leelg CITY COUNCIL AGENDA REPORT Honorable Mayor and City Council Members

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1 City of RE oe", leelg CITY COUNCIL AGENDA REPORT Council Meeting Date: April 10, 2017 To: From: Honorable Mayor and City Council Members Ron Rosenthal, Engineering Director Agenda Item: 8V Spring Creek Road/ TH 61 Intersection Realignment ACTION REQUESTED: 1. Approve purchase agreement to Acquire Property at 115 Spring Creek Avenue North. ATTACHMENTS: Purchase Agreement for 115 Spring Creek Avenue North ( ) in the amount of 170, 500, with attachments for property description, rent back agreement, salvage addendum, and disclosure of information on lead based paint. Location map BACKGROUND: Below are the project events that have taken place to date This project was first recommended in the 1998 Red Wing Transportation Planning Study 2004 MnDOT completed an Access Management Plan for TH 61 from TH 19 to Withers Harbor Drive that was adopted into the City of Red Wing Comprehensive Plan. 1/ 26/2009 The City of Red Wing completed the "TH 61/ Spring Creek Road/ Carol Lane Intersection Alignment Study" with Council approving the final Summary Report. 1/ 13/ 2014 Council authorized staff to apply for federal funding for construction in /4/ 2014 Federal funding of $ 1, 273, 832 was awarded to this project (we applied for $ 1. 7M). 5/ 12/ 2014 Council adopted Res designating South & North Service Drives, and Spring Creek Avenue North as Municipal State Aid Streets. 12/ 8/ 2014 Council authorized staff to begin negotiating a consultant agreement for design & right-of-way acquisition; and apply for additional federal funds for construction. 2/ 23/ 2015 Council accepted the Planning Commission' s findings of facts stating this project is consistent with the Comprehensive Plan. 4/ 9/ 2015 The MnDOT District 6 Area Transportation Partnership ( ATP) approved an additional 500, 000 of federal funding to this project. 4/ 13/ 2015 Council Approved a Professional Services Agreement for right- of-way acquisition and preliminary & final design of the project with Bolton and Menk, Inc. ( BMI). 5/ 11/ 2015 Council adopted Res authorizing Land Acquisition Firm to make offer to acquire 139 Spring Creek Avenue North. IM

2 6/ 8/ 2015 Council approved a purchase agreement to acquire 139 Spring Cr. Ave. North. schedule for the project hearing at a workshop. 1/ 25/ 2016 Council Adopted Ordinance No. 92 pertaining to nonconforming uses & structures. 4/ 25/ 2016 Council adopted Res authorizing ROW negotiations with remaining affected property owners, and approved the project layout. 1/ 23/ 2016 Council discussed assessments & 5/ 9/ 2016 Council Ordered the Preparation of the Engineer' s Report. 6/ 13/ 2016 Council received the Engineer' s Report & ordered the project hearing for 7/ 11/ held a neighborhood meeting prior to the public hearing. 7/ 11/ 2016 Council held the project hearing, determined not to assess the project, and tabled action on Res ordering the improvement until 8/ 8/ / 28/ 2016 Staff 8/ 8/ 2016 Council removed Res from the table & re -tabled it until after MnDOT can meet with affected business owners. 8/ 22/ Council removed Res from the table for discussion & re -tabled it until after staff works out street alignment issues that will work for residents and businesses. 9/ 26/ Staff gave a brief update to Council on the alignment modifications being made to the project layout map, and subsequent discussions with affected property owners. 10/ 10/ 2016 Council removed Res from the table & adopted it, ordering the improvement; & adopted a resolution authorizing staff to make offer for 133 Spr. Cr. Ave. North. 10/ 24/ 2016 Council approved a purchase agreement to acquire 133 Spr. Cr. Ave. No. 1/ 09/ 2017 Council approved purchase agreement for 3446 & 3448 Helen Lane ( duplex). 1/ 23/ 2017 Council Accepted the Planning Commission' s recommendation that the realignments and ROW acquisitions are in compliance with the Comprehensive Plan. 2/ 27/ Council approved purchase agreement for 3434 Helen Lane. 3/ 13/ Council approved purchase agreement for 3446 No. Serv. Drive; & directed staff to draft purchase agreement selling duplex structure at 3446/ 3448 Helen Lane to Tracy Whipple. 3/ 27/ 2017 Council approved purchase agreements for 3454 Helen Lane, 121 Spring Creek Ave North, and 127 Spring Creek Ave North; also a purchase agreement to sell duplex structure at 3446/ 3448 Helen Lane. DISCUSSION: Approve Purchase Agreement for Acquisition of 115 Sprin_ g Creek Avenue North. Attached is the purchase agreement for 115 Spring Creek Avenue North. ( ) signed by the property owner, Leah Lundell. The purchase agreement is in the amount of $ 170, 500 and there will be additional moving expenses to be paid when the owner moves out of the house; as well as a prepayment penalty for down -payment assistance in the amount of $ 10, 000. The County assessed value of the property is $ 109, 900 and the City appraised value of the property is $ 145, 000, however, the Minimum Compensation Value increases it by $ 5, 750, and the Owner' s Comparable sale value increases it to $ 169, 000 & there is reimbursement for filling in an old cistern for $ 1, 500. The exhibits and addendums to the Purchase Agreement are as follows.. Exhibit A Legal Exhibit B description of the residential property being acquired. Rent Back Agreement. This allows Leah to stay in the house rent free and remove salvaged items until August 11, Exhibit C Salvage Addendum allows Leah to salvage 1) all light fixtures; 2) inside doors; 3) exterior front & back doors; 4) upper kitchen cabinets; 5) bathroom vanity; 6) refrigerator, range, washer & dryer. Addendum for disclosure of information on lead- based paint There are no reports or records on lead- based paint for this house. IM

