The URL can be used to link to this page

09-21-09 Agenda PacketCITY OF RICHFIELD, MINNESOTA MONDAY, SEPTEMBER 21, 2009 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. Approval of minutes of Regular HRA Meeting of August 17, 2009 Notes: 2. HRA approval of agenda 3. 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 contract with Frattalone Companies for demolition at 7408 Sheridan Avenue and 7338 Queen Avenue and authorizing staff to contract for any uncovered abatement costs S.R. No. 35 B. Consideration of approval of resolution authorizing. purchase of real property at 6321 Penn Avenue, contingent upon finding of consistency with Comprehensive Plan by Planning Commission S.R. No. 36 C. Consideration of approval of resolution authorizing purchase agreement with City of Richfield for sale of land at 6758 Portland Avenue for $200,000 S.R. No. 37 Notes: 4. Public hearing regarding consideration of purchase agreement from Elissa McGaha and Andre Jaeger for 7422 Fourth Avenue Staff Report No. 38 Notes: 5. Public hearing regarding consideration of Richfield HRA's five year public housing authority plan for Section 8 Housing Assistance Program Staff Report No. 39 Notes: 6. Executive Director report 7. Claims and payroll Adjournment Auxiliary aids far 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. J HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota Regular Meeting August 17, 2009 CALL TO ORDER The meeting was called to order by Chair Sandahl at 7:15 p.m. ROLL CALL HRA Members Present: Sue Sandahl, Chair; Joan Helmberger; Doris Rubenstein; and Steven Quam. HRA Members Absent: David Gepner. Staff Present: John Stark; Acting Executive Director; Chris Regis, Finance Manager; Karen Barton, Assistant Community Development Director; Myrt Link, Community Development Accountant; John Dean, HRA Attorney; and Nancy Gibbs, City Clerk. Item #1 HRA APPROVAL OF MINUTES M/Rubenstein, S/Helmberger to approve the minutes of (1) Regular HRA Meeting of July 20, 2009. Motion carried 4-0. Item #2 HRA APPROVAL OF AGENDA M/Rubenstein, S/Helmberger to approve the agenda. HRA Meeting -2- August 17, 2009 Motion carried 4-0. Item #3 CONSENT CALENDAR A. Consideration of approval of resolution authorizing execution of instruments necessary to purchase up to four vacant and foreclosed houses for rehabilitation and resale through Neighborhood Stabilization Program, up to total expenditure of $750,000 through September 30, 2010 S.R. No. 29 HRA RESOLUTION NO. 1052 RESOLUTION AUTHORIZING HRA EXECUTIVE DIRECTOR AND BOARD CHAIR TO ACQUIRE CERTAIN FORECLOSED HOMES WITHIN THE CITY AND TO EXECUTE ALL INSTRUMENTS AND CONTRACTS RELATED THERETO This resolution appears as HRA Resolution No. 1052. B. Consideration of approval of resolution authorizing execution of instruments necessary to purchase up to seven vacant and foreclosed houses for demolition using up to $842,896 from Housing and Redevelopment Fund through December 31, 2009 S.R. No. 30 HRA RESOLUTION NO. 1053 RESOLUTION AUTHORIZING HRA STAFF TO ACQUIRE CERTAIN FORECLOSED HOMES WITHIN THE CITY AND TO EXECUTE ALL INSTRUMENTS AND CONTRACTS RELATED THERETO This resolution appears as HRA Resolution No. 1053. M/Helmberger, S/Quam to approve the Consent Calendar. Motion carried 4-0. Item #4 CONSIDERATION AND ACCEPTANCE OF RICHFIELD HRA ANNUAL TAX INCREMENT DISTRICT STATUS UPDATE S.R. NO. 31 Acting Executive Director Stark presented Staff Report No. 31. Rebecca Kurtz, Ehlers and Associates, presented Tax Increment District Status Update. The HRA requested that Ehlers and Associates return with options of pros and cons of Richfield Rediscover Bonds. Chair Sandahl stated it would be helpful to have additional detail to where TIF district property is located. Commissioner Quam stated that a map would be appreciated HRA Meeting -3- August 17, 2009 M/Sandahl, S/Quam to approve acceptance of Richfield HRA Annual Tax Increment District Status Update. Motion carried 4-0. Item #5 CONSIDERATION OF OPTION AGREEMENT WITH ASI; CANDLEWOOD PARCEL S.R. NO. 32 Acting Executive Director Stark presented Staff Report No. 32. HRA Attorney Dean explained option agreements and presented a change that was added to page 7 of the agreement. Commissioner Rubenstein asked if there has been any marketing for a restaurant for that site. Acting Executive Director Stark stated that yes; they have been passively marketing the site. Chair Sandahl questioned the need for more senior housing and wants to see a more balanced approach. HRA Attorney Dean stated that this motion should be contingent upon the approval of Item #6. Commissioner Quam stated he has concerns about Item #6 but will approve this motion with the change. M/Sandahl, S/Helmberger to approve the option agreement with ASi~ Candlewood Parcel contingent upon the approval of Item #6. Motion carried 4-0. Item #6 CONSIDERATION OF HOUSING DISTRICT 2009-1 AND DISTRICT 2009-2 S.R. NO. 33 Acting Executive Director Stark presented Staff Report No. 33. Ms. Kurtz explained the "but for" test. Acting Executive Director Stark stated that this property is not currently on the tax rolls. He then presented a graph to show the differences in selling the property with TIF and without TIF. Commissioner Quam stated he has concerns with the way we are using the TIF. He stated that this is not the open market; we are using TIF to give away raw land and questioned how we address that criticism. HRA Attorney Dean stated this would have to be an administrative policy however the HRA would be receiving dollars to be spent on public purposes and beneficial to the public. HRA Meeting -4- August 17, 2009 Commissioner Quam stated that he was a proponent of TIF, however is not comfortable using TIF this way. Acting Executive Director Stark stated that TIF is a tool, a deferred payment mechanism. M/Rubenstein, S/Helmberger to approve Housing District 2009-1 and District 2009-2. Motion carried 3-1. (Quam oppose) Item #7 CONSIDERATION OF RESOLUTIONS APPROVING 2010 PROPOSED HRA BUDGET AND TAX LEVY AND 2009 REVISED HRA BUDGET S.R. NO. 34 Acting Executive Director Stark presented Staff Report No. 34. Acting Executive Director Stark gave a PowerPoint presentation of 2009 Revised/2010 Proposed Community Development/HRA Budget. Finance Manager Regis stated this budget shows the same maximum levy but we are collecting less money due to market value declining. Commissioner Rubenstein stated she lives at Woodlake Village and she did not see any multi-family developments available for transformation loans or Richfield Rediscover money available. Acting Executive Director Stark explained how property that is individually owned but pay association fees are different due to the fact that the bank cannot put a lien on common area property but can put it on the property taxes. This is something Golden Valley and St. Louis Park are looking at and maybe Richfield should too. Commissioner Quam questioned where the million dollars for Penn Avenue acquisition came from. Acting Executive Director Stark explained the money is from bonds issued in 1996 and rules for TIF were different than they are today. However we have been advised that we need to start spending that money now on capital improvements and land acquisition. Commissioner Quam asked who made the decision to have that money go to the Penn Avenue acquisition. Acting Executive Director Stark responded that the decision was made by the HRA last year. M/Helmberger, S/Quam that the following resolutions be adopted and that they be made part of these minutes: HRA RESOLUTION NO. 1054 RESOLUTION APPROVING PROPOSED 2010 HOUSING AND REDEVELOPMENT AUTHORITY BUDGET AND CERTIFYING THE 2010 TAX LEVY This resolution appears as HRA Resolution No. 1054. HRA Meeting -5- August 17, 2009 HRA RESOLUTION NO. 1055 RESOLUTION AUTHORIZING REVISION OF THE 2009 BUDGET OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD This resolution appears as HRA Resolution No. 1055. Motion carried 4-0. Item #8 EXECUTIVE DIRECTOR REPORT None. Item #7 CLAIMS AND PAYROLL M/Quam, S/Sandahl that the following claims and payrolls be approved: U.S. Bank 08-17-2009 Section 8 Checks: 117179 - 117197; 117698 - 117812 $ 164,649.86 HRA Checks: 30634 - 30666 $ 69,048.47 TOTAL $233,698.33 Motion carried 4-0. ADJOURNMENT The meeting was adjourned by unanimous consent at 8:53 p.m. Date Approved: Nancy Gibbs City Clerk Suzanne M. Sandahl Chair John Stark Acting Executive Director AGENDA ITEM # 3A REPORT # 35 ~~ STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING SEPTEMBER 21, 2009 REPORT PREPARED BY: REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: JULIE URBAN, HOUSING SPECIALIST NAME, TITLE JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE /~ SIGNA REVIEWED BY EXECUTIVE DIRECTO ITEM FOR HRA CONSIDERATION: Consideration of a contract with Frattalone Companies for demolition at 7408 Sheridan Avenue and 7338 Queen Avenue and authorize staff to contract for any uncovered abatement costs. I. RECOMMENDED ACTION: By Motion: Approve the attached Contract for Demolition with Frattalone Companies for demolition at 7408 Sheridan Avenue and 733.8 Queen Avenue and authorize staff to contract for any uncovered abatement costs. II. BACKGROUND In June and July 2009, the Housing and Redevelopment Authority (HRA) acquired the. properties at 7408 Sheridan Avenue and 7338 Queen Avenue. The HRA plans to demolish the existing substandard structures and make the lots available for market-rate, new home construction through the Richfield Rediscovered Program. HRA staff solicited bids for demolition of the houses and garage from four companies: S.R. Stevens Excavating, Frattalone Companies, VEIT & Company, and Doboszenski & Sons. The companies submitted the following estimates: 092109 Demo Sheridan and Queen.doc • Frattalone $19,783 • SR Stevens $20,585 • VEIT $21,979 • Doboszenski $23,669 Staff recommends that the HRA approve acontract-with Frattalone Companies for the'demolition work.. III. BASIS OF RECOMMENDATION A. POLICY • The HRA has demonstrated success through its Richfield Rediscovered Program in removing obsolete housing in poor condition and offering opportunities for individuals to construct new, market-rate housing. • Historically, the HRA has demolished the existing home prior to selling the property. B. CRITICAL ISSUES • The houses are currently vacant. To reduce the risk and holding costs to the HRA, the houses should be demolished as soon as possible. • If the contract is approved, demolition will occur in October. • As part of the contract, Frattalone will survey both properties for asbestos and other hazardous materials. The cost for removal is not covered by the contract but will be subcontracted for if necessary. C. FINANCIAL • Frattalone submitted the lowest bid at $19,783. • Any abatement costs will be considered above and beyond the demolition costs. There are funds available for the demolition and any necessary abatement in the 2009 budget. D. LEGAL • Legal counsel drafted the Contract for Demolition. IV. ALTERNATIVE RECOMMENDATION~S~ • Do not approve the Contract for Demolition. • Award contract to another bidder. V. ATTACHMENTS • Contract for Demolition. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A ~~-i CONTRACT FOR DEMOLITION OF 7408 SHERIDAN AVENUE SOUTH AND 7338 QUEEN AVENUE SOUTH RICHFIELD, MN 55423 THIS CONTRACT is made and entered into this day of , 2009, by and between Frattalone Companies (the "Contractor") and the Housing and Redevelopment Authority in and for the City of Richfield, State of Minnesota (the "HRA") (collectively, the "Parties"), for the demolition of buildings and abatement of hazardous substances and materials of the properties located at 7408 Sheridan Avenue South and 7338 Queen Avenue South, Richfield, MN 55423 RECITALS WHEREAS, the HRA requires the demolition of buildings at 7408 Sheridan Avenue and 7338 .Queen Avenue including among other items, the .abatement of hazardous substances and materials (the "Work"). WHEREAS, the HRA has awarded the Work to the Contractor; WHEREAS, the Contractor represents that it has the necessary personnel, experience, competence, and legal right to perform the Work; NOW, THEREFORE, in consideration of the mutual obligations of the Parties hereto, each of them does hereby covenant and agree as follows: Section 1. Definitions "Asbestos" means any material containing more than one percent asbestos, which is friable, releasing asbestos fibers into the air, above current levels established by the United States Occupational Safety and Health, Administration. "Contract" or "Agreement" means this agreement between the HRA and Contractor for the performance of the Work, together with all exhibits, amendments, or modifications to .the Contract. "Destructive Report" means a hazardous materials abatement inventory prepared to assist in establishing the scope of the Work. "Final Completion" means all items of the Work, "punch list items" and site work are completed and Contractor is eligible for Final Payment. "Hazardous Materials" means asbestos, PCBs, petroleum hazardous waste, radioactive material, or any other hazardous materials or hazardous wastes within the meaning of City, State of Minnesota, or Federal definitions of hazardous materials or hazardous waste. 1 ~R-a "Owner" means the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota. "Properties" means 7408 Sheridan Avenue South and 7338 Queen Avenue South, Richfield, MN 55423. "Substantial Completion" means the time at which the HRA .determines that the Work has progressed to a point where it is sufficiently complete, leaving only minor "punch list" and close out items and other minor site work required to be completed for full payment of the contract price. "Work" means the entire completed demolition, abatement of hazardous materials, and all other activities to be performed by Contractor on the Property as provided for in the Contract. Section 2. General Requirements 2.1. Rights of the HRA. The HRA and the City reserve the right to reject any or all proposals or parts of proposals, to accept part or all of proposals on the basis of considerations other than lowest cost, and to create a project of lesser or greater expense and reimbursement than described in this Contract. The HRA also reserves the right to cancel the Contract without penalty, if circumstances arise which prevent the HRA from completing the project. In the event of any conflict between the General Conditions and this Contract, this Contract shall control. 2.2. Interest of Members of City~or HRA. The Contractor agrees that no member of the governing body, officer, employee, or agent of the City or the HRA shall have any interest, financial or otherwise, direct or indirect, in the Contract. 2.3. Equal Opportunity Statement. Contractor agrees to comply with the provisions of all applicable federal, state; and City of Richfield statutes, .ordinances, and regulations pertaining to civil rights and nondiscrimination including without limitation Minnesota Statutes, Section 1$1.59 as amended., incorporated herein by reference. 2.4. Transfer of Interest. The Contractor shall not assign any interest in the Contract, and shall not transfer any interest in the same either by assignment or novation, without the prior written approval of the HRA, provided, however, that claims for money due or to income due to the Contractor may. be assigned to. a bank, trust company, or other financial institution, or to a Trustee in Bankruptcy without such approval. Notice of any such assignment or transfer shall be furnished to the HRA. Notwithstanding the foregoing, Contractor shall be entitled to use subcontractors to perform the Work. 2.5. Independent Contractor. Nothing contained in this agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The Contractor shall at all times ;remain an independent contractor with respect to the services to be performed under this ;agreement. The HRA shall be exempt from payment. of all Unemployment Compensation, FICA, 2 ~~-3 retirement, life and/or medical insurance and Workers Compensation Insurance as the Contractor is an independent contractor. 2.6. Hold Harmless. The .Contractor agrees to defend, indemnify and hold harmless the, T-IRA and the City ,its officers and. employees, from any liabilities, claims, damages, costs, judgments, and expenses, including attorney's fees, resulting directly or indirectly from an act or omission of the contractor, its employees, its agents, or employees of subcontractors, in the performance of the services provided by this contract or by reason of the failure of the contractor to fully perform, in any respect, all of its obligations under this. Contract. 2.7: Accounting Standards. The Contractor agrees to maintain the necessary source documentation and enforce sufficient internal controls as dictated by normally .accepted accounting practices to properly account for expenses incurred under this contract. 2.8: Retention of Records. The Contractor shall retain all records pertinent to expenditures incurred under this Contract for a period of three years after the resolution of all audit findings. Records for non-expendable property acquired with funds under this contract shall be retained for three years after final disposition of such property. 2.9: Disclosure. The Contractor agrees to comply with the Minnesota Government Data Practices Act, .Minnesota Statutes, Chapter 13, and all other applicable state and federal laws relating to data privacy or confidentiality, as .those laws may be amended. The Contractor shall immediately report to the. HRA any requests from third parties for information relating to this agreement. All data created, collected, received, stored, used, maintained, or disseminated by the Contractor in performing its obligations is subject to the ;requirements of the .Act, and the Contractor. must comply with those requirements as if it were a government entity. The HRA agrees to promptly respond to inquiries from the'Contractor concerning data requests.. The Contractor agrees to hold the City and the HRA, its officers, department heads and employees harmless from any claims resulting .from the Contractor's failure to disclose data maintained by the Contractor and authorized for release by the HRA, and from Contractor's unlawful disclosure or use of data protected under state and federal laws. Section 3. Contract Price 3,1. Upon compliance with all the requirements of this Contract, Contractor shall be paid the Contract Price of $19,783.00, pursuant to Section 28 of this Contract. Section 4. Project. Schedule 4.1. Contractor shall commence the Work on or after contract execution and Substantial Completion of the Work shall be achieved no .later than November 15, 2009. 3fl- ~{ Section 5. Local Permit Requirements and Related Submittals 5.1. Contractor shall obtain permits required by the City of Richfield, including a plumbing permit (for water & sanitary sewer disconnects) and a demolition permit. Questions about these permits, permit fees, and the scheduling process for the required inspections should be directed to the Building Inspections Department at Richfield City Hall (612-861-9816). Contractor has not been provided a copy of an abatement hazardous materials inventory ("Destructive Report"). 5.2. No less than 2 days prior to beginning the Work, the Contractor shall provide: - Description of proposed dust and noise control measures for the Property. 5.3. Upon completion of the Work, Contractor shall provide: - Copies of any permits required by government agencies other than the City of Richfield, such as transport or disposal permits. - Copies of any test results required by government agencies other than the City of Richfield, including but not limited to testing required as part of the asbestos abatement process, - Copies of all landfill records indicating receipt and acceptance o£ hazardous wastes by a landfill licensed to accept hazardous wastes. Section 6. Job Conditions -General. 6.1. Contractor will disconnect and abandon utilities serving the- Property; including water, sanitary sewer, electricity, gas and telecommunications; or arrange for disconnection and abandonment: of same. Contractor shall not begin work before field- verifying that disconnection and abandonment has been completed. 6.2. Owner shall ensure that the buildings will be vacated and use of the property will be discontinued prior to start of work. 6.3. Owner assumes no responsibility for actual condition of structures to be demolished. Conditions existing at time of inspection for bidding purposes will be maintained by Owner to. the extent practicable. Contractor may salvage any and all materials and equipment from the Property. Variations within structures may occur due to removal and salvage operations prior to the start 'of demolition work. 6.4. This is a lump sum contract. Contractor must immediately contact Owner prior to exceeding the Contract Price set out in Section 3.1. Change orders for additional 4 ~~~ .payment will not be granted due to the Contractor underestimating quantities of materials). 6.5. Contractor shall provide all labor, materials, equipment, employee training, compliance with all regulations, permits, notifications, licenses and agreement necessary to perform the work described in this Contract. 6.6. All materials from undertaking the Work shall become the property and responsibility of the Contractor. 6.7. Contractor may choose to salvage materials and equipment. Any salvaged items must be removed from the Property in a timely manner as they are salvaged. On site storage or sale of salvaged items is prohibited. 