HomeMy WebLinkAboutContract 1805
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1900 Silver Lake Road
Suite 200
TITLE~
New Brighton, Minnesota 55112
(651) 638-1900
FAX (651) 638-1994
Date: August 9, 2005
www.1andtitleinc.com
City of Columbia Heights
Attn: Randy Schumacher
590 - 40th Avenue NE
Columbia Heights, MN 55421
Re: Lot 15, Block 68, Columbia Heights Annex to Minneapolis
Our File No.: 245862
Dear Randy:
Enclosed please find your Owner's Policy of Title Insurance. Because your policy offers important protection
affecting ownership of your property, we strongly suggest you store it in a safe place along with your other real estate
papers.
It has been our pleasure to assist you with your real estate needs. Please feel free to contact our office if you have any
further questions now or in the future.
Final Policy Department
Land Title, Inc.
enclosure
AGENT FOR CHICAGO TITLE INSURANCE COMPANY
FIRST AMERICAN TITLE INSURANCE COMPANY 0 LAWYERS TITLE INSURANCE CORPORATION
AMERICAN LAND TITLE ASSOCIATION
OWNER'S POLICY
(10-17-92)
P I' N MN2063-46-245862-2005.72106-70320664
OICY o.
CHICAGO TITLE INSURANCE COMPANY
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN
SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, CHICAGO TITLE INSURANCE COMPANY, a Missouri
corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding
the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of:
1. Title to the estate or interest described in Schedule A being vested other than as stated therein;
2. Any defect in or lien or encumbrance on the title;
3. Unmarketability of the title;
4. Lack of a right of access to and from the land.
The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to the
extent provided in the Conditions and Stipulations.
In Witness Whereof, CHICAGO TITLE INSURANCE COMPANY has caused this policy to be signed and sealed of Date of
Policy shown in Schedule A, the policy to become valid when countersigned by an authorized signatory.
MN2063
245862
CHtCA(jQ~I'lTLE INSU~NCJj: CQMPANY
Land Title, Inc,
1900 Silver Lake Road, Suite 200
New Brighton, MN 55112
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Reorder Form No. 8256 (Reprinted 10/00)
AL TA Owner's Policy (10-17-92)
Chicago Title Insurance Company
OWNER'S POLICY
SCHEDULE A
Case Number:
245862
Date of Policy:
December 22, 2004
at 9:07 AM
The Policy Number shown on this schedule must agree with the preprinted number on the cover sheet.
1. Name of Insured:
Amount of Insurance:
$225,000.00
Policy Number:
72106-70320664
City of Columbia Heights Economic Development Authority, a Minnesota public body corporate and
politic
2. The estate or interest in the land which is covered by this policy is:
Fee Simple
3. Title to the estate or interest in the land is vested in the insured.
4. The land referred to in this policy is described as follows:
Lot 15, Block 68, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota
Land Title, Inc.
B~~_
Authorized Officer or Agent ALTA Owner's Policy 10/17/92
This Policy is invalid unless the cover sheet and Schedule B are attached.
Schedule A consists of 1 page(s)
Chicago Titl~ Insurance Company
OWNER'S POLICY
SCHEDULE B
Exceptions from Coverage
Case Number:
245862
Date of Policy:
December 22,2004 at 9:07
AM
Policy Number:
72106-70320664
The Policy Number shown on this schedule must agree with the preprinted number on the cover sheet.
This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees
or expenses) which arise by reason of:
1. Any discrepancies or conflicts in boundary lines, any shortages in area, or any encroachment or
overlapping of improvements.
2. Any facts, rights, interests or claims which are not shown by the public record which could be
ascertained by an accurate survey of the land or by making inquiry of persons in possession thereof.
3. Easements, or claims thereof, which are not shown by the public record.
4. Any lien or right to lien for services, labor or material imposed by law and not shown by the public
record.
5. Taxes or assessments which are not shown as existing liens by the records of any taxing authority
that levies taxes or assessments on real property or by the public record. Proceedings by a public
agency which may result in taxes or assessments, or notice of such proceedings, whether or not
shown by the records of such agency or the public record.
6. The lien of all taxes payable in the year 2005, and thereafter, and taxes and assessments levied
subsequent to the date of this policy.
First half taxes are due and payable on or before May 15, 2005.
Second halftaxes are due and payable on or before October 15, 2005.
(Taxes payable in the year 2004, and prior, have been paid in full.)
7. All minerals and mineral rights are reserved to the State of Minnesota, as reserved in instrument flied
in Book 174, page 468, as Document Number 101862.
8. Rights or claims of tenants in possession under unrecorded leases.
ALTA Owner's Policy FormB 1987 (Amended 10/17/92)
This Policy is invalid unless the cover sheet and Schedule A are attached.
