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City Acquisition of 3205 143rd StreetCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION City Council Meeting Date March 15, 2005 AGENDA ITEM: City Acquisition of 3205 143 Street AGENDA SECTION: Old Business PREPARED BY: Kim Lindquist, Deputy Director AGEJ4E ATTACHMENTS: Draft Resolution, Purchase Agreement, Property Lease, Contract for Deed APPROVED BY: RECOMMENDED ACTION: Adopt Draft Resolution for City Acquisition of Property Located at 3205 143 Street ACTION: BACKGROUND On October 5, 2004 the Port Authority discussed purchase of several parcels in the Downtown area, including the property at 3205 143 Street The Port Authority directed staff to continue investigating purchase of the property On March 1, 2005 the Port Authority reviewed the purchase agreement documents They expressed concern about the 8% interest rate proposed in the agreement Additionally, there was a question about the relocation payment The Port Authority approved the resolution of supporting Council acquisition of the property, although they asked for more information on those two topics The Council continued the item to permit staff time to obtain additional information DISCUSSION Staff spoke with Dan Wilson, Wilson Development Services, regarding the two questions A memo is attached which provides some information Regarding the interest rate, Mr Olson has agreed to reduce the terms to 6% rather than the 8% initially found within the agreement One reason for attaching the interest rate is in recognition of the increase in the property's value over the time from when the initial payment is made and the final payment is made in June 2006 In regard to the relocation payment, the $20,000 payment is a fixed payment, often used for businesses that go out of business Staff understands that the purchase of the property is prompting closing of the daycare The City's purchase will displace the business and therefore it is prudent to pay the relocation costs RECOMMENDATION Approve the attached draft resolution CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2005 A RESOLUTION APPROVING THE PURCHASE OF 3205143r STREET WEST FOR DOWNTOWN ROSEMOUNT REDEVELOPMENT WHEREAS, the City Council of the City of Rosemount intends to purchase residential property owned by Jeffrey A Olsen and Claire M Olsen located at 3205 143 Street West, Rosemount, legally described as Lot 200, Block 27, Auditors Subdivision No. 1. WHEREAS, the City has been discussing acquisition as part of the Downtown Redevelopment process, and WHEREAS, the property does not meet the blight test and therefore is not included in the Downtown/Brockway TIF District, and WHEREAS, the land use on the property as a commercial daycare is a non conforming use; and WHEREAS, the property serves as a gateway to Rosemount's Downtown, and WHEREAS, the City's purchase permits removal of a non conformity, and WHEREAS, the City will use the property as open space and as part of the Downtown redevelopment, and WHEREAS, the City will purchase the property as contract for deed to permit the owner to use the property until June, 2006, and WHEREAS, the City will use general fund reserves to pay for the purchase of the property, and WHEREAS, the Rosemount Port Authority passed a resolution in support of the City's acquisition of the property on March 1, 2005, NOW, THEREFORE, BE IT RESOLVED, the Council of the City of Rosemount hereby approves the purchase of residential property located at 3205 143r Street West, Rosemount, subject to 1 Execution of the Purchase Agreement by and between the City of Rosemount and Jeffrey A Olsen and Claire M Olsen. 2 Execution of the Contract for Deed by and between the City of Rosemount and Jeffrey A Olsen and Claire M Olsen 3. Execution of the Lease Buy Back Agreement by and between the City of Rosemount and Jeffrey A Olsen and Claire M. Olsen RESOLUTION 2005- ADOPTED this 15th day of March, 2005 by the City Council of the City of Rosemount. William H Droste, Mayor ATTEST: Linda Jentink, City Clerk Motion by Second by: Voted in favor Voted against: Member absent: PROPERTY LEASE This is a Lease It is a legal agreement between the Tenant and the Landlord to rent the Property described below The word Landlord as used in this Lease means Rosemount Port Authority, a public body corporate and politic under the laws of the State of Minnesota, and the Landlord's address is 2875 145 Street West, Rosemount, MN 55068 The word Tenant as used in this Lease means Claire M Olsen d/b /a T C Daycare and Tenant's address is 33205 143` Street, Rosemount, MN 55068. This Lease is a legal contract that can be enforced in court against the Landlord or the Tenant if either one of them does not comply with this Lease. 1. Description of Property. The address of the Property is 3205 143` Street West, Rosemount, MN 55068 2. Term of Lease. This Lease is for a term of one years from the day of 2005, at 12 00 o'clock, a in and ending June 30, 2006 at 12 00 a in unless sooner terminated by written agreement of the parties or operation of law Tenant may terminate this lease upon 30 days notice 3. Rent. There is no rent due under this Lease. 4. Security Deposit. The Tenant has given the Landlord no security deposit. 