CR 2014-047 Approve Purchase Agreement 431-433 Blake RoadOITY OF
I*
May 16, 2014 H O P K I N S Council Report 2014-047
Approve Purchase Agreement
431/433 Blake Road
Proposed Action.
Staff recommends adoption of the following motion: "Move that Council adopt
Resolution 2014-024 approving the purchase agreement for acquisition of real
Property at 431-433 Blake Road North."
Overview
As previously discussed with City Council, negotiations for the purchase of the
property have been ongoing for the past few months. Final purchase terms have
been agreed to by the seller.
The purpose of the property acquisition is to expand Cottageville Park to provide
for enhanced storm water treatment and to increase visibility into the park from
Blake Road. The principal terms of the purchase agreement are as follows:
• Purchase price: $350,000 inclusive of all owner relocation costs
• Relocation costs for the renter: as required by law, est. at $10,000
• Closing: as soon as possible, early June
• Owner may occupy the property for 60 days after closing date
• After closing, City receives rent from the 431 Blake Rd unit
Funding for the purchase is through the Storm Sewer Fund.
The City Attorney drafted the purchase agreement - staff recommends approval.
Supporting Information.
• Purchase Agreement
• Resolution 2014-024
• Cottageville Park map
Steven J. Stadler
Public Works Director
Financial Impact: $ 400,000 Budgeted: Y/N N Source: Storm Sewer Fund
Related Documents (CIP, ERP, etc.):
Notes: costs include: pre -demo inspection, relocation allowance, demolition,
fees
PID # 19-117-21-11-0078
PURCHASE AGREEMENT
For Owner Occupied Residence
THIS AGREEMENT, made and entered in this day of 2014, by and between,
David Wallace Gimberline, a single person, ("Seller"), and the City of Hopkins, a municipal body,
governed by the State of Minnesota, ("Purchaser").
In consideration of the mutual terms, covenants, conditions, contingencies and agreements hereinafter
contained, it is hereby agreed by and between the parties as follows:
1. Sale of Property. Seller agrees to sell to Purchaser and Purchaser agrees to purchase from Seller the
real property ("Subject Property") located at 431/433 Blake Rd. North, Hopkins, Hennepin County
MN 55343, legally described as follows:
The South V2 of that part of the South 128 feet of the North 240 feet
of Lot 70, Auditor's Subdivision Number 239, Hennepin County Minnesota, lying West of
the East 385 feet thereof; according to the recorded plat thereof, and situate in Hennepin
County, Minnesota.
Excepting therefrom Parcel No. C on Hennepin County Right of Way Plat No. 2.
Together with the benefit of the ingress and egress of that certain driveway easement over
the East 14 feet of the North % of that part of the South 128 feet of the North 240 feet of
Lot 70, Auditor's Subdivision
Number 239, Hennepin County Minnesota, lying West of the East 385 feet thereof,
according to the recorded plat thereof, and situate in Hennepin County, Minnesota.
Abstract Property
together with all buildings, improvements and fixtures owned by Seller, all easements, rights and
appurtenances thereto, and all of Sellers rights, title and interest in all public ways adjoining the
same (collectively, the "Subject Property'). The following personal property is included in the sale:
storm windows and inserts, storm doors, screens, awnings, window shade, blinds, curtain -traverse -
drapery rods, attached lighting fixtures with bulbs, plumbing fixtures, sump pumps, water heaters,
heating systems, built-in appliances, garbage disposals, installed carpeting, work benches, television
antennas and hood -fans and those items identified on Exhibit A-
2. Purchase Price and Manner of Payment. The total purchase price ("Purchase Price") to be paid by
Purchaser to Seller for the Subject Property shall be Three Hundred Fifty and no/100 Dollars
($350,000.00). The purchase price shall be paid as follows:
a) Earnest money= None
b) Three Hundred Fifty Thousand and no/100 Dollars ($350,000.00) to be paid in cash on the
Date of Closing.
3. Salvage Rigg. The Seller has retained the right to salvage certain components and fixtures after the Date
of Surrender of Possession identified in Seller's Rent Back Agreement attached as Exhibit B. The removal
must be completed within 10 days of the Date of Surrender of Possession. The cost of removal shall be
exclusively at the Seller's cost. Any items not removed by Seller within 10 days of the Date of Surrender of
Possession shall be deemed abandoned by Seller. The Seller reserves no right to compensation for salvage
items not removed within 10 days of the Date of Surrender of Possession. See attached Exhibit A salvage
list. Such components and fixtures are being conveyed in "As -Is -Condition" ("with all faults").
4. As -Is -Basis. Subject to the contingencies stated in Section 5, it is specifically agreed that the Subject
Property is being conveyed to the Purchaser by the Seller in "As -Is -Condition" ("with all faults").
Seller agrees to remove all personal property and debris in the house, garage and on the property by
the Date of Possession.
5. Contingencies. Purchaser's obligations under this Agreement and closing hereunder are contingent
upon satisfaction of each of the following contingencies:
(a) Purchaser being satisfied as to good and marketable title to the Subject Property in Seller
pursuant to Paragraph 6 herein;
(b) All warranties and representations of Seller hereunder being true and correct as of the date
hereof, and on the Date of Closing;
(c) Purchaser determining, on or before the Date of Closing, that it is satisfied with the matters
disclosed by soil testing, survey and a physical inspection of the Subject Premise conducted by
Purchaser and its agents. Purchaser and its agents shall have the right to enter into the
Subject Property for the purposes of making soil tests and such other physical inspection
measurements and investigation as Purchaser deems necessary; provided, however, that
Purchaser shall not interfere with the operation of the Subject Property and, provided further,
that Purchaser shall indemnify and hold Seller and the Subject Property harmless from all
liabilities arising from entry upon or testing of the Subject Property by Purchaser, including
but not limited to liabilities arising from mechanic's, materialmen's or other liens filed against
the Subject Property connection with work performed or material furnished by or at the
direction of Purchaser.
(d) Purchaser determining, on or before the Date of Closing, that it is satisfied with the matters
disclosed by its review of any reports obtained by Purchaser from third parties in connection
with investigation of the Subject Property for the presence of hazardous or toxic waste.