Schedule B consists of 1 page(s)
EXCLUSIONS FROM COVERAGE
. The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs,
attorneys' fees or expenses which arise by reason of:
1. (a) Any law, ordinance or governmental regulation (Including but not limited to building and zoning laws, ordinances, or regulations)
restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ll) the character, dimensions or
location of any improvement now or, hereafter erected on the land; (iii) a separation In ownership oJ; a change in the dimensions or
area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of
these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a
defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded In the public records
at Date of Policy.
(b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a
defect, lien or encnmbrance resulting from a violation or alleged violation affecting the land has been recorded in the puhlic records
at Date of Policy.
2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not
excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for
value without knowledge.
3. Defects, liens, encumbrances, adverse claims or other matters:
(a) created, suffered, assumed or agreed to by the insured claimant;
(b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and
not disclosed In writing to the Company by the insured claimant prior to the date the insured claimant became an insured
under this policy;
(c) resulting in no loss or damage to the insured claimant; (d) attaching or created subseqnent to Date of Policy; or
(d) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or
interest insured by this policy.
4. Any claim, which arises out of the transaction vesting in the Insured the estate or interest insured by this policy, by reason of the
operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on:
(i) the transaction creating the estate or Interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or
(ll) the transaction creating the estate or interest Insured by this policy being deemed a preferential transfer except where the
preferential transfer results from the failure:
(a) to timely record the instrument oftransfer; or
(b) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor.
CONDITIONS AND STIPULATIONS
(d) In all cases where this policy permits or requires the Company to prosecute or
provide for the defense of any action or proceeding, the insured shall secure to the
Company the right to so prosecute or provide defense in the action or proceeding,
and all appeals therein, and permit the Company to use, at its option, the name of
the insured for this purpose. Whenever requested by the Company, the insured, at
the Company's expense, shall give the Company all reasonable aid (i) in any action
or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the
action or proceeding, or effecting settlement, and (ii) in any other lawful act which
in the opinion of the Company may be necessary or desirable to establish the title to
the estate or interest as insured. If the Company is prejudiced by the failure of the
insured to furnish the required cooperation, the Company's obligations to the
insured under the policy shall terminate, including any liability or obligation to
defend, prosecute, or continue any litigation, with regard to the matter or matters
requiring such cooperation.
1. DEFINITION OF TERMS
The following terms when used in this policy mean:
(a) "insured": the insured named in Schedule A, and, subject to any rights or
defenses the Company would have had against the named insured, those who
succeed to the interest of the named insured by operation of law as distinguished
from purchase including, but not limited to, heirs, distributees, devisees, survivors,
personal representatives, next of kin, or corporate or fiduciary successors.
(b) "insured claimant": an insured claiming loss or damage.
( c) "knowledge" or "known": actual knowledge, not constructive knowledge or
notice which may be imputed to an insured by reason of the public records as
defined in this policy or any other records which impart constructive notice of
matters affecting the land.
(d) "land": the land described or referred to in Schedule A, and improvements
affixed thereto which by law constitute real property. The term "land". does not
include any property beyond the lines of the area described or referred to in
Schedule A, nor any right, title, interest, estate or easement in abutting streets,
roads, avenues, alleys, lanes, ways or waterways, but nothing herein shall modify or
limit the extent to which a right of access to and from the land is insured by this
policy.
(e) "mortgage": mortgage, deed of trust, trust deed, or other security instrument.
(f) "public records": records established under state statutes at Date of Policy for
the purpose of imparting constructive notice of matters relating to real property to
purchasers for value and without knowledge. With respect to Section l(a)(iv) ofthe
Exclusions From Coverage, "public records" shall also include environmental
protection liens filed in the records of the clerk of the United States district court for
the district in which the land is located.
(g) "unmarketability of the title": an alleged or apparent matter affecting the title
to the land, not excluded or excepted from coverage, which would entitle a
purchaser of the estate or interest described in Schedule A to be released from the
obligation to purchase by virtue of a contractual condition requiring the delivery of
marketable title.
2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE
The coverage of this policy shall continue in force as of Date of Policy in favor of
an insured only so long as the insured retains an estate or interest in the land, or
holds an indebtedness secured by a purchase money mortgage given by a purchaser
from the insured, or only so long as the insured shall have liability by reason of
covenants of warranty made by the insured in any transfer or conveyance of the
estate or interest. This policy shall not continue in force in favor of any purchaser
from the insured of either (i) an estate or interest in the land, or (ii) an indebtedness
secured by a purchase money mortgage given to the insured.
