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HomeMy WebLinkAboutEDA AGN 09-06-16CH COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AGENDA September 6, 2016 6:00 pm 1. Call to Order 2. Roll Call 3. Pledge of Allegiance City Hall Conference Room 1 590 401" Avenue NE Columbia Heights, MN 55421 CONSENT AGENDA 4. Approve minutes of August 1, 2016 S. Approve Financial Report and Payment of Bills for the months of July— Resolution 2016 -22 Motion: Move to approve Consent Agenda as presented. BUSINESS ITEMS 6. Establishment of the Hy -Vee TIF District— Resolution 2016 -23 Motion: Move to waive the reading of Resolution 2016 -23, there being ample copies available to the public. Motion: Move to adopt Resolution 2016 -23, a resolution requesting City Council to call for a Public Hearing on October 24, 2016 at approximately 7:00 PM for the Modification to the Downtown Central Business District Revitalization Plan for the CBD Redevelopment Project and the Establishment of the Hy -Vee TIF District. 7. Scattered Site TIF District — Consideration of Lot Sale Authorization 4235 Washington Street — Resolution 2016 -24 Motion: Move to waive the reading of Resolution 2016 -24, there being ample copies available to the public. Motion: Move to adopt Resolution 2016 -24, a resolution approving a Purchase and Redevelopment Agreements with Timbercraft Enterprises Inc. for the conveyance of 4235 Washington Street, Columbia Heights, MN 55421. The next EDA meeting will on October 3, 2016 at City Hall. 8. Single Family Home Lot Sales Program — Final Sale Approval for 4606 Polk Street — Resolution 2016 -25 Motion: Move to waive the reading of Resolution 2016 -25, there being ample copies available to the public. Motion: Move to adopt Resolution 2016 -25, a resolution approving a Purchase and Redevelopment Agreements with Home Detail, Inc. for the acquisition of the property located at 4606 Polk Street, Columbia Heights, MN 55421. 9. First Amendment — ACCAP Purchase Agreement for City Acquisition of 4641 -43 Polk Street —Resolution 2016 -26 Motion: Move to waive the reading of Resolution 2016 -26, there being ample copies available to the public. Motion: Move to adopt Resolution 2016 -26, a resolution approving a First Amendment of a Purchase Agreement between the Columbia Heights Economic Development Authority and Anoka County Community Action Program. OTHER BUSINESS 10. Adjourn The next EDA meeting will on October 3, 2016 at City Hall. ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF AUGUST 1, 2016 The meeting was called to order at 6:30 pm by Chair Gary Peterson Members Present: Donna Schmitt, John Murzyn, Marlaine Szurek„ Bruce Nawrocki , Bobby Williams, and Gary Peterson. Members Absent: Gerry Herringer Staff Present: Walt Fehst, Joseph Hogeboom, Keith Dahl, Joseph Kloiber, and Shelley Hanson. PLEDGE OF ALLEGIANCE- RECITED CONSENT ITEMS 1. Approve the Minutes from June 6, June 13, and July 21, 2016- 2. Approve the Financial Report and Payment of Bills for May and June 2016 on Resolution 2016 -18. Questions by Members: No questions or comments. Motion by Szurek, seconded by Nawrocki, to waive the reading of Resolution 2016 -18 there being an ample amount of copies available to the public. All ayes. MOTION PASSED. Motion by Szurek, seconded by Nawrocki, to approve the Minutes and Financial Report and Payment of Bills for May and June as presented. All ayes. MOTIONPASSED. RESOLUTION NO. 2016-18 A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving the Financial Statements for Months of May and June, 2016 and the Payment of the Bills for the Months of May and June, 2016. 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 EDA Minutes Page 2 August 1, 2016 WHEREAS, the financial statements for the months of May and June, 2016 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 1st day of August, 2016. Motion by: Szurek Seconded by: Nawrocki BUSINESS ITEM 1. Housing and Redevelopment Authority Levy Budget — Resolution 2016 -19 and 2. Economic Development Authority Levy Budget — Resolution 2016 -20 Hogeboom stated that the 2017 budget for all of the Community Development Division (Economic Development, Planning and Building Safety Departments). Although some of the Community Development Division'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 ultimately must be approved by the City Council. The Economic Development Authority (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 HRA levy. The Department's operating budget is relatively straightforward due to the size of the department. EDA Minutes Page 3 August 1, 2016 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 /Economic Development Manager and Secretary II — Permits and Licensing positions are no longer recognized in Fund 204, while 50% of the Director position is recognized in Fund 204, and 50% of the position is recognized in Fund 201. Due to the return of pre- recession workloads, the Secretary II — Community Development position has been budgeted to reflect full time working hours. 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 2016. Staff recommends approval of the Levies as presented. Questions /comments from members: Kloiber stated that the Resolutions are approving a 2017 Budget amount of $297,018 and a Levy amount of $84,000. Kloiber said this is the best time to bring up concerns, although the City Council members may also do so during the Budget Review this fall. Nawrocki asked how many people are currently employed in the Dept. now. Hogeboom stated that the staff consists of 6 people, plus one Intern at the present time. This returns staff to the same level it was at in 2009 before the recession. He explained that the Community Development Secretary is currently working %2 time in this Dept. and %2 time for Elections. By approving the proposed budget, this position would become a full time Community Development position beginning in January 2017. Nawrocki was opposed to making this position full time. He felt it should be kept part time as originally proposed and approved. Schmitt asked if a Building Inspection Intern would be needed next summer also, as that would impact the proposed budget decision. Hogeboom stated that would depend on the work load next summer. He explained that construction is busier in the summer months and planning tends to be busier in the winter months. Hogeboom told members that there are a significant amount of projects in the horizon. He said Hyvee officially made application for their Site Plan approval, the developer of the Stinson Blvd site is bringing revised plans to consider, White Castle is under construction, and the developer is still working on a plan for the 47`f' and Central Avenue site. These projects in addition to the Dominium project will keep staff busy for the next few years at least. EDA Minutes Page 4 August 1, 2016 Members were very excited that Hyvee has finally submitted plans. Hogeboom said the initial plan indicates the grocery store, a restaurant with a bar, and possibly a medical clinic. The gas station component will be placed further up Central Avenue as this site will not accommodate it. He said they plan on terracing down the slope along Central Avenue to make it more gradual and more visible. The Site Plan will go before the Planning & Zoning Commission in September and the site work will start this fall. Motion by Williams, seconded by Szurek, to waive the reading of Resolutions 2016 -19 and 2016- 20, there being ample copies available to the public. All ayes. MOTIONPASSED. Motion by Williams, seconded by Szurek to approve Resolution 2016 -19, 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 2017. Motion by Nawrocki, to amend the proposed budget to take out the Secretary H position. The motion died for lack of a second. Roll Call vote on the original motion: All ayes. MOTIONPASSED. Motion by Williams, seconded by Szurek, to approve Resolution 2016 -20, Resolution of the Economic Development Authority (EDA) in and for Columbia Heights Adopting the 2017 budget and setting the EDA Levy. Roll Call: All ayes. MOTIONPASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2016-19 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 2017 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 EDA Minutes Page 5 August 1, 2016 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 2017; and WHEREAS, the EDA has before it for its consideration a copy of a budget for its operations for the fiscal year 2017 and the amount of the levy for collection in fiscal year 2017 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 $297,018 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 $209,468, 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 2017 and to take such other actions as are necessary to levy and certify such levy. Motion by: Second by: Motion passed this I st day of August 2016. Attest by: Walter R. Fehst, Executive Director Gary L. Peterson, President EDA Minutes Page 6 August 1, 2016 EDA RESOLUTION 2016 -20 RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR COLUMBIA HEIGHTS (EDA) ADOPTING THE 2017 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 $297,018 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 I" day of August 2016. MOTION BY: Williams SECONDED BY: Szurek Attest by: Walter R. Fehst, Executive Director Gary L. Peterson, President EDA Minutes Page 7 August 1, 2016 3. Revised Single Family Home Lot Sales Program- Resolution 2016 -21 Dahl stated that in September 2015, the EDA adopted the Single Family Home Lot Sales Program for the conveyance of certain lots owned by the EDA to builders licensed by the State of Minnesota. The program was adopted for reinvestment in Columbia Height's neighborhoods through the construction of owner- occupied single family homes. Currently, many of the lots in the program have been conveyed to state - licensed builders; however with the lots that remain and the additional lots identified for EDA acquisition, modifications are recommended to improve the clarification, effectiveness and efficiency of the program. The revised Single Family Home Lot Sales Program and the Purchase and Redevelopment Agreement documents were enclosed in the agenda packets. Changes are noted on both documents by a skikethre for a deletion and an underline for an addition. The modifications proposed are as follows: • Rather than a First -Come, First -Served program, EDA staff will evaluate all proposals received in the month prior to determine the proposal that best meets the program's guidelines. Clarification about the Program's process for state - licensed builders to purchase six - month options or to purchase lots. Rather than the earnest deposit of $2,000 being deposited after the EDA approves a Purchase and Redevelopment Agreement, the earnest deposit of $2,000 is proposed to be deposited with a builder signed Purchase and Redevelopment Agreement before the EDA approves a Purchase and Redevelopment Agreement for a specific lot. • Clarification of the $2,000 earnest deposit being non - refundable to cover the cost of professional service fees for drafting lot specific Purchase and Redevelopment Agreements and closing cost preparation. Staff recommends adopting Resolution 2016 -21, a resolution revising the guidelines for conveyance. Ouestions /Comments: Williams asked if the Demolition Contractor had been contacted to see if we can back charge him for failing to do the proper compaction. Dahl said he had located the contracts and that several contractors were hired to do the demolitions. He stated that the sites were supposed to be compacted to a certain level and they evidently were not. He said the question now is whether it is economically feasible to go after them, and staff will have a discussion with the City Attorney regarding this. EDA Minutes Page 8 August 1, 2016 Schmitt asked if the lots were large enough to warrant compacting the soils since some of them were less than the 50 ft minimum. Hogeboom said the majority of the lots in the Sheffield area did meet the minimum width requirements. Peterson asked why the soil that was being excavated for the house /foundation couldn't be used to compact the site. It needs to be dug out anyways, so he found it hard to believe that they would actually need more soil. Magdik told members that at 4618 Polk Street, Tollberg had to go much deeper than planned before hitting good soil so the foundation could be installed. And he said that at 4600 Polk St, they had to bring in extra soil in order to build on the site. Motion by Murzyn , seconded byWilliams, to waive the reading of Resolution 2016 -21, there being ample copies available to the public. All ayes. MOTIONPASSED. Motion by Murzyn, seconded by Williams, to adopt Resolution 2016 -21, a resolution approving the revised guidelines for conveyance of certain lots owned by the Economic Development Authority. All ayes. MOTIONPASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2016-21 RESOLUTION APPROVING REVISED GUIDELINES FOR CONVEYANCE OF CERTAIN LOTS OWNED BY THE ECONONOMIC DEVELOPMENT AUTHORITY 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 "), and is currently administering the Downtown CBD Redevelopment Project ( "Redevelopment Project ") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ( "HRA Act "). 1.02. Within the Redevelopment Project, the Authority has acquired certain parcels suitable for the construction of single - family homes, which parcels are described in Exhibit A hereto (the "Subject Parcels "). EDA Minutes Page 9 August 1, 2016 1.03. The Authority created its Single Family Home Lot Sales Program and approved preliminary guidelines for this program (the "Guidelines ") on September 8, 2015, and approved amendments to the Guidelines on January 4, 2016. Pursuant to the Guidelines, the Authority has conveyed certain of the Subject Parcels to contractors that will construct homes for sale to owner - occupants, and intends to convey the remaining Subject Parcels for the same purpose. The Authority may in the future identify additional parcels suitable for such construction. 1.04. The Authority has determined that additional revisions to the Guidelines are needed, and has caused revisions to the Guidelines to be prepared in the form presented to the Board. Section 2. Revised Guidelines Approved: Further Proceedings. 2.01. The Board approves the Guidelines as modified. 2.02. Authority staff and consultants are authorized and directed to negotiate sales of the Subject Parcels with qualified contractors, subject to the condition that before the EDA is obligated to sell any Subject Parcel, the Board shall approve a purchase and redevelopment agreement with the buyer of that parcel following a duly notice public hearing thereon, as described in the Guidelines. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 1 st day of August, 2016. ATTEST: Secretary President EXHBIT A Subject Parcels ADDRESS LEGAL DESCRIPTION PID 4606 Polk Street NE Lot 13, except the North %2, the North 30 feet of Lot 14, 25- 30 -24 -33 -0030 Block 2, Sheffield's Second Subdivision, Anoka County, Minnesota omens] 4636 Polk Street NE* Lot 5, except the North 35 feet thereof, all of Lot 6, and the 25- 30 -24 -33 -0025 North %2 of Lot 7, in Block 2, Sheffield's Second Subdivision, Anoka County, Minnesota onens 4641 Tyler Street NE Lot 25 and the South 20 feet of Lot 26, Block 2, Sheffield's 25- 30 -24 -33 -0038 Second Subdivision, Anoka County, Minnesota Torrens 4600 Polk Street NE* Lot 14, except the North 30 feet thereof, and Lot 15, Block 25- 30 -24 -33 -0031 2, Sheffield's Second Subdivision, Anoka County, Minnesota [Torrens 4648 Polk Street NE* South %2 of Lot 2, and all of Lot 3, Block 2, Sheffield's 25- 30 -24 -33 -0023 Second Subdivision, Anoka County, Minnesota [Torrens] 4618 Polk Street NE* Lot 11, and the North 10 feet of Lot 12, Block 2, 25- 30 -24 -33 -0028 Sheffield's Second Subdivision, Anoka County, Minnesota [Tonens] * Sold to qualified contractor, no longer available. EDA Minutes Page 10 August 1, 2016 4. Single Family Home Lot Sales Program Concept Application Approval for 4606 Polk Street In September, the Columbia Heights Economic Development Authority (EDA) created the Single Family Home Lot Sales Program for conveyance of certain EDA owned lots to state - licensed builders. The program's lot prices are based upon the Estimated Market Land Value for each individual property. However, the EDA has the right to review and adjust lot prices periodically provided that sufficient evidence supports the lots price reduction. The EDA has received a completed proposal form (Attached) from Home Detail, LLC (Home Detail) proposing to purchase the property located at 4606 Polk St. NE for $16,000. The Estimated Market Land Value for this particular property is $45,000. However, in speaking with various home builders, staff received feedback that the lots currently available in the program, which are located in the Heritage Heights neighborhood, are generally lower value than other properties throughout the City of Columbia Heights. Along with a completed application, Home Detail has submitted a proposal (Attached) containing a written letter of intent and one representative example of a house that Home Detail would build on this lot if the proposal is accepted. The house example is not exactly what Home Detail intends to build, but rather an example of the quality and features that will be incorporate into the actual house plans. Staff reached out to City departments and surrounding communities that have previously worked with Home Detail. Home Detail constructed a new single family home in Columbia Heights located at 4631 Pierce Street NE. EDA staff received negative feedback from the Building Inspections Department about two separate issues as follows: • On August 28, 2015 a Purchase and Redevelopment Agreement, by and between, the EDA and Home Detail was fully executed for the conveyance of an EDA owned lot located at 4631 Pierce Street NE. The EDA conveyed the property by a Quit Claim Deed to Home Detail on September 10, 2015. Before construction