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9B - Colorado Street Property Purchase
ti 4646 Dakota Street SE Prior Lake. MN 55372 '1INNEse. CITY COUNCIL AGENDA REPORT MEETING DATE: July 14, 2014 AGENDA#: 9B PREPARED BY: Frank Boyles, City Manager PRESENTED BY: Frank Boyles, City Manager AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE PURCHASE OF PROPERTY LOCATED AT 4577 COLORADO STREET SE, PRIOR LAKE. DISCUSSION: Introduction The purpose of this item is to consider the purchase of a single family residence on Colorado Street SE, and authorizing the Mayor and City Manager to complete the transaction. History The City has been planning the future of the downtown area since at least 2006 in relationship to improvements to County Highway 21, including its intersection with Duluth, Arcadia, Main and TH13. Recently, the City and County completed substantial intersection improvements at Arcadia and CH21 as the new main entry into downtown, taking the place of the Main intersection, with a new street connection south to Colorado Street. In 2015, the County will complete and activate the signal lights at Arcadia and CH21, install "jersey" barriers in the middle of CH21 from Arcadia through the Main Avenue intersection, and remove the stop signs at the Main and CH21 intersection. These measures are planned to address safety concerns and traffic flow from TH13 to Arcadia. In order to provide redundant and appropriate access to both north and south downtown districts, consultants have identified various extensions of the Arcadia intersection to the south. The extensions include: • terminating arcadia at Pleasant; • extending Arcadia to the existing Franklin Trail intersection; • extending Arcadia through the Gross property and connecting to the west at Duluth; • extending Arcadia through Colorado due west to intersect with Duluth; or • extending Arcadia as a service road next to TH13. The City Council has not yet approved a specific alignment for the extension of Arcadia, but action was taken to amend the Comprehensive Plan to identify that a future extension of Arcadia linking downtown to Southlake Village is desirable as a support roadway for TH13 and CH21. Phone 952.447.9800 / Fax 952.447.4245/www.cityofpriorlake.com Current Circumstances In April 2014, two property owners on Colorado Street had made inquiries about the City purchasing their property, or clarifying its long-range intent for the Arcadia roadway extension to the south. The Council directed that the EDA investigate and recommend whether the purchase(s) would be appropriate. At its April 21, 2014 meeting, the EDA considered the pros and cons of any acquisition and voted unanimously to recommend the purchases. Conclusion At this time, one property owner has entered into a purchase agreement for the sale of the property at 4577 Colorado Street SE (location map attached). A signed purchase agreement is attached. ISSUES: Purchase Price: The property owner initially sought a price of$120,000. As part of our negotiations we encouraged the current owner to lease back the property from the city. He was not interested in such an arrangement. The purchase price for the property is $114,900. Some additional minimal costs would be incurred for closing costs and property taxes. The attached resolution proposes a not-to-exceed amount of$114,900 plus closing costs. The taxable market value of the property based upon the County tax rolls is $89,600 for taxes payable in 2015. Use of Property: The intention is that the property would be used at some future date to facilitate the extension of Arcadia Avenue to at least Pleasant Avenue. The Arcadia/CH21 intersection will be a new and highly visible entry into downtown Prior Lake. If the Arcadia Avenue extension alignment does not impact this property, there are other public uses for the parcel, including additional parking to accommodate other redevelopment projects in the area, or as part of a larger economic development project which could eventually take place including properties to the east. Regardless of the future use, the immediate intent is to either rent the property, or remove the existing structures sometime in 2015. FINANCIAL Funding for this parcel will be the General Fund. Item 5E authorized a IMPACT: transfer of residual funds from the closure of Debt Service Fund 547. This would provide approximately $99,000 of the funding required. The remaining $15,900 plus closing costs would be funded by General Fund reserves. The 2014 General Fund budget should be amended in the amount of $114,900 plus closing costs using residual funds from the closure of Debt Service Fund 547 and General Fund reserves ALTERNATIVES: 1. Motion and a second to approve a Resolution Authorizing the purchase of 4577 Colorado Street SE at a purchase price of$114,900 plus closing costs. 2. Take no action and provide staff with further direction. O4 PWp+ ti C U 1.21 4646 Dakota Street SE 41zNvxEso't1" Prior Lake,MN 5 53 72 RESOLUTION 14-xxx A RESOLUTION AUTHORIZING THE PURCHASE OF PROPERTY LOCATED AT 4577 COLORADO STREET SE, PRIOR LAKE, MN Motion By: Second By: WHEREAS, The City of Prior Lake, a Minnesota municipal corporation, acting by and through the City Council, is authorized by law to acquire real estate which is needed for public use or purpose; and WHEREAS, The City Council amended its Comprehensive Plan in 2013 to identify a future roadway connection from Arcadia Avenue south to the Southlake Village area; and WHEREAS, The County has indicated that in 2015, the County will activate the signal lights at Arcadia and CH21, install "jersey" barriers in the middle of CH21 from Arcadia through the Main Avenue intersection, and remove the stop signs at the Main and CH21 intersection; and WHEREAS, Future extension of Arcadia Avenue to the south will require the acquisition of several residential properties; and WHEREAS, The City has successfully negotiated the purchase of property at 4577 Colorado Street SE, Prior Lake, MN from a willing seller. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The Mayor and City Manager are hereby authorized to enter into a Minnesota Standard Residential Purchase Agreement and any documents necessary to close the transaction. 3. Funds for this purchase are authorized in an amount not to exceed $114,900 plus closing costs, drawn from the General Fund. 4. The 2014 General Fund budget is amended in an amount not to exceed $114,900 plus closing costs using residual funds from the closure of Debt Service Fund 547 and General Fund reserves. PASSED AND ADOPTED THIS 14TH DAY OF JULY, 2014. 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This is not a Map Scale legal document and should not be substituted for a title search appraisal, survey, or for zoning 1 inch = 134 feet verification. 6/30/2014 • 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/PAGE 1 of 10 MINNESOTA STANDARD RESIDENTIAL PURCHASE AGREEMENT ©Copyright 1996,1997,2002,2005,2007,2008 Minnesota State Bar Association,Minneapolis,Minnesota. " BEFORE YO 1 USE OR SIGN THIS CONTRACT,YOU SHOULD CONSULT WITH A LAWYER TO DETERMINE THAT THIS CONTRACT ADEQUATELY PROTECTS YOUR LEGAL RIGHTS. Minnesota State Bar Association disclaims any liability arising out of use of this form. I 1. PARTIES. This Purchase Agreement Is made on ,by and between 2 Nathan D.He mdal 3 [marital statue a single person 4 of(seller's ad ress)4577 Colorado St SE,Prior Lake,MN 55372 ,SELLER,and 5 the City of Prior Lake 6 as joint tenarts [strike"joint tenants"if tenancy-in-common is Intended]of[buyers address)4646 Dakota Street SE Prior Lake MN 55372 7 ,BUYER. a 9 2. OFFER/ACCEPTANCE. Buyer offers to purchase and Seller agrees to sell real property legally described as: 10 t I The East 50 feet of Lot 14,Block 15 of the Plat of Prior Lake Original Townsite,Scott County,Minnesota 12 13 14 15 16 [Propery Tax Identification Number or Tax Parcel Number 250011140 1 17 It located at 45n Colorado St SE ,City of Prior Lake 19 County of Scott ,State of Minnesota,Zip Code 55372 __ 20 21 3.ACCEPTANCE DEADLINE.The acceptance date of this Purchase Agreement is the date It is delivered by the last party signing to the other party. 22 This offer to Ruthrchase,unless accepted sooner,shall be void at 11:59 A.M.,on(date) ,and in such event all earnest 23 money shall ee refunded to Buyer. 24 • 25 4. FIXTURES AND PERSONAL PROPERTY. For the purposes of this Purchase Agreement,"Fixtures"are Items that are embedded in the land 26 or attached to the building(s)and cannot be removed without damage to the real property.The method by which the fixture is"attached"could be 27 screws,nails,adhesives,or any other mechanical connection which shows Seller's Intent to make the item a relatively permanenipartof the real estate. 