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HomeMy WebLinkAbout20171204_EDA_Packet ECONOMIC DEVELOPMENT AUTHORITY AGENDA December 4, 2017 6:30 pm City Hall Conference Room 1 th 590 40 Avenue NE Columbia Heights, MN 55421 1.Call to Order 2.Roll Call 3.Pledge of Allegiance CONSENT AGENDA 4.Approve minutes of November 6, 2017 and November 27, 2017 5.Approve Financial Report and Payment of Bills for October, 2017 Resolution 2017-35 Motion: Move to approve Consent Agenda as presented. BUSINESS ITEMS 6.Single Family Home Program - Concept Application Approval of 4641 Tyler St. NE Motion: Move to accept the concept application submitted by Tollberg Homes for the property located at 4641 Tyler Street NE, Columbia Heights, MN 55421. Motion: Move to authorize staff to work with Tollberg Homes to determine specific house plans and to prepare a Purchase and Redevelopment Agreement for final sale consideration at the next EDA meeting on January 2, 2018. 7.Single Family Home Lot Sales Program - Final Sale Approval Consideration of 4201 Jefferson Street NE Resolution 2017-31 Motion: Move to waive the reading of Resolution 2017-31, there being ample copies available to the public. Motion: Move to adopt Resolution 2017-31, Resolution Approving the Purchase and Redevelopment Agreements with Home Detail, Inc. for the acquisition of 4201 Jefferson Street NE, Columbia Heights, MN 55421. January 2, 2018 The next regularly scheduled EDA meeting will be . 8.Single Family Home Lot Sales Program - Final Sale Approval Consideration of 4641 Polk Street NE Resolution 2017-32 Motion: Move to waive the reading of Resolution 2017-32, there being ample copies available to the public. Motion: Move to adopt Resolution 2017-32, Resolution Approving the Purchase and Redevelopment Agreements with Home Detail, Inc. for the acquisition of 4641 Polk Street NE, Columbia Heights, MN 55421. OTHER BUSINESS 9.Adjourn 1 ECONOMIC DEVELOPMENT AUTHORITY(EDA) MINUTES OFTHE MEETING OF NOVEMBER 6, 2017 Themeeting wascalled toorderat 6:30pmbyPresidentMarlaine Szurek. MembersPresent:Murzyn, Schmitt,Buesgens, Szurek, and Novitsky (arrived 6:40 pm) Members Absent:Herringerand Williams StaffPresent:Walt Fehst, KeithDahl,Joseph Hogeboom , and Shelley Hanson PLEDGE OFALLEGIANCE- RECITED CONSENTAGENDA 1. ApproveminutesofOctober 9,2017 2. Approve FinancialReport&PaymentofBillsfor September,2017Resolution2017-30 Questionsfrommembers: Schmitt questioned the income listed on page 24 of the report which indicated an internal transfer of $12,817 from another account. Buesgens questioned the amount of $7,985 listed on page 34 of the report. Dahl said he would look into these items and getback to the members with the details. Later, staff informed members that the amount of $12,817.82 was a reclassification of revenue funds from the sale of the old Library that was posted in January 2017. This was a YTD figure. The expenditure amount of $7,985.50 was for groundwater monitoring expenses in Huset Park and the review done by the MPCA to release the City from the responsibility of remediation. Motion bySchmitt,seconded byMurzyn,toapprove the MinutesofOctober 9,2017,andthe Financial Report andPayment of BillsforSeptember,2017aspresented.All ayes. MOTIONPASSED. RESOLUTIONNO.2017-30 AResolution of theEconomic Development Authorityof Columbia Heights, Minnesota,Approving the Financial Statements for Month ofSeptember2017and the Payment of the Bills for theMonth ofSeptember, 2017. WHEREAS, the Columbia Heights EconomicDevelopment Authority (EDA) is requiredby Minnesota StatutesSection 469.096, Subd. 9, to prepare a detailed financial statement whichshows all receipts and disbursements,their nature,the money on hand, the purposes towhich the money on hand is to be applied,the EDA's credits and assets andits outstanding liabilities; and 2 EDA Minutes Page 2 November 6, 2017 WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and ifcorrect,to approve them by resolutionand enter the resolution in its records; and WHEREAS, the financial statement forthemonthofSeptember2017has been reviewed by the EDA Commission; and WHEREAS, the EDA has examinedthe financialstatements andfinds them to be acceptable as to both formand 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 FinancialReports, Annual City approved Budgets, Audits and similar documentation; and WHEREAS, financials statements are helce Department in a method outlined by the Stateof ords Retention Schedule, NOW, THEREFOREBE IT RESOLVED by the Board ofCommissioners of the Columbia Heights Economic Development Authority that it has examined the referencedfinancial statements including the check history,andthey are found to be correct, as to form and content; and BEIT FURTHER RESOLVED the financial statements are acknowledged and received and the check historyas presented in writing is approved forpayment out of properfunds; and BEIT FURTHER RESOLVED this resolution is made a part of the permanent records of the Columbia Heights Economic Development Authority. ORDER OFECONOMIC DEVELOPMENT AUTHORITY Passed this __6th____ dayof___November_____________, 2017 Offered by:Schmitt Seconded by:Murzyn Roll Call:All ayes BUSINESS ITEMS 1.Single Family Home Program-Approve Concept Application for 4641 TylerSt NE Dahl told the Columbia Heights Economic Development Athat staff has received a concept application from Tollberg Homes, a licensed home builder in the State of Minnesota offering $22,500 for the within the Heritage Heights neighborhood. The Subject Property is part of the Single Family Home Lot Sales 3 EDA Minutes Page 3 November 6, 2017 City of Colum for every property within the Program are based upon the most recent Estimated Market Land Value assessed by Anoka County. However, the EDA has reserved the right to review and adjust lot prices periodically provided that sufficient evidence supports the price reduction of the lot. The Subject Property was assessed by Anoka County to have a 2018 estimated market land value of $38,600. However, after staff reached out to various local real estate agents, it was determine that the market value of the Subject Property still remains lower than the estimated market land value, but it has drastically increased since the construction of several new single family homes in the Heritage Heights Neighborhood. Therefore, staff estimates that the Subject Property would have a market value between $4.00 to $4.50 per square foot or approximately $29,620 to $33,320 based on the square footage of the lot. Earlier this year, the Public Works Department confirmed that there was a water main break at the Subject Property. This resulted in the sewer and water lines being disconnected at the main underneath the public right-of-way in the street. In order for a single-family home to be constructed on the Subject Property, sewer and water connection to the main will be required, and it will cost approximately $4,000. Thus, based on the market value of the Subject Property and the additional costs that will be incurred to connect sewer and water lines, staff estimates that a reasonable offer price for this particular property would be between $25,620 and $29,320. STAFF RECOMMENDATION: Staff recommends approval of the concept application submitted by TollbergHomes only if the offer price, at a minimum, is increased to $27,500. Questions from Members: Dahl told members this home would be similar to the one next door that was just finished by Tollberg at 4647 Tyler Street. how a front porch. Dahl said the action tonight is to approve the concept plan only. The final plan and approval of the sale would be considered at the next meeting. He told members they could deny the plan and ask for a new one or they could approve the concept and ask them to include a porch on the final plan they submit next month. Schmitt stated that she thought they had decided at the last meeting that they preferred other designs rather than the split entry depicted on this concept plan and thatthey wanted front porches added to any new proposals. Fehst said the EDA decided that the two specific properties that were discussed at the lastmeeting should be something other than a split entry design. He said it was not decided that split entries could never be built. He said some people still prefer that type of design and we need to consider what fits into the existing neighborhood. Dahl said the EDA has the right to deny the concept plan, but this style was chosen as it meets the other requirements established by the EDA. Buesgens said this style house is a good house for small lots and for families as it allows for four bedroom construction. Schmitt thought we should make a counter offer to the price and ask them to come back with two alternative plansfor the EDA to consider. Murzyn asked if they had an interested buyer for the home. Dahl said they did, friends of the people who just purchased the new home next door.Murzynsaid the potential buyer may have a preference for a split entry design and if it meets the rest of necessarily dictatea certain style. 4 EDA Minutes Page 4 November 6, 2017 Hogeboom agreed that we should see what the preference of the interested buyer is and that we should consider the topography of the site, since this lot is hilly and what will fit in with the rest of the neighborhood. Szurek stated that it would be nice Motion byBuesgens, seconded byMurzyn,totable the concept applicationassubmitted by Tollberg Homes for the property located at 4641 Tyler Street NE, Columbia Heights, MN 55421 and to counter-offeraprice of no less than $27,500.All ayes. MOTION PASSED. 