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84-051 - 05-15 - Sale of Real Estate to Breck kSchoolResolution 84-51 May 15, 1984 Member Johnson introduced the following resolution and moved its adoption: RESOLUTION FOR SALE OF REAL ESTATE TO BRECK SCHOOL WHEREAS, the City Council has heretofore approved the sale of the premises described in the attached Contract for Deed to the Breck School and it appearing in the interest of the public that said premises be sold pursuant to a Contract for Deed and that certain easements be retained by the City and acquired from Breck School; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Golden Valley that the Mayor and City Manager are hereby authorized to execute any and all documents necessary to complete the sale of the premises to the Breck School, including but not limited to, the Contract for Deed, Declaration of Easements or any amendments thereto. Mary E. derson, Mayor ATTEST: r 4a y, Deputy ty ler The notion for the adoption of the foregoing resolution was seconded by Member Stockman and upon a vote being taken thereon, the following voted in favor thereof: Anderson, Bakken, Johnson, Stockman and Thompson, and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted, signed by the Mayor and her signature attested by the Deputy City Clerk. DOC 110- 'f 1 is a F; (e & Cb :TRACT FOR DEED Form No. 56-M M-- VIf— Cm.... ' a . k. n.- C. Tho delinq uent taxes and transfer entered; Certificate of Real Estate Value ( )filed ( knot required , 19— Count) County Auditor By Depute IrtSe'ved to mortgage regisry lax payment oaia, (reserved for recording data' MORTGAGE REGISTRY TAX DUE HEREON: 8 None Date: �� 17 19� THIS CONTRACT FOR DEED is made on the above date by The City of Golden Val ley, a Minnesota Municipal Corporation . under the laws of Minnesota Seller.and Breck School, a Minnesota Non-profit Corporation , Purchaser (whether one or more). Seller and Purchaser agree to the following terms: 1. PROPERTY DESCRIPTION. Seller hereby sells, and Purchaser hereby buys, real property in Hennepin. County, Minnesota, described as follows: That par: of the 50lu-.h1est Quarter of Section 19, Township 29, Range 24, described as follows: CorrLncin€ a: a point or, the Wrest line of said quarter section, which point is looted ICe9.95 fee: South of the Northwest corner of said quarter section and forms the SmLhrest corner of the North 70 acres of said quarter section, thence fast along the South line of said 70 acre tract 1522.21 feet, thence South parallel vith the West line of said quarter section 650 feet, thence West at rig.^: angles to said parallel line 360 feet which is the point of beginning of the tract to be de- scribed, thence nortivesteTly along a line drar+n at right angles to the center line of the railroa� righ, of way of Minneapolis, Northfield and Southern Whey to the intersection of the 5outheas:erly nigh: of •my line thereof, thence South+esterly along said Southeasterly right of wy line to its intersection with the sisterly line of the right of way of State Trunk Nigh ay No. 100, thence Sm- -h -easterly along said Easterly line of the high -my as originally laid out 622.11 feet, thence North- easterly ortheasterly 395 fee: nwre or less to point of begimSrtg, excepting therefram that portion of the prer- ises taken for highay purposes, and subject to roads and high-mys as nom existing over and across said pTwr-,ses. together with all hereditaments and appurtenances belonging thereto (the Property). 2. TITLE. Seller warrants that title to the Property is, on the date of this contract, subject only to the following exceptions (a) Covenants, conditions, restrictions, declarations and easements of record, if any, (b) Reservations of minerals or mineral rights by the State of Minnesota, if any; (c) Building. zoning and subdivision laws and regulations: (d) The lien of real estate taxes and installments of special assessments which are payable bY Purchaser pursuant to paragraph 6 of this contract; and (e) The following liens or encumbrances: 3. DELIVERY OF DEED AND EV1DENCE OFTITLE, Upon Purchaser's prompt and full performance of this contract, Seller shall: (a) Execute, acknowledge and deliver to Purchaser a Limited Warranty Deed, in recordable form, conveying marketable title to the Property to Purchaser, subject only to the following exceptions: (i) Those exceptions referred to in paragraph 2(a), (b), (c) and (d) of this contract; (ii) liens, encumbrances, adverse claims or other matters which Purchaser has created, suffered or permitted to accrue after the date of this contract; and (iii) The following liens or encumbrances: (1) Seller shall have certain use of the Little League, football and soccer fields owned by Purchaser as hereinafter more fully set forth. (2) Decla- ration of Easements dated ,,-'U 1_, 1984 between Seller and Purchaser and (b) Deliver to Purchasers the abstract of title to the Property or, if the title is registered, the owner's duplicate certificate of title. 