3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT
The insured shall notify the Company promptly in writing (i) in case of any
litigation as set forth in Section 4(a) below, (ii) in case knowledge shall come to an
insured hereunder of any claim of title or interest which is adverse to the title to the
estate or interest, as insured, and which might cause loss or damage for which the
Company may be liable by virtue of this policy, or (iii) if title to the estate or
interest, as insured, is rejected as unmarketable. If prompt notice shall not be given
to the Company, then as to the insured all liability of the Company shall terminate
with regard to the matter or matters for which prompt notice is required; provided,
however, that failure to notify the Company shall in no case prejudice the rights of
any insured under this policy unless the Company shall be prejudiced by the failure
and then only to the extent of the prejudice.
4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED
CLAIMANT TO COOPERATE
(a) Upon written request by the insured and subject to the options contained in
Section 6 of these Conditions and Stipulations, the Company, at its own cost and
without unreasonable delay, shall provide for the defense of an insured in litigation
in which any third party asserts a claim adverse to the title or interest as insured, but
only as to those stated causes of action alleging a defect, lien or encumbrance or
other matter insured against by this policy. The Company shall have the right to
select counsel of its choice (subject to the right of the insured to object for
reasonable cause) to represent the insured as to those stated causes of action and
shall not be liable for and will not pay the fees of any other counsel. The Company
will not pay any fees, costs or expenses incurred by the insured in the defense of
those causes of action which allege matters not insured against by this policy.
(b) The Company shall have the right, at its own cost, to institute and prosecute
any action or proceeding or to do any other act which in its opinion may be
necessary or desirable to establish the title to the estate or interest, as insured, or to
prevent or reduce loss or damage to the insured. The Company may take any
appropriate action under the terms of this policy, whether or not it shall be liahle
hereunder, and shall not thereby concede liability or waive any provision of this
policy. If the Company shall exercise its rights under this paragraph, it shall do so
diligently.
(c) Whenever the, Company shall have brought an action or interposed a defense
as required or permitted by tbe provisions of this policy, the Company may pursue
any litigation to fmal determination by a court of competent jurisdiction and
expressly reserves the right, in its sole discretion, to appeal from any adverse
judgment or order.
5. PROOF OF LOSS OR DAMAGE
In addition to and after the notices required under Section 3 of these Conditions
and Stipulations have been provided the Company, a proof ofloss or damage signed
and sworn to by the insured claimant shall be furnished to the Company within 90
days after the insured claimant shall ascertain the facts giving rise to the loss or
damage. The proof of loss or damage shall describe the defect in, or lien or
encumbrance on the title, or other matter insured against by this policy which
constitutes the basis of loss or damage and shall state, to the extent possible, the
basis of calculating the amount of the loss or damage. If the Company is prejudiced
by the failure of the insured claimant to provide the required proof of loss or
damage, the Company's obligations to the insured under the policy shall terminate,
including any liability or obligation to defend, prosecute, or continue any litigation,
with regard to the matter or matters requiring such proof of loss or damage.
In addition, the insured claimant may reasonably be required to submit to
examination under oath by any authorized representative of the Company and shall
produce for examination, inspection and copying, at such reasonable times and
places as may be designated by any authorized representative of the Company, all
records, books, ledgers, checks, correspondence and memoranda, whether bearing a
date before or after Date of Policy, which reasonably pertain to the loss or damage.
Further, if requested by any authorized representative of the Company, the insured
claimant shall grant its permission, in writing, for any authorized representative of
the Company to examine, inspect and copy all records, books, ledgers, checks,
correspondence and memoranda in the custody or control of a third party, which
reasonably pertain to the loss or damage. All information designated as confidential
by the insured claimant provided to the Company pursuant to this Section shall not
be disclosed to others unless, in the reasonable judgment of the Company, it is
necessary in the administration of the claim. Failure of the insured claimant to
submit for examination under oath, produce other reasonably requested information
or grant permission to secure reasonably necessary information from third parties as
required in this paragraph shall terminate any liability of the Company under this
policy as to that claim.
6. OPTIONS TO PAY OR OTHERWISE SETILE CLAIMS;
TERMINATION OF LIABILITY
In case of a claim under this policy, tbe Company shall have the following
additional options:
(a) To Payor Tender Payment of the Amount of Insurance.
To payor tender payment of the amount of insurance under this policy together
with any costs, attorneys' fees and expenses incurred by the insured claimant, which
were authorized by the Company, up to the time of payment or tender of payment
and which the Company is obligated to pay.
Upon the exercise by the Company of this option, all liability and obligations to
the insured under this policy, other than to make the payment required, shall
terminate, including any liability or obligation to defend, prosecute, or continue any
litigation, and the policy shall be surrendered to the Company for cancellation.
