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Home My WebLink About8B - Brooksville Center 1st Addition CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: October 4, 1999 ^"'~ =~ank Boyles, City Manag~rBY CONSIDER APPROVAL OF RESOLUTION 99-XX AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE A PURCHASE AGREEMENT FOR THE SALE OF LOT 2, BLOCK 3, BROOKSVILLE CENTER 1ST ADDITION. AGENDA ITEM: DISCUSSION: History The City acquired this 2.4 acre parcel on July 6, 1983 primarily for right-of-way purposes for Toronto Avenue. The City used the westerly 80 feet of the parcel for roadway, leaving the remainder of the property (1.7 acres) as excess to the City's needs. The 1.7 acre parcel is zoned R-4 which has a density up to 30 units per acre. In March of 1998, the City Council by Resolution 98-28 (attached) approved the disposal of this property and directed the staff to obtain a survey and appraisal in order to proceed with property subdivision. An appraisal was obtained as was a survey (see attachment to July 20, 1998 agenda report). Bids were solicited and the Council rejected all bids because they were only 55% of the appraised value. At the July 20, 1998 meeting, the Council also directed that the City Manager negotiate the sale of the property. Current Circumstances Proposals for the property were solicited earlier this year. Two bids were received. The first bid submitted by Mike Falk representing Weston Real Estate in the amount of $81,400 proposed to place town homes on the property. The density of the property would be 6:t per acre, considerably less than allowed by R-4 zoning. A second proposal was received from Jeffrey Gustafson representing Northview Development Corporation. Mr. Gustafson intends to purchase the property for $90,000 and use it to erect an apartment building. Gustafson has not indicated the number of units he is seeking. Conclusion A purchase agreement has been prepared by the City Attorney's office. Mr. Gustafson has executed the agreement and submitted the required $15,000 down payment. 162~O~~~ooA~S\99\1~81B..oocMinnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER ISSUES: FISCAL IMPACT: ALTERNATIVES: RECOMMENDED MOTION: The parcel is R-4 and intended for multi-family. This sale would allow the property to be used at the density intended in the Comprehensive Plan and Zoning Ordinance. Such a development would blend with similar development along Tower Street just east of the site. The Council directed that funds from this sale be ear-marked for redevelopment, but no resolution to that effect has been adopted. The Council should determine how these funds will be used. The City owns the property outright. The appraisal of the property suggests a value of $1.50 per square foot or $110,000. The proposal is $1.22 per square foot, or $90,000. This is 82% of the appraised value. (1) Adopt Resolution 99-XX Authorizing the Mayor and City Manager to Execute the Purchase Agreement for the Sale of Lot 2, Block 3, Brooksville Center 1 st Addition. (2) Take no action or defer action for a specific reason. Alternative (1). The Council should also direct where the funds are to be appropriated. I:\COUNCIL \AGNRPTS\99\ 1 004_8B.DOC RESOLUTION 99' \~S ~O((tt f,~t\( ~J.t J. . /0 If III JtSt("''fPJ~.: r~ 41. A Resolution Authorizing the Mayor and City Manager to Enter Into a Purchase Agreement for the Sale of Lot 2, Block 3, Brooksville Center 1 st Addition WHEREAS, the City acquired the original 2.4 acre parcel in 1983 to provide road right-of-way for Toronto Lane; and WHEREAS, Toronto Avenue has been construction utilizing a portion of this parcel; and WHEREAS, the remaining 1.7 acre parcel, legally described as Lot 2, Block 3, Brooksville Center 1 st Addition, has been approved for sale by the City Council; and WHEREAS, the City Manager, in accordance with Council direction, has solicited proposals for the sale of the property; and WHEREAS, a proposal of $90,000 has been received and a Purchase Agreement has been prepared by the City Attorney's office. Now THEREFORE, be it resolved by the City Council of the City of Prior Lake, Minnesota as follows: 1. The sale of Lot 2, Block 3, Brooksville Center 1 st Addition in the amount of $90,000 to Jeffrey Gustafson d/b/a Northview Development Corporation is hereby approved. 