3 FUNDING SOURCE( S): Below are the estimated expenditures & funding sources from the approved 2015 CIP and the Engineer's Report. Estimated Expenditures: 10/ 2016 Right- of-way Acquisition = $ 3, 169, 500 Construction = $ 2, 722, 000 Engineering & Contingencies = $ 952, 500 Estimated Total Project Costs = $ 6, 844,000 Estimated Fundina Sources: GO Street Reconstruction Bonds = $ 1, 000, 000 Capital Improvement Assessment Fund = $ 2, 205, 544 Goodhue County = $ 200, 000 Municipal State Aid ( gas tax allocation) _ $ 865, 168 Federal Highway Funds = $ 1, 873, 288 MnDOT = $ 700,000 Estimated Total Project Funding = $ 6, 844,000 Note: MnDOT' s contribution to the project is $ 700, 000. The actual work on the TH 61 right-of- way is estimated to cost $ 200, 000. The additional $ 500, 000 is to help pay City costs off the trunk highway that benefit the highway by eliminating multiple accesses. Note: Additional consultant work has been needed to update traffic & accident counts to assure the project is still warranted as an outcome of citizen concerns at the open house; Staffs request for ROW platting to make the acquisition process cleaner; Roadway realignment discussions and drawings; and Additional right- of-way acquisition services. A future amendment to the Bolton & Menk professional services contract will address these costs. ALTERNATIVES: 1) Approve Purchase Agreement for acquisition of 115 Spring Creek Avenue North. 2) Modify or counter offer to Purchase Agreement. 3) Disapprove Purchase Agreement (Staff would need direction on how to proceed). RECOMMENDATION: Staff recommends Alternative 1) above. IM

4 3. BUYER ( S): city of Red wing PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORS, which disclaims any liability arising out of use or misuse of this form Minnesota Association of REALTORS, Edina, MN 1. Date 04/ 05/ Page 1 of s 4, a Minnesota muncinle corporation 5. Buyer' s earnest money in the amount of None 6. Dollars ($ ) 7. shall be delivered to listing broker no later than two ( 2) Business Days after Final Acceptance Date of this Purchase 8. Agreement. Buyer and Seller agree that listing broker shall deposit any earnest money In the listing broker's trust 9. account within three ( 3) Business Days of receipt of the earnest money or Final Acceptance Date of this Purchase 10. Agreement, whichever is later. 11. Said earnest money is part payment for the purchase of the property located at 12. Street Address: 115 spring Creek Ave. No 13. City of Red win, 14. State of Minnesota, legally described as 15 See attached " Exhibit A" County of Goodhue Said purchase shall include all improvements, fixtures, and appurtenances on the property, if any, including but not 18. limited to, the following ( collectively the " Property"): garden bulbs, plants, shrubs, trees, and lawn watering system; 19. shed; storm sash, storm doors, screens, and awnings; window shades, blinds; traverse, curtain, and drapery 20. rods, valances, drapes, curtains, window coverings, and treatments; towel rods; attached lighting and bulbs; fan fixtures; 21. plumbing fixtures; garbage disposals; water softener; water treatment system; water heating systems, heating systems; 22. air exchange system; radon mitigation system; sump pump; TV antenna/cable TV jacks and wiring/tv wall mounts; 23. wall/ ceiling-mounted speakers and mounts; carpeting; mirrors; garage dooropeners and all controls; smoke detectors; 24. fireplace screens, door, and heatilators; BUILT-INS: dishwashers; refrigerators; wine/ beverage refrigerators; trash 25. compactors; ovens; cook -top stoves; warming drawers; microwave ovens; hood fans; shelving; work benches; intercoms; 26. speakers; air conditioning equipment; electronic air filter; humidifier/dehumidifier; liquid fuel tanks ( and controls); 27. pool/ spa equipment; propane tank ( and controls); security system equipment; TV satellite dish; AND the following 28, personal property shall be transferred with no additional monetary value, and free and clear of all liens and encumbrances: Notwithstanding the foregoing, leased fixtures are not Included. 32. Notwithstanding the foregoing, the following item(s) are excluded from the purchase: Seller has agreed to sell the Property to Buyer for the sum of ($ 170, _ ) 36. One Hundred Seventy Thousand Five Hundred Dollars; 37. which Buyer agrees to pay in the following manner: CASH of 100 percent (%) of the sale price, or more in Buyer's sole discretion, which includes the earnest 39. money; PLUS FINANCING of 0 percent (%) of the sale price, which will be the total amount secured against this 41. Property to fund this purchase. 42. Such financing shall be: ( Check one.) a first mortgage; a contract for deed; or a first mortgage with 43. subordinate financing, as described in the attached Addendum: 44. Conventional FHA DVA Assumption Contract for Deed. Check one.}..._._.._......_._._.._..,_._ 45. The date of closing shall be. May MN: PA- 1 ( 8/ 16) InstonetFoutAs

