Loading...
HomeMy WebLinkAboutItem 11r October 1, 2015 Item No. RESOLUTION AUTHORIZING THE PURCHASE OF REAL PROPERTY LOCATED AT 20116 KENWOOD TRAIL October 5, 2015 City Council Meeting Proposed Action Staff recommends adoption of the following motion: Move to adopt a Resolution Approving Acquisition of Certain Real Property. Adoption of this resolution will result in the acquisition of the property located at 20116 Kenwood Trail. Overview The City Council has approved a Joint Powers Agreement with Dakota County to complete early opportunity acquisitions of properties along Co. Rd. 50 / Kenwood Trail. The agreement calls for these acquisitions to be completed by the City with the County reimbursing the City with their 55% cost share. The single family home located 20116 Kenwood Trail has been identified to be acquired for the Co. Rd. 50 Improvement Project. This property consists of a vacant rental single family home on a 13,000 square foot lot. The City and County requested an appraisal of the property several months ago. The appraised value of the property is $142,000. The owners, Mary P. Wetschka and Mark Newhall, have signed a purchase agreement for a purchase price of $155,200 with an October 30, 2015 closing date. The negotiated settlement amount was based on a recent sale of comparable property at that amount and the fact that the County has valued the property at $160,000 for property tax purposes in 2015. The City also proposes to pay back rent in the amount of $7,120. This property became vacant just prior to the City beginning discussions with the owner's regarding a possible acquisition. The City and County realized a significant savings in the total acquisition cost by not having to pay relocation costs in conjunction with this acquisition. City and County staff recommend approval of this purchase agreement. Primary Issues to Consider • What is the proposed funding source for this acquisition? The project as identified in the adopted 2014-2018 Capital Improvement Plan and the City's portion of the acquisition is proposed to be financed from Municipal State Aid Street funds. Supporting Information • Resolution approving the purchase of property at 20116 Kenwood Trail • Signed Purchase Agreement including Addendums David L. Olson, Community and Economic Development Director c: Chris Petree, Public Works Director, Zach Johnson, City Engineer; Brian Sorenson, Asst. Co. Engineer Financial Impact: $ 162,320 Budgeted: Y/N Y Source: MSA and County Funds CITY OF LAKEVILLE DAKOTA COUNTY, MINNESOTA RESOLUTION 15 - RESOLUTION APPROVING THE ACQUISITION OF REAL PROPERTY AND DISPENSING WITH STATUTORY REQUIREMENTS FOR REVIEW BY PLANNING COMMISSION OF DISPOSAL OF PROPERTY WHEREAS, the City is proposing to acquire certain property ("Property") legally described as: The Southeasterly Half of Lot 2 AND ALL of Lots 3 and 4, Block 1, Antlers Park, Dakota County Minnesota; WHEREAS, the Trustees of the Mary P. Wetschka Revocable Trust and the City have negotiated terms for the acquisition of the Property as provide in the proposed purchase agreement attached hereto as Exhibit "A" ("Purchase Agreement"); WHEREAS, Minn. Stat. § 462.356, subd. 2 requires that the Planning Commission review the City's proposed acquisitions and dispositions of property, and; WHEREAS, Minn. Stat. § 462.356, subd. 2 provides for an exception from the Planning Commission review requirement upon 2/3 vote of the City Council dispensing with the requirement and finding that the acquisition or disposal of the property has no relationship to the comprehensive municipal plan. that: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville 1. The Purchase Agreement is hereby approved; 2. The acquisition of the Property under the Purchase Agreement has no relationship to the comprehensive municipal plan. 3. Review by the Planning Commission of the acquisition of the Property is hereby dispensed with, the proposed transaction is hereby approved, and the Mayor and City Clerk are authorized and directed to execute all documents, and take all appropriate measures to convey the Property under the terms of the Purchase Agreement. 183676v1 ADOPTED this day of , 2015, by a 2/3 vote of the City Council of the City of Lakeville. CITY OF LAKEVILLE BY: Matt Little, Mayor ATTEST: Charlene Friedges, City Clerk 1s3676vl EXHIBIT "A" ATTACH PURCHASE AGREEMENT 1s3676vl 0 110 220 440 Feet 1 inch = 112 feet N wE s 3 4 5 BUYER (S): PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORS°, which disclaims any liability arising out of use or misuse of this form. © 2015 Minnesota Association of REALTORS,, Edina, MN 1. Date 08/11/2015 2. Page 1 of - of Lakeville a municiple corporation Buyer's earnest money in the amount of none 10 6. Dollars ($ 0.00 ) 7. shall be delivered to listing broker no later than two (2) Business Days after Final Acceptance Date of this Purchase 8. Agreement. Buyer and Seller agree that listing broker shall deposit any earnest money in the listing broker's trust 9. account within three (3) Business Days of receipt of the earnest money or Final Acceptance Date of this Purchase 10. Agreement, whichever is later. 