HomeMy WebLinkAboutHRA Resolution No. 2013-010 2nd Amend to Purchase Agree 3930 West 49-1/2 Street RESOLUTION NO. 2013-10
AUTHORIZING SECOND AMENDMENT TO REAL ESTATE PURCHASE AGREEMENT
FOR PROPERTY AT 3930 WEST 49-1/2 STREET
WHEREAS, on February 5, 2013, the Edina Housing and Redevelopment Authority (HRA)
approved a purchase agreement to acquire real property located at 3930 West 49-1/2 Street
("Property"), which was then executed on February 11, 2013; and
WHEREAS, on April 5, 2013, the Edina HRA approved the First Amendment to Real Estate
Purchase Agreement to provide additional time to evaluate soil and ground water conditions; and
WHEREAS, during the HRA's due diligence, it was determined that soil contamination exists to
a degree that is not unusual for former dry-cleaning sites; and
WHEREAS, the Minnesota Pollution Control Agency (MPCA) has provided the HRA with a "no
association" letter that protects the HRA from liability related to the existing soil contamination; and
WHEREAS, the HRA's environmental consultants have estimated the cost to remediate the site
• to likely be in the range of$39,000 to $195,000; and
WHEREAS, it is advantageous to both the Seller and the HRA to close the transaction prior to
the June 30, 2013 deadline identified in the original Purchase Agreement; and
WHEREAS, the Seller has agreed to pay for all environmental remediation work necessary after
the closing to remediate soil contamination conditions on the Property, not to exceed the amount paid
into escrow for such purposes by Seller; and
WHEREAS, the Seller agrees to escrow an amount equaling 150% of the maximum remediation
cost estimated ($292,500) by the HRA's environmental consultants to be held in escrow to fund the soil
contamination remediation work on the Property; and
WHEREAS, the Purchaser agrees that any funds held in escrow not expended to remediate any
soil contamination issue on the Property shall be returned to Seller within thirty (30) days of receipt of a
"No Further Action" letter from the MPCA.
•
CITY OF EDINA
4801 West 50th Street•Edina,Minnesota 55424
www.EdinaMN.gov•952-927-8861 • Fax 952-826-0390
10 e o'I
NOW, THEREFORE, BE IT RESOLVED, the Edina Housing and Redevelopment Authority approves the
Second Amendment to the Real Estate Purchase Agreement for the property located at 3930 West 49-
1/2 Street and authorizes the Chair and Executive Director to execute the documents necessary to
purchase the Property.
Dated:June 18, 2013.
AL
Attest:Jin- -
Ann Swenson, Secretary Ja es E Hovland, Chair
STATE OF MINNESOTA)
COUNTY OF HENNEPIN) SS
CITY OF EDINA )
CERTIFICATE OF EXECUTIVE DIRECTOR
I,the undersigned duly appointed and acting Executive Director for the Edina Housing and Redevelopment Authority do hereby
certify that the attached and foregoing Resolution is a true and correct copy of the Resolution duly adopted by the Edina
Housing and Redevelopment Authority at its Regular Meeting of June 18, 2013, and as recorded in the Minutes of said Regular
Meeting.
WITNESS my hand and seal of said City this day of
-- Scott N Executive Director
CITY OF EDINA
4801 West 50th Street•Edina,Minnesota 55424
www.EdinaMN.gov•952-927-8861 . Fax 952-826-0390