HomeMy WebLinkAbout8B - Kop Farm
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
ISSUES:
(1 )
~~'.~
CITY COUNCIL AGENDA REPORT \M', ~
~..lJ~
~~ '.0
\,J~"
March 15, 1999 ;\
:~ank Boyles, City Manag~ 19' /1
/
CONSIDER APPROVAL OF RESOLUTION ~ APPROVING A
PURCHASE AGREEMENT TO ACQUIRE THE ENTIRE 15.18 ACRE KOP
PROPERTY TO BE INCORPORATED INTO LAKEFRONT PARK AND
REPEALING IN THEIR ENTIRETY RESOLUTIONS 98-99 AND 99-09.
History
The Comprehensive Plan, over the last twenty years, has provided for the
acquisition of the Kop farm for inclusion into Lakefront Park. In 1995, a Master
Plan for Lakefront Park, which also included acquiring the Kop farm, was
developed, reviewed by the public and adopted by the City Council. The 1997
Park and Library Referendum confirmed that the City could now purchase the
Kop property for park purposes. Until this week, we have been unable to reach
an agreement on acceptable purchase terms for all or any part of the Kop
property. Therefore, the City implemented a process to acquire the property
through condemnation proceedings; first for the entire farm and, more recently,
to acquire only 2.21 acres for road access purposes.
Current Circumstances
This week, following the City Council's adoption of Resolution 99-09 which
authorizes condemnation of the 2.21 acres of the Kop farm for road access
purposes, the Kop's attorney contacted Assistant City Attorney Tom Scott
indicating that the City's previous terms for acquisition of the entire 15.18 Kop
property (cash proposal and life estate) are acceptable. A purchase agreement
has been prepared and executed by the Kops and is attached to this Report.
The Purchase Agreement calls for the City to pay $550,000 for the entire 15.18
acre property, and allows John and Meda Kop to live on the property as long as
they wish or are able. The Kops are responsible for traditional Seller costs
including title work, state deed tax and payment of deferred green acres taxes
for the last three years. The Kops will also pay the principal amount of $7839
for a paving assessment against one of their parcels. Under the terms of the
agreement, the City would waive $3175 in interest due on this assessment.
Conclusion
The question before the Council is does it wish to purchase the entire property.
In addition to the fiscal impacts, acquisition of the 'Parcel for inclusion in the
remodeled Lakefront Park would have the following impacts:
The Park plans revert back to the approved Master Plan in that the athletic
fields shift southerly onto the northerly portion of this property. The access
road, however, remains in its most recent configuration which is less intrusive
li~<ID\~bdtpt&g~a15.J8.elOOor Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
(2)
(3)
(4)
(5)
(6)
FISCAL IMPACT:
ALTERNATIVES:
(1 )
RECOMMENDED
MOTION:
to the Kops and the property than the Master Plan contemplated. Two graphics
are attached. One shows how the playfields will be moved southerly and the
other shows the park access road configuration. Seven feet of freeboard exists
between the road and pond.
The right-of-way needed from this property to accomplish safety improvements
to the CSAH44 / TH 13 intersection in the future would now be controlled by the
City.
No condemnation would be needed now for any part of Lakefront Park, or in
the future for the realignment of the CSAH44 / TH 13 intersection.
John and Meda Kop would retain a lifetime estate on the homestead as long as
they wished or were able.
A historic property in Prior Lake would be preserved.
Construction of the Lakefront Park improvements could begin without delay.
The $550,000 purchase price would be funded as follows:
$300,000 - Referendum
$125,000 - Construction fund
$ 50.000 - DNR Grant (approval attached)
$475,000
To complete the funding of the park acquisition, an additional $75,000 must be
drawn from the Referendum proceeds and the Lakefront project would be
reduced accordingly unless favorable bids or force labor reductions in the
project costs in a corresponding amount. We are also requesting a DNR grant
(See Agenda Item 4F) to mitigate against the impact of this purchase on the
park project.
The $125,000 allocation from the Construction Fund is from two allocations
authorized by the City Council in 1996 to be devoted to Lakefront Park road
and parking lot improvements if the Referendum failed. The $50,000 DNR grant
was requested in 1998 and has now been approved and received.
(2)
Adopt Resolution 99-XX approving the purchase agreement to acquire the
entire 15.18 acre Kop property to be incorporated into Lakefront Park and
Repealing in their entirety Resolutions 98-99 and 99-09.
Table the matter for a specific reason.
Alternative No. (1).
i:council\agdrpts\99\0315_8B.doc
Whereas,
Whereas,
Whereas,
Whereas,
Whereas,
Whereas,
RESOLUTION 99-XX
A RESOLUTION APPROVING THE ACQUISITION OF
THE 15.18 ACRE KOP PROPERTY, AUTHORIZING THE MAYOR
AND CITY MANAGER TO EXECUTE THE PURCHASE AGREEMENT
AND LEASE, AND REPEALING IN THEIR ENTIRETY
RESOLUTIONS 98-99 AND 99-09
The City's Comprehensive Plan, The Lakefront Park Master Plan and the 1997 Park and
Library Referendum contemplate City acquisition of the 15.18 acre Kop farm for
inclusion in Lakefront Park; and
The City Council has adopted Resolution 98-99 authorizing condemnation of the entire
property and Resolution 99-09 which authorizes condemnation of 2.21 acres for park
access only; and
The City has continued to negotiate with Kop representatives despite passage of the
condemnation resolutions; and
The City Council believes it is preferable to acquire the property through a negotiated
purchase under terms mutually acceptable to both parties; and
The City and Kop family have reached an agreement for purchase of the entire property
and leasing back a portion of the property to John and Meda Kop; and
Such agreements have been incorporate into the Purchase Agreement and Lease which
has been executed by the Kop family.