(b) To Payor Otherwise Settle With Parties Other than the Insured or
With the Insured Claimant.
(i) to payor otherwise settle with other parties for or in the name of an insured
claimant any claim insured against under this policy, together with any costs,
attorneys' fees and expenses incurred by the insured claimant which were
authorized by the Company up to the time of payment and which the Company is
obligated to pay; or
described.
(a) The liability of the Company under this policy shall not exceed the least of:
(i) the Amount of Insurance stated in Schedule A; or,
(ii) the difference between the value of the insured estate or interest as insured
and the value of the insured estate or interest subject to the defect, lien or
encumbrance insured against by tlus policy.
(b) In the event the Amount of Insurance stated in Schedule A at the Date of
Policy is less than 80 percent of the value of the insured estate or interest or the full
consideration paid for the land, whichever is less, or if subsequent to the Date of
Policy an improvement is erected on the land which increases the value of the
insured estate or interest by at least 20 percent over the Amount of Insurance stated
in Schedule A, then this Policy is subject to the following:
(i) where no subsequent improvement has been made, as to any partial loss, the
Company shall only pay the toss pro rata in the proportion that the amount of
insurance at Date of Policy bears to the total value of the insured estate or interest at
Date of Policy; or
(ii) where a subsequent improvement has been made, as to any partial loss, the
Company shall only pay the loss pro rata in the proportion that 120 percent of the
Amount of Insurance stated in Schedule A bears to the sum of the Amount of
Insurance stated in Schedule A and the amount expended for the improvement.
The provisions of this paragraph shall not apply to costs, attorneys' fees and
expenses for which the Company is liable under this policy, and shall only apply to
that portion of any loss which exceeds, in the aggregate, 10 percent of the Amount
ofInsurance stated in Schedule A.
(c) The Company will pay only those costs, attorneys' fees and expenses
incurred in accordance with Section 4 of these Conditions and Stipulations.
8. APPORTIONMENT
If the land described in Schedule A consists of two or more parcels which are
not used as a single site, and a loss is established affecting one or more of the
parcels but not all, the loss shall be computed and settled on a pro rata basis as if the
amount of insurance under this policy was divided pro rata as to the value on Date
of Policy of each separate parcel to the whole, exclusive of any improvements made
subsequent to Date of Policy, unless a liability or value has otherwise been agreed
upon as to each parcel by the Company and the insured at the time of the issuance
of this policy and shown by an express statement or by an endorsement attached to
tills policy.
9. LIMITATION OF LIABILITY
(a) If the Company establishes the title, or removes the alleged defect, lien or
encumbrance, or cures the lack of a right of access to or from the land, or cures the
claim of urnnarketability of title, all as insured, in a reasonably diligent mauner by
any method, including litigation and the completion of any appeals therefrom, it
shall have fully performed its obligations with respect to that matter and shall not be
liable for any loss or damage caused thereby.
(b) In the event of any litigation, including litigation by the Company or with the
Company's consent, the Company shall have no liability for loss or damage until
there has been a final determination by a court of competent jurisdiction, and
disposition of all appeals therefrom, adverse to the title as insured.
(c) The Company shall not be liable for loss or damage to any insured for
liability voluntarily assumed by the insured in settling any claim or suit without the
prior written consent of the Company.
10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF
LIABILITY
All payments under this policy, except payments made for costs, attorneys' fees
and expenses, shall reduce the amount of the insurance pro Canto.
11. LIABILITY NONCUIviuLATrVE
It is expressly understood that the amount of insurance under this policy shall be
reduced by any amount the Company may pay under any policy insuring a
mortgage to which exception is taken in Schedule B or to which the insured has
agreed, assumed, or taken subject, or which is hereafter executed by an insured and
which is a charge or lien on the estate or interest described or referred to in
Schedule A, and the amount so paid shall be
deemed a payment under this policy to the insured owner.
12. PAYMENT OF LOSS
(a) No payment shall be made without producing this policy for endorsement of
the payment unless the policy has been lost or destroyed, in which case proof of
loss or destruction shall be furnished to the satisfaction ofthe Company.
(b) When liability and the extent of loss or damage has been definitely fixed in
accordance with these Conditions and Stipulations, the loss or damage shall be
payable witIlln 30 days thereafter.
13. SUBROGATION UPON PAYMENT OR SETTLEMENT
(a) The Company's Right of Subrogation.
Whenever the Company shall have settled and paid a claim under this policy, all
right of subrogation shall vest in the Company unaffected by any act of tile insured
claimant.