If all the foregoing contingencies have not been satisfied or waived by Purchaser on or before the
Date of Closing or such other date as is expressly set forth above, then this Agreement may be
terminated at Purchaser's option by written notice to Seller given within three (3) business days
after the Date of Closing, and upon such written notice of termination, any Earnest Money
deposited by Purchaser, together with interest earned thereon, shall be returned to Purchaser,
and upon such return neither party shall have any further rights or obligations with respect to
this Agreement or the Subject Property. If notice of termination of the Agreement for failure to
satisfy any contingency set forth above is not given by Purchaser on or before the third business
day after the Date of Closing, such contingency shall be deemed waived by Purchaser.
The above contingencies are for the sole benefit of Purchaser and Purchaser shall have the right to
unilaterally waive any contingency and proceed to close. Each party shall cooperate with the other in
satisfying the conditions hereof.
6. Evidence of Title. Within five (5) days after execution of this Agreement, Seller shall deliver to Purchaser
copies of any title insurance policies or commitments and prints of any surveys of the Subject Property that
are in Seller's possession. Purchaser shall, within twenty (20) days after execution of this Agreement,
obtain a commitment (the "Title Commitment") for an ALTA Owner's Policy of Title Insurance to insure
title to the Subject Property in the amount of the purchase price issued by Old Republic National Title
Insurance Company (the "Title Company"), which shall include proper searches covering special
assessments, bankruptcies and State and Federal judgments and liens. Within 30 days after receiving the
Title Commitment, the Purchaser shall give notice in writing to the Seller of any defects in or objections to
the title as so evidenced and Seller shall thereafter clear the title of the defects and objections so specified at
Seller's expense. If Seller fails to clear title of the defects and objections identified in Purchaser's notice by
the Date of Closing, Purchaser will have the option, by written notice delivered to Seller within three (3)
business days after the Date of Closing to either: (a) terminate this Agreement whereupon neither party shall
have any further obligations hereunder, or (b) waive Purchaser's objections to title and proceed to closing.
Title to be conveyed as herein provided shall be marketable title, free and clear of all liens, encumbrances,
restrictions options to purchase, and easements, except as may be expressly waived by Purchaser.
7. Representations and Warranties by Seller. Seller represents and warrants to Purchaser that:
(a) The individuals executing this Agreement and the documents referred to herein on behalf of
Seller have the legal power, right and actual authority to bind Seller to the terms and
conditions hereof and thereof. This Agreement and all documents required hereby to be
executed by Seller are, and shall be, valid, legally binding obligations of and enforceable
against Seller in accordance with their terms.
(b) On the Date of Closing, Seller will own all of the properties and assets being conveyed hereby,
free and clear of all leases, liens, charges and encumbrances.
(c) Seller has received no notice of any action, litigation, investigation or proceeding of any kind
pending against Seller, nor to the best of Seller's knowledge is any action, litigation,
investigation, or proceeding pending or threatened against the Subject Property, or any part
thereof.
(d) Seller will cause, to the extent applicable, all policies of insurance covering the Subject
Property with respect to fire and extended coverage risks, and liability to be kept in full force
and effect through and including the Date of Possession.
(e) On the Date of Closing, there will be no service contracts in effect in connection with the
Subject Property, except those which are terminable on thirty (30) days' written notice.
(#� Seller warrants that it has not used the Subject Property for the storage of hazardous
substances or petroleum products and, as of the date of this Agreement, is not aware of any
facts the existence of which would constitute a violation of any local, state or federal
environmental law, regulation or review procedure or which would give any person a valid
claim under the Minnesota Environmental Rights Act or the Federal Comprehensive
Environmental Response, Compensation and Liability Act. The foregoing is applicable only to
Seller's actual knowledge of facts, and Seller represents that Seller has made no independent
investigation of the Property.
(g) Seller has not entered into any other contracts for the sale of the Subject Property, nor as of
the Date of Closing will there be any first rights of refusal or options to purchase the Subject
Property.
(h) Seller has not entered into any commitments or agreements with any governmental agency or
public or private utility affecting the Subject Property which have not been disclosed in
writing by Seller to Purchaser.
(i) Seller warrants that the Subject Property at 433 Blake Rd. No. is the seller's personal
residence and is only occupied by the seller, and does not lease this unit to any tenants. Unit
431 Blake Rd. No. is currently occupied by a tenant and no person or entity has any leasehold
interest in the Subject Property except the current tenant's month to month 30 day occupancy.
Seller warrants and represents that true, correct and complete copies of all documents
evidencing the Lease of the Unit at 431 Blake Road North are attached hereto as Exhibit C.
On the Date of Closing, Seller shall assign all of Seller's right, title and interest in the Lease of
Unit 431 to Purchaser. Seller shall enter into no other leases or create any other rights of
occupancy of the Subject Property prior to the Date of Closing.
(j) Seller will not construct or enter into any agreement or commitment to construct any
improvement or alteration to the Subject Property.
(k) Seller will not enter into or consent to any easement, covenant or other obligation affecting the
Subject Property or alteration to the Subject Property.
(1) To the best of Seller's knowledge, after due inquiry, Seller is not in default with respect to any
of its obligations or liabilities pertaining to the Subject Property.
(m) To the best of Seller's knowledge, methamphetamine production has not occurred on the
property.
(n) Seller has not entered into any brokerage or agency agreements in relation to the sale of the
Subject Property and there is no brokerage fee or commission due and owing to any person or
entity in relation to the sale of the Subject Property.
(o) To the best of Seller's knowledge, no water wells or individual sewage treatment systems
exist on or under the Subject Property or have existed on or under the Subject Property and
not been abandoned in accordance with applicable law.
(p) Seller is not a "foreign person" as that term is defined in Section 1445 of the Internal Revenue
Code.
Notwithstanding any provisions herein to the contrary, Seller shall indemnify Purchaser, its successors
and assigns, against, and shall hold Purchaser, its successors and assigns, harmless from, any loss, costs,
expense or damage, including reasonable attorneys' fees directly arising out of or resulting from the
breach of any of the representations and warranties herein contained, whether such loss, cost, expense or
damage arises prior to or after closing, provided that Purchaser did not have knowledge of said breach on
or before the Date of Closing. All warranties and representation herein contained shall survive a closing.