Now Therefore, be it hereby resolved by the City Council of the City of Prior Lake, Minnesota, that:
1. The recitals set forth above are herein restated.
2. The Purchase Agreement and Lease executed by the Kops on March 11, 1999 are hereby
approved..
3. The Mayor and City Manager are hereby authorized to execute the Purchase Agreement and
Lease on behalf of the City.
4. Resolutions 98-99 and 99-09 are hereby repealed in their entirety upon closing of the Purchase
Agreement betweeh the City and the Kops.
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
i
5. Funds for this acquisition are identified as follows:
Referendum
Construction Fund
DNR Grant
TOTAL
$375,000
$125,000
$ 50.000
$550,000
6. The Kops will pay the City the remaining outstanding principle balance on special assessment
#72 which is $7839.20 and the City will waive payment of the accrued interest on the special
assessment in the amount of $3174.88.
Passed and Adopted this 15th day of March, 1999.
mmj~j~~jj~jt~~j~jfmmmtm~tmmjtm~~mm~mj YE S :jffmmmmfmm~mm~m~mmmmmmmmfmjm NO
.
.
.
Frank Boyles, City Manager
r:\cou nci I\resol uti\ad m i nres\kopfarm .doc
4.1
~
...J
.....
o
't:
~
c....
o
~.
U
I
C
ca
a:
.....
lU
vt
CI:l
~
~
.....
C'd
c..
...
c::
~
u
~
ca
...J
~
a~:9
~ a~
~~
2~
CI)
ro
~
[{, [l~'.-11
;;;)
~ ~
5 ~
~ .~ ~
a ~g e
a t.. ~
..
'-
!
.. ~ n a
~ ~ ~ ~g g~s
h.:l~~.~~~d~g~.'~..
1~~i~J~Bg~~~~e
I i~€ ~1~ ~.~~~~
..~'" ~dJ~i=~..1
v ..... . ..~'jt~
~:a,,2 ~_g;..", .._..~,
I
~I ~ ~ ~V
- ~ ~ , eS
~ ~'~2 ~ ~~
J 9~' ~ ~~.i. ~ ~. ~~~
i i~~ ~ ~~~ ~ ~ ~
~ ;!p~ . ~~ .~w. $~.'.~ ~~~!I
s~~~ ~f ji~~ :~~~ ~~~ s~
~ !,!!ll~~i"iil.~il~ gi.ll;
~ !.e~~~~ ~~~~~~~~~~I~~~~B~~
~ 1~I~ii~iia~lil!~iii~ii~lil
Oi -<.~~ u......Q ~."",~""""'~". C..-;.r.~ ."J:;,>o;r ~:l-.,"
'"
3
~
~
-<-z-
r...
~
fJ ~
~
p: ~
.... I
~ ~
III ..or-;
C'd
:s ~
!:: ...
- &:5
- [z"Q:
-
1.0
0\
0\
V)
I
M
~
J1
~I
f;.,o
-ci
::i
vi
Co)
c;
'u
o
III
<Il
<:
~
.....
lU
='
C'd
.....
co
Jul. 17. 1998
BRAUER & ASSOC.
9: 13AM
~ ]
~ ~
o. ~ ~
:;~ ~ ?- .~c;;
"~I:l' \"'" ~ :7: i ~"":~
'liC!\.'/ lNnOV''l3Sal~~ ~ ~, :~~~
- ~~ul[_..;ron~- - - ~ -=--- --' "" ~
......--..: I \ -I"'....
-- ~~_I ~A '''x'i?~~(I' . I . . \.....,~.. -
t1"..~..._...(J_;) ,- l7 ~~;" I ~..
1 ~'~f-. ~ ",:' ..,"'~,"<- o'.' ;:; >,
~ -" .J......;~ ~ i:I ....:~ " .:;.;~~
. ' .- .... . . j Y. ~ - '7 ~'c'- ,., .... -''''
,..' ,...... mn- -- .:). .. i 'C"'~" ::,' '- .;v::'O:
..'_ ...,.......:_ . - .~: . .....-~Jl Is . ~!~~ . ~"O......,.. ,2"','"
".'/ -,-,,__,~ 71~H"" ~"""'V,., i'q;.
1':;;:;'/,,/- "'" - --;. / ~ i/:/~~';'/~{ v. ,. .
.,:~% ~ J.-..... -------._.~ - ..".' ,'11 i,',',,;( ,~~
., ."./' /' ..."" - ~. ---'-" ""--.--- .." .,/1://" ,. 'Iij'"
It;.... . ". ....~. ....---.- --- '--. - _._-'., "./,; ,,/./// ~1l"'"
If~ti~~~i~~~~~~~l{;fj~:&iJJ~
.~-.~~---- -... ------.... -.----- '-,- ...../.,~~
f_:{\;=~~~~~i~~~;;~~~i
-- --4'c-""- ..---...--1="'=-=---_., /:!' ,.--' /'.