2.Single Family Home Program-Approve House Plan for4201 Jefferson St NE On October 9, 2017, tapproved the concept application submitted by Home Detail, Inc. for the construction of a single family home on the property located at 4201 Jefferson At that time, the EDA authorized staff to work with Home Detail to determine specific house plans and to prepare a Purchased and Redevelopment Agreement for consideration at the next EDA meeting on November 6, 2017. Unfortunately, staff continues to work with Home Detail to develop specific house plans that conform to all proposal guidelines outlined in the Single Family Home Lot Sales Program (, specifically the section pertaining to building standards. Therefore, at the request of Home Detail, staff agreed to present the draft house plans to the EDA for review tonight, and delay the final sale consideration until which time specific house plans are finalized. Attached for review by commission members of the EDA are the draft house plans for the Subject Property, as well as the proposal guidelines of the Program itself. Based on the draft house plans submitted by Home Detailand pursuant to Subsection (f), (g) and (h), Section 5: Building Standards of the Proposal Guidelines, staff recommends that the garage should be rear-loaded, and a front porch extend the full width of the single-family home.An alternative would be to have a garage on the side of the nd home with a driveway off 42Avenue. Public Works would prefer either of these two options to the garage being off Jefferson as shown on the plans submitted. Questions from members: Jeff Magdik was present. To support his reason for submitting a plan with a front garage, he passed out a survey indicating the number of homes that have front drivewaysoff Jefferson and also those on Madison and Washington. He stated that a garage in the backyard would take up too much yard space and the topography makes this a difficult option on this lot. The buyers want to have a walkout basement that willbe finished off for additional bedrooms and they do not want a garage on the alley. He said if the EDA enforces a rear garage than his buyers will walk on this house. There was a discussion on the options the builder has, but the consensus was the EDAdoes not want a garage in the front. Novitsky back plans that will meet our requirements. It is not the job of the EDA to help him design something that may work. 5 EDA Minutes Page 5 November 6, 2017 Motion byNovitsky, seconded by Murzyn, to deny the design showing the garage on the front and to have the builder nd bring back plans with the garage located off 42Ave or in the rear beforea Purchase and Redevelopment Agreement will berecommendedat the next available EDA meeting on December 4, 2017. All ayes.MOTION PASSED. 3.Single Family Home Program-Approve House Plan for 4641 Polk St NE ved the concept application submitted by Home Detail, Inc. for the construction of a single family home on the property located at 4641 Polk Street determine specific house plans and to prepare a Purchased and Redevelopment Agreement for consideration at the next EDA meeting on November 6, 2017. Unfortunately, staff continues to work with Home Detail to develop specific house plans that conform to all proposal g pertaining to building standards. Therefore, at the request of Home Detail, staff agreed to present the draft house plans to the EDA for review tonight, and delay the final sale consideration until which time specific house plans are finalized. Attached for review by commission members of the EDA are the draft house plans for the Subject Property, as well as the proposal guidelines of the Program itself. Based on the draft house plans submitted by Home Detail; and pursuant to Subsection (g) and (h), Section 5: Building Standards of the Proposal Guidelines, staff recommends that a front porch should extend the full width of the single-family home. Questions from members: Magdik stated he has a buyer for this home also. He told members that all 3 levels would be finished. He said the original plan had a porch across the entire front of the house but it was downsized since the basement window in front wi Magdik defended his plan by saying thatthe guidelines were changed and that homes that have been built by Tollberg prior to that change have had smaller porch areas. Magdik was asked if the egress window could be relocated to the side of the house. He said he could possibly re- design it but the topography of the lot allows for a larger window if located in the front. Murzyn asked him if he tellshis potential buyers what our requirements are and that they may not get certain things they want approved. He said he does share the information with them and tries to come up with a design to accommodate allparties. Schmitt suggested he could increase the size of the front porch by removing the accent window on the left and toadd more porch area to the right also,and it would meet the minimum requirement. Motion by Buesgens, seconded byNovitsky, to authorize staff to continue working with Home Detail to determine specific house plans showing a change to increase the porch size to 11 foot minimum width for the front entry and to prepare a Purchase and Redevelopment Agreement for consideration at the next available EDA meeting on December 4, 2017. All ayes. MOTION PASSED. 6 EDA Minutes Page 6 November 6, 2017 4.Consideration of 3841 Central Avenue Relocation On September 5, 2017, the Columbia Height Economic Deuthorized staff to work with to determine the feasibility of relocating the residential structure of 3841 Central Avenue NE, Columbia Heights, MN 55421Residential Structureto the vacant lot owned by GMHC located at 3805 2nd Street NE, Columbia Heights, MN 55421 . As previously indicated by the City Building Official,when a structure is relocatedon to a different property, the -conformity be corrected to comply with the standards of the Building Code, specifically Fuel Gas Code, Mechanical Code, Plumbing Code, Energy Conservation Code, Residential Code, and Electrical Code.Therefore, on September 20, 2017, staff and representatives from GMHC inspected the Subject Property to determine the non-conformities present in the Residential Structure. After the initial walkthrough, the City Building Official prepared a detailed report explaining the applicable provisions of the Building Code that would be enforced if the Residential Structure is relocated to the Subject Property, and provided said report to the GMHC for them to prepare a Pro Forma. The following table breaks down the Pro Forma in order for the GMHC to relocate the Residential Structure onto the Subject Property. PROJECT EXPENSES COST I.Property Acquisition $ 1.00 II.House Relocation $ 30,000.00 III.Auxiliary Costs of Utility Work $ 40,000.00 IV.Demolition/Removal $ 16,000.00 V.House Rehab/Renovation $ 55,000.00 VI.Tree Removal $ 3,500.00 VII.New Foundation $ 50,000.00 VIII.Double Stall Garage/Driveway $ 25,000.00 IX.Landscaping/Flatwork $ 4,500.00 X.Sewer & Water $ 8,500.00 XI.Soft Costs (Plans, Testing, Survey, etc.) $ 4,500.00 XII.Closing Costs (Realtor Fee, Appraisal, Tax, etc.) $ 47,453.00 XIII.Holding Costs (Utilities, Insurance, Interest, etc.) $ 15,991.00 XIV.Contingency $ 7,000.00 TOTAL EXPENSES FUNDS: $307,445.00 PROJECTED RESALE PRICE: $250,000.00 GROSS PROFIT (LOSS): $(57,445.00) 7 EDA Minutes Page 7 November 6, 2017 Based on the table above, the GMHC projects a loss of profit in the amount of $57,445.00, and have therefore requested that on top of the EDA selling the Residential Structure to them for one dollar ($1.00), they would like the EDA to also consider providing gap funding in the amount of $60,000.00. STAFF RECOMMENDATION: Staff recommends offering the residential structure located at 3841 Central Avenue NE to the Greater Metropolitan Housing Corporation for one dollar ($1.00); however, staff does not recommend offering gap funding to the Greater Metropolitan Housing Corporation. Questions from members: Schmitt asked what we have spent on this so far. Dahl stated $200,000. She said she is not in favor of spending anymore. Schmitt then asked how much it would be to demo the property. Dahl said approximately $25,000. th them to move. He said another option would be to move it to 666 40Avewhich would cost less due to the closer proximity, or to sell that lot to someone interested in moving the house onto it. Motion bySchmitt, seconded by Murzyn, to offer the residential structure located at 3841 Central Avenue NE to the Greater Metropolitan Housing Corporation for one dollar ($1.00), and if accepted, authorize staff to prepare a Bill of Sale, Wavier of Trespass, and Wavier of Liability for consideration at the next EDA meeting on December 4, 2017. All ayes. MOTION PASSED. OTHER BUSINESS No other new business. Themeeting wasadjourned at 7:50 pm. Respectfullysubmitted, Shelley Hanson Secretary 8 ECONOMIC DEVELOPMENT AUTHORITY(EDA) MINUTES OFTHE SPECIAL MEETING OF NOVEMBER 27, 2017 Themeeting wascalled toorderat 6:30pmbyPresidentMarlaine Szurek. MembersPresent:Murzyn, Schmitt,Buesgens, Szurek,Herringer, Williams, and Novitsky StaffPresent:Walt Fehst, KeithDahl, and Shelley Hanson Also present:Owen Metz from Columbia Heights Leased Housing Assoc. III LLC and Martha Ingram-Legal Counsel from Kennedy & Graven PLEDGE OFALLEGIANCE- RECITED BUSINESS ITEMS 1.Approval Consideration of First Amendment to the Contract for Private Redevelopment-Resolution 2017-33 Dahl explained that onJuly 10, 2017, as theCityapproved the establishment of the 47th TIF district. Therefore, pursuant to StateStatute, Sections 469.174 to 469.1794 the EDA was authorized to undertake and provide TIF assistance to facilitate redevelopment within the 47thand Grand TIF district. On August 7, 2017, the EDA approved Resolution 2017-23, a resolution which approved aContract for Private Redevelopment by and between theColumbia Heights Leased Housing Associates III, LLLP and awarded the sale of, and providedthe form, terms, covenants and directions for the issuance of its TIF revenue note $1,482,000 projected over 12 years.This amount of TIF Assistance was originally found to be necessary for the proposed development of a 173unit multi-family, workface housing project thand Grand Avenue NE. However, since the original approval of the TIF Assistance for theProposed Development, the Developer has reduced the amount of units in the Proposed Development from 173units to 148 units. Therefore, because the unit reduction constitutes a substance alteration of the Contract for Private Redevelopment, the EDA has the legal right to reevaluate the amount of TIF Assistance provided to the Developer for the Proposed Development. And, based on analyses conducted by Ehlers, TIF Assistance in the amount of $1,170,000 over 12 years would be substantially sufficient for the Proposed Development to become financially feasible. Attached for consideration is the proposed First Amendment to the Contract for Private Redevelopment in which TIF Assistance for the Proposed Development has been reduced. Again, this agreement constitutes a financial obligation of the EDA to reimburse the Developer for a portion of qualified costs related to land acquisition, soil correction, site preparation, and public improvementsfor the Proposed Development. Staff recommends approval of Resolution 2017-33 as presented. 