03-1137Return copy to: @n)
Real Estate Division
140 City Hall
Presented By
Re£erred To
Committee: Date
WHEREAS, the City of Saint Paul, acting through i�s Valuation & Assessment Engineer, has secured an
agreement for the purchase of one pazcel of real property, described as follows:
1067 Marshall Ave.
L,ot 24, Block 2, A. B. Wilgus Addition
a WHEREAS, said property described is necessary for Jimmy L,ee Acquisition and Re-development
9 Project, said property was Final Ordered for acquisition on August 12, 1998 with Council File #98-752.
io The value of the property for 1067 Marshall Ave. is One Hundred Sixty-Two Thousand Dollazs
i� ($162,000) these being a fair and reasonable values as deternuned by an independent appraiser; and
tz
is WHEREAS, the Valuation & Assessment Engineer has recommended the purchase of said property at
ia the recommended value;
IS
i6 NOW THEREFORE BE TT RESOLVED, that the proper City officials aze hereby authorized and
» directed to enter into a Purchase Agreement (attached) for the above referenced property and pay Public
rs Housing Agency of The City of Saint Paul (1067 Marshall Ave) $162,000 plus closing costs for the
�9 purchase of said property. Said sum to be charged to Activity Code: CO3-3H022-0881-34141.
Council File # �� �1
Green Sheet # � � ��
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA �,�
� es . .. ,
$5,000.00 as earnest money ("Ear e, w Earnest Money shall be
delivcred to Seller on or beYor av
$157,000.00 in cash, certified check, cashier's check or by wire �ransfer of fnnds
on the Closing Da�e (as hereinafter defined).
3. Closin . The closing of the purchase and sale contemplated by this Agreement (the
"Closing") shall occur within anet r�s after the date of this Ageement (the
"Gosing Date"), as the same may Ue modificd below. Closin� shall take place at che
office of Fabyansl<e, Westra � Hart, P.A., located at 800 LaSalle Avenue, Suice 1900,
Minneapolis, Minncsota, 55402. Sellcr agrees to deliver posscssion of the Property to
Buyer on the Closing Datc upon Seller's receipt o2 the Purchase Price. Notwithstandin�
the foregoin�, Closing shall be conringent on Seller's reccipt of an approval (the
��qPproval" e sa e
• • a ll-velopment
("HUD" Seller shall use its best efforts to obtain the Approval prior to Closing.
3.). Seller's Closin¢ Documents. n a e, e er s a 1 erecuce and
deliver to Buyer the following (collectivcly, "Seller's Closing Documents"), all in
form and con[cnt reason�b_1y_sadsfactory to Buyer:
3.1.1. Deed. lQ iu t Claim Dee (the "Aced") conveying ihc Real Yroperty [o
Buyer, fre cica atl encumbrances, except the Permitted
Encumbrances hereafter defined.
M7V-14-2a03 16�01
FAHYRNSKE LRW FIRM
PURCHASE AGREEMENT
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THIS PURCTiASE AGRLEMENT ("Agrcement") is made as of I�'ovember _, 2003, by
and betwecn the PUBLIC HOUSTNG AGENCY OF THE CITY OF SAIN"C PAUL, a public
body corporate and polide ("Seller"), and CITY OF SAINT PAUL, a public body corporate and
poliuc C`Buye�').
In consider�t�on of this A�eement, Seller and Buyer �;ree as follows:
i, Sale o� ert�. Seller agrees to sell to Buyer, and Buyer a��es to buy from Seller, the
following yroperty (collcctively, the "Property"): the real property located in the City of
Sc. Paul, Ramsey County, Minnesota, and ]eoally described as Lot 24, Block Z, A.B.
Wilaus Addi�ion to the City of Sain[ Paul (the "Land"), together with (1) all buildings
and improvemcnts constructed or located on the Land (the "Buildin�s"), and (2) all
easements and rights bcnefiting or appurtenant to the Land (collcctively, the "Real
Froperty" or the "Property").
?. PurchaSe Price and Manner of PaYment. The to�al purchase price (the "Purchase Price")
to be paid for the 1'roperry shall be One Hundred Sixty Two Thousand and No/100ths
Dollars ($162,000.00). The Purchase Price shall be payablc as follows:
2.1.