--'::.--\\--- r r--'. /.%-:/. '--1
--'-~'/'~I- f / -:.,.,-....~/~1~
\ \ . ..:{)"2t~ // '1
\\ ~t~~h..:_-
----". \ ' I" ',/;/ '-F'f"-
; f--~r- ~. ~ --.:.'-,
3......c~~.~!. (...'~t -~\ i ~//
....'1 ."~'" ~ !,\ \ ' ~'''''", 1
. '.'-:i ~:\.. '.. /
J. p'. ..9.-?:~1,'::..., '- t....1
i ; ..- -~</. '-\-~ I 'I.,.....
_ - .-Y /'~" ..t i ., " ..... ...
. ...p.,....;~~...~ ~ Ll_.i
:?'.. <'w > !. \\ '.'
. .~.-\ '. \,\
"
--.d l'
- ..--'1
/" 1\
/J \
. I .
.: l ~
!
>-
.. ~
"'t
~~
, ,.It
i I I ! r
II I .. ,-
~ tf./" ~
~ ~
I . ~
I ,;
I, ;:.
~
~ -1
~ ,
~ ~\
)
i
9
t4,.
~\
tL.......,.
::~.~
UJ
6
E:
No. 1906
-.;t,
. I ",
t "o_
j <".
c;t ~.~~:~
....i ....i t..
r../ ':,.. ~~. .
i\..>-- ~ -.,~;
I ~ .J
O'",;\t
.~ -:- ~\
~~~f;
'.....
~ ai ....
'"
.. eo!
':! :; ;
;::
:'l ,~
~ ~ ~
~ bl a2
b ~ :8 "
II' ..
~ ~o ..
~~ C'l
~ ,..,e 2:
.;i~
~ ~;r
... I
<: ;
;'0..
g
'i
-<. .
, (r',
, I....,,;
......
;,;",
--,'
<;
r r:' <:/
"C........
\...~-
P.
1/1
r::.
co
I"'-
~
CD
o
z
><
as
u.
~
-
(II
~ ~
<""
~
,...-~
...
4)
E
.c
0..
=-
)(
ClS
U.
"
-
-......
!
"
,
. \
\~
/.~'"
.... --
-~-
-i..
I
I .
--.,-~r
"i'-... r-=..
Minnesota Department of Natural Resources
June 11, 1998
/
/
1lo"L)~ fJO
(\ 4.. L( 0 I
Mr. Paul Hokeness 1) ~) ')
Parks Director, City Of Prior Lake ( ~C#' /
16200 Eagle Ck Ave SE \") ~\ 'L. ~~\~
Prior Lake. MN "55372 r:/. ~ t~~'
RE: FY 1999 Local Park Grant Program Application -1f.~~'" 11
Grant amount: $50,000 Lakefront Park Acquisition , \"\ '\
~ .
OFFICE OF THE COMMISSIONER
500 Lafayette Road
St. Paul, Minnesota 55155-4037
.-----
,,/'
-///
o
~\ ~~q~p\S;
\ ""ctt~
~ 1^
~;,t<'\'
Dear Mr. Hokeness:
I am pleased to inform you that your application for the Local Park Grant Program
has competed successfully for funding. Funding for this program is appropriated
by the Legislature upon recommendation of the Legislative Commission on
Minnesota Resources. We anticipate being able to offer you a grant for the
amount shown above contingent upon the final processing of your application.
Final processing of your grant requires submittal of additional information which
must be completed in a timely manner. You will be contacted shortly by a staff
member from the Local Grants Program regarding the final processing
requirements for your application.
DO NOT incur any project costs. This notice does not constitute final approval of
your project. Any work completed, money spent, or obligations incurred for
acquisition or development of YOl)r project prior to final approval are ineligible
and cannot be paid for with grant funds or used as the local share.
The Local Grants Program staff are looking forward to working with you on this
project. If you have any questions, can Wayne Sames at (612) 296-1567.
Congratulations.
Yours truly,
;&~-
Rodney W. Sando
Commissioner
DNR Information: 612-296-6157, 1-800-766-6000 · TTY: 612-296-5484, 1-800-657-3929 · FAX: 612-296-4799
An Equal Opportunity Employer
ft Printed on Recycled Paper
'-~ Containing 10% Post-Consumer Waste
RESOLUTION 98-99
CITY OF PRIOR LAKE
SCOTT COUNTY, MINNESOTA
RESOLUTION AUTHORIZING CONDEMNATION OF PROPERTY
FOR PARK PURPOSES.
MOTION BY:
KEDROWSKI
SECOND BY: PETERSEN
WHEREAS, on April 11, 1996 the City Council of Prior Lake approved the
Lakefront Park Master Plan which included the land legally
described in Exhibit A referred to herein as the Kop property;
. and
WHEREAS, on January 21, 1997 voters in the City of Prior Lake passed a
$7.8 million dollar bond referendum for library and park
purposes which included funds for the acquisition of the Kop
Farm; and
WHEREAS, the City Council of the City of Prior Lake does hereby
determine that it is necessary and for a public purpose to
acquire the property described on the attached Exhibit A for
public park land; and
WHEREAS, the City has been unable to acquire the property through
negotiation with the landowner; and
NOW THEREFORE, be it resolved by the City Council of the City of Prior
Lake, Minnesota:
1. That the City Attorney is authorized to commence eminent domain
proceedings pursuant to Minnesota Statute Chapter 117 to acquire the
property described on the attached Exhibit "A".
