HomeMy WebLinkAbout2020-3017PURCHASE AGREEMENT
THIS PURCHASE AGREEMENT (this "Agreement") is made as of this 17th day of
June, 2020 (the "Effective Date"), between THE CITY OF COLUMBIA HEIGHTS ("Seller"),
and REUTER WAL TON DEVELOPMENT, LLC, a Minnesota limited liability company,
and/or its permitted assigns ("Buy er").
RECITALS
A.Seller is the fee owner of that certain northern outlot of the Public Safety Parcel
located at 825 41 st A venue NE in Columbia Heights, Minnesota as depicted in green on Exhibit A
hereto (the "Land").
B.Seller desires to sell the Land to Buyer and Buyer desires to purchase the Land
from Seller pursuant to the terms and conditions of this Agreement.
NOW THEREFORE, in consideration of the covenants set forth herein and other good
and valuable consideration, the receipt and sufficiency of which the parties hereby acknowledge,
Seller and Buyer hereby agree as follows:
1.Sale of Property. Subject to compliance with the terms of this Agreement, Seller
agrees to sell to Buyer, and Buyer agrees to buy from Seller, the following property: The Land,
together with (i) any improvements located on the Land ("Improvements"), and (ii) any easements
and rights benefiting or appurtenant to the Land, including Seller's rights in any vacated or existing
public rights of way abutting the property ("Appurtenances") (the Land, Improvements and
Appurtenances are collectively the "Property"), subject only to Permitted Encumbrances (as defined
below).
2.Earnest Money. Within 2 days after the date of full execution and delivery of this
Agreement, Buyer shall deposit $10,000 (such deposit together with the interest earnings thereon is
referred to herein as the "Earnest Money") to be deposited with and held in trust in an interest
bearing account (all interest earned thereon shall be credited to Buyer) by First American Title
Company (the "Title Company") until applied to the Purchase Price at Closing (as defined in
Section 6 below) or otherwise disbursed to Buyer or Seller as required in this Agreement. The
Earnest Money shall be disbursed as follows:
(a)If Seller terminates this Agreement pursuant to Section 22 hereof because of
Buyer's default, the Earnest Money shall be disbursed to Seller upon such termination. If Buyer
terminates this Agreement pursuant to Section 22 hereof because of Seller's default, the Earnest
Money shall be disbursed to Buyer upon such termination.
(b)If Buyer terminates this Agreement due to any casualty or condemnation pursuant to
Section 13 hereof, the Earnest Money shall be disbursed to Buyer upon such termination.
Contract # 2020-3017
( c)If Buyer terminates this Agreement on or before the Due Diligence Contingency
Date, the Earnest Money shall be disbursed to Buyer upon such te1mination.
( d)Notwithstanding anything contained herein, if Buyer proceeds to Closing, all
Earnest Money shall be credited to Seller in part payment of the Purchase Price, and the Earnest
Money shall be disbursed to Seller at Closing.
3.Purchase Price. The purchase price for the Property shall be $450,000 (the
"Purchase Price"). The Purchase Price shall be paid as follows:
funds.
(a)The crediting of the Earnest Money to Seller; and
(b)The balance to be paid by wire transfer or other immediately available
4. Buyer's Contingencies. Buyer's obligation to close on the transaction
contemplated hereunder is contingent upon the occurrence of the events described below.
(a)On or before June 1, 2021(the "Due Diligence Contingency Date"):
(i)Title and Survey. The condition of title and the survey shall have been
found acceptable to Buyer, or been made acceptable, in accordance with the
requirements and terms of Section 5 below.
(ii)Testing, fuvestigation. Buyer shall have determined that it is satisfied with
the results of all matters disclosed by soil tests, soil borings, engineering
inspections, structural and mechanical inspections, surveys, and any and all
other reviews, tests or studies of the Property, including tests and inspections
relating to asbestos and the adequacy of utilities available to the Property, all
such tests, investigations and reviews to be obtained at Buyer's sole cost and
expense and Buyer shall obtain Seller's consent prior to conducting such
tests or investigations, which consent shall not be unreasonably withheld.
Seller shall allow Buyer, and Buyer's agents, access to the Property without
charge and at all reasonable times for the purpose of Buyer's investigation
and testing the same. fu performing such investigation and testing Buyer
shall make reasonable efforts to minimize any interference with the
Property's operation. Buyer shall pay all costs and expenses of such
investigation.