6.8. The use of explosives and on site burning by the Contractor is prohibited. 6.9: Contractor shall provide water, electricity, communications and toilet facilities on. site as necessary to complete the work. 6.10. Contractor shall provide and maintain uninterrupted vehicular access to the Property, including temporary demolition facilities, storage and work areas, for not only persons and equipment involved in the project but also emergency vehicles. 6.11. Contractor shall keep fire hydrants and water control valves free from obstruction and accessible for use. 6.12. Contractor shall take all necessary safeguards to prevent damage or injury. to neighboring property. 6.13. Prior to closing or rerouting existing traffic lanes or sidewalks in any public street easement or right-of--way adjacent to streets, the Contractor shall obtain written permission from the City .Engineer. Expenses related to lane closures, including but not limited to traffic barriers, signs and similar equipment as well as traffio control personnel, shall be the responsibility of the Contractor. Section 7. Asbestos Abatement 7.1. If Contractor encounters friable and category 2non-friable asbestos containing materials, Contractor shall immediately stop work and contact Owner. Owner shall determine in consultation with Contractor whether Contractor will complete asbestos abatement on the Property pursuant to a change order as provided in Section 14 of this Agreement, or whether Owner shall separately contract such abatement to a different contractor. If Contractor is selected to conduct such abatement as provided in this Section 7.1, Contractor shall complete such abatement in accordance with Minnesota Pollution Control Agency regulations and the Destructive Report identified in Section 5.1 of this Contract. ; 5 3~-~ 7.2. Contractor shall decontaminate and encapsulate the work area prior to final clearance and air monitoring. 7.3. Contractor shall provide final cleanup and removal of all remaining temporary barriers; equipment and supplies. 7.4. Contractor shall provide all monitoring and analysis of air samples as 'required by state and federal regulations. 7.5. Contractor shall complete final clearance and air monitoring as required by state and federal regulations. Section 8. Other Hazardous Materials Abatement Pursuant to Minnesota Pollution Control Agency regulations (and the Destructive Report), Contractor shall remove and properly dispose of the following materials and items from the Property: 8.1. .Mercury: a. Batteries: Smoke detectors, emergency lighting, exit signs, security systems and alarms. b. Lighting: Fluorescent lights and bulbs; high intensity discharge lights (metal halide, high pressure sodium, mercury vapor and neon); switches and controls for lighting. c. Heating, Ventilating and Air Conditioning .Systems: controls, devices, thermostats, aquastats, pressurestats, firestats, manometers, thermometers. d. Boilers, Furnaces, Heaters and Tanks.: Mercury flame sensors by pilot lights; :manometers, thermometers, gauges, pressure-trol, float and level controls, space heater and unit ventilator controls. e. Electrical systems: Load meters and supply relays, phase sputters, microwave relays and mercury displacement relays. f. Miscellaneous: All vacuum, pressure, fluid level, temperature and flow rate control boxes and panels. g. Any electrical wiring from fixtures or equipment being removed for abatement shall be capped. 8.2. Poly-Chlorinated Biphenyls (PCBs): Transformers, transistors, capacitors, heat transfer equipment, light ballasts. 6 ~~~ 8.3. Chlorofluorocarbons (CFCs) and Hydrochlorofluorocarbons (HCFCs): Fire extinguishers, air conditioners, walk-in coolers and freezers, water fountains and dehumidifiers, refrigerators/freezers/chillers, and heat pumps. 8.4. Miscellaneous: a. Hazardous waste including general-purpose cleaners, paints and thinners. b. Oils including used oil and hydraulic oil in door closers. c. Water heaters. d. Space heaters. e. Air compressors and controls. f. Building unit ventilators. g. Radiators. h. Fuse boxes and electrical panels. i. Roof top exhaust vents with motors. j. Boiler chemicals. k. Heating fuel tank, including contents, if any. Section 9. Demolition 9.1 Owner has not conducted any testing to determine the extent of lead based .paint. Contractor shall conduct demolition in compliance with any state or federal regulations governing demolition of structures containing lead based paint. 9.2: Contractor shall use water sprinkling, temporary enclosures and other suitable methods to limit dust and dirt rising and scattering in air. Contractor shall comply with any and all governing regulations pertaining to environmental protection. Contractor shall not use water when it may create hazardous or objectionable conditions such as flooding or pollution. 9.3. Contractor shall clean adjacent structures and improvements of dust, dirt and debris caused by demolition operations and return adjacent areas to condition existing prior to start of work. 9.4;: Contractor shall demolish buildings, other structures, improvements, .and landscaping completely and remove all debris from the Property. Contractor may use such methods as required to complete the work subject to the limitations of governing regulations. 9.5: Contractor shall proceed with demolition in a systematic manner, from top of structures to ground, and will complete demolition work above each floor or tier before disturbing supports on lower levels. 9.6. Contractor shall locate demolition equipment throughout the building and remove materials so as to not impose excessive loads to supporting walls, floor or framing. 7 3~-~ 9.7. Contractor shall provide and maintain interior and exterior shoring, bracing or other structural support to preserve structural stability and prevent movement, settlement or collapse of the building. 9.8. Contractor shall break up any concrete slabs-on-grade and remove from the Property. 9.9. Contractor shall demolish footings, foundation walls, tunnels and other below- grade structures and remove from the Property. 9.10 Contractor shall provide certificate of well abandonment if required: Section 10. Debris Control 10.1. Contractor shall maintain the Property free of extraneous debris.. 10.2. Contractor shall prohibit overloading of trucks to prevent spillage on access and haul routes. 10.3. Contractor shall maintain a sweeping and clean-up program to prevent deposition, release and disbursal of soils and debris onto paved surfaces. Section 11. Disposal 11.1. Contractor shall move from the Property all debris, rubbish and other materials resulting from demolition operations. 1.1.2. Contractor shall transport materials from the Property and legally dispose of them off-site in accordance with governing regulations. Section 12. Earthwork 12.1. Contractor shall rough grade the Property using clean fill after completing all abatement and demolition activities; taper edges of all excavated areas to minimize slope of 2 to 1, keeping soil disturbance to a minimum. Section 13. Excusable Delays 13.1. The following circumstances, and only these circumstances, will, at :the HR.A's discretion, be considered legitimate cause for a change in the commencement and/or completion dates specified in Section 4 of this Agreement: a. Material delay -- acnaterial delays that are beyond the control of the Contractor, which can be shown to have directly caused the overall late completion. 8 ~~ b. Adverse weather and emergency conditions -- weather or emergency conditions that directly affect the scheduling of exterior work over a significant portion of the term of this Agreement. c. Strikes -- Contractors who face union worlc stoppage in the case where they have to rely on such a work force in order to complete the Work. d. Amendments -- amendments in the original scope of work, which can be reasonably shown to require an extension of the time allowed for completion. e. Other delays -act or neglect of the Owner, or of an employee of either, or of a separate contractor employed by the Owner, or by changes ordered in the Work or by unavoidable casualties or other causes beyond the Contractor's control. Section 14. Change Order 14.1. The HRA shall have the right, within the general scope of the Work and without notice to any surety or sureties of the Contractor, if any, to make changes in the Work, either by altering the nature of the same or by adding to or deducting from it. All changes shall, except in the case of emergencies endangering the safety of persons or property, be made by written Change Order. The parties shall determine the effect of any Change Order on the Contract Price and project schedule by mutual agreement. The Contractor shall promptly comply with any and all written Change Orders. No such Change Order shall be deemed to invalidate the remaining terms and conditions contained in the Contract. Section 15. Waiver of Liability 15.1 It is agreed that the Work is undertaken at the sole risk of the Contractor. The Contractor does expressly forever .release the HRA and the City of Richfield from any claims, demands, injuries, damage actions, or causes of action whatsoever, arising out of or connected with the Work. Section 16. Indemnification 16.1. Any and all claims that arise or may arise as a consequence of any act or omission on the part of the Contractor, its ,agents, servants, or employees while engaged in the performance of the Work shall in no way be the obligation or responsibility of the HRA or the City of Richfield. The Contractor shall indemnify, hold harmless, and defend the HRA and the City of Richfield, its commissioners, council members, officers, employees, successors, and assigns against any and all liability, loss, cost, damages, expenses, claims, or actions, including attorney's fees which the HRA and the City of Richfield, its commissioners, council members; officers, or employees may hereinafter incur or be 9 ~~- rc~ required to pay on account of injury to or death of any person or persons or damage to any property arising out of or by reason of any act or omission of the Contractor, its agents, servants, or employees in the execution, performance, or failure to adequately perform its obligations under this Agreement, whatever the cause of such ,injuries or damage. Section 17. Insurance 17..1. The Contractor agrees that in order to protect itself, the HRA, and the City of Richfield under the indemnity provisions set forth in Section 16 of this Agreement, it will at all times during the term of this Agreement, maintain, at a minimum, the following insurance policies: a. Workers Compensation Insurance. The Contractor shall maintain worker's compensation insurance in compliance with all applicable statutes including Chapter 176 of the Minnesota Statutes. Such policy shall include Employer's Liability Coverage and at least such amount(s) as are customarily provided in worker's compensation policies issued in Minnesota. Contractor further agrees to require all subcontractors and independent contractors to maintain worker's compensation insurance in compliance with all applicable statutes and to monitor the compliance of such subcontractors and independent contractors with the applicable statutes. b. Commercial General Liability Insurance. The Contractor shall maintain Occurrence Based Commercial General Liability Insurance ("CGL"), providing coverage on an "occurrence", rather than on a "claims made" basis, which policy shall include coverage for the Completed Operations Hazard, and which shall also include a Broad Form General Liability Endorsement, ISO number GL 0404, or an equivalent form (or forms), so long as such an equivalent form (or forms) affords coverage which is in all material respects at least as broad. Any equivalent form (or'. forms) of coverage shall be approved by the HRA. The Contractor agrees to maintain total liability policy limits of at least One Million Dollars ($1,000,000), applying to liability for Bodily Injury, Personal Injury, and Property Damage, which total limits may ~e satisfied by the limits afforded under its Occurrence Based CGL policy as specified above, or by such policy in combination with the limits afforded by an Umbrella Liability Policy (or policies) provided, however, that the coverage afforded under any such Umbrella Liability Policy shall be at least as broad as that afforded by the underlying occurrence based CGL Policy as specified above. c. Automobile Liability Insurance. The Contractor shall maintain automobile liability insurance covering liability for Bodily Injury and Property 10 3~-i ~ Damage arising out of the ownership, use, maintenance, or operation of all owned, non-owned, and hired automobiles and other motor vehicles. Such policy shall provide total liability limits for combined Bodily Injury and/or Property Damage in the amount of at least One Million Dollars ($1,000,000) per accident, which total limits may be satisfied by the limits afforded under such policy, or by such policy in combination with the limits afforded by an Umbrella Liability Policy (or policies) provided, however, that the coverage afforded under any such Umbrella Liability Policy shall be at least as broad as that afforded by the underlying automobile liability insurance policy. The HRA and the City of Richfield shall be named as "additional insured" parties with respect to the insurance policies specified in (b) and (c) above. The Contractor shall not commence work until a Certificate of Insurance evidencing all of the insurance policies required above is approved and a written Notice to Proceed is issued by an authorized representative of the HRA. The. HRA shall, at any time during the term of this agreement, have the right to require that the Contractor secure any additional insurance, or additional feature to existing insurance, as the HRA may reasonably require for the protection of its interests or those of the public: It is expressly understood that the HRA does not in any way represent that the minimum insurance coverage set forth in this paragraph is sufficient or adequate to protect the interest or liabilities of the Contractor. Section 18: Bond 18.1. No payment or performance bonds for the Work shall be required pursuant to Minn. Stat. § 574.26. _ Section 19: Lien Waiver 19.1. Neither the Contractor nor any subcontractor or other. person or entity furnishing labor, equipment, or materials in connection with the Work shall file any mechanic's lien against the HRA's buildings, structures or land or any part thereof, provided that the HRA makes all payments due to Contractor under this Contract. The Contractor shall protect, defend, indemnify, and hold harmless the HRA and the City of Richfield from any and all claims, demands, or actions of whatever nature arising out of work, labor, equipment, or materials furnished by the Contractor or its subcontractors in connection with the Work, provided that the HRA makes all payments due to Contractor under this Contract. Payment of the Contract Price shall not be due until the Contractor has delivered to the HRA lien waivers acceptable to the HRA, which release the HRA from all liens that may arise in connection with the Work. The Contractor shall list on the attached Exhibit A the names of all suppliers and/or subcontractors that will provide materials, services, or labor in connection with the Work. The Contractor will notify the HRA of any changes in this list prior to the commencement of the Work. 11 ~~--~ Section 20. Subcontractors 20.1. Contractor agrees to bind every subcontractor by the terms, conditions, and provisions set forth in the Contract that are applicable to the subcontractor's work, unless otherwise specifically agreed otherwise in writing by the HRA. Section 21. Assignment 21.1. This Contract shall be binding upon the Contractor, its legal representatives, heirs, successors, and assigns. No assignment or attempted assignment of this Contract or any rights hereunder shall be effective unless the written consent of the HRA is first obtained. No such assignment, even if consented to by the HRA, shall relieve the Contractor from liability under this Contract for the performance and completion of the Work in accordance with the Contract. Notwithstanding the foregoing, Contractor shall be entitled to use subcontractors to perform the Work. Section 22. Entire Agreement 22.1. The Contract contains all the terms, conditions, and provisions pertaining to the Work to be completed by the Contractor, there being no other understandings, agreements, or warranties, express or implied. All prior negotiations and dealings regarding the subject matter of the Agreement are superseded by and merged into the Contract. Section 23. Applicable Law 23..1. This Contract shall be construed in accordance with and governed by the laws of the state of Minnesota. - Section 24. Amendment 24.1. This Contract may be modified or amended only with the written approval of the HRA and the Contractor. Section 25. Construction 25:1. In the event that any one or more of the provisions of this Contract, or any application thereof, shall be found to be invalid, illegal, or otherwise unenforceable, the validity, legality, and enforceability of the remaining provisions or any application thereof shall not in any way be affected or impaired thereby. Section 26. Authority 26.1. Each of the undersigned parties warrants that it has the full authority to execute this Contract, and each individual signing this Contract on behalf of a corporation hereby 12 ,~~-13 warrants that he or she has full authority to sign on behalf of the corporation and that he or she represents and binds such corporation thereby. Section 27: Waiver 27.1. No failure by the HRA to insist upon the strict performance of any covenant, duty, agreement, or condition contained in this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute a waiver of any such breach or any other covenant, agreement, term, or condition, nor does it imply that such covenant, agreement, term, or condition may be waived again. Section 28. Payments to Contractor and Completion 28.1. The Contractor shall be paid upon completion of the Work in accordance with the payment schedule of the HRA, if any, and this section. 28.2. Application for Payment. Prior to receiving payment for Substantial Completion of the Work, the Contractor shall in writing state that the respective portion of the Work has been substantially completed and is free and clear of all liens as provided in this Contract. Upon Substantial Completion and inspection and verification by the HRA, the payment for that portion of the Work shall be made. Final payment shall be made when Contractor certifies that Final Completion has been achieved and verified by the HRA. IN WITNESS WHEREOF, the parties have caused this Contract to be duly executed in their names and behalves and on or as of the -date and year first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By By Suzanne M. Sandahl Its Chair Steven L. Devich Its Executive Director 13 3~-~~ CONTRACTOR By Its By Its THIS INSTRUMENT DRAFTED BY: Kennedy & Graven, Chartered (MTN) 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (612) 337-9300 314396-v1.DOC 14 ~1=~-I~ EXHIBIT A LIST OF SUPPLIERS AND SUBCONTRACTORS Premier Turf and Irrigation, Inc. J&J Contracting A-1 AGENDA ITEM # 3B REPORT # 36 STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING . SEPTEMBER 21, 2009 REPORT PREPARED BY: REPORT PRESENTER: KAREN BARYON, COMMUNITY DEVELOPMENT ASSISTANT DIRECTOR NAME, TITLE JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: ~QtiIG REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of a resolution authorizing the purchase of real property located at 6321 Penn Avenue South, contingent upon a finding of consistency with the Comprehensive Plan by the Plannin Commission. I. RECOMMENDED ACTION: By Motion: Approve the attached resolution authorizing the purchase of real property located at 6321 Penn Avenue South, contingent upon a finding of consistency with the Comprehensive Plan by the Planning Commission. II. BACKGROUND The Housing and Redevelopment Authority (HRA) has budgeted $600,000 to be used for strategic property acquisitions along Penn Avenue to facilitate the revitalization of the Penn Avenue corridor between Highway 62 and 67th Street. Staff has actively monitored the corridor for potential property acquisitions. In July of this year, staff was contacted by Ms. Gina Vale regarding the sale of a property she recently inherited located at 6321 Penn Avenue. 