The Company shall be subrogated to and be entitled to all rights and remedies
which the insured claimant would have had against any person or property in
respect to the claim had this policy not been issued. If requested by the Company,
the insured claimant shall transfer to the Company all rights and remedies against
any person or property necessary in order to perfect this right of subrogation. The
insured claimant shall permit the Company to sue, compromise or settle in the name
of the insured claimant and to use the name of the insured claimant in any
transaction or litigation involving these rights or remedies.
If a payment on account of a claim does not fully cover the loss of the insured
claimant, the Company shall be subrogated to these rights and remedies in the
proportion which the Company's payment bears to the whole amount of the loss.
IfIoss should result from any act ofthe insured claimant, as stated above, that act
shall not void this policy, but the Company, in that event, sball be required to pay
only that part of any losses insured against by this policy which shall exceed the
amount, if any, lost to the Company by reason of the impairment by the insured
claimant of the Company's right of subrogation.
(b) The Company's Rights Against Non-insured Obligors.
The Company's right of subrogation against non-insured obligors shall exist and
shall include, without limitation, the rights of the insured to indemnities, guaranties,
other policies of insurance or bonds, notwithstanding any' terms or conditions
contained in those instruments which provide for subrogation rights by reason of
this policy.
14. ARBITRATION
Unless prohibited by applicable law, either the Company or the insured may
demand arbitration pursuant to the Title Insurance Arbitration Rules of the
American Arbitration Association. Arbitrable matters may include, but are not
limited to, any controversy or claim between tbe Company and the insured arising
out of or relating to this policy, any service of the Company in cOIDlection with its
issuance or the breach of a policy provision or other obligation. All arbitrable
matters when the Amount of Insurance is $ I ,000,000 or less shall be arbitrated at
the option of either the Company or the insured. All arbitrable matters when the
Amount of Insurance is in excess of $1,000,000 shall be arbitrated only when
agreed to by both the Company and the insured. Arbitration pursuant to this policy
and under the Rules in effect on the date the demand for arbitration is made or, at
the option of the insured, the Rules in effect at Date of Policy shall be binding upon
the parties. The award may include attorneys' fees only if the laws of the state in
wbich the land is located permit a court to award attorneys' fees to a prevailing
party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any
court baving jurisdiction thereof.
The law of the situs of the land shall apply to an arbitration under the Title
Insurance Arbitration Rules.
A copy of the Rules may be obtained from the Company upon request.
IS.LIABILITY LIMITED TO TillS POLICY; POLICY ENTIRE
CONTRACT
(a) This policy together with all endorsements, if any, attached hereto by the
Company is the entire policy and contract between the insured and the Company. In
interpreting any provision of this policy, this policy shall be construed as a whole.
(b) Any claim of loss or damage, whether or not based on negligence, and wIllch
arises out of the status of the title to the estate or interest covered hereby or by any
action asserting such claim, shall be restricted to this policy.
(c) No amendment of or endorsement to this policy can be made except by a
writing endorsed hereon or attached hereto signed by eitl1er the President, a Vice
President, the Secretary, an Assistant Secretary, or validating officer or authorized
signatory oftl1e Company.
16. SEVERABILITY
In the event any provision of the policy is held invalid or unenforceable under
applicable law, the policy shall be deemed not to include that provision and all other
provisions shall remain in full force and effect.
17. NOTICES, WHERE SENT
All notices required to be given the Company and any statement. in writing
required to be furnished the Company shall include the number of this policy and
shall be addressed to the Company at the issuing office or to:
Chicago Title Insurance Company
Claims Department
171 North Clark Street Chicago, Illinois 60601-3294
111I1111I1I11111I1I11I11I1I11~111111111111I1
Record 10 1507035
1971600.003
Form No. 3-M - WARRANTY DEED
Individua1(s) to Corporation Partnership or Limited Liability Company
DEED TAX DUE: $ 742~5d
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Date: November 22, 2004
FOR VALUABLE CONSIDERATION, Michael G. Sweat and Yolanda J. Sweat, husband and wife, Grantor, hereby conveys and
warrants to City of Columbia Heights Economic Development Authority, a Minnesota public body corporate and politic Grantee, a
Corporation under the laws of Minnesota real property in Anoka County, Minnesota described as follows:
Lot 15, Block 68, Columbia Heights .Annex to Minneapolis, Anoka County, Minnesota
together with all hereditaments and appurtenances belonging thereto, subject to the following exceptions:
conditions, covenants and restrictions of record, if any.
Check box if applicable:
Dl('The Seller certifies that the seller does not know of any wells on the described real property.
D A well disclosure certificate accompanies this document.
