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05-17-10 agenda packetCITY OF RICHFIELD, MINNESOTA MONDAY, MAY 17, 2010 SPECIAL CONCURRENT HOUSING AND REDEVELOPMENT AUTHORITY/ PLANNING COMMISSION WORKSESSION RICHFIELD CITY HALL COUNCIL CHAMBERS 6700 PORTLAND AVENUE 6:00 P.M. Call to order Roll call 1. Discussion regarding HRA and Planning Commission roles Notes: Adjournment 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 April 19, 2010 2. HRA approval of agenda 3. Discussion of application fees for Richfield HRA New Home Program Staff Report No. 18 Notes: RESOLUTION 4. Consideration of a resolution authorizing the purchase of real property located at 1403-1405 East 66th Street utilizing proceeds from the Bonds of 1996, pending a finding of consistency from the Planning Commission Staff Report No. 19 Notes: 5. Executive Director report 6. Claims and payroll Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. J HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota Regular Meeting April 19, 2010 CALL TO ORDER The meeting was called to order by Chair Sandahl at 7:00 p.m. ROLL CALL HRA Members Present: Sue Sandahl, Chair; David Gepner, Doris Rubenstein; and Steven Quam. HRA Members Absent: Joan Helmberger. Staff Present: Steven L. Devich, Executive Director; John Stark, Community Development Director; Karen Barton, Assistant Community Development Director; and Nancy Gibbs, City Clerk. Item #1 HRA APPROVAL OF MINUTES M/Rubenstein, S/Quam to approve the minutes of (1) Regular HRA Meeting of February 16, 2010 and (2) Special HRA Meeting of March 8, 2010. Motion carried 4-0. Item #2 HRA APPROVAL OF AGENDA M/Gepner, S/Quam to approve the agenda. Motion carried 4-0. HRA Meeting -2- April 19, 2010 Item #3 CONSIDERATION OF RESOLUTION ESTABLISHING APPLICATION AND PROCESSING FEES ASSOCIATED WITH VARIOUS RICHFIELD HOUSING PROGRAMS S.R. NO. 16 Assistant Community Development Director Barton presented Staff Report No. 16. Commissioner Quam asked how the fees were determined. Assistant Community Development Director Barton responded that fees were determined based on staff hours and attorney time spent on applications. Commissioner Quam asked about the difference between direct subsidy fees and vacant lot fees. Commissioner Quam stated a vacant lot should be more appealing to a buyer. Assistant Community Development Director Barton responded that it wouldn't be logical to increase a vacant lot fee. $525. Commissioner Quam amended the motion to change the fee for the vacant lot program to M/Rubenstein, S/Sandahl that the following resolution be adopted and amended to state that the vacant lot program fee be changed to $525.00 and that it be made part of these minutes: HRA RESOLUTION NO. 1071 RESOLUTION ESTABLISHING APPLICATION AND PROCESSING FEES FOR RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY PROGRAMS Motion carried 4-0. This resolution appears as HRA Resolution No. 1071. Item #4 CONSIDERATION OF RESOLUTION ADOPTING MODIFICATION TO REDEVELOPMENT PLAN FOR RICHFIELD REDEVELOPMENT PROJECT AREA AND ESTABLISHMENT OF 2010-1 HOUSING TAX INCREMENT FINANCING DISTRICT S.R. NO. 17 Community Development Director Stark presented Staff Report No. 17. Rebecca Kurtz, Ehlers and Associates, explained pay-as-you-go notes. Terry McNellis and Mike Swenson, Michael Development, reported that nothing has changed with the project. They are working on financing the project and locating grant money for transit location. Chair Sandahl stated she supports the project as a good addition to Lyndale Avenue. Commissioner Quam also stated he is supportive of the project and explained how tax increment financing (TIF) projects work. Commissioner Gepner and Commissioner Rubenstein also stated they concurred with the rest of the members and support this project. HRA Meeting -3- April 19, 2010 M/Sandahl, S/Gepner that the following resolution be adopted and that it be made part of these minutes: HRA RESOLUTION NO. 1072 RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND THE ESTABLISHMENT OF THE 2010-1 HOUSING TAX INCREMENT FINANCING DISTRICT (WOODLAKE HOUSING) Motion carried 4-0. This resolution appears as HRA Resolution No. 1072. Item #5 EXECUTIVE DIRECTOR REPORT Executive Director Devich asked residents to please send in their 2010 Census Reports. It is very important that everyone be counted. Ten years ago Richfield missed out on some Energy Plan money due to being a few hundred people short of the requirement. Item #6 CLAIMS AND PAYROLL M/Quam, S/Rubenstein that the following claims and payrolls be approved: U.S. Bank 04/19/2010 Section 8 Checks: 118767 - 118901 HRA Checks: 30860 - 30887 TOTAL Motion carried 4-0. ADJOURNMENT The meeting was adjourned by unanimous consent at 8:02 p.m Date Approved: Nancy Gibbs City Clerk $ 164, 079.60 $ 51,768.65 $215, 848.25 Suzanne M. Sandahl Chair Steven L. Devich Executive Director AGENDA ITEM # 3 REPORT # L$ r STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING MAY 17, 2010 REPORT PREPARED BY: KAREN BARYON, COMMUNITY DEVELOPMENT ASSISTANT DIRECTOR NAMF,', TI7%ls REPORT PRESENTER: KAREN BARYON, COMMUNITY DEVELOPMENT ASSISTANT DIRECTOR NAM&, Ti1%[s DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE .R ITEM FOR HRA CONSIDERATION: Consideration of application fees for the Richfield Housing and Redevelopment Authority's New Home Program. I. RECOMMENDED ACTION: By Motion: No formal action requested; for discussion purposes only. II. BACKGROUND The Richfield Housing and Redevelopment Authority (HRA) operates a number of housing programs designed to improve the City's housing stock and