreement”) between the Authority and Barbara and Jerry Olesen, a married couple (the “Seller”),
under which, among other things, the Seller will convey the property located in the City at: 420
Main Street NW, situated in the State of Minnesota, County of Sherburne, and which is legally
described as follows:
Lot 9, Block 1, Auditor’s Subdivision No. 5, Sherburne County, Minnesota.
(the “Property”) to the Authority; and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing
and Redevelopment Authority of the City of Elk River, Minnesota as follows:
1. The Authority hereby approves the Agreement in substantially the form presented to
the Board, including the acquisition of the Property by the Authority, subject to
modifications that do not alter the substance of the transaction and that are approved
by the President and Executive Director, provided that execution of the Agreement
by those officials shall be conclusive evidence of their approval.
2. Authority staff and officials are authorized to take all actions necessary to perform
the Authority’s obligations under the Agreement as a whole, including without
limitation, execution of any documents to which the Authority is a party referenced
in or attached to the Agreement, and other documents necessary to convey the
Property to the Authority, all as described in the Agreement.
526053v1 SJS EL185-48
Approved by the Board of Commissioners of the Housing and Redevelopment Authority of
th
the City of Elk River this 5 day of August, 2019.
President
ATTEST:
Executive Director
526053v1 SJS EL185-48
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