092109 6321 Penn Ave Acq The acquisition of this property would facilitate the future redevelopment of the 6400 block for a number of reasons: • The subject property is the only single-family residence located along the Penn Avenue corridor; • The zoning for this property and for the surrounding area has been changed to Mixed-Use Commercial which does not permit single-family residences (although its current use would be grandfathered under certain conditions); • The property is surrounded by small commercial properties to the north and south; • It is located approximately mid-block and would be a key acquisition needed for redevelopment of the block because of the number of small, individually- owned properties in this block that pose added challenges to redevelopment of the block; • Due to the current status of the property, acquisition at this time will not involve relocation expenses. The agreed-upon purchase price is $150,000 plus closing costs and will be paid through the HRA's Bonds of 1996 proceeds. These bonds were issued for eligible capital expenditures in the community. $5,000 will be used as adown-payment, with the remainder paid at closing. County property tax records indicate a 2009 market valuation of $148,000. The Planning Commission must find the acquisition and disposition of the property to be consistent with the Comprehensive Plan prior to purchase. The Planning Commission is scheduled to consider this finding at their September 28, 2009 meeting. There are no immediate plans for this property. Its mid-block location, however, would provide the HRA with a degree of control over the future redevelopment as well as a way to help leverage that redevelopment. III. BASIS OF RECOMMENDATION A. POLICY • Stated goals of the Richfield Comprehensive Plan are: "Beyond the City Center, develop identifiable nodes, corridors and gateways throughout the community" and to "Provide an economic climate within Richfield that will encourage the availability of quality goods, services and employment opportunities for residents." B. CRITICAL ISSUES • The purchase requires the Planning Commission to consider a finding of consistency with the Comprehensive Plan. The Planning Commission will be asked to consider the finding at their September 28, 2009 meeting. • The house is currently vacant and the owners initiated a voluntary sale with the H RA. • The purchase of this property represents a strategic acquisition within the Penn Avenue corridor to facilitate future revitalization and/or redevelopment. C. FINANCIAL • Funding for this activity was provided for in the 2009 HRA Budget. • Purchase price is $150,000 plus closing costs, not to exceed $160, 000. • Hennepin County 2009 assessed market value of the property is $148, 000. D. LEGAL • HRA legal staff drafted the Purchase Agreement and has verified clear title. IV. ALTERNATIVE RECOMMENDATION~S~ • Do not authorize the purchase of the properly. V. ATTACHMENTS • Resolution • Purchase Agreement • Aerial map of area • Photo of property • Land Use map VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A 3L3--/ HRA RESOLUTION NO. RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 6321 PENN AVENUE WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota ("the HRA") desires to purchase certain real property pursuant to and in furtherance of the Penn Avenue Revitalization plan, said property being described as: 6231 Penn Avenue: Described as: Lot 18, Block 12, in "Ray's Lynnhurst", Hennepin County, Minnesota; and WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to acquire real property within its area of operation; and WHEREAS, Housing Funds are available for acquisition purposes. NOW THEREFORE, BE IT RESOLVED, by the City of Richfield Housing and Redevelopment Authority: 1. The purchase price for the property identified is approved at $150,000, plus closing costs not to exceed a total of $160,000. 2. The Chairperson and Executive Director are authorized to execute a Purchase Agreement and to take other actions necessary to purchase the property for the amount set forth in this resolution. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota on this 21st day of September, 2009. Suzanne M. Sandahl, Chair ATTEST: 092109 6321 Penn Ave Acq 0911412009 15:17 14668593689 PINTLER RD_ PHILIPSG PAGE 02168 3~'~ Pi11~CH.ASE A,~CREEM.ENT ~'1-IiS AGREEII~EN'T is made ra,~ of this day of ~` 1 ~ (o ~ ., 2009, by and botweea Regina A: Vale, as Personal Representative of. the Estate of Gregory J. Vale ("Seller.") and the Housing and Rcdevelopbnent Authority in sad for the City o~ Richf eld , a public body corporate ar#d politic under the laws of the State n£MinnESata ~~.iA" or °`Buyer'°). RECT'Z'ALS A. Seller is tl#e ownor of property located at 621 Penn A.veh#ue South, Richfield, Minnesota, which is legally described an the attached Exhibit A ("Property"). ~. The Pxaperty includes includes all plants, shrubs artd trees, storm windows and/or inserts, storm doors, sc~reer~s, awnings, window shades, blinds, curtain-traverses drapery rc1d~, attached lighting fixtures with bulbs, plumbing fixtures, water. beater, beating system, humidifier, central air cottditioning, electronic air Ater, automatic garage door opener with controls, water softcnex, cable television. outlets anal cabling, and built-ins, including dishwasher, garbage disposal, trash compactor, oven(s), coal top stove, microwave oven, hood-fan, intercom and installed carpeting located on the premises which arc the property of Seller. '1'he property also includes tlae following pcrso~nal property: NONE. Sc11cr is responsible for removal of all personal property. Seller may remove the following items, provided Seller does not cause any unnecessary damage to the Property: Upstairs interior doors and associated hardware. AGR.EEMEIV'T l.. O~ox/,AcceptAnce fax Sale oit Fr+~p~riy. The Seller agrees to se11 to the hii~A the Pmpe~rty and the HRA. agrees to purclxase the sa:nn.e, accordintg to the terms of this Agreebrient. 2. ~u,rchase Price fox Property apd Terms. A. FUIt,Ci~ASIG PRICE: The total Purchase 1?ricc for the Property is One Hundred 1Fii~yThousand and 00/100ths Dollars {$150,OOOAU). (1). E.A,Ii.NE5T MONEY. The sums of Dive Thoursand I7allars ($5,000.00) Earnest Money shall bE paid ~by the Buyer to the Seller. (2}: BAI...ANCE DUE SELLER: Buyer agrees to pay by check or electronic transfer of funds an the Closing Datc any reno.aining Balance Due according to the terms of this Purchase A,greem.ent. (3}: DEED1:f1!IARKE7'ABLE T1TL~: Subject to pexfortxtance by Buyer, Se11er 35Gd7Cv3 CSR RCIZS-295 09I14f2009 15:17 14068593689 PINTLER RD_ PHILIPSG PAGE 03!08 3~ ~-3 agrees to execute and deliver a ~Varranty Deed or Personal Representative's L7eed co~~veying marketable title to the Property to Buyer, subject only to the followisxg exceptions: a. - Building and zoning laws, osdxnancos, state and federal regulations. b. Reservation of minerals ar mineral rights to th...e State of ]Minnesota., if a>~y. o. 1'ulalic utility and drainage eaaernents of record which will nat interfere with Buyer's intended use of the Property. (4): 17pCUM~1~TS TO BE I~EL1VEliE17 AT CLOSING BY SB~,LER.. In addition to the Warranty Deed required at paragraph 2B(3) above, Seller shall deliv'e~r to the Buyer: a. Standard form Affidavit of Seller. b. A °`brixag~dovvra" certificate, ~eftiiying that all of the warranties made by Sellers in. tbiis Purchase ,~greetnent remain tRVe as of the date of closa>ag. c. Certificate that Seller is not a fdre7gn national. d. If an environmental ilnvestigation by or on behalf of the Buyer discloses the ~istence of petroleums product or other pollutant, contaminant or otb.er hazardous substance on the Property, either (i) a closure letter Ervin the Minnesota Pollution Can1~ro1 Agency (MPCA) or other appropriate regulgtory authority that rertaediatio>r>i leas been completed to the satisfaction of ~e MPCA or other authority; or (ii) P,,greetnent for remediation/iundero.niflcati.on and security as the HRA. may require. c. Well disclosure certification, ifrequiired, or, ifthere is no well on the Property, the Warranty Deed given pw-suant to paragraph 213(4) above must include the followirxg Statement: "The Seller certifiers that the Scllcr does not lcaow of any wells on the described real prol~~Y•" f Any other documents reaso».ably required by the HRA's title insurance company or attorney tb evidence that title to the Property is marketable and that Seller has complied with the teams off' this purchase Agreement. 356476v3 CBR itC125-295 2 @9/1412@@9 15:17 14@68593659 PINTLER RD_ PHILIPSG PAGE @4!@8 38-~{ 3. Contiuagencies. Buyer's obligation to buy is contingent upon the following: a. Buyer's detet~rnination of marketable title pursuant to paragraph 4 of this Agrcetnent. b. Buyer's deterlttination, in its sole discretion, that the results of the en..vironmental investigatiatt under dais Agreettaent are satisfactory to Buyer; c. ':['lac parties acknowledge that the Richfield zoning ordinance requires that lots in the F, district meet cextain minimum lot width, and axes requuixetxaents. if these standards axe not met, one ox more variances will be necessary prior to constnaetioaa of a new dwelling an the property. if the City does not issue all variances necessary to zanalce the property a buildable lot within the meaning of the toning ord~ixaance, the Buyer at its sole discretion may cata.cal this Furch..ase Agreement; and d, Approval of. dais Agreement by tl.~e HRA's Board. Buyer shall have until the Date of Clositag to remove the foregoing contingencies. 'fhe contingetcies at a, and b. and c. axe solely for the benefit of Buyer and may be waived by Buyer. The contingency at d. may taot be waived by either party. if Buyer or its attorney glues written notice to Seller that tixe contingencies at a., b. c. and d. axe duly satisfied or waived, the tiuyet atad Seller shall pxaceed to olose the transaction as contemplated hErein. If one or mare o~C Buyer's or Seller.'s contingencies is not satisfied, or is not satisfied on tirx~.e, and is not waived, this purchase Agreement shall thereupon be void at the written option of Buyer, Seiler shall xeturn the Earnest Money to Buyer, and Buyer and Seller shall execute and deliver to each other -the tenninati.on of this Purchase Agreeian.ent As a contingent Taurchas+e A,greemexit, the tetxrtination of. this Agreement ig not required pursuant to Mizanesota Statutes, Section 559.21, et. SeC~. ~, 'l<'itl~ Exa~aatidn/Curing Tat1e Defects. 'The Seller. will provide the Buyer with the abstract of title for the. Fropexty, fox updating at $uyer's expense. if the abstract is not availablC, the HRA shall, at its expense atxd within a reasonable t~im~e a$er Seller's acceptance of this Agrent, obtain a aoitamitrnent for title insurance ("Commitment") for the Property. 'T'he BRA gha11 have ten (10) bUSinESS days after xeceipt of the cornmitment and exea~ed purchase ligmeitaent to examine the same and to deliver written. objections to ti#le. if stay, to Seller, ox k1R,A's right to do so shall be deemed waived. Seller shall have until the Closing Date (ox gush later date ag the parties may agree upon) to make fiitle marketable, at the Seller's cost. In the event that title to the Property cannot be made taaarketable or is not na.ade marketable by tlae Sellex by the Closing Datc, then, this Agreement may be terminated at the option of the Buyer. 5. lltea! Estate '1<'aaces and 9pec~al Assessments. Real estate taxes payable in the yeax• of closing will be pxa~rated between the Buyer at~d Seller to the date of closing. Seller shall pay all real estate taxes payable in previous years, the entire unpaid balance of special. assessments, and. all installments of special assessments levied and pending, inciuditag special assessments instailmerits payable after the year of closing. Seller also agrees to pay all assessments xelated to 356476v3 Ctjit RG125-295 3 09f14f2009 15:17 14068593689 PINTLER RD_ PHILIPSG PAGE 05f08 ~IV'~ service oh~rg~ furnished to the Property Prior' to the date of closing (e.g., delinquent water or sewer bills, removal of diseased trees), iuttcluding those charges levied, pendirtg~ or certified to taxes payable in the roar of closing. if closing occurs prior to the date the amotmt of zeal estate taxes due in the year of closing are available from Hennepin County, the current year's taxes will be pro-rated lyascd on the amount due in the prior year. . ~. Closing date. The date o£ closing will be on or before ~Q ~G' .Delivery of a1.1 papers and ~e closir-g shall be nnade at the offices df` HRq 6700 Portland .Avenue South, Richfield, Minnesota 55423, or at such other location as is mutually agreed upon by the parties. All deliveries and notices to I~.P+ shall be made to the above address and rrtarkcd to the attention of '7. passessxoullStalities/l[~emoval of Prol-exty/Escrow. (a) l~oasesslan. The Seller agrees to deliver posseaaian not later than the date of closing. (b) LTdllties. City water and sewer charges, electricity and natural gas charges, i:uel oil and liquid petroleum gas aha11 be pro-rated between the parties as of the date of. closing. Seller shall. arrange fox final readings as of the date of closing. (c) lt'er. canal P'xaperty. The Se11ex agrees to remove all debris anal all personal property not included herein from the Property before the possession date. Persvrtai property not so rernovcd shall be deemed forfeited to and shall become the property of the .Buyer. 'The Buyer may inspect tlae Property iyxrmediately prior to closing and deduct frot» the purchase price payablo at closing an amount reasonably necessary to pay for the cost of removal o£ arty debris of personal property then remaining on the Property. Tl~e provisions of this paragraph shall not xaexge with the deed and shall survive closing on the property. 8. Seller VV-axXa~ties. (a) Sewer and water. Seller warrants that the Property is connected to City sewer and City orator. (b) MecltarA,lcs' Liens. Seller wartartts that, prior to the closing, Seller shall pay in full al.l axxtou~nt~ due for labor, materials, tnachinery,fixturES or tools furnished within the .120 days imrttediately preceding the closing iat conztection with constiruction, ait~xation or repair of any structure upon or improvement to the Property. (c) lVt~tices. Seller warrants that it has not received any noticE from az~y gov~crntnental authority as to violation of any law, ordinance or regulation in connection. with the Propex~y. (d) Tenants. Seller warrants that the Property is not now occupied by tenants and ways not occupied by tenants at the time the Seller first received the Buyer's written o£f"er to purchase rho property. (e) )B1COker Co~uuwni,ssian. Each party represents to the other that it has not utilized the 356476v3 C81~ ~C125-295 89l14l20~9 15:17 14668593689 PINTLER RD_ PHILIPSG PAGE 86!08 3~-~O servire<c of atay real estate broker or agent in cotnnection with this Purchase Agreement or the transaction contemplated by this Purchase Agreement. Mach party agrees to indexntufy, defend, and hold harmless the other party against and in respect o£ any such obligation and liability based in any way upon agteelnents, atxangements, or understandings made ar claimed to have been made by the party with any third person. {f) Structures. The Seller warrants that the buildings, if ~fllly, are entirely within the boundary Lines of the Property. The patties acknowledge that the Property is being sold in "as is„ condition relatint; to the structural, operational, and mechanical systems. 9. Closarig CostslXiccording Fees/Dced Taa~. The HI~A will pay: (a) the closing foes charged by the title insurance or otlxer closing agent, if az~y, utilized to close the transaction contemplated by this Agreement; (b) the premium for title insurance policy, if any, obtained by the HR.A,; anal (c) the recording fee for the deed transferrittg title to the ~R,A. Seller will pay all other fees normally laid by sellers, including (a) fees and charges related to the filing of an.y lnstntrnent required to nr~ake title marketable attd (b) any state deed tax, txansi`er tars and recording fees required to enable the HI~.A. to record its deed from Seller under this Agreement, Each, p~-rty shall pay its own attortxey #'ees. ] 0. 1[uspeetinns. From the date of this Agreement to the Date of Closing, H1tA, its einpl.oyees and agents, shall be entitled to eater upon the Property to conduct such, surveying, inspections, investigations, soil borings and testing, aid drilling, monitoring, sampling and testing of gtnundwater monitoring wells, as the HRA shall elect; provided, that Seller is given at least 2~ hours'. notice. 11. ][tns~ of Loss. It there is any loss or damage to the Property between the date hereof atxd the date of closing, for any reason including fire, vandalism, flood, earthquake or act of God, the risk of loss shall be on the Seller. if the Property is destroyed or substantially damaged before the closing date, this Aurchase Agreement shall be~oztte nu11 aad void, at the HRA's option. At the request 'of the HR/A, Seller agrees to sign. a cancellation of Purchase .Agreement. 12. Default/R.~medies. if the Buyer defaults in any of the covenants hErcin, the Seller may terminate this Purchase Agreement, and on sucks termination all payments trade hereunder shall be retained by the Sellor as liquidated damages, time being of the essence. This provision shall not deprive either party of the night to enforce specific perfozxx~.ance of finis Purchase Agreement, provided this Purchase Agreement has not terminated and action to enforce specific perfornance is commenced within six months after such right of actiozt arises. in the overt the buyer defaults in its performance of the terms of this Purchase Agreement and Notice of Cailcellotiott is served upon the Buyer pursuant to Minn. Stat. Section 559.21, the terminatiozi period ahall be thirty {30) days as permitted by Minn. Stat., Section 559.21, Subd. ~. 13. Notice. Any notice, demand, request or other communic~atiort which may or shall be given ox served by the porkies, shall be deemed to have been given or served on 1fie date the gamo is porsonally served upon one of the fallowing in.dicatcd recipiertt,9 for notices or is deposited in the 35b4TUv3 CBR EtCI ~5~295 69!14!2009 15:17 14669593689 PINTLER RD_ PHILIPSG PAGE @7108 ~~~ United States Mail, registered or certified, return receipt requested, postage pxepaid end addressed a~~ fo11c1ws: SELLER: Regina A. Vale, as d. Vale Personal Representative of the Estate of Gregory P.4. Box 184 ' Philipsburg, MT 59558 Daniel S. Miller, Attorney at Law Daniel S. Miller, P.A. X625 Lyndale Avenue Soutki X505 Richfield, MN 55423 BUYER: Housing and Redevelopment ,Authority oi'the City of Richfield Attn: R,aren Harlot!. X700 Portland Avenue South Richfield, MN 55423 AGENT: Kennedy & Graven, Chartered A'I"X'N: Comnc A. Heine anal Cathenne X3. Rocklitz 470 CT.S. Bank Plaza 2p0 South Si~tli Street Minneapolis, MN 55402 l4, Entire Agreement. This Purchase Agrcetnent, Exhibits, and othez amendments signed by the parties, shall constitute the srltire ,Agreement between Seiler and the HRA. and supersedes any other written or oral agreements be~Cween the parties relating to the Property. This Purchase Agreement cam. be modified only iza. a writing properly signed otr. behalf of Seller and tl~e HRA, 15. Survi~vnl. Notwithstanding a><><y other provisions of law or court decision to the co~~trary, the provisions of this Purchase Agreement shall survive closing. ~ gSS ~VHERrQF, the undersigned have executed this Agreornent on the date and year above. Buyer: Housing and Redevelopment A.ntbarity Seller: of the City of Richfield . By; egina A. Vale, as Personal Ito Chair Representative of the Estate of Gregory J. Vale And by: ,~ Its President 35G47(v3 C$fi x(:125.295 09/1412009 15:17 14068593689 PINTLER RD_ PHILIPSG PAGE 08108 ~~~ V EXHIB~'~' A Le ~escri tio~ of Pro ert Lot 18, Bloch l2, in `°.R.ay's Lynm}xuxsl:", according to the reca~td~.l plat thereof. 35647G~3 CBR RC125-295 B~] ._ c~ 6321 Penn Avenue Site Plan 0 37.5 75 150 225 300 Feet ,, .. _.. , f ~ `' ' , `~~ I ~,~,,-,.: , f t S ~~ ~S C ~`w ' - '2'~ .. y b '" ~ ~. 9 y~ ,, ' Y< -~ , y~1,4 ~~.° ~~'~pp'~ yy ` ~ r uA+ : y:.~ J r.P ~ ~„ t /~ IPA ~ ,'~i a ~ ~ ~ rt .~ r`r-C~ ~ ~ ~,~ ~, ~ ~ g~ .. •,~ .. ~ 'emu ~.{~, ~',~' ~~ ..Yr" _ ~' , a .' r - ~: ~. ~.. ~i y 9 ~ F^ H. •.. ,:. , r~ r ~Y r ~. K ~~_'iw1 ~:.: ~ ~ J, :. p. y~ f _ ~ ~~ ~ ~ ~ '~ - ~ .. ~ „yT' ~ . (rd T ~ ~ ~ _ ;.' 1 h;~ ~ ~ 1l t~i~ ..~ `, ~s 't ~ .. ~• .. ~~~ Y~ ~' R- 'ik!'kg ~'~::~~ ? ' ~a .r~ t dt. . ~{~ '`. ~ ~ ~` o of . •i ~ ",~ # 'y ~~' ~4 P i 1v « ~i < Y: ~ ~ y 9 4 t Y _iY , y ;•y' ,+a~ J ?.-~.. . Cu ~ ~ ~ .~t ' ~ .. -. r, 4 .0 ~ } - .,4 F r 'r, a. '~~~ :..'ii-@ a y' ,, ` ~~ to ~8-13 6321 Penn Avenue Land Use RES RES RES RES COM RES RES RES RES RES RES RES RES RES QUASPBLC RES RES RES RES RES RES RES RES APT RES RES APT COM APT RES RES APT APT RES RES CHURCH RES RES RES RES IND RES RES RES RES RES COM APT RES RES RES 63RD ST COM COM RES RES COM RES COM COM RES CIS RES COM RES COM ES R COM COM w Q RES RES RES RES RES RES RES RES RES RES RES RES RES RES RES RES RES RES RES RES RES RES RES RES RES RES RES RES RES RES RES w VAC > RES RES coM TH ST 64 RES RES RES RES RES z z W RES RES O RES w COM APT > J RES RES RES COM COM •~ RES RES z RES COM RES RES RES RES -Residential APT-Apartment COM -Commercial IND -Industrial CHURCH -Church QUASPBLC -Quasi Public 0 60 120 240 360 480 Feet COM COM COM COM COM 64TH ST N AGENDA ITEM # 3C REPORT # 37 J STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING SEPTEMBER, 21, 2009 REPORT PREPARED BY: CHRISTINE COSTELLO, COMMUNITY DEVELOPMENT SPECIALIST NAME, TITLE REPORT PRESENTER: JOHN STARK COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE 1 ITEM FOR HRA CONSIDERATION: Consideration of a resolution authorizing a Purchase Agreement with the City of Richfield for the sale of -land at 6758 Portland Avenue for an amount of $200,000. I. RECOMMENDED ACTION: By Motion: Adopt the attached resolution authorizing a Purchase Agreement with the City of Richfield for the sale of land at 6758 Portland Avenue for an amount of $200,000. II. BACKGROUND The Richfield Housing and Redevelopment Authority (HRA) currently own a vacant residential property located at 6758 Portland Avenue. This property lies within the area contemplated for the new Richfield City Hall. The house was originally purchased by the City in 1996 for $85,000. The City's intent in purchasing this house was to provide space for future City Hall and/or Heredia Park needs. In June 2005, however, the HRA purchased the house from the City for an amount of $200,000. The HRA took this action as a way to provide the City of Richfield with funding to pay for costs associated with revising the City's Zoning Ordinance and Comprehensive Plan. The HRA used money from its Development Opportunities fund to purchase the property. This fund is used to help initiate redevelopment projects prior to, or in the absence of other funding sources. 