9 EDA Special Meeting Page 2 Nov 27, 2017 Questions from members: Williams questioned whether this would reduce the amount we receive through the TIF process. Ingram said this contract has nothing to do with the bonds or revenue specifics received by the City. That issue will go to the City Council later tonight. Motion byWilliams, seconded by Schmitt,to waive the reading of Resolution 2017-33, there being ample copies available to the public. All ayes. MOTION PASSED. Motion byWilliams, seconded bySchmitt,to adopt Resolution 2017-33, a resolution approving a First Amendment to the Contract for Private Redevelopment between the Columbia Heights Economic Development Authority and Columbia Heights Leased Housing Associates III, LLLP.All ayes. MOTION PASSED. EDARESOLUTION NO. 2017-33 RESOLUTION APPROVING A FIRST AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND COLUMBIA HEIGHTS LEASED HOUSING ASSOCIATES III, LLLP BE IT RESOLVED BY the Board of Commissioners () of the Columbia Heights Economic Development Authority(the ) as follows: Section 1.Recitals. 1.01.Pursuant to their authority under Minnesota Statutes, Sections 469.090 to 469.1082 and 469.174 to 469.1794, th as amended, the Authority and the City of Columbia Heand Grand Tax Increment redevelopment of certain substandard property within the Project. 1.02.the Authority andColumbia Heights Leased Housing Associates III, LLLP(the Redeveloperentered into that certain Contract for Private Redevelopment dated as of August7, 2017 the Contract 1.03.Based on a decreasein size and number of units of the Minimum Improvements, the parties have negotiated and Improvementsand to provide revised terms of the Note and revised Minimum Market Values of the Minimum Improvements resulting from said decrease in scope. Section 2.FirstAmendmentApproved. 2.01.The FirstAmendment as presented to the Boardis hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the Presidentand Executive Director, provided that execution of the First Amendmentby such officials shall be conclusive evidence of approval. 10 EDA Special Meeting Page 3 Nov 27, 2017 2.02.The PresidentandExecutive Directorare hereby authorized to execute on behalf of the Authoritythe First Amendment and any documents referenced therein requiring execution by the Authority,including without limitation the Assessment Agreement, and to carry out, on behalf of the Authority, its obligations thereunder. 2.03.Authoritystaff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. th Adopted by the Board of Commissioners ofthe Columbia Heights Economic Development Authority this27day of November, 2017. ___________________________________________ President ATTEST: ______________________________ Secretary SEE APPENDIX A-ASSESSMENT AGREEMENT-AT END OF MINUTES 2.Approval Consideration of Collateral Assignment of Tax Increment Financing Revenue Note- Resolution 2017-34 Dahl told members that t theColumbia Heights Leased Housing Associates III, LLLP CitiBank, N.A. in connection to the Grand Central Flats Project located on the corner of 47thand Grand Avenue NE. Dominium and the Lender have agreed to enter intoaConstruction Loan Agreement tofinance part of the acquisition and construction costs related to theGrand Central Flats Project. The Lender has requested that Dominium provide collateral for the Construction Loan Agreement. Therefore, Dominium has offered the TIF Note as collateral for the Construction Loan Agreement. However, in order for the Lenderto accept the TIF Note as collateral, the EDA is required to approve the Collateral Assignment and agree to certain other matters fully contained within the attached Collateral Assignment of Interest in Payments under Tax Increment Revenue Note pursuant to the Contract for Private Redevelopment by Please note: The Collateral Assignment of the TIF Note is merely an assurance to the Lenderthat if Dominium defaults on the Construction Loan Agreement, the Lender would legally be able to collect the rents and the tax increment payments under the TIF Note. Furthermore, in the event that Dominium would default on the Construction Loan Agreement, the EDA would not be obligated to pay the Lender more than what is collected through tax increment. Staff recommends approval of Resolution 2017-34 as presented. 11 EDA Special Meeting Page 4 Nov 27, 2017 Questions from members: Schmitt questioned how those payments would be made. Ingram told members that if Dominium defaults on the loan during construction then the bank would be entitled to receive the payments directly. Motion byBuesgens, seconded byWilliams,to waive the reading of Resolution 2017-34, there being ample copies available to the public. All ayes. MOTION PASSED. Motion byBuesgens, seconded byNovitsky,to adopt Resolution 2017-34, a resolution approving a Collateral Assignment of interest in payments under Tax Increment Revenue Note, between Columbia Heights Leased Housing Associates III, LLLP and CitiBank, N.A. All ayes. MOTION PASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2017-34 RESOLUTION APPROVING A COLLATERAL ASSIGNMENT OF INTEREST IN PAYMENTS UNDER TAX INCREMENT REVENUE NOTE, BETWEEN COLUMBIA HEIGHTS LEASED HOUSING ASSOCIATES III, LLLP AND CITIBANK, N.A. BE IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01.Pursuant to their authority under Minnesota Statutes, Sections 469.090 to 469.1081and 469.174 to 469.1794, as th ished the 47and Grand Tax Increment Financing certain substandard property within the Project. 1.02. the Authority andColumbia Heights Leased Housing Associates III, LLLP(the Redeveloperentered into that certain Contract for Private Redevelopment dated as of August7, 2017, as amended things, for the construction by the Redeveloper described within the Contract 1.03.Pursuant to the terms of the Contract, the Authority will issue its Tax Increment Revenue Note, Series 2017 (the imum Improvements, which will include execution by the Redeveloper of certain loan documents with Citibank, N.A. as lender (the 1.04.The Redeveloper has requested that the Authority consent to the terms of a collateral assignment of payments under the TIF Note to the Lender, as memorialized in a Collateral Assignment of Interest in Payments under Tax Increment Reve 1.05.Pursuant to the Contract, the Redeveloper must seek approval from the Authority prior to making any assignment of the Contract or Note. 12 EDA Special Meeting Page 5 November 27, 2017 1.06.The Board has reviewed the Assignment and finds that the approval and execution are in the best interest of the City and its residents. Section 2. Authority Approval; Other Proceedings. 2.01.The Assignment, including the consent of the Authority related thereto, as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transactionand that are approved by the President and Executive Director, provided that execution of the consent to the Assignment 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 consent attached to the Assignment and anyother documents requiring execution by the Authority in order to carry outthe transaction described in the Assignment. 2.03.Authority staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. th Adopted by the Board of Commissioners of the Columbia Heights Economic Development Authority this27day of November, 2017. OTHER BUSINESS Dahl informed members that water piping had frozen and broke at the property located at 3841 Central Ave which resulted in about 3-4 inches of water in the lower level with damage done on the upper two levels as well. Staff said at this point it is probably easier to auction off what can be salvaged from the home and then have it demolished than to try and move the structure to another location. Members tended to agree. Szurek asked about any further updates regarding the HyVeeconstruction timeline. Dahl said they have to start construction by June 2018 according to the Site Plan and TIF approvals. He noted that the Meineke lease is up at the end of December and that it will not be renewed at the 4300 Central Ave site. Herringer said the developer who th owned the north parcelof the 47and Central Ave site has sold that pieceto HyVee so that they now own both of the parcels at the corner. Themeeting wasadjourned at6:50pm. Respectfullysubmitted, Shelley Hanson Secretary 13 APPENDIX A ______________________________________________________________________________ ASSESSMENT AGREEMENT and By and Between COLUMBIA HEIGHTSECONOMIC DEVELOPMENT AUTHORITY and COLUMBIA HEIGHTS LEASED HOUSING ASSOCIATES III, LLLP This Document was drafted by: KENNEDY & GRAVEN, Chartered 470 U.S. Bank Plaza Minneapolis, Minnesota 55402 14 ASSESSMENT AGREEMENT THIS AGREEMENT, made on or as of the ___________, 2017by and between the Columbia HeightsEconomic Columbia Heights Leased Housing Associates III, LLLP, a Minnesotalimited liability limited partnership WITNESSETH, that WHEREAS, on or before the date hereof the Authority and Redeveloper have entered into a Contract for Private Redevelopment dated August 7, 2017, as amended by a First Amendment thereto dated as of November 6, 2017(as so amended, the Cityof Columbia HeightsExhibit A hereto; and WHEREAS, pursuant to the Redevelopment Contract the Redeveloper is obligated to construct certain improvements WHEREAS, the Authority and Redeveloper desire to establish a minimum market value for the Property and the Minimum Improvements to be constructed thereon, pursuant to MinnesotaStatutes, Section 469.177, Subdivision 8; and WHEREAS, the Authority and the Anoka CountyAssessor specifications for the improvements and have inspected such improvements; NOW, THEREFORE, the parties to this Agreement, in consideration of the promises, covenants and agreements made by each to the other, do hereby agree as follows: 1.The minimum market value which shall be assessed for ad valorem tax purposes for the Property described in Exhibit A, together with the Minimum Improvements constructed thereon, shall be $11,544,000as of January 2, 2019, and $17,760,000 as of January 2, 2020notwithstanding the progress of construction by such date, and as of each January 2 thereafter until termination of this Agreement under Section 2 hereof. 