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081310completeagenda
CITY OF RICHFIELD, MINNESOTA FRIDAY, AUGUST 13, 2010 SPECIAL CITY COUNCIL MEETING CITY HALL COUNCIL CHAMBERS 6700 PORTLAND AVENUE 8:00 A.M. AGENDA Call to order Roll call 1. Consideration of resolution determining results of City Primary Election on Tuesday, August 10, 2010 Staff Report No. 155 Notes: 2. Consideration of resolution authorizing City Manager to purchase real property at 7600 Portland Avenue Staff Report No. 156 Notes: 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. AGENDA ITEM # ~ REPORT # i ~ s STAFF REPORT CITY COUNCIL MEETING AUGUST 13, 2010 REPORT PREPARED BY: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: , NAME, TITLE ITEM FOR COUNCIL CONSIDERATION: Consideration of a resolution determining the results of the City Primary Election on Tuesday, August 10, 2010. I. RECOMMENDED ACTION: By Motion: Adopt the resolution determining the results of the City Primary Election on Tuesday, August 10, 2010. IL BACKGROUND The City Primary Election was conducted on Tuesday August 10, 2010 in conjuction with the State Primary Election. The City Primary Election included contests for the office of Council Member at Large. Minnesota State Statute 205.065 subd. 5 states on the third day after the primary, the governing body of the municipality shall canvass the returns, and two candidates for each office who receive the highest number of votes, shall be nominated for the office named. Their names shall be certified to the municipal clerk who shall place them on the municipal general election ballot without partisan designation and with out payment of an additional fee, therefore the canvassing of election results is scheduled for the August 13, 2010 Special City Council Meeting. III. BASIS OF RECOMMENDATION NANCY GIBBS, CITY CLERK 0813Canvass A. POLICY • The City Charter and State Statute provides that the City Council declare the results of the election. • The Special City Council .Meeting of August 13t" provides a timely opportunity to canvass the election results in accordance with State Statute Chapter 205. B. CRITICAL TIMING ISSUES • The City Council must take action by August 13, 2010. C. FINANCIAL • N/A. D. LEGAL • City Charter Section 4.07 provides that the City Council declare the results of the Election. State Statute Chapter 205 sets the date for canvassing the election and controls over the charter provision. E. ENVIRONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATION(S) • N/A V. ATTACHMENTS • Draft Resolution (final resolution will be distributed at City Council Meeting) VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. RESOLUTION NO. 10399 /- ~ RESOLUTION DETERMINING RESULTS OF THE PRIMARY ELECTION OF THE CITY OF RICHFIELD HELD ON TUESDAY, AUGUST 10, 2010 BE IT RESOLVED by the City Council of the City of Richfield that the Council, having received and considered the tally of votes by the election judges of the Primary Election held August 10, 2010, the results are determined to be as follows: Votes cast for Council Member at Large: Robert L. (Bob) Hall 937 Four Year Term Veronica Jacobsen 440 Sue Sandahl 2,048 Total number of voters in this election: 3,839 Attachment A is the complete tabulation of results. BE IT FURTHER RESOLVED that the following list of judges were those certifying returns of said election: June King Andrew May Jeanette Lofstrom Lois Kovach Linda Nemitz Catherine Sullivan Nancy Lindberg Joan Olinger David Dahl Philip Mortenson Elaine Wetsch Thomas Keegan Ed Thom Jeanette Holter JeNee Honnigford Lawrence Martin Liz Ekholm Hazel Burnside Jim Spitzack Eleanor Maanum Helen Nachicas Jan Nyholm Norma Martin Margaret Schow Fern Oreck Beatrice Van Liew David Martin Emily Day Jeff Rundgren Nancy Garwick Becky Spitzack Richard Morey Joseph Kovach Genevieve Wodnick John Ashmead Susan Lewis Pat Bailey Martha Obenchain Myrtle Thom Thomas Marso Robert Olson Pearl Weitbrecht Paul Matuschek Ruth Pafko James Alagna David Nyholm Gertrude. Ulrich Gertrude Herll Danette Kamrath Kenneth Vevea Carolyn Ring Bernadette Lais PASSED by the City Council of the City of Richfield, Minnesota this 13th day of August 2010. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk i-~ . City of Richfield rage.l ofs Aug. 10, 2010 -Unofficial Primary Election Resulfs for Richfield Precincts 8/IOizolorr:r8:oarn~ Precinct Total % 1 2 3 4 5 6 7 8 9 INDEPENDENCE PARTY ' FEDERAL OFFICES U.S. Representative -District 5 Tom Schrunk STATE OFFICES Governor and Lt. Governor Hahn & Harens Horner & Mulder Ratte' & LeMaster Uldrich & Williams Workcuff &Workcuff Secretary of State Jual Carlson Attorney General Bill Dahn 78 100.0% 2 8 9 13 8 15 4 10 9 7 6.4% 1 0 0 0 3 2 0 0 1 86 78.9% 4 14 12 13 8 15 6 9 5 3 2.8% 0 0 1. 0 0 0 0 0 2 11 10.1% 0 1 0 2 1 3 0 3 1 2 1.8% 0 0 0 0 1 1 0 0 0 71 100.0% 1 6 8 13 9 14 4 9 7 72 100.0% 2 6 8 13 9 14 4 10 6 '/ City of Richfield P~~ea~fs Aug. 10, 2010 -Unofficial Primary Election Results for Richfield Precincts 8/10/20IOII:18:08PM Precinct Total % 1 2 3 4 5 6 7 8 9 REPUBLICAN PARTY FEDERAL OFFICES U.S. Representative - District 5 Joel Demos STATE OFFICES Governor and Lt. Governor Carney & McGaughey -Davis & Soderberg Emmer & Meeks Savior & Anderson Secretary of State Dan "Doc" Severson Attorney General Sharon Anderson Chris Barden 398 100.0% 25 63 58 53 57 61 24 34 23 15 3.3% 4 4 1 2 1 1 1 0 1 24 5.3% 2 6 2 0 4 5 0 4 1 407 89.3% 19 72 60 57 59 61 20 34 25 10 2.2% 2 0 0 0 2 2 2 1 1 383 100.0% 24 65 55 53 50 57 23 35 21 176 43.8% 12 25 23 21 31 29 6 17 12 226 56.2% 13 42 33 34 27 31 13 21 12 City of Richfield Page3ofs Aug. 10, 2010 -Unoffici al Primary Electi on Re sults for Ric hfield Precincts 8/YD/2010II:1 8: 08 PM P i t - rec nc Total % 1 2 3 4 5 6 7 8 9 DEMOCRATIC-FARMER-LABOR PA RTY FEDERAL OFFICES U.S. Representative -District 5 Keith Ellison 2,184 71.8% 162 415 327 189 181 371 126 219 194 Gregg Iverson 337 11.1 % 32 43 58 22 25 44 36 40 37 Barb Davis White 520 17.1 % 45 79 61 73 36 76 49 53 48 STATE OFFICES Governor and Lt. Governor Dayton & Solon 1,404 43.6% 114 257 201 129 85 228 96 166 128 Entenza & Robinson 470 14.6% 36 65 65 54 45 67 42 49 47 Idusogie & Fontaine 21 0.7% 1 3 0 2 3 4 2 3 3 Kelliher & Gunyou 1,325 41.1% 108 251 204 115 115 224 79 113 116 Secretary of State "Dick" Franson 607 21.0% 56 95 73 61 35 98 51 66 72 Mark Ritchie 2,278 79.0% 176 409 360 207 188 362 152 232 192 Attorney General Leo F. Meyer 365. 12.4% 28 38 55 49 24 60 24 37 50 Lori Swanson 2,577 87.6% 205 482 377 232 198 418 183 267 215 /~QV~.s~ / ~ J -J City of Richfield Page a of s 8/11/201012:26:36 PM ® Aug. 10, 2010 -Unofficial Primary Election Results for Richfield Precincts Precinct Total % 1 2 3 4 5 6 7 8 9 NONPARTISAN CITY OFFICES Council Member~At:Large.=City of Richfield Robert L. (Bob) Hall 937 27.4% Veronica Jacobsen 440 12.8% Sue Sandahl 2,048 59.8% 62 147 128 115 87 159 81 81 77 30 82 57 40 32 54 29 69 47 176 377 291 182 170 356 112 204- 180 l-~ City of Richfield ` Aug. 10, 2010 -Unofficial Primary Election Results for Richfield Precincts VOTER TURNOUT Registered Voters Persons Registered at 7:00 AM New Registrations at the Polls TOTAL REGISTERED VOTERS Ballots Cast Number Voting at Polls Regular Absentee Overseas Absentee TOTAL PERSONS VOTING Turnout Percentage Page 5 of 5 8/I D/20IO ll: I8: 08 PM - Precinct Total % 1 2 3 4 5 6 7 8 9 19,956 98.9% 1,493 3,265 2;626 2,074 1,665 3,445 1,175 2,213 2,000 220 1.1% 13 46 30 28 16 38 9 20 20 21,176 105.0% 1,506 3,311 2,656 3,102 1,681 3,483 1,184 2,233 2,020 3,594 93.6% 282 603 511 364 317 593 240 351 323 241 6.3% 13 81 44 10 12 26 11 28 16 4 0.1% 0 1 1 0 0 1 0 1 0 3,839 100.0% 295 685 556 374 329 620 251 390 339 18.1% 19.6% 20.7% 20.9% 12.1% 19.6% 17.8% 21.2% 17.5% 16.8% AGENDA ITEM # REPORT # REPORT PREPARED BY: REVIEWED BY CITY MANAGER: CITY MANAGER NAME, TITLE .~- II ITEM FOR COUNCIL CONSIDERATION: II Consideration of resolution authorizing the purchase of real property at 7600 Portland Avenue. I. RECOMMENDED ACTION: By Motion: Adopt a resolution to authorize the City Manager to purchase real property at 7600 Portland Avenue contingent upon the completion of the process of review under State Statute 462.356 Subd. 2 by the Planning Commission. III. BACKGROUND The property at 7600 Portland Avenue is vacant and foreclosed. The bank-owned property is listed for sale at $104,900. The location of the house is on the corner of 76t Street and Portland Avenue adjacent to Roosevelt Park. An offer made for the property by City staff through the HRA, indicated that the bank in Texas that owns the home is not willing to come down on the listing price. While the house has several structural and wiring defects, the location of the lot is perfect for adding onto Roosevelt Park. To that end, it would be in the City's best interest to purchase this house now before some other investor purchases the house, making it much more expensive for the City to acquire in the future. III. BASIS OF RECOMMENDATION A. POLICY • The City has consistently looked for opportunities to enhance the City's park system through the acquisition of properties that become available at a reasonable cost. STAFF REPORT CITY COUNCIL MEETING AUGUST 13, 2010 0813Portland The property at 7600 Portland Avenue is guided as park land in the Comprehensive Plan B. CRITICAL TIMING ISSUES • Staff believes that the City should act very quickly on this matter if there is a City Council consensus that adding this property to Roosevelt Park would be a benefit to the community. • This item has been added as an action item to the Special City Council Meeting of August 13, 2010 in order to expedite the authority from the City Council to purchase this