2. That the Mayor and the City Manager are authorized to execute all
documents necessary, in the opinion of the City Attorney, to effect the
acquisition of the necessary property interests.
16200 E9.Sg~~ve. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
EXHIBIT A
OF RESOLUTION 9899
That part of the Southeast Quarter of the Southeast Quarter of Section 35,
Township 115, Range 22, Scott County, Minnesota described as:
Beginning at the Southeast corner of said Section 35; thence Westerly along
the Southerly line of said Section 35, a distance of 1449.00 feet; thence
Northerly and parallel with the Easterly line of said Section 35 a distance of
462.00 feet; thence Easterly and parallel with the southerly line of said
Section 35 a distance of 1449.00 feet to the Easterly line of said Section 35;
thence Southerly along said Easterly line a distance of 462.00 feet to the
point of beginning. Which lies northwesterly of State Trunk Highway No. 13,
as monumented.
And
That part of the Northeast Quarter of the Northeast Quarter of Section 2,
Township 114, Range 22, Scott County, Minnesota which lies westerly of
State Trunk Highway No. 13, as monumented, and which lies westerly of the
centerline of Old Trunk Highway 13 and lying northerly of the following
described parcel:
All that part of the Northeast Quarter of the Northeast Quarter of Section 2,
Township 114, Range 22, Scott County, Minnesota as described as follows:
Beginning at the Northeast corner of Block 9, in the original plat of Prior
Lake; thence South 74 degrees 41 minutes 00 seconds East, along the North
line of said original plat of Prior Lake a distance of 69.7 feet to the center line
of Old Trunk Highway No. 13; thence Northeasterly along said center line to
a point said being North 48 degrees 48 minutes 00 seconds East and distance
515.7 feet from the previous described point; thence North 59 degrees 57
minutes 48 seconds West a distance of 355.83 feet; thence West to the West
line of said Northeast Quarter of the Northeast Quarter; thence South along
said West line to the North line of said Block 9; thence South 74 degrees 41
minutes 00 seconds East along said North line to the point of beginning.
9899.DOC
RESOLUTION 99-09
A Resolution Amending Resolution 98-99 Authorizing
Condemnation of Property By Reducing The Amount
Of Property Acquired From 15.18 Acres (Entire Parcel) to
2.21 Acres For Road Access Purposes Only.
Motion By: Schenck
Second By: Wuellner
WHEREAS,
on August 17, 1998, the City Council of Prior Lake passed and adopted Resolution 98-
99 authorizing the City Attorney to commence eminent domain proceedings pursuant to
Minnesota Statutes Chapter 117 to acquire property described therein for public park
land; and
WHEREAS,
the City Council of the City of Prior Lake does hereby determine that it is no longer
necessary to acquire the entire property described in Resolution 98-99 for public park
land; and
WHEREAS,
the City Council of the City of Prior Lake does hereby determine that it is necessary and
for public purpose to acquire the property described on the attached Exhibit "A" for
roadway purposes.
Now THEREFORE, be it resolved by the City Council of the City of Prior Lake, Minnesota that:
(1) The City Attorney is authorized to commence eminent domain proceedings pursuant to
Minnesota Statutes Chapter 117 to acquire the property described on the attached Exhibit "A".
(2) The Mayor and the City Manager are authorized to execute all documents necessary, in the
opinion of the City Attorney, to effect the acquisition of the necessary property interests.
PASSED and ADOPTED this 16th day of February, 1999.
YES
Mader
Kedrowski
Petersen
Schenck
Wuellner
x
X
X
X
Mader
Kedrowski
Petersen
Schenck
Wuellner
NO
X
City Mana
{Seal}
r: \cou nci I\resol\ad mi n res \99\reskopa c. doc
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTl JNITY EMPI.oVER
REAL ESTATE PURCHASE AGREEMENT
THIS AGREEMENT (the "Agreement") made and entered into this
day of
, 1999, by and between the CITY OF PRIOR LAKE, a Minnesota
municipal corporation, with offices at 16200 Eagle Creek Avenue SE, Prior Lake, Minnesota
55372-1714 (referred to herein as the "Buyer"), and JOHN AND MEDA KOP, husband and
wife, whose address is 1600 Main Avenue S.E., Prior Lake, Minnesota 55372 (the "Sellers").
IN CONSIDERATION of the mutual covenants and agreements herein, it is hereby
mutually agreed by Sellers and Buyer as follows:
SECTION 1.
SALE AND PURCHASE OF LAND
1.1) Sellers shall sell to Buyer and Buyer shall purchase from Sellers, upon the terms
and conditions hereof, the following property (all collectively referred to as the "Subject
Property"):
1.1.1) The land in the City of Prior Lake (the "City"), Scott County, Minnesota,
legally described on Exhibit A attached hereto and incorporated herein, together with all
right, title, and interest in and to any roads or alleys adjoining or servicing such land,
rights-of-way, or easements appurtenant thereto, and in and to any ditch, water, or riparian
rights and claims appurtenant thereto, and to any unpaid award with respect thereto (the
"Land");
1.1.2) Any improvements and immovable fixtures located on the Land as of the
date of Closing; and
1.1.3) All rents, leases, contract rights, causes of action, permits, licenses, and
other rights relating to the Subject Property.