8. Closing. The date on which the closing of the transaction herein described shall occur (which date is
herein referred to as the "Date of Closing') shall be '2014. The closing and delivery of all
such documents shall take place at the office of the City of Hopkins, the Title Company or at such
reasonable location as may be agreed upon by Purchaser and Seller.
9. Possession. Purchaser shall be entitled to possession of the Subject Property as of the Date of
Closing (which date is herein referred to as "Date of Possession"), provided Seller shall be entitled to
continue to occupy Unit 433 until 60 days after the Date of Closing, 1200 pm, subject to the terms
and conditions stated in Exhibit B, Sellers Rent Back Agreement, which shall be executed by the
parties on the Date of Closing.
10. Costs and Prorations. Seller and Purchaser agree to the following Prorations and allocation of costs
in connection with this Agreement and the transactions contemplated hereby:
(a) Purchaser shall pay the costs of certification and delivery of the Title Commitment and the
premium for the Owner's Title Insurance Policy issued to Purchaser.
(b) Purchaser shall pay all state or local transfer or deed taxes in connection with the Deed to be
delivered hereunder, if any. Purchaser shall pay for the cost of drafting documents and
closing fees. Purchaser shall pay for the recording charges in connection with recording the
documents to be delivered herein, with the exception of fees for recording documents required
to clear title in accordance with Paragraph 6 of this Agreement.
(c) Seller shall be responsible for payment of the real estate taxes due and payable in the year of
the sale prorated to the Date of Closing. Seller shall pay all real estate taxes due and payable
for the years prior to Date of Closing, together with all special assessments levied against the
property as of the Date of Closing. Also, Seller shall pay any and all green acres or other
deferred taxes and/or special assessments levied or pending against the property.
(d) Each of the parties shall pay all of its own respective attorneys' fees in connection with the
negotiation, preparation and closing of this Agreement and the transaction contemplated
hereby.
(e) All rent received from the tenant of 431 Blake Road North for the month in which closing
occurs shall be pro rated between Seller and Purchaser as of the Date of Closing.
If, and to the extent, any cost or fee shall be payable by Seller under this Agreement, Purchaser shall
have the right to pay such amount for the account of Seller and deduct the amount thereof from the cash
due Seller at the Date of Closing. If the amount of Seller's obligation cannot be determined on the Date of
Closing, Purchaser shall have the right to establish an escrow account (and offset from the cash payment)
150% of the maximum foreseeable liability.
11. Closing Documents. At the Closing, Seller shall execute and deliver to Purchaser the following
(collectively the "Closing Documents")
(a) Deed. A General Warranty Deed, in recordable form, signed by Seller and all other persons
known or unknown claiming any right, title estate, interest or lien in the real estate described
herein and the Sellers.
(b) Seller's Affidavit. A standard form affidavit by Seller indicating that on the date of Closing
there are no outstanding, unsatisfied judgments, tax liens or bankruptcies against or involving
Seller or the Subject Property; that there has been no skill, labor or material furnished to the
Subject Property (other than at the request of Purchaser) for which payment has not been made
or for which mechanics' liens could be filed; and that there are no other unrecorded interests in
the Subject Property.
(c) Storage Tanks. If required an affidavit with respect to storage tanks pursuant to Minnesota
Statutes Section 116.48.
(d) Well Disclosure. Seller certifies that Seller does not know of any wen/wells on the described
Subject Property and agrees to complete a Sellers Well Discloser on Date of Closing.
(e) Sewage Treatment System. There is no individual sewage treatment system on or serving the
Subject Property. Municipal sanitary sewer is available to the Subject Property.
(0 Lead Paint Disclosure. This structure was constructed before 1978 and may contain lead
paint. Seller is not aware of the existence of lead paint on the structure.
(g) Certification. A certification that the representations and/or warranties made by the Sellers
are the same as were in existence on the date of the Purchase Agreement.
(h) Assignment of Lease. An Assignment of Lease assigning to Purchaser all of Seller's right, title
and interest in and to the Lease of the Unit at 431 Blake Road North attached to this Agreement
as Exhibit C. Seller shall also execute a letter to the tenant of 431 Blake Road North notifying the
tenant of the assignment of such Lease to Purchaser.
(i) Other Documents. Seller's Rent Back Agreement in the form of Exhibit B attached hereto and
all other documents reasonable determined by either party and the Title Company to be necessary
to transfer and provide title for the property.
0) Flood Plain. Seller warrants that the Subject Property does not he within a federally
designated Flood Plain.
12. Assignment. Purchaser shall have the right to assign its interest under this Agreement, without first
obtaining the consent of Seller, provided that Purchaser shall remain liable to Seller under this
Agreement.
13. Damage or Destruction. If any portion of the Subject Property is damaged or destroyed by casualty
before Closing, Seller shall immediately give notice thereof to Purchaser, and Purchaser, at its option
(to be exercised within thirty (30) days after Seller's notice), may terminate this Agreement by written
notice delivered to Seller within said thirty (30) day period whereupon this Agreement shall be null
and void and neither party shall have any further obligations hereunder. If Purchaser fails to deliver
such notice of termination within the thirty (30) day period stated in the preceding sentence,
Purchaser shall be deemed to have waived its right to terminate this Agreement and this Agreement
shall remain in effect in all of its terms and conditions.
14. Condemnation. If eminent domain proceedings are commenced against any material portion of the
Subject Property prior to Closing, Seller shall immediately give notice thereof to Purchaser, and
Purchaser at its option (to be exercised within thirty (30) days after Seller's notice) may either (a)
terminate this Agreement by written notice to Seller, or (b) proceed to Closing and receive at Closing
either a credit in the amount of the award against the Purchase Price, in the case of a completed
eminent domain proceeding, or an assignment of all rights in eminent domain, in the case of a
pending eminent domain proceeding. Prior to Closing, Seller shall not designate counsel, appear in,
or otherwise act with respect to any eminent domain proceedings, or commence any repair or
restoration resulting therefrom, without the consent of Purchaser. As used in this Article 14, the
phrase "material portion" means any portion of the Subject Property which, if taken, will render the
remainder of the Subject Property unsuitable for Purchaser's intended use thereof.
