HomeMy WebLinkAbout4I - Reliant Energy Minnegasco
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
"
ALTERNATIVES:
RECOMMENDED
MOTION:
CITY COUNCIL AGENDA REPORT
March 15, 1999
41
Frank Boyles, City Manager
CONSIDER APPROVAL OF AUTHORIZATION TO EXECUTE
PURCHASE AGREEMENT WITH RELIANT ENERGY
(MINNEGASCO).
History
Some years ago, Reliant Energy (Minnegasco) acquired a 20' x 20'
parcel of property as a location for a gas metering station. The
construction of the Library/Resource Center has necessitated
acquisition of the property and relocation of the metering station.
Current Circumstances
We have negotiated a purchase price of $1650 for the acquisition of
the property. We demolished the building. The City was not billed for
relocation of the gas main associated with abandonment of the
building. The purchase. agreement itself has been reviewed by the
City Attorney's office and executed by Reliant. The agreement has
been returned for execution within the last week.
Conclusion
The City Council should authorize the Mayor and City Manager to
execute the attached purchase agr 0 cost is drawn
ibrary/Resource Cente udget (attached).
(1) Authorize the Mayor and City Manager to execute the attached
purchase agreement.
(2) Defer action for a specific reason.
Motion and second as part of the consent agenda to authorize the
Mayor and City Manager to execute the attached purchase
agreement.
1620'(t~\a~~tA\99\9319.PH~ke, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
...
PURCHASE AGREEMENT
Minneapolis, Minnesota, February -----J 1999
This Purchase Agreement is made by and between the City of Prior Lake, Minnesota, a
municipal corporation (hereinafter "Purchaser") and Reliant Energy Minnegasco, a division of
Reliant Energy Resources Corp. (a wholly owned subsidiary of Houston Industries Incorporated
(hereinafter "Seller").
Purchaser shall buy from Seller and Seller shall sell to Purchaser, upon the terms and
conditions hereof, the following property (hereinafter "Subject Property") legally described as
follows:
A parcel of land located in Lot 7, Block 4, Village of Prior Lake, Scott County,
Minnesota, according to the plat thereof on file and of record in the Office of the
Register of Deeds in and for said County and State described as follows:
Commencing at a point on the west line of said Lot 7, which point is 22 ~ feet
southerly of the Northwest Corner of said Lot 7, thence easterly and parallel with
the North line of said Lot 7, a distance of 20 feet; thence Southerly and parallel
with the west line of said Lot 7, a distance of 20 feet; thence Westerly and parallel
with the North line of said Lot 7, a distance of20 feet; thence Northerly along said
West line of said Lot 7, a distance of 20 feet to the place of beginning.
The purchase price for the Subject Property shall be One Thousand Six-Hundred Fifty and
No/100 dollars ($1,650.00) and shall be payable by Purchaser to Seller on the date of closing.
1. Seller hereby agrees to sell to Purchaser the Subject Property, free of any liens and
encumbrances, including any DCC liens.
2. Subject to performance by the Purchaser, the Seller agrees to execute and deliver a
Warranty Deed conveying said premises subject only to the following exception:
Reservation on any minerals or mineral rights to the State where located and easements of
record.
3. The "date of closing" shall be the 1 st day of March 1999 or as soon thereafter as is
possible consistent with the terms of this Agreement.
4. Seller hereby agrees to pay all real estate taxes levied against the property herein sold,
except such taxes due and payable in 1999 will be prorated on a daily basis with the Seller
paying taxes owed until and through the date of closing. Purchaser shall pay all special
assessments levied against said property prior to and including the closing date.
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5. The Seller further agrees to deliver possession of property at date of closing, provided that
all conditions of this Agreement have been complied with.
6. The Seller further agrees to provide to the Purchaser the statutory well disclosure form
and Seller's Affidavit on the date of closing.
7. The Seller shall maintain liability insurance. This coverage shall be maintained until the
date of closing.
8. The Seller shall within a reasonable time after acceptance of this Agreement, furnish to
Purchaser an Abstract of Title or a Registered Property Certificate. The Purchaser shall
be allowed twenty (20) days after receipt thereof for examination of said title and making
of any objection thereto, said obJections to be made in writing or deemed to be waived. If
any objections are so made, the Seller shall be allowed 120 days to make such title
marketable. Pending correction of title, payments hereunder required shall be postponed,
but upon correction of title and within the twenty (20) days after written notice to the
Purchaser, the parties shall perform this Agreement according to its terms.
