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HomeMy WebLinkAboutEDA - April 21, 2015C 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING April 21, 2015 6:00 p.m. Conference Rooms A & B 1. Call to Order — 6:00 p.m. 2. Approval of Minutes (March 17, 2015 Regular) 3. Public Hearing: Consider Sale of Lot 2, Block 1, Andover Station North 2nd Addition 4. Approve Purchase Agreement — Leon Properties Uno, LLC 5. Economic Development Updates (verbal) 6. Redevelopment Updates (verbal) 7. Other Business 8. Adjournment ,A,Lb6 jO@ `i®r 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV TO: Economic Development Authority \\ ' CC: Jim Dickinson, City Administrator FROM: Michelle Hartner, Deputy City SUBJECT: Approval of Minutes DATE: April 21, 2015 The following minutes were provided by Timesaver reviewed by Administration and submitted for EDA approval: March 17, 2015 Regular DISCUSSION The minutes are attached for your review. ACTION REQUIRED The EDA is requested to approve the above minutes. Respectfully submitted, Michelle Hartner Deputy City Clerk Attach: Minutes 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 ANDOVER ECONOMIC DEVELOPMENT AUTHORITYMEETING —MARCH l7, 2015 MINUTES The Meeting of the Andover Economic Development An Julie Trude, March 17, 2015, 6:00 p.m., at the Andover NW, Andover, Minnesota. Present: Absent: Also present: APPROVAL OFMINUTES Commissioners Mike Knight, SHE James Goodrich, an yce Twisto Commissioner Ti notliy Cleven Executive Direeta Jim Dickinson Community DeveleTxxent Director February 2, 2015 Regular EDA Motion by Bukkila, Minutes. Motion ci DISCUSS to consider-extend housing district as the TIF district an senior housin2IMA Mr. Carlberg called to order by President 1685 Crosstown Boulevard Valerie Holthus, , Dave 2015 Regular EDA ASSISTED LIVING FACILITY opment Director Carlberg stated >the EDA is requested by Presbyterian Homes ing a TIF note that has expired within Tax Increment Financing District 1 -3, a requested The p4j*$se of the request is to extend the benefits derived from additional 10 _years artrl1 y doing so insuring that twenty percent (20 /) of the ts,remain affordable within the Farmstead project. with the Commission. Mr. Dickinson stated they would not be extending the life of the district, the district is currently a twenty-five year district. The deal with Presbyterian Homes was for a fifteen year note and that last payment was made in February 2015 so what is being discussed is the last ten years of the district. Mr. Dickinson stated if the TIF District were to end there would not be any guarantee that the twenty -eight homes would continue to be affordable housing for seniors. Mr. Mark Meyers, representing Presbyterian Homes, stated the rent differential amounts to approximately $360 per unit per month on the twenty -eight units and as an organization they are not going to immediately move to market rate rents but most likely they would have to over time because El 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Andover Economic Development Authority Meeting Minutes —March 17, 2015 Page 2 they would not have the economic benefit to bridge that $360 gap per month. He stated the basis of their request is to keep serving low to moderate income seniors at the Farmstead, but in order to do that they need to find a way to support those lower rents. President Trude stated the City is getting the whole benefit of the property taxes on the project now and are they using a portion or all of that. Mr. Dickinson stated what is eligible for them to request is ninety percent of the tax increment. He stated the request would correlate with dollars. Last year the total tax increment paid was $141,902 so ninety percent would be approximately $127,000 which is what has been provided. If they had to do a projection for the next ten years the average amount would be around $120,000 to $125,000 on average. Mr. Meyers stated that is the amount of tax increment being rebated back to them. Commissioner Holthus asked what would happen with the individuals that are getting the rent benefit from this. Mr. Meyers stated in their leases they do reserve the ability to within a 45 day notice they could increase their rent but as a practice their organization would not do that and they would most likely do this through attrition, so as units turn over they would convert those units to a market rate at that time. Commissioner Knight asked what the impact is on the residents in Andover. Mr. Dickinson stated the total increment from last year is about $142,000 of which the City keeps ten percent of that for management. The City, County and School District taxes make up the $142,000 about thirty to thirty -five percent