HomeMy WebLinkAboutOrdinance 1294ORDINANCE NO. 1294
BEING AN ORDINANCE AMENDING ORDINANCE NO. 853. CITY CODE OF
1977, AUTHORIZATION TO CONVEY CERTAIN REAL ESTATE LOCATED ON
4600 BLOCK BETWEEN PIERCE STREET AND FILLMORE STREET
The City of Columbia Heights does ordain:
Section 1:
The City of Columbia Heights may convey unto
First Choice Homes, Inc., the real property
described as follows, to wit:
All of Lots 11, 12, 13, 14, and the west
thirty-five (35) feet of Lots 10 and 15, Block
1, Sheffield's Subdivision, Anoka County,
Minnesota.
Section 2:
The Mayor and City Manager are herewith
authorized to execute deeds to effectuate the
conveyance of said real estate subject to the
terms, purchase price, and conditions
specified in the attached agreement labeled
"Exhibit A."
Section 3:
This ordinance shall be in full force and
effect from and after thirty (30) days after
its passage.
First Reading: November 7, 1994
Second Reading: November 14, 1994
Date of Passage: November 14, 1994
Offered by:
Ruettimann
Seconded by:
Peterson
Roll call: All ayes
~.~ ~ Jayor ~6s&p~ Sturdevan%
o-Anne Student, C~uncil Secretary
~ bere~y certify that the afore§oing ordinance |s a true and correct copy of this
ordinance presented to and adopted by the C|t¥ Council of the C|ty of Columbia
Heights at a duly authorized meeting thereof held on the 14th day of November~
1994 shown by the minutes of ng in my presence,
as said ~.~ti
O Clerk
S~%LE & DEVELOPMENT AGREEMENT
RELATING TO
THE SHEFFIELD REDEVELOPMENT
BY AND BETWEEN THE
CITY OF COLUMBIA HEIGHTSv MINNESOTA
AND
FIRST CHOICE HOMESv INC.,
A MINNESOTA CORPORATION
THIS AGREEMEI~T, made and entered into this 16th day of
November , 1994, by and between the city of Columbia Heights, a
municipal corporation, and political subdivision of the State of
Minnesota, (hereinafter called the "City"), and First Choice
Homes, Inc., a Minnesota corporation (hereinafter called the
"Developer");
WITNESSETH THAT, in the joint and mutual exercise of their
powers and in consideration of the mutual covenants contained
herein, the parties recite and agree as follows:
Section 1. Recitals.
1.01. The propertY. The City now owns the property
described in the attached Exhibit "A", (the "Property"), located
in the City of Columbia Heights, Anoka County, Minnesota, which
Property is currently part of the existing Sheffield plat.
1.0Z. Subdivision. The Developer will make application to
the City under the City zoning ordinance for approval to re-plat
and develop the Property into 18 lots with an average width of 64
feet, for single family residential use. Said application shall
be at the sole cost to Developer and shall be in lieu of any lot
split/division procedure. Accordingly, any park dedication as
set forth in Code Section 9.406 (6) is deemed waived upon
execution of this Agreement. In conjunction with the re-platting
process, the City will consider the rezoning of the Property to
R-1 single family residential. The City will make a good faith
effort to assure an expedient approval of the re-plat.
1.0S. Facilities and Project. The Developer, in accordance
with City approval, plans to construct or cause to be constructed
on the Property single family homes, and to dedicate certain
lands to the City as needed for street right-of-way and
utilities. The Developer shall also declare by restrictive
covenant certain controls on the style, exterior architectural
features, materials, color selections, etc. of the homes to be
constructed, which restrictive covenants shall be submitted to
the City for review and approval by the architectural review
board, as set forth below, at the same time as the application
for re-plat. The architectural review board will be established
prior to or at the time of application for re-plat and submission
of the proposed restrictive covenants and shall consist of one
representative from the City and one from the Developer. If the
architectural review board reaches an impass as to approval of
the proposed restrictive covenants, the parties agree that
Councilmember Peterson shall have the authority to arbitrate and
resolve the dispute, with his decision being final and binding
upon the parties. The restrictive covenants, as approved, shall
be recorded against the Property.
Section 2. Sale/Purchase of Property.
2.01. Sale. The City agrees to sell the Property to
8Developer and the Developer agrees to purchase the Property from
the city for the purchase price of $180,000.00. Said purchase
price represents a base price of $10,000.00 per lot (18 proposed
lots). Developer will purchase the Property on a per lot basis,
with a minimum down payment of $1,000.00 per lot. The balance of
$9,000.00 will be carried on a purchase money mortgage, which
mortgage will be due and payable within 120 days.
2.02. Adiustments to Purchase Price. In the event that 7
lots are sold within 6 months of starting construction on the
model home (as hereinafter set forth), then the purchase price of
the remaining lots will increase by $1,500.00 per lot
($11,500.00) and the purchase price of $180,000.00 as set forth
above shall be amended accordingly. The lot(s) sold to Developer
for construction of the model home shall be excluded from
calculating the number of lots sold within the referenced 6 month
time period, unless the model home is sold within said period.
In the event that 14 lots are sold within 13 months of
starting construction on the model home, then the purchase price
of the final 4 lots will increase by $3,000.00 per lot
($13,000.00), and the purchase price of $180,000.00 shall be
amended accordingly.
2.03. Resident Discount. Developer will provide a
$1,500.00 discount towards the purchase of any lot(s) (excluding
the model) to any current Columbia Heights resident for up to one
year from the date construction is commenced on the model home,
provided however, that the City will receive the full purchase
price for said lot(s) from Developer as set forth above.