US . All of the terms, covenants, conditions, representations, warranties and agreements
contained in this Agreement shall survive and continue in force and effect and shall be enforceable
after the closing.
16. Notices. Any notice or election required or permitted to be given or served by any party hereto upon
any other shall be in writing and shall be deemed given or served if personally delivered to the
individuals identified below or if mailed by US registered or certified mail, postage prepaid, return
receipt requested, or sent by reputable overnight courier, to the following addresses
If to Seller: David Gimberline
433 Blake Rd. No.
Hopkins, MN 55343
If to Purchaser City of Hopkins
Steven Stadler
Public Works Director
11100 Excelsior Blvd.
Hopkins, MN 55343-7558
With a copy to: City Attorney
Jeremy Steiner
Hoff, Barry & Kozar, P.A.
775 Prairie Center Drive,
160 Flagship Corporate Center
Eden Prairie, MN 55344
Mailed notices shall be deemed to have been received by, or served upon, the party to whom
addressed on the date which is one (1) business day after the date upon which the same is
deposited in the US registered or certified mail, postage prepaid, return receipt requested,
properly addressed in the manner above provided, and if served personally or sent by reputable
overnight courier, on the date of service or delivery. Any party hereto may change its address for
the service of notice hereunder, in the manner above specified, ten (10) days prior to the effective
date of such change.
17. Effective Date of Agreement. This Agreement shall become effective and shall be binding upon the
parties hereto on the date on which it has been executed by each of the parties hereto. Purchaser will
have no more than thirty (30) days after date of Seller's execution of this agreement to accept and sign
this purchase agreement.
18. Legal Representation. Seller acknowledges that the closing contemplated by this Agreement will be
conducted by Hod Barry & Kozar PA (city attorney). Seller further acknowledges that Hoff, Barry &
Kozar PA is the attorney for the Purchaser and does not represent the Seller or Seller's interest in
this transaction. If Seller requires legal representation, Seller must contact an attorney of Seller's
choosing and at Seller's own cost. Seller further acknowledges that although Hoff, Barry & Kozar PA
may prepare documents in connection with the closing, these documents are being drafted only to
facilitate the completion of the closing of this transaction and do not constitute a representation of
Seller's interest in this transaction.
19. Captions. The paragraph headings or captions appearing in this Agreement are or convenience only,
are not a part of this Agreement, and are not to be considered in interpreting this Agreement.
20. Entire Agreement; Modification. This written Agreement and the Exhibits hereto constitute the
entire and complete agreement between the parties hereto and supersedes any prior oral or written
agreements between the parties hereto with respect to the Subject Property. It is expressly agreed
that there are no verbal understandings or agreement which in any way change the terms, covenants
or conditions herein set forth, and that no modification of this Agreement and no waiver of any of its
terms and conditions shall be effective unless in writing and duly executed by the parties hereto.
21. Binding Effect. All covenants, agreements, warranties and provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns. When used herein, the singular shall include the plural, the plural shall include the
singular, and the use of one gender shall include all other genders, as and when the context so
requires.
22. Controlling Law. This Agreement has been made and entered into under the laws of the State of
Minnesota and said laws shall control the interpretation enforcement hereof.
23. Remedies. If either party shall default in its obligations hereunder, the sole remedies available to
either party, except with respect to defaults under Paragraph 7 herein for which damages shall be
recoverable as provided therein, shall be (i) to terminate this Agreement by written notice to the other
party, in which event neither party shall have any further rights or obligations hereunder or (ii) to
seek specific performance of this Agreement.
24. Counterparts. This Agreement may be signed in one or more counterparts, all of which taken
together shall be deemed one original.
25. Severability. If any provision in this Agreement, or any application thereof, shall be invalid or
unenforceable, the remainder of this Agreement and any other application of such provision shall not
be affected thereby and shall not be rendered invalid or unenforceable.
26. Acceptance. Seller understands and agrees that this Purchase Agreement is subject to acceptance by
Purchaser in writing.
27. Minimum Compensation. The Seller acknowledges and stipulates that this purchase agreement is a
voluntary transaction purchase and the minimum compensation requirements due to Seller by
Minnesota Statute 117.187 does not apply.
28. Relocation. The seller is a displaced person under Minnesota Statutes 117.52 and as such is eligible
to receive residential relocation benefits as provided in the Minnesota Uniform Relocation Act. The
purchase price of $350,000.00 is greater than the listing price of the comparable replacement dwelling
identified at 325 Cedar Lake Rd., in Minneapolis and therefore creates a Replacement Housing
Payment Differential of $0.00.
The Seller is entitled to Replacement Housing Incidental Closing Cost, mortgage rate differential and
personal property move as defined in the MN Uniform Relocation Act. The purchase price of
$350,000 is inclusive of any and all eligible relocation costs including moving costs, interest rate
differential, closing costs and move of personal property.
Seller agrees Seller shall not be entitled to receive any additional residential relocation assistance
benefit as a result of Seller's occupancy of the Subject Property after the Date of Closing pursuant to
the Seller's Rent Back Agreement.
David Wallace Gimberline has signed this Purchase Agreement to sell the Subject Property for the price
and terms and conditions set forth in this Agreement. X�
Dated:
Dated:
Dated=
Final Acceptance Date
SELLER=
C
BY
David ace G' erline
PURCHASER:
The City of Hopkins
BY
Eugene Maxwell, Mayor
BY
Michael Mornson, City Manager
Exhibit A
Salvage List
David Gimberline
433 Blake Rd. No.
Hopkins MN 55343
After the Date of Surrender of Possession identified in Seller's Rent Back Agreement dated
Seller may remove the following items at Seller's own expense provided the
removal is completed within 10 days of the Date of Surrender of Possession.