of that bill is the City portion. The impact is if they elect to have the district go for another 10 years and find another project within the development district to utilize those funds it has to meet this TIF district's budget. Right now the budget has the ability to fund a note and if they decertify they would see some benefit to the overall tax base for the City of about $42,000. The County and School District would get some additional funds but it is relative on how the levy is spread and there could be a tax rate affect. Commissioner Bukkila indicated she would like to decertify the district. President Trude stated she would like to support the Presbyterian Homes request. Commissioner Twistol asked if the Met Council has any position on the fact that they have subsidized senior housing. Mr. Dickinson stated they look at this as favorable. Commissioner Bukkila thought the original deal was a good opportunity to develop the community and bring business in but once they achieve their original goals, it is reasonable to let it go on its own. Commissioner Goodrich asked if there was communications with the Farmstead residents. Mr. Meyers stated there has not been any communication because they will probably not do anything drastically to their rent so they did not want to alarm their residents of a possible rent increase. President Trude thought the request would be a benefit to the community. One issue she would like to see rectified with some of the TIF dollars, is parking which seems to be a big problem for Andover Economic Development Authority Meeting Minutes —March 17, 2015 Page 3 the Farmstead. 2 3 Commissioner Twistol stated she does income tax returns and she volunteers as a part of AARP 4 and she thought they had an obligation as a community to assist the seniors as much as they can. 5 She stated she is in favor of helping Presbyterian Homes out. President Trude stated the City provides activities and space for youth and the senior's needs are different than the youth and there is not a big drain on the community. 10 Mr. Dickinson asked if there was interest in looking at a proposal to see what this could be, it is a 11 give and take process and they would have to produce qualifying costs such as improved 12 parking, additional landscaping or exterior improvements. 13 14 Commissioner Goodrich asked what the rent cost of the units is. Mr. Meyers stated the rent 15 restricted units are approximately $780 a month, which is about half of what the other units rent 16 for. 17 18 Commissioner Holthus indicated she would like to extend the note with Presbyterian Homes. 19 20 Commissioner Goodrich stated he is ok with decertifying the district because it has been going 21 on for fifteen years and with that length of time they should have prepared for the expiration of 22 the note. He generally doesn't support taking other people's money and giving it to others. 23 24 It was determined that with a majority of the EDA in support, staff would continue discussion on 25 this item. Commissioners Bukkila and Goodrich indicated they would prefer to decertify. Staff 26 was directed to solicit Commissioner Cleven for his opinion on this. 27 28 Commissioner Holthus indicated she would like to see more landscaping. Commissioner 29 Twistol agreed. 30 31 CONSIDER PARTICIPATION IN THE METROPOLITAN CONSORTIUM OF 32 COMMUNITY DEVELOPERS "OPEN TO BUSINESS" PROGRAM 33 34 Ms. Kathleen DuChene, Business Advisor for the Metropolitan Consortium of Community 35 Developers (MCCD) made a presentation to the Commission. 36 37 Mr. Carlberg stated they would look at this "open to business" program as an extension to the 38 Anoka County cities. What Ms. DuChene is asking is for cities to put this information on their 39 website, in newsletters, in utility bills, etc. 40 41 Ms. DuChene stated this is a free program to residents and businesses and free to all cities in 42 2015 because the Anoka County HRA is currently footing the bill. She indicated she did not 43 know what the fee will be in 2016 but the City can try it out for free for 2015. 44 Andover Economic Development Authority Meeting Minutes —March 17, 2015 Page 4 1 Commissioner Twistol asked how the staff is funded. Ms. DuChene stated she is a paid 2 professional and they are all salaried. They have a vested interest to make sure this program is 3 successful. She believes in it and they are all experienced professionals. MCCD is primarily 4 funded through the interest earnings on loans. 6 Commissioner Bukkila asked if there is a Board for the non - profit. Ms. DuChene indicated there 7 is. She stated the organization has 14 staff members and they have 48 members in their 8 organization and some are on the Board of Directors. There is community participation on the 9 board.. 