property. C. FINANCIAL • Due to the current housing market, the HRA is able to acquire the property at a very reasonable price of $104,900 plus closing costs. The current assessed value is $148,000 with a land value of $63,000. • The purchase of the property would be made from funds in the Recreation Enterprise Fund and repaid to that fund in 2011 through Special Revenue Funds. D. LEGAL • The City Manager needs official action by the City Council to act to purchase this property. • Legal Counsel drafted the Purchase Agreement. • Legal Counsel has advised staff that with any public purchase, the Planning Commission is required to determine whether the public purchase of the property and its intended use are consistent with the Comprehensive Plan. The purchase could take place regardless of the outcome of this determination, but it must be made nonetheless. If approved by the City Council, the Planning Commission would consider this item: at their August 23 meeting E. ENVIRONMENTAL CONSIDERATIONS • The ultimate demolition of the house and addition of this land to the City's park system (Roosevelt. Park) would an environmental plus for the community. ~ IV. ALTERNATIVE RECOMMENDATION(S) ~ • rorego ine purcnase or tnis prope private party. I V . ATTACHMENTS I • Resolution • Agreement • Photo of existing structure I V 1. PRINCIPAL PARTIES r;XPECTED AT MEETING I allow it to be purchased by a • None ai RESOLUTION NO. RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7600 PORTLAND AVENUE WHEREAS, the City of Richfield, Minnesota desires to purchase certain real property to add to the City's park system, specifically Roosevelt Park with said property being described as: 7600 Portland Avenue South East 1 /8 of the North 3 acres of the Southeast 1 /4 of the Southeast 1 /4, except road; and WHEREAS, the City is authorized by Minnesota Statutes to acquire real property within its area of operation; and WHEREAS, Recreation Enterprise funds are available for acquisition purposes. NOW THEREFORE, BE IT RESOLVED, by the City of Richfield that: The purchase price for the property identified is approved at $104,900, plus closing costs, not to exceed $10,000. 2. The City Manager is 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 City of Richfield, Minnesota on this 13th day of August, 2010. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk Northstar MLS Matrix 7600 Portland Avenue S ,Richfield, MN 55423 MLS Number: 3951870 Page 1 of 1 a -a- ~ .~- '"~[`fi http://matrix.northstarmis.com/Matrix/Public/PhotoPopup.aspx?tid=1 &mtid=l &L=1 &View... 8/9/2010 M.S.E),A. Real Property Form No. 1 (1994; Rev. 1996; Rev. 1997; Rev. 2002; Rev. 2004; Rev. 2005; 2(707; 2008) Mlnneaota Standard Residential Purchase Agreement PURCHASE AGREEMENT /PAGE 1 of 10 MINNESOTA STANDARD RESIDENTIAL PURCHASE AGREEMENT ©Copyright t996, 1997, 2002, 2005, 2007, 2006 Minnesota State Bar Assodalicn, Minneapolis, Minnesota. BBFORE YOU USE OR SIGN THIS CONTRACT, YOU SHOULD CONSULT MATH A LAWYER TO DETERMINE THAT THIS CONTRACT ADEQUATELY PROTECTS YOUR LEGAL RIGHTS. Minnesota State Bar Association disclaims any liability artsing out of use o! this form. 2 1. PARTIES. Tty;tKS IDC.greament Is made on August 13, ZDID b and between MMtK I ~ y 3 (marital status) a of Jseiler's address). SAXON MTGF SERVICES INP. 4708 MFRCHANTII F DRIVE. FORT WORTH. TX 7fi1~g ,SELLER, and s Housing and Redevelopment Authority in end for the City of Richfield, a public body corporate and polHic under the laws of Minnesota OR The City of Richfield ° es joint tenants (strike "joint tenants" if tenancyin•cammdn isintended) of (buyer's address) i F70D PORTI AND AVENIIF CDIITH RII'.HFIELD MN 55,427 ,BUYER. 8 ~ 2. OPFERIACCEPTANCE. Buyer offers to purchase and Seller egress to sell real property legally described as: t0 METES & BOUNDS ABSTRACT PROPERTY u tz BAST I/8 OF NORTH 3 ACRES DF SOUTHEAST 1/4 OF SOUTHEAST I/4 EX ROAD. UNPLATTED ADDITION OF 34-028-24 l3 _ HENNEPIN COUNTY. MINNESOTA 13 is Is (Property Tax IdenUficattan Number or Tax Parcel Number 34-028-24-44-0001 1 1T is rotated at~600 PORTLAND AVENUE SOUTH , Ctty o{ RICHFIELD tv County of HFNNFPIN ,Stets of Minnesota, 7Jp code 55423 m Z7 3. ACCEPTANCE DEADLINE. The acceptance date of this Purohase Agreement is the data it is delivered by the test party signing to thaofher party, tx This offer to purchase, unless steepled sooner, shall be void at 11:59 A M., an (date) . and in such event all earnest u money shall be refunded to Buyer. za 29 3D at 32 73 7a 3s 3G 37 3s 3J ag at ~2 ~3 as ~G a~ ax a9 sp sl sz 53 34 SS SG 37 ss se 7a 75 7G 77 78 79 8a 81 s2 83 as 4. FIXTURES AND PERSONAL PROPERTY. Forlhe purposes of this Purchase Agreement, "Fixtures' are items that are embedded in the land or attached to the buildings}and cannot be removed without damage td the real property. The method by which the fudure is 'a0adted` could be screws, nails, adhesives, arany otharmechanical cannedianwhich shows Seller's intent to make the item a relatively permanent part of the real estate. Examples of fixtures are doors and cabinets. "Personal properly" indudes dams That are not attached to the bugding(s) or embedded m the land and thetareremovabiewithoutdamagelotherealproparty. F~ramplesofpersanalprapartyerefree-standing(not'builtin')appliancasandlumiture.8uyer and Salter should consider carefully the fixtures and personal properly to ba included in the sale. For exempla, a mircor attadted to a waA by straws or Halls is a fixture, while a mirror hung from a nail or pidure hanger is personal property. A. FfXTURES INCLUDED IN THE SALE. Title to fatures passes to Buyer with the deed. All fixtures except those excluded at B., below, are ineiudgd in this sale such as: garden bulbs, plants, shrubs, trees, lendseaping, storm windows-and inserts, storm deore and insens, saeens, awnings, window shades, blinds, wrtain•traverse-drapery tads, mirtars, door mircars, cabinets, counter tops, doors, door hardware, mantels, woodwork, attached lighting faWres with bulbs, ateclrical wiring, eledricoutiets, eledrieswfkhes, electric outlet plates end switch plates, all plumbing and piping, plumbing fixtures, sump pumps, water heatere, heating systems, healing stoves, fireplace inserts, fireplace deore and screens, built-in humidifiers, built-in a(r conditioning units, built-in electronic air filters, eulometic garage door openen; whh controls, television antennas, satellite dishes,. watersolteners, buitt•indishwashers,garbage d(sposals,built-intrash compedore,built-inovansand ceokingsloven, hood-(ens, intercoms, installed carpeting, built-in work benches, security systems, fences, reta'ming walls, kennels, gates, survey monuments, wlvarts, shads, gazebos, trellises, underground ircigetion systems, weathervanes, Aghfning rods, fiagpolas, light poles and lights, outdoor statuary, pumps, mail Doxes, mail box pasts, and newspaper boxes. 8. FIXTURES EXCLUDED FROM THE SALE. The fogowing fixtures are excluded from this sale and will be removed by Seller prior to closing: Any damage to the real property that occurs in Setter's removal of these fxtures wiA be repaired by Seller prior to closing. The following excluded and removed fiMUres will ba replaced by Seger with a funclianal equivalent: At cfosrng arpnorto Casing, Seller shall provrda forpayment of, salisfadian af, arrelease of anyexisting liens, claims, orencumbrances on the fixtures, except for the following encumbrances which Buyer accepts or assumes )fist here); C. PERSONAL PROPERTY. Any personal property to be purchased by Buyer is listed an the attached Personal Property Agreement 5. PRICE AND TERMS. The price tar the real property is $104,900.00 ONE HLINORED FOLIR THOLISANO NINE HUNOREOAND OD/IDO Dollars (S ), which Buyer shall pay as fogows; Earnest money of S $ Y•100.DD by [CASH, CHECK, NOTE -stela which) _ CHECK payable to Jsereci one:) [~ Seller, to be deposited and held by Seller (and may be commingled with Sellers other funds) pending daring, ©O Setter's lawyer, io be deposkad and held In the lawyer's Wst aeeouni pending dosing, Seller's broker, to be deposded or held by broker according to the requirements of Minnesota Statutes, ~ Other (describe how the earnest money will be held) receipt of which is hereby acknowledged and 5 cash, on .the GATE OF CLOSING, and the balance of S by financing es shown an the attached Flnaneing Addendum. 