08-300AMENDED 3/19/08
RESOLUTION
coun�uFae# b8-300
Green Sheet # 3048855
MINNESOTA
�n�-
1 Wf�REAS, Depariment of Safety and Inspections has requested the City Council to
2 hold public hearings to consider the advisability and necessity of ordering the repair or wrecking
3 and removal of a one and one-half story, wood frame dwelling with an attached, one stall garage
4 located on property hereina$er referred to as the "Subject Property" and commonly known as
5 800 ROBERT STREET SOUTH. This properiy is legally described as follows, to wit:
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AUDITOR'S SUBDIVISION OF LOT 6, BIDWELL'S ADDITION TO WEST ST. PAUL LOT
WHEREAS, based upon the records in the Ramsey County Recorder's Office and
information obtained by Department of Safety and Inspections on or before April 2, 2007, the
following are the now known interested or responsible parties for the Subject Property: Nathan
A Torgerson, 14262 10` St. N, Stillwater, MN 55082; Gary Torgerson, 51495 Belleisle Drive,
Rush City, MN 55069; David Johnson, 476 Cleveland Ave S, St. Paul, MN 55105; West Side
Citizens Organization.
WHEREAS, Department of Safety and Inspections has served in accordance with the
provisions of Chapter 45 of the Saint Paul Legislative Code an order identified as an"Order to
Abate Nuisance Building(s)" dated November 6, 2007; and
WHEREAS, this order informed the then known interested or responsible parties that the
structure located on the Subject Property is a nuisance building(s) pursuant to Chapter 45; and
WHEREAS, this order informed the interested or responsible parties that they must repair
or demolish the structure located on the Subject Property by December 6, 2007; and
WHEREAS, the enforcement officer has posted a placard on the Subject Property
declaring this building(s) to constitute a nuisance condition; subject to demolition; and
WHEREAS, this nuisance condition has not been corrected and Department of Safety
and Inspections requested that the City Clerk schedule public hearings before the Legislative
Hearing Officer of the City Council and the Saint Paul City Council; and
WI3EREAS, the interested and responsible parties have been served notice in accordance
with the provisions of Chapter 45 of the Saint Paul Legislative Code, of the time, date, place and
purpose of the public hearings; and
WHEREAS, a hearing was held before the Legislative Hearing Officer of the Saint Paul
City Council on Tuesday, February 26, 2008 to hear testimony and evidence, and after
receiving testimony and evidence, made the recommendation to approve the request to order the
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interested or responsible parties to make the Subject Property safe and not detrimental to the
public peace, health, safety and welfare and remove its blighting influence on the community by
rehabilitating this shucture in accordance with all applicable codes and ordinances, or in the
altemative by demolishing and removing the structure in accordance with all applicable codes
and ordinances. The rehabilitation or demolition of the structure to be completed within fifteen
(15) days after the date of the Council Hearing; and
WHEREAS, a hearing was held before the Saint Paul City Council on Wednesday
March 19, 2008 and the testimony and evidence including the action taken by the Legislative
Hearing Officer was considered by the Council; now therefore
BE IT RESOLVED, that based upon the testunony and evidence presented at the above
referenced public hearings, the Saint Paul City Council hereby adopts the following Findings and
Order concerning the Subject Property at 800 ROBERT STREET SOUTH.
1.
2.
3.
That the Subject Property comprises a nuisance condition as defined in Saint Paul
Legislative Code, Chapter 45.
That the costs of demolition and removal of this building(s) is estimated to exceed
five thousand dollars ($5,000.00).
That there now exists and has existed multiple Housing or Building code
violations at the Subject Property.
4. That an Order to Abate Nuisance Building(s) was sent to the then lrnown
responsible parties to correct the deficiencies or to demolish and remove the
building(s).
5. That the deficiencies causing this nuisance condition have not been corrected.
6. That Deparhnent of Safety and Inspections has posted a placard on the Subject
Property which declares it to be a nuisance condition subj ect to demolition.
7. That this building has been routinely monitored by Deparhnent of Safety and
Inspections, Vacant/Nuisance Buildings.
8. That the known interested parties and owners are as previously stated in this
resolution and that the notification requirements of Chapter 45 have been fulfilled.
�•�_.'
The Saint Paul City Council hereby makes the following arder:
The above referenced interested or responsible parties shall make the Subject Property
safe and not detrimental to the public peace, health, safety and welfare and remove its
blighting influence on the community .,�?:ao:���,a���,.s� a; ;�c�a�,—���r�� ar�"
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.7.,�,.:��...;,,.. .. .:l.e.i ;« ti.e .,1....,e «eF �„�....,,] !1"7.,� a.. A t...a.� TT..;...,....e 8..;7.7;..../�\ ;..
,..-a..,,,.e ..,:.w .,n ,,....i:,.,.�.i,. ..,.a,... .,,,a ,...a;,,.,,,,.e.. ,.,. ., «t,e ..t.e.,,.,,;.,e by demo11sh1ng
>—
and removing the structure in accordance with all applicable codes and ordinances. The
�+�1� demolition and removal of the structure must be completed within
fdteen (15) days after the date of the Council Hearing.
2. If the above conective action is not completed within this period of time Department of
Safety and Inspecrions is hereby authorized to take whatever steps aze necessary to
demolish and remove this structure, fill the site and charge the costs incurred against the
Subject Property pursuant to the provisions of Chapter 45 of the Saint Paul Le�slative
Code.
3. In the event the building is to be demolished and removed by the City of Saint Paul, all
personal property or fixtures of any kind which interfere with the demolition and removal
shall be removed from the property by the responsible parties by the end of this time
period. If all personal property is not removed, it shall be considered to be abandoned
and the City of Saint Paul shall remove and dispose of such property as provided by law.
Q
Bostrom
Carter
Hazris
Thune
Adopted by Council: Date
Yeas
✓
✓
Absent I Requested by Department of:
Adoption Certified by Council Secretary
By: � � i
Approved b r: Date b'
By:
It is fiirther ardered, that a copy of this resolution be mailed to the owners and interested
parties in accordance with Chapter 45 of the Saint Paul Legislative Code.
Safety and Inspections
Code Enforcement / Vacant
�
Form Appxoved by City Attorney
By:
Forxn Approved by Mayor for Submission to Council
By:
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
6$'�6b
$� — Dept oFSafeTy & Inspecdons � '16JAN-08
ConWCt Person g Phone:
Bob Kessler
266-9013
Must Be on Council Aaen
Doc.Type: RESOLUTION
E-Oocument Required: N
Document ConWCt:
�
Assign
Number
Fof
Routing
Order
Contact Phone:
Total # of Signature Pages _(Clip Ail Locations for Signature)
Green Sheet NO: 3048855
0 eot of Safetv & Iusoections
1 e L of Safe & Ins ections De aNnent D'veMOr
2 i Attoroe
3 a oYs OfLce Ma oHAssistant
4 ouncil
5 'ty_ Clerk _ Citv Clerk I
City Council to pass this resolution which will order the owner(s) to remove or repair the referenced building(s). If the owner fails to
comply with the resolution, the Department of Safety and Inspectious is ordered to remove the building. The subject property is
located at 800 ROBERT ST S.
iaanons. Approve (A) or R
Planning Commission
CIB Committee
Civil Service Commission
1. Has this person/firm ever worked under a contract for this department?
Yes No
2. Has this person/firm ever been a city employee?
Yes No
3. Does this person/firm possess a skill not normally possessed by any
current city employee?