As Property is scheduled for demolition, Seller and/or Tenant may remove at their discretion any and all
fixtures, improvements, and appliances and are not required to repair or replace such items. These items
may include, but shall not be limited to:
Refrigerators, freezers, stoves, dishwashers, sinks, cupboards, cabinetry, vanities, toilets, water filtration
systems, water softner, PEX water lines, ceiling fans, lighting fixtures, garage door openers, carpeting,
countertops, shower heads, drapes, blinds, window coverings, blow dryer, towel rods, mirrors.
However, the Seller and/or Tenant may not remove any copper water lines. The property must be able to
be secured from entry at all times and on the possession date.
Seller:
David Wallace Gimberline (Date)
Exhibit B
Seller's Rent Back Agreement
Date:
Page 1 of 2 Pages
This Rent Back Agreement (this "Agreement") is made and entered into between the City of
Hopkins, Minnesota ("Purchaser") and David W. Gimberline ("Seller") effective this
day of 2014.
The Purchaser and Seller agree as follows:
NATURE AND PURPOSE= This Agreement gives Seller the right to remain in and
occupy only Unit 433 (the "Unit") of the duplex located at 431/433 Blake Road North, Hopkins,
Minnesota (the "Subject Property").
DATE OF SURRENDER OF POSSESSION Seller agrees to vacate the Unit and deliver
exclusive physical possession thereof to Purchaser on or before 2014 at 12 noon.
SECURITY AND DAMAGE DEPOSIT: On the date of this Agreement Seller will deposit
Zero dollars ($0.00) with Purchaser in certified funds, as a security and damage deposit. The
deposit will earn statutory interest at the rate prescribed in Minn. Stat. Section 504.20 subd. 2.
The Purchaser will refund the deposit, plus interest, to Seller, or after Seller moves out of the
Unit and gives possession to Purchaser. Purchaser may keep amounts necessary to cover
unpaid rent or to cover the cost of repairing damage to the Unit (including personal property
and appliances) caused by Seller. If the Purchaser keeps all or a part of the deposit, Purchaser
will provide a written statement within 21 days stating the reason for withholding.
MONTHLY RENT= Seller will pay Purchaser $0.00 per month beginning on the date of this
Agreement and continuing through the above Date of Possession. If Seller remains in the Unit after
_________, 2014, the above Date of Possession, Seller will pay damages to Purchaser in the amount
specified below in the paragraph titled "TERMINATION."
UTILITIES= Seller agrees to continue all utility services in Seller's name and to pay all bills
for utility service during the period of the Seller's possession, as they become due.
INSURANCE= Seller will maintain liability insurance covering the Subject Unit
through the date that Seller vacates the Unit with limits of at least $1,000,000 per occurrence
and in the aggregate. Seller is responsible for Seller's personal property insurance. Seller
shall deliver a Certificate of Insurance evidencing Seller is maintaining such insurance
coverage to Purchaser on the date of this Agreement.
MAINTENANCE: Seller will be responsible for all repairs and normal maintenance of
the Unit and all personal property located therein from and after the Date of Closing. Seller
will keep all of the Subject Property in reasonable repair and order. Seller agrees Purchaser
shall have no obligation to maintain or repair the Unit or any part of the Subject Property
including, but not limited to, the roof or any plumbing, mechanical, heating, ventilating or air
conditioning systems.
USE OF SUBJECT PROPERTY- During the term of this Agreement, Seller will occupy
the Unit as Seller's personal residence and Seller will not make any changes to the Unit. Seller
will not assign nor sublease the Unit under this Agreement.
HOLD HARMLESS: Purchaser shall not be liable for injury or death to any person or
damage to property of Seller or of others located in or about the Unit or the Subject Property, nor
for the loss of or damage to any property of Seller or of others by theft, casualty, loss or otherwise,
and Seller hereby waives all such claims against Purchaser and will hold Purchaser exempt and
harmless for or on account of such damage, injury or death. Seller shall also indemnify Purchaser
and its agents against any and all liability, claims, demands, damages, expenses, fees, fines,
penalties, suits, proceedings, actions and costs of actions of any kind and nature, including
reasonable attorneys' fees, for injury or death to persons or damage to property or property rights
in connection with this Agreement or Seller's use and occupation of the Unit or the Subject
Property. The provisions of this Section shall survive the expiration or early termination of this
Agreement.
DESTRUCTION OF UNIT= In the event that the Unit or on the Subject Property is
destroyed or otherwise becomes uninhabitable for any reason, this agreement shall terminate and
Purchaser has no further responsibility to Seller. In the event of habitable repair(s) to the
Subject Property during the tenancy, Seller may elect to be responsible for such habitable
repair(s) at Sellers' cost to continue the tenancy or Sellers may elect to terminate the tenancy and
vacate the Subject Property immediately. In the event that Seller elects not to be responsible for
such habitable repair(s) to continue the tenancy or that damages to the Subject Property results
in it not being habitable, Sellers agree that the tenancy shall terminate immediately and that
Seller shall vacate the Subject Property immediately. In any event, Purchaser shall have no
obligation to complete any repairs of any kind to the Unit or the Subject Property during the
tenancy.
"AS IS The Purchaser makes no warranties or statements with regard to the condition
of Subject Property nor to its suitability for occupancy by the Seller. The Seller accepts the Unit
"as is", with all faults. In the event the Unit is not suitable during the tenancy for occupancy by
Sellers, Sellers agree that the tenancy shall terminate in accordance with preceding section. If
Sellers vacates the Unit in accordance with the preceding section, Seller acknowledges it is
without any rights and/or any claim, including but not limited to, repair, damages, or costs for the
early vacation of the Unit.
QUIET ENJOYMENT= Purchaser promises that upon Seller's performance of Seller's
obligation in this Agreement, Seller will peacefully and quietly have, hold and enjoy the Subject
Property according to this Agreement.