6. DEED l MARKETABLE TITLE. LIMITED A. Upon performance by Buyer, SaAer shall execute and deliver a Warranty Dead, joined in by spouse, if any, conveying goad and marketable title of record, subjed to thafoAowing Title Fatceptions: (1) Building and zoning laws, ord'mances, stela and federal regulations; and (2) The lien of real property taxes and the lien of special assessments and interest due thereon, ff any, payable in the year of closing which by the terms of this Purchase Agreement are to ba paid or assumed by Buyer. B. Seller proposes to Buyer that Sellers good and marketable title wiq be delivered to Buyer at dosing subject to the following title issues: fChack fi),/fappOCabte:J (1) DEncumbrences,easements,wvenants,cgndilions,restridions,ededareticn(wBhautanassxiation},andresarvatignafminerainghis by the State of Minnesota, as disclosed in M.S.B.A. Real Properly Porn No. 19, ADDENDUM Tp PURCHASE AGREEMENT: TITLE ISSUES (2005), attached as a pen df this Purchase AgreamenL a3 Ian lot lag la) lua ms ls6 tllT tUH la'1 ua 111 uz Iii Iw IIS 116 ]17 ]IH ll9 Iza 171 1 zz 123 134 12s I26 l27 1zH Iz9 I7n l31 l33 137 174 I7s l76 U7 us u9 lea 14I 142 147 144 las 146 147 148 149 Ise Isl 1sz 133 tact 155 ISf, 137 138 ls9 IW) 161 162 147 IW 165 IG6 167 F66 l69 [70 of In l73 174 l75 l76 177 178 I79 tan IBI M.S.B.A. Real Property Form iVo, 7 (t9sa; Rev. 1996; Rev. 1937; Rav. zooz; Rav. zoos; Rev. 2005; zags; Zoos) Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT /PAGE 2 Of tO (Check (2), ifapplicable:) (2) (~ A Declaration of covenants, conditions, and tesiridions with an assodadan in a planned community, condominium, M other common interest ownership community, as disclosed In M.S.B.A. Real Property Fonn No. 12, ADDENDUM TO PURCHASE AGREEMENT COMMON INTEREST COMMUNITY attached as a part of this Purchase Agreement. (Check (3), if applicable:) (3) LJTherightsoftenantsorotherpa»iasinpossession,asdiselbsedinM.S.B.A:ReelPrope»y FarmNo.20,ADDENDUMTOPURCHASE AGREEMENT: TENANTS AND PARTIES IN POSSESSION (2005) attached as a part of ihls Purchase Agreement. Although Sollor hag disclosed these gtle issues and Buyer has indieatod a general wlllingnoss to tako titlo subject to these dtlo issuos, those lido Isauos era subJoct to the other provlsio»s of rho Purchase Agreement antl to a» oxamin atlorcoi title based upon rho Minnoaota Tlda Standards and upon Minnesota law. Buyer also reserves the right to evaluate these title Issues in the light of Buyers Intended use and enjgymenl of the property. Buyer shalt have until the end of the period for statingJitle ObJagiansunder Paragraph 74., of this Purchase Agreement to make the evaluation and determine if these title Issues will affect Buyer's intended use and enjoyment of the property. Except for matters disdased under 8.(2), above, and gavamed by the statutory remedies referenced inM.5.8.A. Real Propany Form No. 72, ADDENDUM TO PURCHASEAGREEMENT: COM MON INTEREST COMMUNITY, if Buyer, in Buyers sole discretion, dete»nines thatgtsss title issues will adversely affect Buyers intandad use and enjoyment of the property, Buyer meydedare this Purchase Agreement void try notice to Salter, neifhetpany shall ba liable fordamagas hereunder to the other. and aamast money shall ba refunded l0 Buyer. If the period for stating Title Objedione under Paragraph f 4., passes without Buyer's detlaring that these title issueswill adversely affect Buyer's mended use and enjoyment of the prapeny, Ihen, subject to Seller's covenant to deliver a goad and marketable Illfe of record, Buyer shall take fine subject W these title issues. (Seller should consider fWl disclosure of all title issues 1o Buyer in this Purchase Agreement ortn addenda to this Purchase Agreement Fulldisc~osure as to the substance oI title Issues atlows Buyer an eady opportunity fo ensure that this is the right property far 8uyerand fo measure thelmpact on the Buyers !nlertded use or potential enjoyment e(fhe property. to other wards, Buyers consent to lake Hfle subJeef fo the existence of title issues must be a fatly fhlormed 6ronsent. 1f Buyer is fully informed eady, /f i5 leas likely That Buyer wilt elect to void the Agreement.) 7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. A. PHorYears' Delinquent Rea[ Estate Taxes and. Delinquent SpaGaf Assessments. Delinquantreal estate taxes payable in years prior to the year of dosing and delinquent installments of special assessments certified for coiledfon with rea) estate taxes payable in years prior to the year at dosing, together with penalty, interest and costs, shall be paid by Seller not later than the actual data of closing. 6. Real Estate Texas Payable in the Year o[ Clasing. Real estate taxes payable in the year of Dosing shell (select from (f) ar (2J:J ® (7) Be prorated between Seller end Buyer jseled (aJ or (bJJ: j,l On a calendar year basis to the aqua) data of dosing; (b} As follows: Seller %; Buyer °,4; adjus a between Sallerand Buyer et closing, end paid to Iha county at closing if Then due and Buyer shall assume installments not paid at Dosing. 0 (2) Not be prorated and the entire year's taxes shall be (sefed (a) or(b)): 8 (a} Paid by Seller when due, but not later than closing, (b) Assumed by Buyer, to be paid when due and not later Ihen closing if due prior to closing, and Buyer shall reimburse Seller at closing for any installments paid by Seller prior to Goring. Seller shall pay penalty, interest and casts on any delinquent installment of taxes and special assessments payable in the year of closing. If closing is delayed to a later year, real estate faxes payaWa in the year of closing shall ba prorated between Seller and Buyer on a calendar year basis to the actual data of closing. C. Tax Statements. If tax statements for taxes payable in the year of dosing are not available on the Data of Closing, the amount to be usetl for closing pu gees shall be 1~0 °k of the prloryears taxes, and such amount shall be (select one)®FULL AND FINAL BETWEEN SELLER AND BUYERADJUSTED UPON RECEIPT OF TAX STATEMENTS FOR SUCH YEAR (in which case the pony ohligatad to pay fha adjustment shell pay it to the other pa»y within 30 days of issuance of the tax statements). D. Homestead ClasstgcaUon. Setlerrepresants That, as of the date of this Agreement, Iha property tax classigcation is lstdke oast homestead ---~-non}eeenestead:it fha property is nanhomestead, 6uyer may change the tax dassifiealion fortaxes payable in the year following dosing by taking possession of the real props»y as Buyers homestead and filing a new homestead dedarekon within the time required by taw. tf the property tax Gass~tion ip the year of dosing is not homestead, Seller shell pay to 8uyar at dosing (select one) theBndA iftefenea {on Buyers portion of the taxes) between the taxes in fha aduel dassifieation and the lazes that would have been payable under homestead classificatgn. If the props»y tax dessificadon for taxes payable in the year following dosing is not homestead and, Through no fault of Buyer, the closing lakes place aftarlha date by whiGr Buyer must take possession of Iha r~elprops»y as Buyers tromaslead to file forhomestead tax status far taxespayabla in such ear, Seller shall pay to 0uyer at Goring fseled gnat N/A fha difference (on Buyers portico of the taxes) between Iha fazes in fha squat Gassglcation and the taxes that would have been payable under homestead dassifiealion. (ll Buyer intends to Gaim fha property as Buyers homestead, Buyer shoukt 61e Buyers homestead deWaraGon as soon as possible aRer taking possession and occupancy of the propeRy.J E. Deferred Real EsWteTaxea.(sefectone:J Q BUYF~t © SELLER shall pay on date of closing or provide for paymeN of any deferred real estate texas (ineluding'Green Acres" taxes under Minnesota Statutes Section 273.111) payment of which is required as a result of the closing of Ihls sale or fha recording of the Daed or Conhad far Dead. Provision for payment shall be by payment into escrow of 1,5 times fha estimated amount of fha assessors reassessment for deferred fazes. F. Valuation Fatcfuslons from Assessed Value. Seller warrants and represents that the prapeny (sefed one:] Qdoas ©does not have an exelusionlrom astlmated market value force»ain home improvements pursuem to Minnesota Statutes Section 273.11, 3ubd. 7S (1997). Such exclusion expires an the sale of the prapeny and will cause the assessed value of the prapeny to increase for prapeny lax purposes. The increase in assessedvaluewilleausathepropsrtytaxastoinereaseandmightmakethaprapertyunetfardablaforBuyar, If Sellarrepressntsthettheproperty does not have an exclusion and an exclusion is discovered prior to Dosing, Buyer may, at Buyers option: (1] Assume payment of the increased property taxes without adjustment to the purdtase price of the real props»y; (2} Require that the price of the property be reduced by the estimated increase in property taxes over the three calendar years following the year of closing (such estimated increase shall be obtained from the county assessor or city assessor}; ar. (3) Rescind this Agreement, in which ease all eamast money shall be refunded to Buyer. If the exGUSion is not discovered until after Gosalg, Seller shall be liable to Buyerfor liquidated damages in the amount that is five Umes the estimated increase in real estate texas based on the reassessed value provided That any notice of a claim of breach of warranty must be in writing and must be given by Buyer to Seller within one year of fha Date of Closing or ba deemed waived. The provisions of This Paragraph F., shall survive the degvery of fha Deed or Contract for Dead. G. Certlflad Spocial Assessments. All Installments atspacial assessments certified for payment with the real estate taxes payable in lhe.year of closing shell be fseled one(: [] ProratedbetweenSellerandBuyeronacalerxlaryearbasistofheaquaidateofdosing,adjustedetdosing,andunlessatherwisepravided in this Purchase Agreement, shall be paid at Dosing Q Paid by Buyer at Dosing ® Paid by Seller at closing [~ Assumed by Buyer. H. Parading Spocial Assossmertts. (sefed orre:J ®BUYER SHALL ASSUME PAYMENT OF QSELLER SHALL PROVIDE FOR PAYMEN7 OF special assessments pending as of the dale of this Purchase Agreement tar improvemems that have been ordered by fha City Counc(I or other ~.