092109-Sale of 6758 Portland to City.doc While that fund currently has a cash balance of $208,894 it has been dwindling substantially over the years (in 2002 the available cash was $773,000). At the time the property was purchased, the HRA's expectation (as evidenced by a March 21, 2005 HRA staff report) was that, "The sale of the property to the HRA is contingent upon a potential resale back to the City at the current purchase price of $200,000 should the property be needed for future expansion of a City Hall or other use." At the July 8, 2008 City Council meeting it was suggested that the HRA could sell the property to the City for $1 or some other nominal price below its actual market value. The rationale for such a sale would be to decrease the amount of money-that the City might have to spend on assembling the site, and ultimately, issue in bond sales. On July 28, 2008, however, the Richfield HRA voted 5-0 to resell the property to the City for $200,000 based on the commitments made when they purchased the property. III. BASIS OF RECOMMENDATION A. POLICY • Approval of the Purchase Agreement will be contingent upon all required approvals. • The HRA purchased this property from the City in March 2005 for an amount of $200,000. • The sale of 6758 Portland Avenue, initially to the HRA, provided revenue to the City's general fund to help defray the cost of updating the Comprehensive Plan and the Zoning Ordinance. • In both 2005 and 2008, the HRA affirmed its expectation that they would be fully reimbursed for the $200,000 purchase price of the house in the event that the City wanted to repurchase the property. • The sale proceeds of the house will be returned to the Development Opportunities Fund (which was the original source of funding). B. CRITICAL ISSUES • The Planning Commission is scheduled to consider a resolution finding that the sale of the property conforms to the general plans for the development and redevelopment of the City on September 28, 2009. • The City will be requested to consider this Purchase Agreement on September 22, 2009. • Certain land conveyances are subject to the City's ability to obtain title and possession. • Site preparation and demolition is scheduled to start this October in order to keep on schedule for the construction of the new City Hall next spring. C. FINANCIAL • In July 2008 the HRA directed staff that any sale of the property to the City would provide repayment-in-full to the HRA of $200,000. The motion was carried in a vote of 5 to 0. D. LEGAL • Legal counsel reviewed the Purchase Agreement and Resolution. IV. ALTERNATNE RECOMMENDATION(S~ • Delay or do not approve the Purchase Agreement. V. ATTACHMENTS • Resolution • Purchase Agreement • Map VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A ~~~~ HRA RESOLUTION NO. RESOLUTION AUTHORIZING PURCHASE AGREEMENT WITH THE CITY OF RICHFIELD FOR THE SALE OF LAND WHEREAS, the Housing and Redevelopment Authority. in and for the City of Richfield -.(the "HRA") is the owner of certain real estate in-the City of Richfield legally described` in the attached Purchase Agreement; and WHEREAS, the City desires to buy, and the HRA desires to sell such real estate for an amount of $200,000; and WHEREAS, a proposed Purchase Agreement (the "Agreement") for the transaction has been reviewed by the HRA Board and is informed as to it contents. NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield: 1. The Purchase Agreement is approved, contingent upon City Council approval of a sale ordinance as required by the City Charter. Execution and delivery of a deed of conveyance by the HRA shall be deemed conclusive determination that the contingency has been met. 2. Subject to the contingency, the Chairperson and Executive Director are authorized to take all steps and do all things necessary to accomplish the transaction contemplated by this Agreement. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 21st day of September, 2009. Suzanne M. Sandahl, Chair ATTEST: Joan Helmberger, Secretary 092109-Sale of 6758 Portland to City.doc ~~~~ PURCHASE AGREEMENT This Agreement is made as of , 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 Minnesota ("Seller") and the CITY OF RICHFIELD, a Minnesota municipal corporation ("Buyer"). Recitals A. Seller is the owner of certain real estate in the City of Richfield, County of Hennepin, legally described on the attached Exhibit A (the "Property"). B. Buyer desires to acquire the Property for redevelopment and construction of a new city hall. C. Seller deems it to be in the public interest to convey the Property to the Buyer pursuant to the terms of this agreement. D. This agreement is made pursuant to Minn. Stat. § 465.035 and § 471.64. Term 1. Purchase Price. The purchase .price for the Property is Two Hundred Thousand Dollars ($200,000.00), which the Buyer shall pay at closing. 2. Deed. Seller agrees to convey the Property to the Buyer by quit claim deed. Seller and Buyer agree to execute and deliver customary closing documents, including but not limited to affidavit of seller. 3. Title. Buyer shall be responsible for reviewing the condition of title to the Property and for resolving any title defects, if any. Buyer may refuse to accept title to the individual property if Buyer finds the condition of title to that property to be unsatisfactory in any respect. 4. Closin .The closing shall occur on a date that is mutually agreeable to the parties. 5. Closing Costs. The Seller will pay real estate taxes for all years prior to the year of closing. The parties will prorate taxes payable in the year closing to the date of closing. Seller shall pay all special assessments levied against the Property prior to Closing. Buyer shall assume all pending special assessments. Buyer shall pay deed tax and all other closing costs not specifically mentioned in this paragraph. 3C -3 CITY OF RICHFIELD By Debbie Goettel, Mayor By Steven L. Devich, City Manager HOUSING AND REDEVELOMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By Suzanne M. Sandahl, Chairperson By Steven L. Devich, Executive Director 2 3C-~ EXHIBIT A Legal Description of Property 6758 Portland Avenue S The south 50 feet of that part of the Southeast'/4 of the Northeast'/4 of the Southeast'/4 of Section 27, Township 28, North, Range 24 West of the Fourth Meridian, described as follows: Beginning at a point 30 feet north of the Southeast corner of the Northeast'/a of the Southeast Quarter of said section; thence north along the East line of said section a distance of 100 feet; thence west parallel with the South line of said Northeast'/4 of the Southeast'/4 of said Section 27 a distance of 168 feet; thence south parallel with the East line of said Section 27 a distance of 100 feet; thence East parallel with the South line of said Northwest'/a of Southeast'/4 of said Section 27 a distance of 168 feet to the point of beginning, Hennepin County, Minnesota. ~J ~ - 5 Site Plan 6758 Portland Avenue 0 30 60 120 180 240 Feet A AGENDA ITEM # [~ REPORT # 38 STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING SEPTEMBER 21, 2009 REPORT PREPARED BY: MICHELLE LEWIS, HOUSING SPECIALIST NAME, TITLE REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW:. REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of Purchase Agreement from Elissa McGaha and Andre Jaeger to acquire 7422 4th Avenue for $150,000, with the Housing and Redevelopment Authority paying $4,500 towards closing costs and/or prepaid expenses. I. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: Accept or deny the attached Purchase Agreement from Elissa McGaha and Andre Jaeger for 7422 4th Avenue. II. BACKGROUND The Housing and Redevelopment Authority (HRA) became the owner of 7422 4th Avenue on February 27, 2007 as a result of redeeming the property from the .foreclosure process. The HRA completed remodeling the house late in 2007 at which time the HRA was named in a lawsuit. regarding the property. The property is now free from encumbrances and is ready for sale. 092109 7422 4th Sale PA The cost to acquire, rehabilitate and hold the property to date is as follows: Acquisition: $119,433 Rehabilitation: $26,360 Point of Sale Repairs $2,500 (est.) Holding costs: $9,453 TOTAL: $157,746 Elissa McGaha and Andre Jaeger submitted a Purchase Agreement to acquire the property for $150,000, with the HRA required to pay $4,500 towards closing costs and/or prepaid expenses. (net proceeds of $145,500) Staff is not providing a recommendation on this offer. If the HRA's intent is to recoup their cost on this property, then the net proceeds to the HRA should be at least $145,793. This would cover the costs to acquire and rehabilitate the home, but would not cover the "holding costs" (which. include utilities, lawn mowing, etc), as these costs do not relate to the actual value of the home. To achieve the net proceeds of $145,793, a potential counter-offer could set the price at $152,793; provide the purchaser the requested $4,500 towards closing costs and/or prepaid expenses and then escrowing $2,500 of the proceeds for the subsequent owner to fund the required point-of-sale repairs. One of the functions of an HRA, however, is to provide affordable housing. The income of the family making the offer on this house is at approximately 80% of area median income -which has been a historical target for assisting with housing needs. If the HRA accepts the offer as presented, it will be achieving the goal of providing affordable for-sale housing. III. BASIS OF RECOMMENDATION A. POLICY • The HRA adopted a Foreclosure Policy in September 2006 and directed staff to acquire the house at 7422 4th Avenue, renovate it and sell it at market rate. B. CxITICAL ISSUES • In order to make the house affordable for them, the buyers are requesting the HRA pay all closing costs and approximately $500 towards prepaid expenses. The HRA has typically paid half of the closing costs in previous transactions. • The HRA has owned the property for more than two years and holding costs continue to increase. • The Purchase Agreement states that the property is sold in "as is" condition. C. FINANCIAL • The HRA acquisition and rehabilitation costs have been $145,793 to date .plus holding costs of $9,453 (with an additional $2,500 of point of sales repairs required). • The 2009 assessed value of the home is $163,000. • Staff was originally marketing the house at $180,000 (based on its previous assessed value), but have been marketing the home at $160,000 for,the past nine months. • The HRA has been marketing this home for approximately 18 months and have had several conversations with prospective buyers, however, no offers have been made previous to this one. • Holding costs (for lawnmowing, utilities and other maintenance) will continue to accrue if the HRA does not sell the home in the near future. D. LEGAL • Legal counsel has reviewed the Agreement. IV. ALTERNATIVE RECOMMENDATION~S~ • Make acounter-offer and authorize staff to negotiate with the buyer to satisfy the HRA's counter-offer. Deny the Purchase Agreement. V. ATTACHMENTS • Resolution Purchase Agreement Photos VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Elissa McGaha and Andre Jaeger ~-i HRA RESOLUTION NO. RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT 7244 4th AVENUE TO ELISSA MCGAHA AND ANDRE JAEGER WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) desires to develop certain real property pursuant to and in furtherance of the Mortgage Foreclosure Response Program adopted by the HRA, said real property being described as follows: Address Legal 7244 - 4th Avenue The East'/2 of the South 59.45 feet of the North 386.7 of the East'/2 of the Northwest Quarter of the Northeast Quarter of the Southeast Quarter of Section 34, Township 28,~Range 24 WHEREAS, the HRA is authorized to sell real property within its area of operation after public hearing; and WHEREAS, the HRA purchased and rehabilitated the described property in accordance with the Mortgage Foreclosure Response Program; and WHEREAS, a public hearing has been held after proper public notice. NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Richfield: 1. A public hearing has been held and 7422 4th Avenue is authorized to be sold for at least $150,000.00 with the HRA paying $4,500 towards closing costs and/or prepaid expenses to Elissa McGaha and Andre Jaeger in accordance with a Purchase Agreement with the HRA. 2. The Chairperson and Executive Director are authorized to execute a Purchase Agreement and other agreements as required to effectuate the sale to Elissa McGaha and Andre Jaeger. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 21st day of September, 2009. Suzanne Sandahl, Chair ATTEST: Joan Helmberger, Secretary 092109 7422 4th Sale PA ~f-a M,S.B.A. Real Property Form [Vo.1 {1894; Rav.1998; Rev. 1897; Rev. 2002; Rev. 2004: Rev. 2~6; 2007; 2008) Minnesota Standard Resit~g(ltial Purchase Aat~eernent PURCHASE AGREEMENT' !PAGE 1 of 10 MINNESOTA STANDARD RESIDENTIAL PURCHASE AGREEMENT ©CopydgM 1995, 1887, 2002, 2005, 2007, 2008 Mkusesola State Bar Association, Minnea~hs, MinneaoW. BEFORE YOU USE OR SIGN THIS CONTRACT, YOU SHOULD CONSULT WITH A LAWYER TO DETERMINE THAT THIS CONTRACT ADEQUATELY PROTECTS YOUR LEGAL RIGHTS. Mksrsesota State Bar Ass~otdatiion dleclaims arty I~blTdy arising out of use of itsts Conn. 1 L PARTIES. This Purchase Agreement fs made on ~ ~ ~ 'T 1' ~ q , by and 6e(ween 2 Houein and Redeve meet Auth in and tar the C of Ridrfiefd 3 (Manlaf status] a pW/UC bade corporate and po6tlc order the laws Minneaoia 4 Of (seNeYs addr~sj 870D Portland Avemte Sank. Ritdsfl Mlrmesda 56423 SELLER, and s ~ i : s 5~ Y~C (-~ ny]_nc.~ ,it,. Z (~ c~.:y~ -~i~ ~ ca:~ 6 as Joint tenants [stn'ke "]clot 1enaMs' U'tenancy-in- n is intended] of Jbgyer's address) 7 1~,~i'i -•2-a. GI it.A.rt~ s YLtt C~JIn~-~i ~.t l1 y ,~ ~ 1 2,-c~-i~-3 . Bt1YER. a 9 2. OFFER/ACCEPTAttICE. Buyer oRere to purchase and Seller agrees to sell real property legally desa8red as: 10 it 11re East t/2 of the South 59.45 feet of the NoNr 3~.7 feel of the East 12 of the Northwest Ouster of the NoNseast Quarter of Ure u Sordtreast Quarter of Sedion 34. Township 28, Range 24 is (Properly Tax Idenfficetlon Number Or Tax Parcel Number 34fi28.24-41-0055 1 n la located et 7422 Fourth Avenue BOUth , Cily of RlchAeld rv County of Hennepin ,Slate of Minnesota, Zip Code 554?3 20 zl 3.ACCEPTANOEOEADIINETheacoeptanwdateoftl115PurdtaseAgreementlstheda disdeliveredbythelestpanysipMr~toUteotherparty. zz ThN otter to purchase, unless accepted sooner, shall be void at 11:68 ant., on jdatej-?~g__, and to such event all eanrest t3 money shall be refunded to Buyer. zs 26 27 2FV 30 3l 32 33 3a 35 36 37 38 39 40 41 az 43 44 45 46 a7 49 SO 51 s2 53 ss ss s7 s9 4. flXTURES AND PERSONAL PROPERTY. For the purposes of this Purchase Agreement, °Fldures' are kerns that are embedded in the land or attached to the buUding(s) and cannot Oe removed without damage To the rest property. Tire method by which the fixture Is "attached' count be screws, naUs, adheakres, orany othermechanical conrredlonwhidtshavsSeBes's intemto meketheltem a reletivelypennaneM partofthe realestate, Fxamplea otfodurea are doors and cabinets. "Personal proper includes ttema that are not attadred to the buildk~g(sj or embedded in the Iand and fhetareremovatNewtthoutdamagetotherealproperty. Examplesofpersatalpropertyarefreestanding(not'buittin'~appUancesandfianiaue. Buyer and Seller should wnsider caretuUy Bte tlxWres and personal property to be indrtded in the sale. For example, a miner attached to a wad try screws ornatb is a fodure, whlk a mirror tnirtg from a nah or pichre hanger Is personal property. A. FIXTURES INCLUDED tN THE SALE TtUe ro tbckmes passes to Buyer with the deed. AU tbdraes except those excluded et B., belax, are hreludal in this sate such ~: garden bulbs. plants, ShlLbe, trees, landsnping, storm windows and lrmerts, atorrrr doors and irsserts, screens, s, minasardses~nirars, pbinats, coraster tops, doors, door hardware, Plumbing fildrrres, sump Pumps, Water heatBre, heetktg systems, 11884r1gsIoves, builFin a'r eondltlonirtg units, ~ , tnstelled FROM THE SALE. Thatollowingfosluresareexcludodiromttib<ealeandwiUtx:temovedbySellerprbrtodostng: Norte Airy damage to the nrel properly that orxras in Beliefs removal of tltese hxtta+es wIU be repaired try Seller prior to closing. TM following excluded and removed ibdures vnTl be replaced by 5etler wUh a tunc6anat equivelenk 1. f a ~ e Atdosing orpdOrtodosirg, SellershaU prouitle forpayment of, satiskdionof, orreleaseofanyexisUngtiens, claims, orencunbranoes on the fixtures, extapt for the tbllowirO encumbrances wMch Buyer accepts or assumes nest heref Na,e Q PERSOtiN. PROPERTY: Arsy personal property io be purdrased by Buyer is Usled on the atached Personal Property Agreement S.. PRICE AND TERMS. The price for rite real property is Dollars (; t~7y 1:'LY7, Gil, wNdt t3uyer shah Pat as ~Ibw~s:n 1//!!' ~ /S !~ 1 Earnest morrey of $ ~~ LJ©r ~ ~ by [CASH. CHECK, NOTE -state wtridr] ~ ~-C.A.+ payable to (select one:] Seller, to be depostted and field by Soler (and may be commingled with Seller's oifter fursds) pending dosing, Seller's lawyer, to be deposited and herd M the lavryefs crest account perding dosksg, ~ Seller's broker, to ire deposited w trekl by broker according to the requirements of Minnesota Statutes, [] Other jdessxibe how~ile eemestmoney svr7/6e hektJ receipt of wMch is t~eby acWloxriedged and S cash, on ,the DATE OF CL031NG, oral the balance of S by finarrdng es shorn on the aCat:had Ftnaneing Addendum 8. DEED/tNARKETABLE1TfLE. A. Upon pertormanee by Buyer, 5e9er shall execute oral deliver a Osit Claim Deed , corneying good erd marketable title of record, subject m the folowing Tltls acoePliorre: {1) Bulldtrlg and aoning taws, ordinances, stath and federal regulations; and (2) lTte rren of real property taxes and the Ilan of spedat assessmems and irderest due ltrereon, IFarry, payable to the year of doskp which by the terms o(this Purctmae AgreemeN are to be paid or assumed fry BrArer. B. Seller proposes to Buyer that Sehefs good and made Ude wA be delivered to Buyer at dosmg subJect to the foaowtng title issues: (Check ij, ifappticahtej (1) (~Encumbrantses,easemeMe,ssvenassts,corrddions,reshidbtss,adedaralion(wUtsoutanassoci~on),araireservagonofminerairigMa by the State of Minnesota, as dlstloaed 'ar M.S.BA. Real Propery Form No. 19, ADDENDIMU TO PURCHASE AGREEMENT: TITLE ISSUE8 (208, attached as a part of this Purchase Agreement ~-3 M.S. B.A. Real Property FOITR N0.1 (1984; Rev.1t198; Rev. 1987; Rev. 2002; Rev. 2004; Rev, ZiX15; 2007; 2006) Minnesota Standard Residential Purchase Aar~meftt PuRCHASe AGREEMITiT I PACE 2 of 10 ss 90 91 9z 93 94 95 97 98 99 too t01 lag ]93 109 toe 106 toe tae 109 uo ul II2 113 ll4 us 716 Ill 118 119 i20 121 122 123 ua lzs 126 127 I28 129 730 13I 732 133 134 333 136 137 l38 139 140 f41 tae t43 144 145 ]46 ]47 lax 149 730 151 132 153 lea 155 l56 1x7 Ise 159 i6a l61 162 163 164 lax 16a 167 166 I69 i70 IT1 172 173 174 175 776 177 I7S L79 180 18t [Check(2), ]fappficablej (2) (=A Deaaratlon of ceveruutfs, corrdNfo[ts, end resbtctions with an aesodffibn in a planr7ed communNy, coridwniMrlm, woMer common interest ownership oommuMty, ~ dfadosed In M.S.B.A Rent Property Form No. 12, ADDENDUM TO PURCHASE AGREEMENT ; COMMON INTEREST COMMUNITY attached as a part of this Pr7icttase Agreement. (C2redr (3}, ff epplicable:J (3) OTherightsoftenantswotherpartlesinpassession,asdisdasedinM.S.B.ARealProperlyFomrNo.20,ADLIENDUAATOpURCHASE AGREHN9iT. TENANTS AND PARTIES IN P089ESSION (2005) atladved as a part of this Purchase Agreernem. Although Seller has dlsolosod these title lest7as and Buyer has Indicated a generel wllNngnesa W take tkle subject to these title bslres. these title Fasuse are subject to the other proNalons ofthaPurolraseAgreemsntandtoan examinatlon oftble based uponfhe M(nnasota Title Standards and upon Mtnnaeotalaw. Buyer also reserlre8 the right to evaluate tha9e tNle issues in the fpht of Brtrers kltsnded use and enjoymend of the property. Buyer ahaN have untN the eml of the permtl for statlrg Title Objediorls under Paragraph 14., of this Purchase Agreement to make the evalvatWn and detamrirre if these tltle (saves wNl affect Buyer's kdended use and enjoyment otlhe property. Except Pormstlers disdoaed under 6.