Loading...
HomeMy WebLinkAbout20180205_EDA_Packet ECONOMIC DEVELOPMENT AUTHORITY AGENDA February 5, 2018 6:30 pm City Hall Conference Room 1 th 590 40 Avenue NE Columbia Heights, MN 55421 Meeting to be opened by the Executive Director 1.Call to Order 2.Roll Call 3.Pledge of Allegiance 4.Oath of Office a.Marlaine Szurek and Gerry Herringer 5.Election of Officers Meeting to resume under the leadership of the newly elected EDA President CONSENT AGENDA 6.Approve minutes of December 4, 2017 7.Approve Financial Report and Payment of Bills for November and December 2017 - Resolution 2018-01 Motion: Move to approve Consent Agenda as presented. BUSINESS ITEMS 8.Ratification of 4827 University Avenue NE Purchase Agreement Resolution 2018-02 Motion: Move to waive the reading of Resolution 2018-02, there being ample copies available to the public. Motion: Move to adopt Resolution 2018-02, a resolution ratifying the purchase agreement between the Columbia Heights Economic Development Authority and Brian and Sheri Ternes. The next regular EDA meeting will be March 5th, 2018 at City Hall. 9.Single Family Home Lot Sales Program - Final Sale Approval 4641 Tyler Street NE Resolution 2018-03 Motion: Move to waive the reading of Resolution 2018-03, there being ample copies available to the public. Motion: Move to adopt Resolution 2018-03, a resolution approving the purchase and redevelopment agreements with Tollberg Homes, LLC for the acquisition of 4641 Tyler Street NE, Columbia Heights, MN 55421. OTHER BUSINESS 10.Updates from 2017 and Project Discussions for 2018 11.3841 Central Avenue NE 12.Adjourn The next regular EDA meeting will be March 6th, 2017 at City Hall. 1 AGENDA SECTION ELECTION OF OFFICERS ITEM NO. 5 MEETING DATE FEBRUARY 5, 2018 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ITEM:Election of Economic Development Authority Officers DEPARTMENT: Community Development APPROVAL: BY/DATE: Keith Dahl, January 23, 2018 BY/DATE: BACKGROUND: Pursuant to the bylaws of the Columbia Heights Economic Development Authority require to be elected annually. The 2017 EDA officers that served are as follows: President Marlaine Szurek Vice President Donna Schmitt Treasurer Bobby Williams In order for an EDA Commission Member to be considered for an officer position, an EDA Commission Member must be nominated by another commissioner, or by him or herself. The bylaws require that the Executive Director conduct the following nomination process. 1.President a.Please provide all nominations for President of the EDA. b.Vote individually for each nominated member. c.The member with the most votes is declared the President of the EDA by the Executive Director. 2.Vice President a.Please provide all nominations for Vice President of the EDA. b.Vote individually for each nominated member. c.The member with the most votes is declared the Vice President of the EDA by the Executive Director. 3.Treasurer a.Please provide all nominations for Treasurer of the EDA. b.Vote individually for each nominated member. c.The member with the most votes is declared the Treasurer of the EDA by the Executive Director. Furthermore, it should be noted that the EDA Bylaws require the City Manager (Walt Fehst) to serve as the (Joe Hogeboom) However, the bylaws also specify that be appointed by the EDA. Thus, it is recommended that Shelley Hanson continue to serve as the Assistant Secretary, Keith Dahl serves as the Secretary, and Joe Kloiber serve as the Assistant Treasurer. Staff recommends approval of the following motions: 2 City of Columbia Heights EDA Letter City of Columbia Heights - Council Letter Page 2 Motion: Move to elect ____________________ as President of the Economic Development Authority. Motion: Move to elect ____________________ as Vice President of the Economic Development Authority. Motion: Move to elect ____________________ as Treasurer of the Economic Development Authority. Motion: Move to appoint Keith Dahl as Secretary of the Economic Development Authority. Motion: Move to appoint Shelley Hanson as the Assistant Secretary of the Economic Development Authority. Motion: Move to appoint Joseph Kloiber as the Assistant Treasurer of the Economic Development Authority. Following ratification of the above motions, the newly elected President of the EDA will now preside over the remainder of the meeting. 