5 PURCHASE AGREEMENT 46, Page 2 Date 04/ 05/ Property located at 115 Spring Creek Ave. No Red Wing 48. SALE OF BUYER' S PROPERTY CONTINGENCY: ( Check one.) This Purchase Agreement is subject to an Addendum to Purchase Agreement: Sale of Buyer's Property 50. Contingencyfor the sale of Buyer's property. (If checked, see attached Addendum.) 51. OR This Purchase Agreement is contingent upon the successful closing on the Buyer's property located at 53., which is scheduled to close on 54., 20 pursuant to a fully executed purchase agreement. If Buyer's 55. property does not close, this Purchase Agreement is canceled. Buyer and Seller shall immediately sign a 56. Cancellation of Purchase Agreement confirming said cancellation and directing all earnest money paid 57. here to be refunded to Buyer. The language in this paragraph supersedes any other provision to the contrary 5& in any financing addendum made a part of this Purchase Agreement, if applicable. 59. OR Buyer represents that Buyer has the financial ability to perform on this Purchase Agreement without the sale 61, and closing on any other property. 62. This Purchase Agreement IS IS NOT subject to cancellation of a previously written purchase agreement Check one.) , dated, 20. ( If answer is IS, said cancellation shall be obtained no later than 64., 20. If said cancellation is not obtained by said date, this Purchase Agreement 65, is canceled. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreementconfirming said cancellation 66. and directing all earnest money paid here to be refunded to Buyer.) 67. Buyer has been made aware of the availability of Property inspections. Buyer Elects Declines to have a 68. Property inspection performed at Buyer's expense ( Check one.} INSPECTION CONTINGENCY: This Purchase Agreement IS IS NOT subject to an Addendum to Purchase Check one.) Agreement: Inspection Contingency. (If answer is IS, see attached Addendum.) 71. DEEDIMARKETABLETITLE: Upon performance by Buyer, Seller shall deliver a: (Check one.) 72. warranty Deed, Personal Representative' s Deed, Contract for Deed, Trustee' s Deed, or 73. Other: Deed joined in by spouse, if any, conveying marketable title, subject to 74. ( a) building and zoning laws, ordinances, and state and federal regulations; 75. ( b) restrictions relating to use or improvement of the Property without effective forfeiture provisions; 76. ( c) reservation of any mineral rights by the State of Minnesota; 77. ( d) utility and drainage easements which do not interfere with existing improvements; 78. ( e) rights of tenants as follows (unless specified, not subject totenancies): 79. ; and 80. ( f) others ( must be specified in writing): REAL ESTATE TAXES: Seller shall pay on the date of closing all real estate taxes due and payable in all prior years 83, including all penalties and interest. 84. Buyer shall pay PRORATED FROM DAY OF CLOSING 12ths OF ALL NO real estate taxes due check one.}--- -._ _ _..-..._....._ and payable in the year Seller shall pay PRORATED TO DAY OF CLOSING 12ths OF ALL NO real estate taxes due and Check one.} _-_-._ payable in the year If the closing date is changed, the real estate taxes paid shall, if prorated, be adjuster( 88. to the new closing date. If the Property tax status is a part- or non -homestead classification in the year of closing, Seller 89. SHALL SHALL NOT pay the difference between the homestead and non -homestead. Check one.}_ MN: PA- 2 ( 8/16) Instanetrma is

6 PURCHASE AGREEMENT 90. Page 3 Data 04/ 05/ Property located at 115 spring creek Ave. No Red Wing 92. Buyer shall pay real estate taxes due and payable in the year following closing and thereafter, the payment of which 93. is not otherwise here provided. No representations are made concerning the amount of subsequent real estate taxes. 94. DEFERRED TAXES/ SPECIAL ASSESSMENTS: 95. BUYER SHALL PAY MK SELLER SHALL PAY on date of closing any deferred real estate taxes ( e. g., Green Check one.)._-"'.._ _ Acres) or special assessments, payment of which is required as a result of the closing of this sale. 97. BUYER AND SELLER SHALL PRORATE AS OF THE DATE OF CLOSING SELLER SHALL PAY ON 98. DATE OF CLOSING all installments of special assessments certified for payment, with the real estate taxes due and 99. payable in the year of closing BUYER SHALL ASSUME X SELLER SHALL PAY on date of closing all other special assessments levied as Check one.) -_..._._..._.._._._..._._._._._ of the date of this Purchase Agreement BUYER SHALL ASSUME SELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as Check one.f---._..._ of the date of this Purchase Agreement for improvements that have been ordered by any assessing authorities. (Seller's 104. provision for payment shall be by payment into escrow of two ( 2) times the estimated amount of the assessments 105. or less, as required by Buyer's lender.) 106. Buyer shall pay any unpaid special assessments payable in the year following closing and thereafter, the payment of 107. which is not otherwise here provided As of the date of this Purchase Agreement, Seller represents that Seller HAS HAS NOT received a notice Check one.} regarding any new improvement project from any assessing authorities, the costs of which project may be assessed 110, against the Property. Any such notice received by Seller after the date of this Purchase Agreement and before closing 111. shall be provided to Buyer immediately. If such notice is issued after the date of this Purchase Agreement and on 112. or before the date of closing, then the parties may agree in writing, on or before the date of closing, to pay, provide 111 for the payment of, or assume the special assessments. In the absence of such agreement, either party may declare 114. this Purchase Agreement canceled by written notice to the other party, or licensee representing or assisting the other 115. party, in which case this Purchase Agreement is canceled. If either party declares this Purchase Agreement canceled, 116. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and 117. directing all earnest money paid here to be refunded to Buyer POSSESSION: Seller shall deliver possession of the Property: ( Check one.) 119. IMMEDIATELY AFTER CLOSING; or 120. OTHER: See attached Rent Sack Agreement as " Exhibit S" Seller agrees to remove ALL DEBRIS AND ALL PERSONAL PROPERTY NOT INCLUDED HERE from the Property 122. by possession date LINKED DEVICES: Seller warrants that Seller shall permanently disconnect or discontinue Seller's access or service 124. to any device or system on or serving the property that is connected or controlled wirelessly, via internet protocol (" IP") 125. to a router or gateway or directly to the cloud no later than delivery of possession as specified in this Purchase 126. Agreement PRORATION$: All interest; unit owners' association dues; rents; and charges for city water, city sewer, electricity, and 128. natural gas shall be prorated between the parties as of date of closing. Buyer shall pay Seller for remaining gallons of 129. fuel oil or liquid petroleum gas on the day of closing, at the rate of the last fill by Seller TITLE AND EXAMINATION: As quickly as reasonably possible after Final Acceptance Date of this Purchase Agreement: 131. ( a) Seller shall deliver any abstract of title and a copy of any owner's title insurance policy for the Property, if 132. in Seller's possession or control, to Buyer or Buyer's designated title service provider. Any abstract of title or 133. owner's title insurance policy provided shall be immediately returned to Seller, or licensee representing or 134. assisting Seller, upon cancellation of this Purchase Agreement; and 135. ( b) Buyer shall obtain the title services determined necessary or desirable by Buyer or Buyer's lender, including 136. but not limited to title searches, title examinations, abstracting, a title insurance commitment, or an attorney' s 137. title opinion at Buyer's selection and cost and provide a copy to Seller. WPA-3 ( 8116) InsfonetFOeMS'