(2), above, and governed bytheetatffioryremedies tetererxad M M.S.BA. Real PrOpeAy Form No.12,AODENDUMTO PURl:1fASBAOREEMENT: COMMONINTFREST COMMUNITY, ff Buyer, in Buyer's sole dierYetlon, dffiemrinas tint iFrese title Issues w10 adwraety aHrlct Buyer's interxled use and enjoyment of the property, Buyermaydedare this PurohasaAgreemeritvoid bynoYoeloSalter. rleitllerparty strati be lthbtetordelrratlesttereundertotheother, and eameat money shah be refllnded to Boyar. M the period for stating Ttlte ObjeWarts urrder Paragraph 14., passes vdthout Buyers decladng that these tNle ksces wiN adversely aired Buyers kderded use and enjoyment dthe propergr,lfren, subJedta SeUer's covenant to del(vera good andmarkatableNtleofremrd,BuYersha9takeNtlesubJedtotheaetltlelssues. jSellersfrouldconslderfuBWs~SUreofaHdBeissrrestoBuyer N fhb Purd/ese Agraemsrit Orin addenda to m/s Purdrase Agreement FuH dlsdosureas 97 the subshmce oftTJeissues afiOws Buyeran eaAy opportunitytoenawefinattltisistheNghtproperlylFxBuyererrdtonreearlreft7aimpactonMeBuyer's lnhrndeduseorpotlvnlaelenjoymentofthe property. In other xords, Buyer's canserd to take fiNe subject nt the exlatenue of b71s issues mast De a firHylntomted owtsenf. if Buyer is PoNy iMonrred early, a is fassGkaystet Buyer7aHr efed to veld ttre ~memencl T. REAL ESTATE TAXES AND 8PECIAL ASSESSMENTS. A. PdorYeare'DSNnqueMRaalEshrEaTaxaeandDaNnquanlSpeefalAsseas. DeNnqueMrealealatepayatlleinyearsprlortothe year of dosing and deNngrlorlt installments of specal assessments certified for coNadwrr with real estate taxes payable in years prior to the year of dosing. togetl7er with penalgr, interest and costs, shag be pafd by Soler not ~w'than the actual date of coxing, 8. Real F.afste Taxes Payable In the Yaer of ClOeing. Real estate faxes payable in the year of dosing shall (salad from (f) w {2):J [x (,> ee prorates between Seiler era Buren {select (a) or (b)j. x jrl20n a calendar year heals to the actual date of cMskg; (b) AS tolwva: 3eNer %; Buyer %; adJua between SeNer and Buyer ffi doairg, and paid fonts calrriy at dos(ng ffthan due and BuyershaA ast;umeir>staNmerds riot paid ffi gosirig. (2) Not be prorated and the entire year's ta7ms shall be (se/~ct(aj ar (bj): B (a) Paid by SeNer when due, but not la&r than doh, (b} AssurrKd by Buyer, to be paid when due and not latartlrarr dosing ff due priwto dosing, and Btlyer shall reimburse SeNer ffi dosing for arty ktstaNments paid try Seder prior t0 tloshtg. Seiler shah pay penally, interest and costs on any delkrquent InstaNrtteM of taxes and special assessmers payable in the year of dosing. If dosing is delayed t0 a later year, real estffie taxes payable h7 ftre year Of dosing shall f>e prorated between SeNer and Buyer On a calendar year basis to the actual date of dosing. C. Tax Statemerds. ffla7t stffiements tartexes payable in ttre year of dosing are trot avatlaMe on the Date of Cbefrg, the amount to be used for dosing pu~~~es shall ba 105 °/n ofihe prior year's talcee, and suds arrrountshatl be (sated one~FULLAND FINAL BETNIEEN 6ELLERAND BUYER (~IADJUSTED UPON RECEIPT OF TAX 87ATEMENT3 FOR SUCH YEAR (n wtrich case the pasty obligated to pay the adjustment shall pay f~to the other party wiNltn 30 days of issuance of the tax statements}. D. Homestead Cletalficatlon. Seller represents 1haL as of the date of thisAgreemeM, the property tax dassificaflon is (,fie onej Aentsseeed~ nonhon7eetead. Ifthe property is nonhamestead, Buyer maychange ltte tax dasstafiratbn fortaxea payable M theyearfogowing dosing bytaking possession of the real properly as Buyer's homestead and iNtng a now homestead dedaretton withk7 the Ykrre roqured by law. If the property tax dasaiflcation M the year of doskg is not homesffiad, Seiler shall pay to Buyer ffi doskg jseredaneJ x 0 the difference (on Buyer's pardon aF the taxes) batareen the taxes h1 the actual dassiflcetlon and the taxes that would have been payable under homestead desaiflcatlon. If the property tax desaiflcatlon for taxes payable in the year following dodrg is not homestead arid. flaough rw fault of Buyer. the closing fakes placeafterlhedefe bywhich Burermustfake possession oftha~eal properiyasBuyers homeffieed tofilefwlnwrrastead fax statlnstortax~pareble in such r, Seller sheN payta Surer ffi dosing (select one) x 0 the difference (on Buyer's porsan of the taxes) between the taxes in the actual dassifiratlon and the tortes Met would crave been payable under homestead dassiflcatlon. (lf Buyerintends to dam the propeAy as Buyer's homes[eerl, Buyer should file Boyar's homestead dedaratfon as soon as possfb/e after teldng possession and occupancy of the ProPantYJ E Deferred Rat EstateTaxes. (n7efedane:] Q BUYER [~x SELLER st7aN pay on date of dosing or prwidefor payment of arrydeterted red estate taxes (Irltludlrg "Green Acres" taxes order N&rresota 3taWles SecNort 273.111) paymerrt ofwhid7 k regttred as a resuR of the cWNng d Mls sale w the recording oFtl78 Deed or Centred for Deed. Provision for payment nHISII be by payment IMO eBCreW Of 1.5 times tltB estimated amoum of the assessor's reassessment for deferred taxes. ' F. Vffiuatbn Exctrmlons from Assessed Valor. Seller warrards arM represents thffi ttre property[saed or1&J Q does Qdon not treue an exdusion irom estmathd market value fOrcertaln home Improvements pursuant to tfkulesota S7atuffis Section 273.11. SIsd.16 (1997}. Such exdusienaxpir~onifresaleoflhePropertyandwitlcausatheassessedvalueoftheproperlytoktaeaseforpropertytaxpurposea. Thelncrease inasseasedvaluewNlceusethepropertytaxestoknaeasearldmightmekelhepropertyurrafiordatdetwBuyer. BSeNerrepreaerrMtttffiUtepropenty does not have an exdusicn and en exdusiw7 k d(Ircotaered prior to dosing, Buyer rnelr, ffi Buyers option: (1) Assume payment of the kraeaeed property taxes without adjusbrrent to the purchase price of the real property: (2) of dosing (such es~tanffi nshaN bee obtaloed from Me c~otr assessor a ~ asaegsor); w. Mree calendar years foNowing the y~r (3) Resckld the Agreement, th whidt case ail earnest money shen be retnrffied to Buyer. Ifthe exduSlwr is notdiscoverad urdit aflardosing, SellershaN be aada to Buyertorrgrddateddamages inure amountMffi isflve Nmestheestbrtated irxxease in real estate taxes based an tl7e reassessed vallw provided that arty notice of a daim oPbreach ofwarrengn must be in wriflng and must De given by Buyer to Sellarwtlhin one year of the Date of Croaklg w be deemed waived. The proviatwra of Otis Paragraph F., shell survive the defwery of Ma Deed or Contred for Geed. Q CeAltled Spar:lal Assesanerss. AN installments of specal assessments certlfled for paymentw6h the teal estate taxes payable in the year of dosing shall be (seed one]: Q Proratedbetween5e11erandBuyeronaplerMaryearbea~tofheadueldaleoidosing,adjustedatriosing,andunlessotherwisepmvided in this Purchase A9reernerd. she! be paid ffi dosing p Paid by Buyer at aoskg 0 Paid by Selbr ffi dosing ~ Assumed by Buyer. K Pendktg Speciffi Asaeasmeffi8. {1te~t orre:]~UYER SHALLASSUfdE PAYMENT OF ~FI I FR SHALL PROVIDE FOR PAYMENT OF special assessments pending as offhe date of this Purchase Agreement foNmprove that have been ordered by the Ctly Coundl w other ~~~ M,S.BA Reef Property form No.1(issa; Rev.1995; Rev. isa7; Rev. 2002; Rau 2000; Rev, zoos; 2og7; zoos) Minnesota Standard Residential Purchase Agreement PURCHASE GREFMENT ! PAGE S tN 1 taz govtartmtlydai assessing atMOritres. (Seller's proNslon for payment shag be by payment into escrow of 1.5 times the tlatlnated amount of the tai aeaeseme4ds.) As of the tlafe of this Purchase gareemettt, Seller represems that Sager has not received a No9ae of Hearing of a new pufMc t&i lmprovameM projedfrom arty governmental assettsing authority, the costs ofwhidt projad rosy be assessed againstthe real property. lie apedal t8S assessment becot»es pending aRer the date Of this Purdtaee Agreement and ltetore the Date of Cigstrtg, Buyer may, at Boyar's optbn: te6 (1) Assume payrneM of the pertdMg epedal eraresamerd wahout adjtratment to the purdlese price of the reel property: or. ts7 (2} Require Salter to pay the pendng spade! assessment (ar escroer far payment of same as provided above) and Buyer sha0 pay a 188 commensurate increase in the purdwee price of the rat property. which Inrxeese shall be the same es the 4tstknated amount of the ts9 assessment: ar, 190 {3) Restdrd this Agreement, in which case a9 earnest money shag be refunded to Buyer. 191 192 L Datemed3pecWAuassrrlenls. (ae/ad0lte:J~BUYI]Z/I x ISELLERairakPaYandetaofdoaingarprovideforpaymontof anydeferted 193 specal asserements payment of whklt is r4tgtrtred as a reach of dosing of this sib ar the recordhtg/fi0ng of the Dead ar Contract for Deed. 194 Prnvitaon fOr PeYmetd shay be by payment into esaow of 1.8 times the estimated amourrt ottee deferred special aasessrnents. 195 t96 d All Other Lavled Spttdal AssaaameMs. (salad are.J BUYER SHALL ASSUME PAYMENT OF ! OSFt t FR SHALL PAY ON DATE t97 OF CLOSING all other spttdal asttessmeMS levied as of the date of it's Purchase Agreemtnd, except defened specal assessments (covered at t98 Paragraph 7.1., above). 199 200 K Tares and Speela] Aas4tssnreMS in the Yews FoHowing Closing. Boyar shall pay real estate faxes payable kt the years f000WMg dOSing 2111 andapedalassessntentspayaWetherewith,thepaymeMofwhichisrtdothervriaeprovitlediterein. SeNerrnalcesnorepreseMa0ontxtncwrNrpihs za2 amount of future real estate taxes ar of future spade! assesemwds. 203 204 8. DAMAIiES TO REAL PROPERTY. Unb7 campledon of dosing and delivery of poasessien, all risk of loss is on Seger. ff the real property b 205 damaged prrorio dosing. Serer shay give notice to Guyer within 3 business days eReraudr damage has oocuned. The notice shell htclude Besets 206 proposal for repairing the daatrege. From Ure data that Buyer receives Seller's ndioe, Buyer shall hems 3 business days to itvlptld the real property, 207 and an addidtutal2 business days to determine ff trre damages and SeseYs proposal for repairs are atxeptable to Btryer. ff Buyer does trot accept 208 Seller's proposals ter rapeis wi0rin the 2 day period, ibis AgreremaM th Cancelled and the 41errNBSf money shah be rehtrtded t0 Buyer. 209 no 9. SEI.t.ER58OUNDARYLMtE,ACt~3S,RESTRICTIONSANDLIEHWARRANTIE3. SeilerwarrantstlratbuiWinga,Hany.areentiretywittdnthe at i boutMary Ilttaa of the real property. SeserwarraMS plat there is a right of atmess to the real propeRytrart a public right ofway. Saserwarrartts that 212 there has been m labor ar material filrniehed 1o the real property tar wtdch payment has trot been made. SttllerwarraMa that stare are no present 2l3 violations of any restr+r;tions re4lting to the use ar intprovwrtent of the real property. Seger warrerds that the real property is not subject to a Ilan for 214 Medical Assistance ar other public astdstance. Ttrese wartantks shay survive the tieiiwsry of the Deed ar Cantrad for Deed. 21s 216 10. CONDITION OF THE REAL PROPERTY, 217 A. Statutory Disclosure. PCnsCreM to MinnesCria Statutes Sadists 513.52 - 515.60, Serer rttust provide a written d~dostae [see (1) belowy ar 2t8 Btryermusthausrecevedaninsp~lionreport[gee(2)bebw],ar8uyerandSellermaywaivethexrtifMndiadostaerequkemeMa[see(3)below). 219 220 221 MbtoesotaStaEatesSeciim513.57,Su1rd2. LiABILTIY. AsellerwhofailstomakeadisclosteeasregCmedhysedions513.52LO513.60andwesauare 222 ofmakrieifactspenaurmgtofheraaiproperiyisliabletotheprospoctiveMryx.Apersonigjeaedbyaviolationofthivsedionmaytvingacivilactionand 223 recoverdamagesaadreneiveotlterequitablareliefasde0ermiaedbythecourtAnae>~aruorlxthissubdirisimunalbacommeaRdwitldntwoyearaatter 22a the date on which rite prcapxflve buyer closed the purchase ortronsfer orthe real properly. 225 226 lSefeG Orr/y one ofNrasa lhree:J 227 228 ~ ry) Seller's Olsctosutr. Seller has provWed a wttHen disclosure to 6uyar. A copy ofSeser's tfaclosure is attached Sallw shall correct 229 in writing arty inacwredes M the dlacdosure as soon ao reasonably possible bcdare dosing. 230 231 Minnesota SaMas Sedioa 513.55, l3ENERAL DISCLOSURE REQUIIIFtvIENfS. 232 Subdivision 1. CUNIENI'S. 233 (a) !;stare signing en agreement to sell or transfer rosidmtinl reel preliedy, the seller shalt make a written disclosure to the prospective buys. Tito z3a disclosure must include ell rtmterial ~cxs of which the seller is awaretliet could adversely and si~ifu:amly s@'ed: 235 (1)mordinarybuyer's~eandmj0ymmtofthepmperry;w, 236 (2} any ;Mended use oftlx property ofwhich the seller is aware. 237 (b) Thedisclostaamustbomadeiasoodfaithandbasedupoathebestofthesellarslnrowledgsatthetimeofthedisetosrse. 238 Mlnrtesaa Statutes Secton 513.58. AMENDMENT TO DISCLOSiRE. 239 3ubdivisimii. NOTICE. Asellerln>stmtifytheprost>~tivebuyerinwri6n8assaonacreasmablyposstble,butiaanyeveotbeforedosing,iftheseller 240 learns that the seller's disclosi¢e tWuired by Section 51355 was inaa~ase. 241 Subdiviaim2. FAII.UAETONOTIFY;LiABII.TTY.Aselkrwhotat7s6oa0tifythe»peesvelwyerafarryameodmmrstotlteinitial discloscuelequired 242 under subdivision 1 is liable to the prospective buyer w provided in Section 513.57. 243 244 0 (2) IriapaWon Report. Buyer ties received an irtspedonreport by a Cluasfied tMrd-party. Ha copy otHte inspactlon repoRis provMed to gas Serer, Seller shay disclose to Buyermaterial fads (mown to Sesw that rbrtlradid arty Ytfortriation in the irispedion repel. 246 247 MirmesotaSlaauasSectton5t3.56 Sulx13. II4SPECITONS. gas (a) Except as provided in para®apli (b~ a sel~r is nor required in disclose information xelatiogto the real propety ifavrtthen report tbat disclose the a49 informadonhwlieenprepatedbyaqualiftedthirdpartyaadprovidedtothepraspectivebuym Forpmposesofthisparegmph,"qualittedthirdpariy" 250 means a fedataL state, or local governmental agency, or aqv porsm lvltom the seller, ag prospective buys rewonabty bdievas has the expertise 25t rtecessarytort~etthei~astrysandandsofpmcticeforthetypeofi~prdioaorimast;gaziontluuhasbemmndudedbythathbdpaztyinortkrm 252 preparethawritanreport 253 (b) A seller shall disclose to tine prospective buyer tmterial fticls lau>wa by the seller that conhadtct any informadon included in a written report under 25a paragaph (e) if a copy of the Deport is provided ba the seller. us 256 ® {3) WaiwrotOtsclosut4t. u7 258 Minnesota Sisaetes Section 513.b0. WAIYIsR. The tvriaaa disctostae requQeti under Sections 513.52 la 513.60 may be waived ffthe seller and the 2s9 praspectivebuyeragraeinwritittg. Waiver of the dlsclosmerequiraluriderSectians513S21a513.60doetmtwaive,limit,aralxid®eanyobiigabon 26o forsellerdixlosurecrealedbyavyotl~law. 261 262 Sa1Nr and Boyar waive t)te written ~aclosure regWrod under 9actlona 573.ffi to b1oS.6Q~ 263 264 265 SELLER: BUYER Z66 167 268 x69 SELLER: BllYElt no 27t NOTICE REGARDING PREDATORY OFFENDERS: htfomredon abtxa the predatory oBe registry and persons with the registry zn may be obtained by Cwtdading the local law erttorcemeM agenq ar by txmtadtrig the MlnttesCNa Department of Comet:tiats at651 361-72 0 0 or 273 at http9/wlvw.doc.sWterrst.ris. 274 1`~ M.S.B.A. Real PropBrly FotTf1 Na 1 (1994; Rev. 1996; Rev. 1987; Rev. 2002; Rev. 2004; Rev. zoos; 2007; 2006) Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT /PAGE 4 of 10 273 276 277 z7s 279 280 281 282 283 2a4 285 286 287 288 289 290 29t 292 293 294 295 296 297 z9a 299 300 301 302 303 304 303 306 307 3oa 309 310 371 312 313 3l4 315 316 3n 318 319 320 321 322 321 324 323 326 327 328 324 330 331 33z 333 33a 335 336 337 338 339 340 341 342 343 344 3as 346 347 348 344 350 351 332 333 394 355 336 357 358 399 360 361 362 363 364 365 366 367 366 369 370 B. VYELL DISCLOSURE (C1terJcone of Ne following: J Q Seller cerffles that Seger does not know of arty wells on the rest property and wNl so certify on the Deed or CoNrad for Deed degvered at dosing. ® Wells on rile real property aredisd0aed by 5ellera7 the adad7ed M.s.BA. Real Properly Form No.21(2005), Web Disclosure Statement. C. SEWAGE TREATMENT SYSTEM DISCLOSURE (Check elttrer (7) or(2):1 x~1). 5elkrcartitiesthatsewagegerreratedatthepropertygoesto afaa'NypermiltedbylheMlnnesotaPdhAlenControlAgenq(forexample, e dty ar munidpsl Sewer system). ~(2). Seger certifies that sewage generated at the properly does not g0 to a facgky pemUtted by the Mtncesota Pollutlon Control Agenq and Bagels oledoelae of Imrwidual Sewage Treatment System is attached (attach torte). (Checkeitltar(3) or(4): J x ). Seger does not know if there is an abandoned individual sewage lreatmeM system on the property. 4). 3ellerkrxrws }het there (strike ane.Jare f are no abandoned hrdvxk7al sewage treatment systems an the property. IFSeilerdiedosea Ne existence of an abandoned indhddual sewage treatment system on Ore properly, then Minnesota law requxes that the beation of the system be disclosed to Buyer with a map. (Attach Sellers Disadosure of fidividuaf Sewage Treatment System with map comPlefedl 0. LEAD PAINT DISCLOSURE CCheck one of the following: J Seller represents that the dwelling was eanslruGed W1 the real progeny kr 1978 or later. x Seiler represents that Na dvreging was conatnrded on gre real property before 1878. (it er7ch housing le located on the real property, attached and made a part of this Purchase Agreement is M.S.BA Real Property Farm No. 11 (1996), LEAD PAINT ADDENDUM FOR HOUSING CONSTRUCTED BEFORE 1978.} E HAZARDOUS SUBSTANCES, PETROLEUM PRODUCTS, AND UNDERGROUND STORAGE TANKS. seller knows of no huardous substances or patrolwm products having been placed, stored, or released from a on the rear property by any person In vidatkn of arty raw, nor of airy underground storage tanks haWn9 been located on the rest property at arty time, except as folbws: nonelmown lfihe presence ofundergrourd storage tanks is dlsdoesd, then This per~raph applies: Seller hereby tapl@Sente and wananls t0 Buyerlhat all of Ne undergroud tanks known to Seller on the subject propargr fiave been disclosed to Btrlrnt on the attad7ed drawing or wrap. Seller shalt provide e<dosing the affidavits required by Mlnrtesota StahAes Seclbr7s 1156.16. Subd. 2, acct 116.48 if applkable to the subjectpropedy and recoM an affidavit a8asting to the tocaUon of arty underground tanks wtddt are us~l for the storage of petroleum products. F. PROTECTEDSRES. Seger has noblowtedgethatthepropenyhasanywnditionsthatarel7rotstxedbyfederelorstaklaw(suchasAmsdcen Indian btalal grounds, other human burial growls, ceremonial earthworks, htttarkal suudures or materials, or archeological altos) . (Check the6oxffthefo/bwfngprov/s/onappllesMthisPorchaaeAgraemd7t:1 QADDt~IDUMTOPURCHASEAGREEMENT: Ct~ITINOENCIES FOR SURVEY, APPRAISAL, DEVELOPAIENF EVALUATION, AND ARCHEOLOtNCAL /HISTORICAL SURVEY, III.S.BA Real Property Form No. 17 (2005), is included as an addendum to this Purohase Agreemerd. G. DISEASED TREES. Seller has clot reoaived any notice from any governmental authodty as to the erd~ence of, acct Seller has no knowledge of, any Dutch elm disease, odt wig, or other disease of arty uses on the real propeAy. Elm tree t o be removed by Se Ile r J. RAF. Seller (strike oneJhas / h~ not had a leaky roof. K tlnLmES CONNECTION. sailer represents that the property is rbnneded to: - dtysewer (svNra orreJ YES 1 [~; sty water (stoke noel YES /1to: cable cammunica8orts (strrlce tweltrtYC 1 t40. L CLEANCONOn70NS.SettersnagremoueaNdebris,trash.rubMsl7.gar6age.rubble,andyardwastefnomihelandbeforetheposseselondate. Seller shag remove all trash. garbage. and miscellanea7s discarded materiab from the Mngs,and s~ud(t~vaihe bw7dhrga fn'broom clean° corrditionbefarethepoSSessiondate. Segershagremoveatipersonalproperlyrrotinek7der' •tfdesalefromtherealPropertybeforePossession date. M. BUYER'S INSPECTIONS. Buyer may have inspections of t!re property oonduclad prior to ebskrg. jCfreck the bar ifthe /aNowfig poviabn applies to this Purchase Agreement] ~ ADDENDUM TO PURCHASE AGREEMENT: BUYER'S HOME INSPECTION CONTINGENCY, MJS,B.A. Real Properly Fomr Na 18 {2005), is included as an addendum m this Pur73tase Agreement N. METIUTAAPHEi'AMINEOI3CLOSURE (Chedconlyonebox.eldler(71or17.J•J ~x {1) Td Na bed of Sellers Imavkdge, meNamphetamkre production Eras trM ocra7ned on the property. (2) To the best of Sellars knowledge. meNamphetamtne prodwxlar has occurred on fire Property and Bagel's disdasure is cordlnued in Part 8., METHAMPHETAMiNE OFSCLOSURE 9TATEMENr, M.S.B.A. Real Property Form No. 22 (2006), irxWded as an addendum to Nle Purchase Agreement O. NOTtCEOFAIRPORTZOMNGtiEGULATION3.IfairywtzordngregulationsaRectthisrraipraperty,acopyofNOSeairportzonNgregulations as adopted can be viewed ar obtab7ed at the office of Ore toady retarder where the cored area is located. P. WARRANTIES SURVIVE CLOSINd Scllers watramles and representations ~&rad kr8tis Paregreph 10., shag survivethe delivery of the Deed or Cormact for Deed. This Paragraph 10., shag notchartgawatfedarry dghlsthat Buyermlgtdhave undertheursform Commerotel Code (Minresota StatutesSecdon3362- 312), or under Minnesota's'PrevprOon of Consumer Fraud Ad' [MbrrMSOte Stah7tsa Sections 926F.88 -.70], or alder Mimresole's °Homaownars Wermnty Acl° [Minnesota Statutes Chapter 327Aj; rrorsfmll ti preclude Sellers gatriHty for an actbrl for fraud, negligent misrepresentation, or affrer actions agowed by raw [Mtrrnesota Stab7tes Section 513.57.] f 1. DISCLOSURE OF NOTICES. Sellerhas notrece(ved anynoticefromarry9ovemnrentalauthority asto violation otarrylaw. ordinance orragulatiar atfeetirtg the real property. Hfhe red property is sli7jeet to restdc8ve covenants, Segertma not received arty notice from arty person as to a breech of the covenants. Segerhesnotn:ceivedanynotlcefromanygovemmerdalautlwritycancmrrngarryemkcerddamaM.condmmetlon.spedeltmdng district ar rezoning proceedings. Sellers represanfagoraz contained b1 Nis Paragraph 11.. shag survive the delhrery ofihe Deed or Contract for Deed. 12. TRUTHJN-fiOUSIHG. Buyer adaawledges mwipt of Ne TMh-hFHousirtg Disclosure RepoA or ott>ar irepecgon repaR if required Dy the muni~algy in which lire reel property is totaled. f~C~ f1 j ~~R 13. POSSESSION. Seger shell deliver possession of the property not laterthan the dam of ~ _ ~ y/ t Vti q ~ L'! Z'U ~ dastng. Ali krlerest fuel oil, liquid petrnle gas, and all charges for dty water, cllY sewer, electricgy, an~na-turdl gas shag ~fhe paNes as of Ne closing date ~~r 2, (~ O~ 1. WET BASEMENT. Seller (strike one] tras /4resnrst had a wet basement ~~~ M.S.BA Real Property Form No. 7 {f984; Rev. fl186; Rev. 1997; Rev. 2002; Rev. 2004: Rev. 2005; 2007; 2008) AAjnnesota Standard Residential Purchase Agreement PuRCrwse AGREEMENT i PAGE 5 of 70 371 3n 373 374 375 376 377 378 379 380 3s1 382 383 384 385 386 387 ass 389 39D 391 392 393 394 397 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 a13 ale ale 416 417 418 419 aio 42l au 423 aza au 426 427 a2s 429 a3o 431 a3z 433 434 435 436 437 438 439 440 44I 442 443 444 445 446 447 44s 449 450 4s1 452 4S3 454 455 436 as7 458 459 460 461 462 463 ~a nits A ABSTRACT AND EXAMINATION OFTrtLE. TodemonsbauthalSeger's0tleisgoadendmaucelableofrecoM, wilhinareasonaWethneafter acceptarroe of this Prachaee Agreement. Sekersltalliumish 8uyerwkh anAbetrad ofTike{sae B.,below] wa Registered PropatyAbstract oertlfled to dau indudirg proper searches coveting baMauptcfes and stau and federal judgmatffi, federal court judgment Hens in favor othee U.S., Ilene, arrdleviedandpendingepedalassessments. BuyersirallhaveunbuslneasdaysaRarrecetptofUleAbstractof7idewRegisuredPropartyAbsaact either to belie Buyers lawyer examine the title amt provide Salter wkh wrkurr Title ObJedions w, at Buyer's own experae, to male: an appkcekon foralitleinsurancepalieyandnotlfySelleroftheepplfeatlon. BuyershallhavetenbusitleeadaysaifPlreeeiptoflhaCommibnentfwTitlelnaurance to provide Sederwith a copy oftire Commitment and written Title Objedbtxl. 