2. The Mayor and City Manager are authorized to execute said Purchase Agreement on behalf of the City in order to effectuate this sale. Passed and adopted this 4th day of October, 1999. YES NO Mader Mader Kedrowski Kedrowski Schenck Schenck Wuellner Wuellner Petersen Petersen Frank Boyles, City Manager 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER Upon a vote, ayes by Mader, Kedrowski, Petersen, Schenck, and Wuellner, the motion carried. B. Consider Approval of Resolution 98-92 Approving the Final Plat and Development Contract for Windsong on the Lake 3rd Addition. Windsong 3rd Addition Final Plat addresses City Council preliminary plat concerns regarding removal or relocation of structures and steps as well as other preliminary plat requirements. MOTION BY KEDROWSKI SECOND BY PETERSEN TO APPROVE RESOLUTION 98-82 APPROVING THE FINAL PLAT AND DEVELOPMENT CONTRACT FOR WlNDSONG ON THE LAKE 3RD ADDITION. Upon a vote, ayes by Mader, Kedrowski, Petersen, Schenck, and Wuellner, the motion carried. C. Triax Cable Subcommittee The City has experienced resident complaints regarding service, repair and cost of Triax cable television. A subcommittee of Councilmember Kedrowski and Mayor Mader will meet with Triax representatives to discuss these concerns. Comments from Councilmembers: Kedrowski: Prior to negotiating the franchise agreement the subcommittee or entire City Council should hold a public hearing to solicit public feedback on the Triax cable system. MOTION BY KEDROWSKI SECOND BY SCHENCK TO HOLD A PUBLIC HEARING REGARDING TRIAX CABLE PRIOR TO NEGOTIATING AN AGREEMENT. Upon a vote, ayes by Mader, Kedrowski, Petersen, Schenck, and Wuellner, the motion carried. 10. NEW BUSINESS: A. Consider Approval of Resolution 98-88 Rejecting All Bids Received on July 6, 1998 for the Sale of City Owned Property Lot 2, Block 3, Brooksville Center 1st Addition and Directing Staff to List the Property with a Realtor and Authorizing the City Manager to Negotiate any Future Sale through Such Realtor. After receiving City Council approval to solicit bids the staff had an appraisal done of the property. The highest bid received is only half of the appraised value. MOTION BY KEDROWSKI SECOND BY PETERSEN TO APPROVE RESOLUTION 98-88 REJECTING ALL BIDS RECENED ON JULY 6 , 1998 FOR THE SALE OF CITY OWNED PROPERTY LOT 2, BLOCK 3, BROOKSVILLE CENTER 1ST ADDITION AND DIRECTING STAFF TO LIST THE PROPERTY WITH A REALTOR AND AUTHORIZING THE CITY MANAGER TO NEGOTIATE ANY FUTURE SALE THROUGH SUCH REALTOR. 72098.DOC 4 ----.-;;-- ---- Questions from Councilmembers: Schenck: How is Realtor selected? Pace: Professional service. Mader: City Manager could do this without a Realtor? Pace: Yes. Kedrowski: Since this is a bidding process, is this legal to reject bids then accept proposals? Pace: City has authority to reject all bids. Not aware of any statute which would prohibit City from proceeding that way assuming you accepted the highest proposal. Comments from Councilmembers: . Mader: Would like to shorten resolution to reject bids and refer back to City Manager for recommendation. Delete listing with Realtor. City Attorney will review statutes. Final decision requires Council approval. Highest bid received on July 6 is 55% market value. This is just rejecting bids. Nothing else. The staff report is in error to state that the proceeds from the sale will automatically be used for redevelopment. The Council needs to decide. . Schenck: Prefers to take no action at this time until City Attorney investigates process. MOTION BY MADER SECOND BY KEDROWSKI TO REMOVE "STAFF TO LIST THE PROPERTY WITH A REALTOR" FROM THE APPROVING RESOLUTION AND HAVE CITY ATTORNEY REVIEW THE PROCESS WHEREIN CITY MANAGER HAS AUTHORITY TO NEGOTIATE. Upon a vote, ayes by Mader, Kedrowski, Petersen, Schenck, and Wuellner, the motion to adopt the amended resolution carried. B. Consider Approval of Resolution 98-89 Pertaining to the Acquisition of Tax Foifeited Lands. Annually the City receives a list of parcels which have gone tax forfeit for non-payment of \ taxes and special assessments. The City may acquire the property for public purposes or let the county sell. There are three parcels that staff recommends be conveyed to the City for public purpose. The fIrst two should be obtained for wetland and creek purposes. The third is a strip adjacent to a park trail. Other parcels will go to the Watershed, but most will go to the County for auction. MOTION BY KEDROWSKI SECOND BY SCHENCK TO APPROVE RESOLUTION 98- 89 PERTAINING TO THE ACQUISITION OF TAX FORFEITED LANDS. Upon a vote, ayes by Mader, Kedrowski, Petersen, Schenck, and Wuellner, the motion carried. C. Consider Approval of Resolution 98-90 Assessing Trunk Water Acreage Charge and Lateral Water Charge upon Judith Anderson's Property Taxes on PIN #25-901-024- 1. 