7 139. Property located at 115 spring Creek Ave. No PURCHASE AGREEMENT 138. Page Date 04/ 05/ 2017 Red Nin 140. Seller shall use Seller's best efforts to provide marketable title by the date of closing. Seller agrees to pay all costs 141. and fees necessary to convey marketable title including obtaining and recording all required documents, subject to the 142. following: 143. In the event Seller has not provided marketable title by the date of closing, Seller shall have an additional 30 days to 144. make title marketable, or in the alternative, Buyer may waive title defects by written notice to Seller. In addition to 145. the 30 -day extension, Buyer and Seller may, by mutual agreement, further extend the closing date. Lacking such 146. extension, either party may declare this Purchase Agreement canceled by written notice to the other party, or 147, licensee representing or assisting the other party, in which case this Purchase Agreement is canceled. If either 148. party declares this Purchase Agreement canceled, Buyer and Seller shall immediately sign a Cancellation of 149. Purchase Agreement confirming said cancellation and directing all earnest money paid here to be refunded to 150. Buyer SUBDIVISION OF LAND, BOUNDARIES, AND ACCESS: if this sale constitutes or requires a subdivision of land 152. owned by Seller, Seller shall pay all subdivision expenses and obtain all necessary governmental approvals. Seller 153. warrants that the legal description of the real property to be conveyed has been or shall be approved for recording as 154. of the date of closing. Seller warrants that the buildings are or shall be constructed entirely within the boundary lines 155. of the Property. Seller warrants that there is a right of access to the Property from a public right-of-way MECHANIC' S LIENS: Seller warrants that prior to the closing, payment in full will have been made for all labor, materials, 157. machinery, fixtures, or tools furnished within the 120 days immediately preceding the closing in connection with 158. construction, alteration, or repair of any structure on, or improvement to, the Property NOTICES: Seller warrants that Seller has not received any notice from any governmental authority as to condemnation 160. proceedings, or violation of any law, ordinance, or regulation. If the Property is subject to restrictive covenants, Seller 161. warrants that Seller has not received any notice from any person or authority as to a breach of the covenants. Any 162. such notices received by Seller shall be provided to Buyer immediately DIMENSIONS: Buyer acknowledges any dimensions, square footage, or acreage of land or improvements provided 164. by Seller, third party, or broker representing or assisting Seller are approximate. Buyer shall verify the accuracy of 165. information to Buyer's satisfaction, if material, at Buyer's sole cost and expense ACCESS AGREEMENT: Seller agrees to allow reasonable access to the Property for performance of any surveys or 167. inspections agreed to here RISK OF LOSS: If there is any loss or damage to the Property between the Final Acceptance Date and the date of 169. closing for any reason, including fire, vandalism, flood, earthquake, or act of God, the risk of loss shall be on Seller. if 170. the Property is destroyed or substantially damaged before the closing date, this Purchase Agreement is canceled, 171. at Buyer's option, by written notice to Seller or licensee representing or assisting Seller. If Buyer cancels this Purchase 172. Agreement, Buyer and Seller shall immediately sign a Cancellation of Purchase Agreementconfirming said cancellation 173. and directing all earnest money paid here to be refunded to Buyer TIME OF ESSENCE: Time is of the essence in this Purchase Agreement CALCULATION OF DAYS: Any calculation of days begins on the first day ( calendar or Business Days as specified) 176. following the occurrence of the event specified and includes subsequent days (calendar or Business Days as specified) 177. ending at 11: 59 P.M. on the last day BUSINESS DAYS: " Business Days" are days which are not Saturdays, Sundays, or state or federal holidays unless 179. stated elsewhere by the parties in writing RELEASE OF EARNEST MONEY: Buyer and Seller agree that the listing broker shall release earnest money from the 181. listing broker's trust account: 182. ( a) at or upon the successful closing of the Property; 183. ( b) pursuant to written agreement between the parties, which may be reflected in a Cancellation of Purchase 184. Agreement executed by both Buyer and Seller; 185. ( c) upon receipt of an affidavit of a cancellation under MN Statute ; or 166. ( d) upon receipt of a court order. MN: PA-4 ( 8/ 16) InstanetfORM5'

8 PURCHASE AGREEMENT 187. Page 5 Date 04/ 05/ Property located at its Spring Creek Ave. No Red Wing 189. DEFAULT: If Buyer defaults in any of the agreements here, Seller may cancel this Purchase Agreement, and any 190. payments made here, including earnest money, shall be retained by Seller as liquidated damages and Buyer and Seller 191. shall affirm the same by a written cancellation agreement If Buyer defaults in any of the agreements here, Seller may terminate this Purchase Agreement under the provisions 193. of either MN Statute or MN Statute , whichever is applicable. If either Buyer or Seller defaults in any 194. of the agreements here or there exists an unfulfilled condition after the date specified for fulfillment, either party may 195. cancel this Purchase Agreement under MN Statute , Subd. 3. Whenever it is provided here that this Purchase 196. Agreement is canceled, said language shall be deemed a provision authorizing a Declaratory Cancellation under MN 197. Statute , Subd If this Purchase Agreement is not canceled or terminated as provided here, Buyer or Seller may seek actual damages 199, for breach of this Purchase Agreement or specific performance of this Purchase Agreement; and, as to specific 200. performance, such action must be commenced within six (6) months after such right of action arises NOTICE REGARDING PREDATORY OFFENDER INFORMATION: Information regarding the predatory offender 202, registry and persons registered with the predatory offender registry under MN Statute may be obtained 203. by contacting the local law enforcement offices in the community where the Property is located or the Minnesota 204. Department of Corrections at ( 651) , or from the Department of Corrections web site at BUYER HAS THE RIGHT TO A WALK-THROUGH REVIEW OF THE PROPERTY PRIOR TO CLOSING TO 207. ESTABLISH THAT THE PROPERTY IS IN SUBSTANTIALLY THE SAME CONDITION AS OF THE DATE OF 208. THIS PURCHASE AGREEMENT BUYER HAS RECEIVED A: ( Check any that apply.) DISCLOSURE STATEMENT, SELLER'S PROPERTY 210. DISCLOSURE STATEMENTORA DISCLOSURE STATEMENT: SELLER' S DISCLOSUREALTERNATIVES FORM DESCRIPTION OF PROPERTY CONDITION: See Disclosure Statement: Seller's Property Disclosure Statement or 212. Disclosure Statement: Seller's Disclosure Alternatives for description of disclosure responsibilities and limitations, if 213. any BUYER HAS RECEIVED THE INSPECTION REPORTS, IF REQUIRED BY MUNICIPALITY BUYER IS NOT RELYING ON ANY ORAL REPRESENTATIONS REGARDING THE CONDITION OFTHE PROPERTY 216. AND ITS CONTENTS ( Check appropriate boxes.) 218. SELLER WARRANTS THAT THE PROPERTY IS EITHER DIRECTLY OR INDIRECTLY CONNECTED TO: 219. CITY SEWER ] YES NO / CITY WATER YES NO 220, SUBSURFACE SEWAGETREATMENT SYSTEM 221, SELLER DOES DOES NOT KNOW OF A SUBSURFACE SEWAGE TREATMENT SYSTEM ON OR Check one.}_ _ 222. SERVING THE PROPERTY. ( If answer is DOES, and the system does not require a state permit, see Disclosure 223. Statement: Subsurface Sewage Treatment System.) 224. PRIVATE WELL 225. SELLER DOES DOES NOT KNOW OF A WELL ON OR SERVING THE PROPERTY. Check one.} ( If answer is DOES and well is located on the Property, see Disclosure Statement: Well.) 227, THIS PURCHASE AGREEMENT[-] IS IS NOT SUBJECT TO AN ADDENDUM TO PURCHASE AGREEMENT Check one) SUBSURFACE SEWAGE TREATMENT SYSTEM AND WELL INSPECTION CONTINGENCY ( If answer is IS, see attached Addendum.) 230. IF A WELL OR SUBSURFACE SEWAGE TREATMENT SYSTEM EXISTS ON THE PROPERTY, BUYER HAS 231. RECEIVED A DISCLOSURE STATEMENT; WELL AND/OR A DISCLOSURE STATEMENT: SUBSURFACE SEWAGE MN:PA-5 ( 8/ 16) InstanetfoRM$'