13uyershak be deemed u hevewalvetl anyTttle objections not roads within the ten day period above, except that thffi steak trot opaau es a waiver of Seller's covariant to deliver a statutory Wanaruy Deed, unless a YVartantY Deed is rrotspecilied above. fF Buyer obtains title insurance, Buyer le natwatvirg the dghtto obtain a good and marketable Wu ofrecord tram Salver. For the purposes of this Agreement, an "ObjecSan u Title" w Tito ObJadion' ffi some title matterwhkh fads u pass a title exerrdnatlon based upon Minnesota taw ant the Minnesota Tfie Standads promulgated fly Ole Real Property Section of the Minnesota Stan Bar Assaciadon thereby tendering the tHk ummadoatable and is a tike mamefwNeh regtdres a remedial response by the Seller prtw to w at cbsing. An'Exception to Tkle° or'TkieException° is somefitle matterwhkh passes a ktleexamination based upon Miaresefa ffiw and the bBnnesotaTiOe Standards; is generalryregarded by tilts exarrriners as not rerMedrrg the kite uanarketable and, which. because of Its nature. isgarerelty disdosed by title examiners tortes tecq/iat of the title opkrion w title insurance canmitrnent. a. ABSTRACT LOST OR UNAYAILABLE: TITLE INSURANCE BY fiELLER H Seger k unaltu u flM the Abstract of Tole w H Seder did trot receive an Abstred of Tide when Seller purchased the Property, tlt~err, to damortstrale that Seller's title is krsurable for marketabikty and srr6ject to ony those mat4as disclosed at Paragraph 0.. above. witiftn a reasonable tiros afbr aceeptance aP 11tlaAgreemenL Seiler shad irartislt Buyawith a Corrurritment for Tike Insurance inducting proper sean~res carering bartlarlptdes and also and federal Judgments, federal court Judgment darts In tavw of the U.S., bens, and lev~d and pending spedal assesamenta (Salter: see AoYlsory below J The Commitment shall be aftffifrted from (a81aGf Onef The titlB blaufer of Buys droxe; w, The same Utle insurer that issued 1d6e irnsurarrce to Seder so tlret Sellermay obtain a reissue credit from the (nsraer. e Itrrrerd shell cwdain Uro insurer's requtrenreMS for deleting tfteae excep5ons intha owner's pdiey (mmeptforthose maHeys accepted by eulror to tits Agreement}: (1) RI9hffi a• Balms of partlee to possession, tort shown by the pr~ac retards (2) Easemenffi, w claims of easements, oat Mown by the public records: {3) D(saeparrofes, conflcffi !n boundary Ikres, shortage in area, encroachmenffi, and any facts which a corret.4 survey and Irlspectldn of rite premises would diadose and wfddr are trot shovm by the pubic records: and. (4) Arty den, w dgM to a Ilan, for aerNees, lalror w material famished, imposed by taw amt trot shown by the publffi records. Seiler shad provide to Buyer and to the title irretxer all documents [except a survey, Wlless Seder i8 requhed by other Provisions of this Agreement u provide a survey] necessary to atade the flke Instaer to deleu these excepkons fran the owra3r•a policy oftllu insrxance. Buyer shad have ten business daysaflerrecelptoftheCammdmentforTttlelrrsurarxeuprovkleSellerwlthacopyoftheCommiMetltandwrltten7ltleOt~erJions. Buyer shalt tie deemed to have waived any Title Objectlona not made wikdn the ten day period above, except ittat ihla shall not operate as a wakra of Seller'sa7venanttodeliverasffiutorytNarrantyDeed,ur>feseaWarrarriyDeedisnotapedfledabova. Byagreeit~toreceiuetidetnswarwelnlleu of an Abstract, Buyer Is not waiving the right to obtain a good and marketable title of recall fran Seller. /Buyer. sae AdNsorylxelow J Sefectosre oPMe fogowing: 0 The Commthrtwrtshagbeaecanpantedby,atSeller'set~ense.tlteinearer's~teement(wthesepareseagreemamofa Mkmesota-Itauaed atx3frader) fo provide Bttyerwifh an Abshad of Tide at arty time to the hrWre. The abstract to be provided shall be at ro cost to Buyer for ad abstracting kadu9h the dau of remrdtng of the tnswment of conveyance corrffitnpWted ily tills Pwdtase AgreemerrL Sekerahall pay all cammiarrent. abstracting. examirutien, seatdies, and title krsurance cosffi. incfird'mg the premium for the owner's pokq and exduding the premium torttre lender's poddes. 0 The CwrarHttnerd wa not btdude the brsurer's w abstracters agreementio provide Buyerwith an Abstract of Title at arty time at no cost to Buyer. Seder shadpayalicommitrnent.abstrackng,examfrre0on,searci>~,andfifieirrsuraru~casisindudlr>gtta+lxemiumsforiheowrter's and the lender's PONC7r• ADVISORYT'O°SEGLER Yoisihouldeorrsriitwitll~rorirGiaiyerabwiftlieeompara0veiuxslri.of~ayfifg,an•;abatrecEeomparrytiopradueea ira'w:Absftatt elf'TlgevWSUSjfayidgtfrei38ya"s tklefrisdr~iiei~eoste. In:many Nkifd"esdtii ebunesK;,itia less expaifsfvs'to aMSih s~new? •Atxe4acL _ .. ~.. .: _ ,. .. ... -... ADViSORYTO'®U'lElt Ybuah'ouldconsufl~wwhh.}rou?slsayrraBaifthaisbtl'vamar@sotraeaNiaganAr>s~adot.Tltle;varauareeeMng. attpelfieurmtrapokty Ads~futiire:d'elleroftha9anis;pi'op6rgi S!tiiilflcelyivtll,Ee'ast®dssl+/ayoiuIrlryatani4tieffecE Bj~rr.Soikrildea ilie~obtalnthslltlo;lnaurance,±-~ibisbnreirtforfaWi~prodireetlorap.oF~rTA~frA~7/orFmlghtbei8eingalar~e,'experraartdr'enyoaselL'; , 75. TITLE CORRECTIONSAND REMEDIES. Sedershellhave a Iimkatibne, from recerytofBuya'swritlen Title ObJedicns,lo malre/Poe marketable. Upon receipt otBuyers Title Objeetlars, Seilershak, wkMn ten business days. give Notlce to Buyer otSekefs inuntionto make ktle madcefeble wkhin the ti0e-deadng wre pedod aeleded kl C.(1) w C.{2) below. Liars or endanbrances iw dgr~ated amounts which can be rekmsed by paymerdar escrowfrom protxeeds ofdosing shad trotdelaythedosing. Cure ofthe dekcffi IlySellwshak be reasonable, ddipent, and prompt Pending conedlon Of Wle, a0 payments required basin and the dosing shall be poslporxld. ' As art akematlve to making tide good and madleffiWa of record, Seller may, within the ten day Notlce period, make a writiar, dated otkr re Buyer to obtain title insurance for Buyerwflh insuring provisions accepffible to Buyer (and, fi appltcabie, Buyer's larder), as follows: • Sellerrnayprodrre,atSeller'sexpalae,an ovmer'spdkyoflltlekrerrrance,fromanktsurerreglsteredantllfoerrsedtodobusktessinMinnesoffi and aor~ptable u Buyer. apedflceky insudng over the Title Objections; w, • IftheTikeObjediarearesffiffidlnatitlelrrsurancecammWnentwhichBUyerhasobukred,Sellermayprovidethekrwrerwithsuchdawmatls and escrows ~ are necessary to allow lha insurer to speci5calty irrarrre arerthe Tide Objections and agree to pay alt of tire insurer's drerges for Issuing the owner's pclhy u Buys: Under either ofttx3se idle Insuring aHematlves,'at S&lets expense' and day all of the irtsraePs charges° mean Brat Sederwdl pay aA tide krstlrence cemmftrnent and pocky premium drarges, search drarges, platdrawltgfees, and arty other dlarge bythe araraerto issue the owrreYs policy, but trot the premlumfwalaMer'spokcy,ifarry. HBuyeracoepffiSellersoffarofeninmrredetitle.theninthiaPurdreseAgreement.'maldngtiHemarketable' et1aH mean 'rttek6rg rifle insurebie," in fire matrxrr described abova. Buyer is under rro obl(gatlon to accept Seder's oHa of an irteureble title In deu Uf a good and merl0ateble title ofrecord, but, if Buyerdoes ndrejedSeHersotferofanirreurebletitlewilfdnlhtee (3) businessdays effeCe(Virrg Setter's offer,B~yarshadbedeem~dtohaveacceptadSeller'soRerofanlrreureDbtt0e. HBuyerrejecffi~aker'sofkrumeketitleirrsraabffi,Sekershaktllar make title good and marketable of record and shall be subject m the provisiwrs of this agreemeMforiailure to tirndy presets good arts maketable tike of reC01d. - A. If Nokce fe given and Seder makes tike marketable, titan upon preaerrfetion u Buyer and proposed tender of documetrtation egg ttat tltlehasbeenmademedce<able, andHnotobjecteduinwdYergandwltlrkr5brrsirrsas daysofreaeipfofSeketsdocumeMakan,thecbsingshetl uke pleas within fen buskress days w on the scheduled doshrg dau, whichever is Isar. B. ifSeHerdoesnotglveHokceoftrrffirftiontomaketltlemarketeblewkhintenbuslnessdaysafterrecefptofStryarsTitleObJeckons.lhisPwchase Agreement is cartcetetl and the earnest matey steak be refiarded to Buyer: C. SeleeUah of TNIe-Cleating Cure Period. j'C.[i) and C.(2) are afaerneHw ranadtee. ONLY Olin OF Tl'i®8 CAN APPLY FOR TfmS PLO2CHASEAGREZflNENr: tie)tlrerpar{ycanrrota~namaetlrene30ro45deydelayforthedosHlg,aefaaC.ry). MbotriparWaean enaereaforrgesdakyAw'itiecloskrg;aeAeetC.{?). SELECTONLYC.(1)ORC~11~ IPTHEPAFr11E3DONDTSELECTC{7}ORC.(Z), liY CHECIONG ONE OF THE BOXES BELOW, THEN C.(1) ALfTOMATCALLYAPL~ASATE7tM FORTHIS PURCHASEAGREEI~NT. Q C.(t) is selected as a remedy for ttds Purdrese Agreallenf. (1) Sellashakhave30dayafromn3celptoFBuyerswrittenTlkeObJedionswun9lheDauofCbeirg,whlctraverdatelefater,tomalrektle marketable. k Notice is given tart the ffiated pabd rlgrtreswkhotatflle (x3ag made rnarl®table, Buyer may: (a) Cancel this Purchase Agreement by notice u Saker pursuant to Mhmesata Statutes Section 569217, Subd. 3 (adowkrg Seka a 15 daY right Lb sae) antl rrffitirer party shad ire Gabe for damages Frereurrder to the other, arts the almost money steak be refunded 10 soya; w, {b) Elect to fake title subjectlDsome w afl of the Tifu Obkldlons. p C.(2) ffi selected as a remedy far ties Practrrase Agreement. .4+. 4~ •~e at I~$ rn 4ss e1s p6 4r7 47i tl9 .rm fil 602 4t3 Ial 402 era ie1 ,<a 6r9 4ee /9l <9S r90 4pl s~9a 49s as9 2sa sal ~o-x aw +m SO6 101 s29 ale :,r ,511 :~ 211 S-f 516 5lY Sir SM ]~5q set 32L say u2 228 52f s1s sag 331 532 A3 .~ 335 214 297 57r A9 360 Sti 342 tea 3{4 StS 546 sf7 i48 'rt9 330 eSl 331 73J 334 uv 356 SsY 558 339 36e M.S.BA. Raul Praprorgr ~4rm Na 1(19W: Asv,l4nd; Rw. iavr: ~. saa~: ~ zoos: -~. znns soar, soop ~U7fIb5aFd 8talltle(~,Rastdnrfia! Fafdlese Aeteemerlt PUpCHAAEEMEwr 1 PAGE 8,y,~' io (2} smrgaialfawrasAFam.1 w !!D fi~A dgrrmn,.oo~tmauYSra,wrfeanTkl.ohJpcnrxuorea~ilmea^I.ofC{aarnc~waiauv~er rms. k rd^r. mmataa aaa m^rk~t6hte tf Naao-u ptrgn t>utthaataeed perWd ~~ wiawuttlaa hemp ouch marlwtadN. Buyer say axk, as pe+mab+al by hw, orb dr mars of the blkwkq: {a) @tarsad to do41g wrcha42! wnarortr magprtn Ore E?eed of trio 71fk t7b~ettlurn and wW»ut waterer Of q2q roeaWlea. and mar. (q H.a4 damrpee, oaslt, qeW nwaraEla ar,rer+rasn^m ~gn.~r.s o+mal6.d bYl~r td.nw** ~rwarM+h •~aaatiPh pl ~•A I,M Rmgad to the art a(egdnp 11w Obkafdaa, ^rld coowgt,antldl drtNpae aro a~adtd^d} a fel ~~ Pmw+dLltl~ b noird dr TWa UhHe9gr+K fby R6aclhal^n of h,tc Purclwa Apreenatsl bl eotlo m e^dr, M wlfidt orseae..rswct monsY PMd etrte ba rnkmd^d 1a BuY9r, (C) DtmaOmaham3eAartapf!!1a'MddlCOafaandeearrnMbl.lFwYW'sihse.erPOmdlfedbymur. (d) Spegdc p^Komsanea wraldn slk morrtao atlw aucri dpM of seller edgy, Mctudtnd alts arw tireanraSra iwn+ra erar; (4) ~Ca ~eMstlon of nwe PwsMw Adreon«~! peaa,e m+~wb 8teBdss Seel^~s aa9~7.8uDd. S (aAeai~q Seasr P SS OaY dpfd On 0. If thb la muketobla. or h rnrde maelsdabla a4 plOVleed heroin. ~ &lyar deh6ke $ any oftha apnanrents herehl. Sailer miy elyd ailh^r of as kMawlnp apwna, ss parmlded try dw: tt) Cerk2dVaaPa<gsssaa0namentpura^r.nttoaidwrMtrxrseds5le0MeeSedianrsRO~ladreellonda9217.Suhu,3.^afrafainagp^yk~enm ~F^daife~n~Md^t^^Cqufdphddamfperc Nom: la~rAaivNJawSSw~l~rnyphE~x/btrYNiiPfaDartYelsind~'~^r+d~-tlwwlAaefJnagey umlera+MOAaa^.qr.que+nrsMharsBnyer'~Be:k~rnrrm ~.ranla ro a~cwe F.NA ora.va,rw~l~s Anr+ulrraJ ~P•~s.amowiados dlalr inlMiiY^1 R+~+gt9 nrna GNen purouant to Wr aart+#r~ ~ * tlawn payment nom, grr5d maY hA proeenkd for payment ~wtlvMsetamm~p p111C811atidlY: t~ ~ kipgtlriCperkrm^taa wll~ WtrtloMhs tll44eud~ dphtof ayl~ ^r{Fas. fieilldelQ eaelc r'd ~..wrygOb larryera fees. ^:pgiagqq by E tt fllr it rn^~loefaCie, oe h made tac~kairbM ae proMdaG heroin, rnd sdrerdafa4ah M any of thr aprr^mw~4 h9rvln, i311yMf mry, ^c ppnkhW by i^ar: {t) Salk damaQea hnm 3eAer ,p aaals and 4eaaonahta mwy^~s ies.; ~ l:s+rel~~Wrt1s11Braemerk tic ~^oMR#Mresr~rlpht areMa^rigs,InqudUlp tellowinp8eflreralsidbrlphtato~a)eaeneriher ~) p~+^~.attohtMVw6ota6taudaaSectionBts9,~77,Sabd-3 early shse ba a9aM for detnarpa hrra^ki^r b tlr uew, and the ea,2a^t maroy wtwA Oa reNtpad to ouyer . ND1'~ tteru rw~ehaa,ao,.w,.trt u a^rrRSeld slaNrpath2»araeeltLdgrur 9.e11aa OBS317, eertlrrctPr~orlawns and alafi~ay pravl^1^na her rai{Iitdia0 Of the rams[ ro^rrryr bq guYar IMl~ht ha m ^onhlat: fq, SrOl1CES. Ali noeaR ~ lyrafn ahan be btrMdrp and dNAa1194 penateey arrta&rdy, tn+ adtlrees n shown at Prrrpraph ~ above end, Y ioea^d, nra ^a^,-err as of bra dab d mdWq. 17. atN Of LARC. et1M^ die Qu~y4q «f4qulrw6 a wn6rf^fon d I~od awrlad nY seder, senor shad p~ Sn iS1Gd11Ai1011 axpemee rnd ablainaenaepetaypor.rmrp4slspprovala, seAnrvarankuatawkQalduaflrambrtlte~iprw+ru~tpdecorner^en..ieaaawnwnpixo~+~ed far r^ooMna at olthe ~ of t7^ckrq. 16. atut2lpsarw iAtrl, Thle d-Nam.n.u 4w t1bVePtled dY the 1^~ Mda $ada oT rAkrbaota. 70.1MlTwto~6,SNOf+s1.ANq~n-toi4.oaoPWM l1iW~drda.adat'amelanalt~ri'thrtepuidadvaraeNand~yatJe~~ btq~eCSeraene^MaymarKalthaRrUperlyorarylr~ndedupagftheRropyrtr,~h.t~1^rdaeknptAgWrssNeftbd4cio^a krlowkdpa,If •hY.6fdtaaklaler2Geofrr^gadr. aharsland, ertleed dde mrargiSrC(Ygtlrsrql prorr^rb- IFBrrysigc m24^astdY knaKpahdthessmnp+ma,Aeaf algMwsht7a ux*2ea Salterr di.do^4rms+aaardinp aloes ar2mrq. 1~+~5#n,.hax nu.ib~wgaro~abn+rapue eo mrs awrldre Aanwa.mJ CI t~umto~~attpsalaltr: s~rcn.u~o~s,si.~v~aivoP>.aanrufw orsc~q~wm. r~ts.an.i~Pr.pq,~y~oea rlo. a (iaa7), to er~iuded ^t ^n addsntkan m try PreMges Aerarenert :a. 6ik6iN'E,arftaaWT. At c7aakr6. saatt .tern r~aptsrneN tf» wenantier artl rq~aaaiplpana fetthh R-rralare Apnye~ard ay alreaalq and ~+sphM160eSatbfr GwgsyaeclneBJrnklFb~mNo.aa.s,~(foio~eryllB-M)erLe.13(mrr~r117aAarlibld))f~dadiot5u1.r.8anars ropmcadafir4n aw rss aeclmlbrahres tare h^^rr plpcad on the prapertr dace ttr d^rb or ash Psveha^e Jlpmalnwt 27. 4`7.¢~iq. GpNry! atYetl he ~ Ihb b4aa a t'daei'r at eMns ndRr mutvgay apaaebla IendPtt. l8rrlydlh^riomlrx,• 6706 BptgY fitrtl6eie hMV ~t NaaYla, srdrr ud d G1orr that' Sodd $edany P4^trbafs «Fidettr Fa ptlon Hpmppa Ib-Ille prrpaser ~ elate ~ iadaral ta%iodnc. taopfNO eQSrs. '1tM 99~h rn acaMl6. rc notdoxrmmirred by ossnr pl6rMblh e(d-k Appasmnl, slyd bs pale at feeowt /1. SELLBR3 Cos7fl. ssitgr ghee 1~ the fitlowirq at ~.klp: _ 2 paaarleru en ~ ~ 1eeR and reelxdblq {ads 1D9sIOhAeltaulheftyeldrl t3arar+a adhsp at heneN~ M S^A.r. S. aoctianerd pntmrallul ends far S^iicra deatl of oentract:knd..d, 4~gfttllral9 a! Karl F.Maie Valrq genr'a alndarl. Yy6@ Oiadlarra CutlFlsrole (if tagldfadl, rrd arsy athsr docurnand nacemyta ltadrpocd arM nurNairhk tltl^ br S^Iprs dead ar eentraeMa`de.d. 4. dead Ira en I;dwrs dead erld artrApdadq~tF Cgrparvaatirl dead tore drsrpod lmOVrhernafote SteaAtrs Sar$rq,Mi.15Z. 3. Fes. nay^h1e m seer's hwya or to ^ ae.er I~ fa oanduWnp Ere 4fmfirldgrparppl of thb dgrkp. tt Sa9rr h not prnMtlinp e laMlyM ar ihle dogm'iw'tlM tRM-karrt4.r nar6oeat{lMCia^Ie6 and il8uyerkahmki~lp ~+ar+nwt0ape tinetefnta ntdtlfe ems ar k let arpur-sdbdaa'daadoe8,pfea'andA~osa+egainGfae.'ihen~agrshlfps7renefiYfaTthetla~taf.or3166T 66~~whidavw araor^d ~ jHf, 6. NIQ atra the Nye' - -~~ rt• 11 r. ~tJ11FR'SCZ]~T$. 9sMrahaa! Ralr ~~ :tL IiBarpGeirll, isRMC. !MlhMldkge ate srrnteiarre of omaaaph 10.N. shove. 3enar m^Ima m rans.sanbtaana a wrnaMks Irv ,>K111it ^1°~f°"IO1I evrterrra ar tt,e eeeeeoiv_ ear (e ar iMth ^ aaMOar of 1 a Or Crfba 8f8'd frZ68 T98 8Z9~41 88908$88S6 SWk~ITIIM NIMZI3HS~w°~~ L~~ZO 6008-6S-Jflb eq ~rJ( M.S.B.A. Real Properly Form No, 1 {1984; Rav.1998; Rev.1997; Rev. 2002; Rev. 2004; Rev. 2005; 2007; 2008} Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMExr ! PAt3E 7 of 1Q 961 362 363 364 563 566 567 s6s %9 570 s71 m 573 57a 573 316 3n sag s19 sao S81 592 553 ssa s5s s~ 557 SSa sag 590 ~I 592 s93 594 593 5% s97 s9s 399 60D 601 602 so3 6a4 605 606 607 (ice 610 621 612 613 (DraRer. conafder Is~uesW esstgnment and of sua,~ssion-in-&derest J 23. ADDENDA. Atleclred are the to8c4ving addenda which are made a part otthis Purchase Agreement [Checkonly those that are attached.) FINANCING (Salad Doty one finenctn9 addendum:J Financng Addendum for Comrentlonal ! Pdvataly (neared Mortgage, M.S.BA Real Property Form No. 2 (2008) Fixnclrlg Addxdum for FHA Irreured Mortgage, M.S.BA Real Property Fans No. 3 (2008) Financing Addendum for YA Insured Mollgage, M.S.BA Real Property Foml No. 4 (21m8} Flxndng Addendum for Seller MoRgaga, M.SBA Rpl Property Fam No. 5 (2006) Filranaing Addendum for CoMreettor Deed, MS.BA Baal Property Form No. 8 (2005) Financing Addendum far Assumpllon, M.S.BA Real Property Fpm No. 7 (21105) >mSCLOSURE AND CONTINGENCY: ® Addendum to Purchase Agreenrertt: Wetlands, Shoreland, and Food PMin Dbelosure, M.SBA Real Properly Form No. 8 (1997) Addendum tar l.entlngsnt Sacs or Puroheae of OUler Home(s), M.S.BA Real Property Form No. 9 {1997) Lxd PahdAddxdum for Housing Cormtrurlad Before 1878, lt1.S.BA Rest Propalty Form No. 1i (1896) OMWoaure of Sewage Trsahrrem System, M.S.BA Rxt Properly Form No. 14 (1998) Corlditlon of Properly, M.S.BA Real Properly Farm No.1S (2005) AddxdumtofWrMwaeAgrxmsnt survey,Appraw6D.veiopmeuttaraiuetron,andArcheoloploaliNismrk~5vrvey,M.s.Br,.Rxl Properly Foml No. 17 (2006} BuyePs Homo IxpscWn Cerdingancy, M.S.BA Real Property Farm No. 18 (2005) Wall OheAOerrre Staterrlerrb M.S.BA Rest Properly Form No. 21 (2005) Metllamphatarolno 1Nsebsare Statemenq M.S.BA Real Properly Fonn No. 22 (2005) TITLE ISSUF~: e Addendum to Purchap Agrserrlarrt; Title ixux, M.S.BA Reel Property Form No. 19 (2009) Addxdum to Purchase Agreement: Taxrrls and Partlx in Posseasten, M.S.B.A. Real Property Fonn No. 20 (2005) COMMON INTEREST COMMUNITY: 0 Addendum to Purchase Agreement : Common Interest CammunNy, M.S.BA Real Property Fartr No. 12(2004) otha15: 'v.iz a-4~-~Fc~ ~,~ ~~... C1t~ -yi ~ can 1 ~, Z~ cg ~P. 24. TIME IS OF THE ESSENCE. Time is of the essence for all provisions of this Purchase Agreement. 2tL MULTIPLE ORIGINALS. Seger alxl Buyer have signed [number) odginais of this Purchase AgreemerN. THIS 19 A LEGALLY BINDING CONTR14CT. BORE 9ICiNING. CONSULT A L/lWtrER. Mlnrlewfa Isw permits Iixilaed real estate brokers and xios agents re prepare purelrsas agroerrwnts. No roeommlwldeUon or representation may ba made ny arty real estate broker or sales agent as to the legal sutflderlct, the lager aNecf, or>he fax cottsaquencea of Ulie oorrtracL These are quvs>bns for your lawyer. i agreeto sellthe propertyforthe pdce and terms and conditions settath abare. SELLER: (date) SELLER (date} I agreeto purchesethe properlyfortha prtoa andtermeand corMOione set forth atlas. {/ry ~~,(~~/'4~j~ ` G {dada) BUYER: ~'~~~ 1 (date) This Purchase Agreement was prepared by. 'f M.S.B.A. Real Properly Form No. 7 (1894; Rev. 1898; Rev. 1997; Rev. 2002; Rev. 2001; Rev. 2006; 2007; 2008) Minnesota Standard. Residential Purchase Agreement PURCtws~ AcR>a=nnenlT / PA+~F 8 of DNuvs whe WWII halal S'Mlarer Bnwt~ ai/h Mtw f-wnesrOen~ Lawyarfor Telephone: FacsittdN: ListlngAgenta~Brokarhortlristransaclion aie: Telephone: Fala<im7e: S'e~ng Agent and BnNmr (urM/e transadlon are: Telephone: Faeslmile: 8uye/s orLends/s 7Hla Insurer. Telephone: Facsltrdle: .TC~ -- ~c~-~ jai a.n. ~- - ~5~-I ' '~ u ~,,~,~s 'r+~-1-e 1 v~Su-ter' ~~fo M.S.B.A. Rest Property FotTn Na 1 (1994; Rev. 1896; Rev. 1887; Rev. 2002; Rev 2004; Rev. 2005; 2007; 2006) Minnesota Standard Residenifal Purohase Agreement PUizct4ASE AGREEMFM !PAGE 9 of 10 PERSONAL PROPERTY AGREEMENT 1 a 3 4 s 6 7 8 9 le II 12 13 Ia is 76 17 IS 19 ZO 24 ZZ T3 23 26 28 29 30 32 32 33 33 36 31 38 39 40 4! az 43 der 43 46 a~ 48 49 30 31 sz s3 54 33 ss 57 58 39 61 6Z 43 ThisPersonatPropertyAgreementisasupplementtotirePurdraseAgreementtowhidlitisatlached. Seger'sobllgationlob~sferHdetathepersonal IlrapeAy Is ce~r>9atrt upon a successful dosing and trarrster of the real property title to Buyer accardrrg to the corms of the foregoing Purcha~ Agreemenk A PERSONAL PROPERTY INCLt1DED IN THE SALE PRICE OF THE REAL. PROPERTY, These llama of personal property are included in the price shown for tlfe real property in the toregoirrg Purchase Agreenrenk /Select ontyorre offhe foHawrrgl ® Buyer will accept the properly °as is° hr its corrditlon et the tune ~ dosing SeMerwarrarrfs That these items of personal property wr11 be in working order on the day of dosing. For }ha purposes ofthis Personal Property Agreement, "In workirg order' nreana that the Item Turrdlans forihe propose ttrat ft Is Intended to perform, that K is not in violatlon ofarry pubiiocodes or regulations (although itmaybe legatly mntxKdummg undercrurent law).that @ does not prasenMyneed replacemenkdeanirq,repairsorsenrice;Ihatitien~missNganyessentlalpans, andtimtilsantyknperfedionsare'msmetidarsigrmof'Weerand leap assodated with a product of tls age. Sellefs warranties and tepreseMatlons oonteined in tlds Persorrai Properly Agreement shall survhre the deMvery of the Deed or CorrbaG for Deed and any BNI of Sale fortlre persotrel properly. Any rlotlce oFa dated a claim of hreaeh of warranty as to °in wortdag order must be in writlrrg and must be given by Buyer to Sellerwithin 30 days of the !