4. PURCHASE PRICE Purchasers shall pay to Seller, at 7800 Golden Valley Rvad, Got den Valley, Minnesota 555-27 , the sum of One Hundred Eighty-five Thousand and no/100------------- (S 118`,,,000.00 ) as and for the purchase price for the Property, payable as follows: See attached Addendum for terms and conditions of payment 5. PREPAYMENT. Unless otherwise pro-6ded in this contract, Purchaser shall have the right to full% or partially prepay this contract at any time without penalty. Any partial prepayment shall be applied first to payment of amounts then due under this contract, including unpaid accrued interest, and the balance shall be applied to the principal installments to be paid in the inverse order of their maturity. Partial prepayment shall not postpone the due date of the installments to be paid pursuant to this contract or change the amount of such installments. 6. REAL ESTATE TAXES AND ASSESSMENTS. Purchaser shall pay, before penalty accrues, all real estate taxes and installments of special assessments assessed against the Property which are due and payable in the year 192—' and in all subsequent years Real estate taxes and installment- of special assessments which are due and payable in the year in which this contract is dated shall be paid as follows: Seller warrants that the real estate taxes and installments of special assessments which were due and payable in the years preceding the year in which this contract is dated are paid in full. PROPERTY INSURANCE. (a) INSURED RISKS AND AMOUNT. Purchaser shall keep all buildings, improvements and fixtures now or later located on or a part of the Property insured against loss by fire, extended coverage perils, vandalism, malicious mischief and, if applicable, steam boiler explosion for at least the amount of If any of the buildings, improvements or fixtures are located in a federally designated flood prone area, and if flood insurance is available for that area, Purchaser shall procure and maintain flood insurance in amounts reasonably satisfactory to Seller. (b) OTHER TERMS. The insurance policy shall contain a loss payable clause in favor of Seller which provides that Seller's right to recover under the insurance shall not be impaired by any acts or omissions of Purchaser or Seller, and that Seller shall otber%iw be afforded all rights and privileges customarily provided a mortgagee under the so-called standard mortgage clause. (c) NOTICE OF DAMAGE. In the event of damage to the Property by fire or other casualty, Purchaser shall promptly give notice of such damage to Seller and the insurance company. S. DAMAGE TO THE PROPERTY. (a) APPLICATION OF INSURANCE PROCEEDS. If the Property is damaged by fire or other casualty, the insurance proceeds paid on account of such damage shall be applied to payment of the amounts payable by Purchaser under this contract, even if such amounts are not then due to be paid, unless Purchaser makes a permitted election described in the next paragraph. Such amounts shall be first applied to unpaid accrued interestand next to the installments to be paid as provided in this contract in the inverse order of their maturity. Such payment shall not postpone the due date of the installments to be paid pursuant to this contract or change the amount of such installments. The balance of insurance proceeds, if any, shall be the property ofaPurchaser. (b) PURCHASER'S ELECTION TO REBUILD. If Purchaser is not in default under this contract, or after curing any such default, and if the mortgagees in any prior mortgages and sellers in any prior contracts for deed do not require otherwise, Purchaser may elect to have that portion of such insurance proceeds necessary to repair, replace or restore the damaged Property (the repair work) deposited in escrow with a bank or title insurance company qualified todobusiness in the State of Minnesota, or such other party as may be mutually agreeable to Seller and Purchaser. The election may only be made by written notice to Seller