~ 182 tai Ise 1A3 l8fi lA7 188 189 19u 191 t9z 193 174 191 19L 197 {96 try zun 2UI zn2 2s3 zn4 2os 2UG 2U7 IUA 2a9 210 2u 2R 213 214 213 214 217 zIA 219 220 22] 222 223 224 223 z2c zz7 zzs z29 nn 271 232 237 27a 233 234 Z77 238 239 zan 241 242 247 2aa 24s 24G xa7 2aA zav 250 231 232 233 254 233 ISG 257 258 239 IGn 2G1 242 2G7 2G4 2G3 2GG xG7 2G8 249 z7o 271 272 273 M.S.B.A. Rea) Property Form No. 1 (1994; Rev. 1985; Rev. 1997; Rav. 2002; Rev. 20D4; Rav. 2005; 2007; 2008) Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT !PAGE 3 of 10 gpvemmental assessing aulhoritles. (Seller's provision far payment shall be by payment into escrow of 1.5 times the estimated amount of the assessments.) As at the date of this Purchase Agreement, Seller represents that Sallar has net received a Netica of Hearing of a new public improvement project tram anygovernmental assessing authority', Iha seats of whleh proJed may be assessed aga{nst ttte real property. If a spacfel assessment bewmes pending attar the data of this Purchase Agreement and boforo the pate of Closing, Buyer may, at Buyafs option: (1) Assume payment of the pending spacial assessment without a[§uslmem to the purchase prise of the real property; or, (2) Require Seller to pay the gentling spatial assessment (ar escrow for payment of same es provided above) antl Buyer shall pay a commensurate irtaease in the purchase price of the real property, which Inuease shall be the same as iha asiimated amount of ate assessmem; or, (3} Rescind this Agreement, in which rasa all earnest money shell be refunded to Buyer. 1. Deferred Spacial Assessments. (select ohs:! OBUYER 1®SELLER shall pay on dale of dosing orprovida for payment bt any defanad special assessments payment of which is required as a result of the dosing of this eels or the recardingKling of the Dead or Centred for Deed. Provision for payment shall ba by payment into escrow of 1.5 times the estimated amount of the deferred spacial assessments. J. All Other Levlad Spedal Assessments. (select oae:J ®BUYER SHALL ASSUME PAYMENT OF / OSELLER SHALL PRY ON DATE OF CLOSING all other special essassmenfs levied es of the dale of This Purchase Agreement, except daferced spacial assessments (wvared at Paragreph T.f ,above}. K. Taxes and Speelal Assessments in rho Means Following Closing. Buyer shall pay realsstate taxes payable In the years fclbwing closing andspeeialassessmantspeyabletherewiSh,thepaymentofwhitdtisnototherwiseprovldtrdherein. Sellermekesnoreptesentationwncemingthe amount of future real estate loxes or of future special assessments. 6. DAMAGES TO REAL PROPERTY. Urgil comptebon of cosing and delivery of possession, all risk of loss is on Seller If the reel property is damaged prior to closing, Salter shall give notice to Buyer whhin 3 business days after suds damage has oeeurced. The notice shall indude Saber's proposal far repairing the damage. From the date that Buyer receives Sellars notice, Buyer shell have 3 business days to inspect the real properly, and an additional 2 business days to determine it the damages and Seilefs proposal forrepairs are acceptable to Buyer. If Buyer does not accept Sonars proposals for repairs within the 2 day period, this Agreement is cancelled andlhe eamesi money shall he refunded to Buyer. 9. SELLER'SBOUNDARYLINE,ACCESS, RESTRICTIONSANDLIENWARRANTIES. Selierwatrontsthatbuildings,ifany,araenbralywifhlnlha boundary lines of the real property. Seller warrants that there is a right of access to the real propeny from a public tight of way. Seller warcants that there has bean no labor or material furnished to the real property for which payment has not bean made, Saliar warrants that there are no present violetlons Of any restrictions relating to the use or improvement of the reel property. Seller warrants that the real property fs not subjaet to a lien Tor Medical Assistance ar ether public assistants. These warreMies shall survive Iha delvery of the Deetl or Contract far Deed. 10. CONDITION CF THE REAL PROPERTY. A. Statutory bisclosuro. Pursuant to Minnesota Statutes Sections 513.52 - b13,60, Seller must provide a written disclosure:{sea (1) belowJ, or Buyer must have ret~ived en inspection raped (sea (2) balowj, or auyerand Sellermaywaive lhawritfen disclosure requiramards (sea (3) belowJ. Minnesota Statutes Seedon 313.57, Subd. ?. LIAflILITY, A artier who foils to make a discosurc as required 6y gardens 513.52 to 313.60 and was aware of material fact pertaining tothereal property is liable toth~ prospective buyer. A person injured by o vialadon of this sectiadmay bring acivil actiooend recover damages and receiveaher equitable celiefnsdetenained by the court. Aa action under this subdivision must be commenced tvithln two years after the dale an which the prospective buyer dosed thopurchase or transfer of the real property. (Setae! only ono oftheselhree:f Q (1) Sollor's Disclosure. Seller has provided s writen disetesure to Btryer. A copy of Sellers disclosure is aaaehed Seller shall wrced in writing any itteeurrades in the dlselosure as soon as reasonably possible before closing. Minnesota Statures Swtiou 51353. GC•NERAL DISCLOSURE REQUIREMENTS. Subdivision L CONTENTS. (a) Aeforc signing an agreement to sdi ar transfer residmdal red property, the seller shall make a written disdasurc to the prospective buyer. Thc disclosure must include dl matcda! facts of which the sdler is aware that mold adversely and significattdy aff~kc (1) on ordimry buyer's use and enjoyment ar~he propeny; or, (2}any intended use of the propeny of which tits adlm is aware. (b) The disclosure must be made in good faith end based upon the bast of the sdlcr'a knowledge nt tits time of the disclosure. Minnesota Statutes Section 3!3.58. AMENDMENT TO DISCLOSUItL•. Subdivision L NOTICE. A sdler must notify the prospedivebuytt in wddng ss soon as reasonably possible, but in my event before closing, if the sdler trams that dtc sdlefs disclosure required by Seedan 313.13 was insccumte. Subdivision 2. FA[LURETONOTIFY;LIAI3ILITY. Asellttwhofdistoaotifytheprospecdvebuycrafnnynmendmentstotheinidddiselasurerequired under subdivision ! is liable to the prospective buyer u provided in Section S I7.ST. Q (2) Inspection Report. Buyer has reeelved an inspadlon report by a qualified Third-pony. If a copy of the inspedion repan is providatl to Seller, Seller shall disdase to Buyer materiel tads known to Seller that contradict any information in the inspection report. Minnesota Statutes Section SI3.56 Subd. 3. INSPECTIONS. (a) Execpt as pravidcd in pamgmph (b), o sdltt is not required to disdose information rdadng to the teat propeny ifavvdttrn repan that discloses the information has beenprtparcdbyaqualifieddtirdpnrcyandprwidedtotheprospectivebuyer. Forpurpasesofthisporagmph,"qualifitdthirdpany" magna a federal, start, or local governmental agency, or any parson whom the seller, or prospective buyer, reasonably believes has the expenisc necessary to mtet the industry standards of practice for the type of inspcaion or iovesdgadon that has bttn candueted by the third party in order to prepare dtc written reptnt. (b) A seller shall disclose to the prospwtivebuyer materid face known by the seller that contradict any informaGan included in a written report under paragraph (a) if a copy of the repan is provided to the sditt. ® (3} WaivorofDiselosure. Minnesota Smtutes Section 513.60. WAIVER The wdttm disclosure required under Sections 513.52 to 313.60 may be waived if tits aelltt and the prospective buytt agree in writing. Waiveraf the disdosure required under Sections 5 E3.52 to 513.60 does as waive, limit, ar obridge any obligation for seller disclosure tteated by any ghat Inw. Seller and Boyar waive rho written disclosure raqulrod under Socttons 513.52 to 513.80. SELLER: BUYER: Steven L Devieh, City Manager SELLER: BUYER: e le aette, ayor NOTICE REGARDING PREDATORY OFFENDERS: Infamtalicn about the predatory ottender registry and persons registered with the registry maybe obtained by contacting the local law enforcemem agency or by contacting ltte Minnesota Deparimenl of Corrections at 851-361-7200 or at httpJlwww.dacstatamn.us. ~,5 27a M.S.B.A. Real Property Form Ho. 1 (1994; Rev. 19913; Rev. 1997; Rav. 2002; Rev. 2004; Rev. 2005; 2007; 2008] ~t Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT f PAGE 4 of 10 ~ i z7s 8. WELL DISCLOSURE. (Check one of thefollowing:J z76 Q Seller cenilies that Seller does not know of any wells on,the real property and wilt so certify an the Oaetl or Contract for Deed delivered et zrr closing. z7a 0 Wells onthe real property are disclosed by Selleron the attached M.S.B.A Real Properly Form No. 21(2005), Well Disclosure StatemonL x79 2E9 C. SEWAGE TRFIITMENT SYSTEM DISCLOSURE. 2a I fCheck either (iJ or (2): J tai Q(1}. SellerrrertifiesU7etsewagegeneratedatftrepropanygeasto atadlitypermitledbythaMfnnasotaPalluUonControtAgancy(forexampte, ia3 a city or municipal sewer system). ia4 0(2). Seger certifies that sewage generated al the properly Boos not goto a facgdy permitted by the Minnesota Pollution Control Agency and gas Seller's Disclosure of Individual Sewage Treatmem System is eUached {attach /orm). gas (Check efther(3J ar(4): J is7 3). Seller does not know iF there is an abandoned individual sewage heatmenl system on the property. 288 ~jaJ. Seller knows thafthere (stoke one:J are f are no abandoned (ndiWduai sewage treatment systems do the property. If Seller disdosas the 2fl9 existence of en abandoned individual sewage treatment system on the property, than M(nnesota law requires that the IoraNon of the z9n system be discosed to Buyer with amap: (Attach SeUer's iDisclosure allndfWduaf Sewage Treatmanf System wlgrmap complated.J 19l 292 D. LEAD PAINT DISCLOSURE. JCheck one of the following: f 293 ~ Seller represents that the dwelling was canstructad on the real property in 1978 or later, 294 Seller represents that the dweling was consVuGad on the reel property before 1978. (If such housing is Ierated on the real property, z95 attached and made a part of this Purchase Agreement is M.S.B.A. Real Propeny Farm No. 11 (1996), LEAD PAINT ADDENDUM FOR x96 HOUSING CONSTRUCTED BEFORE 1978.) 