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HomeMy WebLinkAboutNovember 22, 1993 Work SessionNOTICE OF OFFICIAL MEETING Notice is hereby given that an official meeting is to be held in the City of Columbia Heights as follows: Meeting of: MAYOR, C1TY COUNCIL, AND CITY MANAGER Date of Meeting: MONDAY, NOVEMBER 22, 1993 Time of Meeting: IMMEDIATELY FOLLOWING REGULAR COUNCIL MEETING Location of Meeting: CITY HALL COUNCIL CHAMBERS 590 40TH AVENUE N.E. Purpose of Meeting: WORK SESSION Status Update on Sheffield Neighborhood The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the City Council Secretary at 782-2800, Extension 209, to make arrangements. (TDD/782-2806 for deaf only) PURCHA$1~ AGReeMeNT RECEIVED OF the City of Columbia Heights (hereinafter referred to as the "Buyer") the sum of THIRTY THOUSAND AND NO/100 ($30,000.00) DOLLARS Cash to be held in the trust account of Hance & LeVahn, Ltd., as earnest money and in part payment for the purchase of property listed on the attached Exhibits A and B, situated in the City of Columbia Heights, County of Anoka, State of Minnesota, all of which property Leland W. and Audrey K. Stauch (hereinafter referred to as the "Sellers") have this day sold to the Buyer for the sum of EIGHT HUNDRED FIFTY THOUSAND FIVE HUNDRED AND NO/100 ($850,500.00) DOLLARS, which shall be payable in cash at closing. 1. Allocation of Purchase Price. The purchase price for the properties described in Exhibits A and B is FIFTY SIX THOUSAND SEVEN HUNDRED AND NO/100 ($56,700.00) DOLLARS per property. The portion of the purchase price, to be paid at each closing, shall be calculated by multiplying the units to be transferred times the unit price. Further, if Sellers are unable to provide the evidence of title as required under paragraph 7, Buyer shall exclude such properties from the closing and shall be granted a credit of FIFTY SIX THOUSAND SEVEN HUNDRED AND NO/100 ($56,700.00) DOLLARS for each of the properties so excluded. 2. Sellers' Claims Aqainst Buyer. Sellers have asserted certain claims against Buyer related to the issuance of work orders against the properties, the posting of properties, the eviction of Sellers' tenants and other conduct which Sellers believe to have caused them damage. By entering into and closing pursuant to this agreement, Sellers do not waive their claims, but rather retain the right to pursue their claims against Buyer and its agents or employees. Provided, nevertheless, Buyer may, at the time of closing, increase the purchase price to be paid hereunder to SEVENTY THOUSAND AND NO/100 ($70,000.00) DOLLARS per unit for a total consideration of ONE MILLION FIFTY THOUSAND AND NO/100 ($1,050,000.00) DOLLARS, and in that instance Sellers shall release all claims against Buyer, its agents and employees. This provision shall constitute an offer in compromise of threatened litigation and as such, shall not be admissible in such litigation. The allocation provision of paragraph 1 shall be applicable to this provision, however, the unit price shall be increased to SEVENTY THOUSAND AND NO/100 ($70,000.00) DOLLARS. 3. Closing. The closing shall be conducted in two separate transactions. Closing on the properties listed on Exhibit A shall be held on or before December 15, 1993. Closing on the properties listed on Exhibit B shall be held on January 14, 1994. 4. Dismissal of Pending Charges. Buyer has filed various criminal charges against Sellers alleging that Sellers operated various properties within the City of Columbia Heights without a license. Buyer shall dismiss all such charges with prejudice within five (5) days of acceptance of this agreement. 5. Taxes and Special Assessments. Buyer shall pay its prorata share of the real estate taxes and installments of special assessments due and payable in the year of closing and all such taxes and installments of special assessments in subsequent years. Sellers shall pay their prorata share of the real estate taxes and installments of special assessments due and payable in the year of closing and all such taxes and installments of special assessments in prior years. 6. Delivery of Deed. Subject to performance by the Buyer, Sellers agree to execute and deliver a Warranty Deed conveying marketable title to said premises, subject only to the following exceptions: Building and zoning laws, ordinances, State and Federal regulations; Restrictions relating to use or improvement of premises without effective forfeiture provision; Reservation of any minerals or mineral rights to the State of Minnesota; de Utility and drainage easements which do not interfere with present improvements; and e. Rights of tenants under existing leases. 