9 PURCHASE AGREEMENT 233. Page 6 Date 04/ 05/ Property located at 115 Spring Creek Ave. No Rea wing 235. HOME PROTECTION/ WARRANTY PLAN: Buyer and Seller are advised to investigate the various home protection/ 236. warranty plans available for purchase. Different home protection/ warranty plans have different coverage options, 237. exclusions, limitations, and service fees. Most plans exclude pre- existing conditions. ( Check one.) 238. A Home Protection/ Warranty Plan will be obtained by BUYER SELLER and paid for by Check one.} --.--_ BUYER SELLER to be issued by Check one.) --- _--- _._ a cost 240. not to exceed $ No Home Protection/ Warranty Plan is negotiated as part of this Purchase Agreement. However, Buyer may elect 242. to purchase a Home Protection/ Warranty Plan Daniel H. Wilson Licensee) NOTICE is Seller's Agent Buyer's Agent Dual Agent Facilitator. check one.} , Wilson Development Services, LLC Real Estate Company Name) 246. Licensee) is Seller's Agent Buyer's Agent Dual Agent Facilitator. rcheck one.}_.._..._.._..._ RealReal Estate Company Name) 248. THIS NOTICE DOES NOT SATISFY MINNESOTA STATUTORY AGENCY DISCLOSURE REQUIREMENTS DUAL AGENCY REPRESENTATION 250. PLEASE CHECK ONE OF THE FOLLOWING SELECTIONS: 251. Dual Agency representation DOES NOT apply in this transaction. Do not complete lines Dual Agency representation DOES apply in this transaction. Complete the disclosure in lines Broker represents both the Seller(s) and the Buyer( s) of the Property involved in this transac' n, which creates a 254. dual agency.this means that Broker and its salespersons owe fiduciary duties to both %elle ( and Buyer(s). Because 255. the parties may have conflicting interests, Broker and its salespersons are prohibite f advocating exclusively for 256. either party. Broker cannot act as a dual agent in this transaction without the ortsent of both Seller(s) and Buyer(s) Seller(s) and Buyer(s) acknowledge that 258. ( 1) confidential information communicated to Broker which regards price, terms, or motivation to buy or sell will 259. remain confidential unless Seller(s) or Buyer(s) mstru s' Broker in writing to disclose this information. Other 260. information will be shared; 261. ( 2) Broker and its salespersons will not reps 4t e interest of either party to the detriment of the other; and 262. ( 3) within the limits of dual agency, Broke d its salespersons will work diligently to facilitate the mechanics of 263. the sale With the knowledge and understn Ing of the explanation above, Seller(s) and Buyer(s) authorize and instruct Broker 265. and its salesperson to act a Pial agents in this transaction Seller Buyer 267. Seller Buyer 268. Date Date 269, CLOSING COSTS: Buyer or Seller may be required to pay certain closing costs, which may effectively increase the 270. cash outlay at closing or reduce the proceeds from the sale. MNTA- 6 ( 8/ 16) InstonefrORMS