Notwithstanding anything to the contrary herein, if Developer
achieves the buyout of 7 lots within the first 6 months from
starting construction on the model home (excluding the model) or
the final 4 lots within 13 months of said initial construction,
then the resident discount will be deducted from those sale
proceeds.
2.04. Performance. In the event Developer fails to
construct homes on at least
9 lots within 2 years; or
13 lots within 3 years
after starting construction on the model home, the City may at
its option declare Developer to be in default of this Agreement.
If default is declared and Developer fails to cure the default as
provided below, the City would be obligated to pay to the
Developer the cost of rough grading, utility relocation, and site
improvement (excluding carrying costs, marketing and
legal/administrative fees) incurred on any of the unsold lots,
which amount is determined by the parties to be $2,000.00 per
lot. If the City exercises its option to declare Developer in
default after said 3 year period, Developer may at its option,
cure the default by purchasing all remaining lots within 30
days of receiving written notice of said default. Any such
notice shall be mailed or otherwise delivered to the registered
address of Developer on file with the Secretary of State.
Section 3. Developer's Representations. The Developer hereby
represents, warrants and covenants to the City that as of the
date of this agreement the statements set forth in this section
are true and correct.
3.01. No Disability. The Developer is a duly organized
Minnesota corporation, authorized to do business in the State of
Minnesota.
3.02. Litiqation. There are no pending or, to the
knowledge of the Developer, threatened actions or proceedings
before any court or administrative agency which will materially
adversely affect the financial condition, business or operation
of the Developer or the ability of the Developer to perform its
obligations under this Agreement.
3.03. Compliance. The Developer will comply with and duly
and promptly perform all of its obligations under this Agreement
and all related documents and instruments.
Section 4. Developer's Undertakinqs.
4.01. Site Grading. Developer will be responsible for
establishing and adhering to a site grading plan, which plan
shall be submitted to the City for pre-approval by the Public
Works Director. The grading plan shall at a minimum specify
house type, finish grades and drainage pattern.
4.02. Utilities. Developer will be solely responsible for
all costs associated with:
a. removal of the existing alley;
b. the underground relocation of all power lines,
telephone and cable television;
c. the placement of 8 ornamental street lights.
4.03 New Construction. Subject to the default provisions
contained in Section 2, Developer shall be solely responsible for
the construction, marketing and sales of the single family homes
on the Property. The minimum selling price of said homes shall
be $80,000.00.
4.04. Floor Plan. Developer will be responsible for
submitting to the city, and obtaining pre-approval of the floor
plans and front elevations of the 4 home styles previously
submitted with Developer's proposal and to be constructed on the
Property. Said pre-approval must be obtained before the City
will issue any further building permits, other than the permit
issued for basement construction of the model home as set forth
in Section 6 hereof.
4.05. Setbacks. Developer agrees that the site development
shall include 12 foot combined minimum setbacks (5 feet garage
side/7 feet house side), and that all driveways and sidewalks
shall be hard surfaced.
4.05. Landscaping. Developer will provide a $3,000.00
yard/landscaping package included in the sale price of each home.
Said package will specify, at a minimum, tree sizes/type/number,
sodded yards, foundation plantings/beds, and any necessary
retaining walls.
4.07. Fees and Charges. The Developer will pay to the
City, when due, all permit fees, connection charges, user charges
or other charges lawfully imposed by the City with respect to the
Property, provided that said charges are no greater than those
charged by the City to a person building the same home on a
privately owned lot. With regard to connection charges, the City
will be receiving SAC credits due to the redevelopment of the
Property and will provide this credit on to the Developer on a
per lot basis upon application for the building permit.
Section 5. city's Undertakinqs.
5.01. Existing Improvements. The City will be responsible
for removing existing structures, foundations and debris (site
concrete/paving other than the alley) from the Property and will
assure that all water and sewer services are stubbed to the
boulevard at no cost to Developer.
Section 6. Model Home. Developer agrees to construct one model
home on the Property. Developer desires to commence construction
on said model in 1994 in order to be ready for the Spring Home
Preview, which the City acknowledges is in the best interests of
the parties. In order to accommodate the 1994 construction of
the model home, the City agrees to allow Developer to construct
preliminary site improvements (consisting of masonry and concrete
work on the foundation as well as subgrade sewer and water work)
prior to the effective date of the sale ordinance and completion
of the re-platting process.
Section 7. Default. The failure to meet any condition of this
Agreement shall be an event of default.
7.01. Remedies. If an event of default occurs, the parties
may take one or more of the following actions:
a. suspend performance under this Agreement;
b. terminate the Agreement, thereby rendering void
any promises or approvals contained in this
Agreement.
IN WITNESS WHEREOF, the City has caused this Agreement to be
executed in its corporate name by its duly authorized officers;
and the Developer has executed this Agreement the day and year
first above written.
CITY OF COLUMBIA HEIGHTS
h~tu'rd~vant, Mayor -
B~: ~a t r~-~)c~ t~e ~~C i ty Manager
FIRST CHOICE HOMES, INC.
STATE OF MINNESOTA )
) SS.
COUNTY OF ANOKA )
On this ~ day of ~f~ , 1994, before me, a Notary Public
within and for said County, appeared to me personally known, who,
being by me duly sworn, did say that he is~e ~. ~~w~
named in the foregoing instrument, the '~a~e~ ~ of
First Choice Homes, Inc., a corporation under the laws of the
State of Minnesota, on behalf of the corporation, and that this
instrument was signed as his free act and deed.
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