3 ECONOMIC DEVELOPMENT AUTHORITY(EDA) MINUTES OFTHE MEETING OF DECEMBER 4, 2017 Themeeting wascalled toorderat 6:30pmbyPresidentMarlaine Szurek. MembersPresent:Murzyn, Schmitt,Buesgens,Herringer, Williams, Novitsky, and Szurek StaffPresent:Walt Fehst, KeithDahl,Joseph Hogeboom, and Shelley Hanson PLEDGE OFALLEGIANCE- RECITED CONSENTAGENDA 1. ApproveminutesofNovember 6 and November 27,2017 2. Approve FinancialReport&PaymentofBillsfor October,2017Resolution2017-35 QuestionsfromMembers: There were no questions from members. Motion byNovitsky,seconded bySchmitt,toapprove the MinutesofNovember 6 and 27, 2017,andtheFinancial Report andPayment of BillsforOctober,2017aspresented.All ayes. MOTIONPASSED. RESOLUTIONNO.2017-35 AResolution of theEconomic Development Authorityof Columbia Heights, Minnesota,Approving the Financial Statements for the Month of October 2017and the Payment of the Bills for theMonth ofOctober, 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 WHEREAS, saidStatute 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 forthe month of October 2017has been reviewed by the EDA Commission;and WHEREAS, the EDA has examinedthe financialstatements andfinds them to be acceptable as to both formand accuracy; and 4 EDA Minutes Page 2 Dec 4, 2017 WHEREAS, the EDA Commission has other means to verify the intent of Section 469.096, Subd. 9, includingbut not limited to Comprehensive Annual FinancialReports, Annual City approved Budgets, Audits and similardocumentation; and WHEREAS, financials statements are helce Department ina 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 __4th____ dayof___December_____________, 2017 Offered by:Novitsky Seconded by:Schmitt Roll Call:All ayes BUSINESS ITEMS 1.Single Family Home Program-Approve Concept Application for 4641 TylerSt NE- Dahl reminded members that on November 6, 2017, the Columbia Heights Economic Development Authority (the tabledtheconsideration of a concept application submitted by Tollberg Homes for the construction of a single family home located at 4641 Tyler Street NE, Columbia Heights, MNbecause 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. Dahl stated that 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. Wade Tollefson was present to answer questions. Staff recommends approval of the concept application submitted by Tollberg Homes. 5 EDA Minutes Page 3 November 6, 2017 Questions by members: The Commission was satisfied with the price but questioned why he was still submitting a split entry design for the house. Tollefson said it fits into the surrounding neighborhood the best. The family who is purchasing this house wanted 5 bedrooms and 3 bathrooms to accommodate their family which can be accomplished with this design. He stated there is a 6 foot elevation change on the lot and to construct a two story house would make it tower above other homes in the area and look out of place. Szurek asked how the garage is being accessed. Tollefson said the driveway would be off the alley to the rear of the house, but itis an attached garage which is preferable to most homeowners. Schmitt questioned if it is common practice to leave the lower level unfinished. Tollefson said it is common if buyers are trying to keep price points down so they can finish the space as they can afford it. However, he said Tollberg Homes will be finishing the lower levelof this home, and this will be shown on the final plan. Schmitt then asked what size the porch is as she would like to see consistency with what they are requiring from the other builder. Tollefson said the front porch will be 12 x 6 with an additional 6 x 4 recessed porch area which meets the requirement. Motion by Buesgens, seconded by Novitsky, to accept the concept application submitted by Tollberg Homes for the property located at 4641 Tyler Street NE, Columbia Heights, MN 55421. All ayes. MOTION PASSED. Motion byBuesgens,seconded byMurzyn, 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. All ayes. MOTION PASSED. 2.Single Family Home Program-Final Sale Approval of4201 Jefferson St NE-Resolution 2017-31 Dahl stated that 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 bject Property was acquired with the intent to be incorporated into .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 islower than the estimated market land value, but higher than the market value found throughout the Heritage Heights Neighborhood. Thus, staff estimatedthat the Subject Property hada market value between $6.50 to $7.00 per square foot or approximately $33,540to $36,120based on the square footage of the lot. Home 6 EDA Minutes Page 4 Dec 4, 2017 Attached for review by EDA commission members isthe Purchase and Redevelopment Agreement for the sale of theSubject 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 Detailwaspresent at the EDA meeting to discuss their proposal, as well astoanswer any questions commission membershad regarding the proposal. Staff recommends final sale approval of 4201 Jefferson Street NE as presented. Questions from Members: nd The design submitted now shows the attached garage going out to 42Avenue which was acceptable to members. However there