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7.4. HRSR 04-06-2020Added to H RA Agenda Request for Action Elk River' To Item Number Housing and Redevelopment Authority 7.4 Agenda Section Meeting Date Prepared by General Business Aril 6, 2020 Amanda Othoudt, ED Director Item Description Reviewed by 419 3rd Street Purchase Cal Portner, City Administrator Reviewed by Action Requested Approve, by motion, a resolution authorizing the execution a purchase agreement for 419 3rd 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 419 - 3rd 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 $199,000 will be paid from the HRA reserve account upon closing. Attachments ■ Resolution ■ Purchase Agreement for 419 3rd Street The Elk River Vision A welcoming community nrith revolutionary and spirited resourcefulness, exceptional p p x E R E o R r service, and community engagement that encourages and inspires prosperity/� UR PURCHASE AGREEMENT THIS PURCHASE AGREEMENT (this "Agreement") is made as of this CP day of April, 2020 by and between Jaime and David Swenson, married to each other (the "Sellers") 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 Sellers are the owners of property located at 419 3rd Street NW, Elk River, Minnesota, which is legally described on the attached Exhibit A (the "Property"). AGREEMENT 1. Offer/Acceptance for Sale of Property. The Sellers agree 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 Two Hundred Thousand and 00/100ths Dollars ($200,000.00) (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 Sellers, receipt of which is hereby acknowledged by the Sellers. (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 the Sellers according to the terms of this Agreement. (3): DEED/MARKETABLE TITLE. Subject to performance by the Buyer, the Sellers agree 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. b. 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. (4): DOCUMENTS TO BE DELIVERED AT CLOSING BY THE SELLERS. In addition to the Warranty Deed required at paragraph 2B(3) above, the Sellers shall deliver to the Buyer: a. Standard form Affidavit of Seller. b. A "bring -down" certificate, certifying that all of the warranties made by Sellers in this Agreement remain true as of the Closing Date. C. Certificate that the Sellers are not foreign nationals. 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 2B(3) above must include the following statement: "The Sellers certify that the Sellers do not know of any wells on the described real property." The Sellers agree to have all wells located on the Property, which are not in use, sealed by a licensed well contractor at the Sellers' expense. The Sellers agree 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. Waiver of Relocation Benefits in the form attached hereto as Exhibit C. h. 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 the Sellers have complied with the terms of this Agreement. 3. Contingencies. The Buyer's obligation to buy is contingent upon the following: FA a. The Buyer's determination of marketable title pursuant to paragraph 4 of this Agreement; 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 parry. If the Buyer or its attorney gives written notice to the Sellers that the contingencies at a., b. and c. are duly satisfied or waived, the Buyer and the Sellers shall proceed to close the transaction as contemplated herein. If one or more of the Buyer'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 Sellers shall return the Earnest Money to the Buyer, and the Buyer and the Sellers 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 559.2 1, et. seq. 4. Title Examination/Curing Title Defects. As soon as reasonably possible after execution of this Agreement by both parties, (a) The Sellers shall surrender any abstract of title and a copy of any owner's title insurance policy for the property, if in the Sellers' 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 10 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 Sellers shall have 30 days from the date of such objection to affect a cure; provided, however, that the Sellers 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 Sellers warrant that the Property has not been used for production, storage, deposit or disposal of any toxic or hazardous waste or substance, petroleum product or asbestos product during the period of time the Seller has owned the Property. The Sellers further warrant that the Sellers have no knowledge or information of any 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 Sellers 3 purchased the Property. The Sellers warrant that there are no underground fuel storage tanks on the Property. The Sellers hereby grant 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 Sellers to the Closing Date. The Sellers 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. The Sellers also agree 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 June 1, 2020. Delivery of all papers and the closing shall be made at the offices of the 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 Sellers agree to deliver possession not later than the Closing Date. (b) Utilities. City water and sewer charges, electricity and natural gas charges shall be pro -rated between the parties as of the Closing Date. The Sellers shall arrange for final readings as of the Closing Date. (c) Personal Property and Debris. The Sellers 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 Sellers may remove all appliances. The Buyer may inspect the Property immediately prior to closing in order to ensure that removal of all debris and personal property has been completed. (d) Escrow. In the event that removal of debris and personal property has not been 4 completed by the Sellers at closing, the Buyer may require that funds be retained from the purchase price 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 Sellers 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. (e) 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 Sellers. The Sellers are 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. Sellers' Warranties. The Sellers hereby represent and warrant to the Buyer as of the Closing Date that: (a) Title. The Sellers have good, indefeasible and marketable fee simple title to the Property. (b) Condemnation. There is no pending or, to the actual knowledge of the Sellers, threatened condemnation or similar proceeding affecting the Property or any portion thereof, and the Sellers have no actual knowledge that any