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01-20-09 AgendaCITY OF RICHFIELD, MINNESOTA • TUESDAY, JANUARY 20, 2009. *~k~k:k*~e*****ink*s'l k~r*******~e*~Y~YMl~***~k***~k ***~rfrlnriY*Ye*~e*~Y*ir~:k*~kir*** SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY WORKSESSION RICHFIELD CITY HALL COUNCIL CHAMBERS 6700 PORTLAND AVENUE 6:00 P.M. • Call to order Roll call 1. Discussion regarding Foreclosure Update and Program Guidelines Notes: 2. Discussion regarding Urban Land Institute Housing Audit Review Notes: Adjournment ~**~Y~k****~rk**~Ie~r********Ye~kYt~r~it****~k*~*~t*~**~*~Y~*~t~k~it*~t****~t*~rk**~e*~k***Yt***~k***~r***~Yt****~e** k*~* REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING RICHFIELD CITY HALL COUNCIL CHAMBERS 6700 PORTLAND AVENUE 7:00 P.M. AGENDA Call to order Roll call 1. Consideration of electionof HRA officers for 2009 Staff Report No. 1 Notes: 2. Approval of minutes of Regular HRA Meeting of December 15, 2008 Notes: • 3. HRA approval of agenda 4. Consent Calendar contains several separate items which are acted upon by the HRA in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further HRA action is necessary. However, any HRA Commissioner may request that an item be removed from the Consent Calendar and placed on the regular agenda for HRA discussion and action. All items listed on the Consent Calendar are recommended for approval. A. Consideration of approval of designating Community Development Director as Acting Executive Director of HRA in event Executive Director is absent from City for 2009 S.R. No. 2 B. Consideration of approval of resolutions designating official depositories for HRA, including collateral, for 2009 S.R .No. 3 C. Consideration of approval of resolution designating Richfield Sun-Current as official newspaper for 2009 S.R. No. 4 Notes: 5. Consideration of approval of Contract for Private Redevelopment between HRA and • Eric Blad for redevelopment of 2830 West 70 1/2 Street under Richfield Rediscovered Program and consideration of subordination request Staff Report No. 5 Notes: 6. Executive Director report 7. Claims and payroll Adjournment Auxiliary aids-for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. U AGENDA ITEM # 1 REPORT # 1 • ~~ STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING - JANUARY- 20, 2009 REPORT PREPARED BY: REPORT PRESENTER: CHERYL KRUMHOLZ, EXEC. COOR. NAME, T/TZE . DEVICH, EXECUTIVE DIRECTOR NAME, TITLE • REVIEWED BY EXECUTIVE DIRECTOR: 1 .ITEM FOR HRA CONSIDERATION: Consideration of the election of officers for the Housing and Redevelopment Authority (HRA) for 2009 I. RECOMMENDED ACTION: By Motion: Elect officers for the Richfield Housing and Redevelopment Authorit for 2009. II. BACKGROUND ~ The bylaws of the Richfield Housing and Redevelopment provide that the HRA hold an annual meeting in January. The bylaws further provide that the Chair, Vice Chair and Secretary of the HRA be elected at this meeting. Officers for 2008 were: Sue Sandahl, Chair David Gepner, Interim Vice Chair Joan Helmberger, Secretary • 0120officers III. BASIS OF RECOMMENDATION • A. POLICY • The bylaws of the Richfield HRA provide that the HRA hold an annual meeting in January. • The bylaws further provide that the Chair, Vice Chair and Secretary of the HRA be elected at this meeting. B. CRITICAL ISSUES • The bylaws of the Richfield HRA require that an election of officers for the HRA be held at the annual meeting in January. IV. ALTERNATIVE RECOMMENDATION~S~ • Do not hold the election. However, this would be in contradiction of the HRA bylaws. V. PRINCIPAL PARTIES EXPECTED AT MEETING • None. • AGENDA ITEM # ~+A REPORT # 2 • ~~' STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 20, 2009 n REPORT PREPARED BY: REPORT PRESENTER: REVIEWED BY EXECUTIVE DIRECTOR: CHERYL KRUMHOLZ, EXEC. COOR. NAME, TITLE STEVEN L. D~VICH, EXECUTIVE DIRECTOR ITEM FOR HRA CONSIDERATION: Consideration of designating the Community Development Director as the Acting Executive Director of the Housing and Redevelopment Authority (HRA) for 2009 in the event the Executive Director is absent from the Cit . RECOMMENDED ACTION: By Motion: Designate the Community Development Director as Acting Executive Director of the HRA in the event the Executive Director is absent from the City. II. BACKGROUND Since the City Manager also serves as the HRA Executive Director, it is recommended that the Community Development Director be designated by the HRA as the Acting Executive Director to -serve in that capacity during the absence of the Executive Director. The Community Development Director was designated Acting Executive Director for 2009. _ III. BASIS OF RECOMMENDATION . A. POLICY 0120acting • Designation of an Acting Executive Director is a normal business action of the HRA similar to the designation of depositories and the • official newspaper. • The Community Development Director has been designated as the Acting Executive Director in the past. B. CRITICAL ISSUES • It is necessary to designate a person to serve as the Acting Executive Director to ensure continuation of HRA operations during an absence of the Executive Director. IV. ALTERNATIVE RECOMMENDATION~S~ • Defer this designation to another HRA meeting. V. PRINCII'AL PARTIES EXPECTED AT MEETING • None. • AGENDA ITEM # 4B REPORT # 3 • STAFF REPORT r HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 20, 2009 REPORT PREPARED BY: CHRIS REGIS, FINANCE MANAGER NAME, TITLE n U REPORT PRESENTER: STEVEN L. DEVICH, EXECUTIVE DIRECTOR NAME, TITLE DEPARTMENT DIIZECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of resolutions designating official depositories for the Housing and Redevelo ment Authorit for 2009, includin the a royal of collateral. RECOMMENDED ACTION: By Motion: Adopt the attached resolutions designating official depositories, with the understanding that the HRA could not invest in any of the depositories beyond the level of insurance coverage of the pledged collateral. 1111. BASIS OF KECOMMENDATION I A. POLICY • In accordance with Minnesota Statutes Section 118A.01 - 118A.06, the HRA of Richfield must designate financial institutions annually. The institutions must pledge the collateral over and above the amount of federal insurance, as public depositories. • U.S. Bank acts as the banking institution in the HRA's banking arrangement with the 4M Fund. Monies received,. checks written, by the HRA, flow through U.S. Bank, however, at the end of each business day, any proceeds remaining in HRA U.S. Bank accounts are swept to the 4M Fund to be invested. Therefore, at the end of the business day the HRA • accounts are zero, which means the collateral requirements of Minnesota Statutes Section 118A.03 are not required. Accordingly, U.S. Bank has met all other statutory requirements and should be considered as a depository for the HRA's vendor accounts and all savings deposits. • The HRA must also designate annually, certain savings and loan associations, banks, and credit unions as official depositories for deposit and investment of certain HRA funds. With approval of these official depositories, the HRA will be able to invest funds in these institutions, not exceeding the federal insurance of $250,000. • Finally, a designation must be made for certain financial institutions as depositories for the investment of HRA funds for 2009.. These institutions, such as investment brokerage firms, offer government securities in the manner required by law. These financial institutions include U.S. Bank, RBC Dain Rauscher, Wells Fargo Institutional Brokerage & Sales, Morgan Keegan, Piper Jaffray & Co., Northland Securities and the 4M Fund. B. CRITICAL ISSUES • N/A C. FINANCIAL • N/A D. LEGAL • • The HRA is required by Minnesota Statute 118A.01 - 118A.06, to designate as a depository of funds, insured banks or thrift institutions. Any collateral so deposited is accompanied by an assignment pledged to the HRA in the amount specified in the attached resolutions. E. ENVIRONMENTAL CONSIDERATIONS • /A IV. ALTERNATIVE RECOMMENDATION(S) • The HRA could solicit other financial institutions for official depositories, but past relationships with the depositories recommended have proven satisfactory for the City. ATTACHMENTS ~ • Resolution designating US Bank a depository of funds of the HRA of Richfield for the year 2009. _. _ Resolution designating certain savings and loan associations, banks, and credit unions as depositories for the investment of HRA funds in 2009. • Resolution designating certain financial institutions as depositories for the investment of HRA of Richfield funds in 2009. V 1. YRINCIl'AL PARTIES HXPECTED AT MEETING I • ~~ ' RESOLUTION NO. • RESOLUTION DESIGNATING U.S. BANK A DEPOSITORY OF FUNDS OF THE HRA OF RICHFIELD FOR THE YEAR 2009 BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield as follows: That, in accordance with Minnesota Statutes, Section 118A.01- 118A.06, U.S. Bank be, and hereby is designated a depository of the funds of the Housing and Redevelopment Authority of Richfield, subject to modification and revocation at any time by said Housing and Redevelopment Authority, and subject to the following terms and conditions: The said depository shall not be required to give bonds or other securities for such deposits provided that the total sum thereof shall not at any time exceed in any depository the sums for which its deposits are insured under the Acts of Congress of the United States relating to insurance of bank deposits; but that in case such deposits in any such depository shall at any time exceed such insured sum, said depository shall immediately furnish bonds or other security for such excess according to law, approved by the Housing and Redevelopment Authority of Richfield. That said depository shall pay on demand all deposits therein; and shall pay all time deposits, at or after the end of the period for which the same shall be deposited, on demand. BE IT FURTHER RESOLVED, that there shall be maintained a general account in which shall be deposited all- monies. The following officers or their facsimile signatures shall sign checks on this account; SUZANNE M. SANDAHL, CHAIR STEVEN L. DEVICH, EXECUTIVE DIRECTOR BE IT FURTHER RESOLVED, that all funds remaining in the account at the end of each business day will be transferred from U.S. Bank to the 4M Fund where funds deposited are invested and insured. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 20th day of January, 2009. Suzanne M. Sandahl, Chair ATTEST: Joan Helmberger, Secretary LJ ~~-a RESOLUTION NO. RESOLUTION DESIGNATING CERTAIN SAVING AND LOAN ASSOCIATIONS, BANKS AND CREDIT UNIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2009 BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield, Minnesota: WHEREAS, pursuant to Minnesota Statutes, Sections 118A.01 -118A.06, municipal funds may be deposited in any Savings and Loan Association, Bank or Credit Union which has its deposits insured by the Federal Deposit Insurance Corporation (FDIC), or National Credit Union Administration (NCUA); and WHEREAS, the amount of said deposits may not exceed the FDIC/NCUA insurance covering such deposits which insurance amount is presently $250,000; and WHEREAS, the deposit of Housing and Redevelopment Authority funds in Savings and Loan Associations and Banks would provide greater flexibility in the Housing and Redevelopment Authority's investment program and maximize interest income thereon. NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield, Minnesota, as follows: 1. It is hereby found and determined that it is in the best interest of the proper management of Housing and Redevelopment Authority funds that certain Savings and Loan Association and Banks be designated as additional depositories for Housing and Redevelopment Authority funds for 2009. 2. It is further found and determined that the purpose of such depository designation is to facilitate the proper and advantageous investments of Housing and Redevelopment Authority funds and that such designation is not exclusive nor does it preclude the deposit of any Housing and Redevelopment Authority funds in other officially designated depositories of the Housing and Redevelopment Authority. 3. The Treasurer and Finance Manager are hereby authorized to deposit Housing and Redevelopment Authority funds in various depositories up to the amount of $250,000, or such other amount as may be subsequently permitted by law, such deposits to be in the form of demand accounts, payable to the Housing and Redevelopment Authority of Richfield on the signatures of the Housing and Redevelopment Authority Treasurer or Finance Manager. Such deposits may be made and withdrawn from time to time by the Treasurer or Finance Manager as his best judgment and the interests of the Housing and Redevelopment Authority dictates. 4. The investment of funds and the reporting thereof pursuant to this resolution shall be conducted in accordance with established policies of the Housing and Redevelopment Authority regarding the investment of Housing and Redevelopment Authority funds. Adopted by the Housing and Redevelopment Authority of Richfield, .Minnesota this 20th day of January, 2009. Suzanne M. Sandahl, Chair • ATTEST: Joan Helmberger, Secretary u~-3 RESOLUTION NO. • RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT-AUTHORITY OF RICHFIELD FUNDS IN 2009 WHEREAS, the Housing and Redevelopment Authority of Richfield has money which is available for investment; and - WHEREAS, different financial institutions offer different rates of return on investments; and WHEREAS, the Housing and Redevelopment Authority of Richfield shall purchase U. S. Treasury Bills, U. S. Treasury Notes and other such government securities in the manner required by law from the institution offering the highest rate to the Housing and Redevelopment Authority of Richfield providing greater flexibility in the investment program and maximize interest income thereon. NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield, Minnesota, in accordance with" Minnesota Statutes, Sections 118A.01 - 118A.06, as follows: 1. It is hereby found and determined that it is in the best interest of the proper management of Housing and Redevelopment Authority of Richfield funds that certain financial institutions be designated as additional depositories for Housing and Redevelopment Authority of Richfield funds for 2009. • 2. The following financial institutions designated as depositories for the Housing and Redevelopment Authority of Richfield funds: RBC Dain Rauscher, Inc. Piper Jaffray & Co. Wells Fargo Institutional Brokerage & Sales Morgan Keegan 4M Fund Northland Securities, Inc. 3. The Treasurer and Finance Manager are hereby authorized to deposit the Housing and Redevelopment Authority of Richfield funds in any or all of the depositories herein designated. Such deposits may be made and withdrawn from time to time by the Treasurer or Finance Manager's judgment and as the interest of the Housing and Redevelopment Authority of Richfield dictates. 