2.2
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3.1.2. FIRPTA Aftidavit. A non-foreign affidavit, properly executed, containing
such informacion as is required by IRC Section 1445(b)(2) end i[s
rcgnlations.
3.1.3. Well Cerdficate. A certificauon on the Dced certifying that there are no
weils on the Property or a well certificate if there is a wcll.
3.1.4. Stord;e Tanks. lf the firoperty cont�ins or contained an undertrround
storage tank, an affidavit with respect there�o, as reGuired by Minn. Siat. §
116.48.
3.t.S. Individual Sewaae Treatment Svstems. Tf the Propercy cont�ins an
individu�il se�va�e crcatment system, a disclosure statement as rcquired by
Minn. Stat. § 115.55.
3.1.6. Other pocuments. Aii documents reasonably determined by Buyer or
Title to be nccessary to transfer thc Property to Buyer frcc and clear of all
encumbrances, except the Permitted Encumbrances.
;.2. Buver's Closin� Documents. On the Closing Date, Buyer will executc and
deliver to Seller thc fo]lowin� (collectively, "Buyer's Closing Dvcuments"):
3.2.1. Purchase Price. Funds representing the Purchase Price, by wire transfer
and execution or delivery of a�zy required Seller's financing documents.
3.2:L. Certificate of Rca] Estate Value. A Cerrificate of Real Estate Value.
3.2.3. Other pocuments. All documencs rcasonably deteiminecl by Title to be
necessary to uansfer the Property to Buyer free and clear of all
encumbrances, except the Permi[ted Encumbrances.
4. Prorations. Scller and Buyer agree to the following prorations and allocalion of costs
regardin� this Agreement:
4.1. Title Insurance aiid Closinz Fee. Buyer will pay a11 costs, including all
examin�tion and search costs to obtain a title commitment in accordance with
Article 6 hereof. Buycr will pay all premiums required for the issuance of" any
'Fitle Policy and any endorsements requested by Buycr. Buyer will pay any
closing fec or char�e imposed by any closin? agen� or by the tiele eompany.
4.2. Deed Tax. Buyer shall pay all deed tax, if any, payable in connection with this
krans�ction.
4.3. Real Estate Taxes and Special Assessmentc. All rcal estate taxes and installments
of special <usessments or payments m lieu of taxes ("PILOT") payable in the
years prior to the year in which the Closing occurs shall be paid by Seller. Real
cstate taxes or any P1LOT p�yable in thc year in which Closing occurs, and
installments of Special Assessments payable therewith, shall he pro-rated on a
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daily basis as of the Closing Date, such that Seller pays that part of real estate
taxes and special assessments or PiLOT payabie before the Closing Date and
Buyer pays �hat part of the real estate taxes and special assessments payable on
and after the Closin� Date.
�Other Costs. A1 eiating costs of the Property, if any, shall be allocated
� be�ween Se11er and B iyer as of the Closing Date, so that Sellcr pays that patt of
operating costs pa le before the Closing Date, and Buyer pays that part of
C/ J �� „�/ operating coscs able on and aftcr the Closing Date.
c5'' � ��'
�'' 4.5. Attornev's Fees Each of the parties wilI pay its own auomey's fees.
� 5. Titic Examination. Ti[lc L-xamination wil] bc conducted as follows:
5.1.
Title Bvidence. Buyer shall, at its sole cost and expensc, within ten (10) days
after the date of this Agreement, obtain a commitmcnt ("Title CommitmenY') in
form satisfactory to Buyer. Buyer may„ a[ Buyer's own cost and expense,
preparc a survey ("Survey") for its own use. Buyer shall delivcr copies of the
Titic Commitmeni, and ]egible copies of all documenu refercnced therein to
Sellcr.
5.2. Buver's Obicctions. Within ten (lU) days ufter delivcry of the Tit1e Commitment,
legible copies of the documents referenced therein and the Survey (if ordered by
Buycr), Buyer will make written objeciions ("Objecdons") to thc status of title.
Buyer's failure to make Objectiuns within such time period �vill constitute waiver
of Objections. Any matter shown on the Title Commitment or the Survey (if
ordered by Buyer) and not objected to by Buyer shall be a"Permitted
Encumbrance" hereunder. Sel(er shall have no obli;auon to cure any Objection
(except to use its bes� efforts to release the Property from that certain Declaration
of Trust dated September 18, 1969, filed Scptember 19, 1969 as Document No.