of the Single Family Home began, Home Detail conveyed the property by Warranty Deed to an Owner Occupant on September 28, 2015. Building code stipulates that the owner of the property is responsible for corrections to be made. In this situation, the Building Inspections Department had no enforcement for Home Detail to make required corrections, other than enforcement sent to the Owner Occupant to hold Home Detail accountable. Currently, 4631 Pierce Street has been issued a Temporary Certificate of Occupancy because completion of the Single Family Home has not been completed. Before a Certificate of Occupancy will be issued by the Building Official, erosion controls (ie. landscaping, sodding and silt barrier) must be completed. The Building Inspections Department has sent written orders to Home Detail to complete the erosion controls, however the erosion controls remain unfinished. EDA Minutes Page 11 August 1, 2016 EDA staff received both positive and negative feedback from surrounding communities. Much of the positive feedback received was the quality of Home Detail's finished interior product, as well as house designs that went above the minimum requirements of different housing programs. However, the negative feedback received by other communities was that exterior improvements (ie. Siding, landscaping, and sodding) either took over a year to complete or have not been completed at all. For EDA's consideration tonight is the concept approval of Home Detail's application for the property located at 4606 Polk Street NE. If the EDA approves the concept approval, EDA staff will work with Home Detail to determine specific house plans and to prepare a Purchase and Redevelopment Agreement for the property to be approved at the next EDA meeting on September 5, 2016. The EDA does not need to hold a public hearing for 4606 Polk Street NE since a public hearing was already held on October 12, 2015 — Resolution 2015 -22. Staff is looking to the Columbia Heights Economic Development Authority to decide whether or not to approve Home Detail's concept application. The decision tonight is not to actually approve the sale. That will be brought before the EDA at the September meeting once a Purchase & Redevelopment Agreement and earnest money check is actually submitted. Ouestion/comments: Szurek asked if the new homeowners moved in prior to everything being completed at 4631 Pierce St. Dahl explained that they did move in under a "Temporary Certificate of Occupancy ", but that the outstanding items still have not been completed. Dahl said the City of Fridley also had similar issues with the houses he built in their City. Some exterior items have taken as long as two years to complete and that the City has had to take legal action before they were addressed. Peterson questioned why the property ownership was transferred prior to construction. Magdik explained that he prefers to do a one -time close process, that way the homeowner is the one on the hook from the beginning. The owner obtains his own construction loan and becomes the General Contractor. This way it is not in the builder's name, and he is not responsible for the home. He told members he does this because the owners he has been working with have minimal down payments, and he doesn't want to get stuck owning the home. Magdik also addressed the landscaping and exterior work that has been an issue in Fridley. He admitted that he still has work left on those properties and blamed it on his sider being too busy to finish the work. EDA Minutes Page 12 August 1, 2016 Dahl said that it has come to his attention that our Purchase and Redevelopment Agreement requires a Certificate of Completion from the City be filed with Anoka County, in addition to the Certificate of Occupancy being issued. He said staff will be seeing to it that this is done on all new homes going forward under this program. Motion by Williams, seconded by Szurek, to approve the concept application submitted by Home Detail for the property located at 4606 Polk Street NE, Columbia Heights, MN 55421. All ayes. MOTIONPASSED. Motion by Williams, seconded by Szurek, to authorize staff and consultants to work with Home Detail, LLC to determine specific house plans for the construction of a single family home and to prepare a Purchase and Redevelopment Agreement to be considered for final approval by the EDA at its next meeting of September 5, 2016 All ayes. MOTIONPASSED. The meeting was adjourned at 7:18 pm. Respectfully subndtted, Shelley Hanson Secretary RESOLUTION NO. 2016-22 A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving the Financial Statements for the Month of July, 2016 and the Payment of the Bills for the Month July, 2016. 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 month of July, 2016 have 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. 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Many specifics are still being discussed between staff, Ehlers and Hy -Vee however, possible uses for which public financial assistance is being requested consist of environmental cleanup, land acquisition, demolition, additions, site improvements, site work, remodel of exterior, and soil corrections. In Columbia Heights, the Columbia Heights Economic Development Authority (EDA) is the authority authorized to exercise Tax Increment Financing (TIF) powers, however the EDA may not exercise any TIF powers without the prior approval of the City Council (Council) of the City of Columbia Heights (City). Previously, the EDA and the Council established a redevelopment project designated as the Downtown Central Business District Revitalization Plan. The revitalization plan has encouraged development and redevelopment within the City along Central Avenue; however, modifications must be added to encompass the renovations proposed by Hy -Vee. In order to establish a TIF District for Hy -Vee, certain events must occur that are outlined on the attached document (TIF Establishment Schedule of Events). As part of that process, the EDA must formally request that the Council call for a public hearing to consider modifications to the Downtown Central Business District Revitalization Plan and for the establishment of the Hy -Vee TIF District. STAFF RECOMMENDATION: Staff recommends adopting Resolution 2016 -23, a resolution requesting City Council to call for a Public Hearing for the Modification to the Downtown Central Business District Revitalization Plan and for the Establishment of the Hy -Vee TIF District. RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2016 -23, there being ample copies available to the public. Motion: Move to adopt Resolution 2016 -23, a resolution requesting City Council to call for a Public Hearing on October 24, 2016 at approximately 7:00 PM for the Modification to the Downtown Central Business District Revitalization Plan for the CBD Redevelopment Project and the Establishment of the Hy -Vee TIF District. ATTACHMENTS: 1. Resolution 2016 -23 (1 Page) 2. TIF Establishment Schedule of Events (2 Pages) City of Columbia Heights - EDA Letter COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY CITY OF COLUMBIA HEIGHTS ANOKA COUNTY, STATE OF MINNESOTA RESOLUTION NO. 2016-23 RESOLUTION REQUESTING THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS CALL FOR A PUBLIC HEARING ON THE MODIFICATION OF THE DOWNTOWN CBD REVITALIZATION PLAN FOR THE CBD REDEVELOPMENT PROJECT AND THE ESTABLISHMENT OF THE HY -VEE TAX INCREMENT FINANCING DISTRICT (A REDEVELOPMENT DISTRICT). BE IT RESOLVED, by the Board of Commissioners (the "Board ") of the Columbia Heights Economic Development Authority, Minnesota (the "EDA ") as follows: WHEREAS, the City Council (the "Council ") of the City of Columbia Heights, Minnesota (the "City ") established the CBD Redevelopment Project pursuant to Minnesota Statutes, Minnesota Statutes, Sections 469.174 to 469.1794, inclusive, as amended, in an effort to encourage the development and redevelopment of certain designated areas within the City; and WHEREAS, the EDA is proposing the modification of the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and the establishment of the Hy -Vee Tax Increment Financing District, pursuant to, and in accordance with, Minnesota Statutes, Sections 469.174 to 469.1794 and Sections 469.090 through 469.1082, inclusive, as amended; NOW, THEREFORE BE IT RESOLVED by the Board as follows: 1. The EDA hereby requests that the Council call for a public hearing on October 24, 2016 to consider the proposed modification of the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and the proposed adoption of the TIF Plan for the Hy -Vee Tax Increment Financing District (collectively, the "Plans ") and cause notice of said public hearing to be given as required by law. 2. The EDA directs the Executive Director to transmit copies of the Plans to the Planning Commission of the City and requests the Planning Commission's written opinion indicating whether the proposed Plans are in accordance with the Comprehensive Plan of the City, prior to the date of the public hearing. 