within sixty days after the damage occurs. Also, the election will only be permitted if the plans and specifications and contracts for the repair work are approved by Seller, which approval Seller shall not unreasonably withhold or delay. If such a permitted election is made by Purchaser, Seller and Purchaser shall jointly deposit, when paid, such insurance proceeds into such escrow. If such insurance proceeds are insufficient for the repair work, Purchaser shall, before the commencement of the repair work, deposit into such escrow sufficient additional money to insure the full payment for the repair work. Even if the insurance proceeds are unavailable or are insuffficient to pay the cost of the repair work, Purchaser shall at all times be responsible to pay the full cost of the repair work. All escrowed funds shall be disbursed by the escrowee in accordance with generally accepted sound construction disbursement procedures. The coats incurred or to be incurred on account of such escrow shall be deposited by Purchaser into such escrow before the commencement of the repair work Purchaser shall complete the repair work as soon as reasonably possible and in a good and workmanlike manner, and in any event the repair work shall be completed by Purchaser within one year after the damage occurs. If, following the completion of and payment for the repair work, there remain any undisbursed escrow funds, such funds shall be applied to payment of the amounts payable by Purchaser under this contract in accordance with paragraph B (a) above. 3. INJURY OR DAMAGE OCCURRING ON THE PROPERTY. (a) LIABILITY. occurring on or after the date of this contract to any person or persons t e on or about the Property. Purchaser shall defend and inde rom all liability, loss, costs and obligations, including reasonaees,onaccountoforarisingoutofanysuchinjuries. HoKever. ave no liability or obligation to Seller for such injuries which are . See No. 20. (b) LIABILITY INSURANCE. Purchaser shall, at Purchaser's own expense, procure and maintain liability insurance against claims for bodily injury, death and property damage occuring on or about the Property in amounts reasonably satisfactory to Seller and naming Seller as an additional insured 10. INSI'RANCE, GENERALLY. The insurance which Purchaser is required to procure and maintain pursuant to paragraphs', and 9 of this contract shall be issued by an insurance company or companies licensed to do business in the State of Minnesota and acceptable to Seller. The insurance shall be maintained by Purchaser at all times while any amount remains unpaid under this contract. The insurance policies shall provide for not less than ten days written notice to Seller before cancellation, non-renewal, termination or change in coverage, and Purchaser shall deliver to Seller a duplicate original or certificate of such insurance policy or policies. 11. CONDEMNATION. If all or any part of the Property is taken in condemnation proceedings instituted under power of eminent domain oris conveyed in lieu thereof under threat of condemnation, the money paid pursuant to such condemnation or conveyance in lieu thereof shall be applied to payment of the amounts payable by Purchaser under this contract, even if such amounts are not then due to he paid Such amounts shall be applied first to unpaid accrued interest and next to the installment_- to be paid as pro%lded in this contract in the inverse order of their maturity Such payment shall not postpone the due date of the installments to be paid pursuant to this contract or change the amount of such installments. The balance, if any, shall be the property of Purchaser. 12. WASTE, REPAIR AND LIENS. Purchaser shall not remove or demolish any buildings, im- provements or fixtures now or later located on or a part of the Property, nor shall Purchaser commit or allow waste of the Property Purchaser shall maintain the Property in good condition and repair. Purchaser shall not create or permit to accrue liens or adverse claims against the Property which constitute a lien or claim against Seller's interest in the Property. Purchaser shall pay to Seller all amounts, costs and expenses, including reasonable attorneys' fees, incurred by Seller to remove any such liens or adverse claims 13 DEED AND MORTGAGE REGISTRY TAXES. Seller shall, upon Purchaser's full performance of this contract, pay the deed tax due upon the recording or filing of the deed to be delivered by Seller to Purchaser. The mortgage registry tax due upon the recording or filing of this contract shall be paid b} the party who records or files this contract, however, this provision shall not impair the right of Seller to collect from Purchaser the amount of such tax actually paid by Seller as provided in the applicable law governing default and service of notice of termination of this contract. 