was a discussion regarding the two entry areas off the Jefferson St side-one as the main entry to the home and one being a service door to the garage. Members thought it was a confusing look. Buesgens agreed the entry point might be misconstrued by some, but she liked the look. Magdikstated he had a survey done and tried retain as much yard space as he could. Mohammad Hassan, the buyer, will have two children as of February. He said he wants the garage attached to the house in order to load/unload kids and groceries. He also wants a walk out basement so it is easier to watch the kids when they play outside. He intends to also build a deck. He told members he grew up in this community and wants to stay here and raise his family. He hoped the commission would approve the plan as submitted so they can proceed. nd Hogeboom suggested moving the entry door to the home to the 42Avenue side and just putting a window on the nd Jefferson side. This would mean the front entrance and garage would both be off 42Avenue. Magdik said the problem with that is that the stoop and steps would be in the setback area. Hogeboom told him that it is permitted to have the stoop/steps encroachin the setback area as long as the main structures do not. Magdik said he could make that work. Motion byBuesgens, seconded byHerringer, to waive the reading of Resolution 2017-31, there being ample copies available to the public. All ayes.MOTION PASSED. Motion byBuesgens, seconded byMurzyn, to adopt Resolution 2017-31,aResolution Approving the Purchase and Redevelopment Agreement with Home Detail, Inc. for the acquisition of 4201 Jefferson Street NE, Columbia Heights, MN 55421with the changes as discussed which will be included in the executed Redevelopment Agreement. All ayes. MOTION PASSED. 7 EDA Minutes Page 5 Dec 4, 2017 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2017-31 RESOLUTION APPROVING PURCHASE ANDREDEVELOPMENT 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 Sales Program (the 1.02.The velopment Agreement (the - 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,areconsistent with the Guidelines andin the best interest of the City and its residents, and that such conveyance has no relationship to the 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 Agreement by such officials shall be conclusive evidence of approval. 2.02.Authority staff and 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. Approved by the Board of Commissioners of the ColumbiaHeights Economic Development Authority this 4th day of December, 2017. President ATTEST: Secretary EXHIBIT A Property Lot 16, Block 32, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota. 8 EDA Minutes Page 6 Dec 4, 2017 3.Single Family Home Program-Final Sale Approval of 4641 Polk St NE-Resolution 2017-32 Dahl told members that on October 9, 2017, theColumbia Heights Economic Development A approved the concept application submitted by Home Detail, Inc. for the construction of a single family home on the property located at Subject Property is part of t specifically within the Heritage Heights Neighborhood. 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 theprice 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 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 theSubject 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 Detailwaspresent at the EDA meeting to discuss their proposal, as well as answer any questions commission members hadregarding the proposal. Staff recommends final sale approval of 4641 Polk Street NE as presented. Questions by members: It was noted that the front porch was increased to 11 feet and the side window was removed. Szurek thought it was a good looking design. She questioned where the back door to the home would be located. Magdik said there will be a patio door off the dining room with a couple of steps to grade. Motion by Schmitt, seconded byNovitsky, to waive the reading of Resolution 2017-32, there being ample copies available to the public. All ayes. MOTION PASSED. 9 EDA Minutes Page 7 Dec 4, 2017 Motion bySchmitt, seconded byMurzyn,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.All ayes. MOTION PASSED. 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 Program (the 1.02.The eto which provides for the conveyance of the Property to the Buyer and the construction by the Buyer of a single-family home on the Property, all pursuant to the Guidelines. 1.03.On 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 intere 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 Agreement by such officials shall be conclusive evidence of approval. 2.02. 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. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 4th day of December, 2017. President ATTEST: Secretary 10 EDA Minutes Page 8 Dec 4, 2017 EXHIBIT A Property Anoka County, Minnesota according to the recorded plat thereof, and situate in Anoka County, Minnesota OTHER BUSINESS 1.3841 Central Ave. update-Dahl told members that the pipe broke in the wall under the kitchen sink. The neighbor could hear the water running and saw water leaking to the outside, and came to City Hall to report it. Staff then went over and turned off thewater at the meter and then at the stop box. Dahl said Public Works will try to extract the excess water out of the carpet in the lower level and they will determinehow much sheetrock/insulation damage was done. He said structurally the house is sound,however, the condition of the plumbing,heating, and electricalsystems is unknown.Members agreed. Dahl suggested stripping the house of the appliances, stained glass, and anything else that may be of value and selling the items at a public auction. Hethen will go out for bids to have the structure demolished. Dahl said he will keep members apprised of any developments. 2.4827 University Ave-Dahl told members that the owner of the property at 4827 University approached the city to see if they wantedto purchase his property since it a non-conforming use. This property is a 65 ft lot and is next door to a property the city bought several years ago at 4833 University Ave which is a 55ft vacant lot. Dahl said he is going to put an offer in with the owner of $117,000 which is the 2018 assessed value. Herringer asked if realtors and sales commission would be involved. Dahl said no, this would be a direct agreement with the owner. He will keep members updated on whether the offer is accepted. Themeeting wasadjourned at 7:15pm. Respectfullysubmitted, Shelley Hanson Secretary 11 RESOLUTION NO. 2018-01 A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, APPROVING THE FINANCIAL STATEMENTS FOR THE MONTH OF NOVEMBER AND DECEMBER 2017 AND THE PAYMENT OF THE BILLS FOR THE MONTH OF NOVEMBER AND DECEMBER 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 November and December 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, State 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 5th day of February, 2018 Offered by: Seconded by: Roll Call: President Attest: Assistant Secretary 12 Resolution 2018-01 13 14 15 16 17 18 19 20 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 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 AGENDA SECTION BUSINESS ITEM ITEM NO. 8 MEETING DATE FEBRUARY 5, 2018 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ITEM:Ratification of 4827 University Avenue NE Purchase Agreement Resolution 2018-02 DEPARTMENT: Community Development BY/DATE: Keith M. Dahl, January 29, 2018 BY/DATE: BACKGROUND: approved Resolution 2017-18, a resolution which effectively entered the EDA into a Broker Representation Agreement with RE/MAX Synergy. Furthermore, the resolution authorized RE/MAX Synergy and staff to respond to active on properties identified as nonconforming under the current zoning code of the City. If these offers, in the form of a Purchase Agreement, are accepted by a seller, they are subject to ratification by the EDA prior to acquisition of the property. On November 28, 2017, Brian and Sheri Ternes, property owners of ) contacted staff to determine if the EDA would be interested in purchasing it. Since the Subject Property is nonconforming under current zoning code of the City and because it is located directly adjacent to 4833 University Avenue NE, a property owned by the City, staff worked with RE/MAX Synergy to place an offer on the Subject Property in the amount of $117,000. Brian and Sheri Ternes countered with an offer of $125,000, and after much negotiation agreed upon a sale price of $121,000. Thus, in order to acquire the Subject Property, the EDA is required to review and consider the ratification of said Purchase Agreement at its February 5th, 2018 EDA meeting, and the Planning and Zoning Commission will now be required to review the proposed acquisition to determine if it conforms to the Comprehensive Plan of the City. ject Property, an issue was identified with the deed of conveyance from the previous property owners to Brian and Sheri Ternes. The previous property owners, John and Corrine Ternes filed their deed as tenants in common instead of joint tenants. Since Corrine Ternes passed away before John Ternes conveyed the property to Brian and Sheri Ternes, her interest in the property still remains since the original deed was filed as tenants in common. Brian and Sheri Ternes have agreed to pay for the quiet probate to convey the interest of Corrine Ternes to them so that there is a clean and clear title. This however, may take three months, but to show good faith, staff recommends ratifying the Purchase Agreement, but not closing on the Subject Property until such time that a clear and clean title is obtain. This may require an amendment to extend the date of closing, but that will be addressed at the March EDA meeting if applicable. STAFF RECOMMENDATION: Staff recommends approval of Resolution 2018-02 as presented. RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2018-02, there being ample copies available to the public. Motion: Move to adopt Resolution 2018-02, a resolution ratifying the purchase agreement between the Columbia Heights Economic Development Authority and Brian and Sheri Ternes. 