2.The minimum market value herein established shallbe of no further force and effect and this Agreement shall terminate on the Termination Date, as defined in the Redevelopment Contract. The event referred to in Section 2 of this Agreement shall be evidenced by a certificate or affidavit executed by the Authority. 3.This Agreement shall be promptly recorded by the Authority. The Redeveloper shall pay all costs of recording. 4.Neither the preambles nor provisions of this Agreement are intended to, nor shall they be construed as, modifying the termsof the Redevelopment Contract between the Authority and the Redeveloper. 5.This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. 6.Each of the parties has authority to enter into this Agreement and to take all actions required of it, and has taken all actions necessary to authorize the execution and delivery of this Agreement. 7.In the event any provision of this Agreement shall be held invalid and unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 8.The parties hereto agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, suchsupplements, amendments and modifications hereto, and such further instruments as may reasonably be required for correcting any inadequate, or incorrect, or amended description of the Property or the Minimum Improvements or for carrying out the expressedintention of this Agreement, including, without limitation, any further instruments required to delete from the description of the Property such part or parts as may be included within a separate assessment agreement. 15 9.Except as provided in Section 8 of this Agreement, this Agreement may not be amended nor any of its terms modified except by a writing authorized and executed by all parties hereto. 10.This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 11.This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. COLUMBIA HEIGHTSECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA) ) SS. COUNTY OF ANOKA) The foregoing instrument was acknowledged before me this ____ day of ________, 2017by Marlaine Szurekand Walter R. Fehst, the President and Executive Director of the Columbia HeightsEconomic Development Authority, on behalf of the Authority. Notary Public 16 COLUMBIA HEIGHTS LEASED HOUSING ASSOCIATES III, LLLP, a Minnesota Limited Liability Limited Partnership By: Columbia Heights Leased Housing Associates III, LLC Its General Partner By ________________________________________ Owen Metz Its Authorized Representative STATE OF MINNESOTA) ) SS. COUNTY OF __________) The foregoing instrument was acknowledged before me this _____ day of _____________, 2017 by Owen Metz, the Authorized Representative of Columbia Heights Leased Housing Associates III, LLC, a Minnesota limited liability company, the General Partner of Columbia Heights Leased Housing Associates III, LLLP, a Minnesota limited liability limited partnership, on behalf of the partnership. Notary Public 17 CERTIFICATION BY COUNTYASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the market value assigned to the land upon which the improvements are to be constructed, hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the above described property, hereby certifies that the values assigned to the land and improvements are reasonable. Anoka CountyAssessor STATE OF MINNESOTA) ) ss COUNTY OF ANOKA) The foregoing instrument was acknowledged before me this ___ day of ____________, 2017,by _____________________, the Assessor of Anoka County. Notary Public 18 EXHIBIT A of ASSESSMENT AGREEMENT Legal Description of Property Lots 1 and 2, Block 1, Grand CentralLofts, Anoka County, Minnesota And Outlot A, GrandCentral Lofts, according to the recorded plat thereof, Anoka County, Minnesota. 19 RESOLUTION NO. 2017-35 A Resolution of the Economic Development Authority of Columbia Heights, Minnesota, Approving the Financial Statements for Month of October 2017 and the Payment of the Bills for the Month of October 2017. 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 October 2017 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, 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. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this _________ day of ______________________, 2017 Offered by: Seconded by: Roll Call: President Attest: Secretary 20 Resolution 2017-35 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 AGENDA SECTION BUSINESS ITEMS ITEM NO. 6 MEETING DATE DECEMBER 4, 2017 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ITEM:Single Family Home Program Concept Application Approval of 4641 Tyler Street NE DEPARTMENT: Community Development BY/DATE: Keith M. Dahl, November 29, 2017 BY/DATE: BACKGROUND: On November 6, 2017, the Columbia Heights Economic Development Atabled the consideration of a concept application submitted by Tollberg Homes for the construction of a single family home located at 4641 Tyler Street NE, Columbia Heights, MN because the offer price of $22,500 was unacceptable to EDA Commission Members. Furthermore, the EDA directed staff to counter the original offer made by Tollberg Homes for a price no less than $27,500. Tollberg Homes has agreed to increase the offer price for the Subject Property to $27,500, and has therefore resubmitted a concept application to the EDA for further consideration at the regular scheduled meeting on December 4, 2017. Please find attached a complete concept application. STAFF RECOMMENDATION: Staff recommends approval of the concept application submitted by Tollberg Homes. RECOMMENDED MOTION(S): Motion: Move to accept the concept application submitted by Tollberg Homes for the property located at 4641 Tyler Street NE, Columbia Heights, MN 55421. Motion: Move to authorize staff to work with Tollberg Homes to determine specific house plans and to prepare a Purchase and Redevelopment Agreement for consideration at the next EDA meeting on January 2, 2018. ATTACHMENTS: 1.Concept Application Proposal (10 Pages) 71 City of Columbia Heights EDA Letter 72 73 74 75 76 77 78 79 80 81 AGENDA SECTION PUBLIC HEARING ITEM NO. 7 MEETING DATE DECEMBER 4, 2017 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ITEM:Single Family Home Program Final Sale Approval of 4201 Jefferson Street NE DEPARTMENT: Community Development BY/DATE: Keith M. Dahl, November 29, 2017 BY/DATE: BACKGROUND: On October 9, 2017, tapproved the concept application submitted by Home Detail, Inc. for the construction of a single family home on the property located at 4201 Jefferson was acquired with the intent to be incorporated into established in 2015 to stabilize and increase property values throughout the City of Columbia Heights (the . Lot prices for every property within the Program are based upon the most recent Estimated Market Land Value assessed by Anoka County. However, the EDA has reserved the right to review and adjust lot prices periodically provided that sufficient evidence supports the price reduction of the lot. The Subject Property was assessed by Anoka County to have a 2018 estimated market land value of $50,000. However, after staff reached out to various local real estate agents, it was determine that the market value of the Subject Property is lower than the estimated market land value, but higher than the market value found throughout the Heritage Heights Neighborhood. Thus, staff estimated that the Subject Property had a market value between $6.50 to $7.00 per square foot or approximately $33,540 to $36,120 based on the square footage of the lot. Property for. Attached for review by EDA commission members is the Purchase and Redevelopment Agreement for the sale of the Subject Property, specifically the house plan for the Subject Property. The specific house plan may be found in the Purchase and Redevelopment Agreement attached hereto in Exhibit B. It should also be mentioned that staff has received the earnest money in the amount of $2,000. If the EDA approves the final sale tonight, the earnest money will become non-refundable and staff will obtain the necessary signatures at the EDA meeting to fully execute the Purchase and Redevelopment Agreement. If the EDA denies the final sale approval, staff will reimburse the earnest money to Home Detail. A representative from Home Detail will be present at the EDA meeting to discuss their proposal, as well as answer any questions commission members may have regarding their proposal. STAFF RECOMMENDATION: Staff recommends final sale approval of 4201 Jefferson Street NE as presented. RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2017-31, there being ample copies available to the public. [OVER] 82 Cityof Columbia Heights EDA Letter City of Columbia Heights - Council Letter Page 2 Motion: Move to adopt Resolution 2017-31, Resolution Approving the Purchase and Redevelopment Agreement with Home Detail, Inc. for the acquisition of 4201 Jefferson Street NE, Columbia Heights, MN 55421. ATTACHMENTS: 1.Resolution 2017-31 (3 Pages) 2.Purchase and Redevelopment Agreement (22 Pages) 3.Certificate of Survey (1 Page) 83 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2017-31 RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT AGREEMENT WITH HOME DETAIL,INC.4201 JEFFERSON STREET NE 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 Sale 1.02.TheAuthority has received an offer from Home Detail, Inc. purchase certain propertylocated at 4201 Jefferson Street NE in the City of Columbia Heights included in the Program,described as attached hereto as Exhibit A(the , and the parties have negotiated aPurchase and Redevelopment Agreement(the sfor the conveyance of the Property to the Buyer and the construction by the Buyer of a single-family homeon the Property, all pursuant to the Guidelines. 