Yes No
Explain all yes answers on separete sheet and attach to green sheet
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
This building(s) ls a nuisance building(s) as defined in Chapter 45 and a vacant building as defined in Chapter 43 of the Saint Paul
Legislative Code. The owners, interested parties and responsible parties known to the Enforcement Of6cer were given an order to
repair or remove the building at 800 ROBERT ST S by December 6, 2007, and have failed [o comply with those orders.
Advantages lf Approved:
The City,will eliminate a nuisance.
Disadvantages If Approved:
The City will spend funds to wreck and reraove this building(s). These costs will be assessed to the property, collected as a special
assessment against the property taxes.
A nuisance condition will remain unabated in the City. This building(s) will continue to blight the community.
Disadvantages If Not Approved:
A nuisance condition will remain unabated in the City. This building(s) will continue to blight the community.
�, 7ransactiorc CosURevenue Budgeted:
Funding source: Nuisance Housing Abatement /activiry Number: 001-00257
Fi nancial lnformation:
(Explain)
S!'CD4 � � L.G
�
January 16, 2008 1028 AM Page 1
DEPARTMENT OF SAFETY l�ND INSPECTIONS
Dick Lt pert, _Manager of Code Enforcement
CITY O� S�'�1T PAUL
Nuisance Building Enforcement
��30D
Christopher B. Cdeman, Mayor
1600 tiVhite Bear Ave N
SaintPav.l, �vIN5�106
i
January 18, 2008
NOTICE OF PUBLIC HEARINGS
Council President and
Members of the City Council
Tel. (6i1) 266-1900
Fax: (657j 266-1926
Department of Safety and Inspecflons, Vacant/Nuisance Buildings Enforcement Division has
requested the City Council schedule public hearings to consider a resolution ordering the repair
or removal of the nuisance building(s) located at:
S00 ROBERT ST S
The City Council has scheduled the date of these hearings as follows:
Legislative Hearing - Tuesday, February 26, 2008
City Council Hearing - Wednesday March 19, 2008
The owners and responsible parties of record are:
Name and Last Known Address
Nathan A Torgerson
14262 l Oth St N
Srillwater MN 55082-2002
Gary Torgerson
51495 Belleisle Drive
Rush City MN 55069
David 3ohnson
476 Cleveland Ave S
St. Paul, MN 55105
West Side Citizens Organization
info cr,wsco.ort
westsidesafe(c� Qmail.com
Interest
Fee Owner
Certificate of Occupancy
Responsible Party
Interested Party
District Council Contact
AA-ADA-EEO Employer
800 ROBERT ST S
January 18, 2008
page 2
The legal description of this property is:
og- 360
AUDITOR'S SU - BDIVISION OF LOT 6, BIDWELL'S ADDTTION TO R'EST ST. PAUL
LOT 2
The Department of Safety and Inspections has declazed this building(s) to constitute a"nuisance"
as defined by Legislative Code, Chapter 45. The Department of Safety and Inspections has
issued an order to the then known responsible parties to eluninate this nuisance condition by
correcting the deficiencies or by razing and removing this building(s).
The property was re-inspected on December 6, 2007. There was no compliance and the nuisance
condition remains unabated, the community continues to suffer the blighting influence of this
property. It is the recommendation of the Department of Safety and Inspections that the City
Council pass a resolution ordering the responsible parties to either repair, or demolish and
remove this building in a timely manner, and failing that, authorize the Department of Safety and
Inspections to proceed to demolition and removal, and to assess the costs incurred against the
real estate as a special assessment to be collected in the same manner as taxes.
Sincerely,
Steve Magner
Steve Magner
Vacant Buildings Manager
Deparhnent of Safety and Inspections
SM:nm
cc: Chad Staul, City Attorneys Office
Mary Erickson, Assistant Secretary to the Council
Cindy Carlson, PED-Housing Division
Nancy Homans, Invest St. Paul
District Council — Community Organizer
pubhmg60183 12/07
DB �360
SUMMARY FOR PUBLIC HEARING
800 Robert Street South
Legislative Hearing — Tuesday, February 26, 2008
City Council — Wednesday, March 19, 2008
The building is a one and one-half story, wood frame, single-family dwelling with an attached
one stall garage on a lot of 3,920 squaze feet.
According to our files, it has been a vacant building since August 8, 2007.
The current property owner is Nathan Torgerson, per AMANDA and Ramsey county property
records.
There have been three (3) SUMMARY ABATEMENT NOTICES since 2007.
On October 12, 2007, an inspection of the building was conducted, a list of deficiencies which
constitute a nuisance condition was developed and photographs were taken. An ORDER TO
ABATE A NUISANCE BUILDING was posted on November 6, 2007 with a compliance date of
December 6, 2007. As of this date this property remains in a condition which comprises a
nuisance as defined by the legislative code.
The Vacant Building registration fees are paid.
Taxation has placed an estimated market value of $35,700 on the land and $90,900 on the
building.
As of February 25, 2008, a Code Compliance inspection has not been completed.
As of February 25, 2008, the $5,000.00 performance bond has not been posted.
Real Estate taxes for the years 2005, 2006 and 2007 are delinquent in the amount of $8,252.26
plus penalty and interest.
Code Enforcement Officers estimate the cost to repair this structure is $75,000 to $85,000. The
estimated cost to Demolish is $8,600 to $11,600.
NHPl, Division of Code Enforcement Resolution submitted for consideration orders the property
owner to repair or remove this structure within fifteen (15) days, if not the resolution authorizes
the Division of Code Enforcement to demolish and assess the costs to the propert}�.
: ax & Property Chazacteristic Information - Structure Description
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> Structure Description
Property Identification 08.28.22.34.0068
Number (PIN)
Property Address 800 Robert St S
St. Paul 55107-3248
Residential Property:
Year Built 1917
# of Stories 1.00
Style One Story
Exterior Wail Asbestos
Total Rooms 5
Total Family Rooms 0
Total Bedrooms 2
Full Baths 1
Half Baths 0
Attic Type Unfinished
Finished SQ Feet 832
Foundation Size 832
Basement Area Finished
Pinished Rec Area
Current Propert�Tax
Statement/Value Notice
2006 Property Tax
StatementlValue Notice
2005 Pr sperty Tax
Statement Value Notice
2004 Prapert Tax
StatemerttlValue Notice
Garage Type Detached
Area (sq.ft.) 286
Parcel5ize .09 Acres
Parcel Width 49.00 Feet
Parcel Depth 81.00 Feet
Land Use Code 510
Land Use Description R- Single Family Dwelling,
Platted Lot
http:(/rrinfo.co samsey.mn.uslpublic/characterisfic/Parcel.pasp?scrn=Dwelling&pin=08282... 2/25/2008
DEPARTMENT OF SAFETY AND INSPECTIONS
' Dick L�ppert, Manager of Code Enforcement
CITY OF SAINT PAUL
Christopher B. Coleman, Mayor
Nuuance Building Enforcement
08-3aa
1600 White Bear Ave N
Saint Paul, MN 55106
November 6, 2007
Nathan A Torgerson
14262 l Oth St N
Stillwater MN 55082-2002
Gary Torgerson
51495 Belleisle Drive
Rush City, MN 55069
David Johnson
476 Cleveland Ave S
St. Paul, MN 55105
Order to Abate Nuisance Building(s)
Dear : Sir or Madam
Tel: (651) 266-1900
Fax: (651) 266-1926
The Vacant/Nuisance Buildings Unit, Department of the Department of Safety and
Inspections, Division of Code Enforcement, hereby declares the premises located at:
800 ROBERT ST S
and legally described as follows, to wit:
AUDITOR'S SUBDIVISION OF LOT 6, BIDWELL'S ADDITION TO WEST
ST. PAUL LOT 2
to comprise a nuisance condition in violation of the Saint Paul Legislative Code,
Chapter 45.02, and subject to demolition under authority of Chapter 45.11.