119 City of Columbia Heights EDA Letter City of Columbia Heights - Council Letter Page 2 ATTACHMENTS: 1.Resolution 2018-02 (3 Pages) 2.Letter of Sale Intent (1 Page) 3.Purchase Agreement (26 Pages) 120 RESOLUTION NO. 2018-02 RESOLUTION RATIFYING PURCHASE AGREEMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND BRIAN AND SHERI TERNES. 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. economic redevelopment purposes. The Property is described in Exhibit A attached hereto. 1.02. Pursuant to the Purchase Agreement, the Authority will purchase the Property from the Seller for a purchase price of $121,000 plus related closing costs. 1.03. The Authority finds that acquisition of the Property will result in redevelopment of a nonconforming property, and that such acquisition will facilitate the economic redevelopment and revitalization of this area of the City. 1.04. The Planning and Zoning Commission of the City will review the proposed acquisition of the Property at its regular meeting on February 7, 2018, and the Authority expects that the Planning and Zoning . SECTION 2. PURCHASE AGREEMENT APPROVED. 2.01. The Authority hereby ratifies and approves the actions of Authority staff and of Re/Max Synergy acting as the Au presenting the Purchase Agreement. The Authority approves the Purchase Agreement in the form presented to the Authority and on file at City Hall, subject to the Plannin acquisition of the Property by the Authority conforms to the comprehensive plan of the City, and 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 Purchase Agreement by those officials shall be conclusive evidence of their approval. 2.02. Authority staff and officials are authorized to take all actions necessary to perform the obligations under the Purchase Agreement as a whole, including without limitation execution of any documents to which the Authority is a party referenced in or attached to the Purchase Agreement, and any deed or other documents necessary to acquire the Property from the Seller, all as described in the Purchase Agreement. 121 Resolution 2018-02 City of Columbia Heights EDA Resolution Page 2 ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 5th day of February, 2018 Offered by: Seconded by: Roll Call: President Attest: Assistant Secretary 122 City of Columbia Heights EDA Resolution Page 3 EXHIBIT A Property Lot Numbered Twenty-two (22), in Block Numbered Twenty (20), Roslyn Park, Columbia Heights, according to the plat thereof on file and of record in the office of the Registrar of Deeds in and for the County of Anoka, State of Minnesota Torrens property Registered property as evidenced by Certificate of Title No. 126192 AND The south half (S1/2) of Lot 23, Block 20, Roslyn Park, Columbia Heights, according to the recorded plat thereof, and situate in Anoka County, Minnesota. Abstract Property 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 AGENDA SECTION BUSINESS ITEMS ITEM NO. 9 MEETING DATE FEBRUARY 5, 2018 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ITEM:Single Family Home Program Final Sale Approval of 4641 Tyler Street NE DEPARTMENT: Community Development BY/DATE: Keith M. Dahl, January 29, 2018 BY/DATE: BACKGROUND: On November 6, 2017, the Columbia Heights Economic Development Authority (EDA) approved the concept application submitted by Tollberg Homes for the construction of a single family home on the property located at 4641 Tyler more specifically within the Heritage Heights Neighborhood. 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 $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. However, 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. And, t 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 Tollberg Homes. STAFF RECOMMENDATION: Staff recommends final sale approval of 4641 Tyler Street NE as presented. 