28 Examples of fixtures are doors and cabinets."Personal property'includes items that are not attached to the building(s)or embedded in the land and 29 that are remarablewlthoutdamage tothe real property.Examples of personal property are free-standing(not'built in')appliances and furniture.Buyer 30 and Seller should consider carefully the fixtures and personal property to be included in the sale.For example,a mirror attached to a wall by screws 31 or nails is a fixture,while a mirror hung from a nail or picture hanger Is personal property. 32 A. FIXTURES INCLUDED IN THE SALE.Title to furfures passes to Buyer with the deed. All fixtures except those excluded at B.,below,are 33 included it this sale such as: garden bulbs,plants,shrubs,trees,landscaping,storm windows and Inserts,storm doors and Inserts,screens, 34 awnings,window shades,blinds,curtain-traverse-drapery rods,mirrors,door mirrors,cabinets,counter tops,doors,door hardware,mantels, 35 woodwork,attached lighting fixtures with bulbs,electrical wiring,electric outlets,electric switches,electric outlet plates and switch plates,all plumbing 36 ' and piping,plumbing fixtures,sump pumps,water heaters,heating systems,heating stoves,fireplace Inserts,fireplace doors and screens,built-in 37 humidifiers,built-In air conditioning units,built-In electronic air filters,automatic garage door openers with controls,television antennas,satellite 38 dishes,water softeners,built-in dishwashers,garbage disposals,built-in trash compactors,butt-In ovens and cooking stoves,hood-fans,intercoms, 39 installed ca'peting,built-in work benches,security systems,fences,retaining walls,kennels,gates,survey monuments,culverts,sheds,gazebos, 40 trellises,underground irrigation systems,weathervanes,lightning rods,flagpoles,light poles and lights,outdoor statuary,pumps,mall boxes,mail 41 box posts,and newspaper boxes. 42 B. FIXTURES EXCLUDED FROM THE SALE. The following fixbres are excluded from this sale and will be removed by Seller prior to dosing: 43 44 45 46 47 My damage to the real property that occurs in Sellers removal of these fixtures will be repaired by Seller prior to dosing. 48 The following excluded and removed fixtures will be replaced by Seller with a functional equivalent: 49 50 SI 52 At dosing or prior to closing,Seller shall provide for payment of,satisfaction of,or release of any existing liens,claims,or encumbrances on the fixtures, 53 except for the following encumbrances which Buyer accepts or assumes[list here): 54 53 56 57 C. PERSONAL PROPERTY.My personal property to be purchased by Buyer is listed on the attached Personal Property Agreement. sa 39 5. PRICE AND TERMS.The price for the real property is 60 One Hundred and Fourteen Thousand Nine Hundred Dollars($ 114,900.00 ), 61 which Buyer shall pay as follows: 62 63 Earnest money of$4,900 by[hB1481-t,CHECK,NOT -state which] payable to 64 (select one:) 6s Sella,to be deposited and held by Seller(and may be commingled with Seller's other funds)pending dosing, 66 Seller's lawyer,to be deposited and held In the lawyer's trust account pending closing, - 67 0 Seller's broker,to be deposited or held by broker according to the requirements of Minnesota Statutes, 68 E Othe-[describe how the earnest money will be held)Guaranty Commercial Title 69 receipt of wh ch is hereby acknowledged and$ 110,000 cash,on August 29,2014 the DATE OF CLOSING. 70 and the balance of$ by financing as shown on the attached Financing Addendum. 71 72 6. DEED/MARKETABLE TITLE. 73 A. Upon r erformance by Buyer,Seller shall execute and deliver a Warranty Deed,joined in by spouse,if any, 74 conveying good and marketable title of record,subject to the following Title Exceptions: 73 (1) Building and zoning laws,ordinances,state and federal regulations;and 76 (2) The lien of real property taxes and the lien of special assessments and interest due thereon,if any,payable in the year of closing which by 77 the terms of this Purchase Agreement are to be paid or assumed by Buyer. 7s 79 B. Seller proposes to Buyer that Seller's good and marketable title will be delivered to Buyer at dosing subject to the following title issues: 90 91 [Check(l),if applicable] 82 (1) =Encumbrances,easements,covenants,conditions,restrictions,a declaration(without anassodation),andreservation of mineral rights 83 by the State of Minnesota,as disclosed in M.S.BA Real Property Form No.19,ADDENDUM TO PURCHASE AGREEMENT:TITLE a4 ISSUES(2005),attached as a part of this Purchase Agreement. • M.S.B.A.Real Property Form No.1(1994;Rev.1996;Rev.1997;Rev.2002;Rev.2004;Rev.2005;2007;2006) Minnesota Standard Residential Purchase Agreement PURCHASE AGREEMENT/PAGE 2 of 10 85 [Check(2),if applicable:] 86 (2) =A Declaration of covenants,conditions,and restrictions with an association in a planned community,condominium,or other common 87 interest ownership community,as disclosed In M.S.BA Real Property Form No.12,ADDENDUM TO PURCHASE AGREEMENT: 8s COMMON INTEREST COMMUNITY attached as a part of this Purchase Agreement. 89 90 [Check(3),if applicable:) 91 (3) =The rights of tenantsorotherparties in possession,asdisdosed in M.S.B.A.Real Property Form No.20,ADDENDUM TO PURCHASE 92 AGREEMENT: TENANTS AND PARTIES IN POSSESSION(2005)attached as a part of this Purchase Agreement. 93 • 94 Although Seller has disclosed these title Issues and Buyer has indicated a general willingness to take title subject to these title issues, 95 these title issues are subject to the other provisions of the Purchase Agreement and to an examination of title based upon the Minnesota 96 Title Standards and upon Minnesota law. 97 98 Buyer also reserves the right to evaluate these title issues in the light of Buyer's intended use and enjoyment of the property. Buyer shall have 99 until the end of thepedod for stating Title Objections under Paragraph 14.,of this Purchase Agreement to make the evaluation and determine if too these title issues will affect Buyer's intended use and enjoyment of the property.Except for matters disclosed rawer B.(2),above,and governed tot by the statutory remedies referenced In M.S.B.A.Real Property Form No.12,ADDENDUM TO PURCHASE AGREEMENT:COMMON INTEREST 102 COMMUNITY,If Buyer,In Buyer's sole discretion,determines that these title issues will adversely affect Buyer's intended use and enjoyment of 103 the property,Buyer may declare this Purchase Agreement void by notice to Seller,neither party shall be liable for damages hereunder to the other, 104 and earnest money shall be refunded to Buyer. If the period for stating Title Objections under Paragraph 14.,passes without Buyer's declaring 105 that these title Issues will adversely affect Buyer's intended use and enjoyment of the property,then,subject to Seller's covenant to delivera good 106 and marketable title of record,Buyer shall take title subject to these title issues. (Seller should consider MI disclosure of all title issues to Buyer 107 in this Purchase Agreement or in addenda to this Purchase Agreement. Full disclosure as to the substance of title issues allows Buyer an early 108 opportunity to ensure that this is the right properly forBuyerand to measure the impact on the Buyer's intended use or potential enjoyment of the 109 property In other words,Buyer's consent to take title subject to the existence of title issues must be a fully informed consent. If Buyer is fully 110 informed early,it is less likely that Buyer will elect to void the Agreement) I11 112 7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. 113 A.Prior Years'Delinquent Real Estate Taxes and Delinquent Special Assessments.Delinquent real estate taxes payable in years prior to the 114 year of dosing and delinquent installments of special assessments certified for collection with real estate taxes payable in years prior to the year 115 of dosing,together with penalty,interest and costs,shall be paid by Seller not later than the actual date of closing. 116 117 B.Real Estate Taxes Payable in the Year of Closing. Real estate taxes payable in the year of dosing shall(select from(1)or(2):) its 0 (1) Be prorated between Seller and Buyer(select(a)or(b)) 119 0 f�On a calendar year basis to the actual date of dosing; 120 ni (b)As follows: Seller %; Buyer %; 121 adjusted between Seller and Buyer at dosing,and paid to the county at dosing if then due and Buyer shall assume installments not 122 paid at dosing. 123 0 (2) Not be prorated and the entire year's taxes shall be(select(a)or(b)) 124 1-1 (a) Paid by Seller when due,but not later than dosing, 125 0 (b)Assumed by Buyer,to be paid when due and not later than closing if due prior to closing,and Buyer shall reimburse 126 Seller at dosing for any installments paid by Seger prior to dosing. 127 Seller shall pay penalty,interest and costs on any delinquent installment of taxes and special assessments payable in the year of closing. If 128 dosing is delayed to a later year,real estate taxes payable in the year of dosing shah be prorated between Seller and Buyer on a calendar year 129 basis to the actual date of dosing. 