10 PURCHASE AGREEMENT 271. Page 7 Date 04/ 05/ Property located at 115 Spring Creek Ave. No Red Wing 273. SETTLEMENT STATEMENT: Buyer and Seller authorize the title company, escrow agent, and/ or their representatives 274. to disclose and provide copies of the disbursing agent's settlement statement to the real estate licensees involved in 275. the transaction at the time these documents are provided to Buyer and Seller FOREIGN INVESTMENT IN REAL PROPERTYTAX ACT (" FIRPTA"): Section 1445 of the Internal Revenue Code 277. provides that a transferee ("Buyer") of a United States real property interest must be notified in writing and must withhold 278. tax if the transferor (" Seller") is a foreign person and no exceptions from FIRPTA withholding apply. Buyer and Seller 279. agree to comply with FIRPTA requirements under Section 1445 of the Internal Revenue Code Seller shall represent and warrant, under the penalties of perjury, whether Seller is a " foreign person" ( as the same 281. is defined within FIRPTA), prior to closing. Any representations made by Seller with respect to this issue shall survive 282. the closing and delivery of the deed Buyer and Seller shall complete, execute, and deliver, on or before closing, any Instrument, affidavit, or statement 284. reasonably necessary to comply with the FIRPTA requirements, including delivery of their respective federal taxpayer 285. identification numbers or Social Security numbers Due to the complexity and potential risks of failing to comply with FIRPTA, including the Buyer's responsibility for 287. withholding the applicable tax, Buyer and Seller should seek appropriate legal and tax advice regarding FIRPTA 288. compliance, as the respective licensee' s representing or assisting either party will be unable to assure either 289. party whether the transaction is exempt from FIRPTA withholding requirements ENTIRE AGREEMENT: This Purchase Agreement and any addenda or amendments signed by the parties shall 291. constitute the entire agreement between Buyer and Seller. Any other written or oral communication between Buyer and 292. Seller, including, but not limited to, e- mails, text messages, or other electronic communications are not part of this 293. Purchase Agreement. This Purchase Agreement can be modified or canceled only in writing signed by Seller and 294. Buyer or by operation of law. All monetary sums are deemed to be United States currency for purposes of this Purchase 295. Agreement ELECTRONIC SIGNATURES: The parties agree the electronic signature of any party on any document related to this 297. transaction constitute valid, binding signatures FINAL ACCEPTANCE: To be binding, this Purchase Agreement must be fully executed by both parties and a copy 299. must be delivered SURVIVAL: All warranties specified in this Purchase Agreement shall survive the delivery of the deed or contract 301. fordeed OTHER: Buyer agrees to pay off the Down -payment assistance loan Document # of $ 10, 000, This purchase agreement is subject to the City of Red Wingsa council approval at their regularly scheduled meeting Seller and Buyer are responsible for their own real estate brokerage fees, if any. Buyer agrees to pay all closing costs typically charged to a Seller in this transaction, except 305, title issue charges for clear title. This purchase is sufficient to purchase the comparable at 1336 W. Maple Ave., therefore the 306. Replacement Housing Payment Differential is $ and the Buyer and Seller acknowledges that if the negotiations fail, the Buyer will initiate eminent domain proceedings for the property for 307. the Hwy 61/ Spring Creek Road Project. This purchase agreement does not include any of the relocation benefits allowed to the Seller 308. under 49CFR replacement sites purchase, if any Seller reserves the right to salvage items from property. See attached Salvage list 'Exhibit C ADDENDA AND PAGE NUMBERING: Attached addenda area part of this Purchase Agreement Enter total number of pages of this Purchase Agreement, including addenda, online two (2) of page one (1) NOTE: Disclosures and optional Arbitration Agreement are not part of this Purchase Agreement and should 313. not be part of the page numbering. MN: PA- 7 ( 8116) InstonetrCRMs'

11 PURCHASE AGREEMENT 314. Page 8 Date. 04/ 05/ Property located at lis spring Creek Ave. No Red Win 316. I, the owner of the Property, accept this Purchase I agree to purchase the Property for the price and on 317. Agreement and authorize the listing broker to withdraw the terms and conditions set forth above 318. said Property from the market, unless instructed I have reviewed all pages of this Purchase 319. otherwise in writing. Agreement have reviewed all pages of this Purchase Agreement If checked, this Agreement is subject to attached 322. Addendum to Purchase Agreement: Counteroffer, 323. FIRPTA: Seller represents and warrants, under penalty 324. of perjury, that Seller ISIS NOT a foreign person (i. e., a Check one.) , non- resident alien individual, foreign corporation, foreign 326. partnership, foreign trust, or foreign estate for purposes of 327. inco a taxation. ( See lifts )) This representation 328. and ajranty shall survve' the losing of the transaction 329. nd t e delivery of the 330. X ) Ak m 1 C1 n Sel(erdt Signature) ( Date) i BuyeYs Signature) Date) 331. X Leah M. Lundell Seller's Primed Name) X City of Red Wing. jean 17-0,5e M-Lyok- Buyees Printed Name) 332. X single Marital Status) Marital Status) 333. X Settees Signature) Date) ( Buyers Signature) Date) 334. X Setters Printed Name) katk SeylnourJo lnsonr Cfer X a Minn sots municiple corporation Buyers Printed Name) 335. X Marital Status) F4 Status) 336. FINAL ACCEPTANCE DATE: The Final Acceptance Date 337. is the date on which the fully executed Purchase Agreement is delivered THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER( S) AND SELLER( S) IFYOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL AC KNOWLEDGETHAT I HAVE RECEIVED AND HAVE HAD THE OPPORTUNITY TO REVIEW THE DISCLOSURE 341. STATEMENT. ARBITRATION DISCLOSUREAND RESIDENTIAL REAL PROPERTYARBITRATION AGREEMENT, 342. WHICH IS AN OPTIONAL, VOLUNTARY AGREEMENT AND IS NOT PART OF THIS PURCHASE AGREEMENT SELLER(S) r `I f BUYER( S) _. V/+ Leah M. Lundell City of ReId Wif g 344. SELLER( S) BUYER( S) ( 1 a Minnesota municiple corporation MN: PA- 8 ( 8/ 16) InStanetFOgb1S

12 Exhibit All All that part oflot 8 in Auditor' s Subdivision of the South 3/ 4 of Section 23, all of Section 26 and the East 1/ 4 of Section 27, in Township 113 North, Range 15 West in Goodhue County and State of Minnesota described as follows: From the intersection of the southeasterly line of said Lot 8 with the center line of the concrete pavement of State Trunk Highway No. 61 as is now located and traveled (said center line being approximately the center line of the Old Original Highway No.61, formerly known as Trunk Highway No. 3) run North 22 degrees East along the Southeasterly line of said Lot 8 for 220 feet to an iron pipe for the place of beginning of tract to be conveyed, thence run Northwesterly parallel to the center line of said pavement for 180 feet to an iron, thence North 22 degrees East for 60 feet to an iron, thence run Southeasterly parallel to said pavement for 180 feet to an iron, thence South 22 degrees West 60 feet to the place of beginning. Together with an easement for a right of way on a strip of land 40 feet in width, adjoining and Northwesterly of the above conveyed tract, upon its southwesterly extension to the Northerly line of Trunk Highway No. 61. Torrens Property - Goodhue County, Minnesota