3. The Executive Director of the EDA is hereby directed to submit a copy of the Plans to the Council for its approval. 4. The EDA directs the Executive Director to transmit the Plans to the county and the school district in which the Hy -Vee Tax Increment Financing District is located not later than September 23, 2016. 5. Staff and consultants are authorized and directed to take all steps necessary to prepare the Plans and related documents and to undertake other actions necessary to bring the Plans before the Council. Approved by the Board on September 6, 2016. Chair ATTEST: SCHEDULE OF EVENTS COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND THE CITY OF COLUMBIA HEIGHTS ANOKA COUNTY, MINNESOTA MODIFICATION TO THE DOWNTOWN CBD REVITALIZATION PLAN FOR THE DOWNTOWN CENTRAL BUSINESS DISTRICT (CBD) REDEVELOPMENT PROJECT AND THE ESTABLISHMENT OF THE HY -VEE TAX INCREMENT FINANCING DISTRICT (a redevelopment district) (as of August 26, 2016) September 6, 2016 EDA Requests that the City Council calls for a public hearing on the Modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and the Establishment of the Hy -Vee TIF District. September 12, 2016 City Council calls for a public hearing on a Modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and the Establishment of the Hy -Vee Tax Increment Financing District. September 12, 2016 Project information (property identification numbers for proposed property to be purchased, project description, and maps) for drafting necessary documentation sent to Ehlers. N /A* Project information submitted to the County Board for review of county road impacts if necessary* (at least 45 days prior to public hearing). *The County Board, by law, has 45 days to review the TIF Plan to determine if any county roads will be impacted by the development. Because City staff believes that the proposed tax increment financing district will not require unplanned county road improvements, the TIF Plan was not forwarded to the County Board 45 days prior to the public hearing. Please be aware that the County Board could claim that tax increment should be used for county roads, even after the public hearing. September 14, 2016 Letter received by County Commissioner giving notice of potential housing tax increment financing district (at least 30 days prior to publication of public hearing notice.) [Ehlers will fax and mail on or before September 14, 2016.] September 23, 2016 Fiscal/economic implications received by School Board Clerk and County Auditor (at least 30 days prior to public hearing). [Ehlers will fax & mail on or before September 23, 2016] October 3, 2016 Ehlers conducts internal review of the Plans. EHLERS LFAUFB$ r UBtlf. LE SCHEDULE OF EVENTS - PAGE TWO COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND THE CITY OF COLUMBIA HEIGHTS ANOKA COUNTY, MINNESOTA MODIFICATION TO THE DOWNTOWN CBD REVITALIZATION PLAN FOR THE DOWNTOWN CENTRAL BUSINESS DISTRICT (CBD) REDEVELOPMENT PROJECT AND THE ESTABLISHMENT OF THE HY -VEE TAX INCREMENT FINANCING DISTRICT (a redevelopment district) October 3, 2016 EDA adopts a resolution approving a Modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and the Establishment of the Hy -Vee Tax Increment Financing District. October 4, 2016 Planning Commission reviews the Plans to determine if they are in compliance with City's comprehensive plan and adopts a resolution approving the Plans. October 14, 2016 Date of publication of hearing notice and map (at least 10 days but not more than 30 days prior to hearing). [Sun Focus publication deadline October 10, 2016 by 11:00 A.M. — Ehlers will submit notice & map on or before October 10, 2016.] October 24, 2016 City Council holds a public hearing at 7:00 P.M. on the Modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and the Establishment of the Hy -Vee Tax Increment Financing District and passes resolution approving the Plans. [Ehlers will email Council packet information to the City on or before October 17, 2011.] City Council approves an Interfund Loan in connection with the Hy -Vee Tax Increment Financing District. Ehlers files the Plans with the MN Department of Revenue, Office of the State Auditor, and Anoka County. EHLERS 11 �..., Ci COLUMBIA HEIGHTS AGENDA SECTION BUSINESS ITEM ITEM NO. 7 MEETING DATE SEPTEMBER 6, 2016 CITY OF COLUMBIA HEIGHTS — ECONOMIC DEVELOPMENT AUTHORITY ITEM: Scattered Site TIF District— Consideration of Lot Sale Authorization 4235 Washington Street DEPARTMENT: Community Development CITY MANAGER'S APPROVAL: BY /DATE: Keith M Dahl, August 24, 2016 BY /DATE: BACKGROUND: Over the years, the Columbia Heights Economic Development Authority (EDA) has acquired property within the City of Columbia Heights for economic development purposes. In 2009, the EDA approved the "Scattered Site Housing Program" in an effort to address foreclosure issues and remediate the emergence of blight within Columbia Height's neighborhoods. The program was setup to purchase blighted residential properties, demolish the house, and then sell the vacant lots to families seeking new construction of single - family homes. In 2013, the EDA approved Resolution 2013 -07, a resolution approving plan for conveyance of twelve (12) scattered site lots owned by the EDA. The EDA intended to convey these properties to Timbercraft to construct single - family homes, and to that end has also engaged the services of Re /Max Synergy through an Exclusive Right to Sell Listing Contract. The property located at 4235 Washington Street Columbia Heights, MN 55421 is one of those twelve properties intended to be conveyed to Timbercraft once Re /Max Synergy found a Buyer. Also in 2013, the EDA and Timbercraft negotiated purchase prices for all twelve properties. The purchase price negotiated for 4235 Washington Street was $10,000. This property is the last property in the Scattered Site Housing Program to sell and will conclude the Exclusive Right to Sell Listing Contract with RE /Max and Timbercraft. Since a public hearing was held June 3, 2013 for the sale of 4235 Washington Street, the resolution before the EDA tonight is approving the Purchase and Redevelopment Agreement between the EDA and Timbercraft for the property located at 4235 Washington Street. STAFF RECOMMENDATION: Staff recommends approval of Resolution 2016 -24, authorizing approval of the Purchase and Redevelopment Agreement with Timbercraft Enterprises Inc. for the conveyance of 4235 Washington Street, Columbia Heights, MN 55421. RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2016 -24, there being ample copies available to the public. Motion: Move to adopt Resolution 2016 -24, a resolution approving a Purchase and Redevelopment Agreements with Timbercraft Enterprises Inc. for the conveyance of 4235 Washington Street, Columbia Heights, MN 55421. ATTACHMENTS: 1. Resolution 2016 -24 (2 Pages) 2. Purchase Agreement (16 Pages) City of Columbia Heights - EDA Letter COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2016-24 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 469.1081 ( "EDA Act "), and has previously established its Central Business District Redevelopment Project (the "Project ") within the City of Columbia Heights (the "City") and its City-Wide Scattered Site Tax Increment Financing District (the "TIF District") within the Project, and has developed program design guidelines in connection with the construction of homes within the TIF District (the "Guidelines "). 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 within the TIF District, currently owned by the Authority, located at 4235 Washington Street NE and described as the North 10 feet of Lot 23, and all of Lot 24, Block 31, Columbia Heights Annex to Minneapolis, 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 Guidelines and to the City's zoning and building codes and policies. 1.04. The Authority previously 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, and approved the conveyance of the Property pursuant to the Guidelines by Resolution No. 2013- 07. 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 established for the TIF District pursuant to the Tax Increment Financing Plan for the TIF District. 1.06. The Board has reviewed the Contract and finds that the execution thereof and performance of the Authority's obligations thereunder are consistent with the Guidelines, and are in the public interest and will further the objectives of its general plan of economic development and 11134:13:13 1S .RQW- 11RLL'] redevelopment, because they 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. 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 6th day of September, 2016. President ATTEST: Secretary 485383A MNI CL205A9 PURCHASE AND REDEVELOPMENT AGREEMENT 4235 Washington Street, Columbia Heights, Minnesota 1. Parties. This Purchase Agreement is made as of September 6, 2016 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 TimberCraft Enterprises, Inc., a Minnesota corporation (the `Buyer'). 