05-18-81 agenda
HOUSING AND REDEVELOPMENT AUTHORITY
Office of Executive Director
HRA Letter No. 14
Agenda May 18, 1981
Housing and Redevelopment
Authority Commissioners
City of Richfield
Dear Commissioners:
Subject: Purchase of Adams Property
At their February 17, 1981 meeting, the HRA authorized the
following actions related to purchase of the Adams property:
1. Set just compensation at $175,000
2. Authorized the initiation of eminent domain and
quick take proceedings,
3. Authorized the execution of a joint agreement with
the city for pursuing those proceedings.
These actions were taken because negotiations for purchase of the
property had not been successful. However, since the February 17
1981 HRA meeting, the staff has continued to seek a negotiated
purchase for this property, although the eminent domain proceed-
ings were initiated. A tentative agreement for this purchase has
now been reached, and is being presented for HRA consideration.
Attached to this letter is the purchase agreement. The agree°°
ment has been proposed to the property owner subject to approval
by the HRA. The agreed upon purchase price is $205,000, which is
$30,000 higher thanthe just compensation established by the HRA.
However, this increase is the result of the negotiation process,
and has been modified from the seller's initial asking price of
$255,000.°-~Adjustments for the increase in value of the. property
since the time when just compensation was established are also re-
flected in this figure.
The purchase agreement provides that the HRA will assume par-
tial responsibility for real estate taxes and special assessments.
(Mrs. Adams has agreed to drop her appeal of the CP 705 special
assessments). Under terms of the developer's agreement with the
Lyndale Garden Center, the taxes due and payable this year are
to be prorated, so the HRA will not have to pay the taxes for the
entire year. The HRA cost fcr taxes will approximate $3,000. The
HRA would purchase all the Adams property including part of the
bottom of Richfield Lake. At a subsequent time, it is anticipated
that the city will purchase the lake bottom from the HRA. The
city desires to own-and control this area as part of the storm water
HRA Letter No. 14 -2- May 18, 1981
•
ponding function of Richfield Lake.
Lyndale Garden Center has agreed to pay the HRA $210,000 for
the purchase of the property needed for their development. For
this price, the Garden Center will receive the Adams Property,
excluding the lake bottom, three small triangular shaped areas of
ground owned by the city and adjacent to Richfield Lake, and the
development (map attached). An additional cost to be incurred by
the HRA will be relocation benefits.
At this time, it appears that three payments will be made
including two residential payments, totaling approximately $10,000
(approximately $5,000 per dwelling), and a payment for a plant
business operating from the house at 6329 Aldrich Avenue. The
difference between the acquisition and relocation costs incurred
by the HRA and the revenue which the HRA will receive from the
Garden Center and city from sale of the property would be covered
by the L/H/N capital fund and recovered by a subsequent bond issue.
It is recommended that the HRA adopt the attached resolution,
authorizing the purchase of 'the Adams property.
KN/eja
Res/plectfully submitted,
Karl Nollenberger
Executive Director
cc: Community Development Director
Finance Coordinator
Housing and Redevelopment Coordinator
• ~ r •
gowned by City to be sold to Garden Center through HRA.
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• ~ PURCHASE AGREEMENT
Richfield, Minnesota
April 24, 1981
RECEIVED OF The Housing and Redevelopment Authority of the
-~. _ _ -- .
City of Richfield, Minnesota ("buyer"), the sum of Five Thousand
,_~~,«,_,,,x.~.t,;,,,,n.~ ($5,000) Dollars as earnest money and in part payment for the
property situated in the County of Hennepin, State of Minnesota,
- and legally described as follows, to-wit:
~- That part of Government Lot 3, Section 28,
- - Township 28, Range 24, described as follows:
_
~` Beginning at a point on the. east line of said
_
~- - _ Goverrknent Lot 3 distant 1131.3 feet .south
n~--{ --_--- -= - from the northeast corner of said Government
Lot 3; thence•on an'aassumed bearing of north
_
- --
`~ along said east line a distance of 70.36 feet;
thence west at a right angle a distance of
_ -
176.5 feet to the actual point of beginning of
__, , ~°-j . - -- .. the tract to be described; thence north at a
-right angle a distance of 16.0 feet;. thence
west at a right angle a distance of approximately
_.~Y,,.,;.,..,,.,...,...~_ . '~--.-->.-~---- • --• -~ 183.5 feet to the southerly extension of the.