1.03.Onthe date hereof, the Authority conducted a duly noticed public hearing regarding the conveyance of the Propertypursuant to the Program, at which all interested parties were given an opportunity to be heard. 1.04.The Board has reviewed the Agreementand finds that the execution thereof and performance of the Authority's obligations thereunder, including the conveyance of the Property to the Buyer,areconsistent with the Guidelines andin the best interest of the City and its residents, Section 2.Approval and Authorization of Agreement and Conveyance 2.01.TheAgreement 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 Agreementby such officials shall be conclusive evidence of approval. 2.02.Authority staff and officials are authorized to take all actions necessary to perform s obligations under theAgreementas 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 deedsor other documents necessary to convey theProperty to the Buyer, all as described in the Agreement. Section 3.Effective Date. This resolution shall be effective upon approval. 509802v1 MNI CL205-69 84 Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 4thday of December, 2017. President ATTEST: Secretary 509802v1 MNI CL205-69 85 EXHIBIT A Property Lot 16, Block 32, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota. 509802v1 MNI CL205-69 86 PURCHASE AND REDEVELOPMENT AGREEMENT 4201 Jefferson Street NE, Columbia Heights, Minnesota 1. Parties. This Purchase and Redevelopment Agreement is made as of December 4, 2017, between the COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic under the laws of Minnesota having its office located at TH 590 40 Avenue NE, Columbia Heights, MN (the “Seller”), and Home Detail, Inc., a th 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 16, Block 32, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota. Check here if part or all of the land is Registered (Torrens) 3. Acceptance Deadline. This offer to purchase, unless accepted sooner, shall be null and void at 4:30 p.m. on December 5, 2017, and in such event all earnest money shall be refunded to Buyer. 4. Price and Terms. The price for the Property is $35,000 (“Purchase Price”) which Buyer shall pay as follows: nonrefundable 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 (60 days from date of this Agreement) later than February 4, 2018. 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. 6. 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, subject to the 1 509394v2 CL205-69 87 conditions subsequent required by Sections 15, 16, and 17 of this Agreement (the “Deed”). 7. Real Estate Taxes and Special Assessments. A. Seller shall pay, at or before closing all real estate taxes due and payable in 2017 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: 1. 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 3. Declare this agreement null and void by notice to Seller, and earnest money shall be refunded to Buyer. 8. 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 filing 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 line, and that city water is available in the right of way adjacent to the Property. Seller makes no warranty regarding the conditions of any existing water stub from the main to the Property line. Seller advises Buyer to inspect the condition of the water stub. 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 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 2 509394v2 CL205-69 88 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 following options, as permitted by law: A. Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation; B. Seek specific performance within six months after such right of action arises, including costs and reasonable attorney's fees, as permitted by law. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted by law: C. Seek damages from Seller including costs and reasonable attorney's fees; D. Seek specific performance within six months after such right of action arises. 13. Well Disclosure. Seller’s knowledge of wells is as follows: 3 509394v2 CL205-69 89 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 a 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 December 4, 2017, attached hereto as Exhibit B. C. Construction of the Minimum Improvements must be substantially completed no later than one year from 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 furnish 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 instruments pertaining to the Property. If the Seller shall refuse or fail to provide any certification in accordance with the provisions of this Section, the Seller shall, within thirty (30) days after written request by the Buyer, provide the Buyer with a written statement, indicating in adequate detail in what 4 509394v2 CL205-69 90 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 fulfill the obligations undertaken in this Agreement by the Buyer as to the portion of the Property to be transferred; and (ii) Any proposed transferee, by instrument in writing satisfactory to the Seller and in form recordable in the public land records of Anoka County, Minnesota, shall, for itself and its successors and assigns, and expressly for the benefit of the Seller, have expressly assumed all of the obligations of the Buyer under this Agreement as to the portion of the Property to be transferred and agreed to be subject to all the conditions and restrictions to which the Buyer is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the Seller) deprive the Seller of any rights or remedies or controls with respect to the Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent 5 509394v2 CL205-69 91 specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit the Seller of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Property that the Seller would have had, had there been no such transfer or change. In the absence of specific written agreement by the Seller to the contrary, no such transfer or approval by the Seller thereof shall be deemed to relieve the Buyer, or any other party bound in any way by this Agreement or otherwise with respect to the Property, from any of its obligations with respect thereto. (iii) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Property governed by this subsection E. shall be in a form reasonably satisfactory to the Seller. (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. F. 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 The covenants in this paragraph run with the accordance with this Agreement). 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 6 509394v2 CL205-69 92 Improvements, the Buyer, subject to Unavoidable Delays (as hereafter defined), fails to carry out its obligations with respect to the construction of the Minimum Improvements (including the nature and the date for the completion thereof), or abandons or substantially suspends construction work, and any such failure, abandonment, or suspension shall not be cured, ended, or remedied within thirty (30) days after written demand from the Seller to the Buyer to do so, then the Seller shall have the right to re-enter and take possession of the Property and to terminate (and revest in the Seller) the estate conveyed by the Deed to the Buyer, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to the Buyer shall be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of any default on the part of the Buyer and failure on the part of the Buyer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, the Seller at its option may declare a termination in favor of the Seller of the title, and of all the rights and interests in and to the Property conveyed to the Buyer, and that such title and all rights and interests of the Buyer, and any assigns or successors in interest to and in the Property, shall revert to the Seller, but only if the events stated in this Section have not been cured within the time periods provided above. Notwithstanding anything to the contrary contained in this Section, the Seller shall have no right to reenter or retake title to and possession of a portion of the Property for which a Certificate of Completion has been issued. For the purposes of this Agreement, the term “Unavoidable Delays” means delays beyond the reasonable control of the Buyer as a result thereof which are the direct result of strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the Seller in exercising its rights under this Agreement) which directly results in delays. Unavoidable Delays shall not include delays in the Buyer’s obtaining of permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such construction is required under this section of this Agreement. 