5. Quiet Enjoyment. If Tenant complies with all terms of this Lease, Tenant may use the Property for the term of this Lease 6. Use of Property. The Property must be used only as a daycare facility operated by Tenant, and no other purpose The Tenant may not use the Property for any unlawful activity In particular, Tenant agrees that (a) Tenant will not unlawfully allow controlled substances in the Property, and (b) the property will not be used by the Tenant or others acting under his or her control to manufacture, sell, give away, barter deliver, exchange, distribute, or possess a controlled substance in violation of any local. state, or federal law, including Minn Stat Chapter 152. 7. Maintenance and Repair. a. By Landlord. Landlord makes no representation that the Property is fit for use as a daycare facility b. By Tenant. Tenant promises, at Tenant's expense, to make all repairs and eliminate any violation of health and safety laws Tenant shall comply with all the sanitary laws affecting the cleanliness, occupancy and preservation of the Property, except where the Landlord is required by law to comply with the sanitary laws (see Minnesota Statute, Section 504 18). CBR- 258725vi RS230 -36 8. Alterations. Tenant must obtain Landlord's prior written consent to install any paneling, flooring, or partitions to make alterations or to paint or wallpaper any portion of the Property Tenant must not change the heating, electrical, plumbing, ventilation or air conditioning systems without the prior written consent of the Landlord 9. Damage to the Property. If the Property is damaged or destroyed, Landlord may terminate this Lease immediately and may decide not to rebuild or repair the Property, in which case this lease is terminated and neither party has any further obligation to the other 10. Insurance. Tenant shall maintain a policy of renter's insurance on personal property at their own expense Tenant shall also maintain a policy of liability insurance in the amount of not less than Tenant's present pohcy limits with respect to injury or death to a single person, and said policy of insurance shall name Landlord as an additional insured. Tenant shall indemnify and hold harmless Landlord from any claim or damage to person or property arising out of activities by Tenants or Tenants' invitees on the Property 11. Utilities. Tenant shall pay for all utilities provided to the Property during the term of this Lease. 12. Right of Entry. Landlord and Landlord's agents may enter the Property at reasonable hours to repair or inspect the Property and perform any work that Landlord decides is necessary 13. Assignment and Subletting. Tenant may not assign this Lease, lease the Property to anyone else (sublet), sell this Lease or permit any other person to use the Property without the prior written consent of the Landlord If Tenant does so. Landlord may terminate this Lease Any assignment or sublease made without Landlord's written consent will not be effective Tenant must get Landlord's permission each time Tenant wants to assign or sublet Landlord's permission is legally effective only for that specific assignment or sublease 14. Surrender of Premises. Tenant shall move out of the Property upon termination of this Lease in accordance with Section 2 hereof 15. Default. If Tenant violates any term of this Lease, Landlord may terminate this Lease. If Tenant does not move out, Landlord may bring an eviction action If Tenant violates a term of this Lease and Landlord does not terminate this Lease or evict Tenant, Landlord may still terminate this Lease and evict Tenant for any other violation of this Lease If contraband or a controlled substance manufactured, distributed, or acquired in violation of Minnesota law is seized in the Property or on the property on which the Property is located incident to a lawful search or arrest, and if Tenant has no defense under Minnesota Statutes 609.5317, Tenant shall have no further right to possession of the Property, and Landlord may bring an eviction action against Tenant 16. Heirs and Assigns. The terms of this Lease apply to the Tenant and Landlord and any heirs, legal representatives, successors and assigns of Tenant or Landlord. CBR- 258725vl R5230 -36 I= LANDLORD: TENANT: Rosemount City Council By City Administrator Claire M. Olsen d /b /a T C Daycare CBR- 258125v1 RS230 -36 PURCHASE AGREEMENT 1. PARTIES. This Purchase Agreement is made this day of 2005 by and between Jeffrey A Olsen and Claire M Olsen, husband and wife "Seller and Rosemount Port Authority, a public body corporate and politic under the laws of the State of Minnesota "Buyer 2. SALE OF PROPERTY. Seller is the owner of that certain real estate (the "Property located at 3205 143` Street West in the City of Rosemount, Dakota County, Minnesota and legally described as follows. Lot 200, Block 27, Auditors Subdivision No. 1. 3. OFFER/ACCEPTANCE. In consideration of the mutual agreements herein contained, Buyer offers and agrees to purchase and Seller agrees to sell and hereby grants to Buyer the exclusive right to purchase the Property and all improvements thereon, together with all appurtenances, including, but not limited to, plant, shrubs, trees, and grass 4. PERSONAL PROPERTY INCLUDED IN SALE: There are no items of personal property or fixtures included in the sale 5. PURCHASE PRICE AND TERMS: A. PURCHASE PRICE: The total Purchase Price for the real estate included in this sale is One Hundred Seventy Thousand and No /100ths Dollars ($170,000 00) B. TERMS: (1): AMOUNT DUE SELLER Buyer agrees to pay by check on the Closing Date One Hundred Thousand and no /100 Dollars ($100,000), according to the terms of this Purchase Agreement (2): CONTRACT FOR DEED The balance of $70,000 shall be payable according to the