TERMINATION= If Seller fails to leave the Unit and give possession to Purchaser on
. 2014, Purchaser is authorized to re-enter the Unit, take possession thereof and bring an
eviction proceeding to recover possession of the Unit. Purchaser will be entitled to recover
damages from Seller for Purchaser's loss of use in the amount of $100.00 per day beginning on
2014, in addition to all charges and reimbursements stated in this Agreement, and all
reasonable costs which result from obtaining possession of the Subject Property and enforcing the
terms of the Agreement, including reasonable attorney's fees. In the event of any proceeding to
enforce the terms and conditions of this Agreement, the prevailing party shall be entitled to
recover judgment against the other party for the prevailing party's reasonable attorney fees and
court costs.
SELLER'S PROMISES: Seller agrees that:
a. Seller will use the Unit only as a private residence.
b. Seller will not use the Unit in any way that is unlawful, illegal or dangerous.
C. Seller shall not use or store in or near the Unit any inflammable or explosive
substance in an unsafe manner.
d. Seller shall be responsible for maintaining the Unit in compliance with all
applicable laws, ordinance and regulations.
e. Purchaser may enter the Unit for inspection purposes upon no less than 24 hours
reasonable notice to Seller, except in the case of emergencies.
f. Seller shall remove all of Seller's personal property from the Unit on or before
. Any personal property remaining after that date shall be deemed
abandoned and may be disposed of by Purchaser.
DISCLOSURE PURSUANT TO 1VIINNESOTA STATUTES 504B.181: The person authorized by
Purchaser to manage the Unit is:
Steven Stadler
Public Works Director
City of Hopkins
11100 Excelsior Blvd.
Hopkins, MN 55343
The landlord of the Unit or the agent authorized by the landlord to accept service of process and
receive and give receipt for notices and demands is:
Steven Stadler
Public Works Director
City of Hopkins
11100 Excelsior Blvd.
Hopkins, MN 55343
City of Hopkins, Minnesota
Eugene Maxwell, Mayor
(Date)
Michael Mornson, City Manager (Date)
100.14 60 Ili
COPY OF LEASE OF 431 BLAKE
ROAD NORTH
Purchase Agreement. Gimberline. 4.9.14 15
RESIDENTIAL LEASE
for: 431 Blake Road North Hopkins, MN 55343
Minnesota Multi -Housing Association Standard Form Residential Lease
THE MINNESOTA ATIORNEY GENERAL'S OFFICE HAS CERTIFIED THAT THIS LEASE COMPLIES WITH THE MINNESOTA PLAIN LANGUAGE CONTRACT ACT
Ainnesota Statutes, Sections 325G.29 -325G.36). Certification of a contract by the Attorney General under the plain language contract act is not otherwise an approval of the
contract's legality or legal effect.
RESIDENT(S)/TENANT(s): Ronnie Gusaas and Rachael Gusaas
MANAGEMENT CONTACT: David Gimberline 433 Blake Road North Hopkins, MN 55343
ph 952-939-9749
DURATION OF LEASE: Month to Month LEASE STARTING JANUARY 1, 2013
NOTICE PERIOD is 6® days: 2 full month's notice must be given to terminate this Lease prior to the Ending date
MONTHLY RENT: $'1,275.®® (One Thousand Two Hundred Seventy -Five & no/100) must be received at the above
contact address before the 1st of each month.
SERVICE CHARGE: A Late Fee of $25 is immediately due and payable if Rent is not received in full by the 5th of the month.
SECURITY DEPOSIT: $ 0.00 The Security Deposit has been returned in its entirety to the Tenants in recognition of the
extensive remodeling they have done at their expense. .
UTILITIES INCLUDED IN RENT: NONE -
UTILITIES PAID BY RESIDENT: ALL - Heat, Electricity, Water, Trash, Telephone, Cable, Etc .________________
GROUNDS FOR IMMEDIATE EVICTION INCLUDE, BUT ARE NOT LIMITED TO: NON-PAYMENT OF RENT, NON-PAYMENT OF
UTILITIES, ANY USE OF THE PROPERTY BY THE RESIDENTS OR THEIR GUESTS FOR UNLAWFUL ACTS SUCH AS ILLEGAL DRUG ACTIVITY OR
ACTS OF VIOLENCE OR THREATS OF VIOLENCE. IT IS UNDERSTOOD A SINGLE VIOLATION IS GROUNDS FOR EVICTION. PROOF OF
OLATION SHALL NOT REQUIRE CRIMINAL CONVICTION, BUT SHALL BE BY THE PREPONDERANCE OF THE EVIDENCE AT LANDLORDS SOLE
SCRETION. 2 POLICE CALLS, SUCH AS DISTURBING THE PEACE, PUBLIC NUISANCE, ETC. ARE GROUNDS FOR IMMEDIATE EVICTION.
ADDITIONAL:----�/_c,'t_1-1�---/�/r�----,+AN
-- 9/15-/fT jZ_ 400rJ4
--------------------------------------------------------------- -------------------
________________ —_ _--_ --_ --_—__—----_---_----------
Resident is responsible for any and all fees charges to the property by the City or other agencies due to their acts
or the acts of their quests
anagement (acting as agent for the owner of the premises) and Resident agree to the terms of this Lease and any attachments
at may be made part of his L ase.
'snag m1 nt I L "dlo(/d Resident I Tenant:
j 'I Z
1N/ Date I l Jv1-.$ � ,.�^�.__----.-'.'\Date���/J
)avl Imberlin 6nnie Gusaas
ERMS OF THIS LEASE:
Date
RENT
1. PAYMENT: RESIDENT will pay MANAGEMENT the full monthly rent before midnight of the first day of each month while this Lease is in effect and during
any extensions or renewals of this Lease. Rent will be paid as required by MANAGEMENT.
2. WHO IS RESPONSIBLE FOR RENT: Each RESIDENT is individually responsible for paying the full amount of rent and any other money owed to
MANAGEMENT.
3. DUTY TO PAY RENT AFTER EVICTION: If RESIDENT is evicted because RESIDENT violated a term of this Lease. RESIDENT must still pay the full
monthly rent until: 1) the RENTAL UNIT is re rented, 2) the DATE THIS LEASE ENDS, or 3) if the Lease is month to -month, the next notice period ends. If
the RENTAL UNIT is re rented for less than the rent due under this Lease. RESIDENT will be responsible for the difference until the DATE THIS LEASE
ENDS or, if the Lease is month-to-month. until the end of the next notice period.