10 11 President Trude indicated she did not feel like she knew enough about this to publicize it. Mr. 12 Carlberg stated they could put a little paragraph in the next Andover Today related to this. They 13 could also put the information on the website to test the waters and see if there is any interest. 14 15 Commissioner Bukkila stated she would like to know more about the structure. She thought it 16 seems to be more like a business because the interest on some of the business loans is cycled 17 back into their operational costs and they have a financial gain. Ms. DuChene stated that is how 18 they pay salaries. She stated they are a nonprofit and apply for grant money and get money from 19 foundations and Federal level grants. 20 21 Commissioner Bukkila asked what the Chamber of Commerce position is on this. Mr. Carlberg 22 indicated the chambers are supportive. Mr. Carlberg stated if the City wants to take on the role 23 of what the County is doing this year, the cost next year will be approximately $5,000 to $7,000. 24 Commissioner Bukkila stated if the City did not agree to do this, residents could still get the 25 service at the County level. Ms. DuChene indicated that is correct. 26 27 President Trude stated she did not have a problem with trying this out but one of her concerns is 28 competing with the loan market locally that would actually be better for their business clients but 29 what she understood is MCCD is serving people that are being turned away by conventional 30 banks for loans. Ms. DuChene indicated that is correct. Their mission is to primarily serve 31 people who cannot get traditional loans through banks. They would prefer the business first go 32 to the bank to get a loan and they will help the business get prepared for trying to get a loan 33 through a conventional bank. They can also help people decide if starting a business is right for 34 them. 35 36 Ms. DuChene reviewed her background with the Commission. 37 38 Commissioner Bukkila stated she did not have a problem with this but questioned how much do 39 they want to get involved at a City level. 40 41 Consensus of the Commission was to allow a trial run in 2015 for the "open to business" 42 program in Andover. 43 44 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Andover Economic Development Authority Meeting Minutes —March 17, 1015 Page 5 ECONOMIC DEVELOPMENT UPDATES Mr. Carlberg updated the Commission on EDA items. REDEVELOPMENT UPDATES Mr. Dickinson updated the Commission on redevelopment activities. OTHER BUSINESS None. ADJOURNMENT Motion by Commissioner Bukkila, Seconded by Commissioner Goodrich, to adjourn. Motion carried unanimously. The meeting adjourned at 6:57 p.m. Respectfully submitted, Sue Osbeck, Recording Secretary 6 W 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.AN DOVE R.MN. US TO: EDA President and Board CC: Jim Dickinson, Executive Director FROM: David L. Carlberg, Community De rentDirector SUBJECT: Public Hearing on EDA Land Sale: Lot 2, Block 1, Andover Station North 2nd Addition DATE: April 21, 2015 According to State Statute, the EDA must hold a public hearing prior to any land sale. Lot 2, Block 1, Andover Station North 2nd Addition is being sold. The legal notice has been published at least ten days prior to this meeting (on 4/10/15). ACTION REQUESTED The EDA is requested to open the public hearing and request public comment. Upon receiving public comment the EDA may close the public hearing and discuss the proposed resolution. The EDA should pass a resolution indicating it is in the public's interest to sell the property and that the specified intended use of the parcel is in keeping with the interest of the City of Andover EDA to further the development of Andover Station North (see attached resolution). Staff recommends the land sale be completed as it meets the original objective of redeveloping the area with a diversity of different uses that will meet the needs of the broader community. ACTION REQUIRED The EDA is requested to hold a public hearing and take public comment on the proposed land sale. The EDA is also requested to review and consider the attached resolution. If the EDA agrees with the findings in the resolution, a motion to approve the resolution and allow the land sale would be in order. Respectfully submitted, David L. Carlberg Attachments Legal Notice and Resolution CITY OF ANDOVER EDA COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. -15 A RESOLUTION APPROVING THE LAND SALE OF A PARCEL LOCATED IN ANDOVER STATION NORTH WHEREAS, the City of Andover Economic Development Authority (EDA) has held a public hearing to gather public comments on the proposed land