1758645 (the "Declaration")). Tf the Objcctions are not cured prior to Closin;,
IIuyer will have the option to do any of the following:
$.2.1. Terminate this Pw�chase A�•eement upon written notice to Seller; or
5.2.2. Waive the objections and proceed to close.
6, Operation Prior to Closing. During the period from the date of Seller's acceptance of this
Agreement to the Closing Date (the "Executory Pcriod"), Seller shall operate and
maintain the Property in the ordinary course of business in accordlnce with prudent,
rcasonable business standards, including the maintenance of adequate liabiliry insuxance.
Seller shall execute no contracts, leases or other agreemencs re�arding the Property
during the Executory Period that are not terminablc on or beCore the Closing Da�c,
without the piior written consent of Buyer.
7. Representations and Wananties bv Scllcr. Seller represents and warrants to Buyer as
follo�vs:
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7.1. Existence; Authoritv. Seller has the requisite power and authority to enter into
and perform this Agreement, subject to approva] by �TIJD, dnd Sellcr's Closing
Documents; such documenis have been duly authorized by all necessary action;
such documents are valid and binding obtigations of Seller, and are enforceable in
accordance with their terms.
7.2. FIRPTA. Seller is not a"foreign person", "foreign partnership", "foreign trusP'
or "foreign estate", as those terms are defined in Sec�ion 1445 of the Intemal
Revenue Code.
7.3. Wells and Tndividual Sewase Treatment Svstcros. The Seller certifies and
warranu thac the Scllcr does not know of any "Wells" on d,e describcd Property
within the meaning of Minn. Stat. § lU3I or "Individual Sewage Treatment
Syscems" on the described Property within the meanino of Minn. Stat. § 115.55.
This representation is incended to satisfy the requirements of those sca[uces.
7.4. S[ora�e Tanks. No above eround or underground tanks are located in or about the
Propeny, or havc been located under, in or abou� the Property and h�ve
subsequently been removed or filled. To the extent stora�e tanks exist on or
under the Real Property, such stora�e [anks have been duly registcred with �11
appropri�te re�ulatory and governmen�al bodies, and otherwise are in compliance
with applicablc fcderal, state and local statutes, regulations, ordinances and other
regulatory requirements.
7.5. No Conflict or Lien. Neither the execuUOn or delivery of this A�reement nor the
consummation ot [he transaction as contemplated herein will conilict with or
result in a breach of any contract, license or undertaking to which Seller is a party
or by which any of its property is bound, or constitute u defauif thercunder or,
except as contemplated herein, result in the crcation of any lien or encumbrance
upon the Property.
7.6. No Proceedin�s. No lebal or administra�ive procceding is threatened or pending
a;ainst Seller which would adversely affect its right to convcy the Real Propeny
�o Buycr as contemplated in this Agreement.
no oroKers
and hold e
o[hcr such
execution
t�ction o�r/�
party, tncli
issiori Scller and Buyer represcn�c each other that�they h�ve dealt with
ers�or the lil<e in co ' a-w�it s a 'on, �id agree to indemnify
er harmle om all c1��ms, damages, cos s expenses of or for any
or c mis "ons resultin� (rom [hcir acdons .,reer�ents re�ardin3 the
aforman of d , �p y all costs of •defending any
't brought to covcr any such fees or camm�ssions incuncd by the other
reasonable attomeys' fecs.
9. Assi�nment. Either parcy may assign its rights under this Agreement before or nfter the
Closing. Any such assignment will not relieve svch assigning party of its obligations
under this Agreement.
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7 p. . Notices. Any notice required or pemvtted hereunder sli�ll be effcctive upon the cazlier of
the followin�: the date ot personal delivery upon an authorized representative of a party
hereto; or one (1) business day after deposit, fees prepaid, with a nation�ily recognized,
reputable ovemight courier, properly addressed as follows:
Tf to Buyer: City of Saint PauI — Real Estate Division
140 City Hall —15 West Kello�g Bivd.
Sainc Paul, Minnesota 5510i
If to Seller: Public Housing Agency of the City of Saint Paul
480 Cedar Street, Suite G00
S�int Paul, MN 55101
Attention: Jon �Crutzmann
With Copy to: �'abyanske, Wesha & Harl, P.A.
800 LaSaile Avenue, Suite 1900 (after 9/19/03)
Minneapolis, Minnesota 55402
Attention: Judith E. T{row, Esq.
