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HomeMy WebLinkAboutEDA AGN 08-03-15AGENDA COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Monday August 3, 2015 6:30pm City Hall, Conference Room 1 1. Call to Order /Roll Call Gary L. Peterson, President Bruce Nawrocki, Secretary /Treasurer John Murzyn, Jr. 2. Pledge of Allegiance 3. Approve Minutes —June 1, 2015 Bobby Williams, Vice President Marlaine Szurek Gerry Herringer Donna Schmitt CONSENT AGENDA Approve financial report and payment of bills for May, 2015 and June, 2015 on Resolution 2015 -13. Motion: Move to approve Consent agenda as presented. PUBLIC HEARING 4. Resolution 2015 -14 — Sale of Property at Peirce St. NE Motion: Move to waive the reading of Resolution 2015 -14, there being ample amount of copies available to the public. Motion: Move to adopt Resolution 2015 -14, approving the sale of land and the Purchase and Redevelopment Agreement between the Columbia Heights Economic Development Authority and the Buyer. REGULAR BUSINESS S. Resolution 2015 -15 - HRA Levy Budget Motion: Move to waive the reading of Resolution 2015 -15, there being ample amount of copies available to the public. Motion: Move to adopt Resolution 2015 -15, Authorizing the Levy of a Special Benefit Levy Pursuant to Minnesota State Statutes, Section 469.033, Subdivision 6 and Approval of a Budget for Fiscal year 2016. 6. Resolution 2015 -16 - EDA Levy Budget Motion: Move to waive the reading of Resolution 2015 -16, there being ample amount of copies available to the public. Motion: Move to adopt Resolution 2015 -16, Resolution of the Economic Development Authority in and for Columbia Heights EDA adopting the 2016 budget and setting the EDA Levy. 7. Administrative Report 8. Other Business 9. Adjourn The next regular EDA meeting will be Tuesday, September 8, 2015 at City Hall. ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF JUNE 1, 2015 IN CONFERENCE ROOM 1 The meeting was called to order at 6:30 pm by Chair Peterson. Members Present: Bruce Nawrocki, Donna Schmitt, Gary Peterson, John Murzyn, Marlaine Szurek, Gerry Herringer, and Bobby Williams (arrived at 7 pm). Staff Present: Walt Fehst, Joseph Hogeboom, Loren Wickham, and Shelley Hanson. PLEDGE OF ALLEGIANCE- RECITED 1. CONSENT ITEMS 1. Approve the Minutes from May 4, 2015. 2. Approve the Financial Report and Payment of Bills for April and May 2015 on Resolution 2015 -07. 3. Consideration of Sale of Scattered Site Property -3842 Tyler Street NE RE /MAX has drafted a Purchase and Redevelopment Agreement with Timbercraft Enterprises, Inc. for the sale of a scattered site lot at 3842 Tyler St NE. They are proposing to construct the 2 story model previously approved in the program. The proposed purchase price is $7,500 consistent with previous sales. A closing is proposed for June 12, 2015. Staff recommends approval of the sale of the property located at 3842 Tyler Street NE to Timbercraft Enterprises, Inc. 4. Consideration of Sale of Scattered Site Property -3846 Tyler St NE RE /MAX has also drafted a Purchase and Redevelopment Agreement with Timbercraft Enterprises, Inc. for the sale of a scattered site lot at 3846 Tyler St NE. They are proposing to construct the 2 story model previously approved in the program. The proposed purchase price is $7,500 consistent with previous sales. A closing is proposed for June 12, 2015. Staff recommends approval of the sale of the property located at 3846 Tyler Street NE to Timbercraft Enterprises, Inc. 4uestions by Members: There were no questions. EDA Minutes Page 2 June 1, 2015 Motion by Schmitt, seconded by Szurek, to waive the reading of Resolution 2015 -07, 2015 -08, 2015 -09 there being an ample amount of copies available to the public. All ayes. MOTION PASSED. Motion by Schmitt, seconded by Szurek to approve the consent agenda as presented. All ayes. MOTIONPASSED. EDA RESOLUTION 2015 -07 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENTS FOR APRIL AND MAY 2015 AND PAYMENT OF BILLS FOR THE MONTHS OF APRIL AND MAY 2015. WHEREAS, the Columbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the months of April and May 2015 has been reviewed by the EDA Commission; and WHEREAS, the EDA has examined the financial statements and finds them to be acceptable as to both form and accuracy; and WHEREAS, the EDA Commission has other means to verify the intent of Section 469.096, Subd. 9, including but not limited to Comprehensive Annual Financial Reports, Annual City approved Budgets, Audits and similar documentation; and WHEREAS, financials statements are held by the City's Finance Department in a method outlined by the State of Minnesota's Records Retention Schedule, NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that it has examined the referenced financial statements including the check history, and they are found to be correct, as to form and content; and BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the check history as presented in writing is approved for payment out of proper funds; and BE IT FURTHER RESOLVED this resolution is made a part of the permanent records of the Columbia Heights Economic Development Authority. Passed this 1 st day of June, 2015 MOTION BY: Schmitt SECONDED BY: Szurek AYES: All ayes EDA Minutes Page 3 June 1, 2015 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2015-08 RESOLUTION APPROVING A PURCHASE AND REDEVELOPMENT AGREEMENT (INCLUDING THE SALE OF LAND) BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND TIMBERCRAFT ENTERPRISES, INC. BE IT RESOLVED By the Board of Commissioners ( "Board ") of the Columbia Heights Economic Development Authority ( "Authority ") as follows: Section 1. Recitals. 1.01. The Authority has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections 469.090 to 469.108 ( "EDA Act "). 1.02. The Authority and Timbercraft Enterprises, Inc. (the "Buyer ") have proposed to enter into a Purchase and Redevelopment Agreement (the "Contract"), setting forth the terms and conditions of sale and redevelopment of certain property owned by the Authority, located at 3842 Tyler Street NE and described as WALTONS 1ST SUB OF RES HILLS, CITY OF COLUMBIA HEIGHTS LOT 7, BLK 4, WALTONS 1ST SUB OF RESERVOIR HILLS, Anoka County, Minnesota (the "Property"). 1.03. Pursuant to the Contract, the Buyer will acquire the Property and will construct a single family home, subject further to the City's zoning and building codes and policies. 1.04. The Authority has on this date conducted a duly noticed public hearing regarding the sale of the Property to the Buyer, at which all interested persons were given an opportunity to be heard. 1.05. The Authority finds and determines that conveyance of the Property to the Buyer has no relationship to the City's comprehensive plan, in that no amendment or modification of the comprehensive plan is required for the conveyance or redevelopment of the Property. The activities of the parties under the Contract implement housing goals of the City's Comprehensive Plan: "Promote and preserve the single - family housing stock as the community's strongest asset." and "Provide a variety of life-cycle housing opportunities within the community." 1.06. The Board has reviewed the Contract and finds that the execution thereof and performance of the Authority's obligations thereunder are m the public interest and will further the objectives of its general plan of economic development and redevelopment, because it will further the above - stated housing goals. Section 2. Authority Approval: Further Proceeding . 2.01. The Contract as presented to the Board, including the sale of the Property described therein, is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Contract and any documents referenced therein requiring execution by the Authority, including without limitation the deed, and to carry out, on behalf of the Authority, its obligations thereunder. 2.03. Authority and City staff are authorized and directed to take all actions to implement the Contract. EDA Minutes Page 4 June 1, 2015 Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this I` day of June, 2015. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2015-09 RESOLUTION APPROVING A PURCHASE AND REDEVELOPMENT AGREEMENT (INCLUDING THE SALE OF LAND) BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND TIMBERCRAFT ENTERPRISES, INC. BE IT RESOLVED By the Board of Commissioners ( "Board ") of the Columbia Heights Economic Development Authority ( "Authority ") as follows: Section 1. Recitals. 1.01. The Authority has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections 469.090 to 469.108 ( "EDA Act "). 1.02. The Authority and Timbercraft Enterprises, Inc. (the "Buyer ") have proposed to enter into a Purchase and Redevelopment Agreement (the "Contract "), setting forth the terms and conditions of sale and redevelopment of certain property owned by the Authority, located at 3846 Tyler Street NE and described as WALTONS 1 ST SUB OF RES HILLS, CITY OF COLUMBIA HEIGHTS LOT 6, BLK 4, WALTONS I ST SUB OF RESERVOIR HILLS, Anoka County, Minnesota (the "Property"). 1.03. Pursuant to the Contract, the Buyer will acquire the Property and will construct a single family home, subject further to the City's zoning and building codes and policies. 1.04. The Authority has on this date conducted a duly noticed public hearing regarding the sale of the Property to the Buyer, at which all interested persons were given an opportunity to be heard. 1.05. The Authority finds and detennines that conveyance of the Property to the Buyer has no relationship to the City's comprehensive plan, in that no amendment or modification of the comprehensive plan is required for the conveyance or redevelopment of the Property. The activities of the parties under the Contract implement housing goals of the City's Comprehensive Plan: "Promote and preserve the single - family housing stock as the community's strongest asset." and "Provide a variety of life -cycle housing opportunities within the community." 1.06. The Board has reviewed the Contract and finds that the execution thereof and performance of the Authority's obligations thereunder are in the public interest and will further the objectives of its general plan of economic development and redevelopment, because it will further the above - stated housing goals. Section 2. Authority Approval; Further Proceedings. 2.01. The Contract as presented to the Board, including the sale of the Property described therein, is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. EDA Minutes Page 5 June 1, 2015 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Contract and any documents referenced therein requiring execution by the Authority, including without limitation the deed, and to carry out, on behalf of the Authority, its obligations thereunder. 2.03. Authority and City staff are authorized and directed to take all actions to implement the Contract. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this I` day of June, 2015. 1. Consideration of Sale of 4631 Pierce Street NE Jeff Mandicks from My Home Detail, Inc. has approached the City about purchasing an EDA owned lot at 4631 Pierce St NE. Recently, staff completed an inventory of lots that the City and EDA own for possible sale or inclusion in the Scattered Sites Housing Program. ReMAX has evaluated this lot and estimates the sale price at $25,000 based on comparable sales in the City. Anoka County Property tax records indicate the 2015 estimated market value at $50,600. Discussion at the last meeting brought a consensus from the members that the selling price should be in the range of $20,000425,000. Staff recommends holding firm on the sale price of $25,000. This is still a 50% reduction from the estimated market value. This lot is not included in the Scattered Sites Housing Program but staff recommends the sale of this lot should include a purchase and redevelopment agreement. This agreement includes a reverter clause and a 10 year deed restriction requirement of owner occupancy. In order to sell this property the EDA must hold a public hearing first. Staff recommends the EDA authorize staff to publish a public hearing for the sale of 4631 Pierce St NE and to enter into negotiations with My Home Detail, Inc. for the sale of property contingent on EDA approval. Ouestions /comments: Nawrocki asked whether the lot was already considered sold since there is a "sold sign" on the property. Wickham said it is not sold, he was not aware of any "sold" signs on the property, and that a Public Hearing needs to be held before the property can be sold. EDA Minutes Page 6 June 1, 2015 Jeff Mandicks from My Home Detail admitted that he had placed a sign on the property in anticipation of the new construction. Mandicks went on to say that he felt $25,000 was too high for this lot since the scattered site lots were sold for $7,500. He thought a price of $15,000 was more appropriate and his buyer would be willing to go that high. He said a price of $25,000 could be a deal breaker. Hogeboom explained that the scattered site lots were purchased with different funds and are part of a TIF District which affects the amount of tax the City will receive from them, therefore they were priced differently. He also stated that the scattered site lot on Reservoir was sold for $35,000 which is more than the price the EDA has set for this Pierce Street lot. Schmitt said the price of $20,000 - $25,000 was decided at the last meeting and the price of $15,000 that Mr. Mandicks suggests was not approved. Nawrocki agreed. He also said some of the members felt the price of $7,500 for the scattered site lots was too low, but was agreed to as it allowed for extra amenities to be included in the construction of the home itself. Mandicks stated he has three other parties who may be interested in some of the other