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) First, to reimburse the Seller for all costs and expenses incurred by the Seller, including but not limited to proportionate salaries of personnel, in connection with the recapture, management, and resale of the Property or part thereof (but less any income derived by the Seller from the Property or part thereof in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property or part thereof (or, in the event the Property is exempt from taxation or assessment or such charge during the period of 7 509394v2 CL205-69 93 ownership thereof by the Seller, an amount, if paid, equal to such taxes, assessments, or charges (as determined by the Seller assessing official) as would have been payable if the Property were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property or part thereof at the time of revesting of title thereto in the Seller or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Buyer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Minimum Improvements or any part thereof on the Property or part thereof; and any amounts otherwise owing the Seller by the Buyer and its successor or transferee; and (b) Second, to reimburse the Buyer for the balance of the purchase price remaining after the reimbursements specified in paragraph (a) above. Such reimbursement shall be paid to the Buyer upon delivery of an executed, recordable warranty deed to the Property by the Buyer to the Seller. 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 mailed 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 filed of record with the Anoka County Registrar of Titles or Office of Recorder, as the case may be. Buyer shall pay all recording costs. 8 509394v2 CL205-69 94 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 for purchase of the Property arising 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 By: _____________________________ By: ________________________________ Its President Its Executive Director STATE OF MINNESOTA } ss. COUNTY OF ANOKA The foregoing was acknowledged before me this ______ day of December, 2017, by Marlaine Szurek and Walter Fehst, the President and Executive Director of Columbia Heights Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic. _________________________________ Notary Public 9 509394v2 CL205-69 95 BUYER: HOME DETAIL, INC. By: _______________________________ STATE OF MINNESOTA } ss. COUNTY OF ANOKA The foregoing was acknowledged before me this ______ day of December, 2017, by ___________________, the ______________________ of Home Detail, Inc., a Minnesota corporation, on behalf of the corporation. _________________________________ Notary Public This document drafted by: Kennedy & Graven, Chartered 470 U.S. Bank Plaza th 200 South 6 Street Minneapolis, MN 55402 10 509394v2 CL205-69 96 EXHIBIT A to PURCHASE AND REDEVELOPMENT AGREEMENT FORM OF QUIT CLAIM DEED Deed Tax Due: $_______ ECRV: ___________________ THIS INDENTURE, between the Columbia Heights Economic Development Authority, a Minnesota, a public body corporate and politic (the “Grantor”), and Home Detail, Inc., a Minnesota corporation (the “Grantee”). WITNESSETH, that Grantor, in consideration of the sum of $35,000 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__, identified as “Purchase and Redevelopment Agreement” (hereafter referred to as the “Agreement”) and that the Grantee shall not convey this Property, or any part thereof, except as permitted by the Agreement until a certificate of completion releasing the Grantee from certain obligations of said Agreement as to this Property or such part thereof then to be conveyed, has been placed of record. This provision, however, shall in no way prevent the Grantee from mortgaging this Property in order to obtain funds for the purchase of the Property hereby conveyed or for erecting the Minimum Improvements thereon (as defined in the Agreement) in conformity with the Agreement, any applicable development program and applicable provisions of the zoning ordinance of the City of Columbia Heights, Minnesota, or for the refinancing of the same. It is specifically agreed that the Grantee shall promptly begin and diligently prosecute to completion the redevelopment of the Property through the construction of the Minimum Improvements thereon, as provided in the Agreement. 509394v2 CL205-69 97 Promptly after completion of the Minimum Improvements in accordance with the provisions of the Agreement, the Grantor will furnish the Grantee with an appropriate instrument so certifying. Such certification by the Grantor shall be (and it shall be so provided in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants of the Agreement and of this Deed with respect to the obligation of the Grantee, and its successors and assigns, to construct the Minimum Improvements and the dates for the beginning and completion thereof. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Grantee to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance the purchase of the Property hereby conveyed or the Minimum Improvements, or any part thereof. All certifications provided for herein shall be in such form as will enable them to be recorded with the County Recorder, or Registrar of Titles, Anoka County, Minnesota. If the Grantor shall refuse or fail to provide any such certification in accordance with the provisions of the Agreement and this Deed, the Grantor shall, within thirty (30) days after written request by the Grantee, provide the Grantee with a written statement indicating in adequate detail in what respects the Grantee has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Grantor, for the Grantee to take or perform in order to obtain such certification. SECTION 2. The Grantee’s rights and interest in the Property are subject to the terms and conditions of Sections 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 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 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. 509394v2 CL205-69 98 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, this ______ day of ____________, 20___. The Seller certifies that the Seller COLUMBIA HEIGHTS ECONOMIC does not know of any wells on the DEVELOPMENT AUTHORITY described real property. A well disclosure certificate By ____ accompanies this document or has been electronically filed. (If Its President electronically filed, insert WDC number: __________________). By I am familiar with the property described in this instrument and I Its Executive Director certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. 509394v2 CL205-69 99 STATE OF MINNESOTA ) ) ss COUNTY OF ANOKA ) On this ____ day of , 20___, before me, a notary public within and for __________ County, personally appearedand 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. Notary Public This instrument was drafted by: Tax Statements should be sent to: Kennedy & Graven, Charted________________________________ 470 U.S. Bank Plaza ________________________________ 200 South Sixth Street ________________________________ Minneapolis, MN 55402 (612) 337-9300 509394v2 CL205-69 100 EXHIBIT B TO PURCHASE AND REDEVELOPMENT AGREEMENT APPROVED PROPOSAL 509394v2 CL205-69 101 509394v2 CL205-69 102 103 104 105 EXHIBIT C TO PURCHASE AND REDEVELOPMENT AGREEMENT FORM OF CERTIFICATE OF COMPLETION 509394v2 CL205-69 106 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 Home Detail, Inc., a Minnesota corporation (the "Grantee"), by a Deed recorded in the Office of the County Recorder [and in the Office of the Registrar of Titles] in and for the County of Anoka and State of Minnesota, as Document Numbers _______________ and _____________, respectively; and WHEREAS, said Deed contained certain covenants and restrictions set forth in Sections 1 and 2 of said Deed; and WHEREAS, said Grantee has performed said covenants and conditions insofar as it is able in a manner deemed sufficient by the Grantor to permit the execution and recording of this certification; NOW, THEREFORE, this is to certify that all building construction and other physical improvements specified to be done and made by the Grantee have been completed and the above covenants and conditions in said Deed and the agreements and covenants in 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 Anoka and State of Minnesota are hereby authorized to accept for recording and to record, the filing of this instrument, to be a conclusive determination of the satisfactory termination of the covenants and conditions of Section 15B of the Agreement and the covenants and restrictions set forth in provided that the covenants set forth in Sections 15F of the Sections 1 and 2 of said Deed; 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 509394v2 CL205-69 107 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 509394v2 CL205-69 108 109 AGENDA SECTION PUBLIC HEARING ITEM NO. 8 MEETING DATE DECEMBER 4, 2017 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ITEM:Single Family Home Program Final Sale Approval 4641 Polk Street NE DEPARTMENT: Community Development BY/DATE: Keith M. Dahl, November 29, 2017 BY/DATE: BACKGROUND: On October 9, 2017, the Columbia Heights Economic Development Authority (EDA) approved the concept application submitted by Home Detail, Inc. for the construction of a single family home on the property located at 4641 Polk within the Heritage Heights Neighborhood. The Subject Property is part of the Single Family Home Lot Sales Program , which was established in 2015 to stabilize and increase property values throughout the City of Columbia Heights (the Lot prices for every property within the Program are based upon the most recent Estimated Market Land Value assessed by Anoka County. However, the EDA has reserved the right to review and adjust lot prices periodically provided that sufficient evidence supports the price reduction of the lot. The Subject Property was assessed by Anoka County to have a 2018 estimated market land value of $56,300. However, after staff reached out to various local real estate agents, it was determine that the market value of the Subject Property still remains lower than the estimated market land value, but it has drastically increased since the construction of several new single family homes in the Heritage Heights Neighborhood. Therefore, staff