D I am familiar with the property described in this instrument and I certify that the stais and number of (wells on the described real
property have not changed since the last previously filed well disclosure ce~(~.l /I J //
14
Michae
AffIx Deed Tax Stamp Here
STATE OF MINNESOTA
COUNTY OF RAMSEY
}"
This instrument was acknowledged before me on November 22, 2004 by Michael G. Sweat and Yolanda J. Sweat, husband and wife.
,^^^^^^^^"",^ I
't<~ KRISTINA 1. DUERR
" Notary Public-Minnesota
My Commission Expires Jan 31. 2009
I\NVVVVVVVVVVVV\NV\IV
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SIGNATURE OF NOTARY PUBLIC OR OTHER OFFICIAL I
NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RANK):
Check here ifpart or all of the land is Registered (Torrens) 0
Tax Statements for the real property described in this instrument should
~- - be sent to (include nahle and address ofGniiltee): _h
THIS INSTRUMENT WAS DRAFTED BY (NAME AND ADDRESS):
City of Columbia Heights Economic Development Authority
510 4-0lb AyE NL _
Colum\2riLA. t\e~Vlts( \VlN .551./-2/
Land Title, Inc.
1900 Silver Lake Road
Suite 200
New Brighton, Minnesota 55112
File No. 245862
ANOKA COUNTY MINNESOTA
. Document No.: 1971600.003 ABSTRACT
I hereby certify that the within im;trument was filed in tIlls
. .
office for record on: 12/22/20049:07:00 AM
Fees/Taxes In the AlllOlint of: $767.00
MAUREEN DEVINE
Anoka County Propeliy Tax
Administrator/Recorder/Registrar of Titles
KHJ, Deputy
Delinquent Taxes Certified
Transfer Entered
Record ID: 1507035
",:', ,.,;","
RETURN TO:~~~~8b~,
LAND TITLE, INC.
PIN# 353024310118
COMMERCIAL INDUSTRIAL
PURCHASE AGREEMENT
THIS PURCHASE AGREEMENT ("Agreement") is made and entered into this
~q-t~, day of blov,z,,,,~¢n. ,2004 by and between Michael G. Sweat and Yolanda
J. Sweat, husband and wife, (collectively, "Seller"), and Columbia Heights Economic
Development Authority, a public body corporate and politic under the laws of Minnesota
("Purchaser).
RECITALS
Seller is the fee owner of certain real property situated at 322 NE 40th Ave. in Columbia
Heights, and being legally described as follows:
Lot Fifteen (15) Block Sixty Eight (68), Columbia Heights Annex to
Mpls; Subj to Ease of Rec
Seller desires to sell and Buyer desires to purchase the Property, subject to the terms and
conditions of this Agreement.
AGREEMENT
In consideration of the mutual covenants made below and other good and valuable
consideration, the parties agree as follows:
ge
Offer and Acceptance. Seller agrees to sell and Buyer agrees to purchase the Property,
subject to the terms and conditions of this Agreement. Together with all buildings,
improvements and fixtures owned by Seller, all easements, rights and appurtenances
thereto, and all of Seller's rights, title and interest in all public ways adjoining the same,
and all rights of Seller under all Leases affecting the real estate (hereafter all the
foregoing referred to as the ubject premises or property").
Purchase Price. The purchase price for the Property ( urchase Price") is $225,000 and
,,p
is payable on the Closing Date (as hereinafter del'reed) including any and all relocation
benefits due Seller's business MGS Building Maintenance.
,Salvage Rights_' The Seller has not retained any salvage rights.
As-Is-Basis. It is specifically agreed that the Real Property is being conveyed to the
Purchaser by the Seller in "As-In-Condition"(with all faults").
Title Matters. Seller shall furnish Buyer with the abstract of title for the Property or the
owner's duplicate certificate of title. Buyer may order a title commitment for an owner's
Sweat Purchase Agreement
Page 1 of 7
policy of title insurance from a title company of Buyer's choice. Buyer shall be allowed
20 business days after receipt of the title commitment or abstract for making any
objections to the condition of title, which objections shall be made in writing or deemed
waived. Seller shall have 10 days after receipt of Buyer's written objections to make title
marketable. Pending correction of title, performance hereunder shall be postponed, but
upon making title marketable and within 10 days after written notice by Seller to Buyer,
the parties shall perform this Agreement according to its terms.
5.1. If Seller proceeds in good faith to make title marketable but fails to do so
within the 10-day period or, in any event, no later than the Closing Date, Buyer
may terminate this Agreement without any liability on its part.
5.2. If Seller fails to make title marketable within the 10-day period due to
Seller's failure to proceed in good faith, or,. if title is marketable but Seller
otherwise defaults in its obligations under this Agreement, Buyer may, at its sole
discretion, seek any of the following remedies permitted under law:
(a) terminate this Agreement by notice to Seller; or
(b) seek damages from Seller, including costs and reasonable
attorney's fees as permitted by law; or
(c)
seek specific performance of this Agreement, provided that the
action is commenced within six months after the cause of action
arises.