On October 12, 2007, a Building Deficiency Inspection Report was compiled and the
following conditions were observed.
This list of deficiencies is not necessarily all the deficiencies present at this
time. As first remedial action, a Code Compliance Inspection must be
obtained from the Building Inspection and Design Section, 8 Fourth Street
East, Suite 200, Commerce Building (651)266-9090. That inspection will
identify specitic defects, necessary repairs and legal requirements to
correct this nuisance condition. You may also be required to post a five
thousand dollar ($5,000.00) performance bond with the Building
Inspection and Design Office before any permits are issued, except for a
demolition permit.
AA-ADA-EEO Employer
November 6, 2007
800 ROBERT ST S
page 2
a$ �36b
This building(s) is subject to the restrictions of Saint Paul Ordinance Chapter
33.03 and shall not again be used for occupancy until such time as a Certificate
of Compliance or a Certificate of Occupancy has been issued.
This is a one and one-haif story, wood frame dwelling with an attached one stall
garage.
1. The eaves and soffits are in a state of disrepair or deterioration. Repair
all defects, holes, breaks, loose or rotting boards, to a professional state
of maintenance. Permit may be required.
2. Lack of Electricity. Immediately restore electrical service. Failure to
provide proper electrical service will result in these premises being
declared Unfit for Human Habitation and ordered vacated for lack of
this basic facility. Use of candles, fuel operated lighting or extension
cord wiring is not permitted while the power is off.
The foundation is deteriorated, defective or in a state of disrepair.
Repair all foundation defects in a professional manner to a
weather-tight, water-tight and rodent-proof condition. Permit may be
required.
4. FIJRNACE: Have a licensed heating contractor service and clean the
furnace or boiler and make any necessary repairs. Perform a C(O test on
the heating plant. Then, send the attached form back to the Inspector.
Repair of gas fired appliances requires a permit.
Lack of Natural Gas Service. Immediately restore natural gas service.
Failure to provide natural gas service will result in these premises being
declared Unfit for Human Habitation and ordered vacated for lack of
this basic facility.
6. The interior ceilings are defective. Repair all ceiling defects and finish
in a professional manner.
7. The interior walls are defective. Repair all wall defects and finish in a
professional manner.
8. The required ownership posting is missing. Provide in accordance with
the attached Notice.
9. There is evidence of a rodent infestation. Immediately exterminate and
eliminate all rodents from the entire building. Remove rodent
harborages in the yard azeas. Tuckpoint the foundation if necessazy to
rodent-proof the building to prevent re-infestation. Immediately remove
any dead rodents from the premises.
November 6, 2007
800 ROBERT ST S
page 3
I� /I
10. The roof is deteriorated, defective, or in a state of disrepair. Repair or
replace the roof covering to a sound, tight and water impervious
condition. Permit may be required.
1 l. Smoke Detector: Lack of properly installed and operable smoke
detector. Provide functioning smoke detectors in accordance with the
attached requirement, within 24 hours.
12. The exterior walls of the house and/or garage are defecrive. Repair all
holes, breaks, loose or rotting siding, to a professional state of
maintenance.
13. The exterior walls of the house are defective. Repair all holes, breaks,
loose or rotting siding, to a professional state of maintenance.
14. The structure is a registered vacant building and must have a Code
Compliance Certificate before the structure may be occupied.
Immediately vacate the structure or obtain a Code Compliance
Certiticate from L.I.E.P. You may contact Jim Seeger at L.I.E.P. for
code compliance inspection, permits, and issuance of Code Compliance
Certificate. Under Chapter 33.03 of the Saint Paul Legislative Code,
failure to obtain a Code Compliance Certificate ar to vacate the
structure may result in issuance of criminal summonses.
15. Lack of Water Service. Immediately restore water service. Failure to
provide water service will result in these premises being declared Unfit
for Human Habitation and ordered vacated for lack of this basic facility.
16. The window and/or door screens are missing, defective or in a state of
disrepair. Provide proper window and door screens for all openable
windows and doors. Screens must be tight-fitting and securely fastened
to the frames.
17. The windows and/or storm windows are in a state of disrepair. Replace
all missing or broken window glass. Make all necessary repairs to
frames, sashes, hardware and associated trim in a professional manner.
Permit may be required.
18. Interior of house and garage have mold. Remediate all mold.
19. There is open electrical components; missing cover plates; missing light
fixhzre globes; open electrical panel. Repair the electrical system to
meet current NEC requirements. Permit required.
20. There are open plumbing lines. Repair plumbing facilities to meet
current code requirements. Permit required.
vovember 6, 2007
800 ROBERT ST S Qg '
page 4
21. There are improperly cut, notched or unsupported beam in basement;
post in contact with floor, water damaged. Repair post and beam in
basement to meet current code requirements. Permit required.
22. There are unheadered, unsupported floor joists in basement. Repair
floor joist system to meet current code requirements.
23. The garage roof is collapsing; damaged walls. Repair the garage in a
workmanlike manner. Permit required.
As owner, agent or responsible party, you are hereby notified that if these deficiencies and
the resulting nuisance condition is not corrected by December 6, 20Q7 the Department of
Safety and Inspections, Division of Code Enforcement, will begin a substantial abatement
process to demolish and remove the building(s). The costs of this action, including
administrative costs and demolition costs will be assessed against the property taxes as a
special assessment in accordance with law.
As first remedial action, a Code Compliance Inspection Report must be obtained from the
Building Inspection and Design Section, 8 Fourth Street, Suite #200, Commerce
Building, (651)266-9090. This inspection will identify specific defects, necessary repairs
and legal requirements to correct this nuisance condition.
As an owner or responsible party, you are required by law to provide full and complete
disclosure of this "Order to Abate" to all interested parties, all present or subsequent
renters and any subsequent owners. If you sell, transfer, or convey in any manner, the
ownership or responsibility for this property, you must within seven (7) days, notify the
Enfarcement Officer with the names and addresses of any new owners or responsible
parties.
The Enforcement Officer is required by law to post a placard on this property which
declares it to be a"nuisance condirion", subject to demolition and removal by the City.
This placard shall not be removed without the written authority of the Department of
Safety and Inspections, Division of Code Enforcement. The department is further
required to file a copy of this "Order to Abate" with the City Clerk's Office.
If corrective action is not taken within the time specified in this order, the Enforcement
Officer will notify the City Council that abatement action is necessary. The City Clerk
will then schedule dates far Public Hearings before the City Council at which time
testimony will be heard from interested parties. After this hearing the City Council will
adopt a resolution stating what action if any, it deems appropriate.