14 NOTICE OF ASSIGNMENT. If either Seller or Purchaser assigns their interest in the Property, acopy of such assignment shall promptly be furnished to the non-assigning party. 15. PROTECTION OF 1N'TERESTS. If Purchaser fails to pay any sum of money required under the terms of this contract or fails to perform any of Purchaser's obligations as set forth in this contract, Seller may. at Seller's option, pay the same or cause the same to be performed, or both, and the amounts so paid by Seller and the cost of such performance shall be payable at once, with interest at the rate stated in paragraph 4 of this contract, as an additional amount due Seller under this contract. If there now exists, or if Seller hereafter creates, suffers or permits to accrue, any mortg age, contract for deed, lien or encumbrance against the Property which is not herein expressly assumed by Purchaser, and provided Purchaser is not in default under this contract, Seller shall timely pay all amounts due thereon, and if Seller fails to do so, Purchaser may, at Purchaser's option, pay any such delinquent amounts and deduct the amounts paid from the installment(s) next coming due under this contract. 16. DEFAULT. The time of performance by Purchaser of the terms of this contract is an essential part of this contract. Should Purchaser fail to timely perform any of the terms of this contract, Seller may, at Seller's option, elect to declare this contract cancelled and terminated by notice to Purchaser in accordance with applicable law. All right, title and interest acquired under this contract by Purchaser shall then cease and terminate, and all improvements made upon the Property and all payments made by Purchaser pursuant to this contract shall belong to Seller as liquidated damages for breach of this contract. Neither the extension of the time for payment of any sum of money to be paid hereunder nor any waiver by Seller of Seller's rights to declare this contract forfeited by reason of any breach shall in ani• manner affect Seller's right to cancel this contract because of defaults subsequently occurring, and no extension of time shall be valid unless agreed to in writing. After service of notice of default and failure to cure such default within the period allowed by law, Purchaser shall, upon demand, surrender possession of the Property to Seller, but Purchaser shall be entitled to possession of the Property until the expiration of such period. 17, BINDING EFFECT. The terms of this contract shall run with the land and bind theparties hereto and their successors in interest. I �. HF AD] NGS Headings of the paragraphs of this contract are for convenience onk and do not define, limit or construe the contents of such paragraphs. 19. ASSESSMENTS BY OWNERS' ASSOCIATION. If the Property is subject to n recorded declaration Providing for assessments to be levied against the Pruperty by any owners association, which assessments may become a lien against the Property if not paid, then: (a) Purchaser shall prompt),. pay, when due, all assessments imposed by the owner� RFsociation or other governing body as required by the provisions of the declaration or other related documents: and nru (b) extendedsc verageeperils and tsuch theion ihaza ds and in such ns a master or eamounts an ; the fire required ed by this contract, then. (i) Purchaser'F obligation in this contract to maintain hazard insurnncr, ceveragr on the Properiv is satisfied. and (ii) The provisions in paragraph K of this crrYr (•t rer;ardin;; npph(atil•n of i:, -.:rant(proceeds &hall be superreded by the provisiune of the declarwwll or other relattci docurnent,. nm.' (iii) In the event of a distribution ofinburance proceeds in lieu .)fr;>toration ( r ;. piir insured casualty losF to the Property, an\ such prnceedF payable t l Pyrchaser art heretic aFFigned and shall be paid to Seller for app'i(atinn to the sum s,t•tu'�'r: Ly this contract. %nth the excess, if any, paid to Purrhaser. 