sale and to disclose the pending land sale of Lot 2, Block 1, Andover Station North 2d Addition, and WHEREAS, the findings substantiating that it is in the public interest to sell the EDA owned parcel to the buyer include the following: The land sale will increase local jobs and increase the local tax base. NOW, THEREFORE, BE IT RESOLVED by the EDA of the City of Andover, Anoka County, Minnesota, that the public hearing has been held and it has been found to be in the public's interest to sell EDA owned land described as Lot 2, Block 1, Andover Station North 2 'd Addition. Adopted by the EDA of the City of Andover on this 21' day of April, 2015. Attest: Michelle Hartner — Deputy City Clerk 2 CITY OF ANDOVER EDA Julie Trude, President "A Map :! j ill - t- �. 13783 d 13]]9 11]] M1 tag 1J]53 �y. f r i �1]16 • 13 AI � , ..,- Y a 5 .. �'f� 116n 135a { N Disclaimer: Maps and documents made available to the public by the City of Andover are not legally recorded maps or surveys and are not intended to be used as such. The maps and documents are created as part of the Geographic Information System (GI 9) w _„ a that compiles records, information, and data from various city, county, state and federal resources. Copyright © 2013 City of Andover, Ali Rights Reserved s Printed 04/10/2015 A,Lb S` 6 O F �• , 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: EDA President and Board CC: Jim Dickinson, Executive Director FROM: David L. Carlberg, Community Development Director SUBJECT: Approve Purchase Agreement — Leon Properties Uno, LLC — Lot 2, Block 1, Andover Station North 2nd Addition DATE: April 21, 2015 The EDA is requested to approve the attached Purchase Agreement with Leon Properties Uno, LLC for the sale of Lot 2, Block 1, Andover Station North 2 d Addition. BACKGROUND The EDA this evening held a public hearing and adopted a resolution approving the land sale. The EDA found that it is in the public's interest to sell the property and that the specified intended use of the parcel is in keeping with the interest of the City of Andover EDA to further the development of Andover Station North. Staff recommends the land sale be completed as the sale meets the original objective of redeveloping the area with a diversity of different uses that will meet the needs of the broader community. ACTION REQUESTED The EDA is requested to approve the attached Purchase Agreement and direct Staff to complete the land sale. Respectfully submitted, David L. Carlberg Attachments Purchase Agreement PURCHASE AGREEMENT 1. PARTIES. This Purchase Agreement is made on April 21, 2015, by and between Andover Economic Development Authority (AEDA), a body corporate and politic, 1685 Crosstown Boulevard NW, Andover, Minnesota, ( "Seller"), and Leon Properties Uno, LLC, a Minnesota corporation, 2021 Broadway Street North, Stillwater, Minnesota, 55082 and /or their assigns ( "Buyer"). 2. OFFER /ACCEPTANCE. Buyer agrees to purchase and Seller agrees to sell real property legally described as follows: Lot 2, Block 1, Andover Station North 2nd Addition, Subject to Easements of Record All as generally shown on Exhibit A attached hereto and made a part hereof. 3. PURCHASE OF LOT WITH BUILDING OR VACANT LOT. (Check paragraph that pertains.) A. Buyer is purchasing the lot with an existing building. X B. Buyer is purchasing a vacant lot. 4. PRICE AND TERMS. The price for the real property included in this sale: Four Hundred Fifty Thousand Dollars ($450,000.00). This price includes $438,623.00 for land and $11,377.00 for park dedication fees, which Buyer shall pay as follows: Earnest money of Fifteen Thousand and no/ 100 Dollars ($15,000.00) by check, receipt of which is hereby acknowledged, and Four Hundred Thirty Five Thousand Dollars ($435,000) cash on or before June 30, 2015 ( "Closing Date "). Seller will consider extending the Closing Date an additional sixty (60) days if the Buyer can prove that they are engaged in the process of obtaining approvals and permits set forth in Section 5(b) below, and is in the process of obtaining financing, and has proven that they are financially capable of completing the purchase. If Buyer cancels this Agreement in writing at any time during the due diligence period, including the potential sixty day extension of the Closing Date, Buyer's earnest money shall be completely refunded to the Buyer within ten (10) business days of Seller's receipt of the written notice of cancellation. If Buyer fails to cancel this Agreement within said time period, Buyer's earnest money shall become non- refundable to Buyer. 