Any party may designate an additional or altemarivc address upon giving notice to the
other panies pursuant to this para�•aph. For purposes of this paragraph, "business day"
shall mcan a day which is not a Ss�turday, Sunday or a legal holiday of the St�te of
Minnesot�i.
11. Miscellaneous. The parabraph headinos or captions appearing in this A�reemcnt are for
convenience only, are not a part of this A�reement, and are not to be considered in
in�erpreting this Agreemenc This written Agreement constitutes the complete agreement
between thc parties and supersedes any p�ior oral or written agreements between the
parties rcoarding the Property. There aa no vcrbal a�reements tfiat change this
Agreement, and no waiver of any of Sts tezms will be ef£ective unless in a writing
executed by the parties. This Agreement binds and benefits the partics and their
successors and assigns. This Agreement has becn made under the laws of the State of
Minnesota and such laws will control its interpretation. This Agreement may bc executed
in counterparts, each oC which shall be deemed an ori�inal but all of which shall
consritute one and the same instrument
12. Remedics. li Buyer defaults under this Agrccment, Seller shall have the right [o
terminate this A�reement by �ivin� w�itten noAce to Buyer. If Suyer fails to cure such
dcfault within thirty (30) days of the date of such notice, this Agreement will terminate,
and upon such termination Scller wil! retaiin thc Earnest Money, if any, as liquidatcd
damages, ume being of the essence of this Agreement. The fermination of this
Agrcement and retention of the Earnest Money will be the sole remedy available to Sellcr
for such default by Buyer, and Buycr will not be liable for damages or specific
performanca !f Seller defaults under this Agrccment, then Buycr may terminate chis
conaact or seek specific performance. If Buyer elects to terminate this Agreement, then
Buyer sh�U providc notice to Sellcr pursuant [o Minn. Stat � 559.21 and upon the
expir:�tion oF thc applicable cure period, the Eamcst Money shall be re[urned to Buyer.
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13. Reloca�ion Benefits. Buyer and Seller a� ee that the Purchase Pricc has been established
through negotiation and represents the total amount that will be due and payabie to Seller
by reason of this �ransaction. Seller specifically acknowled;es and agrees that neither
Buyer nor any pvblic entity or body shall have any obligation to pay or provide to Seller
any relocation assistance, scrvices, payments or benefits; provided however, that st�ch
assistance shall be paid by Buyer to Seller's tenants. Additionally, Seller expressly
waives any cIaim to relocacion assistance, services, benefits or p�yments tor icself.
14. Inspcction. Seller shall allow Buyer, and Buyer's agents, immediate access to the
Property without charge and at all reasonable times, but subject to the rights of any
tenants, for the purpose of Buyer's investigation and tcscing the same. Seller shall make
available to Buyer and Buyer's agents without charoe all plans and spccifications,
records, inventories, permits and correspondence in Seller's possession relating to
Haiarcious Substances affectin� the Property; and the righi to interview employees of
Seller who may have knowledgc of such matters. After any investigation or [escino,
Seller shall restore the Property to its ori;inal condition �.s of the date of [esting. Buyer
understa�ids that it is purchasing the Property "AS-TS, WHERE-IS AND WTTH ALL
FAYJI.TS". Seiler shall notify Buyer of ics dcsire to inspect the Real Property at least two
days in advance so that Seller may give Scller's tenants appropriatc notice pursuant to
requirements in its Dwelling Lease with thc tenants.
15. Casualtv/Cvndemnation. In the event of casualty to the Property, this Aorccment shall
remain in full foree and effect with Seller keeping any and all insurance proceeds. Tn the
event of condemnation, either pany may cancel this Agreement and the Eamest Money
shall be returned to Buyer.