11 12. 13. 14, 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. Said earnest money is part payment for the purchase of the property located at Street Address: 20116 Kenwood Trail west City of Lakeville , County of Dakota State of Minnesota, leqallv described as The Southeasterly Half of Lot 2, AND All of Lots 3 and 4, Block 1, Antlers Park, Dakota County,Minnesota. Said purchase shall include all improvements, fixtures, and appurtenances on the property, if any, including but not limited to, the following (collectively the "Property"): garden bulbs, plants, shrubs, trees, and lawn watering system; shed; storm sash, storm doors, screens and awnings; window shades, blinds; traverse, curtain, and drapery rods, valances, drapes, curtains, window coverings and treatments; towel rods; attached lighting and bulbs; fan fixtures; plumbing fixtures; garbage disposals; water softener; water treatment system; water heating systems, heating systems; air exchange system; radon mitigation system; sump pump; TV antenna/cable TV jacks and wiring/TV wall mounts; wall/ceiling-mounted speakers and mounts; carpeting; mirrors; garage door openers and all controls; smoke detectors; fireplace screens, door and heatilators; BUILT-INS: dishwashers; refrigerators; wine/beverage refrigerators; trash compactors; ovens; cook -top stoves; warming drawers; microwave ovens; hood fans; shelving; work benches; intercoms; speakers; air conditioning equipment; electronic air filter; humidifier/dehumidifier; liquid fuel tanks (and controls); pool/spa equipment; propane tank (and controls); security system equipment; TV satellite dish; AND the following personal property shall be transferred with no additional monetary value, and free and clear of all liens and encumbrances: Notwithstanding the foregoing, leased fixtures are not included. Notwithstanding the foregoing, the following item(s) are excluded from the purchase: 35. Seller has agreed to sell the Property to Buyer for the sum of ($ 155, 200.00 ) 36. one Hundred Fifty -Five Thousand Two Hundred Dollars, 37. which Buyer agrees to pay in the following manner: 38. 1. CASH of 100 percent (%) of the sale price, or more in Buyer's sole discretion, which includes the earnest 39. money; PLUS 40, 2. FINANCING of 0 percent (%) of the sale price, which will be the total amount secured against this 41. Property to fund this purchase. 42. Such financing shall be (check one) ❑ a first mortgage; ❑ a contract for deed; or ❑ a first mortgage with 43. subordinate financing, as described in the attached Addendum: 44. ❑ Conventional [:]FHA ❑ DVA ❑ Assumption ❑ Contract for Deed Q Other: Cash --------------------------------------------------•---------------------------------------- heck one.)----------------------------------------------------------------------------------- 45. The date of closing shall be MN:PA-1 (8/15) V) PURCHASE AGREEMENT 46. Page 2 Date 08/11/2015 47. Property located at 20116 Kenwood Trail West Lakeville MN 55044 48. SALE OF BUYER'S PROPERTY CONTINGENCY: This Purchase Agreement ❑ IS ❑K IS NOT subject to an --------(Check one.)------- 49. Addendum to Purchase Agreement: Sale of Buyers Property Contingency. (If answer is IS, see attached Addendum.) 50. (If answer is IS NOT, the closing of Buyer's property, if any, may still affect Buyer's ability to obtain financing, if 51, financing is applicable.) 52. This Purchase Agreement ❑ IS K❑ IS NOT subject to cancellation of a previously written purchase agreement -------(Check one.) ------- 53. dated 120 . (If answer is IS, said cancellation shall be obtained no later than 54. 120 . If said cancellation is not obtained by said date, this Purchase Agreement 55. is canceled. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confIrming said cancellation 56. and directing all earnest money paid hereunder to be refunded to Buyer.) 57. Buyer has been made aware of the availability of Property inspections. Buyer ❑ Elects 0 Declines to have a 58. Property inspection performed at Buyer's expense. -------------(Check one.)------------- 59. INSPECTION CONTINGENCY: This Purchase Agreement ❑ IS Q IS NOT subject to an Addendum to Purchase -------(Check one.) ------- 60. Agreement: Inspection Contingency, (If answer is IS, see attached Addendum.) 61. DEED/MARKETABLE TITLE: Upon performance by Buyer, Seller shall deliver a (check one): 62. 0 warranty Deed, ❑ Personal Representative's Deed, ❑ Contract for Deed, ❑ Trustee's Deed, or 63. ❑ Other: Deed joined in by spouse, if any, conveying marketable title, subject to 64. (a) building and zoning laws, ordinances, and state and federal regulations; 65. (b) restrictions relating to use or improvement of the Property without effective forfeiture provisions; 66. (c) reservation of any mineral rights by the State of Minnesota; 67. (d) utility and drainage easements which do not interfere with existing improvements; 68. (e) rights of tenants as follows (unless specified, not subject to tenancies): 69• :and 70. (f) others (must be specified in writing): 71. 