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7.2. HRSR 08-03-2020 Cit of Elk* q liver Request for Action To Item Number Housing and Redevelopment Authority 7.2 Agenda Section Meeting Date Prepared by GeneralI August 3,2020 Amanda Othoudt,ED Director -T Item Description Reviewed by 406 Main Street NW and 419 3rd Street NW Building Cal Portner, City Administrator Moving Agreement Reviewed by Action Requested Approve,by motion,a resolution approving a building moving agreement. Background/Discussion Otting House Movers,LLC has been in business moving buildings since 1965 and expressed interest in purchasing two properties the HRA owns at 406 Main Street NW and 419 3rd Street NW. They offered $4,500 for the house at 419 3rd Street NW and $5,000 for the house and$500 for the garage located on 406 Main Street NW, for a total$10,000. Otting is licensed and insured in the State of Minnesota and has secured a location to relocate the buildings. The HRA will be responsible to remove the building's foundation and filling them in,which is included in the demolition contract with Viet Companies, Inc. There are four trees located on the property that will need to be removed prior to moving the structures. Otting is requesting that the HRA cover the cost to remove the trees. Tree removal was not part of the Viet demolition contract and will need to be bid separately. Financial Impact $10,000 will be deposited into HRA reserves. Mission/Policy/Goal The goal of the HRA is to acquire properties along Main Street NW, Gates Avenue NW and Yd Street NW as part of a redevelopment project initiated by Mississippi Connections Plan. The project will improve trail connectivity through the area and into downtown Elk River. Attachments • House Moving Contract • Tree Removal Estimate from Viet (to be delivered at the meeting) The Elk River Vision A n.,elcoming community nvith revolutionary and spirited resourcefulness, exceptional P o w E e E o s r service, and community engagement that encourages and inspires prosperity ,g /` UR BUILDING MOVING AGREEMENT This Building Moving Agreement (the "Agreement") is made this day of , 2020 by and between Otting House Movers, LLC, a Minnesota limited liability company (the "Buyer") and the Housing and Redevelopment Authority of the City of Elk River, a Minnesota body corporate and politic (the"HRA"). RECITALS WHEREAS, the HRA is the fee simple owner of real property located at: 419 3rd Street NW and 406 Main Street NW,Elk River,Minnesota(the"Properties"); and WHEREAS, the HRA will be redeveloping the Properties and needs to remove the house that is on 419 3rd NW and the house and garage that are located on 406 Main Street NW (the "Buildings"); and WHEREAS, the HRA has received an offer from the Buyer to purchase the Buildings and remove them from the Properties; and WHEREAS, the Buyer is a licensed building mover in the State of Minnesota and has secured a location to relocate the Buildings; and WHEREAS, on August 3, 2020, the HRA accepted the Buyer's offer, subject to the execution of this Agreement; and WHEREAS, the parties now wish to fulfill the requirements of the HRA's acceptance by defining the terms and conditions of the removal and relocation of the Buildings; and NOW, THEREFORE,the HRA and the Buyer agree as follows: TERMS 1.0 PAYMENT. The Buyer agrees to pay the HRA $4,500 for the house located on 419 3rd Street NW and $5,000 for the house and $500 for the garage located on 406 Main Street NW, which amounts to a total of $10,000 (the "Purchase Price") for the Buildings, which is due upon execution of this Agreement. Upon receipt of the Purchase Price and removal of the Buildings from the Properties, the HRA shall deliver to the Buyer a bill of sale for the Buildings. The Buyer shall acquire no interest in the Properties as a result of the transaction contemplated by this Agreement. 2.0 BUILDING CONDITION. The Buyer acknowledges that the Buyer has inspected or has had the opportunity to inspect the Buildings and agrees to accept the Buildings "AS IS"with no right of set off or reduction in the Purchase Price. Such sale shall be without representation of warranties, express or implied, either oral or written, made by the HRA or any official, employee or 502574v1 SJS LA275-59 agent of the HRA with respect to the physical condition of the Buildings, including but not limited to, the existence or absence of hazardous substances, pollutants or contaminants in the Buildings or with respect to the compliance of the Buildings with any codes, laws, ordinances, or regulations of any government or other body. The Buyer acknowledges and agrees that the HRA has not made and does not make any representations, warranties, or covenants of any kind or character whatsoever, whether expressed or implied, with respect to warranty of income potential, operating expenses, uses, habitability, tenant ability, or suitability for any purpose, merchantability, or fitness of the Buildings for a particular purpose, all of which warranties the HRA hereby expressly disclaims. 