such action is contemplated. (c) Defects. The Sellers are not aware of any latent or patent defects in the Property, such as sinkholes, weak soils, or unrecorded easements and restrictions. (d) Legal Compliance. The Sellers have complied with all applicable laws, ordinances, regulations, statutes, rules, and restrictions pertaining to and affecting the Property and the Sellers shall continue to comply with such laws, ordinances, regulations, statutes, rules, and restrictions. (e) Legal Capacity. The Sellers have the legal capacity to enter into this Agreement. The Sellers have not filed, 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 year. (f) Sewer and Water. The Sellers warrant that the Property is connected to City sewer and City water. (g) Mechanics' Liens. The Sellers warrant that, prior to the closing, the Sellers shall pay in full all amounts due for labor, materials, machinery, fixtures, or tools furnished within the 120 days immediately preceding the closing in connection with construction, alteration, or repair of any structure upon 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 Sellers have no knowledge that any such action is presently contemplated. (i) teases. The Sellers represent 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. 0) Broker Commission. The Buyer represents to the Sellers 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 Sellers represent to the Buyer that the Sellers have 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 Sellers warrant 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. (1) Foreign Status. The Sellers are not "foreign persons" as such term is defined in the Internal Revenue Code. (m) Methamphetamine Production. To the best of the Sellers' knowledge, methamphetamine production has not occurred on the Property. (n) Refuse and Hazardous Materials. The Sellers have not performed and have no actual knowledge of any excavation, dumping, or burial of any refuse materials or debris of any nature whatsoever on the Property. To the Sellers' 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 Sellers represent and warrant to the Buyer that, to the Sellers' best actual knowledge and belief: 1. 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; 3. There are no underground or aboveground storage tanks on the Property; n 4. Neither the Sellers nor any prior owner of the Property or any tenant, subtenant, occupant, prior tenant, prior subtenant, prior occupant or person (collectively, "Occupant") have 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.C. 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 Sellers' 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 Sellers agree 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, which 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 cost to record its deed from the Sellers under this Agreement; (c) one-half of the closing fee charged by the title insurance or other closing agent, if any, utilized to close this transaction contemplated by this Agreement; and (d) any survey or environmental investigation costs incurred by it. The Sellers will pay: (a) any transfer/deed taxes and well disclosure fees required to enable the Buyer to record its deed from the Sellers under this Agreement; (b) fees and charges related to the filing of any instrument required to make title marketable; (c) title commitment fee; (d) title search and examination costs; and (e) one-half of the closing fee charged by the title insurance or other closing agent, if any, utilized to close the transaction contemplated by this Agreement. Each party shall pay its own attorney fees. 11. 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, as the Buyer shall elect; provided, that the Sellers are given at least 24 hours' notice. 12. Risk of Loss. If there is any loss or damage to the Property between the date hereof 7 and the Closing Date, for any reason including fire, vandalism, flood, earthquake, or act of God, the risk of loss shall be on the Sellers. If the 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 Sellers agree to sign a cancellation of Agreement. 13. Default/Remedies. If the Buyer defaults in any of the covenants herein, the Sellers may terminate this Agreement, and on such termination all payments made hereunder shall be retained by the Sellers 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 559.2 1, the termination period shall be thirty (30) days as permitted by Minn. Stat., Section 559.21, Subd. 4. 14. 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: Jaime and David Swenson 419 3rd Street NW Elk River, MN 55330 BUYER: Housing and Redevelopment Authority of the City of Elk River Attn: Amanda Othoudt 13065 Orono Parkway Elk River, MN 55330 BUYER'S COUNSEL: Kennedy & Graven, Chartered ATTN: Sarah Sonsalla 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 15. Relocation Benefits. The Sellers acknowledge that the Sellers initiated negotiations with Buyer for the transaction contemplated by this Purchase Agreement, and that this transaction is not made under threat of condemnation by the Buyer. The Sellers agree to waive any and all relocation benefits, assistance, and services to which the Sellers might otherwise be eligible. The Sellers agree to provide to the Buyer at closing an executed waiver of relocation benefits in substantially the form of the attached Exhibit C. 16. Entire Agreement. This Agreement, exhibits, and other amendments signed by the parties, shall constitute the entire Agreement between the Sellers 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 Sellers and the Buyer; except that the Closing Date may be extended up to six months by written agreement of the Sellers 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. 9 IN WITNESS WHEREOF, the undersigned have executed this Agreement on the date and year above. Buyer: Housing and Redevelopment Authority By: Sellers: Jaime Swenson f And Y. - _ � s utive Direc bavid Swenson 10 EXHIBIT A Leal Description of the Property Lots 3 and 4, except the , Block 1 of Auditors Subdivision No. 5, according to the recorded plat thereof, Sherbune County, Minnesota. A-1 EXHIBIT B Escrow Agreement THIS AGREEMENT entered into this( day of April, 2020, by and between Jaime and David Swenson (the "Sellers") 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"), and KENNEDY & GRAVEN, CHARTERED ("Escrow Agent" or "Agent"). RECITALS A. The Sellers and the Buyer have entered into a Purchase Agreement dated April , 2020 (the "Purchase Agreement") for the sale of property located at 419 3rd Street 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 June 1, 2020. AGREEMENT The parties agree as follows: 1. Delivgy of Possession. The Sellers 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 Sellers to remove all personal property and debris from the Property upon closing. The Purchase Agreement also allows funds to be escrowed for the payment of utility bills attributable to the Property. 