72. REAL ESTATE TAXES: Seller shall pay on the date of closing allreal estate taxes due and payable in all prior years 73. including all penalties and interest. 74. Buyer shall pay © PRORATED FROM DAY OF CLOSING ❑ 12ths OF ❑ ALL ❑ NO real estate taxes due -(Check one.) ----------------------------------------------------------------------- 75. and payable in the year 20 15 76. Seller shall pay Q PRORATED TODAY OF CLOSING ❑ 12ths OF ❑ ALL ❑ NO real estate taxes due and 77. payable in the year 20 15 . If the closing date is changed, the real estate taxes paid shall, if prorated, be adjusted 78. to the new closing date. If the Property tax status is a part- or non -homestead classification in the year of closing, Seller 79. Q SHALL ❑ SHALL NOT pay the difference between the homestead and non -homestead. ----------------(Check one.) ----------------- 80. Buyer shall pay real estate taxes due and payable in the year following closing and thereafter, the payment of which 81. is not otherwise herein provided. No representations are made concerning the amount of subsequent real estate taxes. 82. DEFERRED TAXES/SPECIAL ASSESSMENTS: 83. ❑ BUYER SHALL PAY n SELLER SHALL PAY on date of closing any deferred real estate taxes (e.g., Green ------------------------------------(Check one.)-------------------------------- 84. Acres) or special assessments, payment of which is required as a result of the closing of this sale. 85. ❑ BUYER AND SELLER SHALL PRORATE AS OF THE DATE OF CLOSING © SELLER SHALL PAY ON --------------------------------------------------------------------------------------------------------(Check one.)----------------------------------------------------------------------------------------- 86. DATE OF CLOSING all installments of special assessments certified for payment, with the real estate taxes due and 87. payable in the year of closing. MN:PA-2 (8115) PURCHASE AGREEMENT 88. Page 3 Date 08/11/2015 89. Property located at 20116 Kenwood Trail West Lakeville MN 55044 90. ❑ BUYER SHALL ASSUME K❑ SELLER SHALL PAY on date of closing all other special assessments levied as -------- -------------------------------- -(Check one.) ------------------------ 91. of the date of this Purchase Agreement. 92. ❑ BUYER SHALL ASSUME K❑ SELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as ---------------------------------------------------------------------(Check one.)---------------------------------------------------- -------------- 93. of the date of this Purchase Agreement for improvements that have been ordered by any assessing authorities. (Seller's 94, provision for payment shall be by payment into escrow of two (2) times the estimated amount of the assessments 95. or less, as required by Buyer's lender.) 96. Buyer shall pay any unpaid special assessments payable in the year following closing and thereafter, the payment of 97. which is not otherwise herein provided. 98. As of the date of this Purchase Agreement, Seller represents that Seller ❑ HAS ❑K HAS NOT received a notice ------------(Check one.) ------------ 99. regarding any new improvement project from any assessing authorities, the costs of which project may be assessed 100. against the Property. Any such notice received by Seller after the date of this Purchase Agreement and before closing 101. shall be provided to Buyer immediately. If such notice is issued after the date of this Purchase Agreement and on 102, or before the date of closing, then the parties may agree in writing, on or before the date of closing, to pay, provide 103. for the payment of or assume the special assessments. In the absence of such agreement, either party may declare 104. this Purchase Agreement canceled by written notice to the other party, or licensee representing or assisting the other 105. party, in which case this Purchase Agreement is canceled. If either party declares this Purchase Agreement canceled, 106. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and 107. directing all earnest money paid hereunder to be refunded to Buyer. 108. POSSESSION: Seller shall deliver possession of the Property no later than immediately after closing. 109. Seller agrees to remove ALL DEBRIS AND ALL PERSONAL PROPERTY NOT INCLUDED HEREIN from the Property 110. by possession date. 111. LINKED DEVICES: Seller warrants that Seller shall permanently disconnect or discontinue Seller's access or service 112, to any device or system on or serving the property that is connected or controlled wirelessly, via internet protocol ("IP") 113. to a router or gateway or directly to the cloud no later than delivery of possession as specified in this Purchase 114. Agreement. 