297 z9s E. HAZARDOUS SUBSTANCES, PETROLEUM PRODUCTS, AND UNDERGROUND STORAGE TANKS. Seller knows of no hazardous z99 substances or padoteum products having bean placed, stored, ar released from ar on the real properly by anyperson in viotagon of any law, Sun nor of any underground stooge tanks having been located an iha reel progeny at any time, except as tolltnvs: 3gl 3n2 3n3 7n7 ]es If the presence of underground storage tanks is dlsdosed, than this paragraph appllea: Sellerhereby represents and warrants to Buyer that all 306 of the underground tanks known fo Seller on the sub)ect property have been disclosed to Buyer on Iha attached drawing ar map. Seller shelf 3n7 provide at closing Iha affidavits required by Minneaela Statutes SeeUOns 1158.16, Subd, 2, and 116.46 it applicable to Iha subject property and Sea record an atOdavd attesting to the focatien of any underground tanks which era used for the storage at petroleum products. 3e9 31u F. PROTECTEDSITES. Sellarhasnaknowledgethetlhepropertyhasanycondgionsthalareprotadedbyfaderelorstatelaw(suchasAmerican 3t I Indian burial grounds, other human burial grounds, ceremonial earthworks, historical structures or materials, or ardteologicel sites} . (Check 3tz the boxiltharbllowingprovisionappliastorhisPurchaseAgreement:J ~ADDENDUMTOPURCHASEAGREEMENT: CONTINGENCfE5 3t3 FOR SURVEY, APPRAISAL, DEVELOPMENT EVALUA170N, AND ARCHEOLOGICAL f HISTORICAL SURVEY, M.S.B.A. Roal Property 3t7 Form No. 17 (2005), is included as an addendum to this Purchase Agreement ]ts st6 G. DISFJISED TREES. Sellerhas not received any notice from any govemmentat authority as to the exl9tanoe of, and Seger has no knowledge 3t7 of, any Dutch elm disease, oak wilt, ar other disease of any trees an the mat property. ]tfl 3l9 H. MECHANICAL SYSTEMS. Seller represents that all fixtures, heating and air wndltlaning equipmem, fireplaces (including mechanisms, 3zo dampers,llues, and doors), caving, and plumbing used and located an the real property wi0 be inwarkfng orderan the Oate of Closing, FCrthe 32I purposes of this Purchase Agreement, •in working order means that the item fundicns far the purpose That it is intended to perform, that g is 322 not in violation of any public modes ar regulations (although it may be tagagy nonconforming undercurrent law), that it does not presently need 323 replacement,deaning,rapairsorservice,thatgisnotmissinganyessentialpads,andthalitsontyimperfedionsare'cosmatic'orslgnsoPwear 324 and tear associated with a product of its age. 325 726 I. WET BASEMENT. Seller (strike omit has !has not bed a wet basement. 3zi Sze J. ROOF. Seger strike one] has /has hot had a leaky roof. 3z9 33e K. UTILITIES CONNECTIONS. Seller represents that the prapedy is eonnaGed to: 33i city sewerjshike aneJ YE51 NO; Gtywalet fsMke oneJ YES / NO; cable wmmunirations fsldke oneJYES t NO. 3]2 333 L. CLEAN CONDITIONS. Seller ehallremovealldebris,trash,rubbish,garbage,rubble,endyardwastafromlhetand beforethapossess(ondafa. 334 Seller shall remove all trash, garbage, and miscellaneous discarded materiels from iha buildings, and shall leave the buildings In'broom clean' 33s wndigonbeforethepossessiondale. SollarshallremaveagpereonalproperlynotinGudadinlhlssalefromtherealproperlybefarepossession 336 date. 337 33a M. BUYER'S INSPECTIONS. Buyer may have inspectibna of the property wnduded prior to closing. (Check the box lJlfte following provision 339 applies to thisPurehaseAgraemenCJ (_f ADDENDUM TO PURCHASE AGREEMENT: BUYER'S HOME INSPECTION CONTINGENCY, 37n M.5.B.A. Real Property Fonn No. 18 (2l]05), is inducted as an addendum to this Purchase Agreement 341 37x N. METHAMPHETAMINEDISCLOSURE, jCheekon/yonebox,Bffher(1)ar(2J.J 343 B (1) To the bast of Seller's knowledge, melhemphetamina produGion hesnot oxurred an the property. 344 (2) To the bast of Sellers knowledge, methamphetemine produIXbn has occurred on the property and Seller's disGosure is contirwed 345 in Pan B., METHAMPHETAMtNE DISCLOSURE STATEMENT, M.S.B.A Real Property Form No. 22 (2005), included as an 376 addendum to this Purchase Agreement 377 sae 0. NOTICEOFAIRPORTZONINGREGULATIONS.IEafrpodzaningregulattonsaffactthisrealpropeny,acapyofihoseairportzoningregulalions 349 as adopted can be viewed or obtained at the o(ftea of Iha eouMy recorder where the zoned area is located. 3sn 351 p. WARRANTIES SURVIVE CLOSING. Selfarswarrantiasand representations contained inthis Paragraph 10., shall survive the delivery of the 352 Geed or Contract far Daed. 357 357 ThlsParagtaphl0.,shagnotchangeereBadenyrightslFrateuyermighthaveundartheUnifotmCommereialCode[MinnasotaStatutes$eetion335.2- 3ss 312J, or under Minnesota's'Prevention of Consumer Fraud Act' (Minnesota Statutes Sections 325F.fi6 - _70j, or under Minnesota's'Homeowners 3s6 Wartanty Act' {Minnesota Statutes Chapter 327Aj; nor shaiE tt preGude Sellers liability far en adicn far fraud, negligent misrapresenlalian, or other 3s7 actions agowad by law [Minnesota Statutes Section 513.57.] 338 3s9 11. DISCLOSURE OF NOTICES. Sellerhas not received any notice tram anygovemmental authority u to vialagon of any law, ordinance arragulalian 36o affecting the real property. If the real property is subjad to restrictive covenants, Seger has not received any notice from any personas le a breach 36t cilherAVenants. Sellerhasnotreceivedanynolicefromanygovemmentalauthorityconceminganyaminentdomain,condemnation,spedaltaxing 36z district, orrezoning proceedings. Sellars representations coMafned fnthis Paregraph 11., shell survive the deliveryaf iha Deed or ConireG for Daed. 363 364 36s 12. TRUTH•IN-HOUSING. Buyer acknowledges receipt of the Truth-in-Housing DisGasure Report or other inspealon report if required by the ]66 municipality in which the mat progeny is located. 3G7 36a 13. POSSE8310N. S911ar shall deliver posaesslon of the property not later than IMMEDIATELY AFTER closing. 369 All interest fuel oil li id petroleum gas, ahd ell cNetgeS for GIY water, city sewer, electricity, and natural gas shall be prorated between the parties 37o as df DATA OF CL~51~IG n ,~ M.S.B.A, Real Pro[3erty FOfITI No.1 (lase; Rev. 1996; Rev, 1997; Rev. 2002; Rev. 2004; Rav. 2005; 2007; 2008) Moir nesata Standard Residential Purchase Agreement PURCHASE AGREEMENT i PACyE 5 Of 10 371 14. TITLE. 373 A. ABSTRACTANDEXAMtNATtONOFTITLE. TodemanstretelhatSeperstitleisgoodandmarketableafrecord, withirtareasonabletimeafter 373 acceptanceoflhisPurehasaAgreement,SellershaBfumish8uyerwithanAbslrectofTitie[sees.,below)oraRegisleredPrtpanyAbstredcen~ed 37a to date induding proper searches covering bankrupldes and state and federal Judgments, federal eourtjudgment liens sr favor of the U.S., liens, 38 andlaviedandpendingspecielassessmenta BuyershellhwetenbusinessdaysagarreceiptaftheAbsUadafTitleorRegistereifPrapsnyAbstract ]7G either to have Buyers lawyer examine the title-and provide Seller with written Title O6jedions or, at Buyer's own expense, to make en application 377 fora titlelnsurancepoAcyandnntitySalleraflheappiiption. SuyarahallhavetsnbusfnessdaysaftarracoiptaftheCommitmentforTitlelnsurance 378 to provide Seller with a copy of the Commitment and written Title Objedions. Buyer shall be deemed to have waived any Title Objections not made 37s within the ten day pedod above, except that this shall not operela as a waiver of Sellers covenant to deliver a statutory Warranty Dead, unless a San Warranty Deed is not specked above. If Buyer obtains title insurance, Buyer is not waiving the right to obtain a good and marketable tiDe of record 381 from Seller. aaz For the purposes of this Agreement, an'Objedion to Title' or'TiAe Objedian• is some I(Ile metterwhich fails to pass a Gtle axaminaUon based 3a] upon Minnesota taw and the Minnesota Title Standards promulgated by the Reai Property Section afthe Minnesota State Bar Association thereby Sea rendering the tills unmarketable and is a title matterwhich requires a remedial response by the Seller prior to or at dosing. 3as An'Excepticn IaTitle' or'Title Exception' is some Ulie matlarwhichpasses a litleexaminatian basedupon Minnesota law and the Minnesota Title 3a~ Standards; is generally regarded by tAle examiners as not rendering the title unmarketable and, which, because of its nature, is generally disclosed 387 by title examiners to the redpienl oftha title opinion or title lnsurenca commitment. aaa 3a9 B. ABSTRACT LOST OR UNAVAILABLE: TITLE INSURANCE BY SELLER. if Seller is unable to find the Abslraet of Tills or iF Seller did not 3va receive an Abstract of Title when SeAar purchased the Property, than, to demanslrale that Sellers title is insurable for marketability and subject to 3vf only those metfera disdosed at Paragraph 0., above, wdhin a reeaonable dme attar eceeptance of this Agreement, Seller shall famish Boyar with 39z a Commitment for Title Insurance including proper searchescovering bankruptdesand slate and federal judgments, federal town judgment liens 3v3 in favor of the U.S., liens, and levied and pending special assessments. (Seller: see Advisory befow.J Tha Commitment shall be abteined from 3va jseleet anej 3s3 The title insurer of Buyers choice; or, 3vu The same title insurer that Issued tiffs insurance to Seller so that SaEiar may obtain a reissue credit from the insurer. 