4. LATE RENT SERVICE CHARGE AND RETURNED CHECK FEE: RESIDENT will pay the SERVICE CHARGE listed above if RESIDENT does not pay
the full monthly rent by the 5th day of the month. RESIDENT also will pay a fee of $40.00 for each returned check.
USE OF RENTAL UNIT
S. OCCUPANCY AND USE: Only the persons listed above as RESIDENTS may live in the RENTAL UNIT. Persons not listed as RESIDENTS may live in
the RENTAL UNIT only with the prior written consent of MANAGEMENT. RESIDENTS may use the RENTAL UNIT and utilities for normal residential
purposes only.
6. SUBLETTING: RESIDENT may not lease the RENTAL UNIT to other persons (sublet), assign this Lease or sell this Lease without the prior written
consent of MANAGEMENT.
7. RESIDENT PROMISES: 1) Not to act in aloud, boisterous, unruly or thoughtless manner or disturb the rights of the other residents to peace and quiet. or
to allow his/her guests to do so: 2) to use the RENTAL UNIT only as a private residence, and not in any way that is illegal or dangerous or which would
cause a cancellation, restriction or increase in premium in MANAGEMENTS insurance: 3) not to use or store on or near the RENTAL UNIT any
flammable or explosive substance: 4) not to interfere in the management and operation of the RENTAL UNIT building.
8. WATERBEDS: RESIDENT may not keep a waterbed or other water -filled furniture in the RENTAL UNIT without the prior written consent of
MANAGEMENT.
9. PETS: RESIDENT may not keep animals or pets of any kind in the RENTAL UNIT without the written consent of MANAGEMENT.
CONDITION OF RENTAL UNIT
10. MANAGEMENT PROMISES: 1) That the RENTAL UNIT and all common areas are fit for use as a residential premises: 2) to keep the RENTAL UNIT in
reasonable repair and make necessary repairs within a reasonable time atter written notice by RESIDENT except when damage is caused by the
intentional or negligent conduct of the RESIDENT or his/her guests: 3) to maintain the RENTAL UNIT in compliance with applicable health and safety
codes except when a violation of the health and safety codes has been caused by the intentional or negligent conduct of the RESIDENT or his/her guests;
4) to keep the common areas clean and in good condition.
11. RESIDENT PROMISES: 1) Not to damage or misuse the RENTAL UNIT or waste the utilities provided by MANAGEMENT or allow his/her guests to do
so; 2) not to paint or wallpaper the RENTAL UNIT. or make any structural changes in the RENTAL UNIT without the prior written consent of
MANAGEMENT: 3) to keep the RENTAL UNIT clean; 4) to give written notice to MANAGEMENT of any necessary repairs to be made: 5) to notify
MANAGEMENT immediately of any conditions in the RENTAL UNIT that are dangerous to human health or safety, or which may damage the RENTAL
UNIT or waste utilities provided by MANAGEMENT; 6) that when RESIDENT moves out, the RENTAL UNIT will be left in good condition, except for
ordinary wear and tear, 7) not to remove any fixtures or furnishings supplied by MANAGEMENT without the prior written consent of MANAGEMENT.
12. SECURITY DEPOSIT: MANAGEMENT may keep all or part of the security deposit a) for damage to the RENTAL UNIT beyond ordinary wear and tear,
and b) for rent or other money owed to MANAGEMENT. In compliance with Minnesota Statute 504B.178, the SECURITY DEPOSIT MAY NOT BE
USED BY THE TENANT AS LAST MONTH'S RENT. Failure to pay the last month's RENT may make the RESIDENT liable for an amount equal to
DOUBLE THE DAMAGES due.
13. DESTROYED OR UNLIVEABLE RENTAL UNIT: If the RENTAL UNIT is destroyed or damaged so it is unfit to live in due to any cause, MANAGEMENT
may cancel this Lease immediately and may choose not to rebuild or restore the RENTAL UNIT. If the destruction or damage was not RESIDENT'S fault
and MANAGEMENT cancels this Lease, rent shall be prorated and the balance will be refunded to RESIDENT.
DURATION OF LEASE
14. FAILURE TO GIVE POSSESSION: If MANAGEMENT cannot provide the RENTAL UNIT to RESIDENT at the start of this Lease, RESIDENT cannot sue
MANAGEMENT for any resulting damages but RESIDENT will not start paying rent until he/she gets possession of the RENTAL UNIT.
15. MOVING OUT BEFORE LEASE ENDS: If RESIDENT moves out of the RENTAL UNIT before the DATE THIS LEASE ENDS, RESIDENT is responsible
for rent and any other losses or costs including court costs and attorney's lees.
16. TERMINATION OF LEASE WITH SPECIFIED ENDING DATE: If RESIDENT wishes to move out of the RENTAL UNIT on the DATE THIS LEASE
ENDS, RESIDENT must give MANAGEMENT prior written notice equal to the NOTICE PERIOD. If RESIDENT fails to give proper notice, MANAGEMENT
may a) extend the Lease for one NOTICE PERIOD and b) raise the rent. If RESIDENT stays in the RENTAL UNIT after the DATE THIS LEASE ENDS
with the approval of MANAGEMENT, and RESIDENT and MANAGEMENT have not renewed this Lease or entered into a new Lease, this Lease shall be
extended under its original terms except a) the duration shall be changed to month-to-month, and b) MANAGEMENT may raise the rent
17. TERMINATION AND ALTERATION OF MONTH-TO-MONTH LEASE: When the Lease is month-to-month, MANAGEMENT and RESIDENT may
terminate the Lease only by giving the other party written notice equal to the NOTICE PERIOD. A notice to cancel a Lease is effective on the last day of a
month. MANAGEMENT may change any of the terms of a month-to-month Lease, including the amount of rent, by giving Resident written notice at least
equal to the NOTICE PERIOD.
18. MOVING OUT OF THE RENTAL UNIT: RESIDENT will move out of the RENTAL UNIT when this Lease ends. If RESIDENT moves out after this Lease
ends, RESIDENT shall be liable to MANAGEMENT for any resulting losses including rent, court costs and attorney's fees.