130 131 C.Tax Statements. If tax statements for taxes payable in the year of closing are not available on the Date of Closing,the amount to be used for 132 dosing purposes shall be 100%of the prior year's taxes,and such amount shah be(select one.IMFULL AND FINAL BETWEEN SELLER AND 133 BUYER nADJUSTED UPON RECEIPT OF TAX STATEMENTS FOR SUCH YEAR(in which case the party obligated to pay the adjustment 134 shall pay it to the other party within 30 days of issuance of the tax statements). . 135 136 D.Homestead Classification. Seller represents that,as of the date of this Agreement,the property tax classification is(strike one)homestead 137 dtacoluentastaad.If the property's nonhomestead,Buyer may change the tax dassification for taxes payable in the year following closing by taking 138 possession of the real property as Buyers homestead and filing a new homestead declaration within the time required by law. If the property tax 139 classification in the year of dosing is not homestead,Seller shall pay to Buyer at dosing(select one) 140 MS 0 141 Q the difference(on Buyer's portion of the taxes)between the taxes to the actual Gassification and the taxes that would have been payable 142 under homestead classification. 143 If the property tax classification for taxes payable in the year following dosing is not homestead and,through no fault of Buyer,the dosing takes 144 place after the date by which Buyer must take possession of the real property as Buyer's homestead to file for homestead tax status for taxes payable 145 in such ear,Seller shah pay to Buyer at dosing(select one) 146 (x j$0 147 the difference(on Buyer's portion of the taxes)between the taxes in the actual classification and the taxes that would have been payable 148 under homestead classification. 149 (If Buyer intends to claim the property as Buyer's homestead,Buyer should Be Buyer's homestead declaration as soon as possible after taking 150 possession and occupancy of the property.) 151 152 E.Deferred Real Estate Taxes.fselectone:] I= BUYER Q SELLER shall pay on date of dosing or provide for payment of any deferred 153 real estate taxes(Including"Green Acres"taxes under Minnesota Statutes Section 273.111)payment of which is required as a result of the closing 154 of this sale or the recording of the Deed or Contract for Deed. Provision for payment shall be by payment into escrow of 1.5 times the estimated 155 amount of the assessors reassessment for deferred taxes. 156 157 F.Valuation Exclusions from Assessed Value.Seller warrants and represents that the property(select one:]Qdoes Qdoes not have 158 an exclusion from estimated market value for certain home improvements pursuant to Minnesota Statutes Section 273.11,Subd.16(1997),Such 159 exclusion expires on the sale of the property and will cause the assessed value of the property to increase for property tax purposes.The increase t60 in assessed value will cause the propertytaxes to Increase and might make the property unaffordable for Buyer.If Seller represents that the property 161 does not have an exclusion and an exclusion Is discovered prior to dosing,Buyer may.at Buyers option: • 162 (1) Assume payment of the increased property taxes without adjustment to the purchase price of the real property; 163 (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 164 of closing(such estimated increase shall be obtained from the county assessor or city assessor);or. 165 (3) Rescind this Agreement,in which case all earnest money shah be refunded to Buyer., 166 167 If the exclusion is not discovered until after closing,Seller shall be liable to Buyerfor liquidated damages In the amount that is five times the estimated 168 increase in real estate taxes based on the reassessed value provided that any notice of a daim of breach of warranty must be in writing and must 169 be given by Buyer to Seller within one year of the Date of Closing or be deemed waived. The provisions of this Paragraph F.,shall survive the 170 delivery of the Deed or Contract for Deed. 171 172 G.Certified Special Assessments.All installments of special assessments certified for payment with the real estate taxes payable in the year of 173 closing shall be(select one). 174 0 Prorated between Seller and Buyer on a calendar year basis to the actual date of dosing,adjusted at dosing,and unless otherwise provided 175 in this Purchase Agreement,shall be paid at dosing 176 0 Paid by Buyer at closing 177 0 Paid by Seller at closing 178 0 Assumed by Buyer. 179 iso H.Pending Special Assessments.(select one:jBUYER SHALL ASSUME PAYMENT OF DSELLER SHALL PROViDE FOR PAYMENT 181 OF special assessments pending as of the date of this Purchase Agreement for improvements that have been ordered by the City Council or other 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/PAGE 3 of 10 182 govermenttppl assessing authorities. (Seller's provision for payment shall be by payment Into escrow of 1.5 times the estimated amount of the 183 assessmends.) As of the date of this Purchase Agreement,Seller represents that Seller has not received a Notice of Hearing of a new public 184 improvemer t project from any governmental assessing authority,the costs of which project may be assessed against the real property.If a special 18s assessment becomes pending after the date of this Purchase Agreement and before the Date of Closing,Buyer may,at Buyer's option: 186 (1)Assume payment of the pending special assessment without adjustment to the purchase price of the real property;or, 187 (2) Require Seller to pay the pending special assessment(or escrow for payment of same as provided above)and Buyer shall pay a 188 comrrensurate increase in the purchase price of the real property,which increase shall be the same as the estimated amount of the 189 assessment;or, 190 (3) Rescind this Agreement,in which case all earnest money shall be refunded to Buyer. 191 192 I.Deferred Special Assessments.(select one:]=BUYER/=SELLER shall pay on date of dosing or provide for payment of any deferred 193 special assessments payment of which is required as a result of the closing of this sale or the recording/filing of the Deed or Contract for Deed. 194 Provision fok payment shall be by payment into escrow of 1.5 times the estimated amount of the deferred special assessments. 195 196 J.All Other Levied Special Assessments. (select one:)=BUYER SHALL ASSUME PAYMENT OF/=SELLER SHALL PAY ON DATE 197 OF CLOSII G all other special assessments levied as of the date of this Purchase Agreement,except deferred special assessments(covered at 198 Paragraph iii.1.,above). 199 200 K. Taxes ltd Special Assessments In the Years Following Closing. Buyer shall pay real estate taxes payable in the years following dosing 201 and specialhassessments payable therewith,the payment of which is not otherwise provided herein.Seller makes no representation concerning the 202 amount of future real estate taxes or of future special assessments. 203 204 8. DAMAGED TO REAL PROPERTY. Until completion of closing and delivery of possession,all risk of loss is on Seller. If the real property is zos damaged pri to closing.Seller shall give notice to Buyer within 3 business days after such damage has occurred.The notice shall include Seller's 206 proposal for rpairing the damage.From the date that Buyer receives Seller's notice,Buyer shall have 3 business days to inspect the real property, 207 and an additional 2 business days to determine if the damages and Seller's proposal for repairs are acceptable to Buyer. If Buyer does not accept 208 Seller's propcsais for repairs within the 2 day period,this Agreement Is cancelled and the earnest money shall be refunded to Buyer. 209 210 9.SELLER'S BOUNDARY LINE,ACCESS,RESTRICTIONS AND LIEN WARRANTIES.Seller warrants that buildings,if any.are entirely within the 211 boundary lines of the real property.Seller warrants that there is a right of access to the real property from a public right of way.Seller warrants that 212 there has been no labor or material fumished to the real property for which payment has not been made. Seller warrants that there are no present 213 violations of a ny restrictions relating to the use or improvement of the real property. Seller warrants that the real property is not subject to a lien for 214 Medical Assis Lance or other public assistance. These warranties shall survive the delivery of the Deed or Contract for Deed. 215 216 10.CONDITION OF THE REAL PROPERTY. 217 A. Statutory Disclosure.Pursuant to Minnesota Statutes Sections 513.52-513.60,Seller must provide a written disclosure[see(1)below],or 218 Buyer nust have received an inspection report[see(2)below],or Buyerand Seller may waive the written disclosure requirements[see(3)below]. 