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HomeMy WebLinkAboutEDA RES 2017-04COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY R ESOLUTION NO, 2017-04 RESOLUTION APPROVING CANCELLATION OF PURCHASE AND REDEVELOPMENT AGREEMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND KATHERINE AND STEVEN PEPPLE BE IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01. The Authority and Katherine and Steven P'epple (the "Buyer") previously entered into a Purchase and Redevelopment Agreement dated August 4, 20�14 (the "Contract"), setting forth the terms and conditions of sale and redevelopment of certain property located at 4647 Polk Street and described as Lots 25 and 26, Block 1, Sheffields Second Subdivision to Columbia Heights, Anoka County, Minnesota (the "Property"), and the Authority conveyed the Property to the Buyer pursuant to the Contract. 1.012. Pursuant to the Contract, the Buyer was required to construct a single family horne, subject to the City's zoning and building codes and policies, within one year after closing on the conveyance of the Property. If the Buyer failed to meet this deadline, the Contract provided that the Authority could, upon 30 days' notice to the Buyer, exercise its right of reverter and reacquire the Property, 1.03. The Buyer has failed to construct the single family home as required under the Contract, and the Authority sent written notice of default to the Buyer on January 4, 2017, infon-ning the Buyer of its right to exercise its right of reverter, The Buyer has agreed to convey the Property back to the Authority. 1.04. The Authority finds that exercise of its right of reverter, cancellation of the Contract, and the addition of the Property to the Authority's Residential Lot Sales Program (the "Prograrn") for the purpose of remarketing the Property to other potential buyers are in the public interest and in the best interest of the Authority and City, because these actions will allow the Property to be made available for private development under a duly approved housing program and will further the City's housing goals. Section 2. Authority Approval, Further Proceedings. 2.01. The Board hereby approves exercise of its right of reverter and reacquisition of the Property via a warranty deed from the Buyer, cancellation of the Contract, and the addition of the Property to the Program, all subject to receipt of a cornmitment for title insurance and verification by Authority's legal counsel that no liens exist against the Property that would have a detrimental effect on the Authority's ownership interest in the Property. 4941380 Ni M (1,205-52 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the cancellation of the Contract and any documents related to reacquisition of the Property requiring execution by the Authority, 2.03, Authority and City staff are authorized and directed to take all actions to add the Property to the Program and to market the Property pursuant to the Program guidelines. Approved by the Board of Commissioners of the Columbia sleights Economic Development Authority this 6"' day of February, 2017. Pres den JAIL--- ATTEST: Assistant Secret4AJ 494138vl MNI CL205-52 2