HomeMy WebLinkAbout5F Certificate of Completion
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: February 8, 2016
AGENDA #: 5F
PREPARED BY: SARAH SCHWARZHOFF, CITY ATTORNEY
PRESENTED BY: SARAH SCHWARZHOFF, CITY ATTORNEY
AGENDA ITEM: CONSIDER APPROVAL OF CERTIFICATE OF COMPLETION
DISCUSSION: Introduction
The City has been contacted by the purchaser of 16980 Welcome Ave SE
Unit 1 relating to a Development Agreement and Acquired Property Deed
from 1994. The purchaser is requesting that the City approve, and
authorize the Mayor and City Manager to execute, a Certificate of
Completion to release the Development Agreement and Acquired Property
Deed.
History
In 1994 the City entered into a Development Agreement with James E.
Becker for Lot 3, Block 1 of the Waterfront Passage Business Park. The
Development Agreement provided for TIF funding, project completion and
transfer of the property from the City to the developer. However, the
Development Agreement included a legal description for the entire
Development District not just the project area.
Exhibit E to the Development Agreement was an Acquired Property Deed
by which the City transferred the property to the developer. The Acquired
Property Deed provided that the property would revert to the City if the
project was not completed. If the project was completed, the City was to
execute a Certificate of Completion, attached to the Development
Agreement as Exhibit F, which would release the City’s reversionary
interest.
Current Circumstances
The purchaser of 16980 Welcome Ave SE Unit 1 discovered that the
Development Agreement with the reversion language was recorded
against 16980 Welcome Ave SE Unit 1 even though the property was not
included in the Acquired Property Deed. The purchaser has requested that
the City execute Certificate of Completion which will release all property
affected by the Development Agreement from the reversion language in
the Aquried Property Deed.
2
City staff has confirmed that the project was completed. Therefore it is
appropriate to approve and execute the Certificate of Completion. Upon
execution City staff will provide the executed document to the title company
on the transaction.
Conclusion
It is recommended that the City Council approve and authorize the Mayor
and City Manager to execute the Certificate of Completion.
FINANCIAL
IMPACT:
As with other development work the cost of legal review is being passed
through to the property owners.
ALTERNATIVES: 1. Approve and authorize the Mayor and City Manager to execute the
Certificate of Completion.
2. Deny the Certificate of Completion.
3. Table the matter and provide staff with direction.
RECOMMENDED
MOTION:
Alternative #1
CERTIFICATE OF COMPLETION AND RELEASE OF FORFEITURE
WHEREAS, the City of Prior Lake, Minnesota (the "Grantor), a municipal corporation organized
and operating pursuant to laws of the State of Minnesota, entered into a Development Agreement
(“Development Agreement”) recorded as Doc. No. 359143 in the Office of the County Recorder in and
for the County of Scott and State of Minnesota, with James E. Becker (the "Grantee"), for the
following legally described property, to wit:
All of the Southeast Quarter of Section 1, Township 114, Range 22, Scott County,
Minnesota.
And that part of the East 1/4 of the Southwest Quarter, Section 1, Township 114,
Range 22, Scott County, Minnesota, lying northerly of the northerly right-of-way of
Eagle Creek Avenue (County Road 21). The west line of said East 1/4 shall be parallel
with the east line of said Southwest Quarter.
And that part of the Southwest Quarter, Section 1, Township 114, Range 22, Scott County,
Minnesota, lying southerly of the Northerly right-of-way of Eagle Creek Avenue (County
Road 21) and southeasterly of the southeasterly right-of-way line of Franklin Trail (County
Road 39) except for that part of BORGERDING SECOND ADDITION, according to the
recorded plat thereof, lying within said Southwest Quarter
WHEREAS, the Grantor by a deed (“Deed”) recorded as Doc. No. A337644 in the Office of the
County Recorder in and for the County of Scott and State of Minnesota, has conveyed to Grantee
the following legally described property, to wit:
That part of the Southwest Quarter of Section 1, Township 114, Range 22, Scott County,
Minnesota described as follows:
Lot 3, Block 1, Waterfront Passage Business Park.
WHEREAS, said Development Agreement and Deed incorporated and contained certain
covenants and restrictions, the breach of which by the Grantee, its successors and assigns, would
result in a forfeiture and right of re-entry by the Grantor, its successors and assigns; and
WHEREAS, the Grantee has to the present date performed said covenants and conditions insofar
as it is able in a manner deemed sufficient by the Grantor to permit the execution and recording of this
certification:
NOW, THEREFORE, this is to certify that all building construction and other physical
improvements specified to be done and made by the Grantee have been completed and the above
covenants and conditions in said Deed and Development Agreement have been performed by the
Grantee therein and that the provisions for forfeiture of title and right to reentry for breach of condition
subsequent by the Grantor, contained therein, are hereby released absolutely and forever insofar as
they apply to the land described herein, and the County Recorder or the Registrar of Titles in and for
the County of Scott and State of Minnesota is hereby authorized to accept for recording and to record
the filing of this instrument, to be a conclusive determination of the satisfactory termination of the
covenants and conditions of said Deed and Development Agreement which would result in a forfeiture
by the Grantee, its successors and assigns, the right of the Grantor, its successors and assigns, to re-
enter and take possession of the property as set forth in said Deed and the Development Agreement,
and that said Deed and Development Agreement shall otherwise remain in full force and effect.
IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its
name.
GRANTOR
CITY OF PRIOR LAKE
____________________________________
Kenneth L. Hedberg, Mayor
_____________________________________
Frank Boyles, City Manager
STATE OF MINNESOTA )
) ss.
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this ____ day of __________, 2016, by
Kenneth L. Hedberg and Frank Boyles, respectively the Mayor and City Manager of the City of
Prior Lake, a Minnesota municipal corporation, on behalf of the city.
Notary Public
Drafted By:
Gregerson, Rosow, Johnson & Nilan, LTD
100 Washington Ave S, Suite 1550
Minneapolis, MN 55401