5.3. If title is marketable or is corrected within the 10-day period and Buyer
defaults in any of its covenants herein, Seller may terminate this Agreement, time
being of the essence. The termination period for a Notice of Cancellation of this
Agreement shall be 30 days as permitted by Minnesota Statutes, section 559.21,
Subd. 4.
Conditions to Closing. Closing of the transaction contemplated by this Agreement and
the obligation of Seller to sell the Property and of Buyer to purchase the Property is
subject to the following conditions:
6.1. Buyer shall have determined on or before the Closing Date that it is
satisfied, based upon the results of and matters disclosed by any environmental or
soil investigations or testing of the Property, that there are no environmental or
soil conditions that would interfere with the Buyer's proposed use of the Property;
and
6.2.
6.3
Buyer shall have reviewed and approved title to the Property pursuant to
Section 5 of this Agreement.
Buyer's Board of Commissioners shall have authorized this Agreement.
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Page 2 of 7
6.4
Seller providing Buyer at closing with a signed Disclaimer of Interest or
release from all tenants in form acceptable to Buyer and all tenants shall
have vacated the property.
The above contingencies are for the sole benefit of Buyer, and Buyer shall have the right to
waive those contingencies by giving written notice to Seller. If the contingencies set forth in this
Section 6 have not been satisfied or waived by the Closing Date, Buyer or Seller may terminate
this Agreement by giving written notice to the other on or before the Closing Date.
Environmental and Soil Investigation. Buyer and its agents shall have the right, at its
sole option and risk, to enter the Property for the purpose of testing soils, surveying, or
doing other such work as may be necessary to determine the suitability of the Property
for use by Buyer. If Buyer investigates and tests the Property pursuant to this Section 7,
Buyer shall pay all costs and expenses of such investigations and testing and shall hold
Seller harmless from all damages and liabilities arising out of Buyer's activities. Upon
request by Buyer, Seller shall also permit Buyer to review all environmental reports and
files, if any, relating to the Property and in Seller's possession or control.
Costs and Prorations. Seller and Purchaser agree to the following Prorations and
allocation of costs in connection with this Agreement and the transaction contemplated
hereby:
a. Purchaser shall pay the costs of certification and delivery of the Abstract of Title or
Certificate of Title and Registered Property Abstract contemplate hereunder.
bo
Purchaser shall pay all state or local transfer or deed taxes in connection with the
Deed to be delivered hereunder, if any. Purchaser shall pay recording charges in
connection with recording the documents to be delivered herein, except those
required to establish marketable title in Seller's name.
c. Seller shall be responsible for payment of the Real Estate taxes due and payable in the
year of sale prorated to the date of closing. Seller shall pay all real estate taxes due
and payable for the years prior to date of closing, together with all special
assessments levied against the property. Also, Seller shall pay any and all green acres
or other d~ taxes ~.~/er specie! ~o~,~,~,,,*~ T~,~,~ ..... 4~,,~, ~_g~.,.'ns+. +.he
d. Each of the parties shall pay all of its own respective attorneys' fees in connection
with the negotiation, preparation and closing of this Agreement and the transaction
contemplated hereby.
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9. Closing.
10.
11.
9.1. Closing shall occur on November 29, 2004 or at such other date as may be
agreed to by the parties in writing ("Closing Date"). Closing shall take place at
the offices of a closing company selected by Buyer or at such other location as
may be mutually agreeable in writing to the parties.
9.2. On the Closing Date, Buyer shall deliver to Seller the Purchase Price and
Seller shall execute and/or deliver to Buyer:
(a) a duly executed general warranty deed ("Deed"), conveying
marketable title to the Property, subject only to: (i) building and zoning laws,
ordinances, state and federal regulations; and (ii) utility and drainage easements
which do not interfere with Buyer's intended use of the Property;
(b) a duly executed affidavit regarding Seller;
(c) a well disclosure certificate or. indication that there is no well;
(d) affidavit of non-foreign identity;
(e) abstract or owner's duplicate certificate of title, if located;
other documents customarily and reasonably required by Buyer's
title examiner or title insurer.
9.3.
9.4.
Seller shall also pay at Closing all costs, including, but not limited to: (a)
all recording fees and charges related to the filing of any instrument
required to make title marketable; (b) fees incurred by Buyer in extending
the abstract of title or obtaining title evidence;
Buyer shall pay (c) state deed tax applicable to the transfer of the Property
to Buyer; (d) well certificate filing fee, if applicable; (e) conservation fee;
(f) recording fees related to filing the Deed; (g) title insurance premiums,
if any, and (h) title company closing fee, if any.