70467
SECTION 2.
PURCHASE PRICE
2.1) The purchase price for the Subject Property (the "Purchase Price") shall be Five
Hundred Fifty Thousand and No/IOO ($550,000.00) Dollars and shall be payable by Buyer to
Sellers by check on the date of closing.
SECTION 3.
TITLE MATTERS
3.1) Sellers, at their own expense, shall furnish to Buyer, within twenty (20) days
hereof, a current commitment for the issuance of an owner's policy of title insurance (the
"Commitment") issued by a Title Insurance Company acceptable to Buyer ("Title") in the amount
of the Purchase Price, committing to insure that Buyer will have good and marketable title to the
Subject Property, free of any exceptions to title, except matters to which Buyer may consent in
writing.
3.2) In the event any exceptions are listed in the Commitment for title insurance, and
Buyer objects to the exception, in writing, within ten (10) days after receiving the Commitment,
the Sellers shall have sixty (60) days from receipt of the Buyer's written title objections to cure
such exceptions. (Buyer does not need to register objection to any encumbrances which may be
discharged at closing by a liquidated sum of money, such as mortgages, liens and judgments,
because any of these not removed prior to closing will be paid and discharged from the proceeds
of the closing.) Pending corrections of title, all payments required herein and the closing shall
be postponed. If the Sellers fail to cure the same within the said sixty (60) days, the Buyer, at
Buyer's option, may either (a) proceed to close this transaction without any discount in the
purchase price and take title subject to such exceptions, or (b) terminate this Agreement, and
recover any and all earnest money paid.
70467
2
SECTION 4.
CLOSING
4.1) The closing (the "Closing") shall be at a location agreed to by Buyer and Sellers,
and shall occur on or before April 15, 1999, unless an earlier date is agreed to by Buyer and
Sellers (the "Closing Date").
4.2) Buyer agrees to accept the Subject Property in "AS IS" condition with no
warranties, express or implied, except as are herein contained in this Agreement.
4.3) On the Closing Date, Sellers shall execute and deliver to Buyer:
4.3.1) A duly executed warranty deed, free and clear of all liens and
encumbrances, except easements in place or of record, except those consented to by
Buyer;
4.3.2) A duly prepared and executed Well Certificate, if required;
4.3.3) A customary affidavit that there are no unsatisfied judgments of record, no
actions pending in any state or federal courts, no tax liens, and no bankruptcy proceeding
filed against Sellers, and no labor or materials have been furnished to the Subject Property
for which payment has not been made, and that to the best of Sellers' knowledge there
are no unrecorded interests relating to the Subject Property; and
4.3.4) A certificate on a form acceptable to Buyer that all of the covenants,
representations and warranties of Sellers as set forth in Section 5 are true and correct as
of the closing date.
4.4) Sellers shall pay at Closing: all the general real estate taxes levied against the
Subject Property due and payable for 1998 and all years prior thereto, together with Green Acres
deferred taxes. Buyer represents that the only City special assessment is a special assessment for
paving, designated as Levy Code # 72 in the amount of $11,014.08, that the principal balance
of the unpaid special assessment is $7,839.20, and that accrued interest on the special assessment
is $3,174.88. Sellers shall be responsible for payment of the principal balance of the unpaid
special assessment for Levy Code # 72 in the amount of $7,839.20. Buyer agrees to assume and
pay any remaining amount owed over said amount, including the accrued interest, for the special
70467
3
assessment designated as Levy Code # 72. Sellers and Buyer shall prorate to the date of Closing
all the general real estate taxes levied against the Subject Property due and payable in the year
of Closing.
4.5) Sellers shall pay at Closing:
4.5.1) state deed tax;
4.5.2) all costs of obtaining and updating the abstract to the Subject Property, or
providing the title commitment, including name searches, tax and assessment searches,
bankruptcy searches, and other customary charges attributable to obtaining the
commitment for title insurance;
4.5.3) all costs and fees incurred for corrective instruments required to remove
encumbrances, restrictions and conditions against title to the Subject Property and place
marketable title thereof in Buyer's name; and
4.5.4) one-half of the closing fee charged by the Title Company.
4.6) Buyer shall pay at Closing:
4.6.1) all recording fees and charges relating to the filing of the deed; .
4.6.2) title insurance premiums; and
4.6.3) one-half of the closing fee charged by Title Company.
SECTION 5.
COVENANTS. REPRESENTATIONS. AND WARRANTIES OF SELLERS
5.1) Sellers, as an inducement to Buyer to enter into this Agreement, and as part of the
consideration therefor, represents, warrants, and covenants with Buyer and its successors and
assigns that:
5.1.1) Except as otherwise provided for under this Purchase Agreement, there are
no leases, options, purchase agreements, rights to redeem, tenancy agreements, or rights
of occupancy, written or verbal, and no person or party has, or will have any rights of
adverse possession, regarding the Subject Property;
5.1.2) Sellers will maintain insurance against public liability from such risks and
in such limits as are prudent and suitable to the Subject Property from the date hereof to
the Closing Date;
70467
4
5.1.3) Neither Sellers, nor to the best of Sellers' knowledge, has any entity or
person, at any time:
1. "released" or actively or passively consented to the "release" or "threatened
release" of any Hazardous Substance (as defined below) from any "facility"
or "vessel" located on or used in connection with the Subject Property; or
11. taken any action in "response" to a "release" in connection with the Subject
Property; or
Ill. otherwise engaged in any activity or omitted to take any action which
could subject Sellers or Buyer to claims for intentional or negligent torts,
strict or absolute liability, either pursuant to statute or common law, in
connection with Hazardous Substances (as defined below) located in or on
the Subject Property, including the generating, transporting, treating,
storage, or manufacture of any Hazardous Substance (as defined below).