lots owned by the City or EDA, so he would like to have prices established on them so he and his potential buyers have an idea of the total cost to construct new homes on these parcels. Staff said they would work on that over the next month and bring back recommendations to the EDA for approval. Mandicks also asked who would be the responsible party for the retaining wall on this site. Wickham said he thought it was part of this property site, but will check with the Public Works Director to verify that it is not on City property. Motion by Herringer, seconded by Nawrocki, to waive the reading of Resolution 2015 -10, there being ample copies available to the public. All ayes. MOTIONPASSED. Motion by Herringer, seconded by Nawrocki, to adopt Resolution 2015 -10, calling for a public hearing to consider selling property at 4631 Pierce St NE for $25, 000 and to include the reverter clause and a 10 year deed restriction requirement. Ayes- Szurelr Murzyn, Herringer, Nawrocki, Peterson Nays- Schmitt MOTION PASSED. EDA Minutes Page 7 June 1, 2015 Columbia Heights Economic Development Authority RESOLUTION 2015 -10 RESOLUTION CALLING FOR A PUBLIC HEARING TO CONSIDER SELLING PROPERTY AT 4631 PIERCE ST NE AND TO ENTER INTO NEGOTIATIONS FOR THE PURCHASE AND REDEVELOPMENT OF SAID PROPERTY WHEREAS, the City Council authorized purchase of the blighted property on August 25, 2008 with the intent to demolish and resale, and WHEREAS, Pursuant to State Law a Public Hearing will be published in the City's authorized newspaper, and WHEREAS, The Authority intends to convey the Subject Parcel to a contractor that will enter into a redevelopment contract to construct an owner occupied home NOW, THEREFORE BE IT RESOLVED, that the Columbia Heights Economic Development Authority (EDA) staff are authorized to publish a public hearing to consider selling property at 4631 Pierce St NE. and to enter into negotiations for the purchase and redevelopment of said property. I certify that the above resolution was adopted by the Columbia Heights Economic Development Authority. PASSED THIS 1" Day of June, 2015. OFFERED BY: Herringer SECOND BY: Nawrocki ROLL CALL: Ayes - Szurek, Murzyn, Hettinger, Nawrocki, Peterson Nays - Schmitt 2. Consider the Purchase of 4641 Polk St NE Anoka County Community Action Program ( ACCAP) owns the duplex at 4641 Polk Street and has approached the city to purchase it. The City previously purchased properties at 4641 & 4647 Tyler St NE from ACCAP. ACCAP approached the city before going to the open market because they support our redevelopment efforts in this area. Anoka County Property Tax records indicate a 2015 Estimated Market Value of $151,500. Staff offered them $75,000 after the last meeting and they accepted with conditions. Wickham said they want to partner with the City for the redevelopment of this site. He told members that the conditions are not clear but suggests they want to possibly be the builder, and that they want owner assistance ($25,000) from the City to help a low income purchaser qualify. ACCAP is also seeking proof that it will be torn down and replaced with affordable housing. To date the City /EDA has purchased 7 parcels in the Sheffield neighborhood and demolished all the buildings associated with these parcels. The majority of the parcels have been located on Polk Street. There has been a significant decrease in crime and calls for service as well as code enforcement issues on Polk Street. The Police Department supports the purchase of this property. EDA Minutes Page 8 June 1, 2015 Staff recommends entering into negotiations for the purchase of a duplex at 4641 Polk Street, by approving the Resolution authorizing a purchase price up to $75,000 but wants direction regarding the conditions set by ACCAP. Questions /comments by Members: Herringer didn't think we should lock ourselves into these conditions. Wickham agreed and said we should do as we have done in the past and that is to purchase the property with the intent of having a single family home on this lot. The City can either demolish the structure and sell to a builder for a new single family home, or possibly partner with a builder who could completely renovate it and convert to a single family home. Peterson said we should counter again to purchase it for $75,000 with no conditions. At the very least, Condition #3 should be crossed out and to change the "demolish clause" to "redevelop" as a single family home. Motion by Herringer, seconded by Szurek, to waive the reading of Resolution 2015 -11, there being ample copies available to the public. All ayes. MOTIONPASSED. Motion by Herringer, seconded by Szurek, to adopt Resolution 2015 -11, approving the acquisition of 4641 Polk St NE for $75, 000 without any additional conditions and to authorize the EDA President and the EDA Executive Director to execute an agreement for the same. All ayes. MOTIONPASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION 2015 -11 RESOLUTION AUTHORIZING EXECUTION OF A PURCHASE AGREEMENT FOR CERTAIN REAL PROPERTY LOCATED AT 4641 POLK STREET NORTHEAST IN THE CITY AND ASSIGNMENT THEREOF TO THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Section 1. Recitals. 1.01. The Columbia Heights Economic Development Authority (the "Authority ") administers the Downtown CBD Redevelopment Project (the "Project ") within the City, which was established under Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Act "). 1.02. The Authority has undertaken a program to acquire homes in the Project in order to address foreclosure problems and remediate and prevent the emergence of blight. 1.03 City staff is negotiating a Real Estate Purchase Agreement with the Anoka County Community Action Program ACCAP (the "Seller ") dated as of May 15, 2015 including all related addenda and disclosures thereto (collectively, the "Purchase Agreement "), for real property located at 4641 Polk Street Northeast and legally described as follows: SHEFFIELDS SECOND SUB., CITY OF COLUMBIA HEIGHTS EDA Minutes Page 9 June 1, 2015 TH PT OF LOT 23 LYING N OF S 20 FT OF SD LOT 23 & LOT 24 BLK 1 SHEFFIELDS 2ND SUB (the "Property "), which Purchase Agreement is contingent upon approval by the Economic Development Authority. 1.04. The Purchase Agreement will be prepared once a price is negotiated and on file with the City Manager, and/or the Executive Director of the EDA. Section 2. Approval and Assignment. 2.01. The Purchase for the Property is hereby approved, and the execution of the Purchase Agreement by the EDA is hereby ratified. Pursuant to the Purchase Agreement, the EDA will purchase this Property for up to $75,000 from its EDA TIF fund 376 as part of the scattered site program. City staff and officials are authorized and directed to take all such other actions to complete the purchase of the Property, including without limitation execution of all documents and agreements related to such transaction. 2.02. Contingent upon approval of the Authority, the City hereby assigns its interests in the Purchase Agreement to the Authority. City staff and officials are authorized and directed to take all such other actions to complete the assignment of the City's interests in the Purchase Agreement to the Authority, including without limitation execution of any documents and agreements necessary to effectuate such assignment. Passed this 1" day of June Offered by: Herringer Second by: Szurek Roll Call: All ayes ATTEST President Gary L. Peterson Shelley Hanson, Secretary 3. Redevelopment Updates /Other Business Northeast Business Center- Hogeboom told members that Swervo Redevelopment Company has closed on the office building and they have submitted plans for the interior demolition of the current office space. They plan on renovating the building for future office use as they secure tenants. Huset Park - Hogeboom stated that Dominium is still negotiating with BNC for the purchase of the remaining piece for construction of a senior independent apartment building. The process is slow going, but it is still anticipated to happen. EDA Minutes Page 10 June 1, 2015 Grand Central Properties - Hogeboom told members that the builder has been in contact with the HOA of Grand Central Lofts Condo building to set up a meeting with them to discuss amenities they would like to see included in the proposed plan that could be utilized by both buildings. Nawrocki asked about whether there has been any interest in the commercial piece. Hogeboom told members that he isn't aware of anyone being interested in the site to date. Former Blockbuster Site - Hogeboom stated that construction is underway for the new building and renovation of the existing building. He said they are expected to open by October. Herringer said there may be room on this site for a Gateway to Columbia Heights sign and that the developer should be contacted regarding this possibility if the City so chooses. Nawrocki asked if there was any update on the Rainbow Mall site. Hogeboom stated the temporary liquidation business is now closed, and as far as he knows there has been no further interest in the site by any other businesses. Nawrocki said he thought Ace Hardware was taking over the parking lot with their outdoor storage and garden center. He felt they were taking up a lot of the parking in front of the remaining businesses. Hogeboom stated that Ace has a CUP for the Garden Center and the use of the parking lot is an issue between Brixmoor and the tenants. The meeting was adjourned at 7:24 pm. Respectfully submitted, Shelley Hanson Secretary w V O mn so 0 7 X CD 13 0 m 0 0 3 0' v CD rMIL rMIL 0 rMIL I< r* h 0 0 cr 2 rMIL N m m ;u X x m 0 -u < m m m z z z p p c =i =i m c c C) M m c m +n G) C c r v v z m m m r r z z M m r p z m M -i X m � 3 3 m z m m m C7 0 n O O O z z z ? W N n x m n x in m n O z i D m O 1l C7 O z m z 0 [D w o y y y rnn z z \m x x n \H x NZ [i oy n �z x Nn H H z � n �r ooarooxHo 9 z fm HC>NH. 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I O M no � Moo rnomo 0o00o0oo O W 00 0161 m 0 00 JO M O J O O o 0 00 00 0 I OH [IN nK WW to to I ro N J 1010 l0 10 in OO 1D 10 10 H WO 61 00 IO IO 000 w 1000100 00000000 1 OO I I I I I J[+ I I I I I Q 1 I I I I J0r I I 1 I I I I I I I H IIJ � N 1 11 I 1 Ax AM QM H O H b r c 2 b C Z .l 0 m m H 77 O H O b r Ry m n 0 x d w H z H m ey � N 0 0 0 0 0 0 0 N to 0 W N J rn W N w N J W J m N ' I I h] IC I H I (n I m I cy trCJ 2 l ey z Imb I H r 1 m IZ I n 1C I I m I m I I �] Icy I 1bb Izn I rJ H I I H � I Z H I O fro 10ro I n w n m mH m w 1 O bb 1Zn cl I t7 H 1 I H lfi z H I ro I 0 ro IOO nw ImH I [n m I [n fy I 1 m m bS Irb I b H Izz I n H Imz I n 1H r b min cam m r�ro H onz hJOb z m H H b b—r H �P r.. y IJII{ �O .H owm wg H x ro C 0 0 z H x m ro m H O d w x ro tiro ba za N 01* 'G ry m N oC VIW a. m HH x F' m7 O (D C O x 4 C Z w 0 N O lP C) G) H tnK N OO 77'•J cn 00 �r . C N$ Jm H �b M.M. x Jw CH COLUMBIA HEIGHTS AGENDA SECTION ITEM NO. MEETING DATE AUGUST 3, 2015 CITY OF COLUMBIA HEIGHTS - ECONOMIC DEVELOPMENT AUTHORITY ITEM: Public Hearing to consider the sale of 4631 Pierce Street NE DEPARTMENT: Community Development CITY MANAGER'S APPROVAL: BY /DATE: Loren Wickham, Asst. Director 7/27/15 BY /DATE: BACKGROUND: Home Detail approached the City last spring about purchasing the EDA owned lot at 4631 Pierce St. NE. A public hearing must be held before property can be sold. The 2015 Estimated Market Value is $50,600 according to Anoka County property records. Earlier this year we were considering adding this lot into our Scattered Site Program and listing it at $25,000. The EDA should establish a price to sell the lot for and if the current interested party doesn't accept it we should market and sell the lot to another contractor /individual. The resolution prepared for you doesn't specify a specific buyer. STAFF RECOMMENDATION: Staff recommends approving to sell 4631 Pierce Street NE and entering into a purchase and redevelopment agreement with a buyer to construct an owner occupied single family house. RECOMMENDED MOTION(S): Motion: Move to waive Resolution 2015 -14, there being ample copies available to the Public. Motion: Move to adopt Resolution 2015 -14 approving to sell 4631 Pierce Street NE ATTACHMENTS: Resolution 2015 -12 Map of 4631 Pierce Street NE Purchase and Redevelopment Agreement edaletter080315 -sale of 4631 Pierce COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2015 -14 RESOLUTION APPROVING THE SALE OF LAND AND PURCHASE AND REDEVELOPMENT AGREEMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND BUYER BE IT RESOLVED By the Board of Commissioners ( "Board ") of the Columbia Heights Economic Development Authority ( "Authority ") as follows: Section 1. Recitals. 1.01. The Authority has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ( "EDA Act "). 1.02. The Authority and purchaser (the "Redeveloper ") have proposed to enter into a PURCHASE AND REDEVELOPMENT AGREEMENT (the "Contract "), setting forth the terms and conditions of sale and redevelopment of certain property owned by the Authority located at 4631 Pierce Street NE and described as LOT 4, BLK 1, PARKVIEW TERRACE to Columbia Heights, Anoka County, Minnesota (the "Redevelopment Property "). 1.03. Pursuant to the Contract, the Redeveloper will acquire the Redevelopment Property and construct an owner occupied single family house, subject to the City's zoning and building codes. 1.04. The activities of the Authority under the Contract implement housing goals of the City's Comprehensive Plan: "Promote and preserve the single - family housing stock as the community's strongest asset." and "Provide a variety of life -cycle housing opportunities within the community." 1.05. The Board has reviewed the Contract and finds that the execution thereof and performance of the Authority's obligations thereunder further the goals of the Comprehensive Plan and are in the best interests of the City and its residents. Section 2. Authority Annroval: Further Proceedings. 