terms and conditions of a Contract for Deed payable in full on June 30, 2006 together with interest at the rate of six percent compounded annually The form of the Contract for Deed is attached hereto as Exhibit A (3): ASSUMPTION OF EXISTING INDEBTEDNESS The Buyer, in its discretion and in partial payment of the purchase price, may, to the extent assumable, assume or take title subject to any existing indebtedness encumbering the Property, in which case the cash to be paid at the time of closing shall be reduced by the then remaining indebtedness. (4): DEED /MARKETABLE TITLE Subject to performance of the terms of the Contract for Deed by Buyer, Seller agrees to execute CBR- 258715vl 1 RS230 -36 and deliver a Warranty Deed conveying marketable title to the Property to Buyer, subject only to the following exceptions a Building and zoning laws, ordinances, state and federal regulations b Reservation of minerals or mineral rights to the State of Minnesota, if any c Public utility and drainage easements of record d. Liens, encumbrances, adverse claims or other matters that Buyers have created, suffered or permitted to accrue after the date of the Contract for Deed (5): DOCUMENTS TO BE DELIVERED AT CLOSING BY SELLER In addition to the Contract for Deed required at paragraph 5B(2) above, Seller shall deliver to the Buyer a. Standard form Affidavit of Seller. b. Abstract of title, if available C. A "bring- down" certificate, certifying that all of the warranties made by Sellers in this Purchase Agreement remain true as of the date of closing d. Certificate that Seller is not a foreign national e Well disclosure certificate, if required, or, if there is no well on the Subject Property, the Warranty Deed given pursuant to paragraph 4 above must include the following statement "The Seller certifies that the seller does not know of any wells on the described real property f. Such other documents as may be reasonably required by Buyer's title examiner or title insurance company 6. CONTINGENCIES. Buyer's obligation to buy is contingent upon the following a Buyer's determination of marketable title pursuant to paragraph 11 of this Agreement, and b. Buyer's determination, in its sole discretion, that the results of the environmental investigation under paragraph 8 of this Agreement are satisfactory to Buyer CBR- 258715vl 2 RS230 -36 Buyer shall have until date of closing to remove the foregoing contingencies The contingencies are solely for the benefit of Buyer and may be waived by Buyer If the contingencies are duly satisfied or waived, then the Buyer and Seller shall proceed to close the transaction as contemplated herein If, however, one or more contingencies is not satisfied, or is not satisfied on time, and is not waived, this Purchase Agreement shall thereupon be void, and Buyer and Seller shall execute and deliver to each other the termination of this purchase agreement As a contingent purchase agreement, the termination of this agreement is not required pursuant to Minnesota Statutes, Section 559 21, et se q. 7. CLOSING DATE. The closing of the sale of the Property shall take place on or before 2005 The closing shall take place at Rosemount City Hall 2875 145 Stre`� et West, Rosemount, Minnesota or a location mutually agreed upon by the parties 8. ENVIRONMENTAL INSPECTION. Buyer and its agents shall have the right to enter upon the Property after the date of this purchase agreement for the purpose of inspecting the Property and conducting such environmental examination and tests as Buyer deems necessary Buyer agrees to mdemmfy the Seller against any liens, claims, losses, or damage occasioned by Buyer's exercise of its right to enter and work upon the Property Buyer agrees to provide Seller with a copy of any report prepared as a result of such examination and tests 9. REAL ESTATE TAXES. A Seller will pay at or prior to closing all real estate taxes due and payable in 2004 and prior years on the Property and real estate taxes payable in 2005 prorated to date of closing. If the amount of real estate taxes due and payable in 2005 is not yet available from Dakota County, the amount prorated shall be based on the amount of 2004 real estate taxes B. Buyer shall be responsible for its prorated share of real estate taxes due and payable in 2005 and all real estate taxes due and payable thereafter on the Property. 10. SPECIAL ASSESSMENTS. A. Seller shall pay at or prior to closing the balance of all special assessments levied prior to the date of this Purchase Agreement, including assessments certified for payment with 2005 real estate taxes B. Buyer shall assume all special assessments levied on or after the date of this Purchase Agreement, except that Seller shall at all times be responsible to pay special assessment, if any, for delinquent sewer or water bills, removal of diseased trees, snow removal, or other current services provided to the Property by the assessing authority while the Seller is in possession of the Property. C. Sellers shall pay any deferred real estate taxes or special assessments, payment of which is required as a result of the closing of this sale csR•258715v1 3 RS230 -36 11. MARKETABILITY OF TITLE. The Sellers, within a reasonable time after acceptance of this Purchase Agreement, shall furnish to Buyer an abstract of title or registered property abstract, certified to date to include proper searches covering bankruptcies, state and federal judgment and liens and levied and pending special assessments Buyer shall have ten (10) business days after receipt of the abstract to examine the same and to deliver written objections to title, if any, to Sellers Sellers shall have until the Closing Date (or such later date as the parties may agree upon) to make title marketable, at the Seller's cost In the event that title to the Property cannot be made marketable or is not made marketable by the Sellers by the Closing Date, then, at the option of the Buyer: this Purchase Agreement shall be null and void, neither part shall be liable for damages hereunder to the other, and Buyer and Sellers agree to sign a cancellation of this Purchase Agreement Buyer agrees to accept an owner's title policy in the full amount of the purchase price in lieu of an abstract of title if the property is subject to a master abstract or if no abstract of title is in Seller's possession or control If Buyer is to receive an owner's title policy, the title examination period will commence upon Buyer's receipt of a current title insurance commitment 12. CLOSING COSTS AND RELATED ITEMS. The Sellers shall be responsible for the following costs (a) recording fees and conservation fees for all instruments required to establish marketable title in Sellers Buyer shall be responsible for the payment of the following costs (1) recording fees required to be paid in connection with the warranty deed to be given by Sellers, (2) closing fee, if any, (3) deed transfer taxes and conservation fees required to be paid in connection with the warranty deed to be given by Sellers, (4) the cost of the registered property abstract or abstract or, if a title policy is obtained, the tract check and name search fees for the commitment of title insurance, (5) the title insurance premium and service charge for the commitment of title insurance, if the title policy is being provided Each party shall be responsible for its own attorneys' fees and costs 13. POSSESSION. Buyer shall allow Sellers to occupy the Property through June 30, 2006 pursuant to the terms of the Lease Agreement attached hereto as Exhibit B Seller shall deliver to Buyer possession of the Property on or before June 30, 2006 14. REMOVAL OF HAZARDOUS MATERIAL Seller, prior to vacation of the Property, shall remove all substances not a part of the building structure that, under state or federal law, must be disposed of at an approved disposal facility This includes, but is not limited to, used oil. paints, solvents, fertilizers, poisons, and the like 15. DAMAGES TO REAL PROPERTY. If the Property is damaged prior to closing, Buyer may rescind this Purchase Agreement by notice to Seller within twenty -one (21) days after Seller notifies Buyer of such damage, during which 21 -day period Buyer may inspect the real property 16. DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM Sellers have no knowledge as to the existence, location, or status of any sewage treatment system(s) on or serving the Property. 17. CONDITION OF SUBSOIL AND GROUND WATER. Seller hereby warrants to Buyer that during the time the Seller has owned the Property there have been no acts or occurrences upon the Property of which Seller had knowledge that have caused or could cBR- 258715v] 4 Rs230 -36 cause impurities in the subsoil or ground water of the Property or other adjacent properties This warranty shall survive the closing of this transaction Seller agrees to mdemnify and hold harmless Buyer from any and all claims, causes of action, damages, losses, or costs (including reasonable attorney's fees) relating to impurities in the subsoil or groundwater of the Property or other adjacent properties that arse from or are caused by acts or occurrences upon the Property that 1) occurred prior to Buyer taking possession of the same, and 2) were caused by Seller or were known by Seller Seller's agreement to indemnify Buyer shall not merge into the deed and shall survive the closing of this transaction 18. WELL DISCLOSURE. Sellers have no knowledge as to the existence, location, or status of any well(s) on or serving the Property, or A Well Disclosure Statement accompanies this Purchase Agreement. 19. SELLER'S WARRANTIES. Seller warrants that buildings are entirely within the boundary lines of the property Seller warrants that there is a right of access to the real property from a public right -of -way. Seller warrants that there has been no labor or material furnished to the property for which payment has not been made Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the Property These warranties shall survive the closing of this transaction Buyer shall be responsible for the demolition and removal of any buildings or improvements, including any well(s) or sewage treatment systems located on the Property Except as represented herein Seller makes no representations as to the soundness of the structure or its suitability as a dwelling Prior to closing Buyer will notify Seller of any breach known to Buyer and Seller will be given a reasonable opportunity to remedy the breach 20. 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, provided, however, that any claim by Buyer for a breach of any representation or warranty made herein must be asserted by a lawsuit commenced within three (3) years of the date of closing or otherwise be forever barred 21. RELOCATION BENEFITS. Seller has agreed to accept payment of $20,000 for all relocation benefits upon vacation of the Property. 