4. The investment of funds and the reporting thereof pursuant to this resolution shall be conducted in accordance with established policies regarding the - investment of these funds. Adopted by the Housing .and Redevelopment Authority of Richfield, Minnesota this 20th day of January, 2009. Suzanne M. Sandahl, Chair ATTEST: Joan Helmberger, Secretary • STAFF REPORT AGENDA ITEM # 4C REPORT # ~+ HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 20, 2009 REPORT PREPARED BY: NANCY GIBBS, CITY CLERK NA.ttE REPORT PRESENTER: STEVEN L. DEVICH, EXECUTIVE DIIZECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: SIGNATURE • REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of resolution designating an official newspaper for 2009. I. RECOMMENDED ACTION: By Motion: Approve the resolution designating for 2009 the Richfield Sun-Current as the official newspaper for the Cit of Richfield II. BACKGROUND The Richfield Sun-Current, published by Minnesota Sun Publications, has been the City's official newspaper for many years. Attached is a copy of a letter from Minnesota Sun Publications requesting that they be designated the official newspaper for the City of Richfield for 2009. The 2009 advertising rate structure for legal notices is as follows: 1 Column width $14.30 per inch for first insertion $ 7.15 per subsequent inch There are 11 lines per inch. The 2008 rate was the same as the rate proposed for 2009. 0120newspaper For 2009 the Minneapolis Star Tribune Newspaper could be considered as the official newspaper. Attached is a fax of the 2009 advertising rate structure for IegaF notices in the Sunday and weekday, metro and statewide issues. The rate is $3.40 per line. Their 2009 rate has decreased from the 2008 rate of $4.75 per line. Based on the 2009 rates for 11 lines per inch, the total would be $37.40 per inch in the Star Tribune compared to $14.30 per inch in the Sun-Current. III. BASIS OF RECOMMENDATION A. POLICY - • The Charter of the City of Richfield requires in Section 13.01 thereof that the City Council annually designate an official newspaper for the City. • The Sun-Current has expressed an interest in continuing to serve as the official newspaper of the City. • The Sun-Current has served well as the official paper for many years. • The Sun-Current is delivered to nearly all residences in the City. B. CRITICAL ISSUES • The designation must be made at the first meeting of the new year. . C. FINANCIAL • The cost of the official publication is reasonable. D. LEGAL • A newspaper must be designated each year by the City for publication of all official and legal City business. IV. ALTERNATIVE RECOMMENDATION~S~ • Not make a designation and request the City Clerk's office to check into using another publication. ` V. ATTACHMENTS • Resolution - • Letter from Minnesota Sun Publications • Fax from Star Tribune VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None I-^1 U ~~~ • HRA RESOLUTION NO. RESOLUTION DESIGNATING AN OFFICIAL NEWSPAPER FOR 2009 WHEREAS, the Charter of the City of Richfield requires in Section 13.01 thereof that the HRA annually designate an official newspaper for the City. NOW, THEREFORE, BE IT RESOLVED that the Richfield Sun-Current is designated the official legal newspaper for the City of Richfield for 2009 for all publications required to be published therein. Adopted by the HRA of the City of Richfield, Minnesota this 20th day of January, 2009. Sue Sandahl, Chair ATTEST: Nancy Gibbs, City Clerk • M<.aal~ ~~~~ ~,Bir°8 Beacon ~c-~ ~ PxESS~Ews ncvspap~rs ~X~ www.mneuncom ~ Sllli P1~I'lOt ~ Newspapers ~tfl[inate ~ ~~ ~~~~ 116 East River 408 E. Main St. 33 Second St. N.E. 10917 Valley View Road 8 Elm Street South 1931 Curve Crest Blvd. Mnntirelln T/TN SS3(~.2, TRo.I.~~ T~T G62S2 oSSe , ~::t*: ~~36ni E.'=e.i ;?i'aui , *.ii~: ~.ci344 iiaCVa T"TT`T cc~o^~ lia, tvtt\ /JJO/ o..n._ ~.n.r ccnon J1.111 V1/atGr, 1V11V JJVOG November 19, 2008 City of Richfield City Council 6700 Portland Avenue Richfield, MN 55423-2599 Dear City Council Members: The Richfield Sun-Current would like to be considered for designation as the legal newspaper for the City of Richfield for the upcoming. year. All published legal notices are posted on our website (www.mnsun,com) at no additional charge. This is an enhancement to the local news coverage already available on the Internet and will broaden the readership of your legal notices. One of the main benefits of publishing your legal notices with the Sun-Current is our home delivery. Sun Newspapers has become the primary source of community news in the suburbs. Your notices in ~ur paper have the best chance of being seen and read. We would like to continue working with you, therefore, we will not be making a rate change for the coming year.. The rate structure for legals effective the first of the year will be: 1 column width:. $14.30 per inch for first insertion $7.15 per inch for subsequent insertions Our columns are 14 picas wide There are 11 lines per inch Two notarized affidavits on each. of your publications will be provided with no additional charge. The deadline for regular length notices is 2:00 p.m. the Thursday prior to publication. E-mailing the legal notices is an efficient and accurate way of getting the notices,to us. The e-mail address for the legals department is sunlegals@acnpapers.com. If you require more information to make your deci- sion, please contact me or Mary Ann Carlson, our Legals Representative, at 952-392-6829. Thank you for considering the Sun-Current as the official newspaper for the City of Richfield for the upcoming year. We appreciate the opportunity to serve the needs of your community. Sincerely, ob Cole ice President and Group Publisher In the Community • With the Community • For the Community 12/30/2008 11:56 FA% 612 673 4884 J STAR TRIBUNE CLS. ADV. I~001 ~~~ ^• rr - MfNNEAPOLIS ST_ PAUL 425 Partiand Avenue Minneapolis; Minnesota 55488-0002 FEDERAL EKPRESS/AIRBORNE Mail -USE Zip Code 55415 PLEASE DELIVER T0: ~'~ ~ y ~ Fax Nui~BER: {sf2j s~3-4s$a PHONE NUMBERS: {6f2j 673-7000 1-800-927-9233 nary ~~ 3~ r 2adg QELIVERYFROM: ~~o't.e ')( ~( (p3?-i- NUMBER OF PAGES INCLUDfNG COVfR SHEET: I C~MIyIfNfS: C~ ~,.. ~ ~..~. ~ U~ .'~al. ~ ~ ~ p l~U~.-c~-c/l. r moo, ~, ~~~ C~~.~ ~~ ~ ~ ~ ~ . r ~z~~ ~~- • J 5 5 STAFF RETORT AGENDA ITEM # REPORT # HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 20, 2009 REPORT PREPARED BY: • REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: KIRSTEN PARTENHEIMER, HOUSING SPECIALIST NAME, TITLE JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR ITEM FOR HRA CONSIDERATION: Consideration of a Contract for Private Redevelopment between the Housing and Redevelopment Authority and Eric Blad for the redevelopment of 2830 West 70 1/2 Street under the Richfield Rediscovered Pro ram and consideration of a subordination request. L RECOMMENDED ACTION: By Motion: Approve and authorize execution of a Contract for Private Redevelopment between the Housing and Redevelopment Authority and Eric Blad for the redevelopment 2830 West 70 1/2 Street. subordination of m • II. BACKGROUND The purpose of the Richfield Rediscovered Program is to remove substandard and functionally obsolete housing, develop new single-family ownership opportunities and incorporate desirable features that are current in the market. Eric Blad has submitted an application for the redevelopment of 2830 West 70 1/2 Street under the Richfield Rediscovered Program. The home Mr. Blad will acquire and demolish was built in 1938 and has 1,090 square feet. The home is vacant and 012009 RR Contract 2830 W 70 1/2 St - Blad in foreclosure. The new two-story Craftsman-style home will have 2,324 square feet, three bedrooms, two and a half baths and an attached, twa-stall garage. Under the terms of the Contract for Private Redevelopment, a lien is put on the property until the house is completed. The Contract requires the HRA's lien to be in first position. According to "Section 6.3 Subordination" of the Contract, the HRA can agree to modify the Mortgage upon request by the financial institution and the Buyer. Mr. Blad is requesting that the HRA subordinate its lien in order for him to secure private financing. Mr. Blad is in agreement with the terms of the Contract for Private Redevelopment and has signed it. Staff has reviewed Mr. Blad's Richfield Rediscovered application and recommends approval of the Contract for Private Redevelopment and the subordination request. III. BASIS OF RECOMMENDATION A. POLICY • Housing and Redevelopment Authority (HRA) staff has received a completed application and $500 application fee. • The proposed project meets the objectives of the Richfield • Rediscovered program: o Removes substandard, functionally obsolete housing and eliminates its blighting influence. o Provides new, higher valued housing. o Alleviates shortage of housing choice for families. o Facilitates the HRA's "Market Rate Initiatives" by providing a three-four-bedroom, owner-occupied house designed for a family. • The project meets the Housing Design and Site Development Criteria, as defined in Exhibit B of the Contract for Private Redevelopment. • "Evaluation of Substandardness" has been conducted on the property. • Section 5.2 Note Terms (f) of the Contract for Private Development .reads: "Unless the HRA agrees otherwise in accordance with Section 6.3, the Mortgage will be a first lien on the Property." • Section 6.3 Subordination of the Contract for Private Development reads: "In order to facilitate obtaining financing for the construction of the Improvements by the Buyer, the HRA shall agree to modify this Agreement, the Note or the Mortgage in the manner and to the extent the HRA deems reasonable, upon request by the financial institution and the Buyer." B. CRITICAL ISSUES • The small house has limited market appeal and can be demolished to accommodate a home that provides move-up housing. • Prospective Richfield Rediscovered participants bear a significant cost in acquisition and demolition of an inner-ring suburban lot. The $70,000 Redevelopment Credit helps fill the financing gap. • The HRA is being asked to subordinate its mortgage with the Buyer to second position until such time the lien is forgiven. The lien will be removed from the property once a Certificate of Completion has been issued. Per the Contract for Private Development, the house must be completed within one year. C. FINANCIAL • This project is eligible fora $70,000 Redevelopment Credit subject to the terms of the Contract for Private Redevelopment. • Under the terms of the Contract, three installments would be made: o $25,000 would be due and payable at closing. o $25,000 would be due and payable following the issuance of a building permit for construction. o $20,000 would be due on the date of the issuance of a Certificate of Completion. • Mr. Blad's project is the first of five projects budgeted for 2009. D. LEGAL • Mr. Blad is in agreement with the terms of the Contract and has • signed it. IV. ALTERNATIVE RECOMMENDATIONMaS~ • Do not execute the Contract for Private Redevelopment. • Amend the Contract for Private Redevelopment and direct staff to work with property owners to revise their proposal. • Approve the Contract.for Private Development and deny the subordination reauest. V. ATTACHMENTS • Contract for Private Redevelopment • Building Plans/ Elevations • Site Plan/ Landscaping Plan • Purchase Agreement • Subordination Request VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Mr. Blad, property owner • ~~ 1 • CONTRACT FOR PRIVATE DEVELOPMENT Between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA • and ERIC BLAD at 2830 WEST 70 1/2 STREET, RICHFIELD, MN 55423 This Instrument Drafted by: City of Richfield 6700 Portland Avenue S. Richfield, Minnesota 55423 Telephone: 612-861-9760 LJ ~~~ CONTRACT FOR PRIVATE DEVELOPMENT THIS AGREEMENT, made and entered into as of this day of January 2009, by and between the Housing and Redevelopment Authority in and for the .City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, having its principal office at 6700 Portland Avenue, Richfield, Minnesota (HRA), and Eric Blad (Buyer). WITNESSETH: WHEREAS, the City of Richfield (City) and the HRA have previously created and established a Redevelopment Project (Project) and Tax Increment Financing District (TIF District) pursuant to the authority granted in Minnesota Statutes, Sections 469.001 through 469.047 and Sections 469.174 through 469.179 (collectively, the Acts); and WHEREAS, pursuant to the Acts, the City and the HRA have previously adopted a redevelopment plan (Redevelopment Plan) and a tax increment financing plan (TIF Plan) to finance all or a portion of the public development costs of the Project; and WHEREAS, in order to achieve the objectives of the Redevelopment Plan and TIF Plan as hereinafter defined and particularly to make specified land in the Project available for development by private enterprise for and in accordance with the Redevelopment Plan, the HRA has determined to provide substantial aid and assistance to finance public development costs in the Project; and r WHEREAS, the Buyer has proposed a development as hereinafter defined within the Project which the HRA has determined will promote- and carry out the objectives for which the Project has been undertaken, will assist in carrying out the obligations of the Redevelopment Plan and TIF Plan, will be in the vital best interests of the City and the health, safety and welfare of its residents and is in accord with the public purposes and provisions of the applicable state and local laws and requirements under which development in the Project has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the. mutual covenants and obligation of the HRA and the Buyer, each party does hereby represent, covenant and agree with the other as follows: ARTICLE I. DEFINITIONS, EXHIBITS. RULES OF INTERPRETATION Section 1.1. Definitions. In this Agreement, the following -terms have the meaning given below unless the context