2.01. The Contract as presented to the Board, including the sale of the Redevelopment Property described therein, is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Contract and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority its obligations thereunder. 2.03. Authority and City staff are authorized and directed to take all actions to implement the Contract. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 3rd day of August, 2015. ATTEST: Secretary 2 President f r :. s r Fl Fg f GF N1 3�IOYVb77tj °. GU 1. 2. 3. 4. 5. PURCHASE AND REDEVELOPMENT AGREEMENT Parties. This Purchase Agreement is made as of 20_ between the COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic under the laws of Minnesota having its office located at 590 40TH Avenue NE, Columbia Heights, MN (the "Seller "), and (the "Buyer "). Offer /Acceptance. Buyer offers to purchase and Seller agrees to sell real property legally described as follows (the "Property"): [INSERT LEGAL DESCRIPTION] Price and Terms. The price for the Property is pay as follows: Earnest money of hereby acknowledged by Seller, and the balance of which Buyer shall by check, receipt of which is to be paid by certified check on the Date of Closing. The "Date of Closing" shall be or such other earlier or later date as the parties mutually agree. Personal Property Included in Sale. There are no items of personal property or fixtures owned by Seller and currently located on the Property for purposes of this sale. Deed. Upon performance by Buyer, Seller shall deliver a quit claim deed conveying title to the Property to Buyer, in substantially the form attached as Exhibit A (the "Deed "). 421009v45 CL205 -49 6. Real Estate Taxes and Special Assessments. The parties agree and understand that the Property is exempt from real estate taxes for taxes payable in the current year. Seller shall pay on Date of Closing all special assessments levied against the Property as of the date of this agreement, including those certified for payment with taxes due and payable in 20 . [Insert if true: Seller represents that there are no special assessments pending as of the date of this agreement.] If a special assessment becomes pending after the date of this agreement and before the Date of Closing, Buyer may, as Buyer's option: A. Assume payment of the pending special assessment without adjustment to the purchase agreement price of the Property; or B. Require Seller to pay the pending special assessment and Buyer shall pay a commensurate increase in the purchase price of the Property, which increase shall be the same as the estimated amount of the assessment; or C. Declare this agreement null and void by notice to Seller, and earnest money shall be refunded to Buyer. Closing Costs and Related Items. The Seller shall be responsible for the following costs: (a) recording fees and conservation fees for all instruments required to establish marketable title in Seller; (b) deed transfer taxes and conservation fees required to be paid in connection with the Deed be given by Seller; and (c) Seller's broker fees. Buyer shall be responsible for the payment of the following costs: (d) recording fees required to be paid in connection with the Deed to be given by Seller; (e) the cost of the registered property abstract or updated abstract, or in the absence of an abstract, the cost of the premium for an owner's policy of title insurance, and (f) closing fee, if any. Each party shall be responsible for its own attorneys' fees and costs. 8. Sewer and Water. Seller warrants that city sewer is available at the Property line, and that city water is available in the right of way adjacent to the Property. Seller makes no warranty regarding the conditions of any existing water stub from the main to the Property line. Seller advises Buyer to inspect the condition of the water stub. 9. Condition of Property. Buyer acknowledge that they have inspected or have had the opportunity to inspect the Property and agree to accept the Property "AS IS." Buyer has the right, at its own expense to take soil samples for the purpose of determining if the soil is suitable for construction of the dwelling described in section 14 below. If the soil is determined to be unacceptable the Buyer may rescind this agreement by written notice to the Seller, in which case the agreement shall be null and void and all earnest money paid hereunder shall be refunded to the Buyer. Seller makes no warranties as to the condition of the Property. 10. Marketability of Title. As soon as reasonably practicable after the date of this Agreement, Seller shall furnish to Buyer a registered property abstract or an updated 2 421009v45 CL205 -09 abstract of title to the Property, certified to date to include proper searches covering bankruptcies, state and federal judgment and liens. In the absence of an abstract of title, the Seller will provide a title commitment and title insurance. Buyer shall have fifteen (15) business days after receipt of the abstract or title commitment to examine the same and to deliver written objections to title, if any, to Seller. Seller shall have the greater of (i) the number of days remaining until the Date of Closing or (ii) thirty (30) days to have such objections removed or satisfied. 11. Title Clearance and Remedies. If Seller shall fail to have title objections timely removed, the Buyer may, at its sole election: (a) terminate this Agreement without any liability on its part; in which event the earnest money shall be promptly refunded in exchange for a quit claim deed to the Property from Buyer; or (b) take title to the Property subject to such objections. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect either of the following options, as permitted by law: A. Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation; B. Seek specific performance within six months after such right of action arises, including costs and reasonable attorney's fees, as permitted by law. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted by law: C. Seek damages from Seller including costs and reasonable attorney's fees; D. Seek specific performance within six months after such right of action arises 12. Well Disclosure. Seller certifies that Seller does not know of any wells on the Property. 13. Individual Sewage Treatment System Disclosure. Seller certifies that there is no individual sewage treatment system on or serving the Property. 14. Construction and Sale of Dwelling. Buyer agrees that it will construct a new single family dwelling on the Property, intended for sale to a person or persons for residential occupancy (an "Owner Occupant "). This covenant shall survive the delivery of the Deed. A. The single family dwelling described in this Section is referred to as the "Minimum Improvements." 3 421009v45 CL205 -49 B. The Minimum Improvements shall consist of a house with approximately square feet, _ bedrooms, and shall be constructed substantially in accordance with the Scattered Site Housing Program Design Requirements on file in City Hall. Construction plans must be approved by the Com ity Development Department prior to commencement of construction Construction of the Minimum Improvements must be substantially completed by 20 — Construction will be considered substantially complete when the final certificate of occupancy has been issued by the City of Columbia Heights building official. C. Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of the Buyer to construct such Minimum Improvements (including the date for completion thereof), the Seller will fiunish the Buyer with a Certificate of Completion for such improvements. Such certification by the Seller shall be (and it shall be so provided in the Deed and in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants in the Agreement and in the Deed with respect to the obligations of the Buyer and its successors and assigns, to construct the Minimum Improvements and the dates for completion thereof. The certificate provided for in this Section of this Agreement shall be in such form as will enable it to be recorded in the proper office for the recordation of deeds and other instruments pertaining to the Property. If the Seller shall refuse or fail to provide any certification in accordance with the provisions of this Section, the Seller shall, within thirty (30) days after written request by the Buyer, provide the Buyer with a written statement, indicating in adequate detail in what respects the Buyer has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Seller for the Buyer to take or perform in order to obtain such certification. D. The Buyer represents and agrees that until issuance of the Certificate of Completion for the Minimum Improvements: (1) Except for any sale to an Owner Occupant, the Buyer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity (collectively, a "Transfer "), without the prior written approval of the Seller's board of commissioners. The term "Transfer" does not include encumbrances made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing 4 421009v45 CL205 -09 necessary to enable the Buyer or any successor in interest to the Property, or any part thereof, to construct the Minimum Improvements or component thereof. (2) If the Buyer seeks to effect a Transfer to any person or entity other than an Owner Occupant prior to issuance of the Certificate of Completion, the Seller shall be entitled to require as conditions to such Transfer that: (i) any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the Seller, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Buyer as to the portion of the Property to be transferred; and (ii) Any proposed transferee, by instrument in writing satisfactory to the Seller and in form recordable in the public land records of Anoka County, Minnesota, shall, for itself and its successors and assigns, and expressly for the benefit of the Seller, have expressly assumed all of the obligations of the Buyer under this Agreement as to the portion of the Property to be transferred and agreed to be subject to all the conditions and restrictions to which the Buyer is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the Seller) deprive the Seller of any rights or remedies or controls with respect to the Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit the Seller of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Property that the Seller would have had, had there been no such transfer or change. In the absence of specific written agreement by the Seller to the contrary, no such transfer or approval by the Seller thereof shall be deemed to relieve the Buyer, or any other party bound in any way by this Agreement or otherwise with respect to the Property, from any of its obligations with respect thereto. (iii) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Property governed by this subsection E. shall be in a form reasonably satisfactory to the Seller. 5 421009x45 CL205A9 (3) If the conditions described in paragraph (2) above are satisfied then the Transfer will be approved and the Buyer shall be released from its obligation under this Agreement, as to the portion of the Property that is transferred, assigned, or otherwise conveyed. The provisions of this paragraph (3) apply to all subsequent transferors. (4) Upon issuance of the Certificate of Completion, the Buyer may Transfer the Property and/or the Buyer's rights and obligations under this Agreement with respect to such Property without the prior written consent of the Seller [, except to the extent required under paragraph F of this Section]. E. The Buyer, and its successors and assigns, agree that they (a) will use the Minimum Improvements only as a single family dwelling, and in the case of an Owner Occupant, will occupy the Property as a residence, (b) will not rent the Property to any person or entity, (c) will not seek exemption from real estate taxes on the Property under State law, and (d) will not transfer or permit transfer of the Property to any entity whose ownership or operation of the Property would result in the Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City of Columbia Heights or Seller in accordance with this Agreement). The covenants in this paragraph run with the land, survive both delivery of the Deed and issuance of the Certificate of Completion for the Minimum Improvements, and shall remain in effect for ten years after the Date of Closing. F. The Buyer shall use its best efforts to convey the Property (either before or after issuance of the Certificate of Completion) to an Owner Occupant whose household income does not exceed (a) 100% of median income in the case of one or two person household Owner Occupants, or (b) 115% of median income in the case of three or more person Owner Occupants. The term "median income" means the median income in the seven -county metropolitan area, or the State as a whole, whichever is greater, using income data available from the Minnesota Housing Finance Agency as of the date of closing on sale to the Owner Occupant. Prior to closing on sale the Property by Buyer to an Owner Occupant, Buyer shall: (1) Notify the Seller in writing whether the proposed Owner Occupant will meet the income qualifications under this paragraph; and (2) If the proposed Owner Occupant will not meet the income limits, describe Buyer's efforts to find an income - qualified buyer, and (2) If the proposed Owner Occupant will meet the income limits, submit to Seller evidence of Owner Occupant's income in a form satisfactory to Seller, evidencing compliance with the income limits described above. The covenant in this Section applies only to the first sale of the Property to an Owner Occupant, and 