facilitate housing opportunities for awide-variety of households. The administration of these programs involves varying degrees of staff time, materials, and consultant services. In an effort to ensure the long-term viability of the HRA's housing programs, the need to establish fees to off-set a portion of the administrative costs associated with these programs has become apparent. At the April 19, 2010 meeting the HRA established application fees for a majority of the programs. However, no application fees were established for the New Home Program at that time. The HRA instructed staff to research alternatives for 05172010 New Home Program Fees recouping a portion of the New Home Program administrative costs without adversely affecting the affordability of the program. The HRA's New Home Program is designed to foster the construction of new, affordable housing for qualified households. In the past, because of the nature of the program, no administrative fees have been charged to the non-profit developer or to the end-buyer. By absorbing the administrative costs associated with this program, the HRA facilitates the affordability of the housing for the end-buyer. Additionally, Metropolitan Council surveys cities/HRAs annually and assigns points for fees waived for affordability programs. This survey is then used in part to award grant funding to cities and HRAs through the Livable Communities Demonstration Account. (LCDA). The HRA's current practice is to acquire sub-standard properties, demolish any existing structures on the property, and then sell the cleared lot to anon-profit developer at a reduced price for the construction of a new affordable home for subsequent re-sale to a qualified household. This method of operation minimizes continuing administrative costs to the HRA. Options for fees include: 1) Charge an application fee directly to the non-profit developer; 2) Contract with anon-profit developer to construct a new, affordable house on the HRA's property. The HRA would then sell the new house to a qualified household, charging the application fee directly to the end-buyer. This fee could then be placed as a second mortgage (or part of a second mortgage) against the property. This method of operation would result in added administrative costs to the HRA; or 3) Do not charge a fee. Pros to establishing an application fee for the New Home Program: • The HRA would recoup a portion of the administrative costs associated with the program. Cons to establishing an application fee for the New Home Program: • Contracting with anon-profit developer to construct the new, affordable home would not work with certain non-profit housing developers, such as Habitat For Humanity and the West Hennepin Affordable Housing Land Trust (WHAHLT); • Increases costs to non-profit developer; • Would place additional financial burden on low-income household; • The City/HRA would lose points on the annual Metropolitan Council affordable housing survey, which may in turn impact the City's/HRA's ability to receive funding through the LCDA program; • The HRA would incur additional administrative costs if the application fee is placed as a second mortgage against the property; and • The application fee may discourage non-profit developers from building affordable housing in Richfield. III. BASIS OF RECOMMENDATION A. POLICY • The Richfield Comprehensive Plan calls for the City to "Promote the development, management, and maintenance of affordable housing in the City." • It is appropriate to recover administrative costs as appropriate. B. CRITICAL TIMING ISSUES • N/A C. FINANCIAL • The HRA is currently absorbing all administrative costs for the New Home Program. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION~S~ • Do not impose an application fee. • Direct staff to prepare a resolution to impose an application fee. V. ATTACHMENTS • N/A VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A AGENDA ITEM # LE REPORT # ].9 J STAFF REPORT. HOUSING AND REDEVELOPMENT AUTHORITY MEETING MAY 17, 2010 REPORT PREPARED BY: KAREN BARYON, COMMUNITY DEVELOPMENT ASSISTANT DIRECTOR NAME, TITLE REPORT PRESENTER: KAREN BARYON, COMMUNITY DEVELOPMENT ASSISTANT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of a resolution authorizing the purchase of real property located at 1403-1405 East 66th Street utilizing proceeds from the Bonds of 1996, pending a finding of consistency . from the Planning Commission. RECOMMENDED ACTION: By Motion:. Approve the attached resolution authorizing the purchase of real property located at 1403-1405 East 66th Street utilizing proceeds from the Bonds of 1996, pending a finding of consistency from the Planning Commission. II. BACKGROUND East 66th Street, between 11th Avenue and Cedar Avenue is characterized by a -mix of commercial and residential buildings. The area was rezoned a number of years ago to a uniform General Commercial (C-2). The existing residential structures were grandfathered with the intention that the area would eventually become entirely commercial in nature. Several residential structures have become available for purchase along this corridor, including 1403-1405 East 66th Street. The property was formerly a 05172010 1403-1405 E 66th St Acquisition residential duplex that was converted into a commercial property. The property is a foreclosure, is currently vacant, and has substantial freeze damage. Recently the HRA purchased the property immediately to the east, 1407 East 66tH Street. In an effort to facilitate the redevelopment and revitalization of this corridor, staff is recommending the