clearly requires otherwise: (a) Cam. The City of Richfield, Minnesota. (b) Construction Plans. Collectively, the plans, drawings and related documents related to the Improvements, which are listed on Exhibit D. 1 ~-3 (c) Buyer. Eric Blad, a single person. (d) Development. The Property and the Improvements to be constructed thereon according to the Construction Plans approved by the HRA. (e) HRA. The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota. (fj Closin The date on which Buyer closes on the Purchase of the Property. (g) Housing and Redevelopment Authorities Act (HRA Act). Minnesota Statutes Sections 469.001 through 469.047. (h) Improvements. Each and all of the structures and site improvements constructed on the Property by the Buyer, as specified in the Construction Plans approved by the HRA. (i) Minimum Market Value. $188,000, which is the minimum market value for the land and Improvements as confirmed by the Hennepin County Assessor. (j) Mort~a~e and Holder. The term "mortgage" shall include the mortgages referenced in Article VI of this Agreement and any deed of trust or other instrument creating an encumbrance or lien upon the Property or any part thereof, as security for a loan. The term "holder" in reference to a mortgage includes any insurer or guarantor (other than the Buyer) of any obligation or condition secured by such mortgage or deed of trust. (k) Pro er .The real property legally described as: THE PART OF LOT 15, SABIN LAKE HARRIET GARDEN LOTS, LYING SOUTH OF A LINE RUNNING FROM A POINT IN THE WEST LINE OF SAID LOT DISTANT 164.3 FEET SOUTH FROM THE NORTHWEST CORNER THEREOF TO A POINT IN THE EAST LINE OF SAID LOT DISTANT 164.2 FEET SOUTH FROM THE NORTHEAST CORNER THEREOF, EXCEPT THE WEST 62 FEET THEREOF, HENNEPIN COUNTY, MINNESOTA. Located on land having a street address o£ 2830 West 701/Z Street (1) Redevelopment Project (Project). The Redevelopment Project established by the HRA pursuant to Minnesota Statutes Sections 469.001 through 469.047 and described in the Redevelopment Plan. (m) Redevelopment Project Plan (Redevelopment Plan). The plans for implementation of the Project adopted by the HRA pursuant to Minnesota Statutes Sections 469.001 through 469.047. 2 ~~ (n) Tax Increment Financin~Act (TIF Act). Minnesota Statutes Sections 469.174 through 469.179, (o) Tax Increment Financing .District (TIF District). The TIF District previously created by the HRA pursuant to Minnesota Statutes Sections 469.174 through 469.179 and described in the TIF Plan adopted therefor. (p) Tax Increment Financing Plan (TIF Plan). The plan for development of the TIF District previously adopted by the HRA pursuant to Minnesota Statutes, Sections 469.174 through 469.179. (q) Unavoidable Delays. Delays which are the direct result of strikes, labor troubles, fire or other casualty to the Improvements, litigation commenced by third parties which results in delays or acts of any federal, state or local government, except those contemplated by this Agreement, which are beyond the control of the Buyer. Section 1.2 Exhibits. The following Exhibits are attached to and by reference made a part of this Agreement: A. Form of Certificate of Completion B. Housing Design and Site Development Criteria C. The Note and Mortgage D. List of Construction Plan Documents Section 1.3 Rules of Interpretation. (a) This Agreement shall be interpreted in accordance with and governed by the laws of the State of Minnesota. (b) The words "herein" and "hereof' and words of similar import, without reference to any particular section or subdivision refer to this Agreement as a whole rather than any particular section or subdivision hereof. (c) References herein to any particular section or subdivision hereof are to the section or subdivision of this Agreement as originally executed. (d) Any titles of the several parts, articles and sections of this Agreement are inserted for convenience and reference only and shall be disregarded in construing or interpreting any of its provisions. ARTICLE II. REPRESENTATIONS AND UNDERTAKINGS Section 2.1 By the Buyer. The Buyer makes the following representations and undertakings: 3 ~~~ (a) The Buyer has the legal authority and power to enter into this Agreement and has duly authorized the execution, delivery and performance of this Agreement; (b) The Buyer has the necessary equity capital or will obtain commitments for financing necessary for construction of the Improvements; (c) The Buyer will construct the Improvements in accordance with the terms of this Agreement and all local, state and federal laws and regulations; (d) The Buyer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, the requirements of all local, state and federal laws and regulations which must be obtained or met before the Improvements may be constructed; and (e) The plans for the Improvements have been prepared by a qualified draftsperson or architect. (f) Buyer intends to reside at the Property following completion of construction; and is not acquiring the Property for the purpose of resale or speculation. Section 2.2 By the HRA. The HRA makes the following representations as the basis for the undertaking on its part herein contained: (a) The HRA is authorized by law to enter into this Agreement and to carry out its obligations hereunder; and (b) The HRA will, in a timely manner, subject to all notification requirements, review and act upon all submittals and applications of the Buyer and will cooperate with the efforts of Buyer to secure the granting of any permit, license, or other approval required to allow the construction of the Improvements. ARTICLE III. ACQUISITION OF PROPERTY; CONVEYANCE TO BUYER Section 3.1 Purchase of Property by Buyer. The Buyer has, or will utilize its best efforts to enter into a binding agreement to purchase the Property. Upon determination by the HRA that Buyer has entered into a binding purchase agreement for the purchase of the Property, the HRA will deliver to Buyer the Note described in Section 5.1. Section 3.2 Closin Closing must take place on or before February 23, 2009, or such other date as may be agreed to by the Buyer and HRA in writing. At Closing, the Buyer will provide the HRA with a mortgage in recordable form (and pay for the cost of recording). The mortgage will be a first lien on the Property and will act as security for repayment of any of the redevelopment credit advanced to the Buyer in the event that construction of the Improvements is not completed on or before the date specified in Section 4.3. The Mortgage will be in substantially the form of the mortgage shown on the attached Exhibit C. 4 5- ARTICLE IV. CONSTRUCTION OF IMPROVEMENTS Section 4.1. Construction of Improvements. The Buyer shall construct the Improvements on the Property in accordance with the Construction Plans, shall meet or exceed the Minimum Market Value specified in Section l.l, and shall maintain, preserve and keep the Improvements in good repair and condition. Section 4.2. Building Plans. No building permit will be issued by the City unless the building plans are in conformity with the Construction Plans, with the Buyer's Minimum Market Value, this Agreement, including the Housing Design and Site Development Criteria contained in Exhibit B, and all local, state and federal regulations.. The HRA shall, within 25 days of receipt of Construction Plans submitted in application for a building permit, review such Construction Plans to determine whether the foregoing requirements have been met. If the HRA determines such Construction Plans to be deficient, it shall notify the Buyer in writing stating the deficiencies and the. steps necessary for correction. Issuance of the building permit by the City shall be a conclusive determination that the Construction Plans have been approved and shall satisfy the provisions of this Section 4.2. Section 4.3 Schedule of Construction. Subject to Unavoidable Delays, construction of the Improvements shall be completed prior to January 21, 2010. All construction shall be in conformity with the approved Construction Plans. Periodically during construction the Buyer shall make reports in such detail as may reasonably be requested by the HRA concerning the actual progress of construction. If at any time prior to completion of construction the HRA has cause to believe that the Buyer will be unable to complete construction of the Improvements in the time permitted by this Section 4.3, it may notify the Buyer and demand assurances from the Buyer regarding the Buyer's construction schedule. If such assurances are not forthcoming or are deemed by the HRA at its sole discretion to be inadequate, the HRA may declare an Event of Default and may avail itself of any of the remedies specific in Section 8.2 of this Agreement. Section 4.4 Certificate of Completion. Promptly after notification by the Buyer of completion of construction of the Improvements, the HRA shall inspect the construction to determine whether the Improvements have been completed in accordance with the Construction Plans and the terms of this Agreement, including the date of the completion thereof. In the event that the HRA is satisfied with the construction, the HRA shall furnish the Buyer with a Certificate of Completion in the form attached. hereto as Exhibit A. Such certification by the HRA shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to the obligation of the Buyer to construct the Improvements. Issunace of the Certificate of Completion shall also serve as a satisfaction of any obligation of Buyer under the Note and Mortgage. If the HRA shall refuse or fail to provide certification in accordance with the provisions of this Section 4.4, the HRA shall within 15 days of such notification provide the Buyer with a written statement, indicating in adequate detail in what respects the Buyer has failed to complete the Improvements in accordance with the provisions of this Agreement necessary, in the opinion of the HRA, for the Buyer to take or perform in order to obtain such certification. 5 5- ~ Section 4.5 Failure to Construct. In the event that construction of the Improvements is not completed as provided in Section 4.3 of this Agreement, an Event of Default shall be deemed to have occurred, and the HRA may proceed with its Remedies on Default under this Agreement. ARTICLE V. REDEVELOPMENT CREDIT Section 5.1 Issuance of the Note. As consideration for Buyer's covenant to construct the Improvements, and subject to all of the conditions of this Agreement, the HRA agrees to provide the Buyer with a Redevelopment Credit in the amount of $70,000. Upon the Buyer providing the HRA with evidence that Buyer has entered into a purchase agreement for the purchase of the Property, the HRA will deliver to Buyer a promissory note in substantially the form of the attached Exhibit C. Payment of the Redevelopment Credit will be exclusively subject to and in accordance with the terms of the Note as such are contained in the Note or described in this Agreement. Section 5.2 Note Terms. The terms of the Note will include the following: (a) Assuming the Buyer is in compliance with Buyer's obligations, the Note will. be payable in three installments. The first installment of $25,000 will be due and payable at Closing, the second installment of $25,000 will be due and payable not later than five days following the date a building permit for construction of the Improvements is issued, and the final installment of $20,000 on the date of the issuance of a Certificate of Completion showing frill completion of all of the Improvements including landscaping. (b) The Note will be cancelled if the Closing does not occur by the last date provided in Section 3.2; or if construction of the Improvements are not fully completed by the last date provided in Section 4.3. (c) The Note will not bear interest. (d) The Note may be canceled by the HRA in the event that the Buyer is in default of any of its obligations under this Agreement. (e) The Note may not be assigned or pledged unless the proposed recipient certifies to the HRA that it is aware of and accepts to the conditions of the Note governing payment. (f) The Note'will provide for repayment of the any Development Credit payments paid to Buyer under the Note in the event that the Buyer fails to meet the time requirements of Sections 3.2 and 4.3. Such repayment obligation will be secured by a mortgage in substantially the form shown in Exhibit C which will be delivered by Buyer to the HRA at Closing. Unless the HRA agrees otherwise in accordance with Section 6.3, the Mortgage will be a first lien on the Property. 