6 421009v45 CL20549 does not apply to any subsequent sale by an Owner Occupant to any other person or ply. 15. Revesting Title in Seller upon Happening of Event Subsequent to Conveyance to Buyer. In the event that subsequent to conveyance of the Property or any part thereof to the Buyer and prior to receipt by the Buyer of the Certificate of Completion for of the Minimum Improvements, the Buyer, subject to Unavoidable Delays (as hereafter defined), fails to carry out its obligations with respect to the construction of the Minimum Improvements (including the nature and the date for the completion thereof), or abandons or substantially suspends construction work, and any such failure, abandonment, or suspension shall not be cured, ended, or remedied within thirty (30) days after written demand from the Seller to the Buyer to do so, then the Seller shall have the right to re -enter and take possession of the Property and to terminate (and revest in the Seller) the estate conveyed by the Deed to the Buyer, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to the Buyer shall be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of any default on the part of the Buyer and failure on the part of the Buyer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, the Seller at its option may declare a termination in favor of the Seller of the title, and of all the rights and interests in and to the Property conveyed to the Buyer, and that such title and all rights and interests of the Buyer, and any assigns or successors in interest to and in the Property, shall revert to the Seller, but only if the events stated in this Section have not been cured within the time periods provided above. Notwithstanding anything to the contrary contained in this Section, the Seller shall have no right to reenter or retake title to and possession of a portion of the Property for which a Certificate of Completion has been issued. For the purposes of this Agreement, the term "Unavoidable Delays" means delays beyond the reasonable control of the Buyer as a result thereof which are the direct result of strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the Seller in exercising its rights under this Agreement) which directly results in delays. Unavoidable Delays shall not include delays in the Buyer's obtaining of permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such construction is required under this section of this Agreement. 16. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in the Seller of title to and/or possession of the Property or any part thereof as provided in Section 16, the Seller shall apply the purchase price paid by the Buyer under Section 4 of this Agreement as follows: 7 421009v45 CL20549 (a) First, to reimburse the Seller for all costs and expenses incurred by the Seller, including but not limited to proportionate salaries of personnel, in connection with the recapture, management, and resale of the Property or part thereof (but less any income derived by the Seller from the Property or part thereof in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property or part thereof (or, in the event the Property is exempt from taxation or assessment or such charge during the period of ownership thereof by the Seller, an amount, if paid, equal to such taxes, assessments, or charges (as determined by the Seller assessing official) as would have been payable if the Property were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property or part thereof at the time of revesting of title thereto in the Seller or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Buyer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Minimum Improvements or any part thereof on the Property or part thereof; and any amounts otherwise owing the Seller by the Buyer and its successor or transferee; and (b) Second, to reimburse the Buyer for the balance of the purchase price remaining after the reimbursements specified in paragraph (a) above. Such reimbursement shall be paid to the Buyer upon delivery of an executed, recordable warranty deed to the Property by the Buyer to the Seller. 17. Time is of the essence for all provisions of this contract. 18. Notices. All notices required herein shall be in writing and delivered personally or mailed to the address shown at paragraph 1 above and, if mailed, are effective as of the date of mailing. 19. Minnesota Law. This contract shall be governed by the laws of the State of Minnesota. 20. Specific Performance. This Agreement may be specifically enforced by the parties, provided that an action is brought within one year of the date of alleged breach of this Agreement. 21. No Remedy Exclusive. No remedy herein conferred upon or reserved to the Seller or Buyer is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. 8 421009x45 CL205 -49 22. No Merger of Representations, Warranties. All representations and warranties contained in this Purchase Agreement shall not be merged into any instruments or conveyance delivered at closing, and the parties shall be bound accordingly. 23. Recording. This Agreement shall be filed of record with the Anoka County Registrar of Titles or Office of Recorder, as the case may be. Buyer shall pay all recording costs. 9 421009v45 CL205 -49 In witness of the foregoing, the parties have executed this agreement on the year and date written above. SELLER: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By: Its President STATE OF MINNESOTA COUNTY OF ANOKA } ss. LE Its Executive Director The foregoing was acknowledged before me this day of 20 , by and , the President and Executive Director of Columbia Heights Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic. S -1 421009v45 CL20549 BUYER: M STATE OF MINNESOTA } ss. COUNTY OF ANOKA The foregoing was acknowledged before me this , the of on behalf of the document drafted by: Kennedy & Graven, Chartered 470 U.S. Bank Plaza Minneapolis, MN 55402 S -2 42100905 CL205 -49 day of 20_, by a Minnesota EXHIBIT A to PURCHASE AND REDEVELOPMENT AGREEMENT FORM OF QUIT CLAIM DEED THIS INDENTURE, between the Columbia Heights Economic Development Authority, a Minnesota, a public body corporate and politic (the "Grantor "), and , a Minnesota (the "Grantee "). WITNESSETH, that Grantor, in consideration of the sum of $ and other good and valuable consideration the receipt whereof is hereby acknowledged, does hereby grant, bargain, quitclaim and convey to the Grantee, its successors and assigns forever, all the tract or parcel of land lying and being in the County of Anoka and State of Minnesota described as follows, to -wit (such tract or parcel of land is hereinafter referred to as the "Property "): To have and to hold the same, together with all the hereditaments and appurtenances thereunto belonging. SECTION 1. It is understood and agreed that this Deed is subject to the covenants, conditions, restrictions and provisions of an agreement recorded herewith entered into between the Grantor and Grantee on the of , 20 , identified as "Purchase and Redevelopment Agreement' (hereafter referred to as the "Agreement') and that the Grantee shall not convey this Property, or any part thereof, except as permitted by the Agreement until a certificate of completion releasing the Grantee from certain obligations of said Agreement as to this Property or such part thereof then to be conveyed, has been placed of record. This provision, however, shall in no way prevent the Grantee from mortgaging this Property in order to obtain funds for the purchase of the Property hereby conveyed or for erecting the Minimum Improvements thereon (as defined in the Agreement) in conformity with the Agreement, any applicable development program and applicable provisions of the zoning ordinance of the City of Columbia Heights, Minnesota, or for the refinancing of the same. It is specifically agreed that the Grantee shall promptly begin and diligently prosecute to completion the redevelopment of the Property through the construction of the Minimum Improvements thereon, as provided in the Agreement. Promptly after completion of the Minimum Improvements in accordance with the provisions of the Agreement, the Grantor will furnish the Grantee with an appropriate instrument so certifying. Such certification by the Grantor shall be (and it shall be so provided in the A -1 421009x45 CL205-49 certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants of the Agreement and of this Deed with respect to the obligation of the Grantee, and its successors and assigns, to construct the Minimum Improvements and the dates for the beginning and completion thereof. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Grantee to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance the purchase of the Property hereby conveyed or the Minimum Improvements, or any part thereof. All certifications provided for herein shall be in such form as will enable them to be recorded with the County Recorder, or Registrar of Titles, Anoka County, Minnesota. If the Grantor shall refuse or fail to provide any such certification in accordance with the provisions of the Agreement and this Deed, the Grantor shall, within thirty (30) days after written request by the Grantee, provide the Grantee with a written statement indicating in adequate detail in what respects the Grantee has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Grantor, for the Grantee to take or perform in order to obtain such certification. SECTION 2. The Grantee's rights and interest in the Property are subject to the terms and conditions of Sections 14A, 14B and 15 of the Agreement relating to the Grantor's right to re -enter and revest in Grantor title to the Property under conditions specified therein, including but not limited to termination of such right upon issuance of a Certificate of Completion as defined in the Agreement. SECTION 3. The Grantee agrees for itself and its successors and assigns to or of the Property or any part thereof, hereinbefore described, that the Grantee and such successors and assigns shall comply with Section 14E of the Agreement for a period of —ten years after the date hereof. It is intended and agreed that the above and foregoing agreements and covenants shall be covenants running ring with the land for the respective terms herein provided, and that they shall, in any event, and without regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided in this Deed, be binding, to the fullest extent permitted by law and equity for the benefit and in favor of, and enforceable by, the Grantor against the Grantee, its successors and assigns, and every successor in interest to the Property, or any part thereof or any interest therein, and any party in possession or occupancy of the Property or any part thereof. In amplification, and not in restriction of, the provisions of the preceding section, it is intended and agreed that the Grantor shall be deemed a beneficiary of the agreements and covenants provided herein, both for and in its own right, and also for the purposes of protecting A -2 421009v45 CL205 -09 the interest of the community and the other parties, public or private, in whose favor or for whose benefit these agreements and covenants have been provided. Such agreements and covenants shall run in favor of the Grantor without regard to whether the Grantor has at any time been, remains, or is an owner of any land or interest therein to, or in favor of, which such agreements and covenants relate. The Grantor shall have the right, in the event of any breach of any such agreement or covenant to exercise all the rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach of agreement or covenant, to which it or any other beneficiaries of such agreement or covenant may be entitled; provided that Grantor shall not have any right to re -enter the Property or revest in the Grantor the estate conveyed by this Deed on grounds of Grantee's failure to comply with its obligations under this Section 3. Grantor certifies that it does not know of any wells on the Property. A -3 421009v45 CL205A9 IN WITNESS WHEREOF, the Grantor has caused this Deed to be duly executed in its behalf by its President and Executive Director and has caused its corporate seal to be hereunto affixed this day of 120. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA ) ) ss COUNTY OF ) On this day of 20_, before me, a notary public within and for County, personally appeared and to me personally known who by me duly sworn, did say that they are the President and Executive Director of the Columbia Heights Economic Development Authority (the "Authority") named in the foregoing instrument; that the seal affixed to said instrument is the seal of said Authority; that said instrument was signed and sealed on behalf of said Authority pursuant to a resolution of its governing body; and said and acknowledged said instrument to be the free act and deed of said Authority. Notary Public This instrument was drafted by: Kennedy & Graven, Charted (SJB) 470 U.S. Bank Plaza Minneapolis, MN 55402 A -4 421009v45 CL205 -49 EXHIBIT B To PURCHASE AND REDEVELOPMENT AGREEMENT FORM OF CERTIFICATE OF COMPLETION WHEREAS, the Columbia Heights Economic Development Authority, a public body, corporate and politic (the "Grantor "), conveyed land in Anoka County, Minnesota to , a (the "Grantee "), by a Deed recorded in the Office of the County Recorder [and in the Office of the Registrar of Titles] in and for the County of Anoka and State of Minnesota, as Document Numbers and respectively; and WHEREAS, said Deed contained certain covenants and restrictions set forth in Sections 1 and 2 of said Deed; and WHEREAS, said Grantee has performed said covenants and conditions insofar as it is able in a manner deemed sufficient by the Grantor to permit the execution and recording of this certification; NOW, THEREFORE, this is to certify that all building construction and other physical improvements specified to be done and made by the Grantee have been completed and the above covenants and conditions in said Deed and the agreements and covenants in Sections 14A and 14B of the Agreement (as described in said Deed) have been performed by the Grantee therein, and the County Recorder [and the Registrar of Titles] in and for the County of Anoka and State of Minnesota are hereby authorized to accept for recording and to record, the filing of this instrument, to be a conclusive determination of the satisfactory termination of the covenants and conditions of Sections 14A and 14B of the Agreement and the covenants and restrictions set forth in Sections 1 and 2 of said Deed; provided that the covenants set forth in Sections 14E of the Agreement, and in Section 3 of the Deed, remain in full force and effect through the period stated thereon. Dated: 120. B -1 421009v45 CL205 -49 COLUMBIA HEIGHTS ECONOMIC DEVELOPMEN AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA ) ) ss COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this _ day of 20, by and the President and Executive Director, respectively, of the Columbia Heights Economic Development Authority, on behalf of the authority. Notary Public This document drafted by: KENNEDY & GRAVEN, CHARTERED 470 U.S. Bank Plaza Minneapolis, MN 55402 (612) 337 -9300 B -2 421009v45 CC20549 Home Detail, Inc. 2562 Tournament Players Cir S Blaine, MN. 55449 612 - 599 -4463 MVHomeDetail @me.com I would like to invite all of you to tour our Fridley development, where we are currently constructing a custom home that is similar in design to the Pierce Street home. Out of 39 other companies Fridley chose us for their Gateway West Developments. I believe we received the Fridley project for these reasons; we build variety, we design custom homes, and build to specific needs for our homeowners. We definitely are not a cookie cutter builder. Our homes are as individual as the homeowners we are building for. A large percentage of our homeowners become friends, give referrals and are repeat customers. We are very hands on; we are there from the time we break ground to the day we hand the keys to the new homeowner. We've won awards and appeared in a local home magazine. I understand that Columbia Heights feels that these lots are worth $25,000. I felt that way also when I had 11 lots in Stillwater ranging from $180,000 - $220,000. When the market turned upside down; we were forced to sell the lots at a very reduced rate. What I found was the lots we owned, as hard as it was to accept, were worth a lot less than what we paid for them. Columbia Heights has a similar situation, reduce the lot prices a few dollars and sell 10 new custom homes, which would bring the neighborhood up substantially. Let's start with a custom, 2000 sf. 2 -story on Pierce Street. The home in Fridley is priced at over $300,000. Does Columbia Heights want a $300,000 2 -story going up in one of its neighborhoods? If I were on the council I would vote Yes. Columbia Heights has 4 premium lots on the market at $7,500 that have not sold after almost 4 years. We agree $7,500 is a great price but its odd that there are still 4 premium lots available after 4 years. We would be thrilled to see lot prices at $7,500. Currently we have one signed purchase agreement, and four other customers talking with our finance company. Let's get this deal done and start rebuilding the neighborhood, generate some income for the City, and start a new generation of Columbia Heights families. Houses in Fridley Development: 5735, 5745, 5755, and 5765 on 3'd Street 5901, 5911, 5921, 5931, 5941, 5951, and 5961 on P Street 271 57`h Place Spring Lake Park: (Remodel) 458 Sanbumol Drive Coon Raids: (Renovation) / part of the 2015 Home Remodeling tour 127597 Lane Page 1 of 2 Mid State Excavating Remove existing retaining wall approx. 70'x9' approx. 630 sf. Export existing retaining wall material off site Install & compact a solid base to form a new footing for new retaining wall Install new retaining wall approx. 70'x9' = 630 sf. Backfill new retaining wall and final grade lot 630 s£ $29 /sf. = $18,270 Demo export / import / final grade material - $3,000 Cap stones approx. 70 lnft. X $15 /lnft. - $1,050 Engineering - $1,000 Contractors fee 1.20 x Total: $27,984 Design- a- scapes: Remove and export 630 sf of existing concrete block retaining wall - $2,363 Engineering for new boulder retaining wall - $1,000 Install 630 sf. of new boulder retaining wall - $14,490 Contractors fee -1.20 x Total: 21,424 * There could be a possible change to removing existing garage foundation /garage slab / asphalt driveway. Sincerely, Jeff Magdik Home Detail 612 -599 -5832 Page 2 of 2 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: August 3, 2015 AGENDA SECTION: Regular Business ORIGINATING EXECUTIVE No: 5 and 6 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: 2016 Budget —HRA and EDA Levy BY: Joe Hogeboom BY: DATE: July 29, 2015 BACKGROUND: Attached is the 2016 budget for all of the Community Development Department (EDA and Planning & Inspections). Although some of the Department's budget (Fund 201) is not controlled by the EDA, the EDA has historically reviewed and approved the entire Community Development Department budget. The budget is ultimately approved by the City Council. The EDA portion of the budget is "Fund 204 ", and the attached resolutions serve as a recommendation to the City Council for levying both an EDA and a HRA levy. The Department's operating budget is relatively straightforward due to the size of the department. The 2016 budget includes an overall increase in EDA expenses due to a reallocation of the way in which salary expenses are charged between Fund 201 and Fund 204. The Associate Planner position is no longer recognized in fund 204, while 90% of the Assistant Director position is recognized in Fund 204, 80% of the director position is recognized in Fund 204, and 10% of the Secretary II – Permits and Licensing position is recognized in Fund 204. Revenue is expected to increase in the EDA fund due to levy increases based on market value. Revenue is expected to increase in the Planning & Inspections fund due to anticipated increased permit, license and fee income. The complete Community Development Department budget will be distributed to the City Council later in 2015. RECOMMENDATION: Staff recommends approval of the Levies as presented. RECOMMENDED MOTION: Motion: Move to waive the reading of Resolutions 2015 -15 and 2015 -16, there being ample copies available to the public. Motion: Move to approve Resolution 2015 -15, Resolution Authorizing the Levy of a Special Benefit Levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6 and Approval of a Budget for Fiscal year 2016. Motion: Move to approve Resolution 2015 -16, Resolution of the Economic Development Authority (EDA) in and for Columbia Heights Adopting the 2016 budget and setting the EDA Levy. Attachments: Resolution 2015 -15, 2015 -16 and 2016 Revenue and Expenditures for Funds 201 and 204 EDA ACTION: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2015-15 AUTHORIZING THE LEVY OF A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6 AND APPROVAL OF A BUDGET FOR FISCAL YEAR 2016 WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.1081 ( "EDA Act ") the City of Columbia Heights ( "City') created the Columbia Heights Economic Development Authority (the "EDA "); and WHEREAS, pursuant to City Resolution 2001 -62 and Ordinance No. 1442, the City Council granted to the EDA all powers and duties of a housing and redevelopment authority under the provisions of Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Act "), except certain powers that are allocated to the Housing and Redevelopment Authority in and for the City of Columbia Heights (the "HRA "); and WHEREAS, Section 469.033, Subdivision 6, of the HRA Act permits the EDA and HRA, together, to levy and collect a special benefit levy of up to .0185 percent of taxable market value in the City upon all taxable real property within the City; and WHEREAS, the EDA desires to levy a special benefit levy in the amount of .0185 percent of taxable market value in the City; and WHEREAS, the EDA understands that the HRA does not expect to levy a special benefit tax for fiscal year 2016; and WHEREAS, the EDA has before it for its consideration a copy of a budget for its operations for the fiscal year 2016 and the amount of the levy for collection in fiscal year 2016 shall be based on this budget. NOW, THEREFORE, Be It Resolved by the Board of Commissioners of the Columbia Heights Economic Development Authority: 1. The budget of $301,193 for the operations of the EDA presented for consideration by the Board of Commissioners of the EDA is hereby in all respects approved. Such budget includes the amount the EDA requests (by separate resolution) to be levied by the City under Minnesota Statutes, Section 469.107, together with the amount to be levied hereunder by the EDA under Minnesota Statutes, Section 469.033, subdivision 6. 2. Staff of the EDA are hereby authorized and directed to file the budget with the City in accordance with Minnesota Statutes, Section 469.033, Subdivision 6. 3. There is hereby levied, subject to the approval of the City Council of the City, a special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, in the amount of $202,364, which is .0185 percent of the market value in the City. 4. Staff of the EDA are hereby authorized and directed to seek the approval by resolution of the City Council of the City of the levy of special benefit taxes in 2016 and to take such other actions as are necessary to levy and certify such levy. Motion by: Second by: Motion passed this 3rd day of August 2015. Attest by: Walter R. Fehst, Executive Director Gary L. Peterson, President EDA RESOLUTION 2015 -16 RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR COLUMBIA HEIGHTS (EDA) ADOPTING THE 2015 BUDGET AND SETTING THE EDA LEVY. BE IT RESOLVED By the Columbia Heights Economic Development Authority (EDA) of Columbia Heights, Minnesota as follows: WHEREAS, the Columbia Heights City Council established the Columbia Heights Economic Development Authority January 8, 1996 pursuant to Minnesota Statutes 469.090 to 469.1081; and WHEREAS, the City Council has given to the EDA the responsibility for all development and redevelopment projects and programs; and WHEREAS, the EDA is authorized under State Statutes, Section 469.107 to levy a tax on its area of operation for the purposes authorized under State Statues 469.090 to 469.1081, subject to consent by the City Council. NOW, THEREFORE BE IT RESOLVED BY THE EDA FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA THAT: 1. The EDA adopts and recommends to the City Council for approval a budget of $301,193 for year 2016. 2. The EDA adopts and recommends to the City Council for approval a levy of $84,000 for year 2016. The Executive Director is instructed to transmit a copy of this resolution to the City Manager and Finance Director /City Clerk of the City of Columbia Heights, Minnesota. APPROVED THIS 3`d day of August 2015. MOTION BY: SECONDED BY: Attest by: Walter R. Fehst, Executive Director Gary L. Peterson, President City of Columbia Heights, Minnesot 2016 Revenue Budget Worksheet 201 PLANNING, ZONING & INSPECTIONS 00 REVENUE I Actual Revenue 2013 I Actual Revenue 2014 I Adopted Budget 2015 (Department Proposed 2016 Manager Proposed I 2016 Council Adopted I 2016 Line Item Description 32110 Liquor, Wine & Beer License 3,680 4,224 3,500 4,500 - 32122 Restaurant & Food 200 100 200 200 - 32125 Multiple Dwellings 17,825 15,375 8,000 18,114 - 32161 Contractors License 16,680 16,380 16,000 20,000 - 32168 Other Professional& Occup 600 1,200 1,500 2,000 - 32178 Other amusement Licenses 1,105 1,180 1,200 1,200 - 32181 Conditional Use 3,346 5,110 4,000 5,000 - 32188 Other Business Licenses 5,235 3,810 2,500 4,000 - 32191 Sprinkler Permit Fees 532 719 1,500 2,000 - 32192 Building & Moving Permits 128,887 134,268 140,000 147,687 - 32193 Electrical Permits - - - - - 32194 Heating Permits 21,163 18,268 13,000 16,000 - 32195 Plumbing Permits 13,849 13,450 12,000 13,500 - 32197 Abandoned Property Inspection Fees 5,660 1,840 2,500 3,000 - 33160 Federal Grant - - - - - 33402 Property Tax Relief - - - - - 33422 State Grant -Aid - - - - - 33641 Other Government Grants - - - - - 34112 Administrative Fees - - - - - 34112 Administrative Fee - Special - - - - - 36210 Interest on Investments 2,400 2,400 - 2,400 - 36216 Loan Interest - - - - - 36217 Business Loan Interest - - 36219 Change in Fair Value (8,800) 7,300 - - - 36220 General Government Rents - - 36230 Contributions - - - - 36260 2% Surcharge Retention 1,084 390 300 400 36290 Other Miscellaneous Revenue 150 60 - 80 - 36294 Surcharges Collected - - - - - 36400 Principal Repayment -Loans - - - - - 37222 Other - - - - - 39100 Sale of Land - - - - - 39101 Gain /Loss Sale Fixed Asset - - - - 39140 Other Refunds & Reimbursements - - - 39203 Transfer In- General Fund - - - - - 39224 Transfer In- Contribution - - - - - 39226 Transfer In- Community Development - - - - - 39230 Transfer In- EDA - - - 56,417 - Total Revenue 213,596 226,074 206,200 296,498 - City of Columbia Heights, Minnesota 2016 Budget Worksheet 201 42400 COMMUNITY DEVELOPMENT PLANNING, ZONING &INSPECTIONS Actual Expense 2013 Actual Expense 1 2014 Adopted Budget 1 2015 Department Proposed 1 2016 City Manager Proposed 2016 Council Adopted 2016 Line Item Description PERSONAL SERVICES 1000 ACCRUED SALARIES - - - - 1030 REGULAR EMPLOYEES 117,533 157,009 179,249 199,330 1012 SEASONAL EMPLOYEES - - - - 1020 OVERTIME - REGULAR 432 578 750 1,000 1030 VACATION & SICK 1,907 2,777 - - - - 1050 