estimates that the Subject Property would have a market value between $4.00 to $4.50 per square foot or approximately $29,620 to $33,320 based on the square footage of the lot. Home Det above what the EDA could expect to sell the Subject Property for. Attached for review by EDA commission members is the Purchase and Redevelopment Agreement for the sale of the Subject Property, specifically the house plan for the Subject Property. The specific house plan may be found in the Purchase and Redevelopment Agreement attached hereto in Exhibit B. Also, it should be noted that staff received the earnest money in the amount of $2,000 and a partially executed Purchase and Redevelopment Agreement. If the EDA approves the final sale tonight, the earnest money will become non-refundable and staff will obtain the necessary signatures at the EDA meeting to fully execute the Purchase and Redevelopment Agreement. If the EDA denies the final sale approval, staff will reimburse the earnest money to Home Detail. A representative from Home Detail will be present at the EDA meeting to discuss their proposal, as well as answer any questions commission members may have regarding their proposal. STAFF RECOMMENDATION: Staff recommends final sale approval of 4641 Polk Street NE as presented. [OVER] 110 City of Columbia Heights EDA Letter City of Columbia Heights - Council Letter Page 2 RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2017-32, there being ample copies available to the public. Motion: Move to adopt Resolution 2017-32, Resolution Approving the Purchase and Redevelopment Agreement with Home Detail, Inc. for the acquisition of 4641 Polk Street NE, Columbia Heights, MN 55421. ATTACHMENTS: 1.Resolution 2017-32 (3 Pages) 2.Purchase and Redevelopment Agreement (26 Pages) 111 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2017-32 RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT AGREEMENT WITH HOME DETAIL,INC.4641 POLK STREET NE 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 Prog 1.02.The purchase certain property located at 4641 Polk Street NE in the City of Columbia Heights (the which provides for the conveyance of the Propertyto the Buyer and the construction by the Buyer of a single-family home on the Property, all pursuant to the Guidelines. 1.03.On the date hereof, 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. 1.04.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.TheAgreement 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 Agreementby such officials shall be conclusive evidence of approval. 2.02.Authority staff and officials are authorized to take all actions necessary to perform nder theAgreementas 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 deedsor other documents necessary to convey theProperty to the Buyer, all as described in the Agreement. Section 3.Effective Date. This resolution shall be effective upon approval. 509801v1 MNI CL205-70 112 Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 4thday of December, 2017. President ATTEST: Secretary 509801v1 MNI CL205-70 113 EXHIBIT A Property That Part of Lot 23 lying north of the south 20 feet of said Lot 23, and Lot 24, in Block 1, Minnesota according to the recorded plat thereof, and situate in Anoka County, Minnesota 509801v1 MNI CL205-70 114 PURCHASE AND REDEVELOPMENT AGREEMENT 4641 Polk Street NE, Columbia Heights, Minnesota 1. Parties. This Purchase and Redevelopment Agreement is made as of December 4, 2017, between the COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic under the laws of Minnesota having its office located at TH 590 40 Avenue NE, Columbia Heights, MN (the “Seller”), and HOME DETAIL, th 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”): That Part of Lot 23 lying north of the south 20 feet of said Lot 23, and Lot 24, in Block 1, Sheffield’s Second Subdivision, Anoka County, Minnesota according to the recorded plat thereof, and situate in Anoka County, Minnesota Check here if part or all of the land is Registered (Torrens) X 3. Acceptance Deadline. This offer to purchase, unless accepted sooner, shall be null and void at 4:30 p.m. on December 5, 2017, and in such event all earnest money shall be refunded to Buyer. 4. Price and Terms. The price for the Property is $35,000 (“Purchase Price”) which Buyer shall pay as follows: nonrefundable 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 (60 days from date of this Agreement) later than February 4, 2018. 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 509390v2 CL205-70 115 6. 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, subject to the conditions subsequent required by Sections 15, 16, and 17 of this Agreement (the “Deed”). 7. Real Estate Taxes and Special Assessments. A. Seller shall pay, at or before closing all real estate taxes due and payable in 2017 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: 1. 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 3. Declare this agreement null and void by notice to Seller, and earnest money shall be refunded to Buyer. 8. 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 filing 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 line, and that city water is available in the right of way adjacent to the Property. Seller makes no warranty regarding the conditions of any existing water stub from the main to the Property line. Seller advises Buyer to inspect the condition of the water stub. 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 2 509390v2 CL205-70 116 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. 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 following options, as permitted by law: A. Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation; B. Seek specific performance within six months after such right of action arises, including costs and reasonable attorney's fees, as permitted by law. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted by law: C. Seek damages from Seller including costs and reasonable attorney's fees; D. Seek specific performance within six months after such right of action arises. 3 509390v2 CL205-70 117 13. Well Disclosure. Seller’s knowledge of wells is as follows: X 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 a 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 December 4, 2017, attached hereto as Exhibit B. C. Construction of the Minimum Improvements must be substantially completed no later than one year from 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 furnish 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 instruments pertaining to the Property. If the Seller shall refuse or fail to provide any certification in accordance with the provisions of this 4 509390v2 CL205-70 118 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 fulfill the obligations undertaken in this Agreement by the Buyer as to the portion of the Property to be transferred; and (ii) Any proposed transferee, by instrument in writing satisfactory to the Seller and in form recordable in the public land records of Anoka County, Minnesota, shall, for itself and its successors and assigns, and expressly for the benefit of the Seller, have expressly assumed all of the obligations of the Buyer under this Agreement as to the portion of the Property to be transferred and agreed to be subject to all the conditions and restrictions to which the Buyer is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the Seller) deprive the Seller of any rights or remedies or controls with respect to the Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the 5 509390v2 CL205-70 119 parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit the Seller of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Property that the Seller would have had, had there been no such transfer or change. In the absence of specific written agreement by the Seller to the contrary, no such transfer or approval by the Seller thereof shall be deemed to relieve the Buyer, or any other party bound in any way by this Agreement or otherwise with respect to the Property, from any of its obligations with respect thereto. (iii) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Property governed by this subsection E. shall be in a form reasonably satisfactory to the Seller. (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. F. 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 The covenants in this paragraph run with the accordance with this Agreement). 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. 6 509390v2 CL205-70 120 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), fails to carry out its obligations with respect to the construction of the Minimum Improvements (including the nature and the date for the completion thereof), or abandons or substantially suspends construction work, and any such failure, abandonment, or suspension shall not be cured, ended, or remedied within thirty (30) days after written demand from the Seller to the Buyer to do so, then the Seller shall have the right to re-enter and take possession of the Property and to terminate (and revest in the Seller) the estate conveyed by the Deed to the Buyer, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to the Buyer shall be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of any default on the part of the Buyer and failure on the part of the Buyer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, the Seller at its option may declare a termination in favor of the Seller of the title, and of all the rights and interests in and to the Property conveyed to the Buyer, and that such title and all rights and interests of the Buyer, and any assigns or successors in interest to and in the Property, shall revert to the Seller, but only if the events stated in this Section have not been cured within the time periods provided above. Notwithstanding anything to the contrary contained in this Section, the Seller shall have no right to reenter or retake title to and possession of a portion of the Property for which a Certificate of Completion has been issued. For the purposes of this Agreement, the term “Unavoidable Delays” means delays beyond the reasonable control of the Buyer as a result thereof which are the direct result of strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the Seller in exercising its rights under this Agreement) which directly results in delays. Unavoidable Delays shall not include delays in the Buyer’s obtaining of permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such construction is required under this section of this Agreement. 