72098.DOC 5 . City Attorney Pace said that was a separate issue but no. MOTION BY KEDROWSKI SECOND BY SCHENCK TO DENY TIIE DEVELOPERS REQUEST FOR AN AMENDMENT ON TIIE BASIS THAT TIIE PRESENT DEVELOPMENT CONTRACT IS CLEAR AS TO ITS INTENT. Upon a vote, ayes by Mader, Kedrowski, Petersen, Schenck, and Wuellner, the motion carried. B. Consider Approval of Amendment to the Developers Contract for Knob Hill Second Addition. MOTION BY KEDROWSKI SECOND BY SCHENCK TO DENY DEVELOPERS REQUEST FOR AN AMENDMENT ON BASIS THAT PRESENT DEVELOPMENT CONTRACT IS CLEAR AS TO ITS INTENT. Upon a vote, ayes by Mader, Kedrowski, Petersen, Schenck and Wuellner, the motion carried. C. Consider Approval of Resolution 98-XX Approving the Disposal of City Owned Property Lot 2, Block 3, Brooksview Center 1st Addition and Directing Staff to Obtain a Survey, Appraisal and Subdivide the Property to Proceed with Public Sale. MOTION BY KEDROWSKI SECOND BY WUELLNER TO APPROVE RESOLUTION 98-XX APPROVING TIIE DISPOSAL OF CITY OWNED PROPERTY LOT 2, BLOCK 3, BROOKSVIEW CENTER 1ST ADDITION AND DIRECTING STAFF TO OBTAIN A SURVEY, APPRAISAL, AND SUBDIVIDE TIIE PROPERTY TO PROCEED WITH PUBLIC SALE. · Councilmember Kedrowski said there was no public use for the property. The second motion would be that the proceeds go into a fimd established as a redevelopment district revolving fund. · Mayor Mader said the problem with the resolution was that the whereas' contain the same thing as the findings. The third whereas should be a finding and the first three findings should be whereas' . He said there is a document in there regarding the disposal of property. It relates to bids. When bids are received the highest bidder is awarded contract. The resolution should add a specification that the Council is not obligated to accept highest bid. . City Attorney Pace said that was in the bid documents. . Councilmember Kedrowski said if we continue this item to revise the resolution, it should then be on the Consent Agenda. He withdrew the motion, Councilmember Wuellner withdrew the second. MOTION BY KEDROWSKI SECOND BY WUELLNER TO TABLE TIIE ITEM TO THE MARCH 2 CONSENT AGENDA. Upon a vote, ayes by Kedrowski, Mader, Petersen, Schenck, and Wuellner, the motion carried. MOTION BY KEDROWSKI SECOND BY WUELLNER TO DIRECT STAFF TO INVESTIGATE THE POSSffiILITY OF CREATING REDEVELOPMENT FUNDS FROM LAND SALE PROCEEDS. Upon a vote, ayes by Kedrowski, Mader, Petersen, Schenck, and Wuellner, the motion carried. 21798.DOC 10 RESOLUTION 98-28 APPROVING THE DISPOSAL OF CITY OWNED PROPERTY LOT 2, BLOCK 3, BROOKSVILLE CENTER 1ST ADDITION AND DIRECTING STAFF TO OBTAIN A SURVEY, APPRAISAL, AND SUBDIVIDE THE PROPERTY TO PROCEED WITH PUBLIC SALE MOTION BY: KEDROWSKI SECOND BY: SCHENCK WHEREAS, the Prior Lake Planning Commission considered the request to dispose of city owned property at Lot 2, Block 3, Brooksville Center 1st Addition on the 26th day of January, 1998; and WHEREAS, the Planning Commission has reviewed the request as contained in Case File #97-118, and determined the disposal of the property is in compliance with the Comprehensive Plan; and WHEREAS, the City Council scheduled the request on February 17, 1998 and March 2, 1998. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE: FINDINGS 1. The City Council has considered the effect of disposing of Lot 2, Block 3, Brooksville Center 1 st Addition and has determined there is no relationship of the disposal to the Comprehensive Plan. 2. The property is surplus to City needs. 3. The contents of Planning Case File #97-118 are hereby entered into and made a part of the public record and the record ofthe decision for this case. . CONCLUSION 16200 ~bu~otuta.ptaafes\d?9inl8~ Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (61p>dgH7-4245 AN EQUAL OPPORTUNITY EMPLOYER Based upon the Findings set forth above, the City Council hereby approves of the disposal of Lot 2, Block 3, Brooksville Center 1st Addition and directs staff to : . · Obtain a survey; and · Obtain an appraisal; and · Through the administrative subdivision procedure set forth in the City Code, to proceed with the division of the right-of-way from the remainder of the parcel; and · Proceed with the public sale of the property and return to the Council once bids are received for final authorization. Passed and adopted this 2nd day of March, 1998. Mader Kedrowski Petersen Schenck Wuellner YES X X X X X NO Mader Kedrowski Petersen Schenck Wuellner {Seal} r:\council\resoluti\planres\rs9828cc.doc Page 2 _. ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: Because the purchase price ofthe property is unknown, the cost recovery is unclear. At the present, the City has spent $675 for the appraisal and survey. Three alternatives exist. 1. Adopt Resolution 98-XX rejecting all bids and directing the staff to list the property with a realtor and authorize the City Manager to negotiate any future sale through such realtor. 2. Accept the Towering Woods Partnership bid of$60,500 and direct staff to prepare a resolution. 3. Defer this item and provide staffwith additional direction. The staff recommends Alternative #1. Motion and second to adopt Resolution 98-XX rejecting all bids and directing the staffto list the property with a realtor and authorizing the City Manager to negotiate the sale through the realtor. L:\98FILES\98SUBJEC\97-118\97118CC3.DOC 3 -=- 6. The property is surplus to City needs. 7. The contents of Planning Case File #97-118 are hereby entered into and made a part of the public record and the record of the decision for this case. CONCLUSION Based upon the Findings set forth above, the City Council hereby rejects all bids submitted on July 6, 1998 for the sale of Lot 2, Block 3, Brooksville Center 1st Addition (less right-of-way) and directs staff to; . Proceed with the sale of the property utilizing a Realtor and authorizes the City Manager to negotiate any such offers through the Realtor; and . Through the administrative subdivision procedure set forth in the City Code, to proceed with the division of the right-of-way from the remainder of the parcel. Passed and adopted this 20th day of July, 1998. YES NO Mader Kedrowski Petersen Schenck Wuellner Mader Kedrowski Petersen Schenck Wuellner {Seal} City Manager, City of Prior Lake 1:\98files\98subjec\97-118\rs98xxcc.doc Page 2 APPRAISAL SUMMARY SUM~fARY OF IMPORTANT CONCLUSIONS LOCATION: At the corner of Toronto Avenue and Tower street, Prior Lake TYPE OF PROPERTY: Vacant Land OWNER OF RECORD: City of Prior Lake - DATE OF INSPECTION: April 24, 1998 DATE OF VALUATION: April 24, 1998 HUDSON MAP COORDINATES: 161-4B LAND AREA:. 1.699 Acres +/- 74,000 +/- Square Feet DIMENSIONS: See attached Section Map 194.12 X 380.00 X 195.35 X 380.01 IMPROVEMENTS: None ZONING: R-3 Multiple Residential PROPERTY RIGHTS APPRAISED: Fee Simple Estate LEGAL DESCRIPTION: Lot 2, Block 3 Brooksville Center First Addition, Scott County, Minnesota HIGHEST AND BEST USE: Those uses permitted by present zoning 6 ~'-.~_ .-.~. uh"- .....;.r. ~. '.:. . .... .;:...;,: .. ":~.J. ..;.- ...:- ~.... _ _ __.;- -_. .~, -.. . -' ~ . ~ .-_. . - 9EHIN LAND SALES SUMMARIZED - t i SALE SALE SALES SIZE PRICE NO. DATE PRICE SQ. FT. PER SQ. FT. KESTREL VILLAGE 1 3/94 $210;000 165,528 $1.27 B-3/R-3 FAIRVIE!"I. CLINIC .2 3/95 $133,000 66,500 $2.00 R-t -. PARK NICOLLET 3 1/96 $597,500 506,167 $1.18 B-3 ) PRIORDALE MALL 4 8/96 $ 90,000 60,984 $1.48 B-3 -. . - SAFE HAVEN 5 11/97 $ 46,000 25,265 $1.82 R-3 COMPARABLE SALES ADJUSTMENT GRID . TOTAL VALUE PRICE PER ADJ. PER SALE NO. SQ. FT. SIZE LOCATION ACTOR SQ. FT. (X) (X) '" == 1 $1. 27 1.13 1.00 1. 44 $1. 83 2 $2.00 0.98 0.90 0.88 $1. 76 3 $1.18 1. 34 0.90 1.21 $1. 42 4 $1. 48 0.97 1.00 0.97 $1. 44 5 $1. 82 0.85 0.95 0.81 $1.47 MEAN OF SALES PER SQUARE FOOT = $1.58 40 . ,- '. PURCHASE AGREEMENT . :l,{eecived; of North view Development COIporation, a Minnesota cOIporation, this _ day - of September, 1&99, the sum of Fifteen Thousand and No/100 Dollars ($15.000.00) as earnest money for the purchase of certain vacant land legally described as Lot 2. Block 3. BrooksVille Center rl Addition,according to the recorded plat thereof on file and of record in the office of the County Recordcir. Scott County, Minnesota. except the west 80.00 feet of said lot; containing approximately 1k:J.000 square feet of land, more or less (the "Property"). all of which Property the City of Prior Lake. Minnesota, a Minnesota municipal cOlporation. Corporate and politic (USeller') has this day