397 The Canmitment shall tohlefn the insurers requ{raments far deleting these exceptions in iha owner's policy (except for those matters accepted by 3')a Buyer in tats Agreamenq: ass (t) Rights or ciaima of ponies in possession, rmt shown by the public records atef (2j Easements; or claims of easements, not shown by the public records: am (3) Discrepancies, conaids in boundary lines, shortage fn area, enaoachmentc, and any fads which a correct survey and inspection of the aaz premises would disclose and whldr are not shown by the public rewrds: and, ao3 {4) Any Ilan, or right to a Aen, far services, tabor or material famished, imposed bylaw and not shown by the public records. aai Seller shall provide to Buyer and fo the title insurer ell documents [except a survey, unless Seller is required by other provisions of this Agreement ens to provide a survey) necessary fa enable the tills insurerta delete these exceptions from the owners policy of title insurance. Buyer shell have ten aoG businessdaysatterracaiploflhaCommilmenlforTillelnsurentetoprwideSallarwilhacapyoflheCommitmentandwrBtanTitleObjedions. Buyer aW shall be deemed to have waived any Title Otry'edions not made within tits ten. day period above, except IheC this shall not Operele as a waiver of sea Sellers covenant to deAver s statutory Warranty Deed, unless a Warrenty Doed is r»t apstifisd above. By sgreaing to receive title insurance in liou acv of an Abstract, Buyer is not waiving the right to obtain a good and marketable Idle of record from Seller. (Buyer. see Advisory betbw.j am Safacf ono of the foffowing: sit © Tha Cammilmentshallbeaxompaniedby,elsellersexpanse,thainsurersagreamanl(arlheseparaleagraementtfaMinnesota-licensed at3 abstracter) to provide Buyer with an Abstract of Tale al any lime in the future. The abstred to be provided shall be at no cost to Buyer far at3 alt abstracting through the dais of recording of the instrument of eonvayanceconlemptated by this Purchase Agreement. SeilersheA pay eta all commtment; abstrading, examination, searches, and tills insurance costs, including the premium far the owners polity and excluding ale the premium for the lenders policies. aft; Q Tha Commitment will not include the insurer's or abslredars agreement to provide Buyer with an Abstred of Tite at any time at no east to all Buyer.5eliershallpayailcommhment,abstracting,examination,seardtas,andtitteinsurarx:swatafarlud(ngthepremiumsforthaowners eta and the lenders policy. atv ADVISORY TO SELLER: You should consult with your lawyer about the comparative costs of paying an abstrect company to produce a azo now Abstract of Titlo voreus paying tho Buyora tltto insurance casts. In many Mtnnasota wun0as, it Is less expenslva to obtain a now an Abstract. a+~ ~DVI9ORY TO BUYER: Yau should consult with your tawyor about the rolatlvo mottle of receiving an Abatrect of Tlge voreus recolving ax3 a title lnsurence policy. As a futuro sollor aftha samo property, you Ilkolywill be askod to givayour 6uyoran AbetrecL If your Snllor door azo not obtain the titlo insurento sndoreomant for future produettan of an Abstract, you might bo facing a forgo oxpanso whop you soli. azs azr 15. TITLECORRECT(ONSANDREMEDIES.Seltarshatlhevaalimdedtime,fromreceiptofBUyerswtihsnTitlaObjadions,tomekefHlemarkatable. a27 Upon receipt of Buyers Tills Objadione, Sellor shall, within ten business days, give Notice to Buyeraf Selisrs intention to make title marketable within azo the tills-clearing curs period seleded 'ur C.(t) ar C.(2) below. Liens ar enwmbrances far liquidated amounts which can be released by payment ar 42v eacrawfrompraceedsofdosingshallnotdalaytheelosing. CureoflhedefectsbySellarshallbareasonable,diligent,andprompL Pendingwrredion a3s of title, all payments required herein and the closing shall be postponed. a71 aaz As an allemalive to making tiAe good and marketable of record, Seller may, within the ten day Notice period make a written, dated offer to Buyer to J33 obtain titleinsurance for Buyer with Insuring provisions acceptable to Buyer (and, it applicable, Buyers lender), es follows: aaa • Sellermay procure, at Sellers expense, an owners palieydftitla insurenee, from en insurer registered and licensed to do bus(ness in Minnesota a3s and acceptable to Buyer, specificalty Insuring war the Title Objections; or, a36 • 1f the TiAa Objections ors stated in a title insurances wmmitmam which Btayerhes abtaated, SeAar may provide the insurerwilh such documents a37 and escrows as era necessary to allow the insurer to specifically insurawer iha Titre dbjedions and agree to pay all of the insurers charges a7s /or issuing the owners policy to 8uysr. a37 Under Dither of these title insuring altemat(ves,'al Sellers expense' and'pay all of the insurers charges' mean That Seller will pay all title insurance eau commitment and policy premium charges, search charges, plat drawing fees, and any other charge by the insurer to issue the owners polity, but not gal the premium for a lenders polity, it arty. I/ Buyaraxepla Sellers oNeraf aninsureble tills, than in this Purchase Agreement, "making title marketable' aa2 shall moan 'making title insurable," in the manner described above. Buyer is under no abllgatlon to Saecepl Sellers offer of an insurable dale in Aeu ao3 ofagoodandmarketebleGlleofrewrd,bul,ifBuyardtasnotrejodSellersofferofanineurabietillawilhinlhree(3)businessdeyso(reteivingSallers aaa offer, Buyer shall be deemed la have accepted Sellers offarof an insurable tills. if Buyerrejeds Sellers oBerta make fills tnsureble, Salter shall then gas make title good and marketable of record and shall be subject to the provisions of this agreement for tailors to timely present good and marketable sac title of retard. aaz A. If Notice is given and Seller makes title marketable, than upon presentation to Buyer and proposed lender of documentation astablrshing that aaa title has been made marketable, and ifnot objected to in waling andwilhin5 business daysaf receipt otSallars documentation, the dosing shall acv take place within ten business days or an the sdleduled dosing date, whichwar is later. asn B. IfSellerdoesnotgiveNoticeofintentiontomaketillemarkstablewilhinlenbusinessdaysakerreceiptofBuyersTilleObjections,lhlsPurchase asf Agreement is canceled and the aemest money shall be refunded m Boyar. aaz C. Salaction of Title•Clearing Cure Pedotl. jC.(1J and C.(2J era aftemat/va remedies. ONLY ONE OF 77fEM CAN APPLY FOR TH1S as3 PURCXASEAGREEMENT.I/eltherpartycannotenduremorethsna30to45daydelayfortbecfosing,selaefC.(1J, ffbothpartiescaa aaa ondure a fongor dofaylar the cfasfng, seleft C.(2J. SELECT ONLY C.(1J OR C.(YJ.j IP THE PARTIES DO NOT SELECT C.(1) OR C.(2), ate BYCHECKINGONEOFTHEBOXESBELOW,THENC.(1)AUTOMATICALLYAPPLIESASATERMPORTHISPURCHASEAGREEMENT. aaa ® C.(1) is selected as a remedy for this Purchase Agreement. as7 (1) Seller shell have 30 days from receipt of 8uysrs written Title O6jadions or until the Date of Closing, vvhkhavar date is later, to make title aaa marketable. If Notice is given but the stated period expires wAhoul tAle being made marketable, Buyer may: asv (aj Cancel This Purchase Agreement by notice to Seller pursuant to Minnesota Statutes Sedfon 559.217, Subtl. 3 (allowing Seller a 15 aGU day right to cure) and neither pony shall ba liable far damages hereunder to the other, and the earnest money sha0 be refunded It asf Buyer, or, as2 (b) Elad to take title subject to some ar all of the Title O6jedions. aG3 0 C.(2) isselected as a remedy for Ibis Purchase Agreement. a~ M.S.B.A. Real Property Form No.1 (1994; Rev. 1996; Rev. 1997; Rev. 2002; Rev. 2004; Rev. 2005; 2007; 2008) Minnesota Standard. Residential Purchase Agreement PURCHASE AGREEMENT 1 PAGE B of 10 aGa (2} Seller shall have fseleU onej 60 ! 90 ! 120 days from receipt of Buyer's written Title Objections or until the Dale of Closing, whichever acs date is later, to make tiEle marketable If Notice is given put the stated period expires wifhouttitle being made marketable, Buyer mayseek, aGG as permitted by law, one or more of the following: aG7 (a) Proceed to Dosing without waiver or merger in the Deed of fha Title Objections and without waiver of any remedies, and may: aGa (iy Seek damages, costs, and reasonable lawyers fees from Seller as pennilled bylaw (damages underthis subparagraph (i) shell aG9 be limited to the cost of curing Title Objections, and consequential damages are excluded); or a7a (ii) Undertake proceedings to correct the Title Objections; alt (b} Rescission of this Purchase Agreement by notice to Seller, in which case all gamest money paid shall ba refunded to Buyer, an (c) Damages from Seller together with coals and reasonable lawyers fees, as permitted by law; a73 (d) Specific performance within six months attar such right of action arises, including coals and reasonable lawyer's fees; a7a (e} Cancellation of This Purchase Agreement pursuant to Minnesota Statutes Section 559.217, Subd. 3 (allowingSener a 15 dayright to als cure}. a7G D. If title is marketable, ar is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect either of an the following options, as permitted by law: a7a (1} CancellhisPurehaseAgraementpureuaMloeifharMinnesotaStatutasSacl1cn559.21or3ection559.217,Subd.3,andretainallpayments a79 made hereunder as liquidated damages. (Note: Urrderfadaral taw, Sellermlght not be able to legallyGalm orretaln the gamest money ass underpart:haseagraemenrstvhere8uyerappliesforbutfsunablafosecuraF.H:AarD.V.A.moRgagellnancing.JThepariiaseeknowledge asl their intention that any note given pursuant to this contract is a down payment note, and may boprasented tot peymeni notwithstanding 4az cancellation;. aa3 (2) Seek specific peHormanee within six months after such rightof action arises, inducting casts and reasonable lawyer's teas, as permitted by a9a law. ass E. If Idle is marketable, ar is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted aaG by law: sal (1) Seek damages from Seller inducting costs and reasonable lawyer's fees; asa (2) Seek spedfic performance within six months ether such right of se5on arises, including casts and reasonable lawyer's fees; as9 (3) CancelthisPurcheseAgraemantpursuanttoMinnesotaStatutesSectfon559.217, Subd.3(allowingSelleral5dayrighttocure)andneilher ago pang shall be liable for damages hereunder to the other, end the gamest money shall be refunded to Buyer. a91 a92 NOTE: It this Purchase Ageemsnt Is canceled using Minnesota Statutes Section 559,217, contract provisions and statutory provisions for 493 refunding of the oarnost money to Buyer might be in con0icL a9a a93 16. NOTICES. All notices required hareh shall be in writing and delivered personally a mailed to the address as shown at Paragraph 1.above and, 4vG if mailed, are a{fectlve as of the date of mailing. a97 49a 17. SUBDIVISION OF LAND. If this sale constitutes ar requires a subdivision of land owned by Seller, Seller shall pay all subdivision expenses and a99 obtain allnecessarygovemmentalapprovals. SBIlerwarrantsthatlhelegaldesUiptionoflherealprapartytabecanveyedhasbeenorwillbeapproved sso for recording as of fha Data of Closing. sal Sae 18. MINNESOTA LAW. This eontreU shall be govemad by Ihs laws of the Slate of Minnesota. 