22. NO BROKER INVOLVED The Sellers and Buyer 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 or finder's fee in connection with negotiations for the sale of the Property 23. ENTIRE AGREEMENT; AMENDMENTS. This Purchase Agreement constitutes the entire agreement between the parties, and no other agreement prior to this Purchase Agreement or contemporaneous herewith shall be effective except as expressly set forth or incorporated herein Any purported amendment shall not be effective unless it shall be set forth in writing and executed by both parties or their respective successors or assigns CBR- 258715A 5 RS230 -36 24. BINDING EFFECT; ASSIGNMENT. This Purchase Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors and assigns Buyer shall not assign its rights and interest hereunder without notice to Seller 25. NOTICE. Any notice, demand, request or other communication which may or shall be given or served by the parties shall be deemed to have been given or served on the date the same is deposited in the United States Mail, registered or certified, postage prepaid and addressed as follows a. If to Seller Jeffery A Olsen and Claire M Olsen 3205 143` Street Rosemount, MN 55068 b If to Buyer: City of Rosemount ATTN Kim Lindquist 2875 145'" Street West Rosemount, MN 55068 4941 26. SPECIFIC PERFORMANCE. This Purchase Agreement may be specifically enforced by the parties, provided that any action for specific enforcement is brought within six months after the date of the alleged breach This paragraph is not intended to create an exclusive remedy for breach of this agreement, the parties reserve all other remedies available at law or in equity CBR- 258715v1 6 R8230 -36 IN WITNESS WHEREOF, the parties have executed this agreement as of the date written above This Document drafted by Kennedy Graven, Chartered 470 US Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (612)337 -9300 SELLER Jeffrey A. Olsen Claire M. Olsen ROSEMOUNT CITY COUNCIL By Its Mayor By Its City Clerk CBR- 258715v1 RS230 -36 tvj5lT 8 Property Lease .-It cal L ON IPMENT SERVICES March 3, 2005 MEMO TO: Kim Lindquist Community Development Director Catherine Roeklitz Kennedy Graven FROM. Dan Wilson Development Services RE: Jeff Olson 3205 —143" Street West Acquisition/Relocation Settlement Question Interest Rate OFFICE 952.448.4630 800 448.4630 FAX 952.448.4676 WILSON DEV510@AOL COM 510 CHESTNUT STREET, SUITE 200 CHASKA, MINNESOTA 55318 Mr Olson has agreed to reduce the Contract- For -Deed interest pate from 8% to 6 Business Relocation Eligibility As a lawful occupant, the Daycare business is considered a "displaced person As such, they are entitled to relocation assistance. A business that chooses to discontinue operations is entitled to relocation benefits The fixed payment, payment in lieu of actual expenses, is a relocation alternative to displaces specifically addressing those going out of business They arc entitled to a one time maximum payment of $20,000 With the business as an eligible displacee it is important that we include or address the business relocation in the total settlement Due to the above we cannot deny them eligibility and benefits. Hence, the fixed payment fulfills the City's responsibility to provide the displacce with their rights and benefits `03/03/2005 15.26 9524484676 WILSON DEVELOPMENT PAGE 01 To not address relocation now leaves the City vulnerable to a fitturc claim. 03/03/2005 15:26 9524484676 WILSON DEVELOPMENT PAGE 02 Settlement Neeodations It is important to understand that I did not consider the relocation as an add on to a fixed settlement figure Rather it was a distn but) on of the settlement between acquisition and relocation I used this approach because of the voluntary nature of this transaction Please call with any questions. 51ar -07 -05 10:38 From Kennedy Gravan +6123378310 T -500 P 002/005 F -B85 Form Nn, 53 -M Mumnam Uniform Convcyan utg Blunk. (20111)) CONTRACT FOR DFFD Individual SOILI No delinquent ®x11 and mitilci Coutmd, Certifrune of Real Emil ValuC hlcd not required CfrTaflCne o(Rc tl [z.3tale Value Nu (Datr) County Auditor by. Deputy Dam TIES CONTRACT FOR DFFD (]he -Contract") n made on The above time b daft S ys Osrlsmd Clat M Ol h cha d d T Seller (whcTher one or mote), and Crty_ofRosommnt, a municipal eoTOrffimat under the laws of State ofMitlaasou Purchaer (whcnccr me or tihue) i check boa f] if joint tcmney). Selle, and Purchaser agna to the following temu: 1. PROPERTY DESCRIPTION Seller hereby ills, and Purdnser hereby buys real property in flat m., County. Mmncsnn desciibod as follow¢ Lott 200, Block 27, Audnon Subdrvramn No I Together with all h nmthtamcnts and appuncnincas belonging thereto (the Prnpeny Unlehh otherwise ¢peetficd. Seller hereby delrverc pus essmn of the Property io Purehawr on the date hereof Sella, check ipphwbit boa the Seller certifies that the Seller does not know of any wet, on the desenbed real Property A well rhsclo,um cemficate accompan.es ,his document 1 .sin famthar vmh the property dcncribcd in this inhm mount and i comfy Tbat the stmees laid number of wells oil the described real property have 1101,hmZed since the last prcwtouvly bled well dLSclosura ecnlhwle 2 T)T( R Scher warrants that title to the Prnpcay ,u on the ddte of this Comracc .LiNect only to the following exceptions, (a) Covenants condmat.. reninction, (widiout effective loeFL,wnr prov,hmas) and kclarm,om of record, of my, (bl Few, varaon of minerals or mineral nghLS by the Smie of Minnesota, of any, (c) Utility and dminage easenamis which d0 nat pt.rt.m with preicat tnlprovcni ni (d) Appha,ble Luws ordinances and rcculauons