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) 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 7 509390v2 CL205-70 121 connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property or part thereof (or, in the event the Property is exempt from taxation or assessment or such charge during the period of ownership thereof by the Seller, an amount, if paid, equal to such taxes, assessments, or charges (as determined by the Seller assessing official) as would have been payable if the Property were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property or part thereof at the time of revesting of title thereto in the Seller or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Buyer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Minimum Improvements or any part thereof on the Property or part thereof; and any amounts otherwise owing the Seller by the Buyer and its successor or transferee; and (b) Second, to reimburse the Buyer for the balance of the purchase price remaining after the reimbursements specified in paragraph (a) above. Such reimbursement shall be paid to the Buyer upon delivery of an executed, recordable warranty deed to the Property by the Buyer to the Seller. 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 mailed 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. 8 509390v2 CL205-70 122 24. Recording. This Agreement shall be filed of record with the Anoka County Registrar of Titles or Office of Recorder, as the case may be. Buyer shall pay all recording costs. 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 for purchase of the Property arising 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 By: _____________________________ By: ________________________________ Its President Its Executive Director STATE OF MINNESOTA } ss. COUNTY OF ANOKA The foregoing was acknowledged before me this ______ day of December, 2017, by Marlaine Szurek and Walter Fehst, the President and Executive Director of Columbia Heights Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic. _________________________________ Notary Public 9 509390v2 CL205-70 123 BUYER: HOME DETAIL, INC. By: _______________________________ STATE OF MINNESOTA } ss. COUNTY OF ANOKA The foregoing was acknowledged before me this ______ day of December, 2017, by ___________________, the ______________________ of Home Detail, Inc., a Minnesota corporation, on behalf of the corporation. _________________________________ Notary Public This document drafted by: Kennedy & Graven, Chartered 470 U.S. Bank Plaza th 200 South 6 Street Minneapolis, MN 55402 10 509390v2 CL205-70 124 EXHIBIT A to PURCHASE AND REDEVELOPMENT AGREEMENT FORM OF QUIT CLAIM DEED Deed Tax Due: $_______ ECRV: ___________________ THIS INDENTURE, between the Columbia Heights Economic Development Authority, a Minnesota, a public body corporate and politic (the “Grantor”), and Home Detail, Inc., a Minnesota corporation (the “Grantee”). WITNESSETH, that Grantor, in consideration of the sum of $35,000 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 4th of December, 2017, identified as “Purchase and Redevelopment Agreement” (hereafter referred to as the “Agreement”) and that the Grantee shall not convey this Property, or any part thereof, except as permitted by the Agreement until a certificate of completion releasing the Grantee from certain obligations of said Agreement as to this Property or such part thereof then to be conveyed, has been placed of record. This provision, however, shall in no way prevent the Grantee from mortgaging this Property in order to obtain funds for the purchase of the Property hereby conveyed or for erecting the Minimum Improvements thereon (as defined in the Agreement) in conformity with the Agreement, any applicable development program and applicable provisions of the zoning ordinance of the City of Columbia Heights, Minnesota, or for the refinancing of the same. It is specifically agreed that the Grantee shall promptly begin and diligently prosecute to completion the redevelopment of the Property through the construction of the Minimum Improvements thereon, as provided in the Agreement. 509390v2 CL205-70 125 Promptly after completion of the Minimum Improvements in accordance with the provisions of the Agreement, the Grantor will furnish the Grantee with an appropriate instrument so certifying. Such certification by the Grantor shall be (and it shall be so provided in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants of the Agreement and of this Deed with respect to the obligation of the Grantee, and its successors and assigns, to construct the Minimum Improvements and the dates for the beginning and completion thereof. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Grantee to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance the purchase of the Property hereby conveyed or the Minimum Improvements, or any part thereof. All certifications provided for herein shall be in such form as will enable them to be recorded with the County Recorder, or Registrar of Titles, Anoka County, Minnesota. If the Grantor shall refuse or fail to provide any such certification in accordance with the provisions of the Agreement and this Deed, the Grantor shall, within thirty (30) days after written request by the Grantee, provide the Grantee with a written statement indicating in adequate detail in what respects the Grantee has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Grantor, for the Grantee to take or perform in order to obtain such certification. SECTION 2. The Grantee’s rights and interest in the Property are subject to the terms and conditions of Sections 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 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 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. 509390v2 CL205-70 126 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, this ______ day of ____________, 2017. The Seller certifies that the Seller COLUMBIA HEIGHTS ECONOMIC does not know of any wells on the DEVELOPMENT AUTHORITY described real property. A well disclosure certificate By ____ accompanies this document or has been electronically filed. (If Its President electronically filed, insert WDC number: __________________). By I am familiar with the property described in this instrument and I Its Executive Director certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. 509390v2 CL205-70 127 STATE OF MINNESOTA ) ) ss COUNTY OF ANOKA ) On this ____ day of , 2017, before me, a notary public within and for Anoka County, personally appeared Marlaine Szurek and Walter Fehst 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 Marlaine Szurek and Walter Fehst acknowledged said instrument to be the free act and deed of said Authority. Notary Public This instrument was drafted by: Tax Statements should be sent to: Kennedy & Graven, Charted________________________________ 470 U.S. Bank Plaza ________________________________ 200 South Sixth Street ________________________________ Minneapolis, MN 55402 (612) 337-9300 509390v2 CL205-70 128 EXHIBIT B TO PURCHASE AND REDEVELOPMENT AGREEMENT APPROVED PROPOSAL 509390v2 CL205-70 129 509390v2 CL205-70 130 131 132 133 134 135 136 137 EXHIBIT C TO PURCHASE AND REDEVELOPMENT AGREEMENT FORM OF CERTIFICATE OF COMPLETION [The remainder of this page is intentionally blank.] 509390v2 CL205-70 138 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 Home Detail, Inc., a Minnesota corporation (the "Grantee"), by a Deed recorded in the Office of the County Recorder and in the Office of the Registrar of Titles in and for the County of Anoka and State of Minnesota, as Document Numbers _______________ and _____________, respectively; and WHEREAS, said Deed contained certain covenants and restrictions set forth in Sections 1 and 2 of said Deed; and WHEREAS, said Grantee has performed said covenants and conditions insofar as it is able in a manner deemed sufficient by the Grantor to permit the execution and recording of this certification; NOW, THEREFORE, this is to certify that all building construction and other physical improvements specified to be done and made by the Grantee have been completed and the above covenants and conditions in said Deed and the agreements and covenants in 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 Anoka and State of Minnesota are hereby authorized to accept for recording and to record, the filing of this instrument, to be a conclusive determination of the satisfactory termination of the covenants and conditions of Section 15B of the Agreement and the covenants and restrictions set forth in provided that the covenants set forth in Sections 15F of the Sections 1 and 2 of said Deed; Agreement, and in Section 3 of the Deed, remain in full force and effect through the period stated thereon . Dated: ______________, 20___. 509390v2 CL205-70 139 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA ) ) ss COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this ____ day of _____________, 20__, by ____________________ and ____________________, the President and Executive Director, respectively, of the Columbia Heights Economic Development Authority, on behalf of the authority. __________________________________________ Notary Public This document drafted by: KENNEDY & GRAVEN, CHARTERED 470 U.S. Bank Plaza Minneapolis, MN 55402 (612) 337-9300 509390v2 CL205-70 140