Housing and Redevelopment Authority (HRA) authorize the purchase of this property. Funding for this acquisition is available from proceeds remaining from the sale of the Bonds of 1996 associated with the Interstate-Lyndale-Nicollet (ILN) and Lyndale-Hub-Nicollet (LHN) Redevelopment Districts. The acquisition of this property is an eligible expense associated with use of these funds. The purchase price is $80,000, plus closing costs, not to exceed a total cost of $90,000. III. BASIS OF RECOMMENDATION A. POLICY • A stated goal. of the City's Comprehensive Plan is "Beyond the City Center, develop identifiable nodes, corridors and gateways throughout the community." • Policy statements in the Comprehensive Plan include the following: o Encourage the development of viable and responsive neighborhood commercial services. o Promote development that broadens the tax base. o Create commercial districts that sustain specific types of development and stabilize the economic base. o In an effort to provide contemporary working environments, Richfield will need to promote targeted redevelopment efforts. o Expand business opportunities through new and/or redevelopment opportunities for offices, entertainment, and service businesses. B. CRITICAL TIMING ISSUES • The property is a foreclosed and vacant property and is currently listed for sale on the open market. • Per contingency agreement with the seller, the HRA has until May 17, 2010 to take formal action relating to the acquisition. C. FINANCIAL • Due to the current market, the HRA is able to purchase the property at a very reasonable price of $80,000, plus closing costs. • The 2010 County. Estimated Market Value is $274,000, with a land value of $81,000. • Funds are available for acquisition through proceeds remaining from the sale of the Bonds of 1996 D. LEGAL • The HRA attorney has reviewed the Purchase Agreement. • The HRA attorney has concluded that this would constitute proper use of the Bonds of 1996 funds. IV. ALTERNATIVE RECOMMENDATION(S~ • Do not authorize the acquisition V. ATTACHMENTS • Resolution • Purchase Agreement • Photo of property VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A ~ -1 HRA RESOLUTION NO. RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 1403-1405 EAST 66TH STREET 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 redevelopment and the City's Comprehensive Plan, said property being described as: 1403-1405 East 66th Street Lot 000 Block 002 RICH FIELDS E 52 FT of W 104 FT OF N 125 FT; and WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to acquire real property within its area of operation; and WHEREAS, Bonds of 1996 Proceeds Funds are available for acquisition purposes. NOW THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Richfield: The purchase price for the property identified is approved at $80,000, plus closing costs, not to exceed $90,000. 2. The Chairperson and Executive Director are authorized to execute a Purchase Agreement and to take other actions necessary to purchase the property for the amount set forth in this resolution. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota on this 17th day of May, 2010. Suzanne M. Sandahl, Chair ATTEST: Joan Helmberger, Secretary 4-2. ~)J COMMERCIAL PURCHASE AGREEMENT KELLER This form approved by the Minnesota Association of REALTORS and the Minnesota Commercial Association of REALTORS', which WILLIAMS® disclaims any liability arising out of use or misuse of this form. ©2009 Minnesota Association of REALTORS~9, Edina, MN PRE N1 1 E R 1. Date May 14, 2010 R E A L T Y 2. Page 1 of pages 3. Received of Housing and Redevelopment Authority in and for the City of Richfield 4. the sum of Eight Thousand 5, ($ 8,000.00 )DOLLARS g. Check as earnest money and in part payment for the purchase of property (Check, cash or note -state which.) 7. at 1403-1405 66th St E Richfield situated in the 8. County of Hennepin ,.State of Minnesota, and legally described as follows 9 Lot 000 Block 002 RICH FIELDS E 52 FT OF W 104 FT OF N 125 FT 10. 11, together with the following personal property: 12 13. Eighty Thousand 14. all of which property the undersigned has this day sold to Buyer for the sum of: 15. ($) 80,000.00 DOLLARS, which Buyer agrees to pay in the following manner: 16. Earnest money herein paid $ 8,000.00 and $ 72,000.00 ,cash, on 1 ~. June 30 , 20 10 ,the date of Closing and the balance of $ 0.00 18. by financing as shown on the attached Addendum. 19. 1. DEED/MARKETABLETITLE:Subject to performance by Buyer, Seller agrees to execute and deliver a Warranty 20. Deed conveying marketable title to the property subject only to the following exceptions: 21. (a) building and zoning laws, ordinances, State and Federal regulations; (b) restrictions relating to use or 22. improvement of the premises without effective forfeiture provision; (c) reservation of any minerals or mineral rights 23. to the State of Minnesota; (d) utility and drainage easements which do not interfere with present improvements; 24. (e) rights of tenants as follows: 25. N/A 26. 27. 2. REAL ESTATE TAXES: Real estate taxes due and payable in the year of closing shall be prorated between 28. Seller and Buyer on a calendar year basis to the actual date of closing unless otherwise provided in this 29. Purchase Agreement. Real estate taxes payable in the years prior to closing shall be paid by Seller. Real estate 30. taxes payable in the years subsequent to closing shall be paid by Buyer. 31. 3. SPECIAL ASSESSMENTS: 32. ©BUYER AND SELLER SHALL PRORATE. AS OF THE DATE OF CLOSING ^SELLER SHALL PAY ------------------------------------------------------------------------ --(Check one.)