Ti 1c) ih, hen of real estate Taacs an�mveallmettcrvf- +petre f l sese ImQi Tl payableby Purchaser pursuant to paragraph 6 of then Corn and (f) The following lienh ur encurabvanece Lsemomts of record thai do not interfere with Purchaser's ra)oynien of dw Property T DCLIVERY OF DEED AND RV IOhM L Oir 7711.E Upon PuMtar x's full Petformaanc of This COVIML Seller shall• (a) FaLeule, ,tLknowledge and deliver to Purchaser a W,irrimty Ik cd in mcordahle form eanveyrng nuldootoble tide to The Properly To Ptixhdnef, subject only in The following exapuoua (i) Those exceptions referred to in paragraph 2(a) (b) (y (d) and (e) of this Comoult, (n) Lienh rncurab=CM ndvene CI,,mh or other maters whtd created. auf[WW mpmtaned to acme after The data of Out Comrmt, and (u1) The Following lien, or cnoumbranxr Essemrnrc of record t1m do not finerfcrc wnh Puchdi es mloyfecan of the P (b) Utlwur W Purchaver dle abstract of title to the PrnpenY without further asegsmn. TO till Lxmot requited by the Q(IIL1101 dyl[COIC01111 any) Oe[weell Seller and Pufeh1W Mar -07 -05 1018 From Kennedy Graven +6123378310 T -500 P 003/005 F-885 a PURCHASE PRICE.. Purchaser shall pay to Seft at the sum of One Hundred Smquly Thousand D Mary I ry tlVV tN as and for the purchase price (the Puerhage Poem") for the Properly, payable as follows. sloo,000 00 cash at closing, thenmerpt ofwhichishaabya knowledged. 570,000 00 together with interest a the rare of six percent (6%) per anum, Compounded annually on June 30, 2006 5 PREPAYMENT Unlem mherwise provided in this Contract, Purchaser shall ham the right to fully or partially prepay this Contract at any tune without penalty Any Partial prepayment shall be applied fast to payment of amounts then due under thra Contract, including unpaid accrued interest, and the balance shall be applied to the principal Installments to be paid in the mvme order of their mnNrity. Partial prepaynrncnt shall not postpone the due date of the mmallmem s to be paid pursuant to thnq Contract or change the ame tort of such hmtallmerim 6 REAL ESTAM TAXES AND ASSPSSMENIS Real csete coxes which are due and payable in the year in wtuch tlus Contract Li dated shall be paid as fol nuns Pr rjm4 as ofthe dam hereof Special assesameno lined liner to the dare of the Purchase Age== between Seller and Purchaser will be paid by Seller and Seller warrnnK that they have been paid m full Special asse^smrnrs levied on or after said date will be paid by Purchaser Pmchdser shadff pay, before penalty accrues, all real mate razes and installments of apecnd assessments assessed against the Property which an due and payable in all subsequent years Seller warrant drat the real estatn taxes and i nsuffln arts of special amessmcnts which were due and payable in the years preceding the year is which this Contract is dated are paid an full If to Property rs subject to a recorded dee4vadop pmwilirig for aSgesghnentq on be Imed agauut the Property by any owners' assoen- non, Purchaser shall promptly pay when due. all assessments unposed by the owners' association or other gm cmmg body as required by The provisions of the declination m other related documcmw 7 PROPF-RIY INSURANCE. (a) INSURED RJSRS AND AMOUNTS Pmcl axir shaft keep all buildings, improvements and frxmres now or later located on or a pan of the Property insured against loss by fire, lhghmmg and such other perils as are included In d standard all- nsr endorsement. and against loss or damage by all other risks and havatds covered by a aandard extended coverage insurance policy, including, without lunation, vandalnut, malhaous mischief, burglary, theft and, if applaeable, steam bet- a =plonivn Such insurance ghsn be m an amount no Ices than the full replacement Cost of the buildings, improvemreow and fix==, without deduction for pby%cal depreaauon If any of die buildings, improvements or femurs sre located in a federally designated flood prone area, and if flood insurance u avahvblc for that area, Purchaser shall procure and mum- mm flood insurance m amount reasonably sauafactoay to Seller (b) OTHER TERMS The insurance polity shall commit a loss payable clause tti favor of Seller which provides that SeOer's right to recover under the insurance shall rat be uupatiod by any amt or omissions of Purchaser or Seller, and that Seller shall otherwise be afforded are rights and privileges cusmmarily provided a mortgagee under the so-called standard mort- gage clause (c) NOTICE OF DAMAGE In roe event of damage to the Property by foe or the casualty, Pmektxr shall promptly give nonce of such damage m Seller and the insurance company S. DAMAGETOTHEPROPEWrY (a) APPLICATION OF INSURANCE PROCEEDS If the Property is damaged by foe or other Casualty, the msamace pro Cords pad on account of such damage shall be applied m payment of the amounts payable by Pumhaserunder this Cataract, even it such amount are not then due to be paid. tides, Purchaser mala. a pamtted election described mills next pata- gmph. Such amounts shall be fur[ applied to unpaid $Carved interest and next to the hnstalhnems in be paid as provided in thin, Contract m the inverse order of their maturity Such payment shalt not pe aponc the due date of the uisiallmcros to be paid purarant to thiq Cam= or change the amount of such iMMU MIL The balance of Insurance proceeds, if any, shall be (he property of Purehasce (b) PURCHASER S ELECTION TO REBUILD U Purch.det is not to default under this Contract, or after coming any such default, and S the mortgagccs in any prior