20. ADDITIONAL TERMS: Seller and Purchaser shall hold each other harmless, and defend and indernify each other from all liability, costs or loss, including reasonable attorney's fees, on sccamt of or. arising out of any injuries to persons or property sten the other, its irlvitees, agents or guests, are using said athletic fields. Seller shall, at its own expense, procure and maintain liability insurance against claims for bodily injury, death or property dmiage occnring on or about the property in x—Ints reasonably satisfactory to Purchaser and darning Purchaser as an additional insured. 'Oris coverage shall be in effect only when Seller or Purchaser, its invitees, agents, enployees or guests are using the SELLER said athletic fields. PURCHASF:R/S) STATE OF MINNESOTA) BRECK,SCHOOL Q Its sem- I tt s COUNTY OF HENNEPIN) SS. The foregoing instrument was acknowledged before me this s da Of July, 1984, by I �� �_M Of Breck School, a non ---o con ration under t e laws on behalf of the corporation. -- ------------ __ __ ----- ----------------- DEBRA K. PAGE ® t�TA1P'MAP-IC • ES.' HENNEPIPtN COUNTY Vr CMMnftolw• Fp," foo S t State of Mlnnebu— County of Hennepin The foegoin by � u Notary Public I was acknowledged before me thiF Zed N(frA RI Al .TAMI`(IRA/.AI K,R( rrH rM TITI S. OR RAN A �S• zSZs IB�EIN COVt(TM D assnion Esprrs Aug 17 loon THIS INATRe►1E\T WAA IIRAnTBD R1 MAW. AND AIWWV,- BEST 6 FLANAr-hS UNP ) 4040 IDS Center Minneapolis, MN 55402 of City of Golden ValIev. B Minnesota Muni al Corporation on behalf of the corporation. FI G\ATI'RI (1/ N-TAH1p'LA' Ts. temenn ro• o+r (sal vopert, aeso(eee m mss ns�um+rr: s'aJl; Dr sc�l . c Breck School 123 Ottawa Avenue North Minneapolis, MN 55422 IVE OTHER IDARTIFS FAILURE TO RECORD OR FILE THIS CONTRACT FOR DEED MAl G PRIORITY OVER PURCHASER'S INTEREST IN THE PROPERTY. ADDENDUM TO CONTRACT FOR DEED City of Golden Valley/Breck School Payment Terms $ 18,500.00 Cash, receipt of which is hereby acknowledged; and $166,500.00 with interest thereon at 10:. per annum, payable in ten (10) annual installments of $26,403.84 commencing on the 1st day of September, 1985 and on the is day of each and every September thereafter until August 31, 195 at which time the full principal balance together with all accrued interest shall be paid. Payments shall be credited first to interest and the remainder to principal. NOTWITHSTANDING the foregoing provisions of this paragraph 4, Seller shall waive annual interest, and Purchaser's sole obligation shall be to pay annually on the above dates 10% of the principsl balance, or $16,650, in return for Purchaser's granting Seller a first priority use of the Little League field Mondays through Fridays from 5:00 p.m., to 9:00 p.m., during the period of May 14 through August 14; and further Purchaser grants Seller the use of its football and soccer fields, to be constructed on the Property, on Saturdays from 9:00 a.m. to 6:00 p.m., from September 7 through November 7, which use shall be scheduled by the parties. Seller may use the soccer and football fields at other times with the prior con- sent of Purchaser. The times referred to herein may be changed by mutual agreement of the parties, and shall be subject to adjust- ment by Purchaser in the event of a conflict with a special school event. The use herein granted by Purchaser to Seller shall be for a period of twenty (20) years from the date hereof; provided, how- ever, Purchaser shall have the option of terminating said use prior to the end of the term by written notice to Seller given in Januar of amyear during the term., with such notice to be effective one year from the date thereof. In the event Purchaser exercisesthis right of early termination, Purchaser shall pay Seller $4,8717 on each anniversary date of this contract following the effective date of termination until September 1, 2004. In any event, Seller shall deliver Purchaser the deed described in paragraph 3(a) hereof when the $166,500 principal balance has been paid. Each party shall be responsible for its own maintenance of the fields for game prep- aration and use and for its own insurance coverage. The Use Agree- ment, set forth herein shall survive any conveyance by Seller to Purchaser, and shall continue until the same expires or is termi- nated as herein provided. Proof of early termination of the Use Agreement may be established by recording an affidavit of the Purchaser showing the mailing of notice to Seller, and Seller agrees to execute such document as Purchaser may reasonably request to establish such early termination. SIT -LER PURCHASER CITY OF GOLDEN VALVEY BRI ICK S OOL i By B /Fit I t s I t s By ' By Its Its �L` �V 4