-----------°- 33. on the date of closing all installments of special assessments certified for payment with the real estate taxes 34. due and payable in the year of closing. 35. ^BUYER SHALL ASSUME ©SELLER SHALL PAY ON DATE OF CLOSING all other special assessments 36. levied as of the date of this Agreement. 37. ^BUYER SHALL ASSUME ©SELLER SHALL PROVIDE FOR PAYMENT OF special assessments ---------------------------------°----------------------------------------(Check one.)---------------------....----------------------...----._.....----°• 38. after the date of this Purchase Agreement and before the date of closing, Buyer may, at Buyer's option: (a) assume 39. payment of the pending special assessment without adjustment to the purchase price; or (b) require Seller to pay 40. the pending special assessment (or escrow for payment of same a sum equal to 1 1/2 times the projected MNC:PA-1 (8/09) WEBFormsT"' Aug/2009 ~' Keller Williams Premier Realty COMMERCIAL PURCHASE AGREEMENT 41. Page 2 42. pending assessment) and Buyer shall pay a commensurate increase in the. purchase price of the property, which 43. increase shall be the same as the estimated amount of the assessment; or (c) declare this Purchase Agreement 44. terminated by written notice to Seller or licensee representing or assisting Seller. If Buyer terminates this 45. Purchase Agreement, Buyer and Selle shall immediately sign a cancellation of purchase agreement directing 46. all earnest money paid hereunder to a refunded to Buyer. Seller shall pay on date of closing any deferred 47. real estate taxes or special assessments payment of which is required as a result of the closing of this sale. 48. 4. PROBATIONS: All items customarily ~rorated and adjusted in connection with the closing of the sale of the 49. property herein including but not limited to rents, operating expenses, interest on any debt assumed by Buyer, 50. shall be prorated as of the date of closing. It shall be assumed that Buyer will own the property for the entire 51. date of the closing. 52. 5. DAMAGESTO REAL PROPERTY: If there is any loss or damage to the property between the date hereof and 53. the date of closing, for any reason, the disk of loss shall be on Seller. If the property is destroyed or• substantially 54. damaged before the closing, this PurchlI ase Agreement shall terminate, at Buyer's option, if Buyer gives written 55. notice to Seller or licensee representing or assisting Seller of such termination within thirty (30) days of the 56. damage. Upon said termination, Buyer and Seller shall immediately sign a cancellation of purchase agreement 57. directing all earnest money paid hereunder to be refunded Buyer. 58. 6. EXAMINATION OFTITLE: Within a reasonable time after acceptance of this Purchase Agreement, Seller shall 59. provide evidence of title to Buyer or Buyer's designated title service provider, which shall include proper searches 60. covering bankruptcies, state and fede~al judgments and liens, and levied and pending special assessments, 61. as follows: 62. IFTHE PROPERTY IS ABSTRACT, Seller shall provide either (a) a commitment for an owner's policy of title 63. insurance on a current ALTA form issued by an insurer licensed to write title insurance in Minnesota and Seller 64. shall pay the costs of evidence of title for such title insurance policy, and Buyer shall pay the premium for any 65. owner's policy or lender's policy issued by the title insurance company, the title examination fee and the fee 66. for any endorsements or other coverages requested by Buyer; or (b) Abstract of Title certified to date. Seller 67. shall pay for all abstracting fees and surrender any abstract in Seller's possession or control to Buyer at 68. Closing. 69. IFTHE PROPERTY ISTORRENS, Seller shall. provide, at Buyer's option and request, either: (a) a Registered 70. Property Abstract certified to date; or (~) a commitment for an owner's policy of title insurance on a current ALTA 71. form issued by insurer licensed to wri a title insurance in Minnesota. Seller shall be responsible to pay, under 72. either option, only those costs necessary to prepare the Registered Property Abstract or commitment. Buyer 73. shall, at Buyer's option, pay for eithe~ an attorney's title opinion or the title insurance premium (for both an 74. owner's policy and any lender's policy) and the examination fee, together with the costs-for any endorsements 75. or other coverages requested by Buyer). 76. Buyer shall have ten (10) business days after receipt of the Abstract of Title, Registered Property Abstract 77. or title insurance commitment to provide Seller, or licensee representing or assisting Seller, with written objections 78. to title. Buyer shall be deemed to ha ie waived ariy title objections not made within such ten (10) day period, 79. except that this shall not operate as ~ waiver of Seller's covenant to deliver a Warranty Deed, if a Warranty 80. Deed is specified in this Purchase Agreement. Seller shall use Seller's best efforts to correct any title objections 81. noted by Buyer and to provide marketable title; by the date of Closing. In the event Seller has not cured the 82. title objections or otherwise provided marketable title by the date of Closing, Seller shall have an additional 83. thirty (30) days to correct the title objections or otherwise make title marketable. Buyer may waive title 84. objections or other defects by written notice to Seller or licensee representing or assisting Seller. In addition 85. to the thirty (30) day extension, Buye and Seller may by mutual agreement further extend the Closing date. 86. Lacking such extension, either party may declare this Purchase Agreement terminated and neither party shall 87. be liable for damages to the other. Buyer and Seller shall immediately sign a cancellation of purchase agreement 88. directing all earnest money paid here~iunder to be refunded to Buyer. 