219 220 221 Minnesota Statutes Section 513.57,Subd.2.LIABILITY. A seller who fails to make a disclosure as required by sections 513.52 to 513.60 and was aware 222 of ma erial facts pertaining to the real property is liable to the prospective buyer.A person injured by a violation of this section may bring a civil action and 223 recover damages and receive other equitable relief as determined by the court.An action under this subdivision must be commenced within two years after 224 the date on which the prospective buyer closed the purchase or transfer of the real property. 225 226 (Select only one of these three:] 227 2za 0 (1) Seller's Disclosure.Seller has provided a written disclosure to Buyer.A copy of Seller's disclosure Is attached Seller shall correct 229 in writing any inaccuracies In the disclosure as soon as reasonably possible before dosing. 230 231 Minn Sots Statutes Section 513.55.GENERAL DISCLOSURE REQUIREMENTS. 232 Subd vision I.CONTENTS. 233 (a) Before signing an agreement to sell or transfer residential real property,the seller shall make a written disclosure to the prospective buyer. The 234 disclosure must include all material facts of which the seller is aware that could adversely and significantly affect: 235 (I)an ordinary buyer's use and enjoyment of the property;or, 236 (2)any intended use of the property of which the seller is aware. 237 (b)The disclosure must be made in good faith and based upon the best of the seller's knowledge at the time of the disclosure. 238 Minnsota Statutes Section 513.58.AMENDMENT TO DISCLOSURE. 239 Subd vision I.NOTICE.A seller must notify the prospective buyer in writing as soon as reasonably possible,but in any event before closing,if the seller 240 learns that the seller's disclosure required by Section 513.55 was inaccurate. 241 Subd vision 2.FAILURE TONOTTFY;LIABILITY.A seller who fails to notify the prospective buyer of any amendments to the initial disclosure required 242 under subdivision 1 is liable to the prospective buyer as provided in Section 513.57. 243 244 Q (2) Inspection Report Buyer has received an inspection report by a qualified third-party.If a copy of the inspection report Is provided to 245 Seller,Seller shall disclose to Buyer material facts known to Seller that contradict any information In the Inspection report. 246 247 Minnesota Statutes Section 513.56 Subd.3.INSPECTIONS. 248 (a) Except as provided in paragraph(b),a seller is not required to disclose information relating to the real property if a written report that discloses the 249 information has been prepared by a qualified third party and provided to the prospective buyer.For purposes of this paragraph,"qualified third party" 250 means a federal,state,or local governmental agency,or any person whom the seller,or prospective buyer,reasonably believes has the expertise 251 necessary to meet the industry standards of practice for the type of inspection or investigation that has been conducted by the third party in order to 252 prepare the written report. 253 (b) A seller shall disclose to the prospective buyer material facts known by the seller that contradict any information included in a written report under 254 paragraph(a)if a copy of the report is provided to the seller. 255 256 0 (3) Waiver of Disclosure. 257 258 Minnesota Statutes Section 513.60. WAIVER.The written disclosure required under Sections 513.52 to 513.60 may be waived if the seller and the 259 prospective buyer agree in writing.Waiver of the disclosure required under Sections 513.52 to 513.60 does not waive,limit,or abridge any obligation 260 for seller disclosure created by any other law. 26! 262 Seller and B r wai th written disclosure required under Sections 613.52 to 513.60. 263 264 r 265 S ELLER: /C�/ BUYER: 266 , N: an D.Heimdal Kenneth L.Hedberg,Mayor 267 268 269 SELLER: BUYER: 270 Frank Boyles,City Manager 271 NOTICE REGARDING PREDATORY OFFENDERS: Information about the predatory offender registry and persons registered with the registry 272 may be obtained by contacting the local law enforcement agency or by contacting the Minnesota Department of Corrections at 651-361-7200 or 273 at httpJrwww.doc.state.mn.us. 274 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/PAGE 4 of 10 275 B. WELL DISCLOSURE. (Check one of the following:] 276 0 Seller certifies that Seller does not know of any wells on the real property and will so certify on the Deed or Contract for Deed delivered at 277 closing. 278 0 Wells on the real property are disclosed by Seller on the attached M.S.B.A.Real Property Form No.21(2005),Well Disclosure Statement. 279 280 C. SEWAGE TREATMENT SYSTEM DISCLOSURE. 281 (Check either(1)or(2):] 282 n(1).Seller certifies that sewage generated at the property goes to a facility permitted by the Minnesota Pollution Control Agency(for example, 283 a city or municipal sewer system). 284 =32).Seller certifies that sewage generated at the property does not go to a facility permitted by the Minnesota Pollution Control Agency and 285 Seller's Disclosure of Individual Sewage Treatment System Is attached(attach form). 286 (Check either(3)or(4):] 287 s 3).Seller does not know if there Is an abandoned individual sewage treatment system on the property. 288 4).Seller knows that there(strike one:]are/are no abandoned individual sewage treatment systems on the property.If Seller discloses the 289 existence of an abandoned Individual sewage treatment system on the property,then Minnesota law requires that the location of the 290 system be disdosed to Buyer with a map.(Attach Seller's Disclosure of Individual Sewage Treatment System with map completed.] 291 292 D. LEAD PAINT DISCLOSURE. (Check one of the following:] 293 E.Seller represents that the dwelling was constructed on the real property In 1978 or later. 294 x Seller represents that the dwelling was constructed on the real property before 1978. (If such housing Is located on the real property, 295 attached and made a part of this Purchase Agreement is M.S.B.A Real Property Form No.11(1996),LEAD PAINT ADDENDUM FOR 296 HOUSING CONSTRUCTED BEFORE 1978.) 297 298 E. HAZARDOUS SUBSTANCES,PETROLEUM PRODUCTS,AND UNDERGROUND STORAGE TANKS. Seller knows of no hazardous 299 substances or petroleum products having been placed,stored,or released from or on the real property by any person In violation of any law, 300 nor of any underground storage tanks having been located on the real property at any time,except as follows: 301 302 303 304 305 lithe presence of underground storage tanks is disclosed,then this paragraph applies:Seller hereby represents and warrants to Buyer that all 306 of the underground tanks known to Seller on the subject property have been disclosed to Buyer on the attached drawing or map. Seller shall 307 provide at dosing the affidavits required by Minnesota Statutes Sections 1156.16,Subd.2,and 116.48 if applicable to the subject property and 308 record an affidavit attesting to the location of any underground tanks which are used for the storage of petroleum products. 309 310 F. PROTECTED SITES. Seller has no knowledge that the property has any conditions that are protected by federal or state law(such as American 311 Indian burial grounds,other human burial grounds,ceremonial earthworks,historical structures or materials,or archeological sites). (Check 312 the box if the following provision applies to this Purchase Agreement:]=ADDENDUM TO PURCHASE AGREEMENT:CONTINGENCIES 313 FOR SURVEY,APPRAISAL,DEVELOPMENT EVALUATION,AND ARCHEOLOGICAL f HISTORICAL SURVEY,M.S.B.A.Real Property 314 Form No.17(2005),Is included as an addendum to this Purchase Agreement. 315 316 G. DISEASED TREES. Seller has not received any notice from any governmental authority as to the existence of,and Seller has no knowledge 317 of,any Dutch elm disease,oak wilt,or other disease of any trees on the real property. 318 319 H. MECHANICAL SYSTEMS. Seller represents that all fixtures,heating and air conditioning equipment,fireplaces(including mechanisms, 320 dampers,flues,and doors),wiring,and plumbing used and located on the real property will be in working order on the Date of Closing.For the 321 purposes of this Purchase Agreement,'In working order means that the item functions for the purpose that It Is Intended to perform,that Itis 322 not in violation of any public codes or regulations(although it may be legally nonconforming under current law),that it does not presently need 323 replacement,cleaning,repairs or service,that it is not missing any essential parts,and that its only imperfections are"cosmetic"or signs of"wear 324 and tear associated with a product of Its age. 325 326 I. WET BASEMENT. Seller(strike one] has/has not had a wet basement. 