If the resolution calls for abatement action the Council may either order the City to take
the abatement acCion or fix a rime within which this nuisance must be abated in
accordance with the provisaons of Chapter 33 of the Saint Paul Legislative Code and
provide that if conective action is not taken within the specified time, the City shall abate
this nuisance. The costs of this action, including administrative costs will be assessed
against the property as a special assessment in accordance with law.
November 6, 2007
800 ROBERT ST S D� ��/ b
page 5
If you have any questions or request additional information please contact Dennis Senty
between the hours of 8:00 and 9:30 a.m. at 651-266-1930, or you may leave a voice mail
message.
Sincerely,
Steve Magner
Vacant Buildings Program Manager
Division of Code Enforcement
ca Mary Erickson - Council Research
Cindy Carlson - PED Housing
Amy Spong — Heritage Preservation
ora60135 6/07
1�� -3�D
Quote Number: Q-26278-5
Demo zt 8OD 12obert 5f: S.
DSI
Buyez: Mark Evan�elist �.l�
0 ening Date: December 13, 2007 Lump Sum $id
Buberl Recycling & Composting Tnc
12ob Buberl $12,740.00
651-439-8399
Fraftalone Companies
Dylan Lazson $15,000.00
651-4340448
Goodmanson Construction
Bryan Dan � 18,032.00
651-636-4996
Ray Anderson & Sons
Richazd Orthxneyer $17,200.OQ
651-774-2�50
Rayco Excavating Inc
Rory Matter $14
612-619-1437
Roger Peterson Construction
�oger Peterson $21,150.00
763-784-8245
Semple Excavaring
Ju1ie Semple No Bid
651-772-1a49
SpeckTaculaz Companies
Chulie 5peekmann `'������Q :<��
952-461-5255
Urban Companies
Greg Urban $15,000.00
651-243-9830
Qa oroTa6/t 2•13-07/ME:ma
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STATE OF MINNESOTA
AFFtDAVIT OF NOT FOUND
COUNTY OF RAMSEY
METRO LEGAL SERVICES
Steven J. Peterson, agent for Metro Legal Services, Inc., being first duly sworn on oath,
deposes and states that agents in hislher employ attempted to serve the attached
Notice of Pubiic Hearing upon the within-named Nathan A. Torgerson, at his/her last
known address located at 14262 — 10'" Street North, West Lakeland Township, County
of Washington, State of Minnesota, and was unable to 4ocate himlher there for the
purpose of effecting personal service of process.
FURTHER YOUR AFFIANT SAITH NOT.
Subscribed and sworn to before me
February 11, 2008.
� � No r � Public
.
�� KARL M. NEHER �
NOTARYPUBLIC-MINNESOTA
4AY Commission ExDVes Jan.3t.261�
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Re: S00 Robert Street South
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February 26, 2008 Legislative Hearing Minutes �a'�j � Page 5
6. Ordering the owner to remove or repair the building(s) at 800 Robert Street South within
fifteen (15) days from adoption ofresolution.
The property owner of record, Nathan Torgerson, did not appear. Gary Torgerson stated that he
was appearing on behalf of his son, Nathan,
Mr. Magner stated the building was a one and one-half story, wood frame, single-fanuly dwelling
with an attached one stall garage on a lot of 3,920 square feet and had been vacant since August 8,
2007. A code compliance inspection had not been done and the $5,000 performance bond had not
been posted. The vacant building registrarion fees were current. On October 12, 2007, an
inspection of the building was done and a list of deficiencies which consritute a nuisance condition
was developed. An order to abate a nuisance building was posted on November 6, 2007 with a
compliance date of December 6, 2007. To date, the property remained in a condition which
comprised a nuisance as defined by the Legislative Code. Ramsey County Taxation estimated the
mazket value of the land to be approxnnately $35,700 and the building to be $90,900. Real estate
taxes for 2005, 2006, and 2007 were delinquent in the amount of $8,252.26, plus penalty and
interest. Code Enforcement estunates the cost to repair the building to be approximately $75,000 to
$85,000. The cost for demolition was estimated to be approximately $8,600 to $11,600. There had
also been three siumnary abatements issued to this property since 2007. Mr. Magner noted that a
suminary abatement order was issued to clear the sidewalk, the property was re-inspected and was
not in compliance. He stated that a work order was being issued today. Code Enforcement
recommends the building be repaired ar removed within 15 days. Mr. Magner presented
photographs of the property.
Ms. Moermond asked for a report from Ms. Spong. Ms. Spong stated that this building was built in
1917 and was a workers-cottage style house. It had not been inventoried and the entire block lacked
integrity from a historic perspective. In looking at the photos, it was difficult to determine the
extent that the exterior had been altered. She stated that the builder was listed as the Modern
Buiiding Company and she was unsure if it was termed a"catalog house."
Ms. Moermond asked how they became aware this was a vacant building. Mr. Magner stated that
DSI-Fire revoked the Certificate of Occupancy on a condemnation on July 31, 2007.
Mr. Torgerson stated that approximately two and one-half years ago, Dauid R. Johnson sold eight
properties to Selwin Ortega who wallced away from all of the properties, including this property.
Litigation ensued and he and his son agreed to maintain the property during the dwation of the
litigation. This matter was settled in court a couple of months ago and David R. Johnson agreed to
issue a mortgage to Nathan to purchase this property and he had co-signed the loan for his son. He
stated that he and his son maintained approximately 65 properties and he could not understand why
there were surmnary abatement orders being issued since they had crews who shoveled, etc. They
were now taking pictures and dating them to prove that they were doing the work.
Ms. Moermond stated that according to the record, there were three suminary abatement orders that
had been issued, none of which went to work orders. It was possible that during routine monitoring,
the inspector was finding an issue that needed to be addressed and a suimnary abatement order was
issued. She asked Mr. Torgerson if he believed they were being targeted.
February 26, 2008 Legislative Aearing Minutes �$ � J� Page 10
Mr. Torgerson responded that they maintained 65 properties and the only letters he received had his
name on them. Mr. Magner asked how he would zeceive other letters if they didn't have his natne
on them. Mr. Torgerson responded that all letters were passed on to him as they were responsible
for maintaining the properties for the lenders. Mr. Magner asked how he could be sure that they
were passing on these letters. He asked Mr. Torgerson to give him an address that he could look up
to see if any summary abatement orders had been issued that had his name on them. Mr. Torgerson
stated that he had a list of properties that they maintained that he did not want to provide.
Ms. Moermond stated that the hearing was not about suimnary abatement orders that had been
issued and if Mr. Torgerson was issued an order that he believed was not fair, he could appeal the
order and she would conduct a sepazate hearing. She asked Mr. Torgerson about the plans to
rehabilitate the property.
Mr. Torgerson stated that it was their intention to rehab the building and that they had the funding to
do so. Ms. Moermond expressed concern that if they had the money, why they hadn't paid the
property taaces and why the bond had not been posted, e�pecially since he had indicated that the
litigation had concluded several months ago.
Mr. Torgerson responded that the litigation with Selwin Ortega had been resolved and now he had
to settle matters between David R. Johnson and himself. Ms. Moermond asked if this had been
resolved. Mr. Torgerson responded that the attorneys and parties had met the previous week and
worked out an agreement. Ms. Moermond asked whether he could provide the agreement. Mr.
Torgerson responded that he could provide the agreement.