115. PROBATIONS: All interest; unit owners' association dues; rents; and charges for city water, city sewer, electricity and 116. natural gas shall be prorated between the parties as of date of closing. Buyer shall pay Seller for remaining gallons of 117. fuel oil or liquid petroleum gas on the day of closing, at the rate of the last fill by Seller. 118, TITLE AND EXAMINATION: As quickly as reasonably possible after Final Acceptance Date of this Purchase Agreement: 119. (a) Seller shall deliver any abstract of title and a copy of any owner's title insurance policy for the Property, if 120. in Seller's possession or control, to Buyer or Buyer's designated title service provider. Any abstract of title or 121. owner's title insurance policy provided shall be immediately returned to Seller, or licensee representing or 122. assisting Seller, upon cancellation of this Purchase Agreement; and 23. (b) Buyer shall obtain the title services determined necessary or desirable by Buyer or Buyer's lender, including 124. but not limited to title searches, title examinations, abstracting, a title insurance commitment or an attorney's 125. title opinion at Buyer's selection and cost and provide a copy to Seller. 126. Seller shall use Seller's best efforts to provide marketable title by the date of closing. Seller agrees to pay all costs 127. and fees necessary to convey marketable title including obtaining and recording all required documents, subject to the 128. following: 129. In the event Seller has not provided marketable title by the date of closing, Seller shall have an additional 30 days to 130. make title marketable, or in the alternative, Buyer may waive title defects by written notice to Seller. In addition to 131. the 30 -day extension, Buyer and Seller may, by mutual agreement, further extend the closing date. Lacking such 132. extension, either party may declare this Purchase Agreement canceled by written notice to the other party, or 133. licensee representing or assisting the other party, in which case this Purchase Agreement is canceled. If either 134. party declares this Purchase Agreement canceled, Buyer and Seller shall immediately sign a Cancellation of 135. Purchase Agreement confirming said cancellation and directing all earnest money paid hereunder to be refunded 136. to Buyer. MN:PA-3 (8/15) PURCHASE AGREEMENT 137. Page 4 Date 08/11/2015 138. Property located at 20116 Kenwood Trail West Lakeville MN 55044 139. SUBDIVISION OF LAND, BOUNDARIES, AND ACCESS: If this sale constitutes or requires a subdivision of land 140. owned by Seller, Seller shall pay all subdivision expenses and obtain all necessary governmental approvals. Seller 141. warrants that the legal description of the real property to be conveyed has been or shall be approved for recording as 142. of the date of closing. Seller warrants that the buildings are or shall be constructed entirely within the boundary lines 143. of the Property. Seller warrants that there is a right of access to the Property from a public right-of-way. 144. MECHANIC'S LIENS: Seller warrants that priorto the closing, payment in full will have been made for all labor, materials, 145. machinery, fixtures or tools furnished within the 120 days immediately preceding the closing in connection with 146. construction, alteration or repair of any structure on, or improvement to, the Property. 147. NOTICES: Seller warrants that Seller has not received any notice from any governmental authority as to condemnation 148. proceedings, or violation of any law, ordinance or regulation. If the Property is subject to restrictive covenants, Seller 149. warrants that Seller has not received any notice from any person or authority as to a breach of the covenants. Any 150. such notices received by Seller shall be provided to Buyer immediately. 151. DIMENSIONS: Buyer acknowledges any dimensions, square footage or acreage of land or improvements provided 152. by Seller, third party, or broker representing or assisting Seller are approximate. Buyer shall verify the accuracy of 153. information to Buyer's satisfaction, if material, at Buyer's sole cost and expense. 154. ACCESS AGREEMENT: Seller agrees to allow reasonable access to the Property for performance of any surveys or 155. inspections agreed to herein. 156. RISK OF LOSS: If there is any loss or damage to the Property between the date hereof and the date of closing for any 157. reason, including fire, vandalism, flood, earthquake or act of God, the risk of loss shall be on Seller. If the Property 158. is destroyed or substantially damaged before the closing date, this Purchase Agreement is canceled, at Buyer's option, 159. by written notice to Seller or licensee representing or assisting Seller. If Buyer cancels this Purchase Agreement, 160. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and 161. directing all earnest money paid hereunder to be refunded to Buyer, 162. TIME OF ESSENCE: Time is of the essence in this Purchase Agreement 163, CALCULATION OF DAYS: Any calculation of days begins on the first day (calendar or Business Days as specified) 164. following the occurrence of the event specified and includes subsequent days (calendar or Business Days as specified) 165. ending at 11:59 P.M. on the last day. 166. BUSINESS DAYS: "Business Days" are days which are not Saturdays, Sundays or state or federal holidays unless 167. stated elsewhere by the parties in writing. 168. RELEASE OF EARNEST MONEY: Buyer and Seller agree that the listing broker shall release earnest money from the 169. listing broker's trust account: 1) at or upon the successful closing of the Property; 2) pursuant to written agreement 170. between the parties, which may be reflected in a Cancellation of Purchase Agreement executed by both Buyer and 171. Seller; 3) upon receipt of an affidavit of a cancellation under MN Statute 559.217; or 4) upon receipt of a court order. 172. DEFAULT: If Buyer defaults in any of the agreements herein, Seller may cancel this Purchase Agreement, and any 173. payments made hereunder, including earnest money, shall be retained by Seller as liquidated damages and Buyer 174. and Seiler shall affirm the same by a written cancellation agreement. 175. If Buyer defaults in any of the agreements hereunder, Seller may terminate this Purchase Agreement under the 176. provisions of either MN Statute 559.21 or MN Statute 559.217, whichever is applicable. If either Buyer or Seller defaults 177. in any of the agreements hereunder or there exists an unfulfilled condition after the date specified for fulfillment, either 178. party may cancel this Purchase Agreement under MN Statute 559.217, Subd. 3. Whenever it is provided herein that 179. this Purchase Agreement is canceled, said language shall be deemed a provision authorizing a Declaratory Cancellation 180. under MN Statute 559.217, Subd. 4. 181. If this Purchase Agreement is not canceled or terminated as provided hereunder, Buyer or Seller may seek actual 182. damages for breach of this Purchase Agreement or specific performance of this Purchase Agreement; and, as to 183. specific performance, such action must be commenced within six (6) months after such right of action arises. MNRA-4 (8/15) i PURCHASE AGREEMENT 184. Page 5 Date 08/11/2015 185. Property located at 20116 Kenwood Trail West Lakeville MN 55044 186. BUYER HAS THE RIGHT TO A WALK-THROUGH REVIEW OF THE PROPERTY PRIOR TO CLOSING TO 187. ESTABLISH THAT THE PROPERTY IS IN SUBSTANTIALLY THE SAME CONDITION AS OF THE DATE OF 188. THIS PURCHASE AGREEMENT. 189, BUYER HAS RECEIVED A (check any that apply): ❑ DISCLOSURE STATEMENT: SELLER'S PROPERTY OR A 190. ❑ DISCLOSURE STATEMENT.- SELLER'S DISCLOSURE ALTERNATIVES FORM. 191, DESCRIPTION OF PROPERTY CONDITION: See Disclosure Statement: Seller's Property or Disclosure Statement: 192. Seller's Disclosure Alternatives for description of disclosure responsibilities and limitations, if any. 193. BUYER HAS RECEIVED THE INSPECTION REPORTS, IF REQUIRED BY MUNICIPALITY. 194. BUYER IS NOT RELYING ON ANY ORAL REPRESENTATIONS REGARDING THE CONDITION OFTHE PROPERTY 195. AND ITS CONTENTS. 196. (Check appropriate boxes.) 197. SELLER WARRANTS THAT THE PROPERTY IS EITHER DIRECTLY OR INDIRECTLY CONNECTED TO - 198, CITY SEWER YES ❑ NO / CITY WATER ©YES ❑ NO 199. SUBSURFACE SEWAGE TREATMENT SYSTEM 200. SELLER ❑ DOES ® DOES NOT KNOW OF A SUBSURFACE SEWAGE TREATMENT SYSTEM ON OR ----------------(Checkk one.) ------------------ 201. SERVING THE PROPERTY. (If answer is DOES, and the system does not require a state permit, see Disclosure 202. Statement: Subsurface Sewage Treatment System.) 203. PRIVATE WELL 204. SELLER ❑ DOES DOES NOT KNOW OF A WELL ON OR SERVING THE PROPERTY. -- ---------------(Chet one.)-------------------- 205. (If answer is DOES and well is located on the Property, see Disclosure Statement: Well.) 206. THIS PURCHASE AGREEMENT X] IS ❑ IS NOT SUBJECT TO AN ADDENDUM TO PURCHASE AGREEMENT.' --------- (Check one.) ---------- 207. SUBSURFACE SEWAGE TREATMENT SYSTEM AND WELL INSPECTION CONTINGENCY. 208. (If answer is IS, see attached Addendum.) 209. IF A WELL OR SUBSURFACE SEWAGE TREATMENT SYSTEM EXISTS ON THE PROPERTY, BUYER HAS 210. RECEIVED A DISCLOSURE STATEMENT: WELL AND/OR A DISCLOSURE STATEMENT. SUBSURFACESEWAGE 211. TREATMENT SYSTEM. 