3.0 REMOVAL AND RELOCATION. The Buyer represents that the Buyer will remove the Buildings at grade level from the Properties and will relocate the Buildings to another property/properties. The Bttye,- shall also ro a all .debris f„f, the n )eiated with refneval of the Bttil dings The Buyer shall furnish and pay for all labor, materials, and equipment which are required for the removal of the Buildings and required work on the Properties. The HRA shall be responsible for the removal of the Buildings' foundations and filling them in. All work shall be done in accordance with this Agreement and in accordance with City of Elk River ordinances and regulations. Any reported damage to other lots, rights-of-way, or property of others, be it real or personal property caused as a result of or in connection with the removal of the Buildings is the responsibility of the Buyer. The Buyer shall promptly inform the HRA of any such reported damage. Prior to moving the Buildings, the Buyer agrees to present evidence to the HRA that permits and all approvals necessary to allow moving the Buildings to another property/properties have been granted to the Buyer by the City of Elk River and any other necessary jurisdictions. 4.0 COMPLETION DATE. The Buyer shall complete removal and relocation of the Buildings by no later than December 31, 2020. In the event that the Buyer does not remove and relocate the Buildings by December 31, 2020, the HRA may terminate this Agreement and retain the Purchase Price and the Buildings with no further obligation to convey them to the Buyer. 5.0 NO SUPERVISION BY THE HRA. The HRA assumes no responsibility for supervision of the removal and relocation of the Buildings. 6.0 WORK SITE SECURITY. After the Buildings are removed from the Properties, the Buyer shall secure and enclose the Buildings' foundations on the Properties with temporary construction fencing. 7.0 DISCONNECTION OF WATER AND SANITARY SEWER SERVICES. Prior to removing the Buildings from the Properties, the HRA will cause the City to have the City water service and sewer service connections into the Buildings cut off permanently at the main and sealed in accordance with the applicable City regulations and ordinances. 8.0 INSURANCE. The Buyer must maintain insurance with the following liability limits to protect itself and the HRA from all claims and liability for injury or damage to persons or property for all work performed in connection with this Agreement by the Buyer or its respective employees, contractors, or agents. 502574v1 SJS LA275-59 2 $1,500,000 Commercial General Liability Insurance $1,500,000 Automobile Statutory limits—Workers' Compensation The HRA shall be named as an additional insured. The Buyer must provide a certificate of insurance to the HRA as evidence of satisfaction of this requirement. 9.0 INDEMNIFICATION. The Buyer hereby agrees to hold harmless, defend, and indemnify the HRA, its officials, employees, contractors, and agents, against any and all claims, losses, liabilities, damages, costs, and expenses (including defense, settlement, and reasonable attorneys' fees in connection therewith) for claims as a result of bodily injury, loss of life, property damage, and any other claims arising out of this Agreement. 10.0 APPLICABLE LAW. This Agreement shall be controlled and governed by the laws of Minnesota. 11.0 LIENS AND ENCUMBRANCES. The Buyer shall keep the Properties free of all claims, liens, and encumbrances arising out of its activities on the Properties. The Buyer shall, at all times, protect and defend, at the Buyer's own cost and expense, the Properties and the HRA from and against all claims, liens, and legal processes of contractors and subcontractors of the Buyer. The Buyer shall provide the HRA with proof of payment for all services on the Properties. 