_. .. east line of Block 2, "RAY'S LYNNHURST 2D1D
ADDITION"; thence south along such southerly
extension to the intersection with a line
parallel with and 225.00 feet south of the
'~~` _:-~ '~ south line of Lot 4 in said Block 2; thence
west along said parallel line 128.00 feet to
the southerly extension of the east line of
~ ~ the north and south alley in said Block 2;
_ thence north along said last described extension
to the south line of the east and west alley
- in said Block 2; thence west along the south
line of said alley and its extension a distance
_
- of 202.00 feet; thence southwesterly to Judicial
~ Landmark No. 7 set pursuant to Torrens Case
_ No. A-2547 on the mean center line of the bed
of Grass Lake; thence southeasterly. along said
- mean center line, determined in Torrens Case
- No. A-2547, to a line bearing 82 degrees west
_ _ _
__
+- y '- (assuming the east line of said Government Lot
_ 3 as bearing north) from a point on the east
line of said Government Lot 3 distant 1176.30
feet south from the northeast corner of said
Government Lot 3; thence north 82 degrees East
to the intersection with a line drawn parallel
with and 176.50 feet west of the East line of
said Government Lot 3; thence North along said
parallel line to the actual point of beginning.
(The parties acknowledge that in order for the seller to fulfill
her obligation of conveying marketable title in recordable form,
it may be necessary to revise the description or to describe the
property as several parcels). All of Which property the undersigned
m
hereby agrees to sell to the buyer for the sum of Two Hundred and
_
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d ($205
000
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the buyer.
the following manner:
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Earnest money
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n pa
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0, and
he balance of $200,000
in cash on the date of closing, which shall not occur later than
May 31, 1981, time being of the essence.
In the event that any of the following conditions shall
occur, this agreement shall be null and void and any earnest
c.,,,,~~,,.;,.,,r,;~,,,,,.z,;,,~ ;,;~.~ ,~...,h.., money paid hereunder. shall promptly be returned and refunded to
the buyer:
1. The Commissioners of the Richfield Housing and
'--
- Redevelopment Authority do not, on or before
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1981,
th
ff
ay/
,
approve
e o
er contained in
- K~'! this agreement.
__ 2. The seller shall fail to make title to the
- - property marketable on or before the date of
- - - - closing. The failure of the seller to complete
__ -
- - registration of the property hereby sold on or
before the date of closing shall constitute
- -
1 such a failure.
.~.. -
Nothing contained herein shall be deemed to limit or restrict the
;,r,~,_ ~ - opportunity of buyer to withdraw, modify, or cancel the offer
hereby made prior. to its acceptance by the seller, and to obtain
the return of any earnest money theretofore paid. ,
Subject to performance by the buyer, the seller agrees to
...,..:
execute and deliver a Warranty Deed. in recordable form conveying
marketable title to said premises above described subject only to
-- the following exceptions:
(a) Building and zoning laws, ordinances, state and
- federal regulations.
~~-~ (b) Restrictions relating to the use or improvement
_. _ of the premises not subject to forfeiture.
(c) Reservation of any minerals or mineral rights
to the State of Minnesota
.
(d) Utility easements.
``"' " ~ " "` (e) The right of month to month tenants or tenants
at-will. Seller represents that no leasehold
interests except month to month tenancies exist.
on the property.