9. If said title is not marketable and is not made marketable within 120 days from the date of
written objection thereto as above provided, the Purchaser shall have the option to either
consider this agreement null and void with no further liability to the parties, or to take the
necessary leal steps to make the title marketable at Seller's expense, including costs,
expenses and reasonable attorney's fees, up to a maximum of $500.00. If the title to said
property be found marketable or be so made within said time, and said Purchaser shall
default in any of the agreements and continue to default for a period often (10) days, then
and in that case, the Seller may terminate this contract and on such termination, all the
payments made upon this contract shall be retained by said Seller as liquidated damages,
time being of the essence hereof Purchaser shall not be responsible for any damages in
excess of prior payments. Seller's sole and exclusive remedy for breach of this Agreement
shall be cancellation of this Agreement.
10. To the best of Seller's knowledge no toxic or hazardous substances (including, without
limitation, asbestos, urea formaldehyde, the existence of organic compounds know as
polychlorinated biphenyls, and any hazardous substances as defined in the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (''CERCLA''), 42
U.S.C. ~~ 9601-9657, as amended), have been generated, treated, stored, released or
disposed ot: or otherwise deposited in or located on the above described property, by the
Seller, including, without limitation, the surface and subsurface waters of the property
which would cause (i) the property to become a hazardous waste treatment, storage or
disposal facility within the meaning ot: or otherwise bring the property within the ambit ot:
the Resource Conservation and Recovery Act of 1976 ("RCRA"), 42 U.S.C. ~ 6901 m
~, or any similar state law or local ordinance or any other Environmental Law, (ii) a
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release or threatened release of hazardous waste from the property within the meaning of~
or otherwise bring the property within the ambit of CERCLA, or any similar state law or
local ordinance or any other Environmental Law, or (ill) the discharge of pollutants or
effluents into any water sources system~ or the discharge into the air of any emissions~
which would require a permit under the Federal Water Pollution Control Act, 33 D.S.C. ~
1251 et seQ., or the Clean Air Act~ 42 D.S.C. ~ 7401 et seQ , or any similar state law or
local ordinance or any other Environmental Law. To the best of Seller's knowledge there
are no substances or conditions in or on the property known to the seller which may
support a claim or cause of action under RCRA, CERCLA or any other federal, state or
local environmental statutes, regulations~ ordinances or other environmental regulatory
requirements and that no underground deposits which cause hazardous wastes or
underground storage tanks are located on the property.
11. Except for any willful misrepresentation or any willful or wanton misconduct or any
negligence of the following named parties the Purchaser agrees to release, indemnify,
defend and hold harmless Seller and the governing body members, officers, agents,
servants and employees thereot: now or forever, and further agrees to hold the aforesaid
harmless from any claim, demand, suit action, liability (including reasonable attorneys' fees
and costs of defense), or other proceeding whatsoever by any person or entity whatsoever,
including the Purchaser and its successors and assigns, arising or purportedly arising from
this Agreement, including but not limited to, liabilities and claims related to or arising from
the presence of Hazardous Substances or adverse environmental conditions, soils and
geotechnical conditions or any other matter relating to the physical condition of the
property other than Hazardous Substances or environmental conditions caused by Seller.
12. Purchaser and Seller agree that all contacts, communications, negotiations, and
agreements have been made directly by and between Purchaser and Seller herein without
the aid, assistance, or presence of any third parties, including any real estate brokers or
sales people. Accordingly, no portion of the sales price shall be paid to, or held for, any
sales agent at the time of closing, unless Seller independently agrees to pay any such
amounts which shall become the Seller's sole responsibility.
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I (We), the undersigned authorized representative( s) of Seller, declare and affirm that Seller,
owner of the above-described property, does hereby accept this Agreement and sale hereby made.
The Purchaser agrees to purchase the above-described property for the price on the terms and
conditions set forth above.
Dated
Dated
PURCHASER:
SELLER:
Reliant Energy Minnegasco, a division of
Reliant Energy Resources Corp. (a wholly
owned subsidiary of Houston Industries
Incorporated d/b/a Reliant Energy,
Incorporat ~
The City of Prior Lake, Minnesota, a
municipal corporation
By:
Wesley M. Mader
Its: Mayor
By:
Frank Boyles
Its: City Manager
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