12.0 ASSIGNMENT. The Buyer shall not assign this Agreement or procure the services of another individual or company to provide services under this Agreement without first obtaining the express written consent of the HRA. 13.0 ENTIRE AGREEMENT; AMENDMENTS. This Agreement constitutes the entire Agreement between the parties, and no other agreement prior to or contemporaneous with this Agreement shall be effective, except as expressly set forth or incorporated herein. Any purported amendment to this Agreement shall not be effective unless it is set forth in writing and executed by both parties. 14.0 NO WAIVER BY THE HRA. By entering into this Agreement,the HRA does not waive its entitlement to any immunities, either by statute or common law, including any limitation on liability to which the HRA is entitled by law. 15.0 BINDING EFFECT. This Agreement shall be binding on and inure to the benefit of the successors and assigns of the respective parties to it. 502574v1 SJS LA275-59 3 IN WITNESS WHEREOF,the parties have executed this Agreement on the date and year written above. HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER By Its: HRA Chair By: Its: Executive Director OTTING HOUSE MOVERS,LLC By: Its: 502574v1 SJS LA275-59 4 BUILDING MOVING AGREEMENT This Building Moving Agreement (the "Agreement") is made this day of , 2020 by and between Otting House Movers, LLC, a Minnesota limited liability company (the "Buyer") and the Housing and Redevelopment Authority of the City of Elk River, a Minnesota body corporate and politic (the"HRA"). RECITALS WHEREAS, the HRA is the fee simple owner of real property located at: 419 3rd Street NW and 406 Main Street NW,Elk River,Minnesota(the"Properties"); and WHEREAS, the HRA will be redeveloping the Properties and needs to remove the house that is on 419 3rd NW and the house and garage that are located on 406 Main Street NW (the "Buildings"); and WHEREAS, the HRA has received an offer from the Buyer to purchase the Buildings and remove them from the Properties; and WHEREAS, the Buyer is a licensed building mover in the State of Minnesota and has secured a location to relocate the Buildings; and WHEREAS, on August 3, 2020, the HRA accepted the Buyer's offer, subject to the execution of this Agreement; and WHEREAS, the parties now wish to fulfill the requirements of the HRA's acceptance by defining the terms and conditions of the removal and relocation of the Buildings; and NOW, THEREFORE,the HRA and the Buyer agree as follows: TERMS 1.0 PAYMENT. The Buyer agrees to pay the HRA $4,500 for the house located on 419 3rd Street NW and $5,000 for the house and $500 for the garage located on 406 Main Street NW, which amounts to a total of $10,000 (the "Purchase Price") for the Buildings, which is due upon execution of this Agreement. Upon receipt of the Purchase Price and removal of the Buildings from the Properties, the HRA shall deliver to the Buyer a bill of sale for the Buildings. The Buyer shall acquire no interest in the Properties as a result of the transaction contemplated by this Agreement. 2.0 BUILDING CONDITION. The Buyer acknowledges that the Buyer has inspected or has had the opportunity to inspect the Buildings and agrees to accept the Buildings "AS IS"with no right of set off or reduction in the Purchase Price. Such sale shall be without representation of warranties, express or implied, either oral or written, made by the HRA or any official, employee or 502574v1 SJS LA275-59 agent of the HRA with respect to the physical condition of the Buildings, including but not limited to, the existence or absence of hazardous substances, pollutants or contaminants in the Buildings or with respect to the compliance of the Buildings with any codes, laws, ordinances, or regulations of any government or other body. The Buyer acknowledges and agrees that the HRA has not made and does not make any representations, warranties, or covenants of any kind or character whatsoever, whether expressed or implied, with respect to warranty of income potential, operating expenses, uses, habitability, tenant ability, or suitability for any purpose, merchantability, or fitness of the Buildings for a particular purpose, all of which warranties the HRA hereby expressly disclaims. 