SEVERANCE PAY 42 3,983 1060 MILEAGE ALLOWANCE - - - - - - 1070 INTERDEPARTMENTAL LABOR SERV - - - - - - 1210 P.E.R.A. CONTRIBUTION 8,501 11,344 13,411 14,928 - - 1220 F.I.C.A. CONTRIBUTION 9,115 12,119 13,770 15,325 - - 1225 FLEX BENEFIT FICA - - - - - 1300 INSURANCE 17,140 25,911 31,140 31,580 1400 UNEMPLOYMENT COMPENSATION - - - - - - 1510 WORKERS COMP INSURANCE PREM 813 1,285 1,337 1,544 - - 1700 ALLOCATED FRINGE - - - - - - 0999 TOTALS: PERSONAL SERVICES 155,485 215,005 239,657 263,707 - - SUPPLIES 2000 OFFICE SUPPLIES 335 489 500 350 - - 2010 MINOR EQUIPMENT - - - - - - 2011 COMPUTER EQUIPMENT - 993 - - - - 2020 COMPUTER SUPPLIES 153 - - - - - 2030 PRINTING & PRINTED FORMS - 291 - - - - 2171 GENERALSUPPLIES 60 - - - - - 2175 FOOD SUPPLIES - 43 - - - - 2280 VEHICLE REPAIR AND PARTS 383 41 300 100 - - 2282 GAS, OIL, LUBRICANTS 772 721 1,000 700 - - 1999 TOTALS: SUPPLIES 1,704 2,578 1,800 1,150 - - OTHER SERVICES & CHARGES 3045 ATTORNEY FEES -OTHER - - - - - - 3050 EXPERT & PROFESSIONAL SERV. 960 1,065 5,000 8,000 - - 3105 TRAINING & EDUC ACTIVITIS 960 868 1,200 700 - - 3120 EDUCATIONAL REIMBURSEMENT - - - - - - 3210 TELEPHONE & TELEGRAPH 316 140 400 646 - - 3211 CELL PHONES 1,318 1,488 450 600 - 3220 POSTAGE 830 1,133 1,000 1,200 - 3250 OTHER COMMUNICATIONS 317 197 221 225 - - 3310 LOCAL TRAVEL EXPENSE 16 161 200 100 - 3320 OUT OF TOWN TRAVEL EXPENSE - 411 - - - - 3500 LEGAL NOTICE PUBLISHING 360 614 750 600 - 3600 INSURANCE & BONDS 1,267 965 965 1,781 - 4000 REPAIR & MAINT. SERVICES 1,267 3,669 1,000 900 - 4040 INFORMATION SYS:INTERNALSVC - - - - - - 4050 GARAGE, LABOR BURD. 600 327 300 300 - 4100 RENTS & LEASES - - - - - - 4300 MISC. CHARGES - - - - - - 4310 CREDIT CARD FEES 1,718 2,516 900 1,000 - - 4330 SUBSCRIPTION, MEMBERSHIP 210 1,255 500 325 - - 4380 COMMISSION & BOARDS - 48 200 100 - 4390 TAXES & LICENSES 2,722 16 - - - 4395 STATE SALES TAX - - - - - 2999 TOTALS: OTHER SERVICES & CHARGES 12,862 14,873 13,086 16,477 - - City of Columbia Heights, Minnesota 2016 Budget Worksheet 201 42400 COMMUNITY DEVELOPMENT PLANNING, ZONING &INSPECTIONS Actual Expense 2013 Actual Expense 1 2014 Adopted Budget 1 2015 Department Proposed 1 2016 City Manager Proposed 2016 Council Adopted 1 2016 Line Item Description CAPITAL OUTLAY 4999 TOTALS: CAPITAL OUTLAY OTHER FINANCING USES 7100 OPER. TRANSFER OUT - LABOR 8100 CONTINGENCIES 6999 TOTALS: OTHER FINANCING USES TOTALS: PROTECTIVE INSPECTIONS 12,848 13,659 13,756 15,164 - - 4,444 - 12,848 13,659 18,200 15,164 182,898 246,115 272,743 296,498 City of Columbia Heights, Minnesota 2016 Revenue Budget Worksheet 1 204 EEVENUE ADMINISTRATION I Revenule I Re enue I ABudget ID Proposed I Proposed I Adopted 00 REVENUE Line Item Description 2013 2014 2015 2016 2016 2016 31010 Current Ad Valorem 543 - - - - 31011 EDA Current Ad Valorem 58,084 52,573 60,000 60,000 - 31012 HRA Current Ad Valorem 119,586 119,557 176,578 202,364 - 31014 Area -Wide Taxes 86,975 91,877 24,000 24,000 - 31020 Delinquent Ad Valorem 3,884 2,459 - 3,000 - 31800 Payment in Lieu of Taxes 331 356 113 - 31910 Penalties and Interest (8) (44) - - 33160 Federal Grant - - - - - 33402 Property Tax Relief - - - - - 33407 Market Value Homestead Credit - - - - - 33422 State Grant -Aid - - - - - 33641 Other Government Grants - - - - - 34112 Administrative Fees 60 30 - 216 - 36230 Interest on Investments 2,000 2,600 - 2,000 - 36216 Loan Interest 502 1,498 - 1,500 - 36217 Business Loan Interest - - - - - 36219 Change in Fair Value (7,600) 7,300 - 8,000 - 36225 Non - Dwelling Rents - - - - - 36230 Contributions - - - - - 36400 Principal Repayment -Loans - - - - - 39100 Sale of Land - - - - - 39140 Other Refunds & Reimbursements - - - - - 39204 Transfer In-insurance - - - - - 39205 Transfer In-Bonds - - - - - 39242 Transfer In -Cap Imp Devlp - - - - - 39252 Transfer In -Four Cities - - - - - 39290 Residual Equity Transfer - - - - - Total Revenue 264,356 278,205 260,578 301,193 - City of Columbia Heights, Minnesota 2016 Budget Worksheet 204 46314 COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT AUTHORITY Actual Expense 1 2013 Actual Expense 1 2014 Adopted Budget 1 2015 Department Proposed 1 2016 City Manager Proposed 1 2016 Council Adopted 1 2016 Line Item Description PERSONAL SERVICES SUPPLIES 1000 ACCRUED SALARIES - - - - 1010 REGULAR EMPLOYEES 170,211 146,035 150,902 166,181 1012 SEASONAL EMPLOYEES 7,388 7,192 - - 1020 OVERTIME - REGULAR 432 578 750 1,000 1030 VACATION & SICK 9,217 (21,781) - - - 1050 SEVERANCE PAY 1,497 15,931 - - - 1070 INTERDEPARTMENTAL LABOR SERV (37,000) (37,000) - - - 1210 P.E.R.A. CONTRIBUTION 12,801 11,367 11,335 12,508 1220 F.I.C.A. CONTRIBUTION 14,131 11,866 11,601 12,789 1225 FLEX BENEFIT FICA - - - - 1300 INSURANCE 21,720 19,146 20,760 19,332 1400 UNEMPLOYMENT COMPENSATION - - - - - 1510 WORKERS COMP INSURANCE PREM 1,408 1,469 1,107 1,287 1700 ALLOCATED FRINGE - - - - - 0999 TOTALS: PERSONAL SERVICES 201,805 154,801 196,455 213,097 CAPITAL OUTLAY SUPPLIES 2000 OFFICE SUPPLIES 364 324 475 300 - 2010 MINOR EQUIPMENT 14 2,876 - - - 2011 COMPUTER EQUIPMENT - 181 - - - 2020 COMPUTER SUPPLIES 153 - - - - 2030 PRINTING & PRINTED FORMS 128 - - - - 2171 GENERALSUPPLIES 100 152 100 - - 2175 FOOD SUPPLIES 11 504 50 100 - 2280 VEHICLE REPAIR AND PARTS - - - - - 1999 TOTALS: SUPPLIES 771 4,037 625 400 - OTHER SERVICES & CHARGES 3045 ATTORNEY FEES -OTHER - - - - - 3050 EXPERT & PROFESSIONAL SERV. 13,361 12,131 10,000 10,100 - 3305 TRAINING & EDUC ACTIVITIES 635 1,155 1,000 700 3120 EDUCATIONAL REIMBURSEMENT - - - - - 3210 TELEPHONE & TELEGRAPH 851 715 700 750 - 3220 POSTAGE 497 667 500 700 - 3250 OTHER COMMUNICATIONS 197 197 200 312 - 3310 LOCAL TRAVEL EXPENSE 251 389 360 300 - 3320 OUT OF TOWN TRAVEL EXPENSE - 641 - - - 3430 ADVERTISING OTHER - - - - - 3500 LEGAL NOTICE PUBLISHING 441 334 300 300 - 3600 INSURANCE & BONDS 2,232 1,482 1,500 2,354 - 4000 REPAIR & MAINT. SERVICES 838 802 - - - 4020 BUILDING MAINTENANCE - 2,381 - - - 4040 INFORMATION SYS:INTERNAL SVC - - - - - 4050 GARAGE, LABOR BURD. - - - - - 4100 RENTS & LEASES - - - - - 4300 MISC. CHARGES - 100 - - 4330 SUBSCRIPTION, MEMBERSHIP 433 250 450 400 - 4376 MISCELLANEOUS CIVIC AFFAIRS - - - - 4380 COMMISSION & BOARDS 315 385 350 200 - 4390 TAXES & LICENSES - 323 - - 4395 STATE SALES TAX - - - - - 2999 TOTALS: OTHER SERVICES & CHARGES 20,051 21,953 15,360 16,116 - CAPITAL OUTLAY City of Columbia Heights, Minnesota 2016 Budget Worksheet 204 46314 COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT AUTHORITY Actual Expense 1 2013 Actual Expense 1 2014 Adopted Budget 1 2015 Department Proposed 1 2016 City Manager Proposed 2016 Council Adopted 1 2016 Line Item Description 5110 LAND 5191 ASSETS FOR RESALE - 4999 TOTALS: CAPITAL OUTLAY - OTHER FINANCING USES 7100 OPER. TRANSFER OUT - LABOR 12,848 7410 TRANSFER OUT TO COMM DEVELOPMENT - 7413 TRANSFER TO CAP IMP DEVELOPMENT 8100 CONTINGENCIES - 6999 TOTALS: OTHER FINANCING USES 12,848 TOTALS: ECONOMIC DEVELOPMENT AUTHO 235,475 13,658 13,756 - 4,579 13,658 18,335 194,449 230,775 15,163 56,417 71,580 301,193 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: August 3, 2015 AGENDA SECTION: Regular Business ORIGINATING EXECUTIVE No:7 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Parkview Villa Cellular Antenna Facilities BY: Joe Hogeboom BY: Easement and Lease DATE: August 3, 2015 BACKGROUND: As a component of the negotiated sale of Parkview Villa North and South to Aeon Housing, the Economic Development Authority will retain revenue from the cellular antenna located on top of the building until December 31, 2027. The existing Lease of the facility is between the EDA and T- Mobile, and began in 1997. Rent commenced at $12,000 in 1997 and increased each year by the greater of either 4% of the previous year's annualized rent, or an amount equal to the increase in the Consumer Price Index ( "CPI "). The original Lease offered several renewal terms, the last of which ends on December 31, 2016. To maintain this income stream, it is necessary to enter into a new Lease with T- Mobile that wil begin on January 1, 2017, as well as to obtain an Easement for the property from Aeon to allow access to the antenna area. The new Lease was mutually agreed upon by EDA staff, Aeon and T- Mobile, and is subject to the same terms of the existing Lease. It is necessary for the EDA to approve the Lease and Easement agreements prior to the sale of the property. Copies of both the proposed Lease and the proposed Easement are attached for your reference. RECOMMENDATION: Staff recommends approval of the following motions concerning the Parkview Villa Cellular Antenna Facilities Easement and Lease. RECOMMENDED MOTION: Motion: Move to authorize the President and the Executive Director of the Economic Development Authority to execute the Easement Agreement with Aeon for Parkview Villa Cellular Antenna Facilities. Motion: Move to authorize the President and the Executive Director of the Economic Development Authority to execute the First Amendment to the Parkview Villa Site Lease Agreement with T- Mobile Central, LLC. Attachments: Easement Agreement — Cellular Antenna Facilities, First Amendment to Site Lease EDA ACTION: EASEMENT AGREEMENT (Cellular Antenna Facilities) This Easement Agreement (this "Agreement ") is made as of this _ day of , 2015, by and between the Columbia Heights Economic Development Authority, a public body corporate and politic in the State of Minnesota (the "EDA ") and Aeon, a Minnesota non - profit corporation ( "Owner "). WHEREAS, the Columbia Heights Housing and Redevelopment Authority (the "HRA ") was the owner of certain real property known as Parkview Villa North and Parkview Villa South, located at 965 40`b Avenue Northeast in Columbia Heights, Anoka County, Minnesota which is more particularly described in Exhibit A attached hereto and incorporated herein by reference (the "Property "); and WHEREAS, pursuant to that certain Site Lease Agreement dated December 4, 1996, as amended by that certain First Amendment to Site Lease Agreement dated , 2015, and as may be further amended, restated or replaced from time to time (the "Lease "), T- Mobile maintains directional antennas, connecting cables, equipment, cabinets, an accessory building and appurtenances (collectively, the "Facilities ") as depicted on Exhibit C hereto (the "Plans ") on the roof of the Parkview Villa North building; and WHEREAS, concurrently with the execution of this Agreement, the HRA has conveyed the Property to Owner; and WHEREAS, prior to such conveyance the HRA assigned the Lease to the EDA; 4574130 SJS C1,160 -82 WHEREAS, the EDA desires an easement from Owner that will allow the EDA, or its tenant under the Lease, to continue to operate, maintain, repair and reconstruct the Facilities on the roof of the Parkview Villa North building; and WHEREAS, Owner agrees to grant a certain limited -term easement as provided in this Agreement; and NOW, THEREFORE, in consideration of one dollar ($1.00), the conditions, covenants and mutual agreements hereinafter set forth, the receipt and sufficiency of which is hereby acknowledged by Owner, the parties hereto agree as follows: 1. ANTENNA EASEMENT. Owner does hereby grant and convey to the EDA, for the Term (as defined herein), a non - exclusive antenna easement over and upon the portion of the roof of the Parkview Villa North building described on the attached Exhibit B and incorporated herein by reference (the "Easement Area ") for the construction, use, operation, maintenance and repair (including reconstruction) of the Facilities, subject to all governmental rules and regulations with respect to such facilities. 2. INGRESS AND EGRESS EASEMENT. Owner also does hereby grant and convey to the EDA, for the Term, a nonexclusive ingress and egress easement over the Property in order to gain reasonable and necessary access to the Easement Area. Owner reserves the right to change or limit the location of ingress and egress easement to the Easement Area to complement its residential development activities, provided that such access shall be reasonably located and not unduly interfere with the Facility operations. The EDA may not enter any buildings on the Property. The EDA may not build on the Property other than to construct, use, operate, maintain, repair or reconstruct the Facilities as depicted on the Plans. 3. PAYMENT OF UTILITIES. Prior to the date hereof, the EDA shall separately meter charges for the compensation of electricity and other utilities associated with the Facilities and the EDA's use of the Property and shall promptly and timely pay all costs associated herewith. 4. CONSTRUCTION, MAINTENANCE AND OPERATION. The EDA hereby represents, agrees, and warrants that the Facilities shall be constructed, used, operated, maintained, repaired and reconstructed in accordance with good construction and engineering practices and all applicable federal, state, and local laws, statutes, codes, ordinances, rules and regulations ( "Laws ") including those of the Federal Communications Commission, the City of Columbia Heights and Anoka County, and all applicable federal, state, and local environmental, safety and hazardous materials laws and regulations including but not limited to CERCLA ( "Hazardous Materials Laws "), and materially as depicted on the Plans. The EDA agrees to maintain, at its sole expense, the Facilities located on the Property in good condition and repair, at least equal to the standard of maintenance of the Property, and in accordance with all applicable Laws, and if any portion of the Facilities breaks, malfunctions, or is or becomes in disrepair, the EDA will promptly repair or replace the item or items including any and all damage caused by said breakdown, malfunction or disrepair at its own expense. The EDA agrees that it will not cause or permit any mechanic's or materialmen's liens or claims to be filed against the Property, or any part thereof. Except as depicted on the Plans, the EDA may not 2 457413v6 SIS CL160 -82 install any additional facilities or improvements without the prior written approval of Owner, which may be withheld in Owner's sole discretion and may be made subject to any further requirements Owner may have, with the exception that the EDA may erect additional Facilities and install additional equipment on a temporary basis not to exceed 90 days to assure continuation of service in the event of a natural or manmade disaster in order to protect the health, welfare and safety of the community. At Owner's request, the EDA will install or cause to be installed a "screening" surrounding the exterior of the Facilities for esthetic purposes, which shall be painted to match the building and otherwise subject to Owner's approval. 