3113 sera 19. WETLANDS,SHORELAND,ANDFLOODPLAINCONCERNS. Unlessdfsclosedas•amatarialtaU'thatcouldadversetyandsignitrcantlyaffed arts buyer's asa and enjoyment of the Property or any intended use of the Property, current caw doss net require Seller la discbse Seller's knowledge, if seG any, oftheexisienceofwetlands,shorafand,orSloadplainonoraffaGingtharealproparty.IfBuysrhasnotalreadyinvasligatadthesecancams,Buyer sal might want to include Seller's disclosures regarding these concerns. (Check the box Athe following provision applies to this Purchase AgreemenhJ sire Q ADDF~1pUMTOPURCNASEAGREEMENT: WETLANDS,SHORELANDANDFI.OODPLAIN DISCLOSURE, M,S.B:ARealProperlyForm su9 No. 8 (1997), is inducted as an addendum to th(s Purchase Agreement. s Ill s f I 28. SELLER'S AFFIDAVIT. At closing, Seller shall supplement fha warranties end repfesenlatfons in this Purchase Agreement by executing and sl2 delWazingaMlnnasotaUniformCOnvayancingBlank[FormNo. 50,1,2(farmerlytt6-M)or50.1.3(formeny117•Mor11&MpAffidavltof5eller. Seller's s13 Affidavit shall include Sellers representation that rte enambrences have bean placed on the property sinCalhe data of thin Purchase Agreement. sI•I su 21. CLOSING. Closing shell be at the office of Sallera lawyer, Buyer's title Insurer, or at same other mutually agreeable location. SIG all (State ottlerlocatian:J Sle At closing, Sallar and Buyer shall disdose their Social Security Numbere or Faderaf Tex IdentRcation Numbers for the purposes of completing stale 319 and federal taX (amts, 5211 szt CLOSING COSTS. The costs of closing, if not determined by other provisions of this Agreement, shall be paid as follows. sz2 A. SELLER'S COSTS. Seller shell pay 8ta foAowing al dosing: 323 1. Documem preparation casts, recording fees, and deed taxes for daamtents necessary to calabash good and merkelaMe tills in Sailer. sza 2. Document preparation rASis, certified copy fees, and recording fees to establish the authority of the person acting on behalf of Seiler. 523 3. Document prepazation costs for Seller's deed or conVactfardeed, Certificate of Real Esfale Value, Sellers affWavi~ Welt Disdosure szG Certificate (lf required}, and any ocher documents necessary to transfer good and marketable title by Sellars deed ar eenVaU-far-dead. s27 4. Deed tax on Salters deed and the Agriwlturel Cansarvation dead tax d,arged under Minnesota Statutes Section 40A152. sza 5. Fees payable to Sellers lawyer or to a loser ['fkle loser) for conducting ills tille•tranafer portion of Iho ebsing. If Sailer is notproviding s29 a lawyer or tt8e closer for fha t81e•tranafar portion of the closing and'd Buyer is abtainvtg new mortgage frnandng and the losers fee is not Sao separated into a'title dosing fee' and a'laan dosing fee; then Seller shall pay one half of fha closers fee ar 5_ .whichever 531 amaU01 IS 10aa. 532 6. And also the following casts: 333 33a 373 33G 377 339 339 Sall Sal B. BUYER'S COSTS. Buyer shell pay the following at closing: sae 1. Document preparation costs, recording fees, and mortgage registry taxes for documems necessary far Buyers mortgage financing. aa3 2. DacumeN filing fee for a Well Disclosure Cert~cate, if appnrable. 344 3. The Agricultural Conservation dead tax on Buyers mortgage deed dterged under Minnesota Statutes Section 40A.152. sas 4. Loan elosersfea. saG 5. Reeording fee for Deed, Contract for Deed, or ether instmment of conveyance where Buyer is fha grantee. sal 6, And also the following costs: SaR Sag asa sat asz 333 ass 22. ADDITtONA! TERMS. P8rCh858 IS COOf199BOt 80 COgIpIC[IOS OF 1IIB jIrOCBSS gF r8y18W 80dBP Statlf Statute bfi2356 SObdIY. 2. 33G by the Plamm~a Commrssmn an August 23, 2010. s» asa 339 SGa ~~ M.S.B.A. Real Property Form ND.1 (199x; Rav. 1sss; Rev. 1997; Rav. 2002; Rav. 2004; Rav. 2005; 2007; 2008) Minnesota Standard Residential Purchase Agreement P RcHASE AGREEMENT !PAGE 7 of 16 sGl SG2 363 SGa SGS 5G6 suT SLH Sfi/ 37a sn s7z S73 37a 575 s7u 577 376 579 sae sal 562 383 sea Se7 saG ia7 58B sag 5911 391 s9z 593 s9a 3 )3 3'JG 597 59a 599 uau 6m caz Goa ul>a G43 G(IL 6117 689 rlo Gli G12 G13 (DreRer. considerissues olassignment and of succession-in-interest.) 27, ADDENDA. Attached are the following addenda which are made a pan oithis Purchase Agreement: )Check onlythose That era attaehed.J FINANCING (Baled artlyorte /lnancing addentlum:j Financing Addendum for Canvan0onall Privately Insurod Mortgage, M.5.B.A, Real Property Form No. 2 (2008) Ptnancing Addondum for FHA lneured MoRgago, M.S.B.A. Real Properly Farm No. 3 (2008} Ftnancing Addondum for VA [neared Mortgage, M.S.B.A. Real Property Farm No. 4 (2008) Financing Addendum far Sollor Mortgage, M.S.B.A. Real Praparty Form No. 5 (2005) Flnancing Addondum for Contract for Dead, M.S.B,A. Real Prapetty Form Na. 8 (2005) Financing Addendum for Assumption, M.S.B.A. Real Property Form No, 7 (2005) DISCLOSURE AND CONTINGENCY: Q Addendum to Purohasa Agreement: WeOands, Shoreland, and Flood Plain Dlsciosuro, M.S.B.A. Real Property Form No. 8 (1997} ~ Addondum for ConUngentSalo or Purohaso of Other Home(s), M.S.B.A. Rest Property Form No. 8 (1997) Lead Paint Addendum for Housing Constructed Before 1978, M.S.B.A Real Property Famt No. 11 (1996} Diseloaurc at Sowaga Treatment System, M.S.B.A. Real Property Form Na. 14 (1988) Condition of Property, M.S.B A Rest Property Farnt Na. 15 (2085} Atltlondum to Purohasa Agreement: Survey, Appraisal, Development Evaluation, and Arohaalogtcal ! Historical Survey, M.S.B.A Real Properly Form No. i7 (2005) ® Buyer's Hama Inspoctlon Contingency, M.S.B.A, Real Property Foml No. i8 (2005} Well Disclosure Statomont, M.S.B.A. Reel Property Form No. 21 (2005) Mothamphotamine Disclosure Statement, M.S.B:A. Reel Properly Fonn Na. 22 (2005) TITLE ISSUES: B Addendum to Purchase Agreamant:l7tlo Issues, M.S.B.A Real Property Form No: 19 (2005} Addondum to Purchase Agreement: Tenants and Parties in Possession, M.S.B.A. Real Property Form No. 20 (2005) COMMON INTEREST COMMUNITY: Q Addondum to Purchase Agreement : Common Interost Community, M.S.B.A. Real Property Fonn No. 12 (2004) Olhare; 24. TIME IS OF THE ESSENCE. Time is of the essence for all provisions of this Purchase Agreement. 25. MULTIPLE ORIGINALS. Seller and Buyer have signed /number) originals of this Purchase Agreemem. THIS IS A LEGALLY BINDING CONTRACT. BEFORE SIGNING. CONSULT A LAWYER Mlnnosote law pormtta licensed real estate brokers and sales agents to proparo purchase agroements, No recommendation ar reprosontadon may bo made by any real eatato broker or sales agent as to iho legal sufficiency, the legal eNeet, or the tax consequonees of This eontroeL Those aro questions for your lawyer. I agree to sell She properly forthe price and terms and conditions set forth above. SELLER: (dale} SELLER: (date) I agree lopurchase the prapartyforlha price grid tones and conditions set forth above. BUYER: Steven L Deviah, City Manager (dale) BUYER: Debhie Goettel, Meysr (data) This Purchase Agreement was preparetl by: CITY OF RICHFIELD G700 PORTLAND AVENDE SDDTH RICHFIELD, MN 55423 a 1D M.S.B.A. Real Property Form No. 1 (1994; Rev. 1496; Rev. 1997; Rev. 2002; Rev. 2004; Rav. 2005; 2007; 2008) Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT /PAGE 8 of 10 Qfhnrs whn w11! nnelrl Saflar nr Rnvar wreb ~Me eraneawNn... tawyertor BUYER ~ Telaphone:612-337-9300 Faestmlie: 612-337-9310 KENNEDY AND GRAVEN,CHARTERED CORRINE HEINE 470 U.S. BANK PLAZA 200 SOUTH fiTH STREET MINNEAPOLIS, MN 554D2 listing Agent and 8rokertorthis trensaetion are: 952-960-9198 Teie hone: F 612-677-3940 U i il MINNESDTA REALTY, INC. p acs m e: Eric Charzempa and Jennifer Hennemuth I66D Highway 100 S Ste 500 5t Louis Park , MN 55416-1551 Selling Agent arrd Broker tar this transaclion are: Telephone: Faeslmila: Buyer's arLender's Title Insurer. Telephone: Facsimila~ M.S.EI.A. Real Property Form No. 1 (1994; Rav. 1996; Rev. 1997; Rev. 2002; Rev. 2004; Rav. 2005; 2007; 2008) M(nnesota Standard Residential Purchase Agreement PURCHASE Af3REEMENT /PAGE 9 of 10 PERSONAL PROPERTY AGREEMENT r 2 3 4 3 G 7 R 9 ]U II 12 I2 l4 Is tc I7 IR 19 2U 2l 22 27 z4 xs 2G n za 29 3U 31 3z 33 3a is 3G 37 7R 79 40 41 42 43 44 43 4c 47 4R a9 30 sr sz 33 34 33 54 s7 se s9 Gn cr cx G3 G4 GS GG G7 GR G9 7U 71 72 73 74 75 7G 77 7R 79 NU This Personal Property Agreement is a supplamentto the Purchase Agreement towhich ills ebadtetl. 