The terms set within quotation marks above shall have the meaning given
to them in the Comprehensive Environmental Response and Liability Act,
42 D.S.C. Sec. 9601 et seq., as amended ("CERCLA") and any state
environmental laws. "Hazardous Substances" means hazardous waste, toxic
substances, formaldehyde, urea, polychlorinated biphenyls, asbestos,
petroleum, natural gas, synthetic gas usable for fuel or mixtures thereof,
any materials related to any of the foregoing, and substances defined as
"hazardous substances", "toxic substances", "hazardous waste", "pollutant",
or "contaminant" in CERCLA, Resource Conservation and Recovery Act
as amended, 41 D.S.C. Sec. 9601 et seq., the Hazardous Materials
Transportation Act, 49 U.S.C. Sec. 1801 et seq., the Clean Water Act, 33
U.S.C. Sec. 1251 et seq., any state laws regarding environmental matters,
or any regulations promulgated pursuant to any of the foregoing statutes.
5.1.4) No entity or person to Sellers' knowledge, nor has Sellers at any time,
installed, used, or removed any underground storage tank on or in connection with the
Subject Property, other than the existing septic tank; and
5.1.5) As part of this agreement, Sellers shall execute the well disclosure
certificate attached hereto as Exhibit "B". Sellers shall deliver the well certificate to
Buyer on the date of execution of this agreement. Sellers warrant that all statements set
forth in the well certificate are true, accurate, and complete to the best of Sellers'
knowledge. Any costs connected with inspection, testing or certification of the existing
well or septic system shall be the Buyer's sole responsibility, and Buyer shall hold Sellers
harmless from payment of same.
5 .2) The covenants, representations, and warranties contained in Section 5 shall be
deemed to benefit Buyer and its successors and assigns. All of Sellers' covenants, representations
70467
5
. 1
and warranties in this Agreement shall be true as of the date hereof (and shall be a condition
precedent to the performance of Buyer's obligations hereunder) and as of the Closing Date. If
Buyer discovers that any such covenant, representation, or warranty is not true, Buyer may elect,
in addition to any of its other rights and remedies, to cancel this Agreement, or Buyer may
postpone the Closing Date up to ninety (90) days to allow time for correction.
SECTION 6.
CONTINGENCIES
6.1) Buver's Contingencies. The obligations of Buyer under this Agreement are
expressly contingent upon each of the following (the "Buyer's Contingencies"):
6.2.1) The representations and warranties of Sellers set forth in Section 5 of this
Agreement must be true as of the date of this Agreement and on the Closing Date, and
Sellers shall have delivered to Buyer at Closing a certificate dated the Closing Date,
signed by Sellers, certifying that such representations and warranties are true as of the
Closing Date;
6.2.2) Buyer shall have determined on or before the Closing Date, that it is
satisfied, in its sole discretion, with the results of matters disclosed by a Phase I
Environmental Audit or by any environmental/engineering investigation or testing of the
Subject Property performed by Buyer or Buyer's agent. By executing this Agreement,
Sellers hereby authorize Buyer to enter upon the Subject Property at reasonable times to
conduct the investigations and/or tests described herein. Buyer shall be solely responsible
for all environmental tests and shall hold Sellers harmless from any such costs and shall
indemnify Sellers for breach of this provision including reasonable attorneys' fees; and
If the Buyer's Contingencies have not been satisfied on or before the Closing Date, then
Buyer may, at Buyer's option, terminate this Agreement by giving notice to Sellers on or before
the Closing Date. The contingencies set forth in this section are for the sole and exclusive benefit
of Buyer, and Buyer shall have the right to waive the contingencies by giving notice to Sellers.
70467
6
SECTION 7.
AGREEMENT FOR CONTINUED USE OF PROPERTY BY THE KOPS
At the time of execution of this Purchase Agreement, the parties agree to execute the
Agreement attached hereto as Exhibit "e" which permits the Kops to continue their use of the
Subject Property as their principal place of residence during their lifetime or until they move their
permanent place of residence to a new location and which permits the City to improve and use
portions of the Property for roadway, prairie/wetland mitigation/restoration, recreational/park and
athletic. field purposes.
SECTION 8.
MISCELLANEOUS
8.1) The covenants, warranties and representations made by Sellers shall survive the
Closing of this transaction.
8.2) Sellers hereby indemnify Buyer for any claim, cost, or damage related to any
brokerage fee due because of this Agreement. Buyer represents that it has not entered into any
agreement, nor taken any action, that would cause or result in an obligation to pay a brokerage
fee.
8.3) Any notice, demand, or request which may be permitted, required or desired to be
given in connection herewith shall be in writing and sent by regular or certified mail, hand
delivery, overnight mail service (such as Federal Express, or Western Union telegram) or other
form of telegraphic communication, directed to Sellers or Buyer. Unless otherwise provided
herein, any notice shall be deemed effective when delivered to the party to whom it is directed.