6 ~- Section 5.3 Payments Under the Note. On the date payments are due under the Note, the HRA will make such payments by delivering the amount due to either the lending institution providing financing for construction of the Improvements, or the title company servicing the construction loan. Such lending institution or title company may then use the delivered funds to make payment to any contractor or materialman for work or materials actually furnished in connection with the Improvements. In the event that no lending institution or title company is willing to serve in that capacity, the HRA shall disburse the payments, when due, in any manner which in its reasonable judgment will assure-that the funds will be expended for construction of the Improvements. ARTICLE VI. FINANCING Section 6.1 Financing. Within 15 days of the date of execution of this Agreement, the Buyer shall submit to the HRA evidence of financing for the Improvements in compliance with the provisions of Section 2.1(b) of this Agreement. If the HRA finds that the financing is adequate in amount to provide for the construction of the Improvements, the HRA shall notify the Buyer of its, approval. If the HRA rejects the evidence of financing as inadequate, the Buyer shall have 30 days or such additional period of time as the Buyer may reasonably require from the date of such notification to submit evidence of financing satisfactory to the HRA. If the Buyer fails to submit such evidence or fails to use due diligence in pursuing financing, the HRA may terminate this Agreement and both parties shall be released from any further obligation or liability hereunder, except for the HRA's remedies pursuant to Section 4.5 of this Agreement. Section 6.2 Copy of Notice of Default to Lender. Whenever the HRA shall deliver any notice or demand to the Buyer with respect to any Event of Default by the Buyer in its obligations or covenants under this Agreement, the HRA shall at the same time forward a copy of such notice or demand to each Holder of any Mortgage authorized by the Agreement at the last address of such Holder shown in the records of the HRA. Section 6.3 Subordination. In order to facilitate obtaining financing for the construction of the Improvements by the Buyer, the HRA shall agree to modify this Agreement, the Note or the Mortgage in the manner and to the extent the HRA deems reasonable, upon request by the financial institution and the Buyer. ARTICLE VII. PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER Section 7.1 Representation as to Redevelopment. The Buyer represents and agrees that its undertakings pursuant to the Agreement, are for the purpose of development of the Property and not for speculation in land holding. The Buyer further recognizes that, m view of 7 ~~ the importance of the Development to the general welfare of Richfield and the substantial financing and other public aids that have been made available by the HRA for the purpose of making the Development possible, the qualification and identity of the Buyer are of particular concern to the HRA. The Buyer further recognizes that it is because of such qualifications and identity that the HRA is entering into this Agreement, and, in so doing, is further willing to rely on the representations and undertakings of the Buyer for the faithful performance of all undertakings and covenants agreed by the Buyer to be performed. Section 7.2 Prohibition Against Transfer of Property and Assignment of Agreement. For the reasons set out in Section 7.1 of this Agreement, the Buyer represents and agrees that prior to the issuance of the Certificate of Completion by the HRA: (a) Except only by way of security for, and only for the purpose of obtaining financing necessary to enable the Buyer or any successor in interest to the Property, or any part thereof, to perform its obligations with respect to the Development under this Agreement, and any other purpose authorized by this Agreement, the Buyer, except as so authorized, has not made or created, and that it will not make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust in respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval of the HRA. ARTICLE VIII. EVENTS OF DEFAULT Section 8.1 Events of Default Defined. The following shall be deemed Events of Default under this Agreement and the term shall mean, whenever it is used in this Agreement, unless the context otherwise provides, any one or more of the following events: (a) Failure by the Buyer to pay when due the payments required to be paid or secured under any provision of this Agreement; (b) Failure by the Buyer to observe and substantially perform any covenant, condition, obligation or agreement on its part to be observed or performed hereunder, including the time for such performance; (c) If the Buyer shall admit in writing its inability to pay its debts generally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of its creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial part of the Property; (d) If the Buyer, on a petition in bankruptcy filed against ii, be adjudicated as bankrupt, or a court of competent jurisdiction shall enter an order of decree appointing, without the consent of the Buyer, a receiver of the Buyer or of the whole or substantially all of its property, or approve a petition filed against the Buyer seeking reorganization or arrangement of the Buyer under the federal bankruptcy laws, and such adjudication, order or decree shall not be vacated or set aside or stayed within 60 days from the date. of entry thereof; or 8 5- ~ ~ (e) If the Development is in default under any Mortgage and has not entered into a work-out agreement with the Mortgagee. Section 8.2 Remedies on Default. Whenever any Event of Default occurs, the HRA may, in addition to any other remedies or rights given the HRA under this Agreement, take any one or more of the following actions following written notice by the HRA to the Buyer as provided in Section 9.5 of this Agreement: (a) suspend its performance under this Agreement until it receives assurances from the Buyer, deemed reasonably adequate by the HRA, that the Buyer will cure its default and continue its performance under this Agreement; (b) cancel or rescind this Agreement; (c) cancel or rescind the Note; (d) foreclose on the Mortgage; (e) withhold the Certificate of Completion; or (f) take whatever action at law or in equity may appear necessary or desirable to the HRA to enforce performance and observance of any obligation, agreement, or covenant of the Buyer under this Agreement; provided, however, that any exercise by the HRA of its rights or remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid or limit in any way (a) the lien of any Mortgage authorized by this Agreement and (b) any rights or interest provided in this Agreement for the protection of the Holders of a Mortgage; and provided further that should any Mortgagee succeed by foreclosure of the Mortgage or deed in lieu thereof to the Buyer's interest in the Property, it shall, notwithstanding the foregoing, be obligated to perform the obligations of the Buyer under this Agreement to the extent that the same have not therefore been performed by the Buyer. Section 8.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the HRA is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the HRA or the Buyer to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article VIII. Section 8.4 No Additional Waiver Implied by One Waiver. In the event of the occurrence of any Event of Default by either party, which Event of Default is thereafter waived by the other party, such waiver. shall be limited to the particular Event of Default so waived and shall not be deemed to waive any other concurrent, previous or subsequent Event of Default. 9 ~" ~ 1 ARTICLE IX. ADDITIONAL PROVISIONS Section 9.1 Conflict of Interests; Representatives Not Individually Liable. No HRA officer who is authorized to take part in any manner in making this Agreement in his or her official capacity shall voluntarily have a personal financial interest in this Agreement or benefit financially there from. No member, official, or employee of the HRA shall be personally liable to the Buyer, or any successor in interest, for any Event of Default by the HRA or for any- amount which may become due to the Buyer or successor or on any obligations under the terms of this Agreement. Section 9.2 Non-Discrimination. The provisions of Minnesota Statutes Section 181.59, which relate to civil rights and non-discrimination, and any affirmative action. program of the City shall be considered a part of this Agreement and binding on the Buyer as though fully set forth herein. Section 9.3 Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt requested or delivered personally: (a) As to the HRA: Richfield HRA Executive Director 6700 Portland Avenue, South Richfield, MN 55423 (b) As to the Buyer: Eric Blad 1717 Nokomis Court Minneapolis, MN 55417 or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section 9.3. Section 9.4 Counterparts. This Agreement may be simultaneously executed in any number of counterparts, all of which shall constitute one and the same instrument. • 10 5- i a IN WITNESS WHEREOF, the HRA has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Buyer has caused this Agreement to be duly executed as of the day and year first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA. By Its Chairperson By lts Executive Director Buyer, - ~.~- /~ • • 11 ~~~3 STATE OF MINNESOTA ) SS COUNTY OF HENNEPIN ) • ~~ The foregoing instrument was acknowledged before me this day of January, 2009, by Suzanne M. Sandahl, the Chairperson of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA), a public body corporate and politic under the laws of Minnesota, on behalf of the HRA. Notary Public STATE OF MINNESOTA ) SS COUNTY OF HENNEPIN) The foregoing instrument was acknowledged before me this day of January, 2009, by Steven L. Devich, the Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA), a public body corporate and politic under the laws of Minnesota, on behalf of the HRA. Notary Public STATE OF MINNESOTA ) SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ~ ~J~` January, 2009, by Eric Blad, a single y~ ~ n ~~ ,s,ry'~~ S H PARTENHEIMER '°'~' ~~` N7Ti~4YPUBI.IC-MINNESOTA ~~; -:.~,n;G~'~ ?w ";©mmission Expires Jan.31, 2013 ~' - ~~. . Notary Public day of 12 ~~ ~~ EXHIBIT A FORM OF CERTIFICATE OF COMPLETION The undersigned hereby certifies that ,has fully and completely complied with its obligations under Article IV of that document entitled "Contract for Private Development", between the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota and dated , filed as Document No. with respect to the construction of the approved construction plans at ,legally described as and is released and forever discharged from its obligations to construct under such above-referenced Article.. DATED: By: Its: ® By: Its: STATE OF MINNESOTA ) SS COUNTY OF HENNEPIN ) THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY RICHFIELD Chairperson Executive Director The foregoing instrument was acknowledged before me this day of 20_, by and the Chairperson and Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota on behalf of the public body corporate and politic. Notary Public This instrument was drafted by: City of Richfield 6700 Portland Avenue S. Richfield, Minnesota 55423 Telephone: 612-861-9760 • A-1 ~-(S EXHIBIT B HOUSING DESIGN AND SITE DEVELOPMENT CRITERIA Siding materials, exterior facade presentation, roof, window, siding and. building line variability, finished landscape, interior space function and use are all important considerations. The development of all sites shall meet the development objectives listed below. The guidelines were created to ensure that the homes built on the identified lots blend in with the surrounding neighborhood and respond to specific concerns of the HRA. 1. General: a. The home shall be single-family, owner occupied. b. The value of the new home must meet or exceed the value specified for the Development in the Contract for Private Development. 2. Site Standards: a. The entire grounds shall be finish landscaped to be aesthetically pleasing in all seasons. Land forms and plant materials shall be used to define the site and neatly blend with • adjoining property. b. Utility meters shall be screened from street view. c. Site drainage shall be accommodated on the site so that water is directed away from the new home and the neighboring properties. Neighboring properties should not be disturbed to create drainage swales. Construction and the finished structure must improve or not have a detrimental impact on storm water drainage patterns in the neighborhood. d. Existing trees shall be preserved as much as possible. Care should be taken to preserve existing root systems. A tree wrap with board reinforcement shall be used on trees directly adjacent to active grading and construction areas. e. The construction site, neighboring property and adjacent public street and sidewalk shall be kept free of construction debris at all times. f. Air conditioning units must be located in the rear yard of the house. g. Egress window area well foundations must meet side setback requirements (a minimum of 5' from the property line), or be located in the rear yard of the house. • B-l ~~ ( ~ h. Under no circumstance during the construction period shall construction workers, construction equipment or construction materials enter, disturb, or damage neighboring properties. The HRA will solely determine whether a violation has occurred. A penalty of $50 per day will be assessed and drawn from the Letter of Credit after written notice of violation and a ten (10) day period for correction has been provided the Builder. Alternately, the Buyer may enter into a written agreement with the affected adjacent property owner(s) during this ten (10) day period. The agreement must describe. the details of correction and repair which the builder will make at a specified alternate date during construction completion. The Buyer will be responsible for the cost of corrections and repairs determined necessary by the affected adjacent parties. Where disputes occur, the Buyer agrees to participate in mediation services to facilitate problem resolution. 3. Building Standards: a. A minimum of three completed bedrooms is required. b. A minimum of one full completed bath and aroughed-in 3/a bath is required. A two car garage, attached or detached, must be provided on the site. d. Exterior materials (siding, soffit, doors and windows) should be low maintenance. Aluminum and vinyl are preferred. Natural cedar lap is acceptable if properly stained or painted. Hardboard panels or hardboard lap siding are not acceptable. • e. Unit height and mass of the new home must be compatible with the scale of the surrounding neighborhood. f. All building plans must have been prepared in consultation with an architect or qualified draftsperson. All requirements by the Building Inspections Division must be met by the Buyer. g. A full basement shall be provided in the house unless the selected design results in a split level type of construction. h. House design is a critical element of the program. The HR.A design review will include: The house building lines, window and door placement, and orientation to street for present a balanced and pleasing view from all sides. Windows that are double hung in style or appearance with muntins (window pane grids) are preferred, especially on the street-facing elevations. Garage door dominance in design must be minimized. i. All construction must conform to current sound attenuation building standards for properties located in 65-69 and 70-74 Ldn zones. • B-2 5-~~ EXHIBIT C PROMISSORY NOTE REDEVELOPMENT CREDIT NOTE $70,000 2009 The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate and politic (the "Maker"), for value received, hereby promises to pay to Eric Blad (the "Holder") the principal sum of seventy thousand and No/100 Dollars ($70,000), with no interest as hereinafter provided, in any coin or currency which at the time or times of payment is legal tender for the payment of private debts in the United States of America. The principal of this Note is payable as follows: b meaning is clearly indicated. 