89. 7. POSSESSION: Seller shall deliver possession of the property on the date of Closing. 90. 8. REPRESENTATIONS AND WARRAINTIES: See attached Addendum. 91. 9. TIME IS OFTHE ESSENCE FOR MNC:PA-2 (8/09) PROVISIONS OF THIS CONTRACT. WEBFo~msTM' Aug/2009 ~+ ~OMMER Keller Williams Premier Realty CIAL PURCHASE AGREEMENT 92. Address 1403-1405 66th St E 93. Page 3 94. 10. SELLER CERTIFIES THAT SELLER ^ DOES ~ DOES NOT KNOW OF A SUBSURFACE SEWAGE ---------------(Check one.)------------------- 95. TREATMENT SYSTEM ON OR SERVINGTHE PROPERTY: (If answer is DOES, and the system does not 96. require a state permit, see Subsurface Sewage Treatment System Disclosure.) 97. 11. SELLER CERTIFIES THAT SELLER ^ DOES ~ DOES NOT KNOW OF ANY WELLS ON OR SERVING --------------(Check one.)------------- 98. THE PROPERTY. (If answer is DOES, see Well Disclosure Statement.) 99. 100. 101, 102. 103. 104. 105. 106. 107. 108. 109. 110. 111. 112 12. ADDENDA. Attached are (number) Addenda which are made a part of this Purchase Agreement. 13. MISCELLANEOUS PROVISIONS. (a) Survival. All of the warranties, representations and covenants of this Agreement shall survive and be enforceable after the closing. (b) Entire Agreement; Modification. This Purchase Agreement constitutes the complete agreement between the parties and supersedes any prior oral or written agreements between the parties regarding the property. There are no verbal agreements that change this Purchase Agreement and no waiver of any of its terms will be effective unless in writing executed by the parties. (c) Successors and Assigns. !f this Purchase Agreement is assigned, all provisions of this Purchase Agreement shall be binding on successors and assigns. 14. ACCEPTANCE DEADLINE. 11:59 p.m., June 4 Buyer. This offer to purchase, unless accepted sooner, shall be null and void at 20 10 ,and in such event all earnest money shall be refunded to NOTICE 113. .Corrine Heine, Attorney Kennedy & Graven, Chartered Represents Buyer's Agent (Agent) (Company Name) 114. Michael Olsen (Agent) 115. (Seller's Signature) 116. (Seller's Printed Name) 117. 118. Keller Williams Premier (Company Name) (Social Security Number or Federal Tax ID number - optional)(Marital Status) (Date) (Seller's Signature) 119. (Seller's Printed Name) 120. (Social Security Number or Federal Tax ID number -optional) 121 MNC:PA-3 (8/09) (Social Security Number or Federal Tax ID number -optional) THIS IS A LEGALLY BINDING CONTRACT. IF NOT UNDERSTOOD, SEEK COMPETENT ADVICE. ents Se11~'s STi~Vt~1~J L_ . ~ ~ I G~ (Buyer's Printed Name) y....r,A ~A ~\, ~ ~ ~ ,/~~~-~,~ (Social Security Number or F~e/~d~eral Ta\x ID number/~,- optQional) (Marital Status) (Buyer' i nature) (Date) (Buyer's Printed Name) L~~// ~ ~~~, WEBFormsT^" Aug/2009 3 4 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. MN-A ~ KELLER WILLIAMS® P R E M I E R REALTY addendum to Purchase Agreement between pari at 1403-14p ert ro d sale of the h ~' ADDENDUM TO PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORS®, which disclaims any liability arising out of use or misuse of this form. ©2006 Minnesota Association of REALTORS, Edina, MN 1. Date May 14 2010 2. Page ties, dated May 14 , 2p 10 , pertaining to the 5 66th St E y p p ase an purc Richfield MN 55423 . Subject to approval by the governing board of purchaser by May 18, 2010. i i i I b (Seller) i (Date) Date) . (Seller) THIS IS A LEGALLY BINDI IFYOU DESIRE LEGAL OR TAX PA (8/06) (Date) uy r) Date) ~G CONTRA ETWEEN BUYERS AND SELLERS. ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. WEBFormsT"" Nov/2008 ~' jp BUYER PURCHASING "AS IS"ADDENDUM KELLER This form approved by the Minnesota Association of REALTORS'', which disclaims any liability arising out of use or misuse of this form. WILLIAMS® ©2009 Minnesota Association of REALTORS', Edina, MN 1. Date May 14, 2010 P x~ M i E x xEALTY 2. Page 3. Addendum to Purchase Agreement between parties, dated May 14 , 20 10 ,pertaining 4. to the purchase and sale of the property at 1403-1405 66th St E 5. Richfield MN 55423 SCLOSURE REQUIRED: Under Minnesota law, Sellers of residential property, exc waiver or with limited 7. exception , bligated to disclose to prospective Buyers all material facts of w ~ eller is aware that could adversely 8. and significantly a n ordinary Buyer's use or enjoyment of the erty or any intended use of the property of 9. which Seller is aware. Suc isclosure is not a warranty or rantee of any kind by Seller li see representing 10. or assisting any party in the trans 'on. Seller agree otify Buyer immedi tely i riting of a y s ~ve changes 11. from any prior representations regards petty. 12. (Check appropriate box.) 13. ^ Buyer has re ed and had an opportunity to review the roperty Disclosure Statement; 14. or 15. Buyer has received and had an opportunity to review the. Seller's Disclosure Alternatives form. 16. CONDITION OF PROPERTY: The property being purchased by Buyer, including the dwelling, other improvements 17. and fixtures, is not new and is being purchased "AS IS". 