Ms. Moermond stated that the following must be submitted by Wednesday, March 12: 1) the code
compliance inspection must be completed; 2) the performance bond must be posted; 3) the property
taXes must be paid; 4) an approved work plan; 5) financial documentation demonstrating the ability
to complete the repairs; 6) documentation from Nathan Torgerson granting permission to represent
him in this matter which she wouid have the City Attomey review; and 7) a copy of the settlement
agreement between David R. Johnson and Nathan and Gary Torgerson.
Recommendation is forthcoming.
CLTS O'
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Mazch 17, 2008
CITY OF SAINT PAUL
OFFICE OF TI� CITY COUNCII.
310 CTTY HAi i.
15 WEST KELLOGG BOULEVARD
SAIIVT PALJL, MN 55102-1615
PHONE: (651) 266-8560 FAX: (651) 266-8574
VIA EMAIL: gtorge@msn.com
Gary Torgerson
51495 Belle Isle Drive
Rush City, MN 55069
Re: Remove or Repair 800 Robert Street South
Dear Mr. Torgerson:
�� �- �b�
You had dropped off documentation for Ms. Moermond to review and she noted the following:
1) the work plan needs to be revised to show the contractor(s) or subcontractar(s) names that
you plan to hire to do the work, as well as their bids, for the electrical, plumbing, and heating
items; 2) you failed to provide financial documentation as requested; 3) the Settlement
Agreement is not acceptable as it has not yet been executed; 4) the City Attorney's Office will
need to review the Power of Attorney you submitted; 5) the City's records do not show that you
had posted the $5,000 bond; and 6) the property t�es have not yet been paid.
The City Council Public Hearing is Wednesday, March 19, 2008 at 530 p.m. in Room 300, City
Council Chambers. If the conditions are not met by then, Ms. Moermond will recommend to the
City Council that this property be removed within fifteen (15) days with no option for repair.
If you have questions, you may contact me at 651-266-8563.
Sincerely, ` �
L��� l� l/�
Mai Vang, ParaIegal for
Legislative Hearing Officer
cc: Nathan Torgerson, 14262 10` Street N, Stillwater, MN 55082-2002
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DID�►BLE P�ER OF A�UFtNEV
NOTICE: TffiS IS AN INIPORTANT DOCUMENT. BEFORE SIGi�TING T�IS
DOCU1t�NT, YUU SHOULD BNOW THFSR.IMPE3RTANT FACiS. THE PE1RPaSE OF
TffiS POWER OF ATT�RNEF IS TO GIVE T�E PERSON WHOM YOU DLSIGNATE
(YOUR uAGENT� BROA�D POWF,RS TO H.4NDI.E YOUR P1tOP�R�'I', WffiCH MAY
INCLUDE POW� TY3 PLEDGE, SELL OIt OTHERWISE DISPOSE O� ANY REAL
QIt PERSONAL P1tOPERTY V�I�HOUT AD�fFANiCE NO'1'ICE TO YOU OR APFI20V.A�
BY YOU YOU MAY SPEE{,�FX THA� T�S� PUWERS WII.L EXiST EVEI�# A�TER
YOU BECOME DLSABLd;D, INC.4!'A�TATED OR INCOMPE�`EN'�. T$IS
�C[7M1�iT DOFS NOT AIITHQRI�E A1�fYUNE TO MASE MEbICAL OR OT�R
HEAL1`S CABE DECISIONS FQIt Yt�� 2F: Tf�ERE IS ANY'PHING ABOUT TffiS
FOitM THAT XOU DO NOT UNDTRST'Al�; �'E?�J SHOULD A5B A LAWYER TO
��cr►r.Anv IT TO YOU YflII MAY R�VQ� �'Hi.S POWER OF ATTORNEY IF YOU
LATER WISH TO DO SO.
�o �a.L r�,xs��vs; be��,� �, 11�.� z �-�,�,� '��-'y c�rs��
oP I 5`� G� lO St. /r/. Ss<:>liv.�7�r,- �•d, , che anaersiguea cranco:
do hereby make s� ge�cal of amoxney m r � r�E !-- S d7/ ,
of 5iY95' �� �� ,�"I�s� ,,� ��n,�. , �a ao �n� ��-
hrte and appoint sazd'md'ividaal as mY attomeY-in-f�dageut
MY at�y m-f�a� sinII a� in my na�, P1ace a� �1 m any way wLic� I myse}f cwld cb, 'ff I c�eae
P�YP� �� m��llowm8 mavas, to the �nt d�I mmp�med by law to mx i�wg6an agent
(NOTICE: The giran�r mnst wcite Iris or her initials in the coaesponding blauk space of a boz below with respect
w ea� of il� subdivisions (A) YlaouF,h (0) below for wLich tire G�antoa� wantc to give tbe agent �thority. If tf�
b]ank space withm a box for any pacticulaz subdivision is NOf initialed, NO ALPPHORiTY �S+ILL BE GRANTED
fa� matteis tLat are included in that sabdivision. Cross ottt e� power withheld.)
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My at6omey-in-facUagent hereby accepts this appointment subject fo its terms and agrees to act
and praform in said fiduciazy capa�ity consistent with my best intciests as helshe in hisJher best
discaetion deems advisable, and � affirm and iatify all acts so �mdertaken.
TO INDUCE ANY �D PA1�TX 3'� ACf HER�TJNDFI2, I E�II2F.�Y AGREE THA'i' ANY
THII2D PARTY RECEIVING A DLT3.Y EXECLiTED COPY OR FACSIIMII.E OF THIS
INSTRLIMIIN'T MAY ACf HERFEJDiDE[t, AND THAT REVOCATION Oit 'TEttMINATION
HII2EOF SHALL B$ IIV��.FFEG'�'I�E AS TO SUCFI THIILD PARTY UNLESS AND UNTII.
ACi�IAL NOTICfl OR KNOWEIDGE OF SUCfi REVOCATIOI3 �RTERMII3ATION SHALL
FIAVE $ffiY RECIIVED �Y SEIGH TFIfitD PARTY, AND I FOR MYSELF AND FOR MY
FIIIRS, EXBCUTORS, LEGAL AND ASSIC3NS, H�tEBY AGRF.E TO
INDII1�tIFY AND HOLD IiARML�S ANY SUCH THII2D PARTY FROM AND AGAINST
ANY AND ALL CLATMS THAT MAY ARISE AGAIIdST SUCH THIItD PARTY BY REASON
OF SUC�I TfitRD PAItTY HAVIl+TG RFd.iED ON TFIE PROVISIONS OF THIS INSTRUMINT.
sr�o€ M } �
On M 0.�' G0. ,-_' 1 � ' � 0 S bEfOIC IDB, �tl KC ��C-f 5 k-5-a q aPP�
� 'J��� d Gar� '�'are��( Sor� , p�na]Iy known to me (or pmved to me an the basis of
sausfactory vi ence) to be the person(s} wfiose name(s) is/are subscribed to the within instmment and
acknowiedged w me that hetshelthey execnted the same in hislherltheir authorized caPaaitY(3es), and that by
hisJherltheir signamre{s) on the insmmient the person(s), � the e�6ty upcm behaif of wlrich the peison(s) acted;
execnted tt� insttumeut
W111�SS my �nd and afficial seai.