2. Offer /Acceptance. Buyer offers to purchase and Seller agrees to sell real property legally described as follows (the "Property): The North 10 feet of Lot 23, and all of Lot 24, Block 31, Cohunbia Heights Annex to Minneapolis, Anoka County, Minnesota. 3. Price and Terms. The price for the Property is $10,000.00 which Buyer shall pay as follows: Earnest money of $500.00 by check, receipt of which is hereby acknowledged by Seller, and the balance of $9,500.00 to be paid by certified check on the Date of Closing. The "Date of Closing" shall be September 9'h, 2016, or such other earlier or later date as the parties mutually agree. 4. 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. 5. 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'). 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 2016. Seller represents that there are no special assessments pending as of the date of this agreement. If special assessment becomes pending after the date of this agreement and before the Date of Closing Buyer may, as Buyer's option: 484508vl CL205 -49 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 refinded to Buyer. 7. Closing Costs and Related Items. The Seller shall be responsible for the following costs: (a) recording fees and conservation fees for all instnunents 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 (1) closing fee, if any. Each party shall be responsible for its own attorneys' fees and costs. 8. Sewser 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 ofthe water stub. 9. Condition of Property. Buyer acknowledges 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 ofdetemvning if the soli 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 ofthe Property. 10. Marketability of Title. As soon as reasonably practicable after the date of this Agreement, Seller shall famish to Buyer a registered property abstract or an updated abstract of title to the Property, certified to date to include proper searches covering bankruptcies, state and federal judgment and hens. 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 (n) thirty (30) days to have such objections removed or satisfied. 484508vl CL205 -49 11. Title Clearance and Remedies. If Seller shall fA 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 arty ofthe 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 arty note given pursuant to this contract is a down payment note, and may be presented for payme=nt 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 lt 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 fm* dwelling described in this Section is referred to as the "Minimum Improvements." B. The Minimum Improvements shall consist of a house with approximately 1248 square feet, 3 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 Community Development Department prior to commencement of construction Construction of the Minimum Improvements must be substantially completed by December 31 s`, 2016. Construction will be considered 3 484508vr CL205 -49 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 linprovements (including the date for completion thereof), the Seller will fimvsh 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 instnm ants 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 necessary to enable the Buyer or any successor in interest to the Property, or any part thereof to constrict 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: (1) any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the Seller, necessary and 4 4845080 CL205 -49 adequate to fiM the obligations undertaken in this Agreement by the Buyer as to the portion of the Property to be transferred; and (i) 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. (ii) Arry 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. (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 484508v1 CL205 -49 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 wig meet the income qualifications under this paragraph; and (2) If the proposed Owner Occupant will not meet the income ]units, describe Buyer's efforts to find an income- qualified buyer; and (2) If the proposed Owner Occupant will meet the income knits, submit to Seller evidence of Owner Occupant's income in a form satisfactory to Seller, evidencing compliance with the income ]units described above. The covenant in this Section applies only to the first sale of the Property to an Owner Occupant, and does not apply to any subsequent sale by an Owner Occupant to any other person or party. 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), furls to cant' out its obligations with respect to the construction of the Minima n Improvements (including the nature and the date for the completion thereof), or abandons or substantially suspends 4845080 CL205 -49 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 portion of the Property for which a Certificate of Completion has been issued. For the purposes of this Agreement, the tern "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 pail by the Buyer under Section 4 of this Agreement as follows: (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); a] 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, ifpaid, equal to such taxes, assessments, or charges (as detemined 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 hens existing on the Property 7 484508v1 CL205 -49 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 Minirrnun 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 ofmailmg. 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. 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 fled of record with the Anoka County Registrar of Titles or Office of Recorder, as the case may be. Buyer shall pay all recording costs. 484508v1 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 Its President STATE OF MINNESOTA } ss. COUNTY OF ANOKA 0 Its Executive Director The foregoing was acknowledged before me this day of 20_, by and ,the President and Executive Director of Cohunbia Heights Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic. Notary Public S -1 484508v1 CL205 -49 STATE OF MINNESOTA } ss. COUNTY OF ANOKA BUYER: The foregoing was acknowledged before me this , the on behalf of the This document drafted by: Kennedy & Graven, Chartered 470 U.S. Bank Plaza Minneapolis, MN 55402 S -2 484508v1 CL205 -49 day of of Notary Public 20_, by a Minnesota .,.t t v . to PURCHASE AND REDEVELOPMENT AGREEMENT FORM OF QUIT CLAIM DEED Deed Tax Due: $ FOAL Date: 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 Min inium 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 Cohunbia Heights, Minnesota, or for the refinancing of the same. A -1 484508v1 CL205 -49 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 Mininunn 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 fiunish the Grantee with an appropriate instrument so certifying. Such certification by the Grantor shall be (and it shall be so provided in the 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 Minunum 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 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 farm 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 ofthe Agreement for a period often years after the date hereof It is intended and agreed that the above and foregoing agreements and covenants shall be covenants Tuning with the land for the respective terms herein provided, and that they shall, in any event, and witluut 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 A -2 484508vt CL205 -49 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 the interest of the connmmity 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. A -3 4845080 CL205 -49 IN WITNESS WHEREOF, the Grantor has caused this Deed to be duly executed in its behalf by its President and Executive Director as of the date written above. ❑ The Seller certifies that the Seller does COLUMBIA HEIGHTS ECONOMIC not know of any wells on the described DEVELOPMENT AUTHORITY real property. ❑ A well disclosure certificate By accompanies this document or has been electronically filed. (If electronically Sled, insert WDC number: ❑ I am fann7iar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. STATE OF MINNESOTA ) ) ss COUNTY OF ANOKA ) Its President QI Its Executive Director 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 said insfinnent was signed 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. This instrument was drafted by: Kennedy & Graven, Chartered 470 U.S. Bank Plana 200 South Sixth Street Minneapolis, MN 55402 (612) 337 -9300 Notary Public Tax Statements should be sent to: A -4 484508vl CL205 -49 ,I,I t t 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 Atoka 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; 0 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 temmiation 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: , 20 COLUMBIA HEIGHTS ECONOMIC DEVELOPMEN AUTHORITY By Its President By Its Executive Director B -1 484508vl CL205 -49 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 484508v1 CL205 -49 CH COLUMBIA HEIGHTS AGENDA SECTION BUSINESS