mortgages and =It= in any prior man for deed do met requne otherwise, Purchase may elect to have that portion of such iaqurnce proceeds necessary to repair, replace or resmm the damaged Property (the Repairs deposited on escrow with a bank or rate insurance company quahsed to do buxmem m the Sane of Mutnesota, or such other party m may be mutually agreeable to Seller and Purchaser The elecum may only be ante by wrinen notice to Seller wilhm sixty days afar the damage occurs, Aix% the election will only be petnubcd if the plans and specifications and contract for the Repairs are approved by Seller which approval Seller Khali net unreasonably with- hold or delay If such a pemdtted election is mile by Purchaser, Seller and Purchaser shall jointly deposit, when paid, such hn ace proceeds into such ennuw 11' such mamarree proceeds are fmvffictent for the Repairs. Purchaser shall, before the commencement of the Repairs, depoem into such eanaw sufficient additional mancy m msme the full payment for the Repa Even if the insurance proceeds are unavailable or are unufficmot in pay the me of the Repsua. Purchaser shall m all time be mspomhble to pay the full cast of the Reports. All escrowed funds shall be disbursed by the mrowcc in mour- dance with generally accepted souvdcuaseucton disbuxm mi pancedairte 7be cost vieuned or m lie iaeuraed on acramt of aurri netow a1a11 be deposited by Pmchnca Iran such esmw liefo¢ the ewvniencemevt of die Repars. a•m ban complete the Replant; im soon as reasonably possible and in a good and walznanlike mane[ and and in my event the Comiact fa Dinh Form 54-M page 2 Mar -07 -05 10:38 From Kennedy Graven +6123378310 T -500 P 004/005 F -685 Repairs shall be completed by Purchaser within arse year Ace the damage occurs rf, following the completion of and pay. meat for the Repau3, there fctnams any undrsbursed escrow funds, such funds shalt be applied to payment of the amounts payable by Purchaser under this Contract M accordance with paragraph 8(a) above, (c) OWNERS' ASSOCIATION ff arc Propeny is subject ro a recorded declaration ,o long as the owners as,ocwtion main Tom a master or blanket policy of Insurance against fire extended coverage pertly and such other hazards and in such amount a, are required by din Contract rhea (t) Purchaser's obligation in the Contract w maintain bs card insu-aam coy. crage on the Property is ems£ed (I) the provi of paragraph 8(a) of this Contract repardmg application of tmurante procceds shall be superseded by the Pori of the declaration or other related documrmd, and (tit in the event of a ills. Tnbubon of insurance proceeds in ben of restoration or repair following an Insured casualty Ira, in the Property, any such proceeds payable to Purchaser are hereby asilgncd and shall be paid in Seller fa application to the sum ,ccumd by this Contract with the rxce,h it any, paid to Puah,nstr 9 INJURY OR DAMAGF OCCURRING ON T14P PROPERTY (s) LIABILITY Scher shat be free from It ibihty and ularms for damages by reason of injuries occurring on or after the dale of this Contract to any person or persons or property while on or about the Fropenykfiurchx,er,hall defend and indencie T rjrteyXC2 R Dyt Cy Seller from all habibty ran n and obhgstiond including reasonable momevs' fees on account of or ansang our of f DI2 e any sudii Mjune however, Purchaser shall have no liability or Obligation m Sella for such injuries which arc caused by nfl 1T the negligence or Intentional wrongful met, or o,vtooh of Scaler mi is possession Eli) LIABILITY INSURANCE INSURANCE Purchaser ,has, at Purchaser s awn expense procure and maintain liability Insurance against O f the claims far bodily injury death and propeay damage occurring o or about the Property in amounts reasonably sausfacto- Propef ty. ry 1e. Sdhr,md narmng S,ncr t an additional m.ured 10 INSURANCE GENERALLY The Marano: which Purchaser 13 required to procure and maintain pursuant to parrgmph, 7 and 9 of III Contract shall be b,ced by an insurance company or companies lammed ro do busmnd in the State of Minne.Ma and acceptable to Seller the m,urmcr ,hall be maintained by Purthaser at all umc, while any amount remain, unpaid under this Conr The Insurance policies dhall provide for not le¢s than ten days written notice m Seller before cancellation non -mnew• al tenon most or change in coverage. and Purchaser shall deliver to Seller n duplicate original or cemficade of such m, un. nee policy or ponce I 1 CONDEMNATION. if all or any part of the Property is taken to condcronmon proceedings mounted under power of erninems <Immmn or is cockeyed in Ireu thereof under Threat of aondcmnouon, the mnocy paid pursuant to such condemnation or uhn- v<vaaa M lieu thereof shall be appitcd to payaumt of the amount payable by Ptrchaser under lhts Contrac4 even if WLh amount arr out then due to be paid Such amounts shall be applied in the same manotr as a prepayment as provided in para- graph 5 of this Contract. Such pavments shall not postpone the due date of the mstNlmcnLS to be paid pweumn to dug Coroner or change the amount of such insullmcntc The balance if any shall be the Property of Purchaser, 12, WASTh, RbPAIR AND LIENS Purchaser hall oil remove or demolbb any buildings improvements or fixtures now or latex located on or a parr of the Pmperry nor ,hail Purcbaser commit or allow waste of the Pnopeay Purchaser shall mainmm the Property in good condition and repair Purchaser shall net ci care ai permit in accrue Iran, or adverse claims agamm the Properly wbith constitute