(iii)Environ mental fuvestigation. Buyer shall have determined that it is satisfied
with the results of all matters disclosed by hazardous waste and
environmental reviews of the Property. Seller shall allow Buyer, and Buyer's
agents, access to the Property without charge and at all reasonable times for
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the purpose of Buyer's investigation and testing the same. All such tests,
investigations and reviews will be obtained at Buyer's sole cost and expense
and Buyer shall obtain Seller's consent prior to conducting such tests or
investigations, which consent shall not be unreasonably withheld. In
performing such investigation and testing, Buyer shall make reasonable
efforts to minimize any interference with the operation of the Property.
Buyer shall pay all costs and expenses of such investigation and testing.
(iv)Document Review. Within 5 business days of the Effective Date, Seller
shall provide Buyer with true and correct copies of all documents and
materials in Seller's possession relating to the Property, including but not
limited to:
•Current and prior year's property tax statements
•Any title evidence or survey of the Property
•Written notices received from any governmental organization of any
violation regarding operation of the Property
•Engineering and environmental inspection reports, any environmental
remediation plans, any no-action letters or other documentation
relating to completion of environmental remediation at the Property
•Phase I and Phase II reports
v.Governmental Approvals. Buyer shall have received any and all necessary
governmental approvals for its proposed redevelopment of the Property into
a multi-family housing project financed by low income housing tax credits
in its sole discretion (the "Project"). .
v1. Financing. Buyer shall have received commitments for any and all of the
necessary financing for its proposed redevelopment of the Property in its
sole discretion, including but not limited to low income housing tax
credits.
(b)On or before the Closing Date (the "Final Contingency Date"):
(i)Representations and Warranties. Seller's representations and warranties
contained in this Agreement must be accurate in all material respects now
and on the Closing Date as if made on the Closing Date and Seller shall have
delivered to Buyer at closing a certificate dated the Closing Date certifying
that such representations and warranties are true as of the Closing Date
("Update Certificate").
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(ii)Material Changes. There shall have been no material adverse changes in the
operation or physical condition of the Property in the period between the
Effective Date of this Agreement and the Closing Date.
(iii)Title Policy. On or before the Closing Date, Buyer shall have obtained from
the Title Company a proforma title policy or a suitably marked up Title
Commitment (as defined herein) initialed by the Title Company in the form
required by this Agreement.
For purposes herein the Due Diligence Contingency Date and the Final Contingency Date shall
be individually and collectively referred to as a "Contingency Date." If any contingency set forth
in this Section 4 has not been satisfied on or before the applicable Contingency Date, then this
Agreement may be terminated, at Buyer's option, by written notice from Buyer to Seller and the
Earnest Money shall be returned to Buyer in accordance with Section 2 above. Such notice of
termination must be given at any time not later than the applicable Contingency Date. All the
contingencies set forth in this Section 4 are specifically stated and agreed to be for the sole and
exclusive benefit of Buyer, and Buyer shall have the right to unilaterally waive any contingency
in Section 4 by written notice to Seller. Seller agrees to cooperate with and assist Buyer in
attempting to satisfy each of the foregoing contingencies. Notwithstanding the foregoing, Buyer
shall have one option to extend the Due Diligence Contingency Date by a period of 1 year. Buyer
shall exercise such option by (i) delivery of written notice to Seller; and (ii) depositing an
additional sum of Earnest Money in the amount of $10,000 with the Title Company; both of
which must be received before the Due Diligence Contingency Date.
5.Seller's Contingencies. Seller's obligation to close on the transaction
contemplated hereunder is contingent upon the occurrence of the events described below.
(a)Buyer will agree by contract to not charge the apartment residents any separate
amounts for parking on the Property. This provision applies to all onsite parking,
surface and underground. This provision shall continue for the term of the tax credit
compliance period.
(b)Buyer agrees that the food shelf parcel identified in Exhibit A will be a separate tax
parcel from the apartment tax parcel. Buyer will subdivide apartment parcel at
Buyer's sole cost.
( c)A shared parking agreement for food shelf parking shall be established covering the
parking spaces immediately adjacent to the food shelf on the Buyer's surface parking
lot. This shared parking agreement shall be established at the time the separate food
shelf tax parcel is created The shared parking agreement shall provide for 10 shared
surface parking stalls for as long as the food shelf owns the adjacent property.
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( d)Final review and approval of the conveyance of the Property requires a public hearing
by the City Council and conveyance by ordinance.