Possession. Seller agrees to deliver possession of the Property to Buyer immediately
after the closing. Seller to pay all utilities to the date of vacation.
Damages to Real Proper .ty. If the Property is substantially damaged prior to closing,
Buyer may at its sole option rescind this Agreement by notice to Seller within 10 days
after Seller notifies Buyer of the damage, during which 1 O-day period Buyer may inspect
the Property.
12. Personal Propertw Not Included. Seller shall remove all personal property, not
included in this sale.
Sweat Purchase Agreement.
Page 4 of 7
13. Covenants~ Representations and Warranties of Seller.
13.1. Seller represents that it is the fee owner of the Property. The signatories to
this Agreement represent that they are authorized to execute this Agreement on .
behalf of Seller.
13.2. Seller agrees to take no actions to encumber title to the Property between
the date of this Agreement and the time the Deed is delivered to Buyer.
13.3. Seller warrants that it has not used the Property for the storage of
hazardous substances or petroleum products and, as of the date of this Agreement,
is not aware of any facts the existence of which would constitute a violation of
any local, state or federal environmental law, regulation or review procedure or
which would give any person a valid claim Under the Minnesota Environmental
Rights Act or the federal Comprehensive Environmental Response, Compensation
and Liability Act. The foregoing is applicable only to Seller's actual knowledge
of facts, and Seller represents that Seller has made no independent investigation
of the Property.
!3.4. Seller warrants there is a single right of access to the Property from a
public right of way.
13.5. Seller warrants that there has been no labor or material furnished to the
Property for which payment has not been made.
13.6. Seller warrants that there are no present violations of any restrictions
relating to the use or improvement of the Property.
13.7. Seller warrants that the Property is connected to city water and city sewer.
13.8. Seller warrants that the buildings are entirely within the boundary lines of
the Property.
13.9. Property is occupied by Alvin Whitfield DBA Tabernacle of David
Church.
13.10. Seller warrants that On the Date of Closing, there will be no service
contracts in effect in connection with the Subject Premises, expect those which
are terminable on thirty (30) days' written notice.
13.11 Seller warrants that Seller has received no notice of any action, litigation,
investigation or proceeding of any kind. pending against Seller, nor to the best of
Seller's knowledge is any action, litigation, investigation, or proceeding pending
or threatened against the Subject Premises, or any part thereof.-
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Page 5 of 7
14. Covenants~ Representations and Warranties of Buyer.
14.1. Buyer is a public body corporate and politic under the laws of Minnesota
and has the power to enter into this Agreement and carry out its obligations
heretmder. The signatories to this Agreement represent that they are authorized to
execute this Agreement on behalf of Buyer.
15. Well Disclosure. Seller will certify on the Deed that it knows of no wells on the
Property.
16. Broker Commissions. Seller and Buyer represent that neither party has engaged the
services of any realtor, broker, or other person who would be entitled to a fee or commission in
connection with the sale of the Property.
17. Miscellaneous.
17.1. This Agreement represents the complete and final agreement of the parties
regarding sale of the Property and supercedes any prior oral or written
tmderstanding. This Agreement may be amended only by a writing executed by
both parties. This Agreement shall be binding on the parties hereto, their
successors and assigns.
17.2. Buyer and Seller represent and warrant that the recitals contained herein
are true and accurate as of the date of execution of this Agreement. All warranties
and representations by Seller and Buyer shall survive the closing of this
transaction.
17.3. All notices required hereunder shall be given by depositing in the U.S.
mail, postage prepaid, certified mail, remm receipt requested, to the following
addresses (or such other addresses as either party may notify the other)
To the Seller:
Michael & Yolanda Sweat
322 NE 40th Ave.
Columbia Heights, MN 55421
To the Buyer:
Columbia Heights Economic Development Authority
Attention: Randy Schumacher
590 40th Ave. NE
Columbia Heights, MN 55421
18. Assienment. Purchaser shall the right to assign its interest under this Agreement,
without first obtaining the consent of Seller, provided that Purchaser shall remain liable to Seller
under this Agreement.
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19. Survival. All of the terms, covenants, conditions, representations, warranties and
agreements contained in this Agreement shall survive and continue in force and effect and shall
be enforceable after the closing.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written.
BUYER:
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
By Q_...~ J~/ff.~ ~ '
Its President- Don Murzyn, dr.
/
Its Executive Director-Walter R.
Fehst
SELLER:
DATE OF FINAL ACCEPTANCE
Sweat Purchase Agreement
Page 7 of 7