Siguawxe
JUNE E. FERGIISON
NOTARY PU�IC. App��$QjA
PAY COMMlSSIO}F
EXPIRES JqN. 31. 2 Q 10
• �� .� : � � � � � ., . �e
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s�a,��tcros aayof
CITY OF SAINT PAUL
Clmistopher B. Colemm:, Mayor
M3LC�1 1� 20�8
NATHAN A TORGERSON
14262 l OTF3 ST N
STII.LVJATBR MN 55082=2002 — — --
Re: 800 Robert St S
File#: 07129138 VB3
Deaz Properly Owner:
DEPARTMENTOFSAF6TYANDIN5PfiCTlONS �� � �
Bob Kessler, Daecmr
COMbIERCEBUILDING Tetepfwne: 651-266-9090
8 Fmv1h Street F.as; Srdte 200 FacsursiJe: 651-2669099
StPmd,M'vmesom55101-l026 Web: sv�vw-straul.¢ov/dsi
Pursuant to your request the ahove-referenced property was iuspected and the following report is
submitted:
BUII,DING
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
f[�
17.
18.
19.
20.
Have a structival engineer do a structural report on garage walls and roof system and
repair per structlu�al engitieers report or remove.
Basement stairs fill in_stair risers per code and install handrail as required by code.
Teaz off old mofing and call for �nspection before covering to look at roof nfters and
roofboards. •
Rebuild porch floor and removz rotted members.
Replace sink base cabinet bottom.
Remove wall covering on south side wa11 in small location to haue wall cavity
inspected to see if house wall and ceiling covering should be removed.
Clean-up mold and mildew and remove moldy sheetrock.
Insure basement cellaz floor is eve�t, is cleanable, and all koles aze filled.
Install provide hand and guardrails on all stairways and steps as per aztachment.
Strap or support top of stair stringers.
Install plinth blocks under posts in basement.
Tuck Point interior/esterior foundation.
Install floor covering in the bathroom and kitchen that is impervious to water.
Provide thumb type dead boits for a11 entry doors. Remove any surface bolts.
Repair or replace any deteriorated window sash, broken glass, sash holders, re-putty
etc. as necessary.
Provide storms and screens complete and in gaod repair for all door and window
openings.
Repair wa11s and ceilings throughout, as necessary.
Re-level structure as mnch as is practical.
Where wall and ceiling covering is removed, attic, repiace doors and windows,
(insulation, glass, weather stripping, etc.) shall meet new energy code standards.
Prepare and paint interiar and exterior as necessary (take the necessary precauflons if
lead base paint is present).
AA ADA-EEO Employer .
n8 -�d7� _ _
NATHAN A TORGERSON
Re: 800 Robert St S
Page 2
BUII,DING
21
22.
23.
24.
25.
26.
27.
Any fiaming membeis that do not meet code (where wall and ceiling covering is
removed, members that are over-spanned, over-spaced, not being carried properly,
door and window openings that aze not headered, etc.) are to be reconstructed as per
code.
Provide generalclean-up ofpremise.
Provide smoke detectors as per the Minnesota State Building Code.
Repair soffit, fascia trim, etc. as necessary.
Provide proper drainage azound house to direct water away from foundation.
Install downspouts and a complete gutter system.
Provide general rehabilitatioa of garage. After repairs to walls and roof if not
removing gazage.
ELECTRICAL
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3.
4.
5.
6.
7.
8.
4.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
Ground the elecirical service to the water service within 5'of the entrance point of the water
service.
Bond azound water-meter �vi�-a-sepper.��ai�e sized for_thg elecirical service per Article
250 of the NEC. . - - — --
Provide a complete cizcuit directory at service panei.
Verify/install a sepazate 20 ampere laundry circuit & a separate 2Q ampere kitchen appliance
circuit.
Install "S" type fuse adapters and pmper size "S" fuses/ listed circuit breakers.
Verify that fuse/circuit breaker amperage matches wire size.
Close open knockouts in service paneUjunction baxes with laiockouts seals.
Praperly strap cables and conduits in basement or service �onduit on the exterior
of the house.
Provide one (1) light far each 2(�� square feet in uufinished basement. One light must be
switched from the top of the sta�rs�
Repair or replace a11 broken, missing or loose light f�tures, switches & ouflets, covers and
plates.
Check all 3-wire outlets for proper.polarity and verify ground.
Remave any 3-wire ungrourided onfilets, and replace with 2-wize, or ground 3-wire to code.
Install hard-wired, battery backup smoke detector, as specified'm Bulletin 80-i, and
other smoke detectors as required by the IRC.
Properly wire exterior lights at front/side/back door.
Insta.11 e�rterior lights at frontlside/l�ack enhy doors.
Remove and/or rewire all illegal, improper or hazardous wiring in basemendgarage.
No power.
Wire entire house Bulle#in 80-1.
Many 30 amp fuses on#14  AVG wire.
o$-��v
NATHAN A TORGERSON
Re: 800 Robert St S
Page 3
PLUMBING
All plumbing work requires pemut(s) and must be done by a plumbing contractor licensed in
Saint Paul.
1. The water heater gas conirol valve has parts missing.
2. The water heater is not fired or in service.
3. The water meter is removed and not in service. (frozen)
4. Repair or replace all corroded, broken or leaking water piping.
5. The basement laundry tub waste is incorrect and the furture is broken or has parts
missing.
6. Replaee basement floor drain cover.
7. The first floor kitchen sink waste is incarrect.
8. The bathtub fixtiue is broken or parts stop missing.
9. The first floor toilet is frozen. Replace as necessary.
HEATING
1. Install keating syst�m according to code. .
2. Insfall approved lever handie ma�ual gas shutoff valve on all gas appliances.
3. Clean and Orsat furnace/boiler burnet. Check all controls for proper operation.
Check furnace heat exchanger fdr ieaks and provide documentation from a licensed
contractor that the heating unit is, safe.
4. Vent clothes dryerto code.
5. Provide adequate combusrion air and support to code.
6. Provide support for gas lines to code. Plug, cap and/or remove all disconnected gas
lines.
7. Clean all supply and return ducts for warm air heating system.
8. Repair andlor repiace heating regisfers as necessary.
9. Provide heat in every habitable room and bathrooms.
10. Appropriate mechanical, warm air, ventilation permits aze required for this work.
ZONING
This house was insgecfed as a�ngle family dwelling�
NOTES
**See attachment for permit requirements and appeals procedure.
This property is designated by the Vacant Buildings Department as a Category #3 which requires
a$5,000 Perfomiance Bond or Deposit at tife time the permit is issued.
4g-362� � � -
NATHAN A TORGERSON
Re: 800 Robert St S
Page 4
N01'ES
Provide plans and specifications for any portion of the bniiding that is to be rebnilt
Roof, sidewalks, etc. snow covered and could not be inspected. All must meet appropriate codes
when completed.
T'here was cansiderable storage/clutter within property at the time of the inspection. Properry is
to meet apgropriate Codes when complete.
All items noted as recommended do not have to be completed for code compliance but should be
completed at a later date. Possible purchasers of pxoperly shall be made aware of these items.