ITEMS ITEM NO. 8 MEETING DATE SEPTEMBER 6, 2016 CITY OF COLUMBIA HEIGHTS — ECONOMIC DEVELOPMENT AUTHORITY ITEM: Single Family Home Lot Sales Program — Final Sale Approval for 4606 Polk Street DEPARTMENT: Community Development CITY MANAGER'S APPROVAL: BY /DATE: Keith M. Dahl, August 30, 2016 BY /DATE: BACKGROUND: The program's lot prices are based upon the Estimated Market Land Value for each individual property. However, the EDA has the right to review and adjust lot prices periodically provided that sufficient evidence supports the lots price reduction. The Estimated Market Land Value for this particular property is $45,000. However, in speaking with various home builders, staff received feedback that the lots currently available in the program, which are located in the Heritage Heights neighborhood, are generally lower in value compared to other properties throughout the City of Columbia Heights. August 1, 2016, the Columbia Heights Economic Development Authority (EDA) approved the concept approval of Home Detail's application proposing to purchase the property located at 4606 Polk St. NE for $16,000. The EDA also directed staff to work with Home Detail to determine specific house plans for the Purchase and Redevelopment Agreement. In accordance to the adopted Single Family Home Lot Sales Program, Home Detail has provided an executed Purchase and Redevelopment Agreement with specific house plans (Attached) and paid an earnest deposit of $2,000 to the EDA. For EDA consideration tonight is the sale approval of 4606 Polk Street NE to Home Detail for the construction of a single family home. If the Purchase and Redevelopment Agreement is not approved by the EDA, the earnest deposit will be returned to Home Detail. If the Purchase Agreement is approved by the EDA, the earnest deposit is non - refundable and will be credited toward the purchase price of the property at closing. At the last EDA meeting, staff indicated that Home Detail has previously constructed a home at 4631 Pierce Street NE. Currently, 4631 Pierce Street has been issued a Temporary Certificate of Occupancy because completion of the Single Family Home has not been completed. Before a Certificate of Occupancy will be issued by the Building Official, erosion controls (ie. landscaping and sodding) must be completed. STAFF RECOMMENDATION: Staff recommends sale approval of 4606 Polk Street NE to Home Detail contingent on Home Detail obtaining a Certificate of Occupancy for 4631 Pierce Street NE. RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2016 -25, there being ample copies available to the public. Motion: Move to adopt Resolution 2016 -25, a resolution approving a Purchase and Redevelopment Agreements with Home Detail, Inc. for the acquisition of the property located at 4606 Polk St. ATTACHMENTS: 1. Resolution 2016 -25 (2 Pages) 2. Purchase and Redevelopment Agreement (24 Pages) City of Columbia Heights - EDA Letter COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2016-25 RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT AGREEMENT WITH HOME DETAIL, INC. BE IT RESOLVED BY the Board of Commissioners ( "Board ") of the Columbia Heights Economic Development Authority (the "Authority ") as follows: Section 1. Recitals. 1.01. The Authority has previously adopted a program called the Single Family Home Lot Sales Program (the "Program "), and has adopted guidelines in connection with the Program (the "Guidelines "). 1.02. The Authority has received an offer from Home Detail, Inc. (the "Buyer ") to purchase certain property included in the Program (the "Property "), described as attached hereto as Exhibit A, and the parties have negotiated a Purchase and Redevelopment Agreement (the "Agreement ") which provides for the conveyance of the Property to the Buyer and the construction by the Buyer of a single - family home on the Property, all pursuant to the Guidelines. 1.03. On October 6, 2015, the Planning Commission of the City reviewed the proposed conveyance of the Property pursuant to the Program and found that such conveyance is consistent with the City's comprehensive plan. 1.04. On January 4, 2016, the Authority conducted a duly noticed public hearing regarding the conveyance of the Property pursuant to the Program, at which all interested parties were given an opportunity to be heard, and approved such conveyance by Resolution No. 2016 -02. 1.05. Subsequent to Authority approval of the conveyance of the Property pursuant to the Program and Guidelines, the Buyer requested and the Authority agreed to a reduction in the purchase price of the Property, due to higher- than- anticipated Buyer expenses related to the condition of the soils on the Property. 1.06. The Board has reviewed the Agreement and finds that the execution thereof and performance of the Authority's obligations thereunder, including the conveyance of the Property to the Buyer, are consistent with the Guidelines and in the best interest of the City and its residents. Section 2. Approval and Authorization of Agreement and Conveyance 2.01. The Agreement as presented to the Board and the conveyance of the Property provided for therein are 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 Agreement by such officials shall be conclusive evidence of approval. C niffladIJ[NN11FIIT-1 2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority's obligations under the Agreement as a whole, including without limitation execution of any documents to which the Authority is a party referenced in or attached to the Agreement, and any deeds or other documents necessary to convey the Property to the Buyer, all as described in the Agreement. Section 3. Effective Date. This resolution shall be effective upon approval. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 6th day of September, 2016. President ATTEST: Secretary 4853850 MNI CL205 -56 EXHIBIT A Property Lot Thirteen (13), except the North Half (N %), the North Thirty Feet (N30') of Lot Fourteen (14), Block Two (2), Sheffield's Second Subdivision, Anoka County, Minnesota. 485385v MNI CL205 -56 PURCHASE AND REDEVELOPMENT AGREEMENT 4606 Polk Street NE, Columbia Heights, Minnesota 1. Parties. This Purchase and Redevelopment Agreement is made as of September 6, 2016 between the COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic wider the laws of Minnesota having its office located at 590 40TH Avenue NE, Cohunbia Heights, MN (the "Seller'), and Home Detail, Inc., a Minnesota corporation, having its principal office at 1009 118" Avenue NE, Blaine, MN 55434 (the `Buyer') (the "Agreement'). 2. Offer /Acceptance. Buyer offers to purchase and Seller agrees to sell real property in Anoka County, Minnesota, legally described as follows (the "Property): Lot Thirteen (13), except the North Half (N %2), the North Thirty Feet (N30') of Lot Fourteen (14), Block Two (2), Sheffield's Second Subdivision. Check here ifpart or all of the land is Registered (Torrens) 0 3. Acceptance Deadline. This offer to purchase, unless accepted sooner, shall be null and void at 430 p.m on September 20, 2016, and in such event all earnest money shall be refunded to Buyer. 4. Price and Terms. The price for the Property is $16,000.00 ( "Purchase Price') which Buyer shall pay as follows: nonrefiindable earnest money of $2,000 by check, receipt of which is hereby acknowledged by Seller. The balance of the Purchase Price must be paid by certified check or wire transfer on the Date of Closing. The "Date of Closing" shall be no later than November 8, 2016. 5. 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. 1 484481 v2 CL205 -56 6. Deed. Upon performance by Buyer, Seller shall deliver a quit claim deed conveying title to the Property to Buyer, in substantially the firm attached as Exhibit A, subject to the conditions subsequent required by Sections 15, 16, and 17 of this Agreement (the "Deed'). Real Estate Taxes and Special Assessments. A. Seller shall pay, at or before closing all real estate taxes due and payable in 2015 and prior years. Real estate taxes due and payable in the year of closing shall be pro -rated to Seller and Buyer as of the Date of Closing. B. 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 in the year of closing. 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: Assume payment of the pending special assessment without adjustment to the purchase agreement price of the property; or 2. 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 Declare this agreement null and void by notice to Seller, and earnest money shall be refunded to Buyer. S. Closing Costs and Related Items. The Buyer will pay: (a) the closing fees charged by the title insurance or other closing agent, if any, utilized to close the transaction contemplated by this Agreement; (b) fees for title evidence obtained by Buyer; (c) the recording fees for this Agreement and for the Deed transferring title to Buyer. Seller will pay all other fees normally paid by sellers, including (a) any transfer taxes, and Well Disclosure fees required to enable Buyer to record its deed from Seller under this Agreement, and (b) fees and charges related to the fling of any instrument required to make title marketable. Each party shall pay its own attorney fees. 9. Sewer and Water. Seller warrants that city sewer is available at the Property lime, 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 ofthe water stub. 10. Condition of Property. Buyer acknowledges 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 484481v2 CL205 -56 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. Seller makes no warranties as to the condition of the Property. 