327 328 J. ROOF. Seller(strike one]has/has not had a leaky roof. 329 330 K. UTILITIES CONNECTIONS. Seller represents that the property is connected to: 331 city sewer(strike one] YES OQIO; city water(strike one] YES 0000; cable communications (strike one]YES MO 332 333 L. CLEAN CONDITIONS.Seller shall remove all debris,trash,rubbish,garbage,rubble,and yard waste from the land before the possession date. 334 Seller shall remove all trash,garbage,and miscellaneous discarded materials from the buildings,and shall leave the buildings In"broom clean' 335 condition before the possession dale.Seller shall remove all personal property not induded In this sale from the real property before possession 336 date. 337 338 M. BUYER'S INSPECTIONS. Buyer may have inspections of the property conducted prior to closing. (Check the box if the following provision 339 applies to this Purchase Agreement:] 0 ADDENDUM TO PURCHASE AGREEMENT:BUYER'S HOME INSPECTION CONTINGENCY, 340 M.S.B.A.Real Property Form No.18 (2005),is included as an addendum to this Purchase Agreement 341 342 N. METHAMPHETAMINE DISCLOSURE. (Check only one box,either(1)or(2).] 343 x (1) To the best of Seller's knowledge,methamphetamine production has not occurred on the property. 344 (2) To the best of Sellers knowledge,methamphetamine production has occurred on the property and Sellers disclosure is continued 345 in Part B.,METHAMPHETAMINE DISCLOSURE STATEMENT,M.S.B.A.Real Property Form No.22(2005),included as an 346 addendum to this Purchase Agreement. 347 348 0. NOTICE OF AIRPORT ZONING REGULATIONS.If airport zoning regulations affect this real property,a copy of those airport zoning regulations 349 as adopted can be viewed or obtained at the office of the county recorder where the zoned area is located. 350 351 P. WARRANTIES SURVIVE CLOSING. Seller's warranties and representations contained in this Paragraph 10.,shall survive the delivery of the 352 Deed or Contract for Deed. 353 354 This Paragraph 10.,shall not change or affect any rights that Buyer might have under the Uniform Commercial Code[Minnesota Statutes Section336.2- 355 312],or under Minnesota's°Prevention of Consumer Fraud Act'[Minnesota Statutes Sections 325F.68—.70],or under Minnesota's'Homeowners 356 Warranty Act"[Minnesota Statutes Chapter 327A];nor shall it predude Seller's liability for an action for fraud,negligent misrepresentation,or other 357 actions allowed by law[Minnesota Statutes Section 513.57.] 358 359 11.DISCLOSURE OF NOTICES.Seller has not received any notice from any governmental authority as to violation of any law,ordinance or regulation 360 affecting the real property.If the real property is subject to restrictive covenants,Seller has not received any notice from any person as to a breach 361 of the covenants. Seller has not received any notice from any governmental authority concerning any eminent domain,condemnation,special taxing 362 district,or rezoning proceedings.Seller's representations contained in this Paragraph 11.,shall survive the delivery of the Deed or Contract for Deed. 363 364 365 12. TRUTH-IN-HOUSING. Buyer acknowledges receipt of the Truth-in-Housing Disclosure Report or other inspection report if required by the 366 municipality in which the real property Is located. 367 368 13. POSSESSION. Seller shall deliver possession of the property not later than the date of closing. 369 All interest,fuel oil,liquid petroleum gas,and all charges for city water,city sewer,electricity.and natural gas shall be prorated between the parties 370 as of the closing date M.S.B.A.R=al Property Form No.1(1994;Rev.1996;Rev.1997;Rev.2002;Rev.2004;Rev.2005;2007;2008) Minnesota •tandard Residential Purchase Agreement PURCHASE AGREEMENT/PAGE 5 of 10 371 14.TITLE. 372 A.ABS CT AND EXAMINATION OF TITLE.To demonstrate that Seller's title is good and marketable of record,within a reasonable time after 373 acceptance.fthisPurchaseAgreement,SellershallfurnishBuyerwithanAbstractofTlde[seeB.,below]ore Registered Property Abstract certified 374 to date ind •ing proper searches covering bankruptcies and state and federal judgments,federal court judgment liens in favor of the U.S., liens, 375 and levied a d pending special assessments.Buyer shall have ten business days after receipt of the Abstract of Title or Registered Property Abstract 376 either to ha -Buyer's lawyer examine the title end provide Seller with written Title Objections or,at Buyer's own expense,to make an application 377 for a title ins rance polIcy and notify Seller of the application.Buyer shall have ten business days after receipt of the Cornntitnientforlitle Insurance 378 to provide S-Her with a copy of the Commitment and written Title Objections.Buyer shall be deemed to have waived any Title Objections not made 379 within the t day period above,except that this shall not operate as a waiver of Seller's covenant to deliver a statutory Warranty Deed,unless a 380 Warranty D ed Is not specified above.If Buyer obtains title insurance,Buyer is not waiving the right to obtain a good and marketable title of record 381 from Seller. 382 For the p rposes of this Agreement,an'Objection to Title'or'Title Objection°is some title matter which falls to pass a title examination based 383 upon Mime-ota law and the Minnesota Title Standards promulgated by the Real Property Section of the Minnesota State Bar Association thereby 384 rendering e title unmarketable and is a title matter which requires a remedial response by the Seller prior to or at closing. 385 An'Exce•tion to Title'or"Title Exception'is some title matter which passes a title examination based upon Minnesota law and the Minnesota Title 386 Standards; generally regarded by title examiners as not rendering the title unmarketable end,which,because of its nature,is generally disclosed 387 by title exa iners to the recipient of the title opinion or title Insurance commitment. 388 389 B. ABS -• CT LOST OR UNAVAILABLE: TITLE INSURANCE BY SELLER. If Seller is unable to find the Abstract of Title or if Seller did not 390 receive an'• ract of Title when Seller purchased the Property,then,to demonstrate that Seller's title is insurable for marketability and subject to 391 only those atters disclosed at Paragraph 6.,above,within a reasonable time after acceptance of this Agreement,Serer shall furnish Buyer with 392 a Commitm nt for Title Insurance including proper searches covering bankruptcies and state and federal judgments,federal court judgment liens 393 in favor of e U.S., liens,and levied and pending special assessments. (Seller.see Advisory below)The Commitment shall be obtained from 394 (select one.' 395 x Th-title insurer of Buyer's choice;or, 396 MU Th:same title insurer that Issued title insurance to Seller so that Seller may obtain a reissue credit from the insurer. 397 The Comm ent shall contain the insurer's requirements for deleting these exceptions in the owner's policy(except for those matters accepted by 391 Buyer in thi Agreement): 399 (1) Rightor claims of parties in possession,not shown by the public records 400 (2) Ease ants,or claims of easements,not shown by the public records: 401 (3) Disci'pancies,conflicts in boundary lines,shortage in area,encroachments,and any facts which a correct survey and inspection of the 402 prem ses would disclose and which are not shown by the public records:and, 403 (4) Any I'n.or right to a lien,for services,labor or material furnished,imposed by law and not shown by the public records. 404 Seller shall.rovide to Buyer and to the title insurer all documents[except a survey,unless Seller is required by other provisions of this Agreement 405 to provide:survey]necessary to enable the title insurer to delete these exceptions from the owner's policy of title insurance. Buyer shall have ten 406 business d ys after receipt of the Commitment for Title Insurance td provide Sellerwith a copy of the Commitment and written Title Objections.Buyer 407 shall be de med to have waived any Title Objections not made within the ten day period above,except that this shall not operate as a waiver of 408 Sellers co -nant to deliver a statutory Warranty Deed,unless a Warranty Deed is not specified above.By agreeing to receive title insurance in lieu 409 of an Ab :d,Buyer is not waiving the right to obtain a good and marketable title of record from Seller.(Buyer.see Advisory below.) 410 Select on of the following: 411 0 Th Commitment shall be accompanied by,at Seller's expense,the insurer's agreement(orthe separate agreement of a Minnesota-licensed 412 ab trader)to provide Buyer with an Abstract of Title at any time in the future.The abstract to be provided shall be at no cost to Buyer for 413 all=bstracting through the date of recording of the Instrument of conveyance contemplated by this Purchase Agreement. Seller shall pay 414 all.•mmitment,abstracting,examination,searches,and title insurance costs,including the premium for the owner's policy and excluding 415 th=premium for the lender's policies. 