3.0 REMOVAL AND RELOCATION. The Buyer represents that the Buyer will remove the Buildings at grade level from the Properties and will relocate the Buildings to another property/properties. The Buyer shall furnish and pay for all labor, materials, and equipment which are required for the removal of the Buildings and required work on the Properties. The HRA shall be responsible for the removal of the Buildings' foundations and filling them in. All work shall be done in accordance with this Agreement and in accordance with City of Elk River ordinances and regulations. Any reported damage to other lots, rights-of-way, or property of others, be it real or personal property caused as a result of or in connection with the removal of the Buildings is the responsibility of the Buyer. The Buyer shall promptly inform the HRA of any such reported damage. Prior to moving the Buildings, the Buyer agrees to present evidence to the HRA that permits and all approvals necessary to allow moving the Buildings to another property/properties have been granted to the Buyer by the City of Elk River and any other necessary jurisdictions. 4.0 COMPLETION DATE. The Buyer shall complete removal and relocation of the Buildings by no later than December 31, 2020. In the event that the Buyer does not remove and relocate the Buildings by December 31, 2020, the HRA may terminate this Agreement and retain the Purchase Price and the Buildings with no further obligation to convey them to the Buyer. 5.0 NO SUPERVISION BY THE HRA. The HRA assumes no responsibility for supervision of the removal and relocation of the Buildings. 6.0 WORK SITE SECURITY. After the Buildings are removed from the Properties, the Buyer shall secure and enclose the Buildings' foundations on the Properties with temporary construction fencing. 7.0 DISCONNECTION OF WATER AND SANITARY SEWER SERVICES. Prior to removing the Buildings from the Properties, the HRA will cause the City to have the City water service and sewer service connections into the Buildings cut off permanently at the main and sealed in accordance with the applicable City regulations and ordinances. 8.0 INSURANCE. The Buyer must maintain insurance with the following liability limits to protect itself and the HRA from all claims and liability for injury or damage to persons or property for all work performed in connection with this Agreement by the Buyer or its respective employees, contractors, or agents. $1,500,000 Commercial General Liability Insurance 502574v1 SJS LA275-59 2 $1,500,000 Automobile Statutory limits—Workers' Compensation The HRA shall be named as an additional insured. The Buyer must provide a certificate of insurance to the HRA as evidence of satisfaction of this requirement. 9.0 INDEMNIFICATION. The Buyer hereby agrees to hold harmless, defend, and indemnify the HRA, its officials, employees, contractors, and agents, against any and all claims, losses, liabilities, damages, costs, and expenses (including defense, settlement, and reasonable attorneys' fees in connection therewith) for claims as a result of bodily injury, loss of life, property damage, and any other claims arising out of this Agreement. 10.0 APPLICABLE LAW. This Agreement shall be controlled and governed by the laws of Minnesota. 11.0 LIENS AND ENCUMBRANCES. The Buyer shall keep the Properties free of all claims, liens, and encumbrances arising out of its activities on the Properties. The Buyer shall, at all times, protect and defend, at the Buyer's own cost and expense, the Properties and the HRA from and against all claims, liens, and legal processes of contractors and subcontractors of the Buyer. The Buyer shall provide the HRA with proof of payment for all services on the Properties. 12.0 ASSIGNMENT. The Buyer shall not assign this Agreement or procure the services of another individual or company to provide services under this Agreement without first obtaining the express written consent of the HRA. 13.0 ENTIRE AGREEMENT; AMENDMENTS. This Agreement constitutes the entire Agreement between the parties, and no other agreement prior to or contemporaneous with this Agreement shall be effective, except as expressly set forth or incorporated herein. Any purported amendment to this Agreement shall not be effective unless it is set forth in writing and executed by both parties. 14.0 NO WAIVER BY THE HRA. By entering into this Agreement,the HRA does not waive its entitlement to any immunities, either by statute or common law, including any limitation on liability to which the HRA is entitled by law. 15.0 BINDING EFFECT. This Agreement shall be binding on and inure to the benefit of the successors and assigns of the respective parties to it. 502574v1 SJS LA275-59 3 IN WITNESS WHEREOF,the parties have executed this Agreement on the date and year written above. HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER By Its: HRA Chair By: Its: Executive Director OTTING HOUSE MOVERS,LLC By: Its: 502574v1 SJS LA275-59 4