11. Marketability of Title. As soon as reasonably possible after execution of this Agreement by both parties: (a) Seller shall surrender any abstract of title and a copy of any owner's title insurance policy for the property, if in Seller's possession or control, to Buyer or to Buyer's designated title service provider; and (b) Buyer shall obtain the title evidence determined necessary or desirable by Buyer. The Buyer shall have 20 days from the date it receives such title evidence to raise any objections to title it may have. Objections not made within such time will be deemed waived. The Seller shall have 90 days from the date of such objection to affect a cure; provided, however, that Seller shall have no obligation to cure any objections, and may inform Buyer of such. The Buyer may then elect to close notwithstanding the uncured objections or declare this Agreement null and void, and the parties will thereby be released from any further obligation hereunder. 12. 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 upon provision of 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 fallowing 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; 484481Q CL205 -56 D. Seek specific performance within six months after such right of action arises. 13. Well Disclosure. Seller's knowledge ofwells is as follows: Q The Seller certifies that the Seller does not know of any wells on the described real property. ❑ A well disclosure certificate accompanies this document. ❑ I am familiar with the property described in this instrument and I certify that the status and number of wells on the Property have not changed since the last previously filed well disclosure certificate. 14. Individual Sewage Treatment System Disclosure. Seller certifies that there is no individual sewage treatment system on or serving the Property. 15. 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." B. The Minimum Improvements shall consist of new single family dwelling and shall be constructed substantially in accordance with the Single Family Home Lot Sales Program Guidelines on file at City Hall and the proposal approved by Seller on August 1, 2016, attached hereto as Exhibit B. C. Construction of the Minimum Improvements must be substantially completed no later than one year after the Date of Closing. Construction will be considered substantially complete when the final certificate of occupancy has been issued by the City of Columbia Heights building official D. 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 famish the Buyer with a Certificate of Completion, in the form attached hereto as Exhibit C, 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 instnunents pertaining to the Property. If the Seller shall refuse or fiil to provide any 4 484481v2 CL205 -56 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. E. The Buyer represents and agrees that until issuance of the Certificate of Completion for the Minimum Improvements: (1) Except for any agreement for 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 necessary to enable the Buyer to construct the Minimum Improvements or component thereof (2) If the Buyer seeks to effect a Transfer 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 finlfill the obligations undertaken in this Agreement by the Buyer as to the portion of the Property to be transferred; and (n) 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 484481 v2 CL205 -56 that (to the fullest extent pennitted 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 lmvt 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. (in) Any and all instnunents 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. (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. 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 Cohunbia Heights or Seller in accordance with this Agreement). The covenants in this paragraph rim 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. 16. 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), falls to carry 484481v2 CL205 -56 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 Elul re, 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 stakes, 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 irgunction or other similar judicial action, directly results in delays, or acts of any federal, state or local govennlental 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. 17. 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: (a) Fast, 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 evert 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 7 48448M CL205 -56 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 revestmg of title thereto in the Seller or to discharge or prevent from attaching or being made any subsequent encumbrances or hens 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. 18. Time is of the essence for all provisions of this contract. 19. Notices. All notices required herein shall be in writing and delivered personally or mafled to the address shown at paragraph 1 above and, if mailed, are effective as of the date of mailing. 20. Minnesota Law. This contract shall be governed by the laws of the State of Minnesota. 21. 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. 22. 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. 23. 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. 24. Recording. This Agreement shall be Sled of record with the Anoka County Registrar of Titles or Office of Recorder, as the case may be. Buyer shall pay all recording costs. 25. No Broker Involved. The Seller and represent and warrant to each other that there is no broker involved in this transaction with whom it has negotiated or to whom it has agreed to pay a broker commission Buyer agrees to indemnify Seller for any and all claims for brokerage commissions or finders' fees in connection with negotiations far purchase of the Property arising 484481Q CL205 -56 out of any alleged agreement or commitment or negotiation by Buyer, and Seller agrees to indemnify Buyer for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Seller. In witness of the foregoing, the parties have executed this agreement on the year and date written above. SELLER: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY 0 Its President STATE OF MINNESOTA I ss. COUNTY OF ANOKA 0 Its Executive Director The foregoing was acknowledged before me this day of September, 2016, by and , the President and Executive Director of Collunbia Heights Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic. Notary Public 9 484481v2 CL205 -56 BUYER: Home Detail, Inc. L-fi STATE OF MINNESOTA } ss. COUNTY OF ANOKA The foregoing was acknowledged before me this . the corporation, on behalf ofthe corporation This docurnent drafted by: Kennedy & Graven, Chartered 470 U.S. Bank Plaza 200 South 61h Street Minneapolis, MN 55402 10 484481v2 CL205 -56 day of 2016, by of Home Detail, Inc., a Minnesota Notary Public EIIIHBIT A to PURCHASE AND REDEVELOPMENT AGREEMENT FORM OF QUITCLAIM DEED Date: Deed Tax Due: $ ECRV: THIS INDENTURE, between the Columbia Heights Economic Development Authority, a Minnesota, a public body corporate and politic (the "Grantor'), and a Minnesota (the "Grantee'). WITNES SETH, 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'): Check here if part or all of the land is Registered (Torrens) ❑ 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 as "Purchase and Redevelopment Agreeinent" (hereafter referred to as the "Agreement's and that the Grantee shall not convey this Property, or any part thereof; except as pemnitted 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 finds 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 ofthe 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. 484481v2 CL205 -56 Promptly after completion of the Minimum Improvements in accordance with the provisions of the Agreement, the Grantor will famish the Grantee with an appropriate instlunent so certifying. Such certification by the Grantor shall be (and it shall be so provided in the certification itself) a conclusive detemrination 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 fall to provide any such certification in accordance with the provisions of the Agreement and this Deed, the Grantor shalt 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 terns and conditions of Sections 15, 16 and 17 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 tennination 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 15F 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 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. 