5. HAZARDOUS MATERIALS. Except as reasonably used in the ordinary course of the operation of the Facilities, and in accordance with all applicable Laws, the EDA represents and warrants, that the use of the Easement Area and operation of the Facilities will not generate, and the EDA will not permit to be stored, disposed of, or transported to or over the Property, any Hazardous Materials. "Hazardous Materials" shall be interpreted broadly and specifically includes, without limitation, asbestos, fuel, batteries or any hazardous substance, waste or materials as defined in any Hazardous Materials Law. 6. PROPERTY MAINTENANCE; DAMAGE TO PROPERTY. Subject to Section 13 below and the EDA's maintenance and repair obligations set forth in this Agreement, Owner shall be responsible for maintaining the building and any improvements (other than the Facilities) that are located within the Easement Area at its sole expense. Within 15 days after notification by Owner of such damage (or such lesser period of time as Owner deems necessary in the event of an emergency), the EDA will restore, at its sole expense, any damage to the Easement Area or the Property caused during or by the installation, maintenance or operation of the Facilities, including damage to any structures, pavement, landscaping or any other improvements or surface or subsurface conditions, such restoration to be made to the same condition as immediately prior to such disturbance. 7. INTERFERENCE. The EDA shall cause the Facilities to be operated such that they do not unreasonably and materially interfere with Owner's use of the Property. If Owner finds in its reasonable discretion that the Facilities or any part thereof unreasonably and materially interferes with Owner or its tenants' use of the Property (including but not limited to threats to public health or safety), Owner may require the EDA to cause the operation of the Facilities to be temporarily discontinued, except for intermittent operation for the purpose of testing, until the interference has been eliminated. If the operation of the Facilities is discontinued in accordance with this Section and the interference cannot be eliminated within thirty (30) days immediately thereafter, and if the parties are unable to mutually agree on an alternative location on the Property in which to relocate the Facilities in accordance with Section 10 of this Agreement, Owner may terminate this Agreement; provided consent to relocate the Facilities due to an interference under this Section may be withheld by either party in its sole discretion, and the payment for such relocation shall be as mutually agreed by the parties. If Owner determines that a cessation is necessary as a result of an emergency or threat to public health or safety, Owner may require that such cessation be accomplished immediately. 8. INDEMNITY. The EDA agrees to defend, indemnify and hold harmless Owner and its partners, officers, employees, agents and representatives from and against any and all claims, 3 457413v6 SJS CL160 -82 costs, losses, expenses, demands, actions, or causes of action, including reasonable attorneys' fees and other costs and expenses of litigation arising out of the use of the Property by the EDA or its employees, agents, tenants or invitees, except to the extent that the same arise from the gross negligence or willful misconduct of Owner. The indemnity provided herein shall survive the termination of this Agreement. Owner agrees to defend, indemnify and hold harmless the EDA and its officials, employees, agents and representatives from and against any and all claims, costs, losses, expenses, demands, actions, or causes of action, including reasonable attorneys' fees and other costs and expenses of litigation arising out of the use of the Property by Owner or its employees, agents, tenants or invitees, except to the extent that the same arise from the gross negligence or willful misconduct of the EDA. The indemnity provided herein shall survive the termination of this Agreement. 9. OWNER'S USE. Owner hereby reserves to itself the right to use the land included within the Easement Area, including but not limited to use for cellular antenna purposes (provided that any such use must not interfere with or impair the EDA's use of the Facilities and any further lease of the Easement Area by Owner must prohibit a user from interfering with the Facilities), subject to all governmental rules and regulations, and provided that such use will not unreasonably disturb or interfere with the Facilities or prevent reasonable ingress and egress thereto for the purposes of construction, operation, use, maintenance or repair (including reconstruction) thereof. If the intended use by Owner of the Easement Area is for cellular antenna purposes, the EDA may require Owner to obtain an interference study from a professional engineer to determine if the new frequencies will cause harmful interference with the Facilities at Owner's expense. 10. RELOCATION. Owner reserves the right to require the EDA to relocate the Facilities to other portions of the Property acceptable to the EDA in its reasonable discretion. Owner agrees to pay all reasonable costs incurred by the EDA that are reasonably related to such relocation. Owner agrees to give the EDA not less than 30 days' notice of any desired relocation. In the event of any such relocation, this Agreement shall be amended to reflect such relocation so that the EDA has an easement for the relocated Facilities under the same terms and conditions as this Agreement. 11. INSURANCE, RELEASE. The EDA agrees to maintain at all times adequate commercial general liability insurance with respect to its access rights on the Property and the Easement Area and the use and occupancy thereof (in an amount not less than $1,000,000.00 per occurrence), specifically including coverage against claims for bodily injury, death and property damage occurring on or about the Easement Area and the Property, and contractual coverage with respect to the indemnity obligations set forth in this Agreement. The current owner of the Property shall be named as an additional insured on such policy and all insurance policies required to be held by the EDA and the tenant under the Lease. The EDA shall furnish Owner with evidence of such coverage on or before the date of this Agreement, and upon request from time to time thereafter. 12. ABANDONMENT OF EASEMENT. If the EDA shall abandon or no longer use the Easement Area for a period of at least one year, then, notwithstanding any provision herein to the contrary, the Easement shall automatically terminate and the EDA shall, promptly upon request, 4 457413v6 SJS CL160 -82 execute a recordable instrument to evidence the termination and release of the easement and this Agreement. 13. EMINENT DOMAIN; CASUALTY. If the Easement Area or any part thereof is taken by eminent domain or conveyed in lieu of eminent domain, then this Agreement shall terminate and any award for such a taking or damages paid as a result of such taking shall be the sole and exclusive property of the owner of the property taken. Without limiting the foregoing, the EDA shall have the right to claim and recover from the condemning authority, but not from Owner, such compensation as may be separately awarded or recoverable by the EDA on account of any and all damage to the EDA's business and any costs or expenses incurred by the EDA in moving/removing its equipment, personal property, Facilities and leasehold improvements. The EDA and Owner agree to execute any instrument of assignment as may be required by the other for the recovery of damages with respect to that party's property. If the Easement Area is damaged by fire or other casualty (whether insured or not), Owner has no obligation hereunder to reconstruct the Easement Area or the building upon which it is located; provided, however, if Owner does perform such reconstruction, the EDA may at the EDA's expense reconstruct the Facilities within the reconstructed Easement Area for operation for the remainder of the Term. If Owner does not reconstruct the Easement Area in its sole discretion, this Agreement shall terminate. 14. ASSIGNMENT. Except for the existing Lease, the EDA may not assign or otherwise transfer, voluntarily or involuntarily, this Agreement without Owner's prior written consent, which may be withheld in Owner's absolute discretion; provided, however, without the consent of Owner, the EDA may assign this Agreement to a governmental entity that succeeds to all of the EDA's responsibilities in the County of Anoka. 15. NO DEDICATION. Nothing contained herein shall be deemed to be a dedication of any part of the Property to the general public, or for the general public or for any public purposes whatsoever. 16. NO PARTNERSHIP. None of the terms or provisions of this Agreement shall be deemed to create a partnership between or among the parties in their respective businesses or otherwise, nor shall it cause them to be considered joint venturers or members of any joint enterprise. 17. DEFAULT; REMEDIES. If a party hereto defaults under any of its obligations under this Agreement, and such default continues for 30 days after receipt of written notice from the non - defaulting party, then the non - defaulting party may exercise one or more of the following remedies: (a) Cure the default and charge the cost thereof to the defaulting party, and all such costs shall be payable on demand and shall bear interest from the date of demand until paid in full at the rate of 8% per annum; or (b) Apply for injunctive relief and /or specific performance. 5 457413v6 S1S CL160 -82 The 30 -day cure period shall not apply (a) in the case of an emergency in which event an immediate cure shall be required, and (b) where a default is not susceptible of cure within 30 days and the defaulting party commences the performance, fulfillment or observance within the 30 -day period and diligently prosecutes the same thereafter. Any action seeking one or more form of relief shall not be a bar to an action at the same or subsequent time seeking other or alternative relief. In any such action, the prevailing party shall be entitled to an award of its costs and reasonable attorneys' fees. No delay or forbearance by a non - defaulting party shall be deemed a waiver of the subject default or any subsequent default of a similar nature, and no waiver of any right and remedy hereunder shall be effective unless in writing and signed by the person against whom the waiver is claimed. 18. NOTICES. Notices in demand required or permitted to be given hereunder shall be given by certified mail, return receipt requested, or by a national overnight express service. In the case of Owner, notices shall be addressed to it at 901 North 3'd Street, Suite 150, Minneapolis, MN 55401, Attn: Caroline Horton, or at such other address as specified in writing by Owner. In the case of the EDA, notices shall be addressed to it at: 590 400' Avenue Northeast, Columbia Heights, Minnesota 55421, Attn: Executive Director or at such other address specified in writing by the EDA. 19. EXHIBITS. All exhibits referred to herein and attached hereto shall be deemed part of the Agreement. 20. RECORDING. The Agreement shall be recorded in the records of Anoka County, Minnesota. 21. GOVERNING LAWS. The laws of the state of Minnesota shall apply to the Agreement. 22. SEVERABILITY. If any term, provision or condition contained in the Agreement shall, to any extent, be invalid or unenforceable, the remainder of the Agreement (or the application of such term, provision or condition to persons or circumstances other than those in respect of which it is invalid or unenforceable) shall not be affected thereby, and each term, provision or condition of the Agreement shall be valid and enforceable to the fullest extent permitted by law. 23. BINDING ON FUTURE PARTIES. The easement granted herein shall run with the land and shall inure to the benefit of and be binding upon the parties, their successors and assigns for the Term. 24. LEASE. The EDA will enforce its rights under the Lease to the fullest extent and will require the tenant to operate strictly in accordance therewith. The EDA and Owner acknowledge and agree that all of the rights made available to the EDA under the Lease shall be made available to Owner (other than the right to collect rent thereunder), that all warranties and indemnities set forth in the Lease shall inure to the benefit of Owner, and that Owner may, on its own behalf or on behalf of the EDA, enforce, directly against the tenant or any other applicable party under the Lease, all rights afforded to the EDA under the Lease. The Lease may not be amended or otherwise modified without the prior written consent of Owner. Upon termination of the Lease, if the EDA is the landlord under the Lease at the time of its termination, the EDA 457413v6 S1S CL160 -82 will cause the tenant under the Lease to execute a "Termination of Lease" in recordable form and will cause such document to be recorded in the Offices of the County Recorder and the Registrar for Anoka County, Minnesota. 