151 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 2018-03, there being ample copies available to the public. Motion: Move to adopt Resolution 2018-03, a resolution approving the purchase and redevelopment agreement with Tollberg Homes, LLC for the acquisition of 4641 Tyler Street NE, Columbia Heights, MN 55421. ATTACHMENTS: 1.Resolution 2018-03 (3 Pages) 2.Purchase and Redevelopment Agreement (22 Pages) 152 RESOLUTION NO. 2018-03 RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT AGREEMENT WITH TOLLBERG HOMES, LLC. 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 1.02. certain conveyance of the Property to the Buyer and the construction by the Buyer of a single-family home on the Property, all pursuant to the Guidelines. 1.03. On the date hereof, the Authority conducted a duly noticed public hearing regarding the conveyance of the Property to the Buyer, at which all interested parties were given an opportunity to be heard. 1.04. The Board has reviewed the Agreement in the form on file at the office of the Executive Director and finds that the execution thereof and performance of the Authority's obligations thereunder, including the conveyance of the Property to the Buyer, are consistent with the Guidelines and in the best interest of the City and its residents. SECTION 2. APPROVAL AND AUTHORIZATION OF AGREEMENT AND CONVEYANCE. 2.01. The Agreement as presented to the Board and the conveyance of the Property provided for therein are hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Agreement by such officials shall be conclusive evidence of approval. 2.02. Authority staff and officials are authorized to take all actions necessary to perform the thout limitation execution of any documents to which the Authority is a party referenced in or attached to the Agreement, and any deeds or other documents necessary to convey the Property to the Buyer, all as described in the Agreement. SECTION 3. EFFECTIVE DATE. This resolution shall be effective upon approval. 153 Resolution 2018-03 City of Columbia Heights EDA Resolution Page 2 ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 5th day of February, 2018 Offered by: Seconded by: Roll Call: President Attest: Assistant Secretary 154 City of Columbia Heights EDA Resolution Page 3 EXHIBIT A Property Lot Twenty-five (25) and the South 20 feet of Lot Twenty- Subdivision. 155 PURCHASE AND REDEVELOPMENT AGREEMENT 4641 Tyler Street, Columbia Heights, Minnesota 1.Parties. This Purchaseand Redevelopment Agreement is made as of February 5,2018 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 40Tollberg Homes, LLC, th a Minnesota limited liability company, having its principal office at 1428 5Avenue Anoka, MN 55303. 2.Offer/Acceptance. Buyer offers to purchase and Seller agrees to sell real propertyin Anoka County, Minnesota, Lot Twenty-five (25)and the South 20 feet of Lot Twenty-six (26), BlockTwo(2) of . 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 4:30p.m. on February6, 2018,and in such event all earnest money shall be refunded to Buyer. 4.Price and Terms. The price for the Property is $27,500.00which Buyer shall pay as follows: nonrefundable earnest moneyof $2,000by check, receipt of which is hereby acknowledged by Seller. The balance of thePurchase Pricemust be paid by certified check or wire transfer on the Date of Closing. T (60 days from date of this Agreement) no later than April6, 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 conditions subsequent required by Sections 15, 16, and 17 of this Agreement(the 1 512636v2 CL205-58 156 7.Real Estate Taxes and Special Assessments. A.Seller shall pay, at or before closing all real estate taxes due and payable in 2017and prior years. Real estate taxes due and payable in the year of closing shall be paid by Buyer. B.Seller shall pay on Date of Closing all special assessments levied against the Property as of thedate 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 agreem 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 Buyershall 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 feesfor 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 Propertyline, 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 acknowledgesthat they have inspected or have had the the right, at its own expense to take soil samples for the purpose ofdetermining if the soil is suitable for construction of the dwelling described in section 14 below. If the soil is determined to be unacceptable the Buyer may rescind this agreement by written notice to the Seller, in which case the agreement shall be null and void. Seller makes no warranties as to the condition of the Property. 2 512636v2 CL205-58 157 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 own title service provider; and (b)Buyer shall obtain the title evidence determined necessary or desirable by Buyer. The Buyer shall have 20days 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. as follows: The Seller certifies that the Seller does not know of any wells on the described real property. 