Unless other addresses are given in writing, notices shall be sent to Sellers or Buyer at the
applicable address stated on the first page of this Agreement.
70467
7
8.4) Time shall be of the essence in this Agreement. Where any date or time prescribed
by this Agreement falls on a Saturday, Sunday or statutory holiday, such date or time' shall
automatically be extended to the next normal business day.
8.5) Each party hereto shall promptly, on the request of the other party, have
acknowledged and delivered to the other party any and all further instruments and assurances
reasonably requested or appropriate to evidence or give effect to the provisions of this
Agreement.
8.6) This Agreement represents the entire agreement of the parties with respect to the
Subject Property and all prior agreements, understandings, or negotiations between the parties are
hereby revoked and superseded hereby. No representations, warranties, inducements, or oral
agreements have been made by any of the parties, except as expressly set forth herein, or in other
contemporaneous written agreements. This Agreement may not be changed, modified or
rescinded, except by a written agreement signed by both parties hereto. Sellers and Buyer shall
have the right to modify, amend, or cancel this Agreement without the consent or approval of any
real estate broker or agent. Under no circumstances, including, without limitation, any default(s)
of Sellers and/or Buyer under this Agreement, will: (a) any real estate broker or agent be entitled
to any commission unless the Closing actually occurs, or to any notice under this Agreement; or
(b) Buyer have any liability and/or obligation for payment of any commission or other
compensation to any real estate broker or agent regarding this Agreement.
8.7) If Buyer defaults under any of the terms hereof, Sellers shall have the right to
pursue any remedies available to Sellers at law or in equity, including but not limited to specific
performance, damages (including attorney's fees), cancellation of this Agreement and/or retention
of earnest money paid herein by Buyer.
70467
8
8.8) If Sellers default under any of the terms hereof, including, without limitation, the
delivery of marketable title to the Subject Property as set forth in Section 4 hereof, and any of
Sellers' representations, covenants, and warranties in Section 5 hereof, then Buyer shall have the
right to pursue any remedies available to: Buyer at law or in equity, including specific
performance, damages (including attorney's fees) and the cancellation of this Agreement.
8.9) If any provision of this Agreement is declared void or unenforceable, such
provision shall be deemed severed from this Agreement, and the Agreement shall otherwise
remain in full force and effect.
8.10) Failure of any party to exercise any right or option arising out of a breach of this
Agreement shall not be deemed a waiver of any right or option with respect to any subsequent
or different breach, or the continuance of any existing breach.
8.11) This Agreement shall inure to the benefit of and be binding upon the parties hereto
and their respective heirs, personal representatives, successors and assigns. The Buyer may not
assign this Agreement without the written consent of the Sellers.
8.12) This Agreement shall be construed in accordance with the laws of the State of
Minnesota.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first above written.
BUYER:
CITY OF PRIOR LAKE
By:
Wesley M. Mader, Mayor
And
Frank Boyles, City Manager
70467
9
i
SELLERS:
. ~~;, /If ~.. ?
John Kop ;'
)y · <1 /
1...>1 ,l..:...-f{ .I 2..-
Meda Kop
STATE OF MINNESOTA )
) ss.
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this day of
, 1999, by Wesley M. Mader and Frank Boyles, respectively the Mayor and City
Manager of the CITY OF PRIOR LAKE, a Minnesota municipal corporation, on behalf of the
corporation and pursuant to the authority granted by its City Council.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this
, 1999, by John Kop and Meda Kop, husband and wife.
day of
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, MN 55121
Telephone: (651) 452-5000
AMP
70467
10
EXHIBIT A
to
REAL ESTATE PURCHASE AGREEMENT
That part of the Southeast Quarter of the Southeast Quarter of Section 35, Township 115, Range
22, Scott County, Minnesota described as:
Beginning at the Southeast corner of said Section 35; thence Westerly along the Southerly line
of said Section 35, a distance of 1449.00 feet; thence Northerly and parallel with the Easterly line
of said Section 35 a distance of 462.00 feet; thence Easterly and parallel with the southerly line
of said Section 35 a distance of 1449.00 feet to the Easterly line of said Section 35; thence
Southerly along said Easterly line a distance of 462.00 feet to the point of beginning. Which lies
northwesterly of State Trunk Highway No. 13, as monumented.
And
That part of the Northeast Quarter of the Northeast Quarter of Section 2, Township 114, Range
22, Scott County, Minnesota which lies westerly of State Trunk Highway No. 13, as
monumented, and which lies westerly of the centerline of Old Trunk Highway 13 and lying
northerly of the following described parcel:
All that part of the Northeast Quarter of the Northeast Quarter of Section 2, Township 114,
Range 22, Scott County, Minnesota as described as follows: Beginning at the Northeast corner
of Block 9, in the original plat of Prior Lake; thence South 74 degrees 41 minutes 00 seconds
East, along the North line of said original plat of Prior Lake a distance of 69.7 feet to the center
line of Old Trunk Highway No. 13; thence Northeasterly along said center line to a point said
being North 48 degrees 48 minutes 00 second East and distance 515.7 feet from the previous
described point; thence North 59 degrees 57 minutes 48 seconds West a distance of 355.83 feet;
thence West to the West line of said Northeast Quarter of the Northeast Quarter; thence South
along said West line to the North line of said Block 9; thence South 74 degrees 41 minutes 00
seconds East along said North line to the point of beginning.