This is a registered vacant building. In order to reoccnpy the bnilding, all deficiencies
lisfezivn the eode �ompfiance report mnst be wrrected and be in compliance with the
Miniutnm Honsing Standards a�flie S�.:PaglZegi`s�a�e-�o�.���-C-h�gYes 34), and all _, _
reqnired permits must receive final approval.
information cail, NHPI at
651-268-1500, locate& at 150U White
5incerely,
James L. Seeger
Code Compliance Officer
JLS:mI
Attachments
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SETTLEMENT AGREEMENT
THIS SETTLEMENT ACsREEMENT (the "AgreemenY') is entered into this
day of , 2008, by and among GTG, LLC, a Minnesota limited
liability company, David R 3ohnson, Barbro E. Johnson, Gary A. Torgerson, Mary Jane
Torgerson, Nathan A. Torgerson, and Garrick M. Torgerson. This Agreement is intended to
cover and bind the parties hereto, as well as their heirs, successors, and assigns.
RECTI'ALS
A. A number of disputes exist between the Parties concerning various real estate and
loan transactions.
B. To avoid the cost and expense of litigation and collection, and to resolve the
disputes between them, the Parties have decided to enTer into this Agreement.
DEFI1vITIONS
l. "Action" means the consolidated litigation captioned GTG, LLC v. Dauid R
Johnson and Bazbro E. Johnson, Defendants and Third-Party Plaintiffs, v. Gary A. Torgerson,
Mary Jane Torgerson, Nathan A Torgerson, and Garrick M. Torgerson, Third-Party Defendants,
Court File No. C9-OS-003854; David R. Johnson v. Mary Jane Torgerson and Gary A.
Torgerson, Court File No. C6-06-4163; David R Johnson v. Nathan Torgerson and Gary A.
Torgerson, Court File No. C9-07-3213; David R. Johnson v. Nathan A. Torgerson, Gary A.
Torgerson, John Doe, Mary Roe, and XI'Z Cotporation, Court File No. CV-07-241; and David
R. Johnson v. Nathan A. Torgerson, Gary A. Torgerson, John Doe, Mary Roe, and XYZ
Corporation, Court File No. 30-CV-07-217, pending in Minnesota District Court in Washington
County, Minnesota.
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2_ "Barbro Johnson" means Bazbro E. Johnson, individually, together with her
personal representatives, trustees, devisees, fieirs, assigns, agents, attorneys, beneficiaries, and
any entity in wluch they have a controlling interest.
3. "Claims" sha11 mean any and all past, present or future claims, disputes, demands,
actions and causes of action, suits, debts, liabiliries, obligations, damages (whether general,
special, punitive, statutory or other), penalties, costs, losses, expenses, attorneys' fees (whether
incurred prior to or after the date of the this Agreement), whether I�own or unkuown, liquidated
or unliquidated, fixed or contingent, direct or indirect, suspected or unsuspected, premised on
direct recovery, contribution or indemnity, whether based on contract, tort, statute, or other legal
or equitable theory of recovery, whether written or oral, that the Parties have hati, claim to ha�e,
or may have against one another, including but not limited to the claims that were or could have
been asserted in the Action.
4. "David Johnson" means David R. Johnson, individually, together with his
personal representatives, trustees, devisees, heus, assigns, agents, attorneys, beneficiaries, and
any enriTy in which they have a controlling interest.
5. "Garrick Torgerson" means Garrick M. Torgerson, individually, together with
his personal representatives, trustees, devisees, heirs, assigns, agents, attorneys, beneficiaries,
and any entity in which they have a controlling interest.
6. "Gary Torgerson" means Gary A. Torgerson, individually, together with his
personal representatives, trustees, devisees, heirs, assigns, agents, attomeys, beneficiaries, and
any entity in which they have a controlling interest.
7. "GTG" means GTG, LLC, a Mimiesota corporation, together with its personal
representatives, trustees, devisees, heirs, and beneficiaries, present and former members,
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G�':�7�
mana�ers, employees, shazeholders, owners, agents, attorneys, personal representatives, officers,
directors, lenders, affiliate$, predecessors, successors, assigns, and any entity in which they have
a controlling interest.
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"Johnson" or "Johnsons" means Bazbro Johnson and David Johnson.
"MJ Torgerson" means Mary Jane Torgerson, individually, together with her
personal representatives, trustees, devisees, heirs, assigns, agents, attorneys, beneficiaties, and
any entity in which they have a controlling interest.
10. "Nathan Torgerson" means Nathan A. Torgerson, individually, together with his
personal representatives, trustees, devisees, heirs, assigns, agents, attorneys, beneficiaries, and
any entity in which they have a controlling interest.
11
12.
"Parties" means the parties identified on the signature pages to this Agreement.
"Torgerson" or "Torgersons" means Garrick Torgerson, Gary Torgerson, MJ
Torgerson,and Nathan Torgerson.
AGREEMENT
In considerarion of the above recitals, which are incorporated herein by reference, the
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mutual agreements and undertakings of the parties set forth below, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:
i. Advance Pavments. Upon the Parties' execution of this Agreement, the
Johnsons agee to pay immediately to Gary Torgerson the sum of One Hundred Thousand and
nol100 Dollars ($IOO,OOO.DO) (the "i3nrestricted Advance PaymenY'). Gary Torgerson shall be
entiUed to use the Unrestricted Advance Payxnent for whatever purpose(s) he chooses and the
Johnsons sha11 have no right to direct or control Gary Torgerspn's use of the Unrestricted
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Advance Payment. Following execution of this Agreement, the Johnsons will also deposit
immediately with an escrow agent mutualiy acceptable to the Parties (the "Escrow Agent") the
sum of One Hundred Thousand and no/100 Doilars (the "Restricted Advance PaymenY'). The
Johnsons acl�owledge and agree that Gary Torgerson shall be entitled to receive reimbursement
from the Restdcted Advance Payment for a11 costs, including amounts paid to laborers, material
suppliers, contractors, utility companies, attorneys, and government agencies, that Gary
Torgerson incurs in connection with preventing the demolition of, rehabilitating, improving,
preparing for sa1e, and selling (the "Reimbvrsable Costs") the properties located at 800 South
Robert St., St. Paul, Minnesota and 930 Dutchess, St. Paul, Minnesota (the "Rehab
Properties"). To obtain reimbursement from the Restricted Advance Payment for the
Reimbursable Costs, Gary Torgerson shall be required to provide the Escrow Agent with such
information, such as receipts, invoices, contracts, time cazds, and similaz information, as the
Escrow Agent deems reasonably necessary to coufirm that the costs for wluch Gazy Torgerson
seeks reimbursement aze pmperly reimbutsable under this paragraph. In the event the Rehab
Properties are sotd before Gary Torgerson has received the fiill amount of the Restricted
Advance Payment, Gary shall be enritled to obtain reimbursement from the balance of the
Restricted Advance Payment for a11 costs, including amounts paid to laborers, material suppliers,
contractors, utility companies, attorneys, and government agencies, that Gary Torgerson incurs
in connection with rehabilitating, unproving, and preparing for sale any of the other Mortgaged
Properties (as defined below). At any time Gary Torgerson may forfeit tus right to receive any
further reimbursement from the Restricted Advance Payment by delivering the Johnsons written
notice of this election, and in the event Gary Torgerson provides such a notice, the Johnsons
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shall apply the then remaining balance of the Restricted Advance Payment against the principal
amount then remaining under the Note (as defined below).
2. Transfer of Real Prouertv. Upon execution of this Agreement, the Johnsons
agree to execute any and all documents, inciuding warranty deeds, mortgage satisfactions, and
similar documents, that are necessary to convey fee title for the properties identified in the table
below to the corresponding fee owners for such properties and that are necessary to release any
and a11 liens or other claims the Johnsons may possess against any of these properties. The
Johnsons agree to pay a11 costs that are necessary to record these documents with the appropriate
government offices.