1 The purchase price is based upon a site estimated to be 57,020 square feet. The price herein represents a per square foot price for the gross area of $7.89. Said price includes the land price, park dedication fees, all water and sewer area charges and all assessments for street, curb and gutter, sidewalks, storm sewer, sanitary sewer, and water main assessments. 5. CONTINGENCIES. Buyer's obligations under this Purchase Agreement are contingent upon the following: (a) Seller shall permit Buyer, at Buyer's expense, to enter the Property to conduct investigations and testing and Buyer shall be completely satisfied with the environmental and soil conditions of the Property, as determined by Buyer in Buyer's sole discretion. (b) Buyer shall have obtained all zoning, land use, signage, watershed, environmental and other governmental approvals and permits Buyer shall deem necessary to use the Property in the manner contemplated by Buyer, including, but not limited to, a full building permit for a building conforming to Seller's design standards which Buyer determines can be built for a price acceptable to Buyer, all as determined by Buyer in Buyer's sole discretion. (c) Buyer shall have determined that the roads, easements, driveways, utilities, points of access and other infrastructure serving the Property will be adequate for Buyer's purposes, as determined by Buyer in Buyer's sole discretion. (d) On or before the Closing Date, Title shall have been found acceptable, in accordance with the requirements and terms of Sections 14 and 15 below. (e) Buyer, on or before the Closing Date, shall have received, reviewed and determined that it is satisfied with the matters disclosed by the survey of the Property. (i) The representations and warranties made by Seller in Section 10 shall be correct as of the Closing Date with the same force and effect as if such representations were made at such time. (g) Seller shall comply with the requirements and terms of Sections 21 and 22 below. (h) Seller acknowledges that Andover EDA has constructed multi - tenant area identification signs at two locations (One on the SE corner of Lot 2, Block 1, Andover Station North 2nd Addition; and One along Hanson Boulevard on the NE corner of Outlot A, Andover Station North). The Buyer shall be Is 2 entitled to one -ninth of the total sign space (on both sides of each sign) to represent the business on the subject property. The actual business nameplate construction and installation on the sign shall be the Buyers responsibility. The Declaration of Covenants covers the on -going costs/ maintenance responsibility of the signs. It indicates that it shall be the responsibility of all members in the Andover Station North Owners Association to bear on a proportionate basis. (i) Seller acknowledges the Buyer will build a 6,500 square foot restaurant on the subject property. In the event any of the above contingencies have not been satisfied or waived by Buyer on or before the Closing Date, this Agreement shall be voidable at the option of the Buyer. 6. DEED /MARKETABLE TITLE. Upon performance by Buyer, Seller shall execute and deliver a Warranty Deed conveying marketable title, subject to: A. Building and zoning laws, ordinances, state and federal regulations; B. Restrictions relating to use or improvement of the property without effective forfeiture provisions which do not interfere with Buyer's intended use of the property; C. Reservation of any mineral rights by the State of Minnesota; D. Utility and drainage easements which do not interfere with Buyer's intended use of the property. E. Declaration of Covenants filed by the Andover Economic Development Authority. 7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Real estate taxes due and payable in and for the year of closing shall be prorated between Seller and Buyer on a calendar year basis to the actual Closing Date. Seller shall pay on the Closing Date all special assessments for street, storm sewer, sanitary sewer, water main and water area charges and sewer area charges and any and all other special assessments against the Property levied and pending as of the date of closing. Buyer shall pay real estate taxes due and payable in the year 3 following closing and thereafter and any unpaid special assessments payable therewith and thereafter. Seller makes no representation concerning the amount of future real estate taxes or of future special assessments. 8. SELLER'S OBLIGATIONS. (a) Seiler warrants that there has been no labor or material furnished to the property in the past 120 days for which payment has not been made. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the property. These warranties shall survive the delivery of the warranty deed. (b) Seller, at its sole cost and expense, shall deliver to Buyer and Title Company a survey (the "Surve ) of the Property, prepared by a surveyor licensed in the State of Minnesota, dated subsequent to the date of this Agreement, certified in favor of Buyer, Buyer's nominee, if any, and the Title Company. The Survey shall contain the surveyor's certification that the Property or any part thereof is not located within a wetland or area that has been designated by the Federal Emergency Management Agency, the Army Corps of Engineers or any other governmental agency as having or being subject to special flood hazards or shall, in the alternative, identify and designate such areas and certify the gross acreage of such areas. (c) Seller shall cause all sanitary sewer, water and storm drainage utilities to be constructed to the edge of the property at Seller's expense. 9. BROKERAGE. Buyer agrees to pay Seller's real estate agent, Premier Commercial Properties, LLC a brokerage commission of 3.5% of the purchase price at closing. 10. REPRESENTATIONS AND WARRANTIES OF SELLER. Seller represents and warrants to and covenants with Buyer that: (a) Seller is the owner of fee simple title to the Property and that Seller has the power and authority to enter into and perform the terms and conditions of this Agreement, and such performance will not conflict with or result in a breach of any of the terms, conditions or provisions of any agreement or instrument to which Seller is a party or by which it is bound, or constitute a default under any of the foregoing; this Agreement is valid, binding and enforceable against Seller in accordance with its terms. (b) Seller has not received any notice of and Seller is not aware of any violation of any law, municipal ordinance or other governmental requirement 12 affecting the Property, including without limitation any notice of any fire, health, safety, building, pollution, environmental or zoning violation. (c) Seller has not received any written notice of any condemnation or eminent domain proceedings, or negotiations for purchase in lieu of condemnation, relating to the Property, or any portion thereof; and Seller has no actual knowledge that any condemnation or eminent domain proceedings have been commenced or threatened in connection with the Property, or any portion thereof. (d) (1) The Property (A) is not subject to any private or governmental lien or judicial or administrative notice, order or action relating to Hazardous Substances or environmental problems, impairments or liabilities with respect to the Property and (B) to Seller's knowledge, is not in, or with any applicable notice and /or lapse of time, and /or failure to take certain curative or remedial actions, will not be in violation of any Environmental Laws (as herein defined). (2) Seller shall not allow, prior to Closing, any Hazardous Substances to exist or be stored, generated, used, located, discharged, released, possessed, managed, processed or otherwise handled on the Property, and shall comply with all Environmental Laws affecting the Property. (3) Seller shall immediately notify Buyer should Seller become aware of (A) any Hazardous Substance or other environmental problem or liability with respect to the Property, (B) any lien, order, action or notice of the nature described in subparagraph (1) above, or (C) any litigation or threat of litigation relating to any alleged unauthorized release, discharge, generation, use, storage or processing of any Hazardous Substance or the existence of any Hazardous Substance or other environmental contamination, liability or problem with respect to or arising out of or in connection with the Property. As used herein, "Hazardous Substances" means any matter giving rise to liability under the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq., the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Sections 9601 et seq. (including the so- called "Superfund" amendments thereto), or other applicable, federal, state or local statute, law, ordinance, rule or regulation governing or pertaining to any hazardous substances, hazardous wastes, chemicals or other materials, including without limitation asbestos, polychlorinated biphenyls, radon, petroleum and any derivative thereof, or any common law theory based on nuisance or strict liability (all of the foregoing statutes, laws, ordinances, rules, 5 regulations and common law theories being sometimes collectively hereinafter referred to as "Environmental Laws "). (e) No litigation or proceedings are pending or, to Seller's knowledge, contemplated, threatened or anticipated, relating to the Property, or any portion thereof. (f) Seller has no knowledge of any unrecorded agreements, undertakings or restrictions which affect the Property. There are no tenants, persons or entities occupying any portion of the Property and