6.. Title.
(a)Condition of Title. On the Closing Date, Seller shall be required to convey
fee title to the Property to Buyer, subject to no liens, easements, encumbrances, conditions,
reservations or restrictions other than the Permitted Encumbrances (as defined below).
(b)Title Evidence. The following shall constitute "Title Evidence":
(i)Title Insurance Commitment. Seller shall obtain, at Seller's
expense, and deliver to Buyer within 15 days after the Effective Date a
commitment (the "Title Commitment") from the Title Company for an Owner's
Policy of Title Insurance, together with legible copies of all documents, maps and
plats referenced therein, in an amount requested by Buyer.
(ii)Survey. Buyer may order, at Buyer's expense, within 15 days of
receipt of the Title Commitment, an ALT A survey of the Property from a
registered land surveyor properly licensed to practice in Minnesota and acceptable
to Buyer (the "Survey").
(c)Buyer's Objections. Within 10 days after receiving the last of the Title
Commitment and Survey ( collectively, the "Title Evidence"), Buyer shall make written
objections ("Objections") to the form and/or contents of the Title Evidence. Buyer's failure
to make Objections within such time period will constitute waiver of objections, except that
Buyer shall not be deemed by virtue of failure to so object to have waived any proper
objection relating to any consensual lien on the Property. Any matter shown on such Title
Evidence and not included in Buyer's Objections (other than such consensual liens) shall be
a "Permitted Encumbrance" hereunder.
( d)Seller Cure Period. Seller shall have 10 days after receipt of the Objections
to cure the Objections. Seller shall use its best efforts to correct any Objections. To the
extent an Objection can be satisfied by the payment of money, Buyer shall have the right to
apply a portion of the cash payable to Seller at the Closing to satisfy such Objection and the
amount so applied shall reduce the amount of cash payable to Seller at the Closing. If the
Objections are not cured within such IO-day period, Buyer's options will be to do the
following: (i) terminate this Agreement by written notice to Seller and the Earnest Money
shall be disbursed to Buyer; (ii) waive the Objections and proceed to close; or (iii) give
Seller an extension to correct any Objections, which extension shall postpone the Closing
Date as necessary.
7.. Closing. The consummation of the purchase and sale transaction contemplated by
this Agreement (the "Closing") shall occur on or before 60 days after the Due Diligence
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Contingency Date as it may be extended (the "Closing Date"), at such place as Buyer and Seller
may agree. Seller shall deliver possession of the Property to Buyer on the Closing Date.
8.. Seller's Closing Obligations. On the Closing Date, Seller shall execute and/or
deliver to Buyer the following items, which are referred to as "Seller's Closing Documents."
Seller's Closing Documents shall be duly executed and, where appropriate, be in recordable
form.
(a)Deed. A warranty deed (the "Deed"), conveying the Property to Buyer, free and
clear of all encumbrances, except the Permitted Encumbrances.
(b)Evidence of Termination. Evidence of the termination of any agreements related
to the Property effective as of the Closing Date, except to the extent Buyer has specifically
agreed to assume the same and acknowledged its continuing obligation therefor.
( c)Update Certificate. Seller's Update Certificate.
( d)Seller's Affidavit. An Affidavit by Seller indicating that on the Closing Date, other
than the Permitted Encumbrances, there are no outstanding, unsatisfied judgments, divorce
proceedings, tax liens or bankruptcies against or involving Seller or the Property; that there has
been no skill, labor or material furnished to the Property for which payment has not been made or
for which mechanics' liens could be filed; and that there are no unrecorded interests in the Property,
together with whatever standard owner's affidavit and/or indemnity (ALTA form) that may be
required by the Title Company to issue an Owner's Policy of Title Insurance with the standard
exceptions waived.
(e)FIRPTA Affidavit. A non-foreign affidavit as required by applicable law.
(f)Other Documents. A closing statement and all other documents necessary to
transfer the Property to Buyer free and clear of all encumbrances except for the Permitted
Encumbrances and to allow the Title Company to record the Deed and issue the Title Insurance
Policy required by this Agreement.
(g)Possession. Possession of the Property, free of possession by Seller or anyone
occupying the Property pursuant to agreements with Seller.
(h)Keys. All keys and lock and safe combinations relating to the Property.
9.. Buyer's Closing Obligations. On the Closing Date, Buyer will execute and/or
deliver to Seller the following, which (in the case of documents) are referred to as "Buyer's
Closing Documents." Buyer's Closing Documents shall be duly executed and, where
appropriate, be in recordable form.