18. Buyer understands that the property, as defined above, will be purchased in the condition it is in at the time of Purchase 19. Agreement. Buyer shall have the right to awalk-through review of the property prior to closing. To the extent there 20. is a material change in the condition of the property arising between the date of the Purchase Agreement and the 21. closing date, Seller shall be responsible for restoring the property to substantially the same condition it was in on the 22. date of the Purchase Agreement, except that Seller shall have NO OBLIGATION OR RESPONSIBILITY to repair or 23. replace central air-conditioning, heating, plumbing (including subsurface sewage treatment systems, unless otherwise 24. required by law), wiring systems or wells on the property if they fail between the date of Purchase Agreement and the 25. date of closing. This provision voids lines 220-222 of the Purchase Agreement. 26. RISK OF LOSS: The Risk of Loss provision in the Purchase Agreement is modified as follows. If there is any loss 27. or damage to the property between the date of Purchase Agreement and the date of closing for any reason, including fire, 28. vandalism, flood, earthquake or act of God, the risk of loss shall be on Seller except that Seller shall have NO 29. OBLIGATION OR RESPONSIBILITY to repair or replace central air-:conditioning, heating, plumbing (including subsurface 30. sewage treatment systems, unless otherwise required bylaw), wiring systems or wells on the property if they fail between 31. the date of Purchase Agreement and the date of closing. If the property is destroyed or substantially damaged before 32. the closing date, this Purchase Agreement is canceled, at Buyer's option, by written notice to Seller or licensee 33. representing or assisting Seller. If Buyer cancels this Purchase Agreement, Buyer and Seller shall immediately sign 34. a Cancellation of Purchase Agreement confirming said cancellation and directing all earnest money paid hereunder 35. to be refunded to Buyer. 36. RIGHT OF INSPECTION: Buyer shall have the right to inspect the property or to have it inspected by a person of 37. Buyer's choice, at Buyer's expense. 38. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S). 39. IFYOU DESIRE LEGAL OR TAX ADVICE, CONSULT. AN APPROPRIATE PROFESSIONAL. MN:BPAIA-1 (8/09) WEBFormsT"" Aug/2009 Kelle 41 42. 43. 44. 45. 46. 47 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. MN:B r Williams Premier Realty d at 1403-1405 66th St E t P t l ~'~ BUYER PURCHASING "AS IS" ADDENDUM 40. Page Richfield MN 55423 . oca e roper y SETTLEMENT IS FINAL: It is understood that CONDITION OFTHE PROPERTY CONTAINE TO, CENTRAL AIR-CONDITIONING, HEATIN CITY WATER ARE VOID. This provision shall specified in the Purchase Agreement remain t OTHER: Buyer accepts the property "AS IS"ANY WARRANTIES OF PHYSICAL D IN THIS PURCHASE AGREEMENT INCLUDING, BUT NOT LIMITED G, PLUMBING, WIRING, AND CONNECTION TO CITY SEWER AND survive delivery of the deed or contract for deed. All other warranties e same.. I i - ~~ ~j 1+} ~ (Seller) I (Date (Bu' ate) (Seller) THIS IS A LEGALLY BINDINt IFYOU DESIRE LEGAL OR TAX PAIA-2 (8/09) (Date) yer ( ate) a CONTRACT WEEN BUYER(S) AND SELLER(S). ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. WEBFOrms'T" Aug/2009 1~ ADDENDUM TO PURCHASE AGREEMENT KELLER .DISCLOSURE OF INFORMATION ON WILLIAMS® LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS P REM I F, R This form approved by the Minnesota Association of REALTORS, R E A L T Y which disclaims any liability arising out of use or misuse of this form. © 2009 Minnesota Association of REALTORS"', Edina, MN 1. Date May 14, 2010 2. Page 3. Addendum to Purchase Agreement between parties, dated May 14 20 10 4. pertaining to the purchase and sale of the property at 1403-1405 66th St E 5. Richfield MN 55423 6. Section I: Lead Warning Statement 7. Every buyer of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified 8. that such property may present exposure to lead from lead-based paint that may place young children at risk of 9. developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including 10. learning disabilities, reduced intelligence quotient, behavioral problems and impaired memory. Lead poisoning also 11. poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide 12. the buyer with. any information on lead-based paint hazards. from risk assessments or inspections in the seller's 13. possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible 14. lead-based paint hazards is recommended prior to purchase. 15. Seller's Disclosure (initial) 16. (a) Presence of lead-based paint and/or lead-based paint hazards, 17. (Check one below.) 18. ^ Known lead-based paint and/or lead-based paint hazards are present in the housing 19. (explain): 20. 21 • ,,~ Seller has no knowledge of lead-based paint andlor lead-based paint hazards in the housing. 22. (b) Records and reports available to the seller. 23. (Check one below.) 24. ^ Seller has provided Buyer with all available records and reports pertaining to lead-based paint 25. and/or lead-based paint hazards in the housing (list documents below): 26. 27. Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards 28. in the housing. 29. Buyer's. Acknowledgment (initial). 30. _f.,~ ~ (c) Buyer has received copies of all information listed under (b) above. 