3 512636v2 CL205-58 158 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 Propertyhave 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 A.The single family dwelling described in this Section is referred to as the 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 ProgramGuidelines on file at City Halland the proposal approved by Seller onDecember 5, 2017, attached hereto as Exhibit B. C.Construction of the Minimum Improvements must be substantially completed no later thanone 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 adequatedetail 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 4 512636v2 CL205-58 159 acts it will be necessary, in the opinion of the Seller for the Buyer totake 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 de 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 reasonablejudgment 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 interestwhatsoever to, the Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the Seller) deprive the Seller of any rights or remedies or controls with respect to the Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that(to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, 5 512636v2 CL205-58 160 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 Improvements, the Buyer, subject to Unavoidable Delays (as hereafter defined), fails to carry out its obligations with respect to the constructionof 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 6 512636v2 CL205-58 161 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 statedin 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. 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) 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 ownership thereof by the Seller, an amount, if paid, equal tosuch 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 7 512636v2 CL205-58 162 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 Propertyby 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. 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 8 512636v2 CL205-58 163 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 PresidentIts Executive Director STATE OF MINNESOTA } ss. COUNTY OF ANOKA The foregoing was acknowledged before me this ______ day of _________ 2018, by ____________________and Walter Fehst,the President and ExecutiveDirector 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 512636v2 CL205-58 164 BUYER: Tollberg Homes, LLC By: _______________________________ STATE OF MINNESOTA } ss. COUNTY OF ANOKA The foregoing was acknowledged before me this ______ day of _________,2018, by Wade Tollefson,theChief Manager of Tollberg Homes, LLC,a Minnesota limited liability company, on behalf of the limited liability company. _________________________________ Notary Public This document drafted by: Kennedy & Graven, Chartered 470 U.S. Bank Plaza th 200 South 6Street Minneapolis, MN 55402 10 512636v2 CL205-58 165 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 WITNESSETH, that Grantor, in consideration of the sum of $_________ and other good and valuable consideration the receipt whereof is hereby acknowledged, does hereby grant, bargain, quitclaim and convey to the Grantee, its successors and assigns forever, all the tract or parcel of land lying and being in the County of Anoka and State of Minnesota described as follows, to-wit (such tract or parcel of land is hereinafter referred 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 issubject to the covenants, conditions, restrictions and provisions of an agreement recorded herewith entered into between the Grantor 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 orsuch 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. 512636v2 CL205-58 166 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 andthe 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. Sections 15, 16 and 17-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 15Fof the Agreement for a period of tenyears 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, andwithout 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. 512636v2 CL205-58 167 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 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 wellson the described real property have not changed since the last previously filed well disclosure certificate. 