1. The principal amount of the Note is as provided for in that certain agreement by and between Maker and Holder entitled: Contract for Private Development dated (the "Contract") and shall bear no interest. Terms contained in this Note shall have the meanings given them in the Contract unless a different • 2. The Note shall be due and payable the Note will be payable in three installments. The first installment of $25,000 will be due and payable at Closing, the second installment of $25,000 will be due and payable not later than five days following the date a building permit for construction of the Improvements is issued, and the final installment of $20,000 on the date of the issuance of a Certificate of Completion showing full completion of all of the Improvements including landscaping. No amount shall be due or payable prior to those dates. 3. This Note will be cancelled if the Closing does not occur by the last date provided in Section 3.2 of the Contract; or if construction of the Improvements are not fully completed by the last date provided in Section 4.3 of the Contract. 4. This Note is given pursuant to the Contract. All of the agreements, conditions, covenants, provisions, and stipulations and remedies contained in the Contract are hereby made a part of this Note to the same extent and with the same force and effect as if they were fully set forth herein. It is agreed that time is of the essence of this Note. If a default by the Maker or the Holder occurs .under the Contract, then the Holder or Maker. may at its right and option, exercise any rights it may have under law or at equity, under the Agreement, and under the Note. 5. The remedies of the Maker or Holder as provided herein, and in the Contract, or any other instrument, shall be cumulative and concurrent and may be pursued singly, successively, or together, and, at the sole discretion of the Maker or Holder, may be exercised as often as occasion therefore shall occur; and the failure to exercise any such right or remedy shall i in no event be construed as a waiver or release thereof. 5-~~ • The Maker or Holder shall not be deemed, by any act of omission or commission, to have waived any of its rights or remedies hereunder unless such waiver is in writing and signed by the Maker or Holder and then only to the extent specifically set forth in the writing. A waiver with reference to one event shall not be construed as continuing or as a bar to or waiver of any right or remedy as to a subsequent event. This Note may not be amended, modified, or changed except only by an instrument in writing signed by the party against whom enforcement of any such amendment, modifications, or change is sought. 6. This Note shall be governed by and construed in accordance with the laws of the state of Minnesota without regard to its conflict of laws provisions. Any disputes, controversies, or claims arising out of this Note shall be heard in the state or federal courts of Minnesota, and all parties to this Note waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise 7. Holder may not assign, transfer or pledge this Note without the prior written consent of the Maker. Maker may condition consent on obtaining a certification from the proposed assignee, transferee or pledgee acknowledging and agreeing to Maker's rights to cancel the Note in accordance with the terms of the Note and the Contract. 8. IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts, and things required to exist, happen, and be performed precedent to or in the issuance of this Note do exist, • have happened, and have been performed in regular and due form as required by law. 9. Any Development Credit payments paid to Buyer under the Note will be repaid to the HRA in the event that the Buyer fails to meet the time requirements of Sections 3.2 and 4.3 of the Contract. Such repayment obligation will be secured by a mortgage in substantially the form shown in Exhibit C of the Contract which will be executed and delivered by Buyer to the HRA at Closing. Unless the HRA agrees otherwise in accordance with Section 6.3, the Mortgage will be a first lien on the Property. IN WITNESS WHEREOF, the Maker has caused this Note to be duly executed as of the day of , 2009 • 4 ~- 1 l THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA By Its Chairperson By Its Executive Director Buyer i~!~ STATE OF MINNESOTA ) SS COUNTY OF HENNEPIN) The foregoing instrument was acknowledged before me this day of January, 2009, by .Suzanne M. Sandahl, the Chairperson of the I Iousing and Redevelopment Authority in • and for the City of Richfield, Minnesota (HRA), a public body corporate and politic under the laws of Minnesota, on behalf of the HRA. Notary Public STATE OF MINNESOTA ) SS COUNTY OF HENEPIN The foregoing instrument was acknowledged before me this day of January, 2009, by Steven L. Devich, the Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA), a public body corporate and politic under the laws of Minnesota, on behalf of the HRA. Notary Public • 5 5 -a o STATE OF MINNESOTA ) SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ~~/ day of January, 2009, by Eric Blad, a single person. v ~~~~~ Notary Public ~~. KIRSrEt~J S H PARTENHEIMER NOiht?Y PUBLIC-MINNESOTA My Commission Expires Jan. 31, 2013 's n,n 1/ ,1 u • 6 5-~ I • MORTGAGE This Indenture made this day of January, 2009, between Eric Blad, Mortgagor, and THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA, a Minnesota public body corporate and politic under the laws of the State of Minnesota, Mortgagee. Witnesseth: That the said Mortgagor, in consideration of the sum of One ($1.00) Dollar and other good, valuable and sufficient consideration, the receipt whereof is hereby acknowledged, does hereby Grant, Bargain, Sell, and Convey unto the. said Mortgagee, its successors and assigns, Forever, all the tracts or parcels of land lying and being in the County of Hennepin and State of Minnesota, described as follows, to-wit: The separate tracts and parcels of land described in the attached Exhibit A. (The "Property") To Have and to Hold the Same, Together with the hereditaments and appurtenances thereto belonging to the said Mortgagee, its successors and assigns, forever. And the said Mortgagor, for itself, and its successors and assigns, does covenant with the said Mortgagee, its successors and assigns, as follows: That it is lawfully seized of said premises and has good right to sell and convey the same; that the same are free from all incumbrances, save and except reservations, restrictions • and easements of record; that the Mortgagee, its successors and assigns, shall quietly enjoy and possess the same; and that the Mortgagor will Warrant and Defend the title to the same against all lawful claims not hereinbefore specifically excepted. Provided, Nevertheless, That if said Mortgagor, its successors and assigns, shall keep and perform each and every one of its obligations with respect to completion of construction of the Improvements to be constructed by Mortgagor under and pursuant to that certain Contract for Private development dated as of (the "Contract"), made and entered into between Mortgagor and Mortgagee, and shall keep .and perform all the covenants and agreements herein contained, then this deed to be null and void, and to be released at the Mortgagor's expense. This Mortgage secures a principal debt in the amount of $70,000 payable by Mortgagor to Mortgagee under the terms of the Contract, and amendments thereto, between Mortgagor and Mortgagee. And the Mortgagor, for itself, and its successors and assigns, does hereby covenant and agree with the Mortgagee, its successors and assigns, to perform its obligations as above specified, to pay all taxes and assessments now due or that may hereafter become liens against said premises at least ten (10) days before penalty attaches thereto; to pay, when due, both principal and interest of all prior liens or incumbrances, and to keep said premises free and clear of all other liens or incumbrances; to commit or permit no waste on said premises and to keep them in good repair; to complete forthwith any improvements which may hereafter be under course of construction thereon, and to • pay any other expenses and attorneys' fees incurred by said Mortgagee, its successors or assigns, by reason of litigation with any third party for the protection of the lien of this Mortgage. 7 ~~~ That Mortgagor, does further covenant and agree that if any lien for labor, skill or material shall be filed for record during the life of this Mortgage, upon or against the premises hereby mortgaged, the said Mortgagor will, within thirty (30) days after the date of its filing for record, either pay off the said lien and secure its satisfaction of record, or will protect the Mortgagee against any loss or damage growing out of its enforcement, by furnishing a bond for the same amount in the form and with the sureties to be approved by the Mortgagee. In case of failure to pay said taxes and assessments, prior liens or incumbrances, expenses and attorneys' fees as above specified, or to insure said buildings and deliver the policies as aforesaid, the Mortgagee, its successors or assigns, may pay such taxes, assessments, prior liens, expenses and attorneys' fees and interest thereon, or effect such insurance, and the sums so paid shall bear interest at the highest rate permitted by law from the date of such payment, shall be impressed as an additional lien upon said premises, and be immediately due and payable from the Mortgagor, its successors or assigns, to said Mortgagee, it successors or assigns, and this Mortgage shall from date thereof secure the repayment of such advance with interest. In case of default in any of the foregoing covenants, the Mortgagor confers upon the Mortgagee the option of declaring a default and hereby authorizes and empowers said Mortgagee, its successors and assigns, to foreclose this Mortgage by judicial proceedings or to sell said premises at public auction and convey the same to the purchaser in fee simple in accordance with the statute, and out of the money arising from such sail to retain all sums secured hereby, with interest and all legal costs and charges of such foreclosure and the maximum attorneys' fee permitted by law, which costs, charges and fees the Mortgagor herein agrees to pay. In Testimony Whereof, The said Mortgagor has hereunto set its hand the day and year first above written. ~ ~ ~~ Eric Blad r~ U ~ -~. 3 STATE OF MINNESOTA COUNTY OF HENNEPIN ~- The foregoing instrument was acknowledged before me this ~ 3 day of January, 2009, by Eric Blad, a single person. .,~,„w,.~v~~;r~..~ ' ~. ~ Notary Public ~.., ~±~,~; `~~r~ S H PARTENHEIMER ~`;~- NrT:.HY PUBLIC-MINNESOTA . ?~ My G:,~?~mission Expires Jan. 31, 2013 • .r , Ah4 City of Richfield 6700 Portland Avenue S. Richfield, Minnesota 55423 Telephone: 612-861-9760 • l~ 9 ~-a~ EXHIBIT A LEGAL DESCRIPTION THE PART OF LUT 15, SABIN LAKE HARRIET GARDEN LOTS, LYING SOUTH OF A LINE RUNNING FROM A POINT IN THE WEST LINE OF SAID LOT DISTANT 164.3 FEET SOUTH FROM THE NORTHWEST CORNER THEREOF TO A POINT IN THE EAST LINE OF SAID LOT DISTANT 164.2 FEET SOUTH FROM THE NORTHEAST CORNER THEREOF, EXCEPT THE WEST 62 FEET THEREOF, HENNEPIN COUNTY, MINNESOTA. • • C-1 ~-~s EXHIBIT D LIST OF CONSTRUCTION PLAN DOCUMENTS • Contract for Private Development, fully executed • Building Plans, approved by the HRA for design considerations and approved by the Building Official for construction considerations • Approved Site Plan • Landscape Plan • Purchase Agreement for sale of Property from Buyer to Homeowner • • D-1 5-a~ • • da ., a r- ~~ a A= ( ~ Y e Yom ~' , ~ • ~ , ' ~ `~ Y 1 "~' ~' ~ -..s ~ ~r~~r .µ sk ''A ~~: ~~ r K ~.' . '"' ll ~ ~ . . 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' ~ ` ~ I ~~ ~ ~~ • • C, • 5-31 ,~'./ ~ ^ ^ M Q C'~ A 2 a a 5 L l~ ~~ ~° ^ JI , ~ 4 gsdM1 4 ~~ ~; \ ~r l . \ -1-- ~~ 7 ` -~ ~\ a u~ ~ ~ ~ ~ ~ z N 7 ~! i n ~ ~ . ~ ~ ~ a o~ ` 0 u ~ ~ L ' a ,~ , ~ ri ; 4 ~~ F x• U S a n ~ ` ~ ~ ~ n e Y _.. i.~ 7 ~ ~ ~ a -?~ o 7 ~ C ~ V 1, ~~ ~ .4 I F •N P J ~~) ~ ~ j d v J E e, ~ ~ A ~ ~ s s ~ ~ 9 N ~ ~; ,; i 3 <I o~iT ~ ~ ~ ~ ( ~ I c \ u Z i~\ d ~. ~ ,My 4 . i~~ I ~ ~J ~ N .> r r sz51 r• a <~ ,,e~l•2 ,.v.ts a ~ ~, h 5v a9 I ~_~ s J ~ '9 ~ 5 ja ~ on ~~9 a ~ j ~ yJ 94N Q ~ ~Q> ~ ~~} r , G w y r u = ~ •1 'S 4C °~ m ~i .~/,I;~ • • 533 , _....~.. ~ ff~E~F~~MASE A~1'~EEI~ENT x~erti~~srean This form approved by the Minnesota Association of REALTQRS~?, • which disclaims any liability aris(ng out of use or m(suse of this form. 2007 Minnesota Association of REALTORS(e~, Edina, MN • 1. Date _ December 1?, 2x08 -- - 2. Page 1 of 3. RECEIVED OF Eric M. S].ad 4. --__..._~_ 5. .the sum of one Thousana Dollars {~ i, ooo. 00 ) 6. by Q CHEGl~ ^ GASH ^ !VOTE as earnest rrtoney to be deposited .upon acceptance of .Purchase ---(Check ong.)---...---..._ 7. Agreement by ail parties, on ar before the third business c3ay aft+t=r acceptae~ce, in the trust account of listing 8. broker, unless otherwise agreed to in writing, lout to be returned to Buyer if Purchase Agreement is not accepted s. i}y seller. Said earnest money is part payment for the purchase of the property located at: 40. Street Address: 2830 West 70 1/2 st:. 11. City Of Richfield ~ Gaunty a# Hennepin 12. State of Minnesota, legally described as Legal to aon£orsn to Pxr~ # 32028247.20053 ' 13. 14. , 15. (nctuding all fixtures an the following property, i# any, ownEd b~~ Seller and used and located on said property, 16. including but not ls~r7itsd to garden bulbs, plants, shrubs and trees; storm sash, storm doors, screens and awnings; 17. window shades, blinris, traverse and curtain and drapery rods; attached lighting figures and bulbs; piurnbing 18. fixtures, water heater, heating plants {=~r~itti zany burners, nan•~fuef Enka, stcikars and other equipment used in connection therewith}, bu(!t-in air-conditioning equipment, electronic air filter, water softener ^ (~WiVI~D ^ REWTED ^ NONE, .~....._..._~___{Check one.J--------- 2t3. bullion humidifier and dehumidifier, liquid #uel tank(s) ^ 01f;fPt1=D ^ REiVTED ^ NONE and controls {if the .__..____.______.___{Check one.)-------~-._._......_ 21. property of Seller), sump pump; attached television antenna, cable TV }acl<s and wiring; BUILT-iNS: dishwashers, 22. garbage disposals, trash compactors, ovens, cools-top stones, microwave ovens, hood fans, intercoms; 23. ATTACHED: carpeting; mirrors; garage door openers and a!! controls; smoke detectors; fireplace screens, doors and 24. heatitators; AND the following persona( property: 25. 