212. NOTICE REGARDING PREDATORY OFFENDER INFORMATION: Information regarding the predatory offender 213. registry and persons registered with the predatory offender registry under MN Statute 243.166 may be obtained 214. by contacting the local law enforcement offices in the community where the Property is located or the Minnesota 215. Department of Corrections at (651) 361-7200, or from the Department of Corrections web site at 216. www.corr.state.mn.us. 217. HOME PROTECTION/WARRANTY PLAN: Buyer and Seller are advised to investigate the various home protection/ 218. warranty plans available for purchase. Different home protection/warranty plans have different coverage options, 219. exclusions, limitations and service fees. Most plans exclude pre-existing conditions. (Check one.) 220. ❑ A Home Protection/Warranty Plan will be obtained by ❑ BUYER ❑ SELLER and paid for by -------------------(Check one.) -------------------- 221. ❑ BUYER ❑ SELLER to be issued by ----------------(Check one.) --------------- 222. not to exceed $ at a cost 223. ❑?C No Home Protection/Warranty Plan is negotiated as part of this Purchase Agreement. However, Buyer may elect 224. to purchase a Home Protection/Warranty Pian. MN:PA-5 (8/15) 226. Property located at 20116 Kenwood Trail West 227 PURCHASE AGREEMENT 225. Page 6 Date 08/11/2015 NOTICE Lakeville MN 55044 228. Daniel H. Wilson is ❑ Seller's Agent X Buyer's Agent ❑ Dual Agent ❑ Facilitator. (Licensee) ------------------------------ ----------------------(Check one.) --------------- -----..------------------------------- 229 Wilson Development Services, LLC (Real Estate Company Name) 230. 231 232 (Licensee) (Real Estate Company Name) is ❑ Seller's Agent ❑ Buyer's Agent ❑ Dual Agent ❑ Facilitator. ------------------------------ ------ ----------------(Check one.) ----------------------------------------------------- THIS NOTICE DOES NOT SATISFY MINNESOTA STATUTORY AGENCY DISCLOSURE REQUIREMENTS. 233. DUAL AGENCY REPRESENTATION 234. PLEASE CHECK ONE OF THE FOLLOWING SELECTIONS: 235. ❑?C Dual Agency representation DOES NOTapply in this transaction. Do not complete lines 236-252. 236. ❑ Dual Agency representation DOES apply in this transaction. Complete the disclosure in lines 237-252. 237. Broker represents both the Seller(s) and the Buyer(s) of the Property involved in this transaction, which creates a 238. dual agency.This means that Broker and its salespersons owe fiduciary duties to both Seller(s) and Buyer(s). Because 239. the parties may have conflicting interests, Broker and its salespersons are prohibited from advocating exclusively for 240. either party. Broker cannot act as a dual agent in this transaction without the consent of both Seller(s) and Buyer(s). 241. Seller(s) and Buyer(s) acknowledge that 242. (1) confidential information communicated to Broker which regards price, terms, or motivation to buy or sell will 243. remain confidential unless Seller(s) or Buyer(s) instructs Broker in writing to disclose this information. Other 244. information will be shared; 245. (2) Broker and its salespersons will not represent the interest of either party to the detriment of the other; and 246. (3) within the limits of dual agency, Broker and its salespersons will work diligently to facilitate the mechanics of 247. the sale. 248. With the knowledge and understanding of the explanation above, Seller(s) and Buyer(s) authorize and instruct Broker 249. and its salesperson to act as dual agents in this transaction. 250. Seller Buyer 251. Seller Buyer 252. Date Date 253. CLOSING COSTS: Buyer or Seller may be required to pay certain closing costs, which may effectively increase the 254. cash outlay at closing or reduce the proceeds from the sale. 255. FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT ("FIRPTA"): Section 1445 of the Internal Revenue Code 256. provides that a transferee ("Buyer") of a United States real property interest must be notified in writing and must withhold 257. tax if the transferor ("Seller") is a foreign person and no exceptions from FIRPTA withholding apply. Buyer and Seller 258. agree to comply with FIRPTA requirements under Section 1445 of the Internal Revenue Code. 259. Seller shall represent and warrant, under the penalties of perjury, whether Seller is a "foreign person" (as the same 260. is defined within FIRPTA), prior to closing. Any representations made by Seller with respect to this issue shall survive 261. the closing and delivery of the deed. 262. Buyer and Seller shall complete, execute, and deliver, on or before closing, any instrument, affidavit, or statement 263. reasonably necessary to comply with the FIRPTA requirements, including delivery of their respective federal taxpayer 264. identification numbers or Social Security numbers. 265. Due to the complexity and potential risks of failing to comply with FIRPTA, including the Buyer's responsibility for 266. withholding the applicable tax, Buyer and Seller should seek appropriate legal and tax advice regarding FIRPTA 267. compliance, as the respective licensee's representing or assisting either party will be unable to assure either 268. party whether the transaction is exempt from FIRPTA withholding requirements. MN PA -6 (8115) PURCHASE AGREEMENT 269. Page 7 Date 08/11/2015 270. Property located at 20116 Kenwood Trail West Lakeville MN 55044 271. ENTIRE AGREEMENT: This Purchase Agreement and any addenda or amendments signed by the parties shall 272. constitute the entire agreement between Buyer and Seller. Any other written or oral communication between Buyer and 273. Seller, including, but not limited to, e-mails, text messages, or other electronic communications are not part of this 274. Purchase Agreement. This Purchase Agreement can be modified or canceled only in writing signed by Seller and 275. Buyer or by operation of law. All monetary sums are deemed to be United States currency for purposes of this Purchase 276. Agreement. 