484481v2 CL205 -56 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 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. IN WITNESS WHEREOF, the Grantor has caused this Deed to be duly executed in its behalf by its President and Executive Director, the date above written ❑ The Seller certifies that the Seller does rat know of any wells on the descnbed real property. ❑ A well disclosure certificate accompanies this document or has been electronically filed. (If electronically filed, insert WDC number: ❑ I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously Sled well disclosure certificate. 484481 v2 CL205 -56 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA ) ) ss COUNTY OF ANOKA ) 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 said instrument was signed 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. This instrument was drafted by Kennedy & Graven, Charted 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (612) 337 -9300 484481 v2 CL205 -56 Notary Public Tax Statements should be sent to: EXHIBIT B TO PURCHASE AND REDEVELOPMENT AGREEMENT APPROVED PROPOSAL 484481v2 CL205 -56 D a D fill S a t wl HOME DETAIL, INC. WASUGE RESIDENCE CgLlIAK ,l4l81!!A l o s Q L BIRCH HOME DESIGN, LLC MCHRECRI � 0MGN & DP NG R gg6T 5 � T 0 r DZ F pill T w. # WA&*E RESIDENCE BIRCH HE DESIGN, LLC mW � e HOME DETAIL, INC. .'..�. � OMD.I.N&.�11. 48€ , N t • i i 7 It swim I NOME DETAIL, INC. WA5UGE REVDENGE �q' �}� BIRCH HOME DESIGN, LLC cauaa mm ya�mu �� fn, �CH=ECN IIGC 1 &DR NG UTA&jcE �sor=NCE HOME DETAIL, INC. BIRCH HOME DESIGN, LLC ARCHIi£CIV� m�`IGC�& GRAFTING L O N N N n 1 Nn N Q U , 1w. I WASUGE RESIDENCE �}` BIRCH HOME DESIGN, LLC NOME DETAIL, NC. �IL �N &DESIGN &DRg NG EXHIBIT C W PURCHASE AND REDEVELOPMENT AGREEMENT FORM OF CERTIFICATE OF COMPLETION 484481 v2 CL205 -56 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 budding 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 Section 15B 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 Atoka and State of Minnesota are hereby authorized to accept for recording and to record, the fluig of this insriwnent, to be a conclusive determination of the satisfactory termination of the covenants and conditions of Section 15B 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 15F of the Agreement, and in Section 3 of the Deed, remain in full force and effect through the period stated thereon. Dated: 20 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director 484481 v2 CL205 -56 STATE OF MINNESOTA ) ) ss COUNTY OF ANOKA ) The foregoing inshwnent 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 484481Q CL205 -56 COLUMBIA CN HEIGHTS AGENDA SECTION BUSINESS ITEM ITEM NO. 9 MEETING DATE AUGUST 1, 2016 CITY OF COLUMBIA HEIGHTS - ECONOMIC DEVELOPMENT AUTHORITY ITEM: First Amendment — ACCAP Purchase Agreement for City Acquisition of 4641 -43 Polk Street DEPARTMENT: Community Development CITY MANAGER'S APPROVAL: BY /DATE: Keith Dahl, August 29, 2016 BY /DATE: BACKGROUND: June 2015, the Columbia Heights Economic Development Authority (EDA) approved Resolution 2015 -11, a resolution approving the acquisition of the Anoka County Community Action Program (ACCAP) property located at 4641 Polk Street NE (Property) for up to $75,000. The EDA and ACCAP entered into a Purchase Agreement dated as of May 26, 2016 contingent on the Property being released from any Minnesota Housing Finance Agency (MHFA) or United States Department of Housing and Urban Development (HUD) obligations. The MHFA committee was presented with ACCAP's request for the Property to be released from financial obligations for initial approval on July 12, 2016 and final approval on July 19, 2016. At that time, the MHFA tabled the item until further documentation was submitted, such as appraisals, quotes for renovation and a fully executed Purchase Agreement by and between the EDA and ACCAP. On August 23, 2016, after the additional documentation was provided to the MHFA, the MHFA approved the request for partial release of collateral and an amendment of the tax credit extended use agreement for 4641 Polk Street NE, Columbia Heights releasing the Property from MHFA and HUD obligations. ACCAP is ready to move forward with the City's acquisition of the Property; however the deadline for the closing needs to be extended because of unanticipated delays with releasing the property from financial obligations. The closing for the sale of the Property is proposed to be amended to take place on or before October 31, 2016 instead of the initially scheduled closing date of on or before September 1, 2016. STAFF RECOMMENDATION: Staff recommends the approval of Resolution 2016 -26, a resolution approving the First Amendment of a Purchase Agreement that will extend the closing date of the Property to take place on or before October 31, 2016. RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2016 -26, there being ample copies available to the public. Motion: Move to adopt Resolution 2016 -26, a resolution approving a First Amendment of a Purchase Agreement between the Columbia Heights Economic Development Authority and Anoka County Community Action Program. ATTACHMENTS: 1. Resolution 2016 -26 (2 Pages) 2. First Amendment to Purchase Agreement (2 Pages) COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 2016-26 RESOLUTION APPROVING A FIRST AMENDMENT OF A PURCHASE AGREEMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND ANOKA COUNTY COMMUNITY ACTION PROGRAM, INC. BE IT RESOLVED BY the Board of Commissioners ( "Board ") of the Columbia Heights Economic Development Authority (the "Authority ") as follows: Section 1. Recitals. 1.01. The Authority currently administers the Downtown CBD Redevelopment Project (the "Project ") within the City of Columbia Heights (the "City "), pursuant to Minnesota Statutes, Sections 469.090 to 469.1082, as amended. 1.02. The Authority and Anoka County Community Action Program, Inc. (the "Seller ") executed a Purchase Agreement, dated as of May 26, 2016 (the "Agreement"), providing for the conveyance by the Seller to the Authority of certain property within the Project and City legally described as follows: That part of Lot 23 lying north of the South 20 feet of the SD Lot 23 and Lot 24, Block 1, Sheffields 2 "d Subdivision, County of Anoka, State of Minnesota (the "Property"). 1.03. The parties have negotiated and propose to execute a First Amendment to the Agreement (the "First Amendment ") to extend the deadline for the conveyance of the Property. Section 2. First Amendment Approved. 2.01. The First Amendment as presented to the Board 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 First Amendment 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 First Amendment 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 staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. 485519vl MNI CL205 -62 Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 6th day of September, 2016. President ATTEST: Secretary 485519v I MNI CL205 -62 FIRST AMENDMENT TO PURCHASE AGREEMENT This First Amendment to Purchase Agreement ( "Amendment") is made this _ day of ' 2016 by and between Anoka County Community Action Program, Inc., a Minnesota nonprofit corporation (the "Seller") and the Columbia Heights Economic Development Authority, a Minnesota public body corporate and politic (the "Buyer "). WHEREAS, the Seller and the Buyer entered into that certain Purchase Agreement dated as of May 26, 2016 (the " Agreemenf) providing for the conveyance by the Seller to the Buyer of certain property at 4641/4643 Polk Street located in the City of Columbia Heights, Anoka County, Minnesota and legally described as follows: That part of Lot 23 lying north of the South 20 feet of the SD Lot 23 and Lot 24, Block 1, Sheffields 2nd Subdivision, County of Anoka, State of Minnesota (the "Property"); and WHEREAS, due to unanticipated delays, the parties have determined to extend the deadline for closing on the conveyance of the Property. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 1. Amendment to Paragraph 7 of the Agreement. Paragraph 7 of the Agreement is amended as follows: CLOSING DATE. The closing of the sale of the Property shall take place on or before October 31, 2016 unless otherwise mutually aeed by the parties. The closing shall take place at Columbia Heights City Hall, located at: 590 40,z Avenue NE in Columbia Heights, Minnesota or such other location as mutually agreed upon by the parties. 2. Miscellaneous. Except as amended by this Amendment, the Agreement shall remain in full force and effect. (Remainder of this page intentionally left blank.) 485517A MNICL205 -62 IN WITNESS WHEREOF, the parties have executed this First Amendment to Purchase Agreement as of the date written above. SELLER ANOKA COUNTY COMMUNITY ACTION PROGRAM, INC. By: Its: BUYER COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By: Its: President By: Its: Executive Director 485517vl MNI CL205 -62