7. Marketable Title and Correction of the Defects. The Sellers shall, within a reasonable time after approval of this agreement, furnish an Abstract of Title, or a Registered Property Abstract, certified to date and to include proper searches covering bankruptcies, and State and Federal judgments and liens. The Buyer shall be allowed ten (10) days after receipt thereof for examination of said title and the making of any objections thereto, said objections to be made in writing or deemed to be waived. If any objections are so made, the Sellers shall be allowed one hundred twenty (120) days to make such title marketable. Pending correction of title, the payments hereunder required shall be postponed, but upon correction of title and within ten (10) days after written notice to the Buyer, the parties shall perform this agreement according to its terms. 2 If said title is not marketable and is not made so within 120 days from the date of written objections thereto as provided, this agreement shall be null and void, at option of Buyer, then neither~principal shall be liable for damages hereunder to the other principal. All money theretofore paid by the Buyer shall be refunded. If the title to said property be found marketable or be so made within said time, and said Buyer shall default in any of the agreements and continue in default for a period of ten (10) days, then and in that case, the Sellers may terminate this contract and on such termination all of the payments made upon this contract shall be retained by said Sellers 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 contract provided such contract shall not be terminated as aforesaid, and provided action to enforce such specific performance shall be commenced within six (6) months after such right of action shall arise. 8. Proration of Expenses. The Buyer and Sellers also mutually agree that prorata adjustments of rents, interest, insurance, utilities and any other operating expenses, shall be made as of the date of closing. 9. Sellers' Covenants. Sellers covenant that buildings, if any, are entirely within the boundary lines of the property and agree to remove all personal property not included herein and all debris from the premises prior to possession date. 10. Possession. The Sellers further agree to deliver possession on date of closing provided that all conditions of this agreement have been complied with. 11. Fire Damaqe. In the event this property is destroyed or, substantially damaged by fire or any other cause before the closing date, this agreement shall become null and void, at the Buyer's option, and all monies paid hereunder shall be refunded to him. 12. "AS IS" Condition. Buyer, through its agents and employees, has inspected the properties and Buyer is aware that the properties are vacant and unoccupied, require repair and are subject to work orders issued by Buyer. Buyer agrees to purchase the property in "AS IS" condition. If a fire loss occurs to any of the properties prior to closing, Sellers shall either make the repairs necessary to return the property to its pre-fire condition or assign the insurance proceeds to Buyer. 13. Sales Commissions. Sellers agree to hold Buyer harmless from any claim for sales commissions arising out of this transaction to the extent that such claims arise out of agreements claimed to have entered into with Sellers. 14. Acceptance. It is understood that Buyer has until November 24, 1993, to accept the terms and conditions of this purchase agreement. The delivery of all papers and monies shall be made at the office of Hance & LeVahn, Ltd., 2401 Lowry Avenue Northeast, Suite 200, Minneapolis, Minnesota. SELLERS: Dated: Leland Wi Stauch ' Dated: 1t- 2 -?3 Audrey ~St'auc~-'- Dated: BUYER: CITY OF COLUMBIA HEIGHTS By: Its: 4 EXHIBIT A 4655 - 57 Fillmore Street N.E. 4636 - 38 Pierce Street N.E. 4649 - 51 Fillmore Street N.E. 4630 - 32 Pierce Street N.E. 4531 - 33 Fillmore Street N.E. 4625 - 27 Fillmore Street N.E. 4535 - 37 Taylor Street N.E. 4643 - 45 Fillmore Street N.E. 4607 - 09 Fillmore Street N.E. 4642 - 44 Pierce Street N.E. EXHIBIT B 4519 - 20 Taylor Street N.E. 4654 - 56 Pierce Street N.E. 4618 - 20 Pierce Street N.E. 4556 - 58 Fillmore Street N.E. 4545 - 47 Fillmore Street N.E.