26. ~.._. _ __ ______ _. ) 27. a!l of which property Seiler has this day agreed to sell to B+ayer for suns of {~ $5?5t%0.00 28. iQinety-3evan Thousand Five Hundred ._ Dollars, 29. which Buyer agrees to pay in the following mariner: 30. 1. Cash of at least 25.00a percent (°!°} of the sale price, which 'sndur}es the eamest money; Pl_t~S 31. 2. Financing, the total amount secured against this property ,A fund this purchase, not to exceed ~5 • raoo 32. percent (°to) of the sale price. 33. Such financing shall be (check one} x^ a first mortgage; ^ a contract far deed; or ^ a first mortgage with 34, subordinate firaat3cing, as described in the attached fidclendum: 35. [x. ConverrtiorraP ^ 7~7 JPS ^ IJV/x ^ ~S51tiDl¢7ti'4ili ^ COTT$lc~C$ for geed ^ Other: ---(Check one.}- --- ~-- 36. The date of rlosing shall be u~ar~lary 2'7 , 2009 __ 37. This Purchase Agreement ^ IS Q IS lVC3T sub}ect to a Continge~acy Addendum for sale of Buyer's property. ----{Check one.)---_ {!f answer is !S, see attached Adderidttm.) (lf answer is iS N£~T, the cfasing of ;3uyer's property, if any, :nay still affect Buyer`s abiliti+ to obtain financing, if financing 0, is applicable.). Ed4M 7L50 Psonce Avcrtae Swniy Suite 3°0 Bdhm. A9N SS435 Phanc: (4S2) 806.9252 lzac: (452)4731 - ° I AS Eric $lazi ~ql Lbrkon PrcducW uri4h ZlpFonn'~ ~y RE farmst~tet, LLC 1CC70 FtRa~r B~IIe Road Ftasrdr, ?vSichigan AOD2(3 vnyur.zintcrm.cum U .] • ~' V lid ~~~~~~~~ AG~EL~UfE~3T r~aitey.emeaa ae3o w®St 7o ii2 st. 4'i. Address Richfield, MN 55A23 42. Page 2 Date Decembez ~.~, 2aos 43. This Purchase Agreement ^ IS ~ IS f~If?T subject to cance#lation of a previous#y wri#ten purchase agreement --(Check one.)-- 44•. .dated :_._ , 45. (if answer is tS, said cance#lation sha## be obtained no Inter than ~ if 46. said cance#lation is not obta#ned by said date, this Purchase Agreement is canceled. Buyer and Setter sha[# immediately 47. sign a CaneeJJafiort of Purchase AgreeJne!?f confirming said cancellation and direct#ng ail earnest money paid 48. hereunder to be refunded to Buyer.) 49. Buyer has been made aware of the availability of property inspections. Buyer ^ Elects ^x ~}eclines to have a --------(Check one.)-_---- 50. property inspection performed at Buyer's expense. 51. This Purchase Agreement ^ IS ~ lS NC}T subject to an lnspect~n Crantingency Addondum. ---{Check ona_}-_. _ _ 52. {if answer is ES, see attached Addertdr.~m.) 53. OEEDJNtARKETaBLE TITLE: Upon perFormance by Buyer, Seller shah deliver a 54. ^x Warranty ©eecl or ^ Other: , _ __.,_~._ E7eed joined in by spouse, if any, conveying 55. marketable title, subject to 56. (a) bu#lding and zoning #aws, ordinances, and state and federal regulations; 57. {b) restrict',ons re#ating to use or improvement of the property without effective forfeiture provis#ans; 58. (c) reservation of any mineral rights by the State of cUlir:nesota; 59. (d} utility and drainage easements which dQ notinterfere with existing improvements; • (e} rights of teasai7ts as ffotfx~ws (unless spec#fied, not subject to tenancies}; 61. -- -- 62. {f} others (must tie speci€ied in writing}: 63. s4. 65. .~._______ _ _ 66. __ 67 and 68. ^ BUYER SI-IaLL 1'aY [x] SELLEiFt SNaI+L 1=aY on date of closing any .deferred real estate taxes {e.g., Green ,....__ {Check one. j------- ---- 69. Acres) or specia# assessments, payment of which is required as a result a# the c#osing of th#s sale. 7a ^ Buv~l a~~ SELLER ~1•~ALI~ ~~O~aTE as O~ r1~E ~aT~ €~~ cf C.tSING CxO SELLER srfai_L I~aY oN _ _ _ ---- -(check one. j _._._. .,~-- 7'l. DATE OF CL®S19d~G ai# installments of special assessments certified for payment, with the neat es#ate taxes due and 72. payable in ttie year of closing. 73. ^ BUYER ad~aLL aSSUARE [] SELLIaR SFIa.LL PAY on date of c#osing a#l other special assessments levied as ----~--w(Cheek one.) - 74. of the date of this Purchase Agreement. 75. ^ BUYER SiiaLL ASSUI#~E ~ SEt.LEI"~ 5l-iAt"L PRO`llt~E FOR #~aYlt4El~T OF special assessments pending as _._._........-_..--•----.{check ans.}.- -----~----- 76. of the date of this Purchase Agreement for is'nprovements that have been ordered by any assessing authorities. (Seller's provision. for payiraent shall be by payment into escrow of tuvo {2) #imes the estimated amount of the assessments or #ess, as required by Buyer's ler~der.) 79. Buyer shall pay any unpaid special assessments payable in the year following clos#ng and thereafter, the payment of 80. which is not otherwise herein provided. MN:PA•2 (8107} Produced wlrit Z1oFOrrt:TM Dy RE FomtsNet, ttc tao7o F"~en naii~ Roed. i=racer, Michigan 4Pd2& wvnv.zlpform.com Eric Eslad ~r~~ ~~€iF$~i-tA~;~ ~~1Zi~~~ENT R~ae99gra®~e 2$30 West 70 2/2 St. 81. Address Richfield ~ irIi3 55423 $2. Page 3 Bate Deoemb~z I7, 2008 83. As of the date of this Purchase Ac,~°reement, Seller represents That SQiler ^ ~fAS ~x HAS IV~T received a notice ----------(Check nne.)-,-..__.__ 84. regarding any new improvement pro}act from any assessing authorities, the costs of which project may be assessed 85. against the property. Any such notice received by Seiler after the date of this Purchase Agreement and before closing 86. shall be provided to Buyer immediately. If such notice is issued after the date of this Purchase Agreement and on 87. or before the date of closing, then the parties may agree "rn writing, on or before the date of closing, #o pay, Provide 88. #or the payment of or assume the special assessments. #n the absence of such agreement, either party may declare 89. this Purchase Agresrr.r~nt canceled by written notice to the other party, ar licensee rr:presenting or assisting the other 90. party, in which case this Purchase Agreement is canceled. if either party declares this Purchase Agreement canceled, 91. Buyer and Seller shall immediately sign a Cancetlafiorr of Purchase Agreemer7t canfirming said cancellation and 92. directing all earnest money paid hereunder to be refunded to Buyer. 93. Buyer shalt pay ~ PRORATED FROtyI DAY OF CLCtStNG ^ 12ths OF ~ ALL (~ N® real estate taxes due 94. and payable in the year 20 2009 _~ 95. Seller shall pay ~ PR>w?I~ATED 70 €t~lY QF CLQSING ^ ,_.,_.._._ 'l2ths 0i" [~ ALL [] Nt? real estate taxes due ....._...._~.,._..r___~~..............__........___---ICJk:-ct• owe 3-___~._ .............w_.,__.._..._.._~~__--,M-. 96. payable in the year 20 09~,_ . !f the Closing date is changed, the real estate taxes paid shall, if prorated, be adjusted 97. to the new closing date. 5eflerwarrants taxes due and payable#n the year 20ns stiatl be ~ FULL- ^ PART- ~ N4N- _______._...1Check one.)--~----------- 98. homestead ctassifrcatian. 99. tf part:- or ran-~SOrrseafierrd classifiication !s checked, Seiler agrees to pay Buyer at closing $ 100. toward the ran-homestead real estate taxes. Buyer agrees tc pay any remaining balance of non-homestead taxes 101. when they became due and' payable. Buyer shall pay real estate taxes duo and payable in the year following closing 902. and thereafter, the payment of which 'ss nr~t otherwise herein provided. )do representations are made concerning the 103. amount of subsequent real estate taxes. 104. POSSESS1t:3N. Seller shaft deliver possession faf the property no later than__,_,, i~ecia-ateiv after closing. 105. All interes#; unit owners' association dues; rents; and charges for city water, city sewer, electricity and natural gas shat[ 106. be prorated between the parties as of date of closing. Buyer shall pay Salter for remaining gallons of fuel oil or !!quid 907. petroleum gas an the day of closing, at the rate of the fast. fill by Seller. Seller agrees to remove ALL QEBRfS AND 108. ALL PERS©hIAL PR~£~ERTY ~;C3T 1!~€~LC>CfEk~ htFR'EIiV fr•on-s the property tsy possession date. 709. TITLE ANlO EStA~tt~3A`f'IL9N: Vlfithin a reasonable tirrie period after acceptance of this Purchase Agreement, Seller 110. shall provide onp of *,~:+? folic~rving titl€~ evid~;?~re r.n=.iar~s, at seller's setaction, which shall include proper searches 111. covering bankruptcies, state and fednrai judgment,, arc' liana, and levied and pending special assessments to Buyer 112. or Buyer's designated titt4 SPntice lrovider: 113. {1} A Co,~,lrtitn"ent fYr an c~wnat's policy cif tit12 "sns:~:ranc~ nn a crsrrent Aj TA form issued by an insurer licensed 114. to write title ins~!rance in Minnesota as selected by Buyer. Salter shaft be responsible for the title search and 115. exam costs related to the commitment. Buyer shat! be responsible for all additional costs related to the issuance 116. of the title insurance pobcy{ies} including but not limited to the premiums}, Buyer's name search and plat 197. drawing,. if any. Seller shall surrender a copy of any owner's title insurance policy and At>stract df Title, if in 118. Bailer's possession or control, for this property to Buyer or ~3uyer's designated title service provider. 119. {2} An Abstract of ¢ itle certified to date it Abstract Property or a Registered Property Abstract (RPA} certi~red to 120. date if Registered (Torrens} property. Seiler shall pay for the abstracting or i3l?A costs and surrender any 121. abstra~:,t for this propefij in Setter's possession or co;rtrof to Buyer or Bayer's designated title service provider. 122. [f propE~r#y is Abrstract anJ ratter dw~es net ha~~~: a,Y :0.b y.#ract of Title, ~ptian {1} wiPl r~,.rtomaticatly apply. 123. Salter shall use Seller's bast effaf~ts to provide rrtarketaute title by ttre date r;f closing. to the event Seller has not 124. provided marketable title 15y the fate ~.si` closing, Seller shall have an additional 30 days to make title marketable, or !n 125. the alternative, Buyer nay waive title defects- by vvritien notice to :'saber. !n addition tee the 30-day extension, Buyer 128. and Seller may, by mutual agreement, further extend the closing date. Lacking such extension, wither party may declare 127. this Purchase Agreement canceled by written notice to the other party, or licensee representing ar assisting the other 128. party, in which case this t~urchase Agreements is canceled. if either party declares this Purci3ase Agreement canceled, 129. Buyer and Seller shall immediately sign a Cartcett&rion of Purchase Agree,~rtet~t confirming Bald cancellation and 130. directing alt contest morrey paid hereunder to be eefunded to buyer. MN:PA-3 (8107) Produced wi.h Zirxam~'"R ~y RE FormsM1lel,14.f 1307E Fitreen 4,Aife i~na6, Fraser, fiAidtigen A8026 v~u.~!pform.r.~;:-n Eric 131ad • • ° J V~ ~u~.~~~~E .~~~~~1~EN$ 131. Page 4 132. SUi3DiYiSIfJit CF t.Ai~D: if tti#s sa#e constitutes or requ#res a subdivision of land owned by Seiler, Seler shat( pay 133. ail subdivision expenses and oiatain ail necessary govemmenta# approvals. Seiier warrants that the legal description 134. of the real property to be conveyed has been or shad be approved for recording as of the date of closing. Seiler warrants 135. that the buildings are or shall be constructed entirely within the boundary Gnes of the property. Seiier warrants tha# 136. there is a right of access to the property from a public right-c>f-vaay. These warrant#es sha## survive the. delivery of the 137. deed or contract for deed: 138. Seller warrants that prir?r to ttte closing, payment in #uif will have been made for all labor, materials, machinery, fixtures 139. or tools harnis"ett avi~hit~ fire 120 days immediate#y preceding the c!asir~e ii: coryt~ectiorr witty cons#ruct#4n, a#teratlon or i40. repair of any stru~.~ttlre c,si,: or improvement to, the property. 141. Selferwarrants that Se#ier has not received any notice from any governmental authority as to condemnafion proceedings, 142. or viatation of any #aw, ordinance or regulation. #f the propertyy is sttbaect to restrictive covenants, Selier warrants that 143. Seiler h2s nr_st rECeiveri ctny notice #rorn any person [tr authority as tE1 a breach of the covenants. Any such notices 144. received by Seller shall be provided to #3uyer immediately. 145. Seller agrees to a#iow reasc~nabie access tc~ the properly inr perforrnanCe of any surveys or inspections agreed to 146. herein. 147. RI3FC OF LASS: i# there is any {oss or damage to the property between the date hereof and the date of closing #or any 148. reason, including fire, vandalism, flood, earthquake or act of Ciod, the risk of loss shall be on Seiier. If the property 149. is destroyed or subs+~tally damaged before the c#osirag date, this i'urctrase Agreei~ent is caneeted, at Buyer's option, 160. by written t~oiice io Seiier or licensee representing or assisting Baiter. #;~ #3uyer cancels this Purchase Agreement, 151. Buyer and 5ei#er sha#i immediately sign a CarrCelfatian of Purchase Agreement confirming said cancellation and 152. directing ati earnest rnrrney paid hereunder to be rr~#unded to Buyer. TIME QF ESS>f=l~~E: ~'#me #s ov the essence in this i~tsrchase A.greernenf. . ENTIRE A~REE1iiiEN~': 'this Purchase Agreement, any attached exh#bits and any addenda or amendments signed 155. by the parties sha#I constitute the entire agreement between Setter and Buyer and supersedes any, other written or 156. oral agreement bet~reen Seller anti Buyer. 'his purchase Agreement can be rrrod#fied or canoefed only in writing 157. signed by Selier and Sayer or by operation cif #aw. Alf monetary surris .are deemed to be .united States Currency #or 158. purposes of tltiYS P~Irahase Agreement. i3uyer or Seiier rray be rr?quind to pay certain .closing :.osts, which may effectively 153. increase the cash auti~y at closing or reduce t'~r proceeds from fie sale. 160. ACCEi~T#ANCE: Tiy be binding, ti'ti5 I~urchase Agreement must be fu#ly executed by both parties and a copy must be 161. delivered. 162. Dial=At1L'C: if 8+,tyer defau#ts in any of the ag~¢rE,ents hereunder, Se#!er may terminate -this Purchase Agreement 163. under the provisions of ltlllN Statute 559.21. If either i3uyer or Selier defaults in any of the agreements hereunder csr 164. tftere exists an unfuiffiied condition afire+• the sate speci#ied for ~fuifiliment, either .party may cancel this Purchase 165. Agreement f.tndt=r fia1~i :3tat~,rte 558.2.17, uisb~.:i. ~ii?enever it iS prrvitled i;~:r~in thai tt°~is €'u<~t~ase Acreerner;t is 166. canceled, ~~aic' ianguagR sha#I be deerrrr:d a prtsvi~~ia~; al.ilf?r)i~in!~ a Leciaratz;rb' Caneeflation under i~t#v Statute 559.217, 167_ Subd. 4. 168. if this Purchase Agreerrr+snt is s tc~t canceled or terminated as provided hereunder, Buyer or Seiler may seek actual 169. damages for breach ul this Pt,rrchase Agrec~:rrierit or specific perec~rtnas'ir~e o{ this Purchase Agreement; and, as to 170. specific peil'r,rrnance, ;~it,~h a~;tion must be cc~rrorrier+~:ed within: six. rrnxiths after such r'~ht of action ar#se5. 