25. TERM. This Agreement will terminate and be of no further force or effect, except as otherwise provided herein, at 11:59 on December 31, 2027 (the "Termination Date "). Prior to the Termination Date, unless otherwise agreed to by the parties in writing, the EDA must cause the Facilities to be removed from the Property and must restore the Property to a condition as good as or better than that which existed immediately prior to the installation of the Facilities (including the replacement of any landscaping, curbing or paving that has been removed or damaged). If this Agreement is terminated prior to the Termination Date, the EDA must cause such restoration to be completed within 60 days after such termination. [Signature pages follow] 7 457413v6 SJS CL160 -82 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. OWNER: AEON In Its: President and CEO ACKNOWLEDGMENTS STATE OF MINNESOTA ss.: COUNTY OF I The foregoing instrument was acknowledged before me this day of , 2015 by , the President and CEO of Aeon, a Minnesota non -profit corporation, by and on behalf of the corporation. Notary Public 1 457413v6 SJS CL160 -82 EDA: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY in Its: President Un Its: Executive Director ACKNOWLEDGMENTS STATE OF MINNESOTA ss.: COUNTY OF ANOKA The foregoing instrument was acknowledged before me this day of , 2015 by and , the President and Executive Director, respectively, of the Columbia Heights Economic Development Authority, a body corporate and politic in the State of Minnesota, by and on behalf of said body. Notary Public Document Drafted By: Kennedy & Graven, Chartered (SJS) 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (612) 337 -9300 457413v6 SJS CL160 -82 EXHIBIT A Legal Description of the Property Tract A: That part of the South 1/2 of Lot 13, lying Northwesterly of the following line: Beginning at the Northeast corner of the South 1/2 of Lot 13; thence Southwesterly to a point on the South line of said Lot 13, said point being 2 feet Easterly of the Southwest Cornets of Lot 13; the South 241 feet of Lot 14; then south 1/2 of Lot 15; Lot 39 except the West 30 feet thereof; Lots 40, 41, 42 and 43 and the West 1/2 of Lot 44, all in Block 5 Reservoir Hills, Columbia Heights, Anoka County, Minnesota (Abstract) Tract B: The East 40 feet of the South 1/2 of Lot 16, Block 5, Reservoir Hills, Columbia Heights, Anoka County, Minnesota. (Torrens) B -1 457413v6 SJS CL160 -82 EXHIBIT B Legal Description of Easement Area B -1 457413v6 SJS CL160 -82 EXHIBIT C Depiction of Easement Area B -1 457413v6 SJS CL160 -82 j \ �§ iA \j §� ) |$ , ) }�..— � - } / \ !G �| �)| T, & .»mm�, ! (0 O C3 / > %0 E �/ a )3> CA / ZM $ \ � � � � � � � � � � � � � , � � � � � � \ %&$ a' D CCi O 3jz 4i s` t/ APT l y I ww I IAYIWGM P).'�PLE 'tLTFa�u. �i pN6]t]0 Rf1bi�Mlf1. iiw I L. 1 (�.(lAA "PIMr l.Or2 w :Y:t �� • RH ¢•tup r;A ra•:.s.a !i�it Yw .pro B -1 457413v6 SJS CL160 -82 5 v a s 0 m r m - S i A o,(Z c Z �m r m - t iD °Iz _5 2� n.c. Y ArM r smi i — . -� �� APT -- _— i ELEVAP - - TELS'Cu N C -7-0-7;ff GYM' �j 3 C�4J3:0 OLNb r0p.5 �_ � •� �... nog A7'0068 Imp Kars B -1 457413v6 S1S CL160 -82 M a W m r m i A o � O o�Z r y S � r i :C 4 °a °•Iz 96 D (�] EAST � WM EL&Alcws as�tr r3 rC U.6'I fL 'ylW Mdlt Sb Cin 4C C41M. 2om.Y :S.i�1 At0046 PLUGt MNIEL YL rw. A� I��n .�.'Y o. Aar , ,,z, rueauw wnnrz rn erg �� :vu. w� W:� �VM[p :M OW]L. �••i �'l �."J:11 ont�pF e+s n � wn B -1 457413v6 S1S CL160 -82 FIRST AMENDMENT TO SITE LEASE AGREEMENT THIS FIRST AMENDMENT TO SITE LEASE AGREEMENT (the "First Amendment ") is made this day of 2015 by and between Columbia Heights Economic Development Authority, a public body corporate andXolitic and political subdivision of the State of Minnesota, as the lessor, whose address is 590 40 Avenue NE, Columbia Heights, MN 55421 (hereinafter referred to as "Landlord "), and T- Mobile Central LLC, a Delaware limited liability company, whose address is 12920 SE 38a' Street, Bellevue, WA 98006, as successor in interest to APT Minneapolis, hic. (hereinafter referred to as "Tenant "). RECITALS WHEREAS, Landlord and Tenant are parties to a Site Lease Agreement, dated December 4, 1996 (the "Lease ") whereby Landlord has leased to Tenant and Tenant has leased from Landlord approximately 250 square feet of rooftop space (the "Leased Premises ") on a certain building located at 965 40th Avenue NE, Columbia Heights, Minnesota, legally described in Exhibit A attached hereto (the "Property"); WHEREAS, the Lease provides for an Initial Tenn commencing on approximately January 1, 1997 and expiring December 31, 2001, with rent commencing at $12,000 for the initial year and increased each year by the greater of (i) 4% of the previous year's annualized rent, or (ii) an amount equal to the increase in the Consumer Price Index ( "CPI "), all as more fully described in paragraph 2 of the Lease, subject to three (3) Renewal Terms of five (5) years each at a rental rate for each Renewal Tenn consistent with the terms of the Initial Term; WHEREAS, Tenant exercised its right to extend the Initial Term of the Lease for each of the three Renewal Terms; WHEREAS, Landlord and Tenant desire to extend the Term of the Lease for an additional 11 -year renewal term from January 1, 2017 through December 31, 2027 (the "Additional Renewal Term "); WHEREAS, Landlord and Tenant have agreed on a rental rate for such Additional Renewal Term; and WHEREAS, Landlord intends to convey fee title to the Property to Aeon (or its successor or assign, as applicable, being hereafter referred to as "Property Owner ") and will be granted a non - exclusive easement (the "Easement ") to the Leased Premises for a period equal to the Additional Renewal Term, along with certain rights of ingress and egress thereto through the Property, subject to Property Owner's reasonable security requirements and the rights of tenants at the Property. NOW, THEREFORE, in consideration of the mutual covenants contained herein and 462511 v I MNI CL160 -82 other good and valuable consideration, Landlord and Tenant hereby amend the Lease as follows: 1. Additional Renewal Term. The Lease is hereby extended for the Additional Renewal Term, which shall run from January 1, 2017 through December 31, 2027. 2. Additional Extensions. A. The parties acknowledge that upon the termination of the Additional Renewal Term, the Easement will expire and, as a result, Landlord will no longer have the right to occupy the Property for the purposes of providing Tenant its rights under the Lease. Accordingly, the following extension provisions are subject to the Owner Approval (as hereafter defined) and, in connection therewith, Property Owner's consent to its replacement of Landlord as the landlord under the Lease. B. The parties further agree that Tenant shall have the option to request extensions of the Lease for two (2) additional five -year Renewal Terms commencing, respectively, on January 1, 2028 and January 1, 2033, by providing Property Owner written notice of Tenant's request for renewal (the "Renewal Request ") at least eighteen (18) months prior to the expiration of the Additional Renewal Term or the first subsequent Renewal Term thereafter. Property Owner may approve or reject Tenant's Renewal Request in writing within 60 days after Property Owner's receipt of the Renewal Request for any reason or for no reason whatsoever; provided, however, any failure of Property Owner to respond to a Renewal Request shall be deemed a rejection of the Renewal Request. Property Owner's acceptance of a Renewal Request is referred to as an "Owner Approval." If Property Owner does not provide its Owner Approval in response to a Renewal Request, the Lease shall terminate in accordance with the terms upon the scheduled termination of the then- current term. If a Renewal Request for the first Renewal Term is either not delivered or rejected, the second subsequent Renewal Term will be void. 3. Rent for Additional Renewal Term. The rent for the Additional Renewal Term and any subsequent Renewal Term shall continue without interruption; provided that the rent shall be increased each year on January 1 by 3% of the previous year's annualized rent. After the termination of the Additional Renewal Tern, if the Lease is extended as provided herein, rent shall be payable to Property Owner at the address provided in Section 6 below. 4. Lease of Landlord's Interest in Easement. Landlord and Tenant agree that the Lease is a lease only of Landlord's non - exclusive easement interest in the Leased Premises during the Additional Renewal Term. Landlord and Tenant agree that, for the Additional Renewal Term, Property Owner is a third party beneficiary under the Lease, as modified hereby, and has the right to directly enforce all of the duties and obligations of Tenant under the Lease. Upon any extension after the Additional Renewal Term, Property Owner will become the landlord under the Lease and, accordingly, a direct beneficiary, obligee, and obligor thereunder. Landlord and Tenant agree that all rights of Property Owner under this First Amendment shall inure to the benefit of its successors in title to the Property. Further, Tenant agrees that it shall name Property Owner as an additional insured under the applicable liability and casualty insurance which Tenant is required to maintain under the Lease. Landlord and Tenant agree that 46251 Ivl MNI CL160 -82 2 all warranties and indemnities set forth in the Lease shall inure to the benefit of Property Owner and that each of Landlord and Tenant will exercise its rights under the Lease in such a manner so as to not injure or damage the property of Property Owner or its tenants and so as to comply with Property Owner's reasonable security and other rules respecting the Property so as to not interfere with the right of quiet enjoyment of the tenants at the Property. 5. Recitals. The Recitals provisions are incorporated herein by this reference. 6. Notice and Cure. Tenant agrees to give Property Owner written notice of any defaults by Landlord under the Lease and an opportunity, at Property Owner's option, to cause the cure of such default within the cure periods set forth in the Lease, prior to exercising any remedies under the Lease. All notices to Property Owner shall be sent in accordance with the procedures for delivering notice under the Lease as follows: Parkview Limited Partnership Attn: Eric Schnell, Chief Operating Officer 901 North Third Street, Suite 150 Minneapolis, MN 55401 or to such alternate address or attention as Property Owner shall notify Tenant and Landlord in writing pursuant thereto. 7. Liens and Claims. Each of Landlord and Tenant agrees that it will not cause or permit any mechanic's or materialmen's liens or claims to be filed against the Property, or any part thereof, including, without limitation, the Leased Premises and shall indemnify Property Owner and its partners, and hold them harmless, from and against any and all mechanic's or materialmen's liens or claims or any other claims, whether third party claims or otherwise, arising from the Lease or the actions or omissions of Landlord or Tenant thereunder. 8. Easement Agreement. Tenant acknowledges that the Easement will be granted pursuant to a certain Easement Agreement between Landlord and Aeon to be recorded in the Anoka County real estate records upon conveyance of fee title to the Property to Aeon (or its successor or assign) (the "Easement Agreement "), and agrees that Tenant's operations under the Lease, as amended hereby, will be in accordance with the recorded Easement Agreement and that, to the extent the Easement Agreement conflicts with the Lease, the Easement Agreement will control. 9. No Other Changes. Except as specifically provided herein, the Lease remains unchanged and in full force and effect. Capitalized terms not otherwise defined in this First Amendment shall have the meanings ascribed to them in the Lease. 462511v1 MNICLI60 -82 3 IN WITNESS WHEREOF the undersigned have executed this instrument the day and year first referenced above. LANDLORD: STATE OF MINNESOTA ) ss. COUNTY OF ANOKA ) COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By: Its President By: Its Executive Director The foregoing instrument was acknowledged before me this day of 2015 by and , respectively the President and Executive Director of the Columbia Heights Economic Development Authority, on behalf of the authority. Notary Public TENANT: T- MOBILE CENTRAL LLC By: Its: STATE OF ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2015 by , the of T- Mobile Central LLC, a Delaware limited liability company, on behalf of the company. Notary Public 46251 lvl MNI CL160 -82 4 1*4-.1 o�Y1I1 Description of the Property Tenant's leasehold interest in Landlord's easement rights granted in the following described property, pursuant to Easement Agreement recorded as Document No. in the land records of Anoka County, Minnesota: Tract A: That part of the South 1/2 of Lot 13, lying Northwesterly of the following line: Beginning at the Northeast corner of the South 1/2 of Lot 13; thence Southwesterly to a point on the South line of said Lot 13, said point being 2 feet Easterly of the Southwest Cornets of Lot 13; the South 241 feet of Lot 14; then south 1/2 of Lot 15; Lot 39 except the West 30 feet thereof; Lots 40, 41, 42 and 43 and the West 1/2 of Lot 44, all in Block 5 Reservoir Hills, Columbia Heights, Anoka County, Minnesota (Abstract) Tract B: The East 40 feet of the South 1/2 of Lot 16, Block 5, Reservoir Hills, Columbia Heights, Anoka County, Minnesota. (Torrens) 462511 v4 MNI CLI60 -82 A -1