13 April 5, 2017 Exhibit B" to Purchase Agreement Rent Back Agreement Date: April 5, 2017 This Rent Back Agreement is entered into in connection with the Purchase Agreement between Leah M. Lundell, (" Seller"), and the City of Red Wing, MN, a Minnesota municipal corporation, (" Buyer"), March 22, 2017, for the sale and purchase of the property at 115 Spring Creek Avenue North., Red Wing, MN (the "Property"). The Buyer and Seller agree as follows: NATURE AND PURPOSE: This Rent Back Agreement gives Seller the right to remain in and occupy the Property for a limited time after closing on the purchase of the Property. This Rent Back Agreement remains in effect after the closing. DATE OF POSSESSION: Seller agrees to completely vacate and deliver exclusive physical possession of the Property to Buyer on or before August 11, 2017 (" Date of Possession"). SECURITY AND DAMAGE DEPOSIT: On Date of Closing ( which shall be the date in which closing occurs under the Purchase Agreement), Seller will deposit Zero dollars ($ 0.00) with Buyer in certified funds, as a security and damage deposit. The deposit will earn statutory interest at the rate prescribed in Minn. Stat. Section subd. 2. The Buyer will refund the deposit, plus interest, to Seller, or after Seller moves out of the Property and gives possession to Buyer. Buyer may keep amounts necessary to cover unpaid rent or to cover the cost of repairing damage to the Property ( including personal property and appliances) caused by Seller. If the Buyer keeps all or a part of the deposit, Buyer will provide a written statement within 21 days stating the reason for withholding. MONTHLY RENT: Seller will pay Buyer jqgg per month beginning on the Date of Closing and continuing through the above Date of Possession. If Seller remains in the Property after the above Date of Possession, Seller will pay additional monthly charges to Buyer in advance. UTILITIES: Seller will continue all utility services in Seller' s name and will continue to pay all bills for utility service during the period of the Seller's possession, as they become due. INSURANCE: Seller will maintain homeowner's insurance coverage, at their sole cost, for the Property through the date that the Seller vacates the Property with limits of at least $ 1, 000,000 per occurrence and in the aggregate. Seller shall name the Buyer as the beneficiary in the homeowner's insurance policy. Seller shall obtain and maintain their own liability insurance coverage and personal property insurance coverage during Seller's tenancy of the Property. Buyer reserves the right to review and approve any proposed homeowner's insurance policy for perils to real property and liability coverage for Seller prior to closing. Seller shall provide to Buyer on the Date of Closing a homeowner's insurance policy, and a certificate of insurance naming the Buyer as the beneficiary during the tenancy at will. Seller agrees that she shall be responsible and liable for her personal property.

14 Apri15, 2017 MAINTENANCE: Seller will be responsible for all repairs and normal maintenance of the Property and personal property covered by the Purchase Agreement from and after the Date of Closing. Seller will keep the Property in reasonable repair and order. USE OF PROPERTY: Seller will occupy the Property as permitted herein as Seller's personal residence and will not make any changes to the Property other than as authorized in the Purchase Agreement. Seller will not assign nor sublease the Property under this Agreement. HOLD HARMLESS: Buyer 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 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 Buyer and Will hold Buyer exempt and harmless for or on account of such damage, injury or death. Seller shall also indemnify Buyer 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 Rent Back Agreement or Seller's the use and occupation of the Property. The provisions of this Section shall survive the expiration or early termination of the Purchase Agreement and/ or this Rent Back Agreement. DESTRUCTION OF RESIDENCE: In the event that the Residence on the Property is destroyed or otherwise becomes uninhabitable for any reason, this agreement becomes null and void immediately and Buyer has no further responsibility to the Seller. In the event of habitable repair(s) to the Property during the tenancy, Seller may elect to be responsible for such habitable repair(s) at Sellers' cost to continue the tenancy or Seller may elect to terminate the tenancy and vacate the premises immediately. In the event that the Seller elects not to be responsible for such habitable repair(s) to continue the tenancy or that damages to the Property results in it not being habitable, Seller agrees that the tenancy shall terminate immediately and that Seller shall vacate the Property immediately. In any event, Buyer shall not incur any obligation to complete any repairs of any kind to the Property during the tenancy. AS IS": The Buyer makes no warranties or statements with regard to the condition of the Property nor to its suitability for occupancy by the Seller. The Seller rents the Property " as is", with all faults. In the event the Property is not suitable during the tenancy for occupancy by Seller, Seller agrees that the tenancy shall terminate in accordance with preceding section. If Seller vacates the Property in accordance with the preceding section, they acknowledge it is without any rights and/or any claim, including but not limited to, repair, damages, or costs for the early vacation of the Property. QUIET ENJOYMENT: Buyer promises that upon Seller's performance of Seller's obligation herein, Seller will peacefully and quietly have, hold and enjoy the Property according to this Agreement. TERMINATION: If Seller fails to leave the Property and give possession to Buyer on the Date of Possession specified above, Buyer will provide Seller with seven days advance written notice to leave the Property. Notice is considered given on the date mailed to the Seller at the above address. Seller will leave the Property in the same condition as it was at the time of closing. If Seller fails to leave the Property, Buyer is authorized to take any action permitted by law to take possession of the Property. Buyer will be entitled to recover damages from Seller for Buyer's loss of use in the amount of $ per day beginning with the Date of Possession specified above, in addition to all charges and reimbursements stated in this Agreement, and all reasonable costs which result from obtaining possession of the Property and enforcing the terms of the Agreement, including reasonable attorney's fees.