(a)Purchase Price. The remaining balance of the Purchase Price, by wire
transfer or other immediately available funds.
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(b)Other Documents. A closing statement and all other documents necessary to
transfer the Property to Buyer free and clear of all encumbrances except for the Permitted
Encumbrances and to allow the Title Company to record the Deed and issue the Title
Insurance Policy required by this Agreement.
10.. Costs and Prorations. Seller and Buyer agree to the following prorations and
allocation of costs regarding this Agreement:
a)All real estate taxes due and payable for all years prior to Closing shall be
paid by Seller. Seller shall pay all special assessments levied or pending as of the Closing
Date. Real estate taxes for the year of Closing shall be prorated between Buyer and Seller
based on the most recent tax bill, so that Seller pays that portion of the real estate taxes
payable up to and including the Closing Date and Buyer pays that portion of the real
estate taxes payable after the Closing Date. Buyer shall pay all real estate taxes due and
payable in years following the Closing Date. Buyer shall pay all special assessments
levied or pending after the Closing Date.
(b)Seller shall pay all title charges for the issuance of the Title Commitment.
Buyer shall pay for the Survey. Buyer shall pay for any Title Policy premium for the
owner's policy of title insurance, including any requested endorsements.
( c)Buyer shall pay all costs of recording the Deed and Seller shall pay for the
cost of recording any other documents necessary to convey the Property as required by this
Agreement.
( d)Seller shall pay the deed tax and Buyer shall pay the mortgage registry tax, if
any, in connection with the Closing.
( e)Any closing fee payable to the Title Company or escrow fees shall be shared
equally by Seller and Buyer.
( f)All utility bills, charges, and other operating costs of the Property ( other than
real estate taxes and special assessments) shall be allocated between Seller and Buyer as of
the Closing Date, so that Seller pays that portion of the bills, charges, and other operating
costs due and payable on or before the Closing Date and Buyer pays that portion of the bills,
charges, and other operating costs due and payable after the Closing Date.
(g)Each of the parties will pay its own attorneys' fees, except that a party
defaulting under this Agreement or any closing document will pay the actual, reasonable
attorneys' fees, corut costs and any and all other costs incurred by the non-defaulting party
to enforce its rights regarding such default.
11.Operation Prior to Closing. During the period from the date of Seller's acceptance of
this Agreement to the Closing Date (the "Executory Period"), Seller shall:
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(a)Operate and maintain the Property in the ordinary course of business in
accordance with prudent, reasonable business standards, including maintaining liability
insurance in the forms and amounts in place on the Effective Date.
(b)Not convey or otherwise transfer any of the Property without the consent
of Buyer.
(c)Not execute any contracts, leases or other agreements regarding the
Property during the Executory Period that do not terminate on or before the Closing Date
without the written consent of Buyer, which consent may be withheld by Buyer in its sole
discretion.
(d)Promptly deliver to Buyer a copy of any notice, consent, waiver, request or
other communication Seller receives from any public or private entity with respect to any
of the Property.
(e)Not sell, dispose, transfer, assign or otherwise remove any of the Property
except Property that is replaced with Property of equivalent or greater value in the
ordinary course of business without the consent of Buyer.
(f)Timely pay and discharge all bills and monetary obligations and timely
and properly perform all of its obligations and commitments under all existing contracts
and agreements pertaining to the Property, except as to amounts or obligations which
Seller contests in good faith.
(g)Not enter into any negotiations with or solicit any offer, inquiry or
proposal from any other person with respect to the sale, merger or other acquisition of the
Property.
12.. Representations and Warranties by Seller. Seller represents and warrants to Buyer
as follows:
(a)Authority. Seller has the requisite power and authority to enter into and
perform this Agreement and those Seller's Closing Documents signed by it; the foregoing
documents have been or will be duly executed and delivered; the execution, delivery and
performance by Seller of such documents do not conflict with or result in a violation of
any judgment, order, or decree of any court or arbiter or any other agreements of any
nature to which Seller is a party; such documents are or will be when signed valid and
binding obligations of Seller and are enforceable in accordance with their terms.
(b)Contracts. Seller has not entered into any contracts for the sale of the
Property other than this Agreement. Seller has received no notice of and has no
knowledge of any rights of first refusal, right of first offer or options to purchase any of
the Property or any other rights or agreements that may delay or prevent this transaction.