416 0 Th=Commitment will not include the insurers or abstracter's agreement to provide Buyer with an Abstract of Title at any time at no cost to 417 B er.Seller shall pay all commitment,abstracting,examination,searches,and title insurance costs Including the premiums for the owner's 418 an the lender's policy. 419 ADVISOR TO SELLER You should consult with your lawyer about the comparative costs of paying an abstract company to produce a 420 new Abs• ct of Title versus paying the Buyer's title insurance costs..In many Minnesota counties,It Is less expensive to obtain a new 421 Abstract 422 ADVISOR TO BUYER:.You should Consult with your lawyer about the relative merits of receiving an Abstract of Title versus receiving 423 a title Insu .nce policy.As a future sellerof the same property,you likely will be asked to give your buyer an Abstract If your Seller does. 424 not obtain the title insurance endorsement for future production of an-Abstract,you might be facing a large expense when you sell. 425 426 15.TITLE C r:RRECTIONS AND REMEDIES.Sellershall have a limited time,from receipt of Buyers written Title Objections,to make title marketable. 427 Upon receipt•f Buyer's Title Objections,Seller shall,within ten business days,give Notice to Buyer of Sellers intention to make title marketable within 428 the title-clea ng cure period selected in C.(1)or C.(2)below. Liens or encumbrances for liquidated amounts which can be released by payment or 429 escrow from roceeds of closing shall not delay the dosing.Cure of the defects by Seller shall be reasonable,diligent,and prompt.Pending correction 430 of title,all pa ents required herein and the dosing shall be postponed. 431 432 As an altem:tive to making title good and marketable of record,Seller may,within the ten day Notice period,make a written,dated offer to Buyer to 433 obtain title i surance for Buyer with insuring provisions acceptable to Buyer(and,if applicable,Buyer's lender),as follows: 434 • Seller y procure,at Seller's expense,an owner's policy of title Insurance,from an insurer registered and licensed to do business In Minnesota 435 and a -ptable to Buyer,specifically insuring over the Title Objections;or, 436 • If the tie Objections are stated in a title insurance commitment which Buyer has obtained,Seller may provide the insurer with such documents 437 end e "•ws as are necessary to allow the insurer to specifically insure over the Title Objections and agree to pay all of the insurer's charges 438 for iss ing the owner's policy to Buyer.' 439 Under either•f these title insuring alternatives,"at Seller's expense"and"pay all of the insurer's charges'mean that Seller will pay all title insurance 440 commitment:nd policy premium charges,search charges,plat drawing fees,and any other charge by the insurer to issue the owner's policy,but not 441 the premium or a lender's policy,if any.If Buyer accepts Seller's offer of en insurable title,then in this Purchase Agreement,"making title marketable' 442 shall mean aking title insurable,'In the manner described above. Buyer is under no obligation to accept Seller's offer of an Insurable title in lieu 443 of a good an.marketable title of record,but,if Buyer does not reject Sellers offer of an insurable title within three(3)business days of receiving Seller's 444 offer,Buyer ail be deemed to have accepted Sellers offer of an Insurable title. If Buyer rejects Seller's offer to make title insurable,Seller shall then 445 make title go•d and marketable of record and shall be subject to the provisions of this agreement for failure to timely present good and marketable 446 title of recd 447 A. If Not is given and Seller makes title marketable,then upon presentation to Buyer and proposed lender of documentation establishing that 448 title he.been made marketable,and if not objected to in writing and within 5 business days of receipt of Seller's documentation,the closing shall 449 take• ce within ten business days or on the scheduled closing date,whichever is later. 450 B. If Sell does not give Notice of intention to make title marketable within ten business days after receipt of Buyer's Title Objections,this Purchase 451 Agree ent is canceled and the earnest money shall be refunded to Buyer. 452 C. Selec on of Title-Clearing Cure Period. (C.(1)and C.(2)are alternative remedies. ONLY ONE OF THEM CAN APPLY FOR THIS 453 PUR ASE AGREEMENT.If either party cannot endure more than a 30 to 45 day delay for the closing,select C.(1).If both parties can 454 endu a longer delay for the closing,select C.(2).SELECT ONLY C.(1)OR C.(2).J IF THE PARTIES DO NOT SELECT C.(1)OR C.(2), 455 BY C ECKING ONE OF THE BOXES BELOW,THEN C.(1)AUTOMATICALLY APPLIES ASATERM FORTH'S PURCHASE AGREEMENT. 456 Q .(1)Is selected as a remedy for this Purchase Agreement. 457 (1) .eller shall have 30 days from receipt of Buyer's written Title Objections or until the Date of Closing,whichever date Is later,to make title 458 arketable. If Notice Is given but the stated period expires without title being made marketable,Buyer may: 459 a) Cancel this Purchase Agreement by notice to Seller pursuant to Minnesota Statutes Section 559.217,Subd.3(allowing Seller a 15 460 day right to cure)and neither party shall be liable for damages hereunder to the other,and the earnest money shall be refunded to 461 Buyer;or, 462 b) Elect to take title subject to some or all of the Title Objections. 463 Q .(2)is selected as a remedy for this Purchase Agreement. 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/PAGE 6 of 10 464 (2) Seller shall have(select one) 60 /BOc/128 days from receipt of Buyer's written Title Objections or until the Date of Closing,whichever 465 date is later,to make title marketable If Notice is given but the stated period expires without title being made marketable,Buyer may seek, 466 as permitted by law,one or more of the following: 467 (a) Proceed to closing without waiver or merger In the Deed of the Title Objections and without waiver of any remedies,and may: 468 (i) Seek damages,costs,and reasonable lawyer's fees from Seller as permitted by law(damages under this subparagraph(i)shall 469 be limited to the cost of curing Title Objections,and consequential damages are excluded);or 470 (ii) Undertake proceedings to correct the Title Objections; 471 (b) Rescission of this Purchase Agreement by notice to Seller,in which case all earnest money paid shall be refunded to Buyer, 472 (c) Damages from Seller together with costs and reasonable lawyer's fees,as permitted by law 473 (d) Specific performance within six months after such right of action arises,Including costs and reasonable lawyers fees; 474 (e) Cancellation of this Purchase Agreement pursuant to Minnesota Statutes Section 559.217,Subd.3(allowing Seller a 15 day right to 475 cure). 476 D. If title is marketable,or Is made marketable as provided herein,and Buyer defaults in any of the agreements herein,Seller may elect either of 477 the following options,as permitted by law: 478 (1) Cancel this Purchase Agreement pursuant to either Minnesota Statutes Section 559.21 or Section 559.217,Subd.3,and retain all payments 479 made hereunder as liquidated damages. (Note: Under federal law,Seller might not be able to legally claim or retain the earnest money 480 underpurchase agreements where Buyerapplies for but is unable to secure F,H.A.orD.V.A.mortgage ffnancing.J The parkas acknowledge 481 their intention that any note given pursuant to this contract is a down payment note,and may be presented for payment notwithstanding 482 cancellation; 483 (2) Seek specific performance within six months after such right of action arises,including costs and reasonable lawyer's fees,as permitted by 484 law. 485 E. If title is marketable,or is made marketable as provided herein,and Seller defaults in any of the agreements herein,Buyer may,as permitted 486 by law: 487 (1) Seek damages from Seller including costs and reasonable lawyer's fees; 488 (2) Seek specific performance within six months after such right of action arises,including costs and reasonable lawyers fees; 489 (3) Cancel this Purchase Agreement pursuant to Minnesota Statutes Section 559.217,Subd.3(allowing Seller a 15 day right to cure)and neither 490 party shall be liable for damages hereunder to the other,and the earnest money shall be refunded to Buyer. 491 492 NOTE: If this Purchase Agreement is canceled using Minnesota Statutes Section 559.217,contract provisions and statutory provisions for 493 refunding of the earnest money to Buyer might be In conflict 494 493 16. NOTICES.All notices required herein shall be in writing and delivered personally or mailed to the address as shown at Paragraph 1 above and, 496 if mailed,are effective as of the date of mailing. 