no claim exists against any portion of the Property by reason of adverse possession or prescription. (g) To the Seller's knowledge (i) there is no obligation with respect to the Property for any assessment, annexation fee, payment, donation or the like, (other than general real estate taxes, which are required to be paid by the Buyer); (ii) there are no obligations in connection with the Property of any so- called "recapture agreement" involving refund for sewer extension, oversizing utility, lighting or like expense or charge for work or services done upon or relating to the Property or otherwise; and (iv) there is no unexecuted paving agreement or undertaking with any government agency respecting construction or any acceleration or de- acceleration lane, access, or street lighting. (h) To the best of Seller's knowledge, the Property is properly zoned for Buyer's intended use of the Property. (i) Within twenty one (21) days of the date of this Purchase Agreement, Seller shall deliver to Buyer for Buyer's use and review of the Property, all background information and documents for the Property, including engineering reports, soils study reports and environmental studies or assessments in possession of seller. 0) Seller represents and warrants that the Property is a buildable parcel without the need of any soil corrections. If soil corrections are found to be needed, it will be the responsibility of the Seller to pay all costs associated with the corrective work. If, prior to the Closing Date, Seller obtains knowledge of a fact or circumstance the existence of which would constitute a breach by Seller of its representations and warranties hereunder or would render any such representations and warranties materially untrue or incorrect, Seller shall promptly notify Buyer in writing of the same. Under said circumstances, and in addition to any other right or remedy that may be available to Buyer, Buyer, at its option, may terminate this Agreement without further liability by giving 0 written notice thereof to Seller, in which event the earnest money shall promptly be returned to Buyer. All representations, warranties, covenants, indemnities and undertakings made herein shall be deemed remade as of Closing and shall be true and correct as of Closing and shall be deemed to be material and to have been relied upon by the parties, notwithstanding any investigation or other act of Buyer heretofore or hereafter made, and shall survive Closing and execution and delivery of the General Warranty Deed for a period of twenty-four (24) months after the Closing Date. 11. BUYER'S OBLIGATIONS. (a) Buyer shall construct a building upon the property that will be built of materials and design that follows the Andover Station North Design Guidelines (unless deviations are allowed by the Andover EDA). Buyer's obligation shall survive the closing on this transaction. (b) Buyer acknowledges that it has had (and will have) an adequate opportunity to inspect the Property and, upon closing the transaction contemplated by this Agreement, shall be deemed to have accepted the Property in "AS IS" and "WHERE IS" condition with any and all faults, except as specifically provided in this Agreement. Seller hereby disclaims all warranties, whether oral or written, express or implied, as to the Property's merchantability, fitness for a particular purpose, condition, type, quantity or quality, except as specifically provided in this Agreement. 12. DISCLOSURE OF NOTICES. Seller has not received any notice from any governmental authority as to violation of any law, ordinance or regulation. If the property is subject to restrictive covenants, Seller has not received any notice from any person as to a breach of the covenants. 13. POSSESSION. Seller shall deliver possession of the Property not later than Date of Closing or on a date up to sixty (60) days subsequent to the Date of Closing in the event the Date of Closing is extended in accordance with Section 4 above, whichever shall last occur. 14. EXAMINATION OF TITLE. Seller shall, within a reasonable time after acceptance of this Agreement, furnish an Abstract of Title, or a Registered Property Abstract, certified to date to include proper searches covering bankruptcies, State and Federal judgments and liens. Buyer shall be allowed 30 business days after receipt for examination of title and making any objections, which shall be made in writing or deemed waived. 