The buyer shall pay all real estate taxes payable in 1981
together with all installments of special assessments payable
therewith and thereafter. e~seller agrees that`it will withdraw
....,__ its appeal of the levy 'of certain special' assessments as` they
relate fo the property being sold hereby levied by the City of"
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R~:chfield iri•connecton with public improvement project CP-705.
The seller warrants that all real estate taxes payable in 1980 and
prior years, together with installments on special assessments due
in 1980 or prior years, have been paid in full.
The seller agrees to deliver possession to the property sold
hereby not later than the date of closing provided that the buyer
has complied with all the conditions of this agreement.
In the event this property is destroyed or substantially.
damaged by fire or any other cause before the closing date, this
agreement shall become null and void at the buyer's option and
if declared null and void, all monies paid hereunder shall be
refunded to it.
The buyer and seller mutually agree that pro-rata adjustments
of rents, insurance, city water. and current operating expenses, if
any., will be made as of the date of closing.
The seller shall, within a reasonable time, after approval
of this Agreement, furnish proper documents of title certified to
date, also to include proper searches covering bankruptcies and
state and federal judgments and liens. The buyer shall be allowed
20 days after receipt thereof for examination of said title and
the making of any objections thereto, said objections to be made
in writing or deemed to be waived. If any objections are so made,
the seller shall be allowed until the date of closing to make such
title marketable.
If said title is not marketable and is not made so by the
• last date of closing, this agreement shall be void and no principal
shall be liable for damages hereunder to the other principals and
all money theretofore paid by the buyer shall be refunded, but if
_.. the title to said property be found marketable, or be so made
•r~ ~"~^~ ~ ~"•~ - ~ within said time, and said buyer shall default in any of the
agreements and continue. to default after written notice of such
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•
default for a period of 20 days, then and in that case, the seller
may terminate this contract, and on such termination, all the
payments made upon this contract shall be retained by said seller
as liquidated damages, time being of the essence hereof; but this
provision shall not deprive either party of the right of enforc-
ing the specific performance of this contract .provided such
contract shall not. be terminated as aforesaid, and provided action.
to enforce such specific performance shall be commenced within
six months after such right of action, shall arise.
I, the undersigned owner
of .the above land, do hereby
agree to the above .agreement
and the sale thereby made.
The undersigned, acting on behalf-
of the Buyer, agrees for the
Buyer, to purchase the said prop-
erty for the price and upon the
terms abovementioned and subject
to all conditions herein expressed.
Harriet L. Adams
Karl Nollenberg r
Executive Director
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... _._ ... ... ... . .........._.,. 4.
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HRA RESOLUTION N0.
. RESOLUTION AUTHORIZING THE
PURCHASE OF REAL PROPERTY
AT 6329-35-40-99 ALDRICH AVENUE.
WHEREAS, the Richfield Housing and. Redevelopment Authority
(HRA) desires to purchase certain real property pursuant to and
in furtherance of the L/H/N Redevelopment Project heretofore
adopted by the City of Richfield (the "City") and the HRA, said
real property being as described on the attached Exhibit A.
_ WHEREAS, the HRA has caused appraisals of the subject.
property to be made-and has carefully considered such appraisals,
and
WHEREAS, the HRA is authorized by Minnesota Statutes,
Section 462.445 to purchase real property, and
WHEREAS, the HRA has instructed the Executive Director and
Attorney to commence negotiations for the real property described
in said Exhibit A, and
WHEREAS, the negotiations for the above .described real
`~~property has resulted in the execution of a purchase agreement
by the seller,
NOW, THEREFORE, BE IT RESOLVED BY THE RICHFIELD HOUSING AND
REDEVELOPMENT AUTHORITY:
1. The Executive Director is directed to purchase the
above described property for two hundred and five thousand no/100
dollars ($205,000.00), plus taxes.
Passed by the Housing and Redevelopment Authority of Richfield
this 18th day of May, 1981.