No person or entity is entitled to possession of any of the Property other than Seller.
There is in effect no contract or agreement relating to occupancy, management or
operation of the Property that cannot be terminated on or prior to the Closing Date.
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(c)Compliance. The Property is in compliance with applicable law, without
the benefit of any "grandfathering" or similar variance. Seller has received no notice or
complaint from any governmental agency or subdivision of a governmental agency of any
legal or regulatory noncompliance related to the Property, including but not limited to
noncompliance with health, safety, fire, electrical or building codes or environmental,
zoning, planning or other land use requirements. Seller has received no notice of any
default or breach of any covenants, conditions, restrictions or easements affecting the
Property. Seller has not received any notice or complaint from any insurance underwriter
relating to the condition or operation of the Property. If Seller receives any such notice at
any time prior to Closing, Seller shall notify Buyer of such notice and, at Buyer's request,
provide a copy of such notice, if in writing, to Buyer,
( d)Subdivision. On or before the Due Diligence Contingency Date, the
Property shall constitute a separate parcel of record for real estate tax assessment and
conveyancing purposes, and shall comply with applicable law governing the subdivision
of real property.
(e)Mechanic's Liens. There has been no labor or materials of any kind
furnished to or for the benefit of the Property for which payment in full has not been made
or with respect to which a construction lien may be filed against the Property.
(f)Proceedings; Litigation. There are no existing proceedings, or, to the best
of Seller's knowledge, any threatened proceedings that would affect the Property or the
use thereof by Buyer, either administrative or judicial, and there is no litigation or
condemnation proceeding pending, or, to the best of Seller's knowledge, threatened, that
would affect the Property or the use thereof by Buyer. Seller has received no notice of
any contemplated special assessments against the Property, and there is presently no real
estate tax protest or similar tax abatement proceeding pending with respect to the
Property.
(g)Other Agreements. There is no note, mortgage, security agreement, or
other agreement affecting the Property that requires the consent of any party ( or Seller
shall provide such consent if necessary at its expense) or requires a change in the terms
and conditions of the underlying financing as a result of the sale contemplated by this
Agreement, and that there are no defaults existing in any such agreements affecting the
Property.
(h)Hazardous Materials. Seller has not stored, released, disposed of, nor
permitted any other party to store, release or dispose of, and to the best of Seller's
knowledge there has not been any storage, release or disposal of, any Hazardous Material
in, on, about or from the Property, and Seller has no knowledge of the existence in, on or
about the Property of any Hazardous Material. The term "Hazardous Materials" means
asbestos, urea formaldehyde, polychlorinated biphenyls, nuclear fuel or materials,
radioactive materials, explosives, known carcinogens, petroleum products and by
products, and any pollutant, contaminant, chemical, material or substance defined as
hazardous or as a pollutant or a contaminant in, or the release or disposal of which is
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regulated by, any federal, state, county, municipal, local or other statute, ordinance or
regulation that relates to or deals with human health or the environment, including,
without limitation, all regulations promulgated by a regulatory body pursuant to any such
statute, ordinance, or regulation, including, but not limited to, the Comprehensive
Environmental Response and Liability Act of 1980 ("CERCLA"), 42 U.S.C. § 9601, as
amended.
(i)Agents and Employees. No employees or management or maintenance
personnel or agents employed in connection with operating of the Property have the right
to continue such employment after the Closing Date.
(j) Wells; Storage Tanks. There are no wells or individual sewage treatment
systems located on the Property, and there are no underground or above ground storage
tanks in, on or about the Property.
(k)Documents True and Correct. All documents delivered by Seller to Buyer
in connection with the Property are true, complete and correct in all material respects.
(1)Private Restrictions. To the best of Seller's knowledge and except as
disclosed in the Title Commitment, there are no and will be no private restrictions that
affect the uses that may be made of the Property by Buyer, including but not limited to
agreements to subject architectural plans to an association or other group; and provisions
requiring the joining with others in group actions.
(m)Beneficial Easements, Licenses and Permits. There are no beneficial
easements, licenses or permits that are owned or possessed by Seller that are necessary or
useful for the operation of the Property that are not being conveyed pursuant to this
Agreement.
(n)Methamphetamine Disclosure. To the best of Seller's knowledge,
methamphetamine production has not occurred on the Property.
( o)Property Condition. The Property is in fair condition and repair and is free
of structural defects.
