Agenda - Council Work Session - 05/23/2006

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DRAFT Date: May 16, 2006 Page 1 of 3 PURCHASE AGREEMENT This Agreement is made as of this day of May, 2006, by and between the City of Ramsey, a municipal corporation under the laws of the State of Minnesota ("Buyer"), and Lawrence J. Boike and Michelle A. Garcia-Boike, husband and wife, ("Seller"). In consideration of the mutual covenants contained herein, Seller and Buyer agree as follows: I. SALE OF PROPERTY. Seller shall sell to Buyer and Buyer shall buy from Seller the following properly: The real property located at XXX Highway 10, Ramsey, Minnesota, consisting of approximately 41.61 acres. The property to be sold is identified by Anoka County for tax purposes as PIN Nos. 29-32-25-21-0002 and 29-32-25-24-0001. The legal description of the properly to be sold is contained in Exhibit A, which is attached hereto and incorporated herein by reference. 2. PURCHASEPRICE. The total purchase price of the property shall be Four Million, Four-Hundred and Eight-One Thousand Dollars (4,481,000.00), which Buyer agrees to pay in the following manner: One million dollars ($1,000,000.00) cash on the date of closing and the balance of Three Million Four-Hundred and Eighty-One Thousand Dollars ($3,481,000.00) by financing as shown on the attached Addendum. DEED/MARKETABLE TITLE: Subject to performance by Buyer, Seller agrees to execute and deliver a general Warrant Deed conveying marketable title to the properly subject only to the following exceptions: (a) building and zoning laws, ordinances, State and Federal regulations; (b) restrictions relating to use or improvement of the premises without effective for forfeiture provisions; (c) reservation of any minerals or mineral rights to the State of Minnesota; (d) utility and drainage easements which do not interfere with present improvements; (e) rights of tenants as follows: REAL ESTATE TAXES: Real estate taxes due and payable in the year of closing shall be prorated between Seller and Buyer on a calendar year basis to the actual date of closing unless otherwise provided in this Purchase Agreement. Real estate taxes payable in the years prior to closing shall be paid by Seller. Real estate taxes payable in the years subsequent to closing shall be paid by Buyer. 5. SPECIAL ASSESSMENTS: SELLER SHALL PAY on the date of closing: all installments of special assessments, certified for payment with the real estate taxes due and payable in the year of closing. SELLER SHALL PAY ON DATE OF CLOSING all other special assessments levied as of the: date of this Agreement. SELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as of the date of this Agreement for improvements that have been ordered by the City Council or any other governmental or private assessing authorities. (Seller's provision for payment shall be by payment into escrow of 1 1/2 times the estimated amount of the assessments.) If a special assessment becomes pending after the date of this Purchase Agreement and before the date of closing, Buyer may, at Buyer's option: (a) assume payment of the pending special assessment without adjustment to the purchase price; or (b) require Seller to pay the pending special assessment (or escrow for payment of same a sum equal to 1 1/2 times the project pending assessment) and Buyer shall pay a commensurate increase