T omas E. Harms, C airman
ATTEST:
Mi e Freeman, Secretary
:;;
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EXHIBIT A
Legal description for the property situated in the County of
Hennepin, State of Minnesota, and legally described as
follows, to-wit:
That part of Government Lot 3, Section 28,
Township 28, Range 24, described as follows:
Beginning at a point on the east line of said.
Government Lot 3 distant 1:131.3 feet south
from the northeast corner of said Government
Lot 3; thence on an assumed bearing of north
along said east line a distance of 70.36 feet;
thence west at a right angle a distance of
176.5 feet to the actual point of beginning of
the tract to be described;. thence north at a
right angle a distance of 16.0 feet; thence
west at aright angle a distance of approximately
183.5 feet to the southerly extension of the
east line of Block 2, '"RAY'S LYNNHURST 2DtD
ADDITION"; thence south along ~such'~southerly
extension to the intersection with a line
parallel with and 2'25.00 feet south of the.
south line of Lot 4 in said Block 2; thence
west-along said parallel line 128.00 feet to
the southerly extension of the east line of
-the north and south alley in said Block 2;
thence north along said last described extension
to the south line of .the east and west alley
in said Block 2; thence west along the south
line. of said alley and its extension a distance
of 202.0.0 feet; thence southwesterly to Judicial
Landmark No. 7 set pursuant to Torrens Case
No. A-2547 on the mean center line of the bed.
of Grass Lake; thence-southeasterly along said
mean center line, determined in Torrens Case.
No. A-2547, to a line bearing 82 degrees west.
(assuming the east line of said Government Lot
3 as bearing north) from a point on the east
line of said Government Lot 3 distant 1176.30
..feet south from the northeast corner of said
Government Lot 3; thence north 82 degrees East
to the intersection with a line drawn para~lel
with and 176.50 feet west of the East line~of
said Government Lot 3;'thence North along aid
parallel line to the actual point of begin ing.
•
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HOUSING AND REDEVELOPMENT AUTHORITY
Office of Executive Director
HRA Letter No. 13
Agenda May 18, 1981
Housing and Redevelopment
Authority Commissioners
City of Richfield
Dear Commissioners:
Subject: Resolution Designating Additional Depository
Attached to this HRA letter is a resolution designating
First Federal Savings and Loam of Richfield as a depository for
the Richfield Housing and Redevelopment,:~iuthority for the year
1981. HRA funds are protected by the Federal Savings and Loan
Insurance Coproration insurance in the amount of $100,000.
It is recommended that the HRA adopt the attached resol-
•
ution.
Respectfully submitted,
i
c~
Karl Nollenberger
Executive Director
KN/eja
cc: City Council
Administrative Services Director
Finance Coordinator
HRA RESOLUTION NO.
• RESOLUTION DESIGNATING FIRST FEDERAL SAVINGS
AND LOAN ASSOCIATION AS DEPOSITORY OF FUNDS
OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF
RICHFIELD FOR THE YEAR 1981
WHEREAS, pursuant to Minnesota Statutes, Sections 475.66 and
118.17, municipal funds may be deposited in any Savings and Loan
Association which has its deposits insured by the Federal Savings
and Loan Insurance Corporation, and
WHEREAS, the amount of said deposits may not exceed the
Federal Savings and Loan Insurance Corporation insurance covering
such deposits which insurance amount is presently $100,00, and
WHEREAS, the deposit of Housing and Redevelopment Authority
funds in Savings and Loan Associations would provide greater
flexibility in their investme~it program and maximize interest
income thereon.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority of Richfield, Minnesota as follows:
The following savings and loan association be designated as
depository for municipal funds:
• First Federal Savings and Loan Association
6445 Nicollet Avenue
Richfield, MN 55423
Passed by the Housing and Redevelopment Authority of the City
of Richfield, Minnesota, this 18th day of May, 1981.
`Thomas E. Harms Chairman
ATTEST:
Michael Freeman, Secretary
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