171. WOTtirE REaaAI~L411Ad~ Pr"t:~'Dt~T~iR't' DiF~FEi~il;~l»~: iNl"Ci~i'd114ti IAN: 3n#rrrreati+ora regardina~ rile predatory offender 172. registry and persrans registered with the prs:datory rffender eegistry c~rrd,er i~iN Statrste 243.166 may be obtained 173.6y contacting tree tcacal lae~v ~:rtfor~:erraent c~f#ioes >!n tbr: ca~~°asn~tr;l€~~ ~n€bere tlxe property is Itocated or t;9e fiAinnesota 174. Department a~f D€,rreci.rkAns at X651$ 3G1~72tti7, ae #QOn~~ the 13elrartment of Dorrections web site at 175. www.cors.stat~x.n}n.~r:s. MPF:PA-4 (8/07} • Produced ~h ZlpFOtnt'" by RE Fotmstdet. LLC 1807G Fifteen Mite Road, l=racer, Michigan Q8G2ti vavnv.zioform.COm iAric $lad ~~~? >'~€~~~~~~~ ~~~~E~En~~ ~,~~~~.~~ 283'J West 7Q 1/2 St. 176. Address Richfield, Mist 55423 177. Page 5 Date Decem3~er i7 , 2008 178. ENVI~tC}NMENTAL CC7NClERNS: To the best of Ballet's lcnawledge, there are na hazardous substances or underground 179. storage tanks except herein noted: ~~~ b~av'er ~+~~-~-~- assume ari'Y' regv.ired. worts o~d~s:c's by the ci'~y of 180.12ichfield. __..._...._ __...._. _ ..- 181. --- 182. _. .._ _ ~.._._._ ...~ 183. _ ._..._~..__... __ 184. _...~~_..__. - - --._._--~-~-__ 188. _.._._.__.._--- __._._..._^__._._..~_-__~...~.._.._....-......_...._...._ 186. ___._.____~.____ ._~,___..._._..__ . ___.-_..._.__.. 187. _....,.,..._.....~._.- _- ,._.~_._ 188. 189. (Check appropriate boxes.) 190. SELLER WARRANTS THAT THE PROPERTY !S EITHER C}IRECTLY OR INf3lRECTLY CONNECTEC TO: 191. cITY SE~tE R C] YE,~a ~..1 Nei ~ clTY ~~TI*~ C~ YES ^ N~ 192. pRlVAT>= SEIAiER SY5TE64~ 193. SELLER CERTIFIES THAT SELLER ^ L7(}ES iX{ I:3C}E#S NOT KNOW OF A PRIVATE SEWER SYSTEM ON OR 194. SERVING THE 'PROPERTY. (I€ answer is iJOES, see Pnvafe Seaver System Disclosure Statement.) 195. PR~1iATE ~ii~~.L 198. SELLER CERTIFIES. THAT SELLER [] t}f~CS 0 t~4ES NOT KI~lOlN OF A WELL O!~ OR SERVIldG THE -----------!Check one }....,..........,_... 197. PROPERTY. (Ifi answer is ~74ES and wet! is Iacated on the property, see Wefl l~iselostfre Statement.) 198. THIS PURCHASE AGREEMENT ^ IS ®!S NqT SUBJECT TO A Pr;JVr~7"E SEWER AIVL? WEt1 fIVSPECTIOItf ------(rnecko:~.1--.--.- 199. CQNTIttfGElvCY A~D,t^IVUUM. (!t' answer is IS, see attached Addendum.) 202. ~lt~TICE 208. Mar~Carlscn Is [~ Seller`s Agent ~ Buyer's Agent^ Dual Agent ^} Faeil'ltator. (LICet1S':el .~._.._..........._._.__......«...._....._.....`...-(Chock ane.}-_.....~«....».___...~-____-.-.-.~.-..,.~.,-.- 204. Coz~~~se3.or_Rr~aZ.ty, Inc. ~..---(F2eal Estate Cg~dpany blame) 205. ``'-- 206. 207. TNiS ~'t~Zt ~~,t/ is ~j Seller's Agent C1 Buyer's Agent ^ Dual Agent ^ Facilitator. (1.icen32S) -----....,.------_~..----_..--..°.-_-7Cl~eck one.l._-.._-..__-_-,....,~.~ ....,.-.- :state CompanH Dame) I]C)ES NCt''T SATISFY ~IINNES4'~J4 S~'~iTUTt3RY AE~EI~C''i ~IiSC#.®St3RE REQUIREMENTS, MN:PA-5 {8107) • • °: produced with 2ipFormTM` bk #2E FormsNlet LI.C 18U7U Fifteen !Mile Road, Fraser, !Michigan 48426 _w_ww?plorm.c~.rT? Eric 81ad ~~8 ~uRC~ld.1~~ /ACI~~E~9iEr~fT r~~e~.~~ 2830 West 70 1/2 St;. 208. Address Richfield, MEI 55423 209. Page G Date __ Decc'xaber 17~ 2008 210. SELLER WARRANTS THAT CENTRAL AlR-CONDITIONING, HEATING, PLUMBING AND WIRING SYSTEMS USED 211. AND LOCATED ON SA{D PROPERTY SHALL Bi= IN WORKING ORDER ON DATE OF CLOSING, EXCEPT AS 212. NOTED IN TH#S PURCHASE AGREEMENT. 213. BUYER WAS TWI± l~#GWT TO A WALK»TWRt3U4~i~l REV'1EW aP TWE Pl4®Pl~RTY PR10R TQ CL~511VG TO 214. ESTABLiSW THAT TWE PR®PERTY [S IN SUBSTAI'dT#ALLY TWE SAME CC~~IDITiIJ#~ AS QP THE DATE Olr 215. TWI$ PfJRCNAS?~ AGREEME~9T. Z16. SUYER ^ iI~~S ~ HAS NC}T RECEIVED A SELLER'S F'ROl~ERTY UlSCLOSURE STATEMENT OR A 217. SELLER'S DISCLOSURE ALTERNATIVES C=ORM.. 218. BEIYER HAS RECl1VEQ TWE iNSPECT9C3N REI~gRTS, 1#= REOE~IRE13 BY MI.iNICIPALiTY. s~Et_i_IrR AGREES TC7 219. N©TIi~Y BUY>`S~ IMMEDIATELY #i`i UFPRITIA~C OE ANY :~IIBSTANT#'VE CWA~iGES PRAM ANY PRIOR 220. REPRESEAI'1"e~.Tlt2t~la FEI=t;~AR.I51i~1~ Tta~ ~R.r~~tWRT~_ 221. €N THE EVENT A SELLE'R'S DlSCLt~SURE ALTERNATIVES PORM IS USED IN THIS TRANSACTION, DISREGARa 222. LINES 223 THROUG#f 22E3. 223. BUYER ACKNOVvLEDG1=S THAT NO ORAL REt~REStNTA7IC3NS HA'dE BEEN tUtAIJC RC*GARD€NG POSS€BLE 224. PR013LEMS GF WAFER #N BASEMENT1" 01"~ DAMAGE GAUSED i3Y WATER ICE OR ICE BUILDUP ON ROOP OP 225. THE PROPER`Y, AN1~ BI~YER RELIES SOLELY CN THAT REGARD ON THE f+OLLOWING STATEMENT BY 226. SELLER. 227. SI=LEER ^ WAS ^ HA s ~iCS~' HAD A WET BASEMENT ANb ^ W.A s ^ IiAS NOT HAD RQOP, WALL OR ..w.....~.._.fCheck one 1 ^-._~.__._ ~ ---^^~-^^fY%heck onCJ-~-^.W..._.. 22$. CEILING DAMAGE CAUSED 43Y ~NATEI~ OP, 1CE 8(JILDUP. ._ ......______...._....~. F~%I;~dL ~t.C~E'i~fCY R>cpRESIrP#T:~TiflN 230. PLEASE CNECIC C)F~E CbF Ti•#E F'CtLLC9~§I1NG Sirt.ECT#t3~IS; 231.0 Dual Agency reprpser~tation t3CJE$ i1tC,7T apply in this transaction. Disregard tines 232-248. 232. ^ Dual Agency representation DG?IrS apply in this fransacticn. Corrpiete fhe disclr~sure in tines 233-24$. 233. Broker represents br~tF} the Seller{s} and the Buyer{s} of the property involved €n this transaction, which creates a 234. dual agency. 'Chic means that Broker and its salespersons owe fidurias~y duties to both Seller(s) and Buyer{s}. Because 235. the parties may have conflicting interests, Broker and ifis salespersons are prohibited from advocating exclusively for 236. either party. BroCcer cannof act as a dual agent in this transaction witPkout the consent of both Seller{s) and Buyer(s). 237. Seller{s} and Buyer{s) acknowledge that 238. (1} confidential information ccxrrmunicated to BrokQr which regards price, terms, or motivation to buy or sell wiq 239. remain coc~fidential unless SeliQrls) Car 13t.1y8r(S) in,in.ictS Broker it+. writing to disclose this information. Other 240. infarrrtatian wilt be shared' 241. {2) Broker and its salespersons will not represent the interest of either party to the detriment of the other; and 242. {3} within the limits of d~sal ag4nc,t, Broker and its salPSpersans will work diligently to facilitate the mechanics of 243. the sale. 244. With the knowledge ar:d ~inderstanding of the expianati~an above, SeilAr(s} and Buyer{s) authorize and instruct Broker 245. and 'Its sale5pers~' {t~ to act as du~+l agents in this transac:tiort. ~~ ,~` 24G. Se€ler r, _~_~_ Y ~ . ____ ~ra.c wi. E3l.aci ''dvflcne~ 39oane due ~.yo~~ag~ Coe'pne'~Q{oss rig tcs A'ttorneY-in-Fact 247. Seller ~~~:r~,~r,,;_'roALLADO~NOA _.,.^--- Buyer ~. ._ ~t Date _~._...._..._...._.._____._.------___.._......____........_..._.._.._~._ Df~t2 ..__..._...._..._................._...~._ MN:PA-& (8/07} PrCdliced with 2i~~Fnrm^' by Rr FocmSNeR, Lt.G 18070 Fifteen P~Aiih Road, Frsser, M"rGhi<,;~n d8o2t3 y,Mnh,,gi~farm,com Eric $Esd 5°3~ ~` ~' P~1F~~t~A~~ ~.G~E~~~~tT 2830 krest 7t7 2/2 St. >re~[A~-~~ ~tichfield, MN 55423 249. Address 250. Page 7 D2te _ December 17 , 2flQ8 251.OTHER: 252. 253. 254. 255.Other addenda may be attached which are made a part of this i~urchase Agreement. (Enter total number of pages of 256. this Purchas=~ :'~c.;-rem~:;t, including addenda, on Sine two {2} of page one; X1;.1 257.1, the owner of ate property, accept this Purchase S agree to purchase the properly for the price and on 258. Agreement and authorize the Sisting broScer to withdraw the tears and conditions set €orth above. 259. said property from the marScet, unless instructed !Slave rerrie~red a!1 pages of this Purchase 260. otherwise in writing.. Agr'ee~ent. 261.1 have revie~rerl all pages a# this Purchase Agreernes~t. 262. ^ !f checked, this f~!archase Agreerraent is suh~ect t€a - 263. attached De~car~Yeroffer ~r~cfenda~r~z. 264. X'~-~"`~,~,~__~_.__ _ Y ~~.ti~ ~,~~=~-~' 12/~"~/200$ (5e~ar's 9ignatare) ~(C}ate} (buyer's Signal+3re1 (Date) ~~;~urs+i'1lutuo Loan N3ortgage Corparatian ~~1~1~~ .~ ~ ~~~~I~~ ~t~~ic~c~'m a.i~iwoe flR 265. ~; ~,ri~~ i~. Blac3 (Seller's Printed Name) (~uyer3 i,rinted Na:tie) ~ sin le • 266. X _.....,.._.....w_.d..._ _ (Marital 5iatus} (Marital Status} 267. X __e_,~._.... ~ (Seiser's Signature) (Date) (t3uyer's Signature) {Date) 268. X ~ - (Seller's Printed dame) iSuy;:r's Printed Nanw} 2~9. ~ '~` (Marital Status} (:sNarital Status) a7a. i INAL AGCEP`TA~ld~.l DATE 271. 'i"Hlrs !S A LECsAL.LY B!N®iNC ~ON'd`€tADT ~E'~+.t~EEN 6~`/ER~S~ AVT.9 S1LLS~Si~(S}, 272. Iti ~~~ 5~~lt~i~ L1=GAL ~~ TAB A~~/IDE, ~ONS€tLT ~!~ Ar~PRt~PRiATf~ S~R43f~=fE~St©NAL. 273..1 AOKNC3li"~LE~3OE Tt~AT 1 HAYS: RECElVE10 ANI) HAVir HAf3 Ti-11r D!'PC}F2Tk~1~ITY Td REZf1E~ TI'f0= ARBlTR,4TlgN 274. DlSCLC3Si1F~~ RAfa RESOD~NTlAL Fi~RL PRQP~i~7TY t~R~~+ #~.~?,Tdi~id AGR~~'1UIirNTs ~'HlOS~{ IS AN C3PTlt3NAL, 275. VtJLUNTARY Atal2'EE&Uf1=i~f3' AtVCI 1.~.s N©T FART Ole Tf'!BS 1:'Ui~~1~ASlr a~GS~~EM~NT. 276. SELLEI2(S~ BE~~ER(Sj _..____ 277. SEL#..ER~S,~_ ~i.lYSwR( aj • MN:wA-~ ;s~a7) Produced witS~ Z.pFonn "'~' by :ZS FOrmsi`tet, LiC 13U7Q Fifteen Mtle goad, Fraser, iviichigar. ~attu26 yvwvr. zip o c,~m Eric Bl3d ~~~~ This farm approved by the Minnesota Association o€ REALTpRS~, or~~l47~.s~oca which disclaims any €iabtiity arising out of use ar misuse of this form. . ~ 2(306 Minnesota Assaciatiori of RE.AlTQRS~, Edtna, MN 1. Date December 17 2008 2. Page ~- 3. Addendum to Purchase Agreement l~stween patties, dated ~.____. Dcceirber 17 _ , 2008 ,pertaining ~, to the purchase and sale of the property at _ 2830 west 7c 1/2 sue. 5• ~ Richfield i~ _ 5542_-__._. fi. ©# SCLC}SU~~ r~~~t3#RED: Under Minnesota law, Sellers of residential property, except by waiver or wi#h limited 7. exceptions, are t~ligated to disclose to prospective Buyers a#! tnateriai facts o€ which Seiler is aware that could adversely 8. and signiftcantty affect an ordinary Buyer's use or enjoyment of the property or any intended use of the property of 9. which Seller is aware. Such a disclosure is not a warranty or a guarantee of any kind by Seller ar licensee representing 10. or assisting any party in the transactioiz_ Seller agrees to r'iot#fy Buyer imirtiediate[y in writing of any substar:tive changes 1'1. from any prior representations regarding the property. 12. (Check appropriate r~vx.) 13. [] Buyer has received and had an opportunity to review the Seller's Properly Uiscfosure Statement; 14. or 15. ~ Buyer h~.s rECp°.r-_d and had an opportunity to review the Sefler;s pisclosf.~re Atternataves form. 16. Ct}~lpl~sd~ i)F pR®PIER'i'lf: The property be'sng purchasef~ by F~uyer, includif~g the dwelling, ether irnproVe€nentS 17. and fxtures, is not new and is being purchased "AS is". Buyer understands that the .property, as de<tir~ed above,, will be purchased in the c©nditien it iw in at the tune €if Purchase Agreement. Buyer sha11 have the right to a walls.-through review of the property prior to cEt~sing. Tcx f#x~s extent ifiere 2Q. is a material change in the condition of tyre property arising between the date of the 1~t~rchase Agreement acid the 21. ctosirig date. Se#ler stiall be respon;aitile far rest©ring the property #o substantially the Barrie condition it was in on the 22. date z~'f tree 1:'iirchase Agreement, ~;xcept tiler :Se11er sh~1 have t~+8 t~Bt~.t~A~~`?~ +~~ ~~SP~3~;~#~3t_i'9''l to repair or ~3. replace central .air r,,oriditianing, heating, ~51umb#ng (including individual sewage treatment systeri~s, unless ttherwise ~4. rec~sr#r-ed by law}.. wiring systems ar walls vrs tl're~ prapei'ty It flR~:y`. fait betttueet'€ tfi~ dots of P~trehase- Agreet~et~t ai~td ttte 25. date o1' closi~rg. TYtis provision v€~i~ lines 2•ft7-•~1~ cif the ~'tat~l7z~se ~ctt~rrien#. 2S. ~#;~ ~~ #..~~~: The 1~iisk of doss provision in fibs Purchase Agreement is modified as follows. if there is any lass 27. tit darrtage ti3 the pt'~stae~y tietwe;~;t the date of Purelie;~e ~1~reemeiit aril tht: da#s cif closing for arty reason, i~l3adirig tits, 2=~3. >laiidalisri`t, ~or3d, esrtticlt~sltc; ar act c+f ~r~d, t t?' ri~l< crf 1as5 .s#ia;( be on aeller excel3t t11at $sller shall Have ~~ ~9. ~~#,L~,~~'&~~ ~~ 1.~~~~~G~i?twt ;o. rel:~rtir car r+:ixi~;e C;erttral sir-sort si'fiis3t~i~tg, 1t~,at€t~t~, p1t~r:tiiirrg {iricltk€ti€ig indiv=dc~i 34. sewage treatrriertt syst~:rrrs> {.r''€1r~5 vl~f3:'s~li3c: r~~;ri>F.a1 r.~y i~iJyf}, v~irdf ~g ,i at~:rrir or ~°dwlt:~ o~ ~ pt'o~~-~~~ if t€t~y tai# tis~~ee;'i 3't, t1~e date cf l~urctiase l~gt~entont a#'ttt the dada ~sf c#s~sifiy. if the propt:r#~F i?. cie:~troyc~tt tix st.~;~stat1tia#ly ~r~nted 1R,~tc:re ~~t'',. fi'i~; ~"lti~ir7~ ~r',~(~, ttii:i i'tirt;:':'r_1~;"-, e~~~~~if?£3Flt !~ c+si~t;E;1ed, 2t fi;~tJy'.'f S Cip$t01'r, ~y 4jirltt$t"# fIi?ii~Q t(~i ~'f'.##'i,'r Ar liC~nSEse ~~. ~ ~~= s .~. _.>~i~~~r!,, . ^'. ~ ~' ;j ¢a :~ 1s thin 1~urcl^~:'~te A~re~'rr~rit _B:.~y~r and Seller s#~ai1 irrtr3~edlately sign i rt~t~ft':a ,3tEi'.!C% , i.,t's s7 i C'.'r. ~~ sue{ ~ r f., f;iet_-^. , ~ , w. ;~6~.. ;.3 ~{.i:~r..,a1{~x?f iii {~~ ~,,<<:Y,~:;~: ~':g;:~ ~~~o;rP =:iJrit¢rn•iir~3 .~~aid cancol#at=nr~ and r~irtirting all earnest money paid l~sreunder ',~. to be reii~~€id~~ to 8,~:.yyxr,. ~~jj~~ ~erg9# .E. @~ a~~?? ~~e'irggr~G k. "sx r~s l:= 4: ..,-,... e»~. ~~ a.. «, n$ 03 N ~r+c;' 43i° f€i. 6 ~a`Y: .t is s:~i:.se;-,'.iR:~ cl'~ ',~'~. %i~:;'i^,.~`.'..~n ai .FJ. iTia~ E ~' Fi6 c.~+s.,'~n . i'J~bi. t'sci°~ v :il'~i4~a , rfr`"--~ =K :# !4. : 8~,_ 4V 1riY~,.rt ~7. Buyer's v haice, at ~ti~er"s ir' ~enss. ~. #`_` y'~ ~~Sl 1~~~t~ ~t `l#"~;~ ~~4. ~~B~~t..T ~ ~~~~T ~€~~~t~~~t,~, i::dsrst7230;:raneo %~3Cns,4.soults, ~i~itc. 3~t) i:.~inm, ?v'fht _`:5~.i5 J~it3 : :3t,f. j <~:)v ,~Jk r .. ! ...' 3` S;i:C r~:i:L~ r~u<a?x£ r'lii=?i(J.?'Drr::`":Pf f•:C f'rh;t>,s~i~C, s.~(. s~GU<•:~ i~itC`r'~t ~Rt?Pe ~tt~fd, Casii+F:;n'Y~?YVr>shit,, ~,ii~,;ttil~Nn ~1}~ick:3'i vrvws;~lp€Gr?Yt.~rtr3i i 's 5-~{ f ~UYiv~ PUR~i~~~I~~a "~~ 1~" ~ODDE~IDU1~1 arseaafl~.+~avaga 4p, f]age 2830 West 70 1/2 St. 41. Property It}CBtcd 8# Richfield Mtn 5~~i23 , 42. SETTLEIPNfwN-t' IS l~6NAR.,: It is understood ths# Buyer accepts the property "AS IS.' ANY WARRANTIES OF Pf~tYSIGAL 43. GONDtTtON 4F THE PRQPIrRTY CC}NTAINED IN THIS PURC~ fASF_ AGRELMEt'~!T It~fGt_E1gi~4G, 8UT IdOT LIMITED 44. TO, CENTRA(_ ,AIR-CCl1VDITIONING, HEATI~iG, PLt3MBING, WIRII4IC, AND CC3NNECTION TD CITY SEWER AND 45. CITY W1':TC F7 r~.F:~ 1.":.1i0. This provision shah survive del'€very of twe deed or car~tract for deed. Alf other warranties 46. specified in #I7P., Ft1.rrha5e Agreement remain the same. 47. OTHER: 48. 49. 5d. ...._~_ _ __ 51. 52. 53. - 54. 55. 56. 57. 58. 59. 60. -._..._ __._...._...._..._..._ ._.~._ ._ . 4 ~ ,,.+,~..,~ f,. 69. ~~' ~ ~.