>ete of Possession or t79 deemdf wahiari. Title to personal Property passes to Brryerby a bW of sale. Upon delh+my ofthe Deed. SaMershaM dealer a Bill of Sale canlakrkrg warranties of titm for the above personal property. Seller shell use M.S.BA Real Property Form No. 90 (2005), Warranty BIM otSale err a sim0a form cordainirg the idlowirg wamarrttes oftitle: 'SeMerwarrmlte oral: Seller ~ iha owner of the persorrel Property described above; the personal property Is froe from ant liana, claims and encumbrances (except as Ilsted above); and tlret Seller has the fight to Setl and transfer tMle ro arrd poasassfon of the personal properly to Buyer. Sellerwamarrta and shall defend Buyer's title to the peraorral Property apalrrst arty and ant persons wfro claim arty interest through Seller's (Merest in the personal property descnbea above,-subject only to the Bens. dabns and encumbraneas I~ted above.• Ttreae warranties era not Intended to change or limit the wamarrtles of NSrtresota Statutes Sedion 3352-312 err to slier the remedies avaiiahie to Buyer under Mkrrreaote Statrdes Sedions 325F.68 -.70. At dosing or prior to doskrg, Seller shall proNde for payrrrent of, satisiadion of, or rNeaea of arty existlrrg trees, claims, or encumbrances on the personal property, exceptfor the (otlmving enaarrhrances which Buyeraccepts or asaumee /Bst herej: This supplement page is Initialed contemporaneoustywlth the signing of the Purchase Agreement. INITIALS: Sellers Buyers y~ _ ~~;~ B. PERSONAL PtfiOPERTY PURCHASED SEPARATELY. Tire following items of personal property owned by Banter and Wrrently boated on the real propertyshaM be purchased by Buyer at the price strewn for each item. These items ere rrot included in the price shown for the real property in the foregoing Purchase ApreemaM oral stud be paid for at dosing. ~-! I M.S.B.A. Real Properly Forth No.1 (rasa; Rev. 1988; Rav.1997; Rev. 2002; Rev. 2004; REV. 2005; 2007; 2008) Minnesota Standard Residential Purchase Agreement PuRCwnseAcR~MErrr !PAGE 10 of 10 Suppfemer~l Page ~-~ .~ WELL DISCLOSURE STATEMENT PROPERTY DESCRIPTION: 7422 Fourth Avenue South, Richfield, Minnesota, which is Iegally described as follows C'~Perty")~ The East %z of the South 59.45 feet of the North 38b.7 feet of the East'/z of the Northwest Quarter of the Northeast Quarter of the Southeast Quarter of Section 34, Township 28, Range 24 MAP: ATTACKED STATUS: Well has been sealed and there has been no change in the number or status of wells since the previously filed well disclosure certificate. 35563ivt CBR RC125-278 ~- 13 ~` $iATE OF MININESOrA DEPARTMENT OF NEALTN ABAIiDONEOWELtRECOAD ~~«~~ i. 60A-TION er Yl®L lrn. ~(1gPIp $llleefWtirollutoea) *.n.l+o a..n 1rwgn..Ln tt.wM.nLw ewamlta tWa,en a lest. txrtl+ ta~pw.q tlr/awra N 8 tt Mat W RICHE'IBLD 028M a 2191 w 34 -NS-SS 40 "' 01/22/93 wwwar au.ae Anew aiu tf, a arL ltellts~ .r cxlau/ aan tload aotaultataelttoo*re.N "'r""a01 7422 4TH BttEHtng So9rrH + O ~r+ • O twrLn O o~r^ ro 0 alo RICHFIELD, RH 55423 :Otrlsea sOrrt eO~lta/ rl^ s O trrn . e ^++~1+ • O ra.LrAllx tLnw/mtelteaaawa P~uwanelaa>w'x~ ~ .tto a .r radla` aoexlmtcraxs N ~~~ 11Mtr aLaw~aad ~ Qtb G/1A'"- asw..~/p~. mw..a [~i. Ow xal.nrsaN a.gta eadrwa.ae.at~Wtt µ ~ - ~„a5E OalpaaLry, ~a~- --f- • j-- -~- W ~~ 7. tJe! UlAa ~ + QTR < Q MCIMM ~ (] IIp1611Q ~y z 0 s p watt s 0 uamn i_• ~.5.~ ~,~ ~ O TlrrwL a O ltmadw . +e0 e~x O O a. nliowemr oaaeno ltxae M+w Aflwa n sitrrK axn pigrry Wb.s Lidertl ater~ )IANA OR RICK SAID x ww~iron~oa aown rvwMnoet ~ x an Lnaati itaeLr tanxaan Lg tan nw waa s nixty rM. + at elalxxLy u RPApNxi(~ t O wa • C~ttraala a d aC~orw a Owwa aOtwlYa sperLaa.elad ~ w<a e n a 1o L.r a O; 6uMna+M l'an ~e.r a Ptr~l Oanflda tan_are L 01!22/9 1 Q lYYtAdyMf • Q tYYalllYlN a p w~axlt e p _ te,iFYN~IK9,ElNM71Q14 B0YCFliOATA.CASt1f~~A10Y~CAe1Ki6!@iORAlW.EIG ' ~ NM117 ratltattexaxxotrlAnox R8I40VED 23' 9i00D RODS 9iITE PLUNGER FRdPI +~$+t'"'a'"'" agCsiipi°a o0 9iHItL... o~mn+awan--O-e~S-swy~r•- WELL LOCATED OIl S9i COANER OiP H7lS8MEHT... - tawaaw:aautt~atFCewTALanmw -~tf-+w•~ASCr^-St$NSli- e'a' lrw alndacua.Lar~..++eT Q(raa . DISTRISOTIOA OF COPIES: 't5va rpe~uLUaootl . op~.9.+v,LLw spnwa«.wg STATB OF FIIH[(BSO'PA = O ~ ~ Op,~ e O ~ORH LOCAL CITY - • tRALEN9:E WATSE SEBVICE9 >a txaeTtxta vwsle 0'rw ,t.leL Tartar a +Lrmiw ana CUSTOMER COPY a~w..rr N ~naa~a arem a a Lady OLtt/ rLraa ..rty la orar4'+ O T•• ~p0 ~qSi~ ~ TOMBR FILE At.aeara: lwmurn xnaaraa n, lr,~ wai mlmramn t>6amcAmx ` ~/A . ' TLII aM ,.. attLN rtlr ltr Mgt and rr tapal ~, lgT~,j~ r t~. as r. er a nr rn+r~..r w.~ N ~,( m M71LEAl~E 9iATER SERViC88 i~760a /~ ~V _ N CQ• lA~SQ CATiNTY AB~if R7 lifT9rt! 7A `~ 7~\\~ IWw P -028-21 41 0055 { 4S1) ~ •eiY QleiJ22J9 . ora WPIGM. A9/DC0lED Wl1L fErAla7 NM M rxa h ItgrnY Tiartt9 lWta d Alta iI-OR-AAl!! lRE INIU Ei~IO r 'this form approved by the Minnesota Associ;~tirgn of RE,4l.TORS", . :._... _.- which disclaims any lial7iNty arisir~y gut at use ar misuse of this form. Cfi12407 Minnesota AssoCiatlon of REALT04~S°, E~rva, MN t . lasts .._.. `~.~ t `~- ~ ~~$ ~. page ~ ~. ~1"-~ !-R~!'"~R! f, IH"~ {a~/~ ~6c isy 7dYaSY!®~/Y ~~ ~A~~ti/~~JJ {® ®G Y~ ~~~'~/~i, 6/19~V~n a. ~c~l~'al~~ IY1/1l1l~T~9dAfl~~ l7'~~IS ARE lye' I~A3~"I` ®~~~ As>~Ir~ou~. 5. Addendum to Purchase Agrean7ent be#n~eert parties, dated ____....~ ~~ , 2® _ ,pertaining 6. to the purchaso and sage of the property at ~~ ~ ~- ~ -~-- -_ 8. This Purchase Agreer~sent is contingent upon a comp#ete bottle inspections} of the property to determine its condition. 9. Any and all inspections performed by Buyer shall constitute a aomplaYe hams inspection(s). 1 t3. Any 'snspeetion(s} shsttl be sore by an irtspec#or(s) +~f E3uyer's chaise. the #rtspector(s} should tae qualified to do the 1 ? . inspections}, as sv'sdenced by a license or professir~nat designs#ion. Buyer ghal(satgafy Buyer ea to the qual!'PlaaBft~ns 12. of the lnspeatar(ej. i~. Said inspections} shall be at payer's sots expense. 14. Se#ler agrees to melee the property reasonably available for said ir>spsctlon(s). 15. Any inspections} or tsst(s} don€~ by 1=~l,~1, C1VA ar any ether governman#al unit shall be done and paid for in aceort9ance 1+5. with dhe applicable regulations and are rot part of this inspec#iv^n Contingency Addsndurr;. 17. Buyer shall not have the right to do intrusive testing without the prior written authorization of Seller. 7 8. Par purposes of this form, "Intrtastvf; testing" shah rnaar~ any testing, inspections} or investigatian(s} that changes the t 3. property from its origirsal condition or other+nrise damages the property. 20. Seller L ipS [~I~~~ 1~~~' agree t4 aiio€v buyer try parforfn Intrusive testing or inspection(s). ...°( ,near one.}-..___._ 2t. if answarYis t9r;9~S, Buyer agrees that the property 3hail be returned to the same condition it was in prior to Buyer's 22. intrusive testing ai Buyer's soil expense. 23. 1=ar the pur~ss~e®s ref this Addendum, ..ba~slr~ss days'° shad end at 11:59 p.s~. and ~Ro not Inclra~ie Batu~days, 24. Sundays arsd state and federal h~alldaoye. 25. a~li irspec#ion(s} shad be done within _~-_-. busin+ss days of final acceptance of this Ptrchase .Agrea~me~rt. 2s. Buye; shall 'nave these options following inspection(s): r7. (t j if Buyer, or licensee representing or assisting Buyer, identifies any issues p,srtaininc~ to the praparty resulting 2F. from the 'snspection(s) and intends to rt8gotiate the identified iss€aes with Seiler, then Buyer, or licensee 2y, representing or assisting Buyer, s#~ali Warily Setter, or licensee representing or assisting Sailer, in writing.. 3t1. describing the issues and proposed r®medy, within ~~-- business days after expiration of the time 31. perod specified on line 25. - 32. if Brayer, or licensee reprsserttir,g or assisting Buyer. notifies Seiler, or licensee reprr~sentir±g or assisting 33. Seller, of the identified issues and proposed remedy, and if within _~~ business days after stash 3a, relics Buyer and Seiler ha+,re not agreed in ;~~riting to a rersedy cf the iden~fied issues, this B:arohase Agraemerll 35_ is canceled without further notice rflGuired. Buyer and Setter shalt immediately sign a i^an~ceilafion o~ 3ti. Purchase Agreerrteni confirming seta ranceltation and directing all earnest rrsoney said hereunder to be 3?. refunded to Suy~sr, and th$reafter neither party shall have any forth®r liability to the other. 38. Anchor; ~s. TF#lS lS ~- t~~~AI.I.Y 131~~1~1~ Co~~~Aa/1' ~~1~~~iw ~Y~~~~(s) ,~~~ s~L~.~~;s~, 4G. l~'!Otf ~1=S1R~ t_I 4;AL €~R 1°.AIC A~VIC~, C04~J~at,3le'~ AN A~APPttaPf3{~1T1` PR~~~SSBQ~3AL. tv4r~1:1~::.4-t (8It17i ... _....._._..~. 41. ~~te ~' ~ ~ 42. Page .~. '~ 43. Praper$y located at __~~ `~ ~-~° ` ° =_. T~ .-~. d3t€. ~ ~.,.,,?~ ,~ 44. t2} htotwithstanding any provision to the contrary or any notice given, Buyer may unilaterally waive any iss;.Fas, 45, providing that Buyer, or licertsae representing or assis#ing Buyer, notifies Senor, ar l~censeQ repre5gntirtg or 46. assisting Seller, of r~aiver in writing,'~rithin the t!m® spectfaed an Bins 33. 47. And,'or; 4@. (3) ~atwithstanding any other provision of this Purchase Agreement, Buyer may, based ot? the it~spectian~s}, 49. declare this Purchase Agreerrr~sr~t oanceled ley written nonce to Seller, or licensee representing ar assisting 5C, S®Ner, within - ~ business days after exl~iratlan of tha tlrne psri~3d specified an !!no 25, in ~~hict? case 5i. this purchase Agreerraent l5 canceled. 52. !n the event Buyer declares this Purchase Agreement canceled, Buyer and Seller shall it°nrr~ediate3y sign 53. a Car~cEltarivrr c-t ~'r,trchase Agreement confirming said cancellation and directing all earnest money paid 5~i. hereunder to be refunded #a Buyer. 55. if Buy°er Balls to lava the inspectlon(s~ performed within the #lme speaifled in line 25, or does nat,~atlfy Seller. ar licensee 56, represertttng ar assisting Seller, of Buyer's decis°:on within the tune specified in lines 34 and 50, t~sen this Contingen;,y 67. shall be deemed rerrtaved anr~ this ?urchase Agreement shat! be in tali farce and eft®Lt. 58. Nothing harem invalldatss the warranties agreed to in lines ;?1 C-212 of this Purchase Agreement. 6~. seller, or 4icensee representing or assisting aeller, J SI~ALL'(~S~l~4LL ~lS3'f' have the right to continue to c;f=er .....,..,,.,....__.{Ghaarak orie.k__.....,.._.... 6~. the property for sale until this ~c~nttngency is r~rrta~~ec#. ~,. . lSek9ri t~e~se) 63. 64. _ _ , _ _. ._ ttaat9) (BUVBt) t tDBt~j ..~.. ~.r..~..__..~.. ~aagB~ t'S~ve~d taus) TlilS !~ A LEGALLY ~IPd[3!!~G ~®fd1'~A~T 8Ir`i'ViFE~Id 13t3`~IER(S) Al1~ll;3 SEfWL~~{S~, I~YQU l3E~ll~1~ lse=CAL ~F~TAX l~®'4r'itr~, Cl3NSUleT ~1N AI3Pl~i3PF~lATE P~iOPESSI~hIAI.. __.___. .... _ ._ ... refs r~rrn a~rpreaved by ttx~ t~ifnn®aata d~ssoaation at ~EA~TOi~s®, whdch tliscdalms any iiabiNty aNSfng aut of rise ar rnisuse ar thls farm. ~ 2007 Minneatita Assoaiaiion of ~sa,E.A~LT~AS~, Edina, MN 1. fate ---~~`.i.~'~_.... 2. Page ~ 3. Addendurr~ to Purchas$ Agreement between parties, dated ~ ~ ( ~ 2ta .._ ; pertaining d. to the purchase end sale tr~the propertyc at.r ~ `"~~"E`~' _~__~~_ ______ S. There !,~ ilS ~ lS Nt)"f a Buyers ~:~nartciaP f:?isclcisure Statemr~nt submitted with this i~urchase Agreement. .._••(Gher~c one.}....... 7. Buyer shat! apply #cr and secure, at Buyer's expense, an BHA INa~IREY3 _.__.._. ~ ~~ . rrtortgage (e.~., fif~tf, ~4fiM) 8. in the amount stated in this Purchase At~re~ement, amortised monthly over a perioww+ a# not more than _.-;~2.`-~? _.___. S. years, with an initlai mortgage interest rate at na more than°~~.~. p6rcent {yl~} .per annum. The mortgage 1U. application IST~ BE ~AA~E i~il"Y'I•ilN 1=~1i/E ~5) !'~lSSINCSS BAYS a#ter the arceptarace of this Purchase Agreement. 11. Buyer agrees to use bast efforts tr, secure a commitmerst for accas~tanc;e tsar stash financing and tv execute a!! documents 12. required to cortsu;ntnatf~ said #inancing. 1 ~. l=1NAI~~'ilN~ CC9N'Y'1NGENC~: This Purchase Agrearnent is contingent tafxxr~n the following and applies to the first 14, mortgage and arty subordinate financing. 15. (Check one.) t6. For purposes of this i:ontsngency, "~!'rltten State~t+ant" rnsans a Written Sta±ement prepared by Eluyer's rn©rtgage 1 ?. originator(s) or lender{s} a#ter the r !na! Acceptance Bate ±hat t3sayar is appr+~vsc+ fcr the 0oan(s) spec!§!ad in this Purchase i 8. Agreement, including both the first rrtortgage and any subf;rdlnate financing; if any, and stating that an appraisal, tr3. says#actory to the lender{sj, has bean cot~pleted and stating conditions regtoired by lenders} tQ close loan. 2t~. ~j !f Buyer cannot se+:ure such mortgage{sj and this Purchase Agsee;~vtent does not close on rite closing 2i. date speci#ietl, this Purchase ;~greerrten# is canceled. Brayer and Seller shall immediately sign a Cancetfafi+~n 22, of Purchase Aggreemen# confirrrtirtg saki canoelie#ior+ and dlrsct3ng al! earnest money paid hr~res~nder to be refunrferi 23.. to Buyer. 2~. ~. Buyer shall provide Seller, or licensee represi$nting or assisting Belles, with the Written Statsrnent, an 2~. or before i ~'. ~-~'~~-~'--~~` Zl ~~ ?~a. ;Jpon delivery of rite Written S#aterrtert# to Sailer, or licensfse representing or assisting Seiler, the responsitt6lity ~7, fcs satisfying al! conditions, except work orders, required by mortgage origina4vr{s} or lender{s} are deemed 2i~. accepted by buyer. upon delivery of the !Afritten Staterrter:t,tf ti its P>rchase Agreement da«~s not close on the ~S, stated closing date #or ANY REASar~i relating to tinancing, other dart Seller's faiture to corrtpiete work orders to tt»av extent ~~. required by this Purchase Agreement, including but nvt limited to interest rate and discount points, if any, Seller 3~. may, at Seller's option, declare this Purchase Agreerrtent ~.ancefed, in ~wttictt case this Purchase Agreement is 3~. can~;eled. if Seller declares ti'tis Purchase Agreement canceled, B>,tyer and SsNer shat! irrtrtediateiy sign a 3~, CanceJlatfan cif Purca'tas$ .agr~er~rrtent con#lrrtting said cancellation and directing all earnest money paid ha;rettnder 34, to b~; ft~rfei#ad to Seller as liquidated damages. !n the alternative, Seller may seek al! other remedies allo+>Y'ed try 3b. #aw. 36. It the Vlfritten Statement i~ rot provided by the date specifiett ort lirt2 25, this Pt;rcttasa Agreement is canceled. 37, Buyer arsd Ss!!Er she!! ;rnrrtediately sign a Canceftafit~n of Purchase As~reerraenf Confirming said Gancell~tiflt~ artd ~6. directing ail earnest money paid f~er$under tta be rya#unded to Buyer. 38. lis+L~RTGiACvE INSURANCE PREIt~IIUF~IS: Pursuant to federal regulations, a orte-time fulortgage insurance f'rerr;lurrs {!'~flP } dG. rns~st be paid to FNA at the closing of this transaction.'fPteeaid fylertgage insurance Rremium will increase tits mortgage 4t . amount unless p8id in cash at fibs closing. This provision may not be applicable to condominium transactions. 42. 7MIS !5 A I.E~ALi.`f BlNl~lhl~'a t;,~N'I't~ACT BETVtfE~iV C~UYiA~i(Sj ANtCi ~I~t.LEi~~S~, 43. lFYt3U ~9ESIRE t.EGAL ~R ~'A~ Aai~4>CE, G~NS1lL'Y AN at-iPPi~4'!p'~i4A'tfE lal~fllFES~SO+Ct~IAI,.o ~-17 ~~. =~5. f~roperty 9ocated at _ ~ ~ "~-~ -~--____~"s f~' ~.~~-rL`-' ~~J`"~~.~. 46. I7lSIC®~!F!T P~lhlT~S: Of Sealer teas agreed to pay disca~ant paints pursuant !o this Purchase Agreement, a i`rnancang 47. ~iddendum ~lTer's Gontributiarr to Clesi»g ~r~g#~ end Discount Points Izis~st be attached. Nothing in this Agreement 45. shall prohibit Sayer #ram paying any mortgage discount points. 4'g. Lt:3CKlNt~ ~F 3`,AOF~'iGAiaE !~i'3"IrRES'T BATE (RAT'E): The Rate shall be locked with the lender(s) by buyer 5U. (cha+rk one}: 51. ^ W!'!'!~lON F!!~E (5) StaSl~IESS l~A`~S !~F ~l~lAL AGCEfa"l':1RAl~E bF T~tlS p33R~~lASli" AtaREEE~d'~, ~R 52. [J AT AldY T'IRAE PRIUIR'!"i) ~@~G.~a!l41~'s d)R A'S 1~'Et~l!!RE[9 S~' l.:Elrli~R~S~. 53. F~3A C011l1~lTMENiTt~IC9~@~C R~R~ERS: nothing in this !:'urchase Agreement shall t-e construe~t as a an-arran2y #;4iat Seller 54. she!! make repairs required by the FHA cc~miv~itmerrt. However, aelEer agrees to pay up t®$ _ -..- 55, to make repairs as required by the FHA commitment. if the F4~A cvrrrrnitro'tent is subject to ariy work orders far which 5S. the cost of making said repairs shalt exceed this arrsaunt, ,el3er shall have the fottovaing options: a7. (a) making the necessary repairs; or 5~. 4b) negotiating the cost of making said repairs v-iith buyer; or 59. (c} deci~tring this Purchase Agreement canceled, in axt-ich case this Purchase A.greemexat is canceled. Sayer and Seiler 60. Shall immediately sign a Canceii~ttion of Purchase A~reerrtsnf con#irming said cancellation and di,~cting all earnest 61. money paid hereunder to 3~e re#unded to Buyer, unless Buyer provides for payment of the cost of said repairs or 62. escrow amounts related thereto above the amount specified on line 54 of this Addendum. 53. V SEU.ER StriifER agrees to pay any rsinspe~Kian fee required by l~uyQr's lenders?. .._.._._--rcr~ec~c ~..._...._.... 64. ! ElV~3EAE PRt~CESSlt~lG FEES: Seiler agrees to pay miscellaneous processing fees which the IPnder(s} rannot charge 55. to Buyer, not to exceed ~ ~ ~ .___._.____.~~_... -_...._,_......._._......______._.._...~ .-, .._ . 6b. FliA ESCAl~E CtsAtS~E; "lt is expressly agreed that, notwithstanding any other provisions of this rantraet, the purchaser 6 f , 4hali not be obligated to complete the purchase of the property described herein or to intur any penalty by forfeiture of 65. earnes# rnoney deposits or otherwise, unless the purchaser 4~as been given in accordance with HUDOFHA or fl1iA 69. requir+~=nents a written statement by the Foderal Housbny< Commissioner, Depar4rnent of Veterans Affairs or a Direct 7~. Endorsement fender settis-g forth the appraised value at tfie property as not Less than $ ~~.~ ~ issFe price) r i . The purchaser shall have the privilege and option of proceeding with consummation of the crrt7tract without regard _ 72. to the amount of the appraised valuation. The appraised valuation is arrives at to determine the rrtaximurn mortgage 73. the Departrrtent of Housing and Urban ~3eveli~rnent will insure; HUD hoes not warrant the value nor. the condition of 7~. the property. The purchaser. should satisfy himself/hers!` Yhat tt;e price and condition of the araperty are 75. a~:ceotable:' 5, i~E @NISipE~T1~N: HUD requsres rrso:~tt„tage lenders of FHA insured rnortc~ages to provide the form For Yc+ur Protection: 7'. Get a Nol7se lnspectian. r~r~~~~~r~~ ~Q~~~~~ gage ____._.______ ~° __ `. 7'9. _._.__.___ ..._.__..__._._____._.__.u__~_._ ______.._________ --__-._ __~ ________.__._..._._._.-____. (S611H. i (Da18. ~9 f seller) ~;~;at Ir3s,yaq aa;a) 1'~1i8 !S A t..~GAL,t.:'! Sl~i~ltV1'a +Gt3NTRACT SSE t+t SiUYER~~} AiVt9 SELLER{S}. !F ~fOl~! DESIRE LEd`aAi_ f3R T~A3E AI<]VlCE, C~i'NSt3L'` AN AP1~Rd3@~R1~4?!~ t?RC3l~ESS#C9hlAl,. 5?. 83. Iyth1:FA;"!-!!t-~ (8)07) ~~ / M.S.B.A. Real Property Form No. 11 (1998; 2008) lead Paint Addendum for Housino Constnrded Before 1978 Paae 1 of 2 LEAD PAINT ADDENDUM FOR HOUSING CONSTRUCTED BEFORE 1978 ©Copydght2008 Minnesole Slate BerAssocia6on, Minneapolis, Minnasola. (Use ontywth-Minnesota Standard Residential Purchase Agreement,'Minnesota Stara BarASSaaa0on 2006.) , r 1 z 3 4 5 6 7 B 9 to It 12 13 la 15 l6 17 t8 19 20 27 22 23 24 25 26 27 28 29 30 31 32 33 34 3s 36 37 38 39 40 41 a2 43 44 as 46 47 46 49 50 sl sz 53 sa 55 56 57 ss 59 60 61 62 63 6a 65 66 67 68 69 70 71 72 73 This addendum is a art or O !- as 4a Y-tlnt ~a SF' r~Z dy. `~tZ IZt<.~+~i2tC4 tVb.'t'bw?>t' U~uG/1t% t.~ -t't..E tVo'HnLKS't" CiKL:/F+" C: ~. a LEAD WARNING STATEMENT c~ try," Su.:7r4e.