RIGHTS OF MANAGEMENT
19. EVICTION: If RESIDENT violates any of the terms of this Lease, RESIDENT may be evicted immediately and without prior notice. If RESIDENT is evicted
but does not move out voluntarily, MANAGEMENT may bring an eviction action. If RESIDENT violates a term of this Lease but MANAGEMENT does not
sue or evict RESIDENT, MANAGEMENT may still sue or evict RESIDENT for any other violation of any term of this Lease.
20.ATTORNEY'S FEES: If MANAGEMENT brings any legal action against RESIDENT. RESIDENT must pay MANAGEMENTS actual attorney's fees and
court costs even if rent is paid after the legal action is started.
21. MANAGEMENTS RIGHT TO ENTER: MANAGEMENT and its authorized agents may enter the RENTAL UNIT at any reasonable time to inspect,
improve, maintain or repair the RENTAL UNIT, or do other necessary work, or to show the RENTAL UNIT to potential new RESIDENTS or buyers.
22. MANAGEMENTS LEGAL RIGHTS AND REMEDIES: MANAGEMENT may use its legal rights and remedies in any combination. By using one or more of
these rights or remedies MANAGEMENT does not give up any other rights or remedies it may have.
23. LEASE IS SUBJECT TO MORTGAGE: The RENTAL UNIT building may be mortgaged or may be subject to a contract for deed. RESIDENT agrees that
the rights of the holder of any present or future mortgage or contract for deed are superior to RESIDENT'S rights. For example, if a mortgage on the
RENTAL UNIT building is foreclosed, the person who forecloses on the RENTAL UNIT building may, at their option, terminate RESIDENT's Lease.
LIABILITY OF RESIDENT AND MANAGEMENT
24. DAMAGE OR INJURY TO RESIDENT OR HIS/HER PROPERTY: MANAGEMENT is not responsible for any damage or injury that is done to RESIDENT
or his/her property, guests or their property that was not caused by MANAGEMENT. MANAGEMENT recommends that RESIDENT obtain Renter's
Insurance to protect against injuries or property damage.
25. ACTS OF THIRD PARTIES: MANAGEMENT is not responsible for the actions, or for any damages, injury or harm caused by third parties (such as other
residents, guests, intruders or trespassers) who are not under MANAGEMENTS control.
26. RESIDENT SHALL REIMBURSE MANAGEMENT FOR: 1) Any loss, property damage. or cost of repair or service (including plumbing problems) caused
by negligence or improper use by RESIDENT, his/her agents, family or guests; 2) any loss or damage caused by doors or windows being left open; 3) all
costs MANAGEMENT has because of abandonment of the RENTAL UNIT or other violations of the Lease by RESIDENT. such as costs for
advertising the RENTAL UNIT; 4) all court costs and attomey's lees MANAGEMENT has in any suit for eviction, unpaid rent. or any
other debt or charge.
27. WHEN PAYMENTS ARE DUE: Any amount owed by RESIDENT is due when MANAGEMENT asks for it. MANAGEMENT does not give up its right to
any money owed by RESIDENT because of MANAGEMENT'S failure or delay in asking for any payment. MANAGEMENT can ask for any money owed
by RESIDENT before or after RESIDENT moves out of the RENTAL UNIT.
MISCELLANEOUS
28. FALSE OR MISLEADING RENTAL APPLICATION: If MANAGEMENT determines that any oral or written statements made by RESIDENT in the rental
application or otherwise are not true or complete in any way, then RESIDENT has violated this Lease and may be evicted.
29. BUILDING RULES AND ATTACHMENTS ARE PART OF LEASE; NO ORAL AGREEMENTS: Any attachments to this Lease are a part of this Lease. If
a tens of any attachment conflicts with any term of this Lease, the attachment tens will be controlling. MANAGEMENTS building rules are a part of this
Lease, and MANAGEMENT may make reasonable changes in these rules at any time by giving RESIDENT written notice. No oral agreements have been
made. This Lease and its attachments and any other written agreements are the entire agreement between RESIDENT and MANAGEMENT.
30. NOTICES: All RESIDENTS agree that notices and demands delivered by MANAGEMENT to the RENTAL UNIT are proper notice to all RESIDENTS.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2014-024
RESOLUTION APPROVING PURCHASE AGREEMENT
FOR ACQUISITION OF REAL PROPERTY AT
431-433 BLAKE ROAD NORTH
WHEREAS, the City of Hopkins is in the process of expanding and redeveloping
Cottageville Park and 431-433 Blake Road North property is the sole remaining residential
property separating the expanded park area from Blake Road, and:
WHEREAS, the City acquired the adjacent real property located at 435-437 Blake Road
North from the Metropolitan Council on October 5, 2012;
WHEREAS, this residential property is needed to expand the park, provide enhanced
storm water treatment and complete the park redevelopment as approved in the Cottageville Park
master plans, and:
WHEREAS, as the City's representatives have negotiated a Purchase Agreement (the
"Purchase Agreement") with David Gimberline, the owner of 431-433 Blake Road North, by
which the owner has offered to sell that real property to the City for a purchase price of
$350,000.00;
WHEREAS, the Hopkins City Council finds that the City's acquisition of the real
property at 431-433 Blake Road North in accordance with the terms and conditions of the
Purchase Agreement will facilitate and be in furtherance of the City's plan to expand and
improve Cottageville Park and is also consistent with the City's goal of improving the Blake
Road corridor;
THEREFORE, BE IT RESOLVED, that the City Council of the City of Hopkins
hereby approves the Purchase Agreement between the City and David Gimberline for the
purchase of 431-433 Blake Road North for a purchase price of $350,000, and authorizes the
Mayor and City Manager to execute such Purchase Agreement on behalf of the City and to
execute and deliver all documents necessary to facilitate and complete the acquisition of 431-433
Blake Road North by the City in accordance with the terms thereof.
Adopted by the City Council of the City of Hopkins this 20th day of May, 2014.
Eugene J. Maxwell, Mayor
Attest:
Amy Domeier, City Clerk