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.