~5r (x ukrtr, a{ Srci,.v. at! j a,~„t~4,,,p 2' ~ . lZri.1 e Z'{-. ' Every purchaser of any interest in residential real property on which a residential dwelling was buii~ prior to 1978 is noted that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanentneurological damage, including /coming disebllitles, reduced intelligence quotient behavioral problems, and impaired memory. Lead poisoning a/so poses a particularrisk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any infomtation on leadbasetl paint hazards from risk assessments or inspections In the seller's possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint Hazards is recommended prior to purchase. LEAD PAINT INSPECTION CONTINGENCY Buyer shall have 10 days from the signing of this Agreement to conduct a risk assessment or inspection for the presence of lead- based paint and lead-based paint hazards and to give seller the inspection or risk assessment report and a List of repairs required by buyer to correct problems set out in the report. (Intact lead-based paint that is in good condition is not necessarily a hazard. See EPA pamphlet Protect Your Family From Lead in Your Home for more information.) If the report disGoses problems seller shall have seven (7} days after receipt of the report and list to elect in writing whether to correct the problems prior to Dosing. If sellerelects to make the corrections, seller shall provide buyer priorto closing with certifigtion from a risk assessor or inspection demonstrating that the problems have been corrected. If seller does not electto make the corrections, buyer shall have three (3) days to elect to take the property in its "as is" condition as to problems set out in the repork or this purchase agreement is void. Buyer may waive in wriiing the rights contained in this contingency at any time. Seller's Disclosure (a} Presence of lead-based paint or lead-based paint hazards (check (i) or (ii) below): (i) ® lead-based paint or lead-based paint hazards are present in the housing (explain:) 5~~ ~~t.~'vi~et~ 1.tail lu~>i4 ~ssma,.f^ I~ jxiri- (li) Q Seller has no knowledge oflead-based paint or lead-based paint hazards in the housing. (b) Records and reports available to seller (check (i) or (ii) below): (i) Q Seller has provided buyervuith all records antl reports in seller's possession or reasonably obtainable by seller pertaining to lead-based paint and lead-based paint hazards in the housing (list documents below). (ii) Q Seller has no reports or records pertaining to lead-based paint or lead-based paint hazards in the housing. Buyer's Acknowledrg~ment (initial) (c} ~ it/'~~ ~•J Buyer has received copies of all information listed at (b)(i) above. (d) C'~ /~U~ Buyer has received the pamphlet, Protect Yeur Familv from Lead in Yoar Home, an EPA publication /^~ available atwww.eoa.aovlleadlouhslteadodfe.odf. (e) V _ ~~ Buyer has (check (i) or (ii) below): (i) _ , received a 10-day opportuniiy (or mutually agreed upon period} to conduct a risk assessment or inspection forthe presence oflead-based paint and leatl-based paint hazards; or, {ii) t:~ ~ waives the opportunity to conduct a risk assessment or inspection for the presence of lead- based paint and lead-based paint hazards. Agents Acknowledgment (initial) (f) Agent has infomted seller of sellers obligations under 42 U.S.C. 4852d and is aware of agent's responsibility to ensure compliance. CeRiflcation of Accuracy The following parties have reviewed the information aboveand certify, to the best of their knowledge, that the information they have provided is true and accurate. -. ~l~lfl~ Seller date Pur ser d to , Seller date r aser C /date/ of the Purchase Agreement dated by and , as Sellers, and Listing broker /agent date Selling broker! agent date -lg ~c~~~~ I have received a copy of the booklet entitled: FR®1~ L~.~ I1~T 'Y®IJ~ ki®I~IE I accept responsibility to read and understand this information. E l ~ ~ ~~c ~ Print Full Nazne C `, ~ ~~~~~' 4 ~~ ~ ` { °4 ~,: Signature z ~ ~o )R: Ms Kelly Berg Immunity Development Housing Coordinator ty of Richfield 00 Portland Ave. So. chfield, MN 55423 12) 861-9778 12) 861-8974 FAX Wenck Associates, Inc. 1800 Pioneer Creek Center P.O. Box 249 Maple Plain, MN 55359 (763)479-4200 ~~~ 1~ Lead Risk Assessment Report Site Address: Construction Date: Owner Information: Wenck File #: 1584-06 Date: February 13, 2006 7422 4th Avenue So. Richfield, MN Approximately 1938 Heidi Stertz 7422 4th Avenue So. Richfield, MN s The City of Richfield authorized Wencl< Associates, Inc. (Wenck) to conduct a Lead Rislc Assessment at the above-mentioned properly on December 5, 2005. The purpose was to determine whether lead-based paint hazards are present on the interior or exterior surfaces prior to renovation. Wenck conducted the Assessment on December 8, 2005. During the Assessment surface coating analyses were collected and the condition of the surface coatings was documented. No soil samples were taken because bare soil was not observed on the property. No children were reported living on the premises. A site sketch is attached showing the property layout sample locations and floor plan. A complete list of rooms and components tested is attached. Wenck assessed the painted surfaces on feat<ires or building components inside and outside the dwelling. Upon entering each room, surface coatings were analyzed. Each surface coating reading was collected according to Wenck's Lead Services Standard Operation Procedures and applicable Federal and State regulations. Surface coatings were analyzed in anon-destructive manner using a portable NITON XL-309 X-Ray Fluorescence Spectrum Analyzer (XRF). Lead dust wipe samples were collected on January 30, 2006. Lead-Based Components Within Dwelling: The inspection included the residential dwelling and detached garage. A variety of surfaces, interior and exterior, with different paint histories were, analyzed on-site using the XRF. The XRF results are attached to this report. Bolded rows found on the XRF result page indicate lead concentrations over the Federal and State standard of 1.0 mg/cm2. The following specific building components were determined to have a lead concentration above the MDH action level of 1.0 mg/cm2: Location 1. Room 2 (Kitchen) Component Current Condition Recommendations Lead was found on the wall (A-facing the street) near the kitchen sink. These painted surfaces contain lead above MDH standards. Wall (A): INTACT poor condition or peeling painted surfaces should be stabilized and repainted and a monitoring plan implemented, or the components replaced by a lead paint trained contractor. j L.. 1 • ~c~ - ~ ec~~ 1 of 4 T:\1584\06-7422-4th Ave17422 4th Ave-LRA Report.doc Lead Risk Assessment Report: 74~ .4th Ave-LRA Report.doc ` ^~~ Location Component Current Condition Recommendations Lead was found on the exterior window sashes and frames and interior window sashes. These painted surfaces contain lead above MDH standards. 2. Basement, Cellar windows (all 4}: INTACT both rooms Poor condition or peeling painted surfaces should be stabilized and repainted and a monitoring plan implemented, or the components replaced by a lead paint trained contractor. . ~1.av.1 e Lead was found on the concrete basement wall in Room 9. This wall divides the basement into two rooms. These painted surfaces contain Wall, concrete (Room 9 lead above MDH standards. 3. Basement, - wall C -facing back INTACT' front room of house) Poor condition or peeling painted surfaces should be stabilized and repainted and a monitoring plan implemented, or the components replaced by a lead paint trained contractor. _ Lead was found on the exterior wood backboard for the electric meter. Wood backing for These painted surfaces contain lead above MDH standards. 4. Backboard - INTACT Electric meter: Poor condition or peeling painted surfaces should be stabilized and meter (rear repainted and a monitoring plan implemented, or the components of house} replaced by a lead paint trained contractor. Environmental Sampling Plan: Based on the location of lead-based paint and information assembled during the site visit, Wenck devised the environmental sampling plan, emphasizing where small children may spend time. Lead dust wipes were collected and delivered to IATL in Mt. Laurel, New Jersey. Laboratory results are attached and are also reported below compared to regulatory action levels. Location Type Result (ug/ftz) _ Action Level (ug/ft~) SI-Room (- front entry - Dust wipe <I 0.0 40 floor S2-Room 1-sill <10 0 250 A Dust wipe S3-Room 4- <10.0 40 floor Dust wipe T:\1584106-7422141hAveV422 4th Ave-LRA Reportdoc 2 of 4 Lead Risk Assessment Report: 74L~ 4th Ave-LRA Report.doc ~~°~a Location Type Result (ug/ft~) Action Level (ug/fi~) S4-Room 8-sill C Dust wipe 30.0 250 S5-Room 8-sill C Dust wipe 90.0 250 S6-Room 5- floor Dust wipe <I0.0 40 S7-Room 6- floor Dust wipe <20.0 40 S8-Room 6-sill D Dust wipe <20.0 250 S9-Room 6- trough D Dust wipe 20.0 400 S 10-"Room 13- Floor" (Field Dust wipe <10.U . -- B lank) Lead dust was found in the window systems, but below the action levels. It is still recommended that all windows be included in a cleaning program using wet methods and household detergent until such time as the lead is remediated. No bare soil was observed surrounding the residence so no soil samples were collected. Conclusions: ^ Some of the building features at the above-mentioned property contained lead above the Federal and State standard of I.0 mg/cm2. ^ If maintenance or renovation of the above components is done, a lead paint trained contractor should be used. ^ It is recommended that all windows be included in a cleaning program using wet methods and household detergent until such time as the lead is remediated. ^ If renovations were conducted on any of the above lead-based paint covered surfaces, a visual inspection and Lead Clearance Tests would be necessary after completion of renovation work. T:\1584106-7422~th AveV422 4th Ave-LRA Report.doc 3 Of 4 Lead Risk Assessment Report: 7~, 4th Ave-LRA Report.doc ~ `°t~ Certification of Report I hereby certify that this Lead paint Inspection has been conducted to the appropriate Department Housing and Urban Development Agency and the Minnesota Deparhnent of Health rules and regulations. Based on the information supplied by City of Richfield, the homeowner, and information gathered through the time of the site visit, I claim that all information contained within this report to be complete and accurate. ~k~f~ Signature of Inspector GeoffNash #LR 1196 Printed Name License No. February l3, 2006 Date T:\1 5 8 410 6-742 211thAve174224th Ave-LRARepartdac 4 of 4 ~~a~ Serial #XL309-U2750NR7026 PAINT Wenck Associates, Inc. Header: Lead Paint Inspection Site: 7422 -4th Ave. So., Richfield, Minnesota Date: December 8, 2005 Ranges (NEG<INC<POS): Devi ce PCS No Side Room Source Sub Feat Cnd Clr DI Result Pbc Pbc Error 130 Shutter Cal 1 0 ... NA 131 TEST 1 POS 1.56 0.27 732 TEST 1.1 POS 1.72 0.34 133 TEST 1.1 POS 1.9 0.38 134 A Room 1 Wall Drywall Intact White 1 NEG 0 0.01 135 B Room 1 Wail Drywall Intact White 1 NEG 0 0.01 136 C Room 1 Waii Drywall Intact White 6.2 NEG 0.04 0.11 137 D Room 1 Wall Drywall Intact White 1 NEG 0 0.12 138 Room 1 Ceiling Drywall Intact White 1 NEG 0 0.01 139 D Room 1 Closet Wood Door Intact Brawn 1.7 NEG 0.01 0.22 140 Room 2 Ceiling Drywall Intact White 1 NEG 0 0 141 A Room 2 Wall Drywall Intact White 1 POS 1.31 0.48 142 B Room 2 Wall Drywall Intact While 1 NEG 0 0.1 143 C Room 2 Wall Drywall Intact White 4 NEG 0.01 -0.03 144 D Room 2 Wall Drywall Intact White 2.3 NEG 0.01 0.03 145 A Room 3 Wall Drywall Intact White 1 NEG 0 0.02 146 B Room 3 Wall Wood Intact White 1 NEG 0 0.14 147 C Room 3 Wall Wood Intact White 1 NEG 0 0.15 148 D Roam 3 Wall Drywall Intact White 1 NEG 0 0 149 D Room 3 Door Metal Svs Door Ext Intact Tan 1 NEG 0.01 0.04 150 D Room 3 Door Wood Jamb Ext Intact Tan 1 NEG 0 0.06 151 D Room 3 Door Wood Ext Casing Intact Tan 1 NEG 0 0.18 152 B Room 2 Door Wood Int Casing Intact Brown 1 NEG 0 0.02 153 A Room 4 Wall Drywall Intact White 1 NEG 0 0.01 154 B Room 4 Wall Drywall Intact White 1 NEG 0 0.01 155 C Room 4 Wall Drywall Intact White 1 NEG 0 0.01 156 D Raom 4 Wali Drywall Intact White 1 NEG 0 0.01 157 Room 5 Ceiling Drywall Intact White 1 NEG 0 0.04 158 A Room 5 Wall Drywall Intact White 1.2 NEG 0.01 0.13 159 B Room 5 Wall Drywall Intact White 4.3 NEG 0.31 0.22 160 C Room 5 Wall Drywall Intact White 1 NEG 0 0.01 161 D Room 5 Wall Drywall Intact White 8.4 NEG -0.75 1.23 162 Room 6 Ceiling Drywall Intact White 10 NEG 0.17 0.76 163 A Room 6 Wall Drywall Intact 1 NEG 0 0.01 164 B Room 6 Wali Drywall Peeling 3.4 NEG 0.09 0.38 165 C Room 6 Wail Drywall Intact 3.5 NEG 0.09 0.38 166 D Room 6 Wail Drywall Intact 3 NEG 0.07 0.32 167 D Room 6 Window Wood Stool Intact White 1.8 NEG 0.01 0.24 168 D Room 6 Window Wood Casing Intact White 1.8 NEG 0.02 0.2 169 Room 7 Ceiling Drywall Intact White 2.7 NEG 0.02 0.05 170 A Room 7 Wall Drywall Intact White 6.4 NEG 0.02 0.05 171 B Room 7 Wall Drywall Intact White 8 NEG 0.07 0.18 172 C Room 7 Wall Drywall Intact White 1 NEG 0 0.01 173 D Room 7 Wall Drywall Intact White 1.5 NEG 0 0.02 174 C Room 8 Window Wood Celwin Ssh Intact White 2.2 NEG 0.13 0.29 175 C Room 8 Window Wood Celwin Trim Intact White 3.3 NEG 0.07 0.41 176 C Room 8 Window Wood Celwin Ssh-exter. Intact White 1.8 POS 6.3 2.29 177 C Room 8 Window Wood Celwin Jmb Intact White 2.2 POS 6.57 2.38 178 A Room 8 Wall Drywall ~ Intact White 1.5 NEG 0.01 0.02 179 C Room 8 WaU Drywall Intact White 3.4 NEG 0.01 0.04 180 D Room 8 Wall Drywall Intact White 1 NEG 0 0.01 181 Room 8 Ceiling Drywall Intact White 1 NEG 0 0.01 182 A Room 9 Wall Concrte Intact Blue 2.1 NEG 0 0.01 183- B Room 9 Wall Concrte Intact Blue 5.9 NEG 0.02 0.07 184 C Room 9 Wall Concrte intact White 1 POS 1.83 0.8 185 D Room 9• Wall Concrte Intact White 1 NEG 0 0.11 186 D Room 9 Window Wood Celwin Ssh-inter. Intact White 1.6 POS 4.51 1.59 187 Room 9 Ceiling Woad CeII.Beam Intact White 1.1 NEG 0.21 0.22 188 Room 9 Floor Concrte Intact Gray 3 NEG 0.06 0.31 189 B Room 9 Wall Wood Backing for elect. junct. box Intact White 1.4 NEG 0.46 0.24 190 B Outsid e Wall Wood Backing for elect meter Intact Gray 1.6 POS 1.58 0.37 191 B Deck Wood 4x4 post Intact Green 1 NEG 0.03 0.03 192 B Deck Wood plank/flocr Intact White 1 NEG 0 0.04 193 B TEST 1 POS 1.55 0.27 194 B TEST 1.1 POS 1.63 0.29 195 8 TEST 1.1 POS 1.53 0.27 T:1584lO6/7422-4th Ave.xls ~-a~ /~ ~ ~ Interuattidrial Asbest03 16000 Horizon Way Unit 100 Mt Laurel, NJ 08054 ~~/ •~i 'pclcphone: $56-231-9{49 Fax 856-~31-9815 Tcstin~ I..aboratorics C~~T~'~CAT~ ~~ A~~T,~.LYSYS Client: 'VStenck AsSOCiat~s Inc. deport 7late: 2/2/2006 1800FioneerCreeit O(rpOBoac249 deport Number: 02060462 Maple 'lain MN 55359-024) Project: 7422-4t11 Avc So, 1/30lOb Prpjlect No.: 15S4-05 LLAD `V~I~'E ~A1V~~,E A1~ALYSIS SC~IYIIVIA.RY A,xea Sampled Concentrutfah Lab Na Client No. DeSCtiption !Location ~ /ftD 24$2947 Sl Room 1, Front~Abry 1.00 X10.0 Fiaor ... --------------- -... • ---• 00 1 <10.0 x482948 S2 Sill A . 00 1 ~ 2482949 S3 Raom 4 . Floor ------------ ------------•-------------- - ............................--.... Room 9 1-00 30. 2482950 S4 Floor ...--•--•------- •-- ....-------------• Room 8 0.50 9a.o 2482951 55 5i]1 C --------------•-- -... ...--•----•---- ....... ---------------------------------•••- ~ oo l ~lo.o 2482952 S6 Room 5 . Floor ------•----- -•• ............... •--------- -------•• ...................----...... • Rooxn~~o 0.50 2482953 S7 ...._...-•-------------------------- ..- -----......-- ......................................... .. Room S'~ 0.50 X20.0 - , 2482954 5$ •-•-------•-----------•••-------..._..----------- • --•--••-•--••-------•---------------•-•~• S'f 0.54 20.4 2482955 S9 Room~ "rxoughD ...---------•• ••--------- -----------•~------------ •• _ . •-----------••---•-•-----~-----------.,,-- -------••- 1.00 110.0 _ 24$295b S10 Room 13 - Floor ... ._..__._._. .....------• ..--- Analysts Method: Conunentx: NA'T'Zt3T+TA,~ LEA,~7- Y,~~pRA~'ORY A,~CREI3TTATIUN ~RaGRA1V~ (NY,Y.,AP} ATH~t EY,PAT-NiOSH No_ 1001881 NYSDOH SLAP No. 11421 EPA 5W 846-(7420(7421) "Standartl Method To Tast For Low Concenh'atious OPLead Im Soils, Sludges And Sediments By ,q,AS° Regulatory limit varies by surPaCS location (EP.4/13UD guidelines). Unless othBlwiac staled. insults assume one square foot sarxnpled blarhod requires suhmitWd o£blanks. IA.-['L. assumes that all ofty~c samPlinB methods and data upon vrhich ilrese reaulta sue based, hn+~e abased accurataly supplied by the client. Method Detection Limit (MDL) pet' EI'A Method 40CFR Part 136 Apgandix B. Reporting Limb (RL) upon Lowest Standard Determined (LSD) in atCOrdance with ~A-ELLe1P policies. LSD= 0.2 ppm iv~L=2.0 µa,~ftx R.Lr10.0 µgJ~Z (based upon 1.0 square foot sampled), The EPA 403 Final Rule (40 CFR 745.63) regnira-c that aII wipe ~'ples of saGlcd du5[ shall be collec[ed nsin& a wipe that meets ASTM EI792. Date Receiwcd• 2!1!2006 Date Analyzed: 212!2006 Analy3t: c• Shaffer Page 1 of 1 Approved By. Frank E. El Xaborniory 4-~~ ~k __ 6 ~ a ~ `] ~~¢ ~ T~ S ~ ~~~ ~ c~i ~ Q ~, ~ ~ ~, O Q ~ ~d ~ r ~ ~ Y d N s ~- ~ ~~. ~ ~- ~ ~ ~ e b U °~ R w k' ~ .~ oq V ~ p Q ~ C '~''~' r" U ~ y ox~~ ~ a. `~ ai_ _ _ - -- - - - - -- - - - a -~- ~ ~.. c ~ d ~ ~ W o~~~w ' ~ ~ ~ A v O o ~ F ~ a ~ ~ ~ ~ ~ '~ ~ p N ~ ~ y ~ ~ ~ ~ ~ I ~ o ~ 1 ~ (~ ~ ~ l/ 1A F ,fin' ~ G r ~ A o. ! ~` ~ ~ C77 . ,7 ~, ~ ~r T Up _ y, C~ ~ ~ ~ '`r ,' ~ } ~ Q ~ b v ., ~ ~ = ~ ~' 'r ,L~~v, ~ a .~ .,r~- a~~ 7422 4th Avenue South AGENDA ITEM # 5 REPORT # 39 ~' STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING SEPTEMBER 21, 2009 REPORT PREPARED BY: LYNNETTE CHAMBERS, LEASED HOUSING SPECIALIST NAME, TITLE REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Conduct a public hearing to consider the approval of the Richfield Housing and Redevelopment Authority's Five Year Public Housing Authority Plan. I. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: Approve the Housing and Redevelopment Authority's Five Year Public Housing Authority Plan for the Section 8 Housing Assistance Program and authorize the Chair and Executive Director to execute program documents. II. BACKGROUND The Quality Housing and Work Responsibility Act of 1998 (QHWRA) was created by Congress. QHWRA requires the Housing and Redevelopment Authority (HRA), as a Public Housing Agency (PHA), to have afive-year plan and an annual plan.. The five- year PHA Plan describes the housing mission of the Agency and the Agency's long- . range goals and objectives for achieving its mission over the subsequent five years. The annual PHA Plan provides details about the Agency's immediate operations, program participants, and programs and services and the Agency's strategy for addressing the needs of the community in the upcoming fiscal year. Staff has developed a PHA Plan in proper form and content. 092109 2009 PHA Plan In addition, QHWRA requires the HRA to maintain a "Resident Advisory Board" to make comments about the PHA Plan. The Resident Advisory Board, made up of program tenants that volunteer to provide feedback, had no additional comments to the PHA Plan. The five year plan must be consistent with the consolidated plan prepared by Hennepin County. The proposed five-year plan has been certified by a Hennepin County Official that it is consistent with the Consolidated Plan of Hennepin County .Housing Consortium. III. BASIS OF RECOMMENDATION A. POLICY • The HRA must formally adopt the PHA Plan following a public hearing. • The Department of Housing and Urban Development (HUD) requires the HRA Chair and Executive Director to execute documents. • HUD has designated Richfield as a high performer; signaling a high level of .performance. • The public hearing notice of 45 days has not generated any comments or concerns. B. CRITICAL ISSUES • Failure to approve the PHA Plan will result in receiving anon-compliance status with HUD. "Non-compliance" violates the contracts that the HRA has with HUD and results in a loss of administrative and rent assistance funds. • The "Resident Advisory Board" had. no comments on the PHP Plan. C. FINANCIAL • The HRA has four contracts for administrative and rent assistance funds with HUD: • Annually, the HRA receives approximately $1,433,579 for rental assistance payments and $168,856 for administrative payments. A current PHA Plan is a requirement of these contracts. D. LEGAL • The Housing Assistance Program (HAP) contracts that the HRA has with HUD have been previously reviewed and approved by legal counsel. • Proper notice was published on July 30, 2009 in the Sun Current of the availability to review the PHA Plan and of the public hearing to be held concerning PHA Plan approval. The publication schedule is in compliance with HUD regulations. IV. ALTERNATIVE RECOMMENDATION(S) ~ • Do not approve the PHA Plan at this time. (Th with HUD). TTACHMENTS Summary OF HRA would not be in compliance PRINCIPAL PARTIES EXPECTED AT MEETING ~ ~J'~ Attachment A Summary Update Richfield HRA Five Year Plan, Year 2010 September 21, 2009 The Five Year Pubic Housing Agency Plan (PHA Plan) is a 7-page document, known as HUD Form-#50075; this PHA Plan provides a standard way for all PHA Plans and the Richfield Housing and Redevelopment Authority (HRA) to report that the PHA Plan complies with all federal regulations. To summarize: ^ The mission of the HRA is the same as HUD's: to promote adequate and affordable housing, economic opportunity and a suitable living environment free from discrimination. ^ The HRA goals are to: - Secure more rental vouchers when available. - Acquire and/or build affordable housing. - Improve program administration (Richfield is already a high performer). - Increase program participation by landlords. - Promote client self-sufficiency. - Ensure equal opportunity and fair housing standards are achieved. The PHA Plan document ends with: • a drug.-free certification form; • a certificate that no payments have been made to influence federal transactions; and • a three page certification form that the HRA does and will comply with all applicable federal regulations as listed on the certification and signed by the HRA Chair. The Five-Year PHA Plan in its entirety is always available to the HRA and the public. The PHA Plan is available for review in the Community Development Department.