497 498 17.SUBDIVISION OF LAND.If this sale constitutes or requires a subdivision of land owned by Seller,Seller shall pay all subdivision expenses and 499 obtain all necessary govemmental approvals.Seller warrants that the legal description of the real property to be conveyed has been orwill be approved 500 for recording as of the Date of Closing. 501 sot 18. MINNESOTA LAW.This contract shall be governed by the laws of the State of Minnesota. 503 504 19.WETLANDS,SHORELAND,AND FLOOD PLAIN CONCERNS.Unless disclosed as"a material fact'that could adversely and significantly affect nos buyers use and enjoyment of the Property or any intended use of the Property,current law does not require Seller to disclose Seller's knowledge,if 506 any,of the existence of wetlands,shoreland,orflood plain on or affecting the real property.If Buyer has not already investigated these concems,Buyer 507 might want to include Seller's disclosures regarding these concerns.(Check the box if the following provision applies to this Purchase Agreement:] sot 0 ADDENDUM TO PURCHASE AGREEMENT:WETLANDS,SHORELAND AND FLOOD PLAIN DISCLOSURE,M.S.B.A.Real Property Form 509 No.8(1997),is included as an addendum to this Purchase Agreement. 510 511 20. SELLER'S AFFIDAVIT. At closing,Seller shall supplement the warranties and representations in this Purchase Agreement by executing and 512 delivering a Minnesota Uniform Conveyancing Blank[Form No.50.1.2(formerly 116-M)or 50.1.3(formerly 117-M or 118-M)]Affidavit of Seller.Sellers 513 Affidavit shall include Seller's representation that no encumbrances have been placed on the property since the date of this Purchase Agreement. 514 515 21. CLOSING. Closing shall be at the office of Sellers lawyer,Buyer's title insurer,or at some other mutually agreeable location. 516 517 (State other location:) 518 At closing,Seller and Buyer shall disclose their Social Security Numbers or Federal Tax Identification Numbers for the purposes of completing state 519 and federal tax forms. 520 521 CLOSING COSTS.The costs of dosing,if not determined by other provisions of this Agreement,shall be paid as follows. 522 A. SELLER'S COSTS. Seller shall pay the following at closing: 523 1. Document preparation costs,recording fees,and deed taxes for documents necessary to establish good and marketable title in Seller. 524 2. Document preparation costs,certified copy fees,and recording fees to establish the authority of the person acting on behalf of Seller. 525 3. Document preparation costs for Sellers deed or contract-for-deed,Certificate of Real Estate Value,Seller's affidavit,Well Disclosure 526 Certificate(if required),and any other documents necessary to transfer good and marketable title by Seller's deed or contract-for-deed. 527 4. Deed tax on Seller's deed and the Agricultural Conservation deed tax charged under Minnesota Statutes Section 40A.152. 528 5. Fees payable to Seller's lawyer or to a doser["title closer']for conducting the title-transfer portion of the closing. If Seller is not providing 529 a lawyer or title closer for the title-transfer portion of the closing and if Buyer is obtaining new mortgage financing and the closers fee is not 530 separated into a'title dosing fee'and a loan closing fee,'then Seller shall pay one half of the closers fee or$ ,whichever 531 amount Is less. 532 6. And also the following costs: 533 534 535 536 537 538 539 540 541 B. BUYER'S COSTS. Buyer shall pay the following at dosing: 542 1. Document preparation costs,recording fees,and mortgage registry taxes for documents necessary for Buyer's mortgage financing. 543 2. Document filing fee for a Well Disclosure Certificate,if applicable. 544 3. The Agricultural Conservation deed tax on Buyer's mortgage deed charged under Minnesota Statutes Section 40A.152. 545 4. Loan closers fee. 546 5. Recording fee for Deed,Contract for Deed,or other instrument of conveyance where Buyer is the grantee. 547 6. Md also the following costs: 348 549 550 551 552 553 554 535 22.ADDITIONAL TERMS. 556 557 558 559 560 M.S.B.A.R-al Property Form No.1(1994;Rev.1996;Rev.1997;Rev.2002;Rev.2004;Rev.2005;2007;2008) Minnesota .tandard Residential Purchase Agreement PURCHASE AGREEMENT/PAGE 7 of 10 561 562 563 564 565 566 567 (Drafter cons der issues of assignment and of succession-in-interest.) 568 569 23.ADDEN• Attached are the following addenda which are made a part of this Purchase Agreement: (Check only those that are attached.) 570 571 FINANCING ..eled only one financing addendum:] 572 — Financ ng Addendum for Conventional/Privately Insured Mortgage,M.S.B.A.Real Property Form No.2(2008) 573 — Financ ng Addendum for FHA Insured Mortgage,M.S.B.A.Real Property Form No.3(2008) 574 _ Financ ng Addendum for VA Insured Mortgage,M.S.BA.Real Properly Form No.4(2008) 575 _ Financ ng Addendum for Seller Mortgage,M.S.BA Real Property Form No.5(2005) 576 Financ ng Addendum for Contract for Deed,M.S.BA Real Property Form No.6(2005) 577 Financ ng Addendum for Assumption,M.S.BA Real Property Form No.7(2005) 578 579 580DISCLOSU- AND CONTINGENCY: 581 Adden um to Purchase Agreement:Wetlands,Shoreland,and Flood Plain Disclosure,M.S.BA Real Property Form No.8(1997) 582 Adden m for Contingent Sale or Purchase of Other Home(s),M.S.BA Real Property Form No.9(1997) 583 X Lead P Int Addendum for Housing Constructed Before 1978,M.S.BA Real Property Form No.11(1996) 504 Disclo-ure of Sewage Treatment System,M.S.B.A.Real Property Form No.14(1998) 385 Condit on of Property,M.S.BA Real Property Form No.16(2005) 586 Adden um to Purchase Agreement Survey,Appraisal,Development Evaluation,and Archeological/Historical Survey,M.S.BA Real 587 Prope. Form No.17(2005) 58s Buyer: Home Inspection Contingency,M.S.BA.Real Property Form No.18(2005) 589 Well D:closure Statement,M.S.B.A.Real Property Form No.21(2005) 590 Meths phetamine Disclosure Statement,M.S.B.A Real Property Form No.22(2005) 591 592 TITLE ISSU 593 Adde •urn to Purchase Agreement:Title Issues,M.S.BA Real Property Form No.19(2005) 394 Adde••um to Purchase Agreement:Tenants and Parties in Possession,M.S.B.A.Real Property Form No.20(2005) 595 596 COMMON 1 REST COMMUNITY: 597 0 Adden'um to Purchase Agreement: Common Interest Community,M.S.BA Real Property Form No.12(2004) 598 599 Others: 600 601 602 603 604 605 24.TIME IS OF THE ESSENCE.Time is of the essence for all provisions of this Purchase Agreement. 606 607 25. MULTIPLE ORIGINALS. Seller and Buyer have signed(number] originals of this Purchase Agreement. 064 610 THIS ISA.EGALLY BINDING CONTRACT. BEFORE SIGNING.CONSULT A LAWYER. Minnesota law permits licensed real estate 611 brokers and sales agents to prepare purchase agreements. No recommendation or representation may be made by any real estate 612 broker or sales agent as to the legal sufficiency,the legal effect,or the tax consequences of this contract These are questions for 613 your lawyer. I agree to sell the property for the price and terms and conditions set forth I agree to purchase the property for the price and terms and conditions above. set forth above. SELLER: af BUYER: Na ha .Hei al (date) Kenneth L.Hedberg,Mayor (date) SELLER: BUYER: (date) Frank Boyles,City Manager (date) This Purchase Agreement was prepared by: 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/PAGE 8 of 10 Others who will assist Seller or Buyer with this transaction: Lawyer for Telephone: Facsimile: Listing Agent and Broker for this transaction are: Telephone: Facsimile: Selling Agent and Broker for this transaction are: Telephone: Facsimile: Buyers or Lenders Title Insurer. Telephone: Facsimile: 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 I PAGE 9 of 10 PERSONAL PROPERTY AGREEMENT 1 This Personal Property Agreement is a supplement to the Purchase Agreement to which it is attached.Seller's obligation to transfertitle to the personal 2 property is contingent upon a successful dosing and transfer of the real property title to Buyer according to the terms of the foregoing Purchase 3 Agreement. 4 5 A. PERSONAL PROPERTY INCLUDED IN THE SALE PRICE OF THE REAL PROPERTY.These items of personal property are Included in the 6 price shown for the real property in the foregoing Purchase Agreement. 7 B 9 10 11 12 13 14 B. PERSON AL PROPERTY PURCHASED SEPARATELY.The following items of personal property owned by Seller and currently located on the 15 real props rty shall be purchased by Buyer at the price shown for each item.These Items are not included in the price shown for the real property 16 in the foregoing Purchase Agreement and shall be paid for at dosing. 17 18 price: 19 price: 20 price: 21 Price: 22 Price: 23 price: 24 price: 25 price: 26 price: • 27 price: 28 price: 29 price: 30 Pmce: 31 price: 32 Drice: 33 price: 34 price: 35 price: 36 TOTAL PRICE: 37 38 (Select only one of the following:] 39 Euyer will accept the property'as is'in its condition at the time of dosing. 40 Seller warrants that these items of personal property will be in working order on the day of dosing. 