Seller shall indemnify Buyer, its successors and assigns, against, and shall hold Buyer, its
successors and assigns harmless from, any expenses or damages, including reasonable attorneys'
fees, that Buyer incurs because of the breach of any of the above representations and warranties,
whether such breach is discovered before or after Closing. Each of the representations and
warranties herein contained shall survive the closing or the early termination or the merger of this
Agreement. Consummation of this Agreement by Buyer with knowledge of any such breach by
Seller will not constitute a waiver or release by Buyer of any claims due to such breach. Seller's
representations and warranties contained in this Section must be accurate in all material respects
now and on the Closing Date as if made on the Closing Date, and Seller shall deliver an Update
Certificate to Buyer at Closing.
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13.. Representations and Warranties by Buyer. Buyer represents and warrants to Seller
that Buyer has the requisite power and authority to enter into this Agreement and Buyer's
Closing Documents signed by it; such documents have been duly authorized by all necessary
action on the part of Buyer and have been duly executed and delivered; that the execution,
delivery and performance by Buyer of such documents do not conflict with or result in violation
of any judgment, order or decree of any court or arbiter to which Buyer is a party; such
documents are valid and binding obligations of Buyer, and are enforceable in accordance with
their terms. Buyer will indemnify Seller, its successors and assigns, against, and will hold Seller,
its successors and assigns, harmless from, any expenses or damages, including reasonable
attorneys' fees, that Seller incurs because of the breach of any of the above representations and
warranties, whether such breach is discovered before or after Closing. Each of the
representations and warranties herein contained shall survive the closing or the early termination
or the merger of this Agreement. Consummation of this Agreement by Seller with knowledge of
any such breach by Buyer will not constitute a waiver or release by Seller of any claims due to
such breach.
14.. Casualty; Condemnation.
( a)Casualty. The risk of loss from any casualty shall remain with Seller until
the Closing, and Seller agrees to maintain insurance on the Property in the form and
amount in place on the Effective Date through the Closing. If, prior to the Closing Date,
any casualty occurs with respect to all or any material portion of the Property, Seller shall
immediately give notice to Buyer of such fact and at Buyer's option (to be exercised
within 30 days after Seller's notice), as Buyer's remedy, either (i) this Agreement shall
terminate and the Earnest Money returned to Buyer, in which event neither party will
have further obligations under this Agreement, or (ii) the Purchase Price shall be reduced
by an amount equal to the estimated cost to repair the Property less any insurance
proceeds paid to Buyer at Closing. If Buyer does not give such notice within 30 days,
then there shall be no reduction in the Purchase Price, and Seller shall pay to Buyer on the
Closing Date all of such insurance proceeds or, if the amount of insurance proceeds is not
yet known, Seller shall (i) pay to Buyer on the Closing Date a reasonable estimate of such
insurance proceeds, (ii) assign to Buyer on the Closing Date all of Seller's right, title and
interest in and to any remaining insurance proceeds and obtain any necessary consents of
Seller's lenders and insurance agent to such assignment, and (iii) use its best efforts to
ensure that Buyer receives such remaining insurance proceeds, including, but not limited
to, working directly with its insurer to obtain the remaining insurance proceeds.
(b)Condemnation. If, prior to the Closing Date, any eminent domain
proceedings are commenced against all or any portion of the Property, Seller shall
immediately give notice to Buyer of such fact and at Buyer's option (to be exercised
within 30 days after Seller's notice), as Buyer's sole remedy, this Agreement shall
terminate and the Earnest Money returned to Buyer, in which event neither party will
have further obligations under this Agreement. If Buyer does not give such notice within
30 days, then there shall be no reduction in the Purchase Price, and Seller shall assign to
Buyer on the Closing Date all of Seller's right, title and interest in and to any award made
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or to be made in the condemnation proceedings. Prior to the Closing Date, Seller shall
not designate counsel, appear in, or otherwise act with respect to the condemnation
proceedings without Buyer's prior written consent, which consent shall not be delayed or
withheld unreasonably.
15.. Brokers' Commission. Neither party is represented by a broker in connection with
the purchase transaction contemplated herein.
16.. Survival. All of the terms of this Agreement will survive and be enforceable after
the Closing and delivery of the Deed.