a Iron or claim agmnaL Seller> mtere,f in the Property Pumhastr shat pay m Seller at amount. costs and expi including reasonable anomcyd tce., incurred by Scaer to remove my inch liens or adverse cLvms 13 COMPLIANCE WITH LAWS, Except for matters winch Stller bas crested suffered or permrded to cost prior to the date afros Contract Purchaser shall comply or caLSC compliance with all laws and regulations of my governmental authority which offset the Property in the manner of u,uie or operm mg the same, and with all m,mcmve Lovendnt, If any ACCLiag tide to the Property or the use thereof 14 RECORDING OF CONTRACT DEED TAX Purchaser shall at Purchaser's mpcnsc, record this Contract m the office of tie county rettndcr or regiarar of Titles In the county in which the Properly o located within four (4) months afar the date hereof Pureluxer J'Il pay Inv pin sty tmposcd under Mmne Statutes Section 5 07.235 for failure to tamely record the Common Scler upon Pumcb ter s full penormame at this Contract_ pay the deed Gtr due upon the recording of the decd to be dcliv- esd by Seller 15. NOTICE OFASSICNMENT If caber Shccr or Purchaser assigns them interest in the Property the assigting puny sball prompt- ly furl nth a copy of tuck assngnmedt to the non- adsngnnng party rd PROTEC 11ON OF IN fl�RfS IS R purchaser mils to pay any sum of money required under the terms of Thu Contract or fads to pMorm my of are Purchaser's obligations as set Earth in this Commct Seller may, nt Seller', option, pay the came or cause tit xamL LEI Ix p-rfooned or both, and mu imaunis so paid by Scher and the wit of such performance ,hall be payable at once with mremsn at the rate stated in paragraph 4 of thLS Cootiact as an addmonal amount due Sense under dits Contracts If 'here now exrSLj or if Shcc he msfi�r crearcs, suffers or penMte to accNc any ltlorigage, contract for deed, hen Or enctrrlbrance against the properly which n not herein expt,5ly assumed by Yumllascr .mil provided Purehx,<r is not in default under this Contract Seller shall timely pay all amounts die thereon and if Senor fads to do so, Pumhamr may ar Purchaser's option pay my Sath delinquent amaunta or rater any acuon, reasonably nece»sry Lit cure default, thereunder and defect the amounts ,o paid rogeth- or with mere,, at Ole rate provided in sus (70,Maet foam a pavmenb next coming due under tits Conine[. 17 DEFAULTS AND REMEDIES The time of performance by Purchn,,cr of The tents of this Contract is an cdsenual pan of Wit Contract If Purchaser fats to Tamely perform any tcmh or th, Conlrici, Seller may, at Seller', opmo, elect to declare this Contract cancelled and Limma ed by noun to FwThaset in SccrNdance, ,Lift applicable law or elms any other remedy available at law or to equity If Seller elecLa to Terminate this Contract all right, tttlr, and nnem,t acquued underthis Contract by Purchaser Shall then cease and terminate and all improveTicras made upon the Property and all payments trade by Purchnser pursuant to the. Contnct (Tncludmg"rowpayment If any] shall belong to Seller a, liquidated damaged for breach of thi, Conlrtct Neither tlic cnrcnsmn of The ume ion payltiirm of any ,um or money to be paid hereunder nor any w;itvcr by Seller of Scller h rights o declare this Contract forfeited by rooson of my breach shall in any manner affect Seller's right to ounce] this Conran because of defaults Subsequeudy occurring and no euc hmon of rune shall be alit unless agnwd to in writing Alter service of notice of default and failure to true such d<Isult wtlhm the period dlla WLd by Ian. Purthaser shall, upon dcmmd, sun<nder poP of the Property to Seller bur Purchaser shall be enoded ma pnssCSewn Of the Property until The expiration of such period Fail= by Seller to exercise one or more mincilml available cider this paragraph 17 shall not constitute a waiver of the right to a mise nucb remedy or remedies thereafter Comma for Deed Fonn S -M page I Mar-OT-05 10.39 From Kennedy i Graven +6123379310 T -500 P 005/005 F -885 I I_ BINDING EFFECT The nmLS of nn CornmeL shall run wide the land and bind the parties fwrtto and the suaeasors in i111=51. 19 HEADINGS Headings of the pnmBmphs of this Conran are for com,cntence only and do not define, bmu, or ennsirve the con Lent-s of ouch paiogmph& 20 ADDITIONAL TERMS Check bete if an Addt;ndum to COmr4n for Deed conwmng addmonal terms and condmons 1 anaehed hereto SWASR jeffrcy A Otscn Claire M 01'.xi STATE OF MINNESOTA COUNTY OF PURCFiASF;R CITY OF ROSEMOUNT Mayor City Manager This wiwumem was acknowledged betom me oo by wiltim, wilt I1 Orosic and Jam s V rbtnc dls avo;grBlf )!`LAdmlAls�S9i nfdi� of Rnaennr mt, a MmtKsrm municipal corporation on behalf of the municipal corporation. NUTARIA S AMP OR SEAL (OR OTHER TITLE OR RANK) 1 1 SlrNATIJRF OF NOTARY PpAI IC OR OPIIFR OFFTCJAL STATk. Of MINNESOTA sx COUNTY OF This insu was acknowlcdp tl before me on by Mfigy A Oken and C9a re M CJlsen husband and w to NOCARIAL STAMP OR SEAL (OR OTHER TITLE OR RANK) Kennedy dt Graven, Chartered 470 U,S, Baiix Plaza 200 Souk Stith SUCCI MCmcapobm, MN 55402 RS230 -if. SIGNATVRE OF NOTARY PUBLIC OR OCHER OFFICIAL Click hem iF all or pan of the land a n'-gioered (Tmrens), LJ fax Stitemente for the real property desenbed in this lnstru- ment should be sem to (mcludc none and address) City of Rosersmunt W75 148th Srrcvi west Ro cmwtmt, MN 55068 FAILURE TO RECORD THIS CONTRACT FOR DEED MAY GIVE OTHER PARTIES PRIORITY OV ER PURCHASER'S INTEREST IN THE PROPERTY. Canefa ei rnr r .J F— "1 re• 4