15 April 5, 2017 and Agreed to: Lundell \.. 1 ' ( Date) City of Red Wing ( Sean M. Dowse, / Mayor Date) City of Red Wing ( Date) Kctt Seymour J'ohn 5on, clerk

16 ADDENDUM TO PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORS-, which disclaims any liability arising out of use or misuse of this form Minnesota Association of REALTORSO, Edina, MN 1. Date 7 2. Page 1 of 1 3. Addendum to Purchase Agreement between parties, dated April stn, 20 17, pertaining tothe purchase and sale of the property at Creek Ave. No.. Red Wine MN In the event of a conflict between this Addendum and any other provision of the Purchase Agreement, the language in this Addendum shall govern. Salvage Addendum " Exhibit C" 9. For safety purposes, the Seller agrees to have a licensed contractor 10 cap gas and/ or disconnect electric lines if items are removed from them. The Seller will secure the said property from unauthorized entry 11. if door and window areas are salvaged. 12. Seller hereby agrees and understands that all of the items to be 11 salvaged, must be removed by the date of Buyer' s possession date. if 14. items remain on the property after the Buyer' s possession date, they may become the property of the Buyer to be disposed of as Buyer sees fit. 17 Seller reserves the right to salvage the following from said property at Sellers expense: All_ Li,gAh_t Fixtures i l,,,, r t Lba,(-- G..,/ J C/ C _ 24. Personal property of refrigerator, range, washer and dryer to be 25. removed by Seller by date of possession ij Buyer) City of Red Wing ( Date) Sean M. Lbwse, Mayer Seller) Date) ( THIS IS A LEGALLY BINDING CONTRACT BETWEEt Buyer) a MN municiple co porationl ( our Teiiin5Dn Cjerh KattMIN yy BI e,,., YERS AND SELLEfIS. IFYOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. Dale) MN -APA (8/ 11) InstanetroRms

17 ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON LEAD- BASED PAINT AND LEAD-BASED PAINT HAZARDS This form approved by the Minnesota Association of REALTORS, which disclaims any liability arising out of use or misuse of this form. m 2009 Minnesota Association of REALTORS, Edina, MN 1. Date 2. Page 04/ 05/ of 2 3. Addendum to Purchase Agreement between parties, dated 04/ 05/ pertaining to the purchase and sale of the property at 115 Spring Creak Ave. No. Red Wing MR Section I: Lead Warning Statement 7. Every buyer of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified 8. that such property may present exposure to lead from lead-based paint that may place young children at risk of 9. developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including 10. learning disabilities, reduced intelligence quotient, behavioral problems and impaired memory. Lead poisoning also 11. poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide 12. the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller's 13. possession and notify the buyer of any known lead-based paint hazards. A risk assessment orinspectlon for possible 14. lead-based paint hazards is recommended prior to purchase. 15. Seller's Disclosure (Initial) 16. ( a) Presence of lead-based paint and/or lead- based paint hazards. 17. ( Check one below.) Known lead- based paint and/ or lead-based paint hazards are present in the housing explain): Seller has no knowledge of lead- based paint and/ or lead-based paint hazards in the housing. b) Records and reports available to the seller. Check one below.) Seller has provided Buyer with all available records and reports pertaining to lead- based paint and/ or lead- based paint hazards in the housing ( list documents below): Seller has no reports or records pertaining to lead- based paint and/ or lead- based paint hazards in the housing. 29. Buyer's Acknowledgment (initial) 30. c) Buyer has received copies of all information listed under ( b) above. 31. d) Buyer has received the pamphlet, Protect Your Family from Lead in Your Home. 32. e) Buyer has (check one below): 33. Received a 10 -day opportunity ( or mutually agreed- upon period) to conduct a risk assessment 34. or inspection for the presence of lead-based paint and/or lead- based paint hazards ( ifchecked, 35. see Section II on page 2); or 36. Waived the opportunity to conduct a risk assessment or inspection for the presence of lead based paint and/or lead- based paint hazards. TLX: SALE- 1 ( e/ 09) InstanefFmms

18 ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON LEAD- BASED PAINT AND LEAD- BASED PAINT HAZARDS 38. Page 2 of Property located at 115 Spring Creak Ave. No. Red Wing W Real Estate Licensee's Acknowledgement (initial) 41. ( f) Real estate licensee has informed Seller of Seller's obligations under 42 U.S. C. 4852( d) and is aware 42. of licensee's responsibility to ensure compliance. 43. Car} iftoation of Accuracy ( The Following parties have re le)wed-thee information above and certify, to the best of their knowledge, that the information pro' ded by the signatofy Is r and accurate t " ' ` I V q ` r.---- C_I_E " ' AV I k ( s Lah M. L'unc}e1,1 ( Date) ( Buyer) City of Red Wing ( Date) 5ean M. rlsw3e) l'le yor Seller) ( Dale) ( Buyer) a bar munioiple Corporation ( Date) Kaki Sey)nour oinsovly ClerK Real Estate Licensee) ( Date) ( Real Estate Licensee) ( Date) 49. Section It: Contingency (Initial only if first box under (e) is checked in Buyer's Acknowledgment above.) 50. This contract is contingent upon a risk assessment or an inspection of the property for the presence of lead based paint and/or lead- based paint hazards to be conducted at Buyer's expense. The assessment or inspection 52. shall be completed within ten (10) calendar days after Final Acceptance of the Purchase Agreement. Check one.) This contingency shall be deemed removed, and the Purchase Agreement shall be in full force and effect, unless Buyer or 54. real estate licensee representing or assisting Buyer delivers to Seller or real estate licensee representing or assisting 55. Seller, within three (3) calendar days afterthe assessment or inspection is timely completed, a written list of the specific 56. deficiencies and the corrections required, together with a copy of any risk assessment or inspection report. If Seller 57. and Buyer have not agreed in writing within three (3) calendar days after delivery of the written list of required corrections 58. that: (A) some or all of the required corrections will be made; or (B) Buyer waives the deficiencies; or ( C) an adjustment to the purchase price will be made; this Purchase Agreement is canceled. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and directing all earnest money paid hereunder to 61. be refunded to Buyer. It is understood that Buyer may unilaterally waive deficiencies or defects, or remove this contingency, 62. providing that Buyer or real estate licensee representing or assisting Buyer notifies Seller or real estate licensee 63. representing or assisting Seller of the waiver or removal, in writing, within the time specified. TLX: SALE-2 (8/ 09) Instanetrox:l,+s

19 6- aadeft) ArcGIS WebMap Fj. ar its 1pnNio Crreg Ave. No. F; t, t y.. 61 r B April 5, : 2, Roads Township or Other Roads Major Roads 4, 800 USHighway x au State Highway County Roads 4, 800 County Roads - Gravel County Roads - Paved. Roads 4, 800 Township or Other Roads Roads4, mi ESRI Major Roads House Number km Parcels Township or Other Roads MCGIB WebApp Builtl r