31. ~D ~~ (d) Buyer has received the pamphlet, Protect Your Family from Lead in Your Home. 32. SM-`~ (e) Buyer has (check one below): 33. ^ Received a 10-day opportunity (or mutually agreed-upon period) to conduct a risk assessment 34. or inspection for the presence of lead-based paint and/or lead-based paint hazards (if checked, 35. see Section 11 on page 2); or 36. Waived the opportunity to conduct a risk assessment or inspection for the presence of lead- 37. ~ based paint and/or lead-based aint hazards. p TLX:SALE-1 (8/09) WEBFormsTM' Aug/2009 Keller Williams Premier Realty 39. Property located at 1403-1405 66th St E ~~~ ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON .LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS 38. Page Richfield MN 55423 40. Real Estate Licensee's Acknowledgement 41. (f) Real estate licensee has infdrmed Seller of Seller's obligations under 42 U.S.C. 4852(d) and is aware 42, of licensee's responsibility to ensure compliance. 43. Certification of Accuracy 44. The following parties have reviewed the infc 45. provided by the signatory is true and accu above and certiti~ best of their knowledge, that the information .. 46. (Seller) 47. (Seller) 48. (Real Estate Licensee) -~'~. 5 ~ O (Date) (Buyer ( ate) (Date) (Real Estate Licensee) (Date) 49. Section II: Contingency (Initial only if first box under (e) is checked in Buyer's Acknowledgment above.) 50. This contract is contingent upon a risk ass~~essment or an inspection of the property for the presence of lead- 51. based paint and/or lead-based paint hazards to be conducted at Buyer's expense. The assessment or inspection 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. shall be completed within ^ ten (10) ^ ' calendar days after Final Acceptance of the Purchase Agreement. -°-----------°-- (Check one.) --- I -----°-°------ This contingency shall be deemed removed., and the Purchase Agreement shall be in full force and effect, unless Buyer or real estate licensee representing or assisting Buyer delivers to Seller or real estate licensee representing or assisting Seller, within three (3) calendar days after the assessment or inspection is timely completed, a written list of the specific deficiencies and the corrections required, to~ether with a copy of any risk assessment or inspection report. If Seller and Buyer have not agreed in writing within thr ~ e (3) calendar days after delivery of the written list of required corrections that: (A) some or all of the required corrections will be made; or (B) Buyer waives the deficiencies; or (C) an adjustment to the purchase price will be made; this Purchase Agreement is canceled. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and directing all earnest money paid hereunder to be refunded to Buyer. It is understood that Buyer may unilaterally waive deficiencies or defects, or remove this contingency, providing that Buyer or real estate licensee I representing or assisting Buyer notifies Seller or real estate licensee representing or assisting Seller of the waiver or removal, in writing, within-the time specified. TLX:SALE-2 (8/09) WEBFormsTM' Aug/2009 2. 3. 4. 5. 6. 7. 8. 9. 10. -~ ~-lQ KELLEA AGENCY RELATIONSHIPS IN WILLIAMS~ REAL ESTATE TRANSACTIONS 1>K>;n-,li;l~ 1. Pagel KEAL'1'Y MINNESOTA LAW REQUIRES that early in any relationship, real .estate brokers or salespersons discuss with consumers whattype of agency representation or relationship they desire.i'>The available options are listed below.This is not a contract. This is an agency disclosure form only. If you desire representation you must enter into a written contract, according to state law (a listing contract or a buyer representation contract). Until such time as you choose to enter into a written contract for representation, you will be treated as a customer and will not receive any representation from the broker or salesperson. The broker or salesperson will be acting as a Facilitator (see paragraph V on page two (2)), unless the broker or salesperson is representing another party, as described below. ACKNOWLEDGMENT: UWe acknowledge that Uwe have been presented with the below-described options. I/We understand that until I/we have signed a representation contract, Uwe am/are not represented by the brol~r/salesperson. I/We understand that written consent is required for a dual agency relationship. URE ONLY, NOT A CONTRACT FOR REPRESENTATION. 14. I 15. 16. 17. 18. 19. 20. 21. 6 ~ v °~",~-~''~. s i to e ( ate) (Sig e) (D e) Seller's Broker: A broker who lists a property, or a sales rson who is licensed to the listing broker, represents the Seller and acts on behalf of the Seller. A Seller's broker owes. to the Seller the fiduciary duties described on page two (2).~2> The broker must also disclose to .the Buyer material facts as defined in MN Statute 82.22, Subd. 8, of which the broker is aware that could adversely and significantly affect the Buyer's use or enjoyment of the property. If a broker or salesperson working with a Buyer as a customer is representing the Seller, he or she must act in the Seller's best interest and must tell the Seller any information disclosed to him or her, except confidential information acquired in a facilitator relationship (see paragraph V on page two (2)). In that case, the Buyer will not be represented and will not receive advice and counsel from the broker or salesperson. 22. II. Subagent: A broker or salesperson who is working with a Buyer but represents the Seller. In this case, the Buyer 23. is the broker's customer and is not represented by that broker. If a broker or salesperson working with a Buyer as 24. a customer is representing the Seller, he or she must act in the. Seller's best interest and must tell the Seller any 25. information that is disclosed to him or her. In that case, the Buyer will not be represented and will not receive advice 26. and counsel from the broker or salesperson. 