Seller and Buyer have cxecuted this A,reement as of the date first writtcn above.
pUBLIC HOUSING AGENCY OF
THE CITY OF SAINT PAUL
�
Tts:
Its:
tv:�rweK�zxi iao.da
0
CITY OF SAINT PAUL
�
Tnra o aa
'' Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet
b3113�
DepartmenUofficelcouncil: Date Initiated:
TE' ���ologyandManagementServ 09-DEG03 Green Sheet NO: 3008957
Contact Person & Phone: Deoartrnent Sent To Person InitiaUDate
Pete� W hite � 0 ech I and Mana ement 7
A55ign 1 i Attome Me han Rile a'' ` �
Must Be on CounCil Agenda by (Date): Number 2 echnolo and ana ement S De t Direc r ��1,,
24DEC-03 For 3 a or's Office � Ma or/Assistant
Routing
Order 4 ouncil
5 i Clerk Cit Clerk
6 echnolo and Mana emen[ S Bob Novak
Total # of Signature Pages _(Clip All Locations for Signature)
Action Requested:
Sign Council Resolution authorizing the purchase of land (1 pazcel) for the Jimmy I.ee Rec. Center Acquistion and Redevelopment
Project. Council File #98-752
Recommendations: Approve (A) or Reject (R): Personal Service Contrects Must Answer the Following Questions:
Planning Commission 1. Has this person/firm ever worked under a contract for this department?
CIB Committee Yes � No
Civil Service Commission 2. Has this person/firm ever been a city employee?
Yes No
3. Does this person/firm possess a skiil not normally possessed by any
current city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
Initiating Problem, Issues, Opportunity(Who, What, When, Where, Why):
Advantagesif Approved:
The City will be able to develop the site with neighborhood pazk amenities including landscaping, ball fields and additional pazking and
will make future expansion possible.
DisadvanWqes If Approved:
None
DisadvanWges If Not Approved:
The City will be unable to expand the site for neighborhood programs
Total Amount of 162000 CostlRevenue Budgeted:
Transaction:
Funtlinp Source: CIB Activitv Number: :,;s �'°�»?�°!'�? +.'
Financialinfo(maPon: ��� � � ����
Ex lain �
: � '�
�
C2TY Os SAIbIT PAUL
F2NA?, ORDER SN
CONDEMNARSON PROCEEDILIGS
03',�31
COIINCSL FSLE 7, � �
SY
F S I3 18 80
YQT2N �
In the Matter of condemning a*id taking of property rights �s required z"or the J�y
Lee Recreation Center Acquisition and Redevelopment (C98-38021} , such property
riahts descrii�ed as follows:
Lots 3 thru 14 and LoTS 17 thru 28 Block 2 A. B. VJiiQus Addition Yo The City of St Paul,
North 50 feet of West 113 feet of Qart sou[h of Rondo Ave. and East of Lexin�ton Pkwy of Lots 9 and I Q Bue1 & Mackubin Out Iots in
Township 29 Range 23;
South 50 feet of North I 10 feet of West 113 feet of part East of Lexin,on Pkwy and South of Rondo Ave. of Lots 9 and 10, Buel &
Mackubin Out lots in Township 29 Ranae 23; -
Except South 97 3?11Q0 feet paz2 of lots 10 thru 14 H[ock 2, G. V. Bacoa's Su6division Adjacent following and in said Buet aad
blackubin Out L ots except North 1 IO feet of tivut 113 feet part South of Rondo Ave. and East of Le�na on Pkwy of Lots 9 and 10, Buel
& Mackubin Out lots in Township 29 Range 23;
G. V. Bacon's Subdivision Except Izzina on Pkwy Norrh 47 32/100 feet of South 97 32/100 feet of I.ots I2, 13 and 14, Biock 2;
G. V. Bacons Subdivision South 50 feec oi Locs 12 and 13, South 50 feet of F,ast 33 fee[ of Lot 14, Btoc?c 2.
uader Preliminary Order `�115"'
A public heasirig having been had upon the abovs improv�ent Upon nue notice,
and tn.e Council having heard a11 persons, objections and rzcommendati,ons reiacive
thereto, and having fully considered the same; therefore, be it
RESOLVED, That the Council of the City of 5aint Paul hereby orders said
improvement to be made.
RESOLVED FiTRTHER, That the Council hereby determines the estate required
for this improvement to be fee simple, absolute and easements as described
above; and the City officers and City Attorney are hereby authorized and
directed to take all actions necessary to acquire said real estate by pu=chase or
eminent domain.
• V �
- ' I�
I
Yeas Nays
Benanav._ A.ese.rr
�-- Blakey
r� Bostrom
✓ Coleman
,i Harris �_In Favor
✓ Lantry
,/Reiter _(�Against
Adopted by Council: Date1��-,!��ij' /�,.�/��
CertiEie 'passed
By---��.r^-C�<��-,�5.4-'-
Secreta�
Mayor