5allefsabligation to trensiertitle la the personal property is contingent upon a successful closing and transfer of the reel property Olle to Buyer accordingtethe terms ofihe foregoing Purchase Agreement A. PERSONAL PROPERTY fNCLUDED IN THE SALE PRICE OF THE REAL PROPERTY. These items of personal property are Induded in the price shown for the reef propeny in the foregoing Purchase Agreement. NINE 8, PERSONAL PROPERTY PURCHASED SEPARATELY. The following Nems of personal property awrsed by Seller and currently located on the real property shall be purdtasetl by Buyer at the price showrvfor each item. Thane items are not Induded in the price shown for the real propeny in the foregoing Purchase Agreement and shall be paid for at closing. jSelect only one of~helolfowing:j Buyer will accept the property'as ls' In its condition at the time of dosing. Seller warrants that these items of personal property will be in working orderan the day of dosing. For the purposes of this Personal ProperiyAgreement,'in working order means That the {lam functions for the purpose that it is fntsnded to pederm, that it is not in violation of any public codes or regulations (aNhough it may ba legagy nonconforming undercurtent law), Ihet it does not presan0y need replacement,cleaning, repairsorservice,ChetRisnotmissinganyessentialpans, end that Bs onlyimperfec0onsare'wsmellc'orsignsaf'wearand test" associated with a product cf its age. Seller's warranties and representations contained in this Pereonatpraperiy Agreement shell survive the delivery of the Dead or Contract for Dead and any Bill of Sale for the personal property. Any notice of a dated ar claim of breach of wartanty as to "in working order" must be in wrNing and must be given by Buyer to Selierwithin 30 days of the bate of Possession ar be deemed waived. Title to personal propeny passes to Buyer by a bill Msale. Upon delivery of the Deed, Sallarshall delivers Bill of Sale containing warrentes of tiBa for tlw above personal propeny. Seller shalt use M.S.B.A. Real Property Form No. 90 (2005), Warranty Bill of Sale or a similar farm containing the folowing warranties of title: 'Sellerwarrants theL' Seller is the owner of the personal property described above; the personal property is free from all liens, claims and enwmbrences (except as listed above); and Otat Seller has the right to sell and Irensfer Iitle to and possession of the personal pcopeny to Buyer. Seller warrants and shell defend Buyer's Otla to the personal property against arty and all personswho claim any Imeres[ through Seller's interest in the personal property descnrttad above, subject only to the liens, claims and encumbrances listed above.' These warranties are not intended to change ar limn the warranties of Minnesota Statutes Section 336.2+312 or to ahet the remedies avagable to Buyer under Minnesota Stalules Sections 325F.69 -.70. At closing or prior to closing, Seller shall provide for payment of, sagsfadion af, ar release of any existing Ilens, claims, or encumbrances on the personal propeny, except far the following encumbrences which Buyer accepts or assumes (Gst herej: This supplement page is initialed contemporaneously with the signing of the Purchase Agreement '~,~~ INITIALS: Sellers Buyers t 2 3 a s 6 7 s 9 to 11 12 13 la IS 16 l7 IB 19 zo zr 22 23 xa 25 26 27 z6 29 30 ll 32 33 34 35 36 37 38 39 ao al a2 43 as as 46 •n a8 q9 Sb 5! 52 53 54 55 56 57 56 54 60 61 62 63 ba fi5 66 fi7 68 69 7a 71 72 73 M.5.9A. Baal Proporry Form No. 71 11996; 20aa) Lead Pafnt Addendum far Hovsino Constnieled Berote 1978 p ~ r LEAD PAfNT ADDENDUM FOR HOUSING CONSTRUCTED BEFORE 1978 ©Capyright 2998 Minnesota t3lato enrAaaadotfon, Minneapolis, Minnaaola, (Use anlywilh'Minnosola SWngard Residential PurchaseApreement,'Minnesota State 9arAssadadon 2099.) This addendum is a continuation of the Purchase Agreemeni dated AUGUST 13, 2010 between MERS.INC. LEAD WARNING STATEMENT by and as Sellers, and _, as Buyers, Every purchaser a/any interest in residential real pmperiy on which a residential dwelling wasbuilt prior to 1978 is notified that such property may present exposure to lead from leadbased paint that may place young children at risk of developing lead poisoning. Lead poisoning In young children may produce permanent neurological damage, including leamtng ~sabili6as, reduced intelligence quotient, behavioralproblems, andfmpaired memory. leadpolsoning also poses a particularrfsk to pregnant women. The seller of any interest !n residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seilef's possession and no8fy the buyer of any known-lead-based paint hazards. A risk assessment orlnspectron forpossible lead-based paint hazards is recommended prior to purchase. LEAD PAINT INSPECTION CONTINGENCY Buyer shall have 10 days tram 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 sailer the Inspection or risk assessment report and a list of repairs required by buyer to correct problems sat out in the report. (Intact lead-based paint that is in good condition is not necessarily a hazartl, See EPA pamphlet Protect Your Family From Lead in Your Home for more information.) If the report discloses problems seller shall have seven (7) days after receipt of the report and' list to elect in writlng whether to correct the problems prior to closing. If sellerelects to make the corrections, seller shall provide buyer pdor to dosing with certification from a risk assessor orinspection demonstrating that the problems have been corrected. If selterdoes not elect to make the corrections, buyershall have three (3) days to electto take the property in its "as is° condition as to problems set out in the report, or this purchase agreement is void. Buyer may waive in writing the rights contained in this contingency at any time. Seller's Disclosure (a) Presence of lead-based paint or lead-based paint hazards (cheek (iy ar (ii) below}: (i) 0 lead-based paint orlead-based paint hazards are present in the housing (explain:) (ii) ® Seller has na knowledge of lead-based paint arlead-based paint hazards to the housing. (b) Records and reports available to seller (check (i) or (ii) below): (i) Q Seller has provided huyerwith all records and reports in seller's possession or reasonehly obtainable by seller pertaining to lead-based paint and lead-based paint hazards in the housing (list documents below). (i1) ® Seller has no reports or records pertaining to lead-based paint or lead-based paint hazards in the housing. Buyer's Acknowledgment {initial) (e) ,- ,-_ Buyer has received copies of all information Listed et (b)(i) above. (d) ~ _ Buyer has received the pamphlet, Protect Your Fam1v from Lead in Your Home, an EPA publication available at www.eoa.oavAead/oubslleadodfe.odf, (e) _ _ Buyer nos (check (i) or(il) below): {i) _ _.__ received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment orinspection farthepresence aFlead-based paint and lead-based paint hazards; or, (ii) _ _ waives the opportunity to conduct a risk assessment ar inspection for the presence of lead- basedpaint and lead-based paint hazards. Agent's Acknowledgment (initiaq (f) Agent has informed seller of seller's abligaGans under 42 U.S.C. 4952d and is aware of agent's responsibility to ensure compliance. Certification of Accuracy The fallowing parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate, Seller data Purchaser Steven L Devich, City Manager date Seller data Purchaser Debbie Goettel, Mayor data Listing broker /agent date Selling broker /agent date a~~~ 34-028-24,HENNEPIN COUNTy,MINNESOTA ~,i3 Waiver of Seller's Disclosure Requirements for Residential Real Property and Hold Harmless Agreement ("Waiver and Hold Harmless Agreement") Se11er:OwnerofRecord MERS,INC. Buyer: CITY OF RICHFIELD Property Address:7600 PORTLAND AVENDE 500TH, RICHFIELD, MN 55423 TAX PARCEL # 34-D28-24-44-0001 Date: AUGUST 13, 2010 Buyer desires to purchase Property from Seller, pursuant to a purchase and sale agreement (the "Agreement") to be entered into between Seller and Buyer. Minnesota law requires that the Seller either provide the prospective buyer of single family i-esidential real property with a written disclosure of the existence or known status of private sewer systems, existence or known status of any wells, and all material facts pertaining to adverse physical conditions in the Property or which the Seller is aware of, or provide an inspection report from a qualified third party. The law also. permits the Seller and Buyer to waive those disclosure provisions. Buyer (whether one or more) and Seller hereby waive, in their entirety to the full extent permitted by law the provisions set forth in sections 513.52 to 513.60, 115.55, 1031.235, 102.0275 of the Minnesota Statutes Annotated, pursuant to sections 513.52 to 513.60, 115.55, 102.0275 and 1031.235 of the Minnesota Statutes Annotated concerning the above described Property. Buyer acknowledges that Buyer has been given an ample opportunity to seek the advice of the Buyer's own chosen legal counsel concerning the Agreement, the Property, and this Waiver and Hold Harmless Agreement. Notwithstanding anything to the contrary in the Agreement, Buyer specifically holds Seller harmless from any claim or claims made by Buyer, Buyer's successors, assigns, heirs, insurers, agents, or any other person or entity, as to any matter involving the disclosures set forth in sections 513.52 to 513.60, 115.55, 102.0275 and 1031.235 of the Minnesota Statutes, or claims made against Seller, at any time, concerning the disclosures set forth sections 513.52 to 513.60, 115.55, 102.0275 and 1031.235 of the Minnesota Statutes Annotated concerning the Property made by Buyer, Buyer's successors, assigns, heirs, insurers, agents, or any other person or entity, The parties herein agree that except as otherwise provided herein, the Agreement provisions shall be in full force and effect. The Waiver and Hold Harmless Agreement shall be binding and inure to the benefit of the Buyer and Seller and their heirs, successors, assigns, agents, employees, and officers and shall survive closing of the sale of the property pursuant to the Agreement. Buyer. By: Steven L. Devich Seller: By Its•City Manager Its: By: Debbie Goettel Its: Mayor