sol~ to Buyer for the sum of Ninety Thousand and No/IOO ($90,000.00) (hereinafter referred to as the "Purchase Price'), which Btiyeragrees to pay in cash or cash equivalent at closing. . This Pw,'chase Agreement is subject to the following terms and conditions: L . ~eller understands that it will be necessary for Buyer prior to closing to satisfy the following contingencies: . I , (a) Buyer obtaining, at Buyer's' expense, a soil testing and analysis . report from an engineer licensed in the State of Minnesota, which indicates in Buyer's good faith discretion that soil conditions of the Property are satisfactory to permit Buyer's intended use of the Property as a multifamily development. . In the event that Buyer does not close, then a copy of the soil tests shall be turned over to Scllcr at no cost to Seller. (b) Buyer determining that all necessary public utilities, including, without limi~tion,sanitaJy and stonn sewer, water, natural gas. electricity and telephone are currently. available for Use at the boundary of the Property. and at sufficient capacity for Buyer's intended use and development of the Property, subject only to normal and customary hoo~-up and other similar charges from existing sour~es of supply. (c) Buyer obtaining a Phase I 'environmental report to determine that the Property is not in violation of any requirements of federal. state or local environmental laws or regulations applicable to the ~ropcrty, including, without limitation, requirements relating to hazardous waste. potential hazardous. waste, toxic materials, waste disposal, oil storage and asbe~os. The .findings of such environmental studies must be acceptable to Buyer m its sole reasonable discretion. Buyer agrees to indemnify, defend and hold Seller harmless from the costs relating to such environmental studies. In the event that Buyer does not close, then a Copy of all environmental studies t :. .: , . . , ON: 66601 '!/', if' . '~j I shall be turned over to Seller at no cost to Seller. 2. . The closing date shall be November 15, 1999 or such date as the parties may agree to in writing, subject to the provisions of paragraph three (3) hereinbelow (the u~losing Date"). 3. ~uyer shall bave ootil October 10, 1999 to satisfy the contingencies contained in ~s Agreement. If Buyer is unable to satisfy one or more of the contingencies on or before October 10, 1999 or to waive them in writing, then Buyer shall provide Seller with a quit claim deed in recordable form to the Property, together with copies of all t~sts, inspections, etc. required to be delivered to Seller pursuant to this Agreement. Upon Seller's receipt of the same, this Agreement shall become null and void and the parties shall have no further obligation to each other under this Agreement, and the earnest money shall be returned to Buyer. 4. Seller shall, within a reasonable time after acceptance of this Agreement, furnish a commitment for title insurance including proper searches covering bankruptcies and state and federal judgments and liens (the uTitle Commitment"). Buyer shall be allowed ten (10) business days after receipt of the Title Commitment for examination of title and making any objections, which shall be made in writing or deemed waived. If any objection is so made, Seller shall be allowed one hundred twenty (120) days to make title marketable. Pending correction of title, payments required hereunder (except for additional earnest money) shan be postponed, but upon correction of title and within ten (10) days after written notice to Buyer, the parties shall perform this Agreement according to its tenns. If title is not corrected within one hundred twenty (120) days from the date of written objection,this Agreement shall become null and void at the option of Buyer, neither party shall be liable for damages hereunder to the other. and the earnest money shall be refunded to Buyer. If title is marketable or is corrected within said time or can be corrected at closing by the payment of money and Buyer defaults in any of its obligations hereunder, Sener shall be entitled to terminate this Agreement and upon such termination, all payments made hereunder shall be retained by Seller as liquidated damages, time being of the essence hereof. This provision shall not deprive either party of the right of enforcing the specific performance of this Agreement. provided tbis Agreement is not terminated and action to enforce specific performance is commenced within six (6) months after such right of action arises. In the event that Buyer defaults in the performance of the terms of this Agreement and notice of cancellation is served upon the Buyer pursuant to Minn. Stat. ~ 559.21. the termination period shall be thirty (30) days, as permitted by Subd.4 of Minn. Stat. 9 559.21. Seller agrees to cooperate with Buyer's effort to obtain necessary governmental approvals for its proposed use and development provided that such cooperation shall ON: 66601 n'?t cause Seller to incur any expense, or bind Seller until closing occurs. 