17.. Notices. Any notice required or permitted to be given by any party to the other
shall be given in writing, and shall be (i) hand delivered to the receiving party ( or any officer of
such party), or (ii) mailed by United States registered or certified mail, return receipt requested,
postage prepaid, (iii) properly deposited with a nationally recognized, reputable overnight
courier, properly addressed as follows; or (iv) emailed:
Ifto Seller:
Ifto Buyer:
Ifto Title:
Company
The City of Columbia Heights
590 40th A venue NE
Columbia Heights, MN 55421
Attn: ------------Email address: --------
Reuter Walton Development, LLC
1710 West Lake Street, Suite 100
Minneapolis, MN 55408
Attn: Kyle Brasser, Developer
With a copy to: Anne Stephenson, General Counsel
Email address: kbrasser@reute1walton.com
a1me@reute1walton.com
First American Title Insurance Company
801 Nicollet Mall, Suite 1900
Minneapolis, MN 55402
Tel: (612) 305-2005
Attn: Jim Erickson
Email address: jerickson@firstam.com
Notices shall be deemed effective on the date of receipt. For purposes of this Agreement, any
notice shall be deemed to be received on the same day as sent with respect to hand delivery or e
mail delivery, shall be deemed to be received on the first business day after the date sent with
respect to delivery by overnight courier, and shall be deemed to be received on the third business
day after the date sent with respect to delivery by mail. Any party may change its address for the
service of notice by giving written notice of such change to the other party, in any manner above
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specified, at least 10 days prior to the effective date of such change. Any notice delivered under
this Section shall also be delivered by e mail to the e mail address of the applicable party.
18.. Entire Agreement. This written Agreement constitutes the complete agreement
between the parties and supersedes any and all other oral or written agreements, negotiations,
understandings and representations between the parties regarding the Property. There are no
verbal or written side agreements that change this Agreement.
19.. Amendment; Waiver. No amendment of this Agreement, and no waiver of any
provision of this Agreement, shall be effective unless set forth in a writing expressing the intent
to so amend or waive, and the exact nature of such amendment or waiver, and signed by all
parties (in the case of amendment) or the waiving party (in the case of waiver). No waiver of a
right in any one instance shall operate as a waiver of any other right or as a waiver of such right
in a later or separate instance.
20.. Binding Effect. This Agreement binds and benefits the parties and their
successors and assigns.
21.Controlling Law. This Agreement has been made under the laws of the State of
Minnesota, and such laws will control its interpretation and effect.
22.Assignment. Buyer may assign its rights under this Agreement without the
consent of Seller to an entity formed by Buyer to acquire title to the Property. Seller may not
assign its rights under this Agreement without Buyer's consent.
23.Remedies. If Buyer defaults under this Agreement, Seller shall have the right to
terminate this Agreement by giving 30 days advance written notice to Buyer in the manner
required by this Agreement. If Buyer fails to cure such default within 30 days of the date of such
notice, this Agreement will terminate and Seller shall be entitled to receive the Earnest Money.
The termination of this Agreement and the receipt of the Earnest Money will be the sole remedies
available to Seller for such default by Buyer, and Buyer will not be liable for damages or specific
performance. If Seller defaults under this Agreement, Buyer's sole options are to either bring an
action for specific performance or to terminate this Agreement upon written notice to Seller and
receive the Earnest Money.
24.Counterparts. For the convenience of the parties, any number of counterparts
hereof may be executed and each such executed counterpart shall be deemed an original, but all
such counterparts together shall constitute one and the same Agreement.
25.Time of the Essence. Time is of the essence with respect to all dates, deadlines
and other terms and conditions under this Agreement.
[The remainder of this page has been left blank intentionally. Signature page follows.]
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Seller and Buyer have executed this Agreement as of the date first written above.
SELLER:
THE CITY OF COLUMBIA HEIGHTS
By: ilii�K �M,5!± Donna Schmitt, Mayor
BUYER:
REUTER WALTON DEVELOPMENT, LLC
�--_-_-_-_-:_-_-:::::-:.-"'-------By:-�-=-----"'-������:::_-_-_-_-___ _ Nicholas Walton, President
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EXHIBIT A
Property Depiction
ACKNOWLEDGEMENT OF TITLE COMPANY
The Title Company hereby accepts the Earnest Money in the amount of $10,000 from
Buyer and agrees to deposit and disburse the Earnest Money in accordance with this Agreement.
ACKNOWLEDGED AND AGREED TO BY:
FIRST AMERICAN TITLE INSURANCE COMP ANY
By: ____________ _
Its: -------------
Date: -----------
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