41 For the purposes of this Personal Property Agreement,"in working order means that the item functions for the purpose that it is Intended to perform, 42 that it is not in violation of any public codes or regulations(although it may be legally nonconforming under current law),that it does not presently need 43 replacement,cleaning,repairs or service,that it is not missing any essential parts,and that Its only imperfections are"cosmetic'orsigns of"wear and 44 tear assodaied with a product of its age. Seller's warranties and representations contained in this Personal Property Agreement shall survive the 45 delivery of the Deed or Contract for Deed and any Bill of Sale for the personal properly.Any notice of a defect or claim of breach of warranty as to 46 "in working order must be in writing and must be given by Buyer to Seller within 30 days of the Date of Possession or be deemed waived. 47 Title to personal properly passes to Buyer by a bill of sate.Upon delivery of the Deed.Seller shall deliver a Bit of Sale containing warranties of title 48 for the above personal property. Seller shall use M.S.B.A.Real Property Form No. 90(2005),Warranty Bill of Sale or a similar form containing the 49 following waranties of title:'Seller warrants that:Seller is the owner of the personal property described above;the personal property is free from all so liens,claims and encumbrances(except as listed above);and that Seller has the right to sell and transfer title to and possession of the personal 51 property to Buyer.Seller warrants and shall defend Buyer's title to the personal property against any and all persons who claim any Interest through 52 Seller's interEst In the personal property described above,subject only to the liens,daims and encumbrances listed above."These warranties are 53 not intended to change or limit the warranties of Minnesota Statutes Section 3382-312 or to alter the remedies available to Buyer under Minnesota 54 Statutes Sections 325F.68-.70. 55 56 At dosing or prior to dosing,Seller shall provide for payment of,satisfaction of,or release of any existing liens,claims,or encumbrances on the 57 personal property,except for the following encumbrances which Buyer accepts or assumes gist here]: 58 59 60 63 64 67 68 69 70 71 72 73 74 75 76 77 78 BO This supplement pa a's'nitialed contemporaneously with the signing of the Purchase Agreement. INITIALS: Sellers Buyers 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!PAGE 10 of 10 Supplemental Page M.S.B.A.Real Property Form No.11(1996;2008) Lead Paint',ddendum for Housing Constructed Before 1978 Page 1 of 2 LEAD PAINT ADDENDUM FOR HOUSING CONSTRUCTED BEFORE 1978 ©Copyright 2008 Minnesota State BarAssociation,Minneapolis,Minnesota.(Use only vith`Minnesota Standard Residential Purchase Agreement,'Minnesota State Bar Associ:lion 2008.) This addendum is a continuation of the Purchase Agreement dated -by and 2 betweer Nathan D.Heimdal ,as Sellers,and 3 the City of Prior Lake ,as Buyers, 4 for property located at or described as 4577 Colorado St SE,Prior Lake,MN 55372 5 6 7 LEAD WARNING STATEMENT 8 9 Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that 10 such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead 11 poisoning.Lead poisoning in young children may produce permanent neurological damage,including learning disabilities,reduced 12 intelligence quotient,behavioral problems,and impaired memory. Lead poisoning also poses a particular risk to pregnant women. 13 The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint 14 N.,hazards from risk assessments or inspections in the seller's possession and notify the buyer of any known lead-based paint 15 hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase. 16 17 LEAD PAINT INSPECTION CONTINGENCY 18 19 Buyer shall have 10 days from the signing of this Agreement to conduct a risk assessment or inspection for the presence of lead- 20 based pa int and lead-based paint hazards and to give seller the inspection or risk assessment report and a list of repairs required 21 by buyer to correct problems set out In the report. (Intact lead-based paint that Is in good condition is not necessarily a hazard. 22 See EPA pamphlet Protect Your Family From Lead in Your Home for more information.) 23 24 If the report discloses problems seller shall have seven(7)days after receipt of the report and list to elect in writing whether to 25 correct the problems prior to dosing. 26 27 If seller elects to make the corrections,seller shall provide buyer prior to dosing with certification from a risk assessor or inspection 28 demonstrating that the problems have been corrected. 29 30 If seller c oes not elect to make the corrections,buyer shall have three(3)days to elect to take the property in its'as is"condition as 31 to problems set out in the report,or this purchase agreement is void. 32 33 Buyer may waive in writing the rights contained in this contingency at any time. 34 35 Seller's Disclosure 36 (a) Presence of lead-based paint or lead-based paint hazards(check(i)or(ii)below): 37 38 (i) Q lead-based paint or lead-based paint hazards are present in the housing(explain:) 39 40 41 42 (ii) Q Seller has no knowledge of lead-based paint or lead-based paint hazards in the housing. 43 44 (b) Records and reports available to seller(check(i)or(ii)below): 45 (I) n Seller has provided buyer with all records and reports in seller's possession or reasonably obtainable 46 by seller pertaining to lead-based paint and lead-based paint hazards in the housing(list documents 47 below). 48 49 50 (ii) n Seller has no reports or records pertaining to lead-based paint or lead-based paint hazards in the 51 housing. 52 53 Buyer's Acknowledgment(initial) 54 55 (c) _ Buyer has received copies of all information listed at(b)(i)above. 56 57 (d) _ Buyer has received the pamphlet,Protect Your Family from Lead in Your Home,an EPA publication 58 available at www,epa.00v/lead/oubs/leadpdfe.odf. 59 (e) __ Buyer has(check(i)or(ii)below): 60 61 (i) __ received a 10-day opportunity(or mutually agreed upon period)to conduct a risk 62 assessment or Inspection for the presence of lead-based paint and lead-based paint hazards; 63 Of, 64 (i) -- waives the opportunity to conduct a risk assessment or inspection for the presence of lead- 65 based paint and lead-based paint hazards. 66 Agent's Acknowledgment(initial) . 67 68 (f) Agent has informed seller of seller's obligations under 42 U.S.C.4852d and is aware of agents responsibility to 69 ensure compliance. 70 71 Certifi tion of Accuracy 72 The foil wing parties have reviewed the information above and certify,to the best of their knowledge,that the information they have 73 provide is true nd ur Seller athan D. eimdal date Purchaser Kenneth L.Hedberg,Mayor date Seller date Purchaser Frank Boyles,City Manager date Listing broker/agent date Selling broker/agent date f LEAD PAINT ADDENDUM FOR LIDUnING CONSTRUCTED BEFORE 1978 Page 2 i•A RELOCATION BENEFIT AGREEEMNT THIS RELOCATION BENEFIT AGREEMENT is made as of the ) day of Sian , 2014 by Nathan D. Heimdal ("Seller") and the City of Prior Lake, a Minnesota municipal corporation("Buyer"). RECITALS WHEREAS, Seller and Buyer entered into that certain Purchase Agreement dated (hereinafter "Purchase Agreement") regarding real property legally described as: The East 50 feet of Lot 14, Block 15 of the Plat of Prior Lake Original Townsite, Scott County,Minnesota(hereinafter as the"Real Property"); WHEREAS, under Minnesota Statute § 117.52, Seller may be eligible for relocation assistance, services, payments and benefits as described in the Uniform Relocation Assistance and Real Property Acquisition Policies Act,42 U.S.C. § § 4601-4655: WHEREAS, Seller has entered into a residential lease in regards to the Real Property and as such has no personal property located on the Real Property and no moving or replacement expenses related to the sale. Seller is eligible for payments to relocate business property located on the Real Property; WHEREAS, Buyer has agreed to pay Seller$114,900 for purchase of the Real Property ("Purchase Price") and for all relocation assistance, services, payments and benefits for which Seller is eligible;and WHEREAS, Seller has executed this Agreement voluntarily, is not under any threat of acquisition by eminent domain by Buyer and Buyer has explained the contents thereof to Seller. NOW, THEREFORE, The following hereby acknowledge, the parties individually and collectively agree as follows: 1. Seller agrees that the Purchase Price includes all relocation assistance, services, payments and benefits for which the Seller is eligible under Minnesota statute. Seller has executed this Agreement as of the date first written above. SELLER: BUYER: Nathan D. Heimdal City of Prior Lake i 1 Kenneth L. Hedberg, Mayor Frank Boyles, City Manager 1