~q~ ~ ~~ ~ ~ ~~~~~ ''' 12/27/2008 (Seller) (gate) (5uyer) Eric Nf. 131ad (E?ate) u raD ~aome 1:,ota~ N~or~at~e ~aa'paratioe ~~I"ll~~ o ~'~~~~~9e py}tsAtitorrtey-in-fact 62. a~sa7ECi''f4 ALl. p,D08NDA ____ {Seller) (Date) (Buyer) (Date) g3, THIS IS A LEGALLY BINC3tNG CQIVTRACT SET~Jt=i8A1 BUYER{S) AND SELLER(S). 64. tl± YOU t7ESIRE LEGAL OR TA3t AI3'4/tCE, COI~St~LT AN APPCdt'JPRtATE PRC3FESSIC3MAL. MIN:BPAIA-2 {8/O&)' Produced K4th ZipForm T"' tsy RE forrnsNet, Li.C 18025 Ft%een [Mile RoacS, Clinton Township, Michigan 48035 ~ww~jaforrn.com Eric Bind • ~~`~2- ~lNA~lco~G An®En~~u~! ~® Gm~VE4~Tlt}4NAL DR PR41i{A7ELY • '~'s`~~'iO"' !~!Sl.IREC3 COl~VEi~l7404'~AL 41~4RTGAGE This forrrJ approved by the hJlinnesa#a Rssociat#on of REAE_T(1RSN1, wFrich discraims any liability aris#rrg out ofi use ar misuse of this forte, 9 2407 rvr#nnesata Association Of REAt.TORS~, Ed#na, MN ~, Date ~_ December 17 21106 Z, page __.. 1 a£ 2 3. Addendum to Purchase Agreement betv~reen parties, dated _._..~pece~nber 17 2008 ,pertaining to the 4, purchase and sale ofthe property at 283(3 ~rTest 70 1/2 st. 5. _. ___ >:tichfiela, ~ 55e~2 6. There ^ lS ~ l5 NflT a Buyer's Financta! ©isclosurz3 Statement submitted with this Purchase Agreement. ..._.-.{Cheek one.)---__ 7. Financing will Jae a x^ FIRST JUJ©RTGAGE Deily ^ Fii~ST i~i~R'FGAGi= ANt7 SUSOJ~GINATE. J~iNANCtNG. --_...._-____~-_-_____-___..__..___-......__.._{Check arre.}----•----__.._._-__..._..___._..___~_._._._,._._-- 8. Buyer shaiE apply for and secure, at Buyer's expense, a J3. ~ Ct7NVEJVTOC)JVAL ^ PRIVATELY tNSUREJ7 CC}~J~IEJ~Ttd3i+tAL Fixed First Mortgage ______~_...._.r______________--(Gheck ane.}--.._-_~:_____.._...____...-.~._..._._-_ (e.g., fixed, A.RM) 10. amortized monthly over a per"sod of not mtare than _ 3o years, yvith an initial mortgage interest rate at 11. na mole than market rate percent {%) per annum. 12. The mortgage application iS 70 BE J~IAGE WITHIN FIVE t5) BUSINEaS GAYS after the acceptance of this Purchase 13. Agreement. E3€#yer ai~rees to use best efforts to secure a commitrr#ent far such financing and to execute all documents 14. required to consummate said financing. 15. FINANCtNC CC1N7'INGENCY. TJ7is Purchase Agreement is contingent upon the follavuing and applies to the first rrtortgage and any subordinate financing. (Check one.) 18. For purposes of this Gantingency,. "'~flE@tten 5&atemeaet" means a Written Staterrtent prepared lay Buyer's mortgage 18. origihatoresj or Jenderes) after the Final: Acceptance mate tJ3at Buyer is approved for the loan(s) specified in this P€irchase 20. Agreement, including both tF3e first mortgage and any suJJordinate financing., if any, and stating .that an appraisal, 21. satisfactory to tF:e lenderes}, has Jaeen completed and stating conditions required by Jenderes} to close the loan. 22_ ^ if buyer cannot secure such mortgagees) and this Purchase Agreement does not close on the closing 23. date specified, this J~urchase Agreers3eiit is c;anceJed. J3c+yer avid Seile#• shall immediately sign a Cancellation 24. of Purcii!ase Agreement confirming said canceilafiioR and directing a!I earnest money paid hereunder to be 25. ~ REFUJ~117E#~ 7'17 BUYER ^ Fs7RFEITEG TC) SELLER, 26. ^ J3uyer shall provide Seiler, or licensee representing or assisting Seller, with the Written Statement, on 27. or before ~an+aar r~16 . , 2t3u9 __ . 28. Upon delivery of the iNriiten Statement to Seller, or licensee representing or assisting Seller, the responsibility 29. for satJsfying ail conditions, except work orders=, required J1y m#arxgage ortc~iRator(s} ar lender(s) are deemed 30, accepted Fay Buyer. L3pai~3 deliverty of tt3e Fii'~'iti£.'n StaterY3eRt, if this Purcfase Agreerrient does not close on the 31. stated closing date frar Al~d'u RF}~Se~l~ relating to €#rtancing, outer than uel{er's far~r~re tca G#an•~plete worts csrders ta~ 32. t#;e extent required by this i?ui'chase Agr+mernent, irtcFc:ding, taut rtQt' Jtrrtiae€f era interest ram at~d diseca€srrt points, if 33. any, Seller rr#a~r, at SeJJer's option, decJaee this J~€er~ase Rgreement canceted, in ~,uhicF€ case this purchase Agceerner~t 34. is ranceJed. tf Seiler declares thJs lausch~5e Agreement can~Jed, J3uy~;r and Seller shall irr#rnediateJy sign a 35., twareceflatiorr oxf ~?un.:h~ase Ac~reer~~eraf canfirrr#Jng said oarceJJa#ion ar?d dire+~ti•:~g all earnest €3'toney paid J~eretar#der 36. eta be forFeitetl tea Seller as Jiquidatec'I ~Jarrlages. to 'the afterrativtw, Seiler rna~,a seeJ< ail ether remedies allowed by 37. taw.. 38_ if the Wcitter~ S€aternent is not provide by. tfte €late specified an lire 2T, tF~is l~tirei~rase Agreerr#er;g is cart~eletl. 33. l3uyeF and ~eJlef shall irrtrrrediate€y Sim ~ s`":i'~t'i`{/s'~~IfFCl E7~ ~t1FC~'tr~5~ 1~ti.~~~tr?tTr Cttri~r[k'litt~ Fa'r '~~n~~tt~:if c"'•6t;~ directing ail earrt2st rnorey paid here:~nder to tie re#unded to t3t;yer. 1. ~ ~"I`l~ t5 ~ 3~.EGAI.t~Y 1a~~J~ J~ t~€~`?~3~"~?~+~'l" ~TWJwE~t ~Stt~~45~ G ~I~is..EJ~;S~. ~~, `si '~ tits '~ az`?z Y.,:~`.~:~:~.: 1'~'*«, '~":~~~ Po~~e}'63~~T ~~~}~;..'~.~~ ~~~~~~~,~~ ~~~~i~$~,~3a... [rhP4:F/kGCvT-t ($lO~p Ediiw.725U F#ncc hvepuCBot~a!, 5ui+c 3!Nr 1x3inv„M'h 55:4 A}G;i3: l,~i.'? xth`- YLS~ Psx: 015:4) ~12i . iYl.t? 3riC $Jrtd h~arv Cat7you F~:tidu;CU t+rfL`i ZityP':~fr:'^' Ug I t, r.^.,"tt;s:4nf. i.4C i£S'iq 5~i;ieu ~ F+;f^, .... Vii. ?~ r,:,,,~•,,.!frhi,:;sY d'EQ2P. Yf.Y?Mc.~~`~... xt:pti,iom 5-~3 283 TiYaSt 74 1/2 St. 44. Property iacated at ,__ Ricniie3.d, NA7 55423 _ 45. PRi11~-TE l~®RTGAG~ il+ESlii~At+lCir {i?l~i}: Plt~l may be required try the landing institutions}. Buyer agrees to pay Q~6. all subsequent years' mortgage insurance premiums as required by the lending institufion(s}, The said mortgage 47, insurance premiums will increase the mortgage amount unless paid its cash at closing. 48. i'~IS~t~lti~#~` ~'r~#J~'~*: (f Seller h'3S ~greF:t~ t(} pc'~y dIS~~.trtt ~1C71r1~5 ~7Cir8~?ant fa tFt3s Pu~ft~~se Agreement, a Firraneing 49. Addertdurr :~ellc~f s uanfribution 1o Glasing Costs and f3iscoatnt t=`cints must be attacfted. I~athinr~ in this Purchase 50. Agreement shall prohibit Buyer from paying any mortgage discoL~nt points. 51. LOCFEiNG OF riNORTG~IGi ifdTEi3EST ~T;= {I~2.~TE}: The E~.a#e shall be locked with the lenders} by Buyer 52. (check ones: 53. ^ VIfITHiN i/iVE {5} Bl.~S1tv~SS l~A~YS C3i= FIRIAL A~Ci~PTAI~I~E CjF THiS PJFZCFIAS~ ~lGREi=M1cNT; OR 54. ^ AT AIVY TliUli= PRIC9R Tfl GLCISIPJG Qi~ .AS RE€~l!li~~f~ #3`! ~~i~€3~R{S}. 55. iLEN[)~R ~Ct~tlillUli~'If~Irf~T ~'?RF~ f3Ri~~i~5: !Nothing in :his c~uschase Agreement shalt be construed as a 56. warran#y that Seller shall make repairs recuired by the ier;der commitment_ However, Seller agrees to pay up #o 57. ~ ....._..._. .__.... _ to make repairs as required by the lender corrtmitment. It the fender cammi#ment 58. is subject to <~tty V4tti~k orders for which the cast cif making said repairs shat exceLd this arxt<,unt, Seller shall have the 59. fallowing options: 6Q. (a} making the necessary repairs; or 61. (b} negotiating the cost of making saki repai;~s u~aith Buyer; or 6Z. (c} declaring this Purchase Agreement canceled, in which case this Purchase Agre~;rnent is canceled. Buyer and Seller • 63. steal! immediately sign a Cancellation of Purc>~aase Agreert?e,~t confirming said canceflatian and directing alt earnest 64. money paid hereunder to be refunder3 to Buyer, artless Buyer provides fcsr payment cf tfiie cost of said repairs or 65. escrow arraunts related thereto a:I~o~tF; the arr:ourtt ;~p~.ified an iin~; 5? of ibis Addendum. 66. OT1iER• ~._....Y... ~._ ...._......_. ___._.. ....._.........r._.._......._..__ _~ 67. _._._._._.....~..._.~ ___._... 68. _._._._........._... ------..__.-.--.--._____~_._..._._..___...__.___.._.___._._..~. ..._._ 69. - - ...._...___.. 70. 71. 72. 73. 74. ~~ {ten 75. _.._.._.._._._. __.._.Y. _._......_ '~17r ~ ~. (S,et~#er} @ a,,~ g., y (Date) (B~:yer) Eric L~3.. Bl~.cl (Date) =..d~f~~~i ~..r~a~i.~9~G~ a eCor~wratt°~ ,.a~n ti4uRg 1# erall~i~ui~~°~'Orattnm .::~ctorney-tn-fact ~y its Q1}Y' n" tt'"" "' _ .::" TO (Dale) (E3uyer) (Date} SllI3,SKl' ~ 111.1. AGsA1+NOFt 77. THiS iS A Li Cx,~4fr#."d' Bilrif~l~~x C~~ a ~~" f:3iwTi!'~~:~ B~~~1~:{S} ,~Itl~ SIWL..LER{$}. 78. Il= i°~.tf1 I;SESIR~ I_~GAI_ t~fit ~A~,~63~f~~, ~trtl~~au9 T AID AP~~c~ai'T~ PRd3FESSiEJi~Afl.., • Produced wi#h ~~forrn"~ tsy RE FormsNet, LLC 18070 Fittest i49ife Ftaad, Fraser, Nifchigan 48028 wvnvzis3(nrm.corrt Eric 13fat1 ~"--~d~ • ~.~~~~ ~~..~ ~v ~.t~~~ ~t°~1w~p~rc+v~~ ~~~e l~~~t~ l 3J1'714~8 ~~e have a conditional loan pre-approval for a rnot~tgage as described below: '~'~pe ~~ 1'~~~rtg~ge: +Ce~a~v~a~fi~a~ra~~ ~'a~op~~°ty A.ddtre~: 2~~trD ~e~tt 7~ ~~a ~~~eet ~~hla~lci, I' This loan pre-approval i5 subject to d~~ following conditions: • l , There is not material variation at the tune of dosing front the infam~ation set forth in the application and other supporting fot7ns and documents. 2. The F3orrower's c;ttrrent home does nr~t need to sell prior to the close of the subject prrpeaty on this pre-approval. 3. A satisfactory Uniform residential appraisal Deport indicating the .property is acceptable ~:c~.i• a~ bare r~)~tL'C1aSe by an investor. 4. A satisfactory issuance of'title insz4ranee policy. 5. There are no contingVraci~ assa~:iatc;d with this approval. 6. This loan pre-approval is I;octd for ~0 days. Please feel free to cont~rct me at 952-252-023€} if yot} Dave any questions. ~incert;Iy, Lucas Kanavati T~-a~'~P%~tr 1#~~rt~uge ~~i . i i - _ y .team , ~•. , ' ~ j ~, ~'~ . ~~' '~` ;~'~`""` / S. #344 7254 Fscsnce Ave.. , .r y;,v,,,; _ 'u 7 - t:'~.a. r.9. f +'k '- ''~ . L,.S _.._..,..._.1., .~.. .. ,~ .. .. 435 55 fo sa inns M Edina, glary CrarSsc~r~ ain offirs 411 • ,.,,____..._. - m (952) 421-0 __._ partner / [tets{toss {4521 421~41d5 • mein fax {452) $0~-9252 • direct {612J $04-252$ • mtabifa mcarlsorcounselur~msn.com ""'°" i7 _i. ~ ~ ~ 1. C.V ~r~t l`>!#. ~t.>'~,t3 a'fe"f lifa~.•~ra C_'.a" ~to~ . 1, ~' .. :rt;~!?-i^t6i-fEA+~i1i~i°'~ tii°'2-kY~~a =u^>la'~~G~iBt ' 1tli~isa~a.~QUS: ~nrs ~,s4t7•z4ss -,. ~ ,. ~ 7 ._...._.. t.e'.. _~___..i7. 3-:/ ~ ~ ' ---. _.-'_. f .... ~4 . r ..... ....~r'-....... _ _ _. _ ._._...__. ~ ~ i ~ ~. :-::'%;°_: ~ Wells i•argo flanf; F.~iitnesjlYa, ~I a. ~: ~ ~ ~ . ~~ ;~_ ~r~ 3`y ran.. AAEnneapails, tyii~355479 ~• . , =a, : ;~ cu~w.weilsfarga.cnm l,,a 3' p .,,~+ r" ~..,.... ~~o~ ~aooo ~~~g z~~~~~o6~6offp a ~ ~o~ • . C] ` T / REQUEST FOR SUBORDINATION AGREEMENT HOUSING AND REDEVELOPMENT AUTHORITY (HRA) IN AND FOR THE CITY OF RICHFIELD .~. -_ INSTRUCTIONS > ,~ , ~ ~ ,.., '-- - -_ _ _ - C] • / Please review the HRA's subordination policy prior to submitting a request for subordination. / Please complete form and return by fax (612-861-8974). / HRA Processing Fee - $75.00. / Re uest will not be reviewed until all su orting documents and fee have been received. .Y,yrY _ _..; _.._ }~ s ~~: '` - MORT~GAGOR-iNFORMATION° ~'`, Applicant (Mortgagor) Name: Eric M. Blad Pro ert Address: 2830 West 70 1/2 Street, Richfield, MN 55423 .PROCESSING INFORMATION ;~, Reason for subordination: Mr. Blad is ourchasina and redeveloping a property under the Richfield Rediscovered Program. The terms of his financing requires that Tradition. Mortgage's-mortgage be in first position. Closing Date: January 27, 2009 Full Legal name of Mortgagee (new lender): Tradition Mortgage (This name will appear on Subordination Agreement) Mortgagee's state of incorporation: Minnesota N/A to federal credit unions; lender's location is not necessarily the State in which it is_incor op rated)- -- I _ DEBT: INFO:RMA_ TION ___ _ PROPERTY VALUE,INFORMATION ___ Amount of new mortgage loan 267 400 Projected property value: 384 000 HRA Redevelopment Credit 70 000 Appraisal conducted? ^ Yes X No All other remaining lien(s) ~0 If no, how value determined? -Appraisal has been Equity Line of Credit ~0 -ordered. Const Loan will be 70% of package. End Total projected indebtedness $305,600* endloan Loan projects to be 80% of the package. E uit bein removed? 0 * Total Project Indebtedness does not include $70,000 Redevelopment Credit, as this is ultimately a grant. However, a lien will be placed on the property for a year until the project is completed. LTV: 80% (A total LTV including HRA debt should be below 80 percent.) DOCUMENT DISTRiBUTIQ:N INFORMATION , Send document to: X Broker or Direct Lender ^ Title Company ^ Pickup at City Hall Company Name: Tradition Mortgage ATTN: Lucas Kanavati Address: 6800 France Avenue Suite 178 Edina MN 55435 Phone No: 952-252-0230 Fax No: 952-920-8900 y g~ ,~~~~Q.~G~UMENTSEQUI~EQ~~~UnR C,QMPLETEAP.PLIGAATIQN ~..~, ^ $75 Application fee (Check payable to Richfield HRA) ^ Typed letter, dated and signed by mortgagor, stating the reason for the requested subordination and the use of any equity being removed as part of the loan transaction ^ Copy of current title work (must indicate all debt against property) ^ Settlement statement indicating estimated closing costs ^ Current appraisal R1CDAdmin\HOUSING\Subordination & Payoffs\Forms\2008 SubRequestForm.doc Kirsten Partenheimer From: Lucas Kanavati [lucas.kanavati@traditionllc.comJ ~ (.,1~ Sent: Wednesday, January 14, 2009 2:45 PM • To: Kirsten Partenheimer Subject: RE: Subordination request form for Eric Blad Kirsten, The terms of the construction loan are as such: 6 month term 7% interest only payment on amount drawn from loan Extensions are available in the event there are delays 5% penalty if payment is aver 15 days late Package price (est.): $382,000 Construction loan limit: $267,400 (70% of package price) The end financing wilt be a 30 YR Fixed mortgage (principle and interest payment} vvith na pre-pay penalties or fees. Thanks!! Lucas Kanavati Tradition Mortgage Educators Mortgage Services 6800 France Avenue South Suite 178 Edina, MN 55435 • Phone (952) 252-0230 Fax (952) 252-0231 luc~ts.lcal~avati~)traditionllc, cvrrz ),uC'c~ S.1Calltl.vatl~GU11]T1edLiCatC?i'S~l C)i11 G5. C';()?71 • Page 1 of 1 Kirsten Partenheimer ~^ From: Lucas Kanavati [lucas.kanavati@traditionllc.com] Sent: Wednesday, January 14, 2009 2:41 PM To: Kirsten Partenheimer Subject: RE: Subordination request form for Eric Blad Kirsten, We are requesting the City of the Richfield to be in 2~~ position to Tradition Capital Bank. Tradition will not do the construction loan if we are not in 1St Tien position on the home. Thank you. Lucas Kanavati Tradition Mortgage Educators Mortgage Services 6800 France Avenue South Suite 178 Edina, MN 55435 Phone (952) 252-0230 Fax (952) 252-0231 i ucas _'`~i~lati~at ~i>tracl ti~nllc _c~rz~. ucas,_h_a~~av_zti~a~n~ ~zed~ic. atc>rshail~us. ~ oa~~. • •