5. ..On the Closing Date, Seller shall deliver to Buyer a limited warranty deed in recordable form conveying the Property to Buyer.- 6. Seller shall pay in full all real estate taxes and installinents of special assessments d.ue and payable up to the year of closing, if any due. Real estate taxes and installments of special assessments due and payable in the year of closing shall be ~rorated to the Closing Date, unless the Property is exempt from real estate taxes, in which case Buyer shall pay the real estate taxes and special assessments, whether levied, pending and deferred, on the Closing Date. I 7. Seller agrees to deliver possession ofthe Property to Buyer no later than the Closing Date. 8. Seller shall, if required by the State of Minnesota, pay the state deed tax on the conveyance on the Closing Date and shall pay for any fee to issue the Title Commitment. Buyer shall be responsible for payment of the reasonable closing fee Fharged by the Title Company and for payment of the premium(s) for the owner's and lender's policies oftitle insurance. 9. Seller grants Buyer or its agents, representatives or independent contractors the right during the tenn of this Agreement to enter upon the Property for the purpose of conducting soil tests, making surveys, inspections and the like. Buyer and its agents, . representatives and independent contractors will perfonn such woi-k in a . professional manner and shall restore the Property to its condition prior to such . testing. Buyer agrees to indemnify, defend and hold Seller harmless against any loss, damages, actions, claims or liens arising out of or related to Buyer's exercise of : its rights under this paragraph; this provision shall survive the closing andlor cancellation of this Agreement. 10. Seller and Buyer hereby represent and warrant to each other that neither party has hired a broker/salesperson concerning the Property and that neither party owes a commission to any party with respect hereto. Seller and Buyer shall indemnify, defend and hold the other party harmless against any such. broker's fees or commissions. 11. Notices or correspondence shall be addressed as follows: Buyer: Northview Development Corporation 13241 Holasek Lane Eden Prairie, Minnesota 55346 (612) 949-2667; or (612) 720-7174 (cell) DN: 66601 ~. , 1- Seller: City of Prior Lake, Minnesota clo Frank Boyles, City Manager 16200 Eagle Creek Avenue SE Prior Lake, Minnesota 55372-1714 (612) 298.6000 ~ ,'.:.::: with a copy to: Ronald B. Peterson, Esq. Halleland. Lewis. Nil~ Sipkins & Johnson Pillsbury Center Soutb, Suite 600 ~ 220 South Sixth Street Minneapolis. Minnesota 55402-4501 (612) 204-4122 12. .This purchase Agreernent sball be governed. construed and enforced in accordance with the laws of the State of Minnesota. 13. The terms of this Agreement shan survive the closing. 14. This Agreerncnt is binding upon the successors, heirs and assigns of the parties hereto. 15. Buyer adcnowledges and agrees that thc Property is to be sold to and accepted by it at closing in its then present condition, "AS-IS" WITH ALL FAULTS. IF ANY. AND WITHOUT ANY wARRANTY, EXPRESS OR IMPLIED, specifically (without limiting the geoerality of the foregoing) without any warranty of (i) soil conditions of the Property for any particular pwpose or development potential, or (ii) compliance of the Property with any applicable laws, regulations or other governmental requirements. 16. This Agreement is effective upon the date it is fully executed by both parties. SELLER~ CITY OF PRIOR LAKE By Its By Its The undeciigued has executed this purchase Agreement this _ day of September, 1999. ON: 66601 BUYER: Northview Development Corporation By , The undersigned has executed this Purchase Agreement this J "'\~y of September, 1999. DN:6660t /