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1990-404166 LJ HRA BSSOLU'PION NO. 404 RESOLUTION REGARDING THE ACQUISITION OF CERTAIN REAL PROPERTY FOR REDEVELOPMENT WHEREAS, the Housing and Redevelopment Authority in and for the Ctty o! Richfield C'HRA'~ has adopted a Tax Increment Plan Modification for the Lyndale- Hub-Nicollet Redevelopment Project Area which calls `for the acquisition of certain real property within the said project area; and WHEREAS, the planning commission of the City of Richfield will consider such plan modification at its meeting on November Z7, 1990; and WHEREAS, the City Council of the City of Richfield will consider such plan modification at a meeting to be called for December 17, 1990; and WHEREAS, the HRA has adopted a resolution authorizing the acquisition of the real property described in the plan modification by various means including the use of eminent domain; and ` WHEREAS, the Owner of a portion of the lands which are the subject of the plan modification ("Levine Property', in the expectation that such lands will be subject to acquisition by the lEIRA through its power of eminent domain has requested that the HRA acquire the property through a negotiated purchase in lieu of eminent domain, and has offered to sell and convey such property for a total purchase price of =3,937,500; and WHEREAS, the HRA has lolly reviewed the purchase offer and hss, in that connection sought the advice and comment from a certified independent _review appraiser. NOW, THEREFORE, be it resolved by the Housing and Redevelopment Authority of the City of Richfield as follows: Resolution No. 404 1. The acquisition of the Levine property st the purchase price of i3,83~,500 is hereby approved, subject to the following conditions: (a) The HRA's obligation to purchase shall be subject to the approval by the City Council of the modification to the LHN tax increment plan. (b) The HAA's obligation to purchase shall be subject to the HRA's ability to enter into a contract for private development which shall include the subject property. The HRA anticipates that the basic terms of such contract will be considered for approval on or about December 17, 1990, and the Contract should be executed on or about January i, 1991. . Z. The Executive Director and Commission Chairperson are authorized and directed to execute a purchase agreement in substantially the form of the attached Exh_it 1 and deliver the same to the Sellers. Passed by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 19th-day o! November 1990. ATTEST: ~,~' / G homes E. Harms, Chairperson ~~ ~~.~ ~~ Joaln FIelmberger, Secretary c, :- •-. Z Resolution No. 404 EXt'.IBIT 1 RtAL ZSTATE PORCHASH AGREEI~NT THIS AGREEMENT is made as of November 19, 1990, between Robert Levine, Marion Levine, Nancy Levine Saliterman, and Richard Simon ('Owners') and the Housing and Redevelopment Authority of the City of Richfield ("HRH"). 1. The Owners offer to sell to the HRA the property legally described as Lot 3, Block 1, Richfield HUB Superblock located at 6520 Pillsbury Avenue South in the City~of Richfield. 2. This offer to purchase is irrevocable' and unless previously accepted will remain open until 11:59 p.m. on November 30. Acceptance by the ARA will be effective upon authorization by the HRA Board to accept this offer. The HRH's acceptance is subject to the following conditions: a. The HRH's obligation to purchase shall be subject to the approval by the City Council of the modification to the LHN tax increment plan. b. The HRH's obligation 'to purchase shall be subject to the HRH's ability to enter into a contract for private development which shall include the subject property. The HRA anticipates that the basic terms of such contract will be considered for approval on or about December 17, 1990, and the Contract should be executed on or about January 1, 1991. 3. The price for the property is Three Million Nine Hundred and Thirty-Seven Thousand Ffve Hundred Dollars (53,937,500), under the following terms: (a) $3,937,500 cash on or before the date of closing; or (b) if as of the date of closing, Owners have not satisfied the leasehold interest of Snyder': Drug Stores, Inc., then the 8RA oay retain $250,000 of the purchase price until Owners resolve such interest. ~. Not later than 10 days following the acceptance of this purchase agreement by the HRH, Owners will deliver to the HRA ail abstracts of title os registered property abstracts, certified to date, involvinig the property. The HRA shall have 10 days from the date of receipt of such abstracts to make any written objections to the marketability of title. Owners shall have until the date of closing to cure any such objections. S. At closing, Owners agree to execute and del-aver a warranty deed, to be joined in by their spouses, if any, 1 HRA Resolution No. 404 conveying marketable title to the premises subject only to the following exceptions: building and soning laws, ordinances, state and federal regulations= restrictions relating to use or improvement of the pre~ises without effective forfeiture ' provision; reservation of any mineral rights by the State of Minnesota; and utility and drainage easements which do not interfere with present improvement. Owners also agree to deliver, at closing, a standard form Sellers' affidavit showing no bankruptcies or judgments, a certificate that Owners are not foreign nationals, and any Certificate of Title in Owners possession. 6. Nothing in this agseement obligates the Owners to assume any responsibility for the leasehold interests, if any, of Penny's Supermarket, inc. or Minnesota Swim i Fitness Centers, Inc., or any responsibility for payment, if any, to Snyder's Drug Stores, Inc. for fixtures. The HRA agrees that the leasehold interest of Penco-Challenge (Trade name Great Clips) ~aay continue under the terms and conditions of the lease dated June 1, 1984. 7. Real estate taxes due and payable in and for the year of closing shall be prorated between Owners and the BRA on a calendar year basis to the actual date of closing. Owners shall pay on the date ©f slo5ing all is~tallments of special assessments certified for payment with the real estate taxes due and payable in the year of the closing. ~~ 8. The'Owners are responsible for satisfying the leasehold ~~ interest of Snyder Drug Stores, Inc. Nothing in this a reement obligates the Owners for payment of any expenses, including _ attorney's fees, associated with any eminent domain action necessary to acquire any leasehold interest, including Snyder's Drug Stores. Owners have the right to select the law firm to handle any such action, but no resolution or settlement of the action will be effective without the BRA's approval. 9. Nothing in this agreement obligates the Owners to pay any relocation benefits to any tenant. 10. Onless otherwise agreed to by the parties, the date of closing will be no later than 30 days after the Owners have cured any objections to title and after the contingencies set forth in paragraph 2 of this Agreesent have been satisfied. 11. The Owners warrant that.to the best• of their knowledge, the information provided in the attached Well Disclosure Certificate is accurate and complete. 12. Owners and the HRA each represent and warrant to each other that they have not incurred any obligation or liability, contingent or otherwise, for brokerage or finder's fee or agent's commissions br other like payment to any broker in Connection 2 HRA Resolution No. 404 with this Agreement or the transaction contemplated by this Agreement. Owners and the ARA each agree to indemnify, defend, and hold the other harmless against and in respect of any such obligation and liability based in any way upon agreements, arrangements, or understandings ~oade or claimed to have been made by the indemnifying party with any third person. 13. Owners will pay any recording fees required in connection with this Agreement. OWNERS Robert Levine Marion Lev ne Nancy Lev ne Sa terman ~~~ Richard Simon TAE 800SING AND REDEVELOPMENT AOTAORITY OF TAE CITY OF RICHFIELD 8y Its Hy Its 3