3. Promissorv Note and Morteaees. Gary Torgerson agrees to execute and deliver
to the Johnsons a Promissory Note, in substantially the form as the note attached hereto as
Exhibit A(the "Note"), pursuant to which Gary Torgersott agrees to pay the Johnsons the swn of
One Million Seven Hundred Ten Thousand and no/100 Dollazs ($1,710,000.00), plus interest, in
accordance with the terms of the Note. The Johnsons acl�owledge and agree that the
Unrestricted Advance Payment and the Restricted Advance Payment aze included in the amounts
to be paid pursuant to the Note. To secure Gary Torgerson's repayment of the Note, the
Torgersons and GTG agree, as necessary, to execute and deliver to the Johnsons mortgages (the
"Mortgages"), in substantially the form as the mortgage attached hereto as Eachibit B, against the
following real property (the "Mortgaged Properties") in the amounts specified below:
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4. Satisfaction of MorteaEes. The Johnsons acknowledge and agree that Gary
Torgerson may, at any time, safisfy any one or more of the Mortgages by paying to the Johnsons
the principal amount secured by such Mortgage(s). If Gary Torgerson pays to the Johnsons the
amount necessary to sarisfy the principal amount secured by any particulaz Mortgage, the
Johnsons agree to execute and deliver immediately a satisfaction of mortgage to the mortgagor
for such Mortgage. In the event Gary TorgeTSOn intends that a principal payment he is making to
the Johnsons be applied to reduce the principal amount secured by a specific Mortgage, Gary
Torgerson shall notify the Johnsons of the same in writing; otherwise the Johnsons shall apply a11
payments received from Gary Torgerson ratably to the principal balances secured by the
Mortgages. In the event Gazy Torgerson does not receive the full amount of the Restricted
Advance Payment and requests that the Johnsons credit the remaining amount of such payment
against the principal balance under the Note in accordance with Paragraph 1 of this Agreement,
the Johnsons agree that they sha11 apply ttus amount ratably to the principal balances secured by
the Mortgages. Notwitl�stauding anything herein to the contrary, in the event the Johnsons fail,
as required under this Pazagraph, to deliver mortgage satisfactions to the respective mortgagors
under the Mortgages within a reasonable amount of time, the Johnsons hereby appoint GTG and
Gary Torgerson eacfi as attorney in fact, with full authority in the piace and stead of the Johnsons
and in the name of Johnsons to take any action and to execute any instrument that may be
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necessary to satisfy one or more of the Mortgage(s) upon Gary Torgerson's payment of the entire
amount secured by any such Mortgages.
5. Snbordination of Mort¢a¢es. Notwithstanding aayth�ng herein to the contrary,
the Johnsons acknowledge and agree that the liens created under the Mortgages against the real
property located at 1227 Oldridge Ave. I3., Stillwater, MN and 1426210�` St. N., W est Lakeland,
MN are subordinate to the liens against such properties created by the Mortgage, of even date
herewith, in the amount of $200,000.00, thaY GTG, as mortgagor, executed and delivered to
Terry T, LLC, as mortgagee.
6. Records of Pavments. The Johnsons acknowledge and agree that, at all times
unril the amounts owin� under the Note are paid in full and until all of the Mortgages aze
satisfied, the Johnsons sha11 maintain a ledger or similar document (the "Payment Ledger") that
tracks each payment Gary Torgerson makes to the Johnsons in repayment of the Note. The
Payment I,edger shall, at a minimum, indicate for each payment (i) the date the Johnsons
received such payment; (ii) the form of such payment (i.e. cash, check, money order, etc.); (iii)
the amount of such payment; (iv) how the 7ohnsons applied such payment between principal and
accrued interest; (v) the Mortgage, if any, against which Gary Torgerson instructed the Johnsons
to apply the payxnent; and (vi) the principal balance and amount of accrued interest, if any,
remaining under the Note after such payment is applied. The Johnsons agree to provide Gary
Torgerson written receipts for any cash payment that Gary Torgerson makes to the Johnsons.
The Johnsons shall make the Payment Ledger available for inspection and/or copying upon
request by GTG or the Torgersons.
7. Cooaeration. The Parties agree to cooperate with each other and to execute and
deliver any and all documents necessary, or take any other requested action that is necessary, to
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cazry out the terms of this Agreement and/or to complete the intended purposes of this
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8. Dismissal of Acfion. Upon the Parties' execution of flus Ageement, the Parties,
through their counsel, agree to execute a stipulation dismissing the Action, with prejudice and
without costs to the Parties (the "Sfipulation of Dismissal"). GTG's counsel will file the
Sripulation of Dismissal with the Court followivg its execution by atl of the Parties.
8. GTG's Release. In considera6on for the Johnsons' execution of this Agreement,
and the covenants, agreements, and releases included herein, GTG, for itself and for its
successors and assigns, hereby absolutely and uncondirionally releases the Johnsons from any
and all Claims.
9. Johnsons' Release. In consideration for GTG's and the Torgersons' execurion of
t}us Agreement, and the covenants, agreements, and releases included herein, the Johnsons, for
themselves, and their successors and assigns, hereby absolutely and uncondifionally release GTG
and the Torgersons from any and all Claims.
10. Tor¢ersons' Release. In consideration for GTG's and the Johnsons' execution of
this Agreement, and the covenants, agreements, and releases included herein, the Torgersons, for
themselves, and their successors and assigns, hereby absolutely and unconditionally release the
Johnsons and GTG from any and all Claims.
1 l. Attornevs' Fees. Each of the Parties will pay its own attorneys' fees incurred in
preparing this Agreement. The Parties agree, however, that in the event a Pariy is required to
take steps to enforoe its rights under this Agreement as a result of another Party's breach of its
obligations under this Agreement, the non-breaching Pariy shall be entitled to recover from the
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breaching Pariy all of its costs and e�cpenses, including reasonable attorneys' fees and court
costs, that the non-breaching Parry incurs in enforcing its rights under this Agreement.
12. No Admission as to Liabilitv. This Agreement is a compromise of doubtful and
disputed clauns, and shall in no way be construed as an admission of liability by any of the
Parties.
13. Modifcation and A¢reement. This Agreement is a complete and fully
integrated agreement and may not be modified except by a subsequently �ecuted document
signed by all of the Parties.
14. Construction. This Agreement shall be construed under the laws of the State of
Minnesota. The Parties aclrnowledge tlus Agreement is the joint product of the Parties, and
agree that it shall not be construed against the party originally drafting tlus Agreement.
15. Counteroarts. This Agreement may be executed in two or more counterparts,
each of which sha11 be deemed an original, though all of which together shall constitute one in
the same instr�ument. Facsimile siguatures and/or PDF copies of signatures sha11 constitute valid,
original signatures.
IN WIT'NESS WHEREOF, each of the parties hereto ha�e set their hand hereto as of the
date first above written.
[SIGNATUR� PAGE TO FOLLOR']
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4330036_2.DOC
GTG, LLC
By:
Nathau A. Torgerson
Its: Member
By: TERRY T, LLC
Its: Agent
sy:
Tenence E. Troy
Its: Sole Member
David R Johnson
Barbro E. Johnson
Gary A. Torgerson
Mary Jane Torgerson
Nathan A. Torgerson
Garrick M. Torgerson
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