277. ELECTRONIC SIGNATURES: The parties agree the electronic signature of any party on any document related to this 278. transaction constitute valid, binding signatures. 279. FINAL ACCEPTANCE: To be binding, this Purchase Agreement must be fully executed by both parties and a copy 280. must be delivered. 281. SURVIVAL: All warranties specified in this Purchase Agreement shall survive the delivery of the deed or contract 282. for deed. 283. OTHER: -This purchase agreement is subject to the City of Lakeville's council 284. approval at their regularly scheduled meeting, and Dakota County 285. approval. -Sellers and Buyers are responsible for their own real estate 286. brokerage fees, if any. -Buyer to pay all closing costs typically charged to a seller in this 287, transaction, except title issue charges for clear title, if any. 288. -Buyer and Seller acknowledges that if the negotiations fail, the Buyer will initiate eminent domain proceedings for the property for 289. the Kenwood Trail Reconstruction Project. 290. This purchase agreement does not include any of the relocation benefits allowed to the Seller under 49CFR Part 24, for eligible move 291. expenses. Buyers relocation claim payments will be made upon receiving 292. documented claims. 293. 294. 295. 296. 297. ADDENDA AND PAGE NUMBERING: Attached addenda are a part of this Purchase Agreement. 298. Enter total number of pages of this Purchase Agreement, including addenda, on line two (2) of page one (1). 299. NOTE: Disclosures and optional Arbitration Agreement are not part of this Purchase Agreement and should 300. not be part of the page numbering. J1N:PA-7 (8/15) 302. Property located at 20116 Kenwood Trail West PURCHASE AGREEMENT 301. Page 8 Date 08/11/2015 Lakeville MN 55044 303. I, the owner of the Property, accept this Purchase I agree to purchase the Property for the price and on 304. Agreement and authorize the listing broker to withdraw the terms and conditions set forth above 305. said Property from the market, unless instructed I have reviewed all pages of this Purchase 306. otherwise in writing. Agreement. 307. 1 have reviewed all pages of this Purchase Agreement. 308. ❑ If checked, this Agreement is subject to attached 309. Addendum to Purchase Agreement. Counteroffer. 310. 311. 312. 313. 314. 315. 316. 317 FIRPTA: Seller represents and warrants, under penalty of perjury, that Seller❑ IS ❑ IS NOT a foreign person (i.e., a --------(Check one.) ------- non-resident alien individual, foreign corporation, foreign partnership, foreign trust, or foreign estate for purposes of income taxation. (See lines 255-268.)) This representation and warranty shall survive the closing of the transaction and the delivery of th de d. X/ (Seller's Signature) (Date) 318. X Mark A. Newhall, Trustee (Seller's Printed Name) 319. X married (Marital Status) 111rhal 320. X 9� (Seller's Signature) (Date) 321. X Mary P. wettschka, Trustee (Seller's Printed Name) 322. X marri (Marital Status) (Buyer's Signature) X Matt Little, Mayor (Buyers Printed Name) X City of Lakeville (Marital Status) X (Buyer's Signature) X Charlene Friedges, City Clerk (Buyer's Printed Name) X City of Lakeville (Marital Status) 323. FINAL ACCEPTANCE DATE: 324, is the date on which the fully executed Purchase Agreement is delivered. (Date) (Date) The Final Acceptance Date 325. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S). 326. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. 327. 1 ACKNOWLEDGE THAT I HAVE RECEIVED AND HAVE HAD THE OPPORTUNITYTO REVIEW THE DISCLOSURE 328. STATEMENT. ARBITRATION DISCLOSURE AND RESID NTIAL REAL PROPERTYARBITRATION AGREEMENT, 329. WHICH IS AN OPT,OL NTARY GR E ND IS NOT PART OF THIS PURCHASE AGREEMENT. 330. SELLER(S) ) BUYERS) Mai^k A. Newhall, Trustee Matt Little, Mayor 331. SELLER(S) BUYER(S) Mary P. tkftschka, Trustee Charlene Fried es, City Clerk MN:PA-8 (8/15) ADDENDUM TO PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORS®, which disclaims any liability arising out of use or misuse of this form. © 2011 Minnesota Association of REALTORS®, Edina, MN 1. Date 08/11/15 2. Page 9 3. Addendum to Purchase Agreement between parties, dated August 11th , 20 15 pertaining to the 4. purchase and sale of the property at 20116 Kenwood Trail west 5. Lakeville, MN 55044 6. In the event of a conflict between this Addendum and any other provision of the Purchase Agreement, the language 7, in this Addendum shall qovern. SELLERS' OBLIGATIONS: 8. A. Sellers shall not lease the currently vacant property to any tenant through the closing 9 date. 10 B. Sellers shall abide by and conform to all statutes, ordinances, rules and regulations of duly constituted public authorities relating to the use and occupancy of the Property. 