2. Escrow. (a) Upon closing and execution of this Agreement, the Sellers agree to deposit into escrow the sum of $1000.00 (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 Sellers) evidence of expenses incurred for the removal and disposal of any personal property and debris or payment of outstanding utility bills. 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 Sellers the balance of the Escrowed Funds on deposit, less deductions provided for in paragraph 2(b) above, no later than 30 days following vacation of the Property by the Sellers. (d) The sole duties of Agent shall be those described herein, and 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. 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. Escrow Agent Liability.. The sole duties of Escrow 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 Sellers 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 Sellers and the Buyer. The Sellers consent 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: SELLERS: Jaime and David Swenson 419 3`d Street NW Elk River, MN 55330 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: Sarah Sonsalla 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 IN WITNESS WHEREOF, the parties have executed this agreement as of the date written above. SELLERS Jaime Swenson David Swenson ESCROW AGENT: KENNEDY & GRAVEN, CHARTERED BUYER: HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER By: Its: Chair - And y: Its: d e Directo HO -IN Exhibit One Legal Description of the Property Lots 3 and 4, except the east 15 feet of Lot 4, Block 1 of Auditors Subdivision No. 5, according to the recorded plat thereof, Sherbune County, Minnesota. EXHIBIT C FORM OF WAIVER OF RELOCATION BENEFITS The undersigned, acknowledge that we met with a representative of e us and Redevelopment Authority of the City of Elk River, Minnesota (HRA) on 2020. The representative, Amanda Othoudt, explained that in the event that the HRA acquires our property located at 419 3rd Street NW, Elk River, Minnesota, we may be entitled to certain relocation benefits, in addition to the amount of money being paid to us to acquire our property. These benefits may include: 1. Moving Expenses: a. A payment for actual reasonable moving expenses; or b. A fixed payment determined in accordance with the applicable schedule approved by the Federal Highway Administration. 2. Replacement Housin_ Pay »gent: A 180 -day homeowner is eligible to receive a replacement housing payment to cover the following costs: a. If the homeowner must pay more to buy a comparable replacement home than homeowner receives for the property, then homeowner may be compensated for the difference. b. Homeowners may be entitled to compensation for incidental and closing expenses related to the purchase of a decent, safe, and sanitary replacement home, such as recording fees, title insurance, appraisal, and inspection fees. C. If a homeowner must pay a higher interest rate on a mortgage to finance the purchase of a replacement home than the rate on the mortgage of the property, then homeowner may be entitled to compensation for increased mortgage interest costs. Other Relocation Assistance: This includes referrals and other assistance to help the owner(s) relocate to a comparable decent, safe, and sanitary dwelling. These payments and services are required under the regulations of the Department of Housing and Urban Development (HUD). The owner(s) cannot be required to move from his/her home unless he/she is given reasonable opportunities to relocate to a comparable decent, safe and sanitary dwelling unit that he/she can afford. C-1 Finally, it was explained to us that the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 as amended, entitles us to these relocation benefits; and if we sign this waiver, we will be waiving those relocation benefits. After having these benefits explained to me, we agree to waive them. In signing this waiver, we acknowledge that no threats have been made to us, either expressly or by implication that our property will be taken from us through condemnation. If after signing this waiver, we attempt to collect relocation benefits, we will have to prove that, contrary to what we are agreeing to in this waiver, our waiver of relocation benefits was not entered into voluntarily. This wavier is conditioned upon the Housing and Redevelopment Authority of the City of Elk River purchasing our property for the gross purchase price of $200,000.00. If this commitment to us is not fulfilled, this waiver is null and void. 41okzm Date WITNESS: J By Jaime Swenson By ' David Swenson C-2 HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER, MINNESOTA RESOLUTION NO: RESOLUTION APPROVING THE PURCHASE OF CERTAIN PROPERTY LOCATED AT: 419 3rd 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 Jaime and David Swenson, a married couple (the "Seller"), under which, among other things, the Seller will convey the property located in the City at: 419 3rd Street NW, situated in the State of Minnesota, County of Sherburne, and which is legally described as follows: LOT 3 & LOT 4 EX E 15 FT, BLK 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. Approved by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Elk River this 6th day of April, 2020. President ATTEST: Executive Director HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER, MINNESOTA RESOLUTION NO: RESOLUTION APPROVING THE PURCHASE OF CERTAIN PROPERTY LOCATED AT: 419 3rd 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 Jaime and David Swenson, a married couple (the "Seller"), under which, among other things, the Seller will convey the property located in the City at: 419 3rd Street NW, situated in the State of Minnesota, County of Sherburne, and which is legally described as follows: LOT 3 & LOT 4 EX E 15 FT, BLK 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. 20-02 Approved by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Elk River this 6th day of April, 2020. President ATTEST: Executive Director