27. III. Buyer's Broker: A Buyer may enter into an agreement for the broker or salesperson to represent and act on 28. behalf of the Buyer. The broker may represent the Buyer only, and not the Seller, even if he or she is being paid 29. in whole or in part by the Seller. A Buyer's broker owes to the Buyer the fiduciary duties described on page two 30. (2).I~~ The broker must disclose to the Buyer material facts as defined in MN Statute 82.22, Subd. 8, of which 31. the broker is aware that could adversely and significantly affect the Buyer's use or enjoyment of the property. if 32. a broker or salesperson working with a Seller as a customer is representing the Buyer, he or she must act in the 33. Buyer's best interest and must tell the Buyer any information disclosed to him or her, except confidential information 34. acquired in a facilitator relationship (see paragraph V on page two (2)). In that case, the Seller will not be represented 35. and will not receive advice and counsel from the broker or salesperson. 36. IV. Dual Agency -Broker Representing both Seller and Buyer: Dual agency occurs when one broker or salesperson 37. represents both parties to a transaction, or when two salespersons licensed to the same broker each represent a 38. party to the transaction. Dual agency requires the informed consent of all parties, and means that the broker and 39. salesperson owe the same duties to the Seller and the Buyer. This role limits the level of representation the broker 40. and salesperson can provide, and prohibits them from acting exclusively for either party. In a dual agency, confidential 41. information about price, terms and motivation for pursuing a transaction will be kept confidential unless one party 42. instructs the broker or salesperson in writing to disclose specific information about him or her. Other information 43. will be shared. Dual agents may not advocate for one party to the detriment of the other.l3~ 44. Within the limitations described above, dual agents owe to both Seller and Buyer the fiduciary duties described 45. on page two (2).i2~ Dual agents must disclose to Buyers material facts as defined in MN Statute 82.22, Subd. 8, of 46. which the broker is aware that could adversely and significantly affect the Buyer's use or enjoyment of the 47. property. 48. Irv J I have had the opportunity to review the "Notice Regarding Predatory Offender Information". initial) (initial) 49• on page twa. (2) MN:AGCYDICS-1 (8/07) WEBFormsT"' Nov/2008 Keller Williams Premier Realty 51. V. Facilitator: A broker or salesperson who ~ 52. either in a fiduciary capacity as a Buyer's' 53. OR SALESPERSON DOES NOT OWE 54. EXCEPT CONFIDENTIALITY, UNLESS 55. SERVICES AGREEMENT. The facilitator 56. owes no other duty to the party except th 57. agreement, if any. In the event a facilitator 58. the facilitator broker or salesperson, then 59. paragraph I on page one (1 }). In the. ever 60. showing of the property by a Buyer being 61. broker or salesperson must act as a Buye `fir ~ ~ A ENCY RELATIONSHIPS IN G REAL ESTATE TRANSACTIONS 50. Page 2 performs services for a Buyer, a Seller or both but does not represent Broker, Seller's Broker or Dual Agent. THE FACILITATOR BROKER 4NY PARTY ANY OF THE FIDUCIARY DUTIES LISTED BELOW, THOSE DUTIES ARE INCLUDED. IN A WRITTEN FACILITATOR Broker or salesperson owes the duty of confidentiality to the party but use duties required by law or contained in a written facilitator services Broker or salesperson working with a Buyer shows a property listed by he facilitator broker or salesperson must act as a Seller's Broker (see ~t a facilitator broker or salesperson, working with a Seller, accepts a •epresented by the facilitator broker or salesperson, then the facilitator 's Broker (see paragraph III on page one (1 )). 62. ~'~ This disclosure is required by law in any 63. one to four families as their residence. 64. c2> The fiduciary duties mentioned above are 65. Loyalty -broker/salesperson will act only 66. Obedience -broker/salesperson will carry 67. Disclosure -broker/salesperson will disclo~ 68. which might reasonably affect the clients 69. Confidentiality -broker/salesperson will I 70. information (such as disclosure of materi~ 71. Reasonable Care -broker/salesperson w 72. Accounting -broker/salesperson will acct involving property occupied or intended to be occupied by listed below and have the following meanings: n client(s)' best interest. out all client(s)' lawful instructions. a to client(s) all material facts of which broker/salesperson has knowledge ~' use and enjoyment of the property. :eep client(s)' confidences unless required by law to disclose specific .I facts to Buyers). II use reasonable. care in performing duties as an agent. unt to clieht(s) for all client(s)' money and property received as agent. 73. ~s> If Seller(s) decide(s) not to agree to a dull agency relationship, Seller(s) may give up the opportunity to sell the 74. property to Buyers represented by the broker/salesperson. If Buyer(s) decide(s) not to agree to a dual agency 75. relationship, Buyer(s) may give up the opportunity to purchase properties listed by the broker. 76. NOTICE REGARDING PREDATORY OFFEP 77. registry and persons registered with the 78. obtained by contacting the local law enf~ 79. or the Minnesota Department of Correction 80. www.corr.state.mn.us. MN:AGCYDISC-2 (8/07) DER INFORMATION: Information regarding the predatory offender predatory offender registry under MN Statute 243.166 may be rcement offices in the community where the property is located, at (651) 361.-7200, or from the Department of Corrections Web site at WEBFOrms'"" Nov/2008 m 0 -,~, .~_~ "`~'! 4~ Z ,~,; w