7 15. TITLE CORRECTIONS AND REMEDIES. Seller shall have 120 days from receipt of Buyer's written title objections to make title marketable. Upon receipt of Buyer's title objections, Seller shall, within ten (10) business days, notify Buyer of Seller's intention of make title marketable within the 120 day period. Liens or encumbrances for liquidated amounts which can be released by payment or escrow from proceeds of closing shall not delay the closing. Cure of the defects by Seller shall be reasonable, diligent, and prompt. Pending correction of title, all payments required herein and the closing shall be postponed. A. If notice is given and Seller makes title marketable, then upon presentation to Buyer and proposed lender of documentation establishing that title has been made marketable, and if not objected to in the same time and manner as the original title objections, the closing shall take place within ten (10) business days or on the scheduled closing date, whichever is later. B. If notice is given and Seller proceeds in good faith to make title marketable but the 120 day period expires without title being made marketable, Buyer may declare this Agreement null and void by notice to Seller, neither party shall be liable for damages hereunder to the other, and earnest money shall be refunded to Buyer. C. If Seller does not give notice of intention to make title marketable, or if notice is given but the 120 day period expires without title being made marketable due to Seller's failure to proceed in good faith, Buyer may seek, as permitted by law, any one or more of the following: (1) Proceed to closing without waiver or merger in the deed of the objections to title and without waiver of any remedies, and may: (a) Seek damages, costs, and reasonable attorney's fees from Seller as permitted by law (damages under this subparagraph (a) shall be limited to the cost of curing objections to title, and consequential damages are excluded); or, (b) Undertake proceedings to correct the objections to title; (2) Rescission of this Purchase Agreement by notice as provided herein, in which case the Purchase Agreement shall be null and void and all earnest money paid hereunder shall be refunded to Buyer; 19 (3) Damages from Seller including costs and reasonable attorney's fees, as permitted by law; (4) Specific performance within twelve months after such right of action arises. D. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect either of the following options, as permitted by law: (1) Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation. E. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted by law: (1) Seek damages from Seller including costs and reasonable attorneys' fees; (2) Seek specific performance within twelve months after such right of action arises. TIME IS OF THE ESSENCE FOR ALL PROVISIONS OF THIS CONTRACT. 16. NOTICES. All notices required herein shall be in writing and delivered personally or mailed to the address as shown at paragraph 1 above and, if mailed, are effective as of the date of mailing. 17. MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota. 18. WELL AND FUEL TANK DISCLOSURE. Seller certifies that the Seller does not know of any fuel tanks or wells on the described real property. 19. INDIVIDUAL SEWAGE TREATMENT SYSTEM DISCLOSURE. Seller certifies that there is no individual sewage treatment system on or serving the property. N 20. PAYMENT OF CLOSING COSTS. Each party will pay closing costs which are normally allocated of Buyers and Sellers in a real estate transaction. 21. HAZARDOUS WASTE. Seller shall provide Buyer with an environmental indemnification for the Property and will pay all costs, including reasonable attorney's fees, associated with any additional environmental remediation upon the Property for a period of two (2) years following the Date of Closing. 22. CLOSING AGREEMENT. Seller and Buyer shall execute a Closing Agreement at the Closing addressing all issues described at Sections 11, 21 and 22, and any other necessary issues. 23. BINDING EFFECT. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. The Andover Economic Development Authority agrees to sell the property for the price and terms and conditions set forth above. SELLER: ANDOVER ECOMONIC DEVELOPMENT AUTHORITY Julie Trude, President Bv: James Dickinson, Executive Director 10 I agree to purchase the property for the price and terms and conditions set forth above. BUYER: LEON PROPERTIES UNO 0 Sam Leon, Chief Operating Officer a NORTH 2ND ADDITION I -- I i:' —_r a.�.,a,a Se?gYw7 �n::��.. ]..I t I .a•:•,yFIM+'° —�•: I_n 1 I r aI U_� '...: ___ '-- BUNI�RIAI�BWLEVARD(�JNrygf/ �s.iW g x�. 375 7V f MST P9 I'- mn.rc:v�1N n!Y•'1/�4� .ffi��.- Cxaaa.i��x�. F ara•c uo uvn r mrr mu. rwavrze vo..o .uavrt. ar na • n q ti F�• Wa P1a R4•I.m erw �r�rMTMR exFMa __L___ •__L_____. x[Ixmm:�wn�m�n auar, ro mw aawdio� /r xa n n xm Im we uuxrn erne x am �o�r .rc ww.r .0 - > -^•� w[e xo � ¢vn rwenrn n .�ttnao rx e[•v zeaxrwe w Rr u•es mxa.ff max w r:a �- d