11. C. Sellers shall not use the Property in any way that would cause a cancellation, restriction 12. or increase in premium of the Buyer's insurance. D. Sellers shall not use or store in or near the Property any flammable or explosive substances 13. in an unsafe manner. 14. F. Sellers shall at all times keep and maintain the Property in a neat, clean and sanitary condition, free from waste or debris, and shall remove, at Sellers' expense, all ashes, garbage and refuse 15. of any kind and shall neither permit nor commit any waste or nuisance thereon. Sellers shall recycle or dispose of trash in the outside containers provided for those purposes. 16. F Sellers shall maintain the yard to the Property and the driveway in good condition including 17 mowing and snowplowing. 18 G. Sellers covenant and agree that Sellers, their agents, contractors, licensees and invitees shall not handle, use, manufacture, store or dispose of any flammables, explosives, radioactive materials, hazardous wastes or materials (as may be defined by Federal or State Law), toxic wastes or materials, 19. petroleum products, or other similar substances or derivatives thereof (collectively "Hazardous Materials"), on, under, or about the Property, without Buyer's prior written consent (which consent may be 20, withheld or denied for any or no reason). 21. THE BUYER'S RIGHT TO ENTER. The Buyer may enter the Property and Buildings located thereon for a reasonable business purpose. The Buyer must first make a good faith effort to give reasonable notice to 22, the Sellers of the intent to enter. The Buyer may enter the Property and Buildings located thereon in an emergency. The Buyer must disclose the date, time and purpose of the emergency entry in writing. The 23 writing must be left in a conspicuous place in or on the Building located on the Property. 24. RECORDING OF AGREEMENT. Sellers shall not record this Agreement on the Public Records of any public office. In the event that Sellers shall record this Agreement, this Agreement shall, at Buyer's option, 25. terminate immediately and Byer shall be entitled to all rights and remedies that it has at law or in equity. 26. NON -WAIVER. No indulgence, waiver, election or non -election by Buyer under this Agreement shall affect Seller's duties and liabilities hereunder. 27. GOVERNING LAW. This Agreement shall be governed, construed and interpreted by, through and under the Laws 28, of the State of Minnesota. 29. 30, 31 32 (Seller) Mark A. Newhall, Trustee (Date) (Buyer) (Seller) Mary Trustee (Date) (Buyer) Matt Little, Mayor Charlene Friedges, City Clerk 33. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYERS AND SELLERS. 34. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MN -APA (8/11) (Date) (Date) rms Inst$ ADDENDUM TO PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORSP, which disclaims any liability arising out of use or misuse of this form. © 2011 Minnesota Association of REALTORS®, Edina, MN f. Date 08/11/15 2. Page 10 3. Addendum to Purchase Agreement between parties, dated August 11th , 20 15 pertaining to the 4. purchase and sale of the property at 20116 Kenwood Trail west 5. Lakeville, MN 55044 6. In the event of a conflict between this Addendum and any other provision of the Purchase Agreement, the language 7. in this Addendum shall govern. Upon termination, Sellers must remove all personal property from the 8' Property and return all keys to all buildings located on the Property 9. to the Buyer. Sellers may also remove fixtures and buildings located 10. on the Property at Sellers, sole cost and expense, upon written approval from the Buyer. 11. 12 Any possessions or property remaining on the Property upon termination of the Agreement may be considered by the Buyer to have been abandoned. 13. The Buyer may dispose of the possessions and personal property in the 14. manner that Buyer deems appropriate. The Buyer shall not be liable to Sellers, their representatives, heirs or assigns for disposing of the 15. possessions or property. 16. 17 Additional compensation: The Buyer agrees to pay to the Seller at closing $7,120.00 in payment of a mutually agreed upon settlement for 18• any and all claims for lost rent on the subject property. The lost 19 rent settlement amount is above and beyond the purchase price at Line 35. 20. 21. 22. 23. 24. 25, 26. 27. 28. 29. 30. 31. (Seller) Mark A. N hall, Trustee (Date) (Buyer) Matt Little, Mayor (Date) 32. r j /& (Seller) Mary P Wetschka, Trustee (Date) (Buyer) Charlene Friedges, City Clerk (Date) 33. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYERS AND SELLERS. 34. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MN -ASA (8/11) lnciae 's--