512636v2 CL205-58 168 STATE OF MINNESOTA) ) ss COUNTY OF ANOKA) On this ____ day of , 20___, before me, a notary public within and for __________ County, personally appeared and to me personally known who by me dulysworn, did say that they are the President and Executive 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 512636v2 CL205-58 169 EXHIBIT B TO PURCHASE AND REDEVELOPMENT AGREEMENT APPROVED PROPOSAL 512636v2 CL205-58 170 512636v2 CL205-58 171 512636v2 CL205-58 172 512636v2 CL205-58 173 512636v2 CL205-58 174 EXHIBIT C TO PURCHASE AND REDEVELOPMENT AGREEMENT FORM OF CERTIFICATE OF COMPLETION 512636v2 CL205-58 175 CERTIFICATE OF COMPLETION WHEREAS, the Columbia Heights Economic Development Authority, a public body, corporate and politic (the "Grantor"), conveyed land in Anoka County, Minnesota to ___________________, a ___________________ (the "Grantee"), by a Deed recorded in the Office of the County Recorder [and in the Office of the Registrar of Titles] in and for the County of Anoka and State ofMinnesota, 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 Section15Bof the Agreement and the covenants and restrictions set forth in provided that the covenants set forth in Sections 15Fof 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 DEVELOPMENTAUTHORITY By Its President By Its Executive Director 512636v2 CL205-58 176 STATE OF MINNESOTA) ) ss COUNTYOF 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 512636v2 CL205-58 177 AGENDA SECTION OTHER BUSINESS ITEM NO. 10 MEETING DATE FEBRUARY 5, 2018 CITY OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ITEM:Updates from 2017 and Project Discussions for 2018 DEPARTMENT: Community Development APPROVAL: BY/DATE: Keith Dahl, January 30, 2018 BY/DATE: BACKGROUND: Throughout 2017, the Economic Development Authority (EDA) has accomplished several projects and objectives. 7, but also to determine the projects and objectives that the EDA would like staff to focus on in 2018. Highlights of 2017 accomplishments include, but not limited to the following: 2017 EDA Accomplishments Facilitated redevelopment of the property located at 47th Avenue NE and Grand Avenue NE with the development of the Grand Central Flats in an effort to complete the Grand Central Neighborhood which was originally initiated back in 2003. Leveraged funds through the Grand Central Flats development to collect park dedication fees in the amount of $222,000 for . Refinanced the Public Safety Facility Lease Revenue Bonds, series 2007B (Municipal Liquor Stores), to save the City a net present value of $775,000. Increased the EDA Levy to the statutory levy limit to increase the amount of funds for economic development purposes. Identified and received an interfund transfer in the amount of $1,025,445 from the Fund 213: Park View Villa to Fund 408: EDA Redevelopment Projects Fund. Initiated the Commercial Revitalization Program, a program setup to acquire nonconforming properties under the current zoning code of the City through all commercial corridors. Sold or pending sale of all remaining lots in the Single Family Home Lot Sales Program. Now, as the EDA looks ahead to 2018, staff seeks to facilitate discussion about what projects, programs, and objectives commission members desire to see initiated and/ or completed in 2018. First, staff would like to review the fund balances of several accounts that the EDA utilizes to accomplish its initiatives. The figures below are estimations and subject to change as the year-end fund balances have not been finalized for all the accounts. Fund 226: Special Projects Revenue: $ 887,000 Fund 371: TIF T4 Kmart/ Central Ave: $ 430,000 Fund 376: TIF A3,C7,C8 Scattered Site District: $ 112,000 Fund 408: EDA Redevelopment Project Fund $ 821,000 Fund 420: CAP Improvement Development: $ 1,695,000 Anoka County HRA Levy: $ 515,000 178 City of Columbia Heights EDA Letter City of Columbia Heights - EDA Letter Page 2 The list below provides a starting point for the discussion tonight. Staff highly encourages the EDA commission members to provide feedback and propose changes to the following 2018 proposed projects, programs, and objectives: 2018 Proposed Projects, Programs and Objectives Continue the development of and initiation of a business retention and expansion program to assist the Columbia Heights business community. Reevaluate the guidelines, specifications, and requirements of the Single Family Home Lot Sales Program, and continue to incorporate vacant lots into the Single Family Home Lot Sales Program. Evaluate the possibility of introducing an exterior façade improvement or a surveillance system grant program for the Columbia Heights business community. Determine a fund source and create a housing rehabilitation grant or low to no interest loan program for exterior remodels and/ or interior renovations. Acquire and remediate the Root Property located on the corner of 40th Avenue NE and University Avenue NE. Relocate the residential structure located at 3841 Central Avenue NE to 666 40th Avenue NE. Identify a redevelopment opportunity for the property located at 828 40th Avenue NE. 179