70467
11
. ,.,. ....~.~-_.._-"._...._'-'~~._--_._'---_.-....__..._.."~" -
70467
EXIIIBIT B
to
REAL ESTATE PURCHASE AGREEMENT
(Well Disclosure)
12
EXHIBIT "C"
to
REAL ESTATE PURCHASE AGREEMENT
AGREEMENT
TillS AGREEMENT (the" Agreenient") made and entered into this day
of
, 1999, by and between the CITY OF PRIOR LAKE, a
Minnesota municipal corporation, with offices at 16200 Eagle Creek Avenue SE, Prior
Lake, Minnesota 55372-1714 (referred to herein as the "City"), and JOHN AND MEDA
KOP, husband and wife, whose address is 1600 Main Avenue S.E., Prior Lake,
Minnesota 55372 (the "Kops").
IN CONSIDERATION of the mutual covenants and agreements herein, it is
hereby mutually agreed by the parties as follows:
1. Description of Property. The property is located in Prior Lake, Scott
County, State of Minnesota, and is legally described on Exhibit A-I attached hereto and
incorporated herein (" Property") .
Also known as 1600 Main Avenue S. E., Prior Lake, Minnesota 55372.
2. Use of Property. The Kops, or either of them, shall have the right to
continue to use the Property as their primary place of residence during the term of this
Agreement. The right to use the Property shall be consistent with the Kops' use of the
Property upon execution of this Agreement and no expansion of the use of the Property
by the Kops is permitted.
The Kops' use of the property is subject to the City's right to improve and use the
Property for roadway, prairie/wetland restoration/mitigation, recreational/park and
athletic field purposes consistent with the 1996 Lakefront Park Master Plan ("Plan"), or
70467
13
.,
I
other reasonable modifications to the Plan that do not unreasonably interfere with the
Kops' use of the Property as their . primary residence (hereinafter referred to as "City-
Improved Property"). The remainder of the Property is intended for the Kops private use
and is not intended for use by the City or the public. The Kops may erect fences and
signs to protect their privacy, provided the location of the fences and signs, and content
of the signs is approved by the City.
3. Term of this Agreement. This Agreement shall commence upon the date
of closing on the Purchase Agreement between the City and the Kops to which this
Agreement is attached as an Exhibit and shall continue during the Kops' lifetime,
provided that this Agreement shall immediately terminate if the Kops move from the
Property.
4. Quiet Enjoyment. If the Kops comply with all other terms of this
Agreement, the Kops may use the Property for the term of this Agreement subject to the
City's rights to improve and use the Property as provided under Paragraphs 2 and 5. The
Kops promise that their use of the Property will only be for their own residential and
farming purposes.
5. Right of Entry. The City and the City's agents may enter the Property at
reasonable hours to inspect the Property and perform any work that the City decides is
necessary. The City and the public shall have the right to enter the portions of the City-
Improved Property, subject to the provisions under Paragraph 2.
6. Assignment and Subletting. The Kops may not i) assign this Agreement
or any rights hereunder, ii) lease the Property to anyone else, or iii) permit any other
70467
14
person to use the Property except as provided under this Agreement. The Kops' failure
to abide by the terms of this section shall be grounds for termination of this Agree"ment
by the City. Any assignment, sublease, or use of the Property made without the City's
written consent will not be effective.
7. Surrender of Property. The Kops shall give the City possession of the
Property when this Agreement ends or otherwise terminates. Upon termination of this
Agreement, the Kops, their heirs, representatives or assigns may remove personal
property from the house and outbuildings. Any personal property remaining on the
Property sixty (60) days after termination of this Agreement shall belong to the City.
8. Default. If the Kops violate any provision of this Agreement, the City may
take possession of the Property. If the Kops do not move out, the City may bring. an
eviction action.
If the Kops violate a term of this Agreement and the City does not terminate this
Agreement or evict the Kops, the City may still terminate this Agreement and evict the
Kops for any other violation of this Agreement. The Kops agree that they will not use
or permit others to use the Property in violation of any local, state, or federal law , rule
or regulation.
9. Acceptance of Property. The Kops have resided on the Property for
several years. The Kops acknowledge that they have inspected the Property and accept
the Property in its present condition. The Kops further acknowledge that no
representations as to the repair of the Property or promises to alter, remodel or improve
the Property have been made by the City except as provided under this Agreement.
70467
15
~-T
10. Utility Service. The Kops shall pay all charges for gas, electricity and
other utilities, including sewer and water charges, used in or furnished to the Property.
The City shall not be liable in damages or otherwise for failure to furnish such services
where failure or interruption is due to causes beyond the City's reasonable control.
11. Maintenance of Property. The Kops shall be solely responsible for the
maintenance and repair in good working order and condition of the entire Property,
except for the City-Improved Property. The Kops shall maintain, at their own expense,
the Property and the equipment in, upon, serving or appurtenant to said Property in good
working order and condition during the term of this Agreement.
The Kops shall at all times keep and maintain the Property in a neat, clean and
sanitary condition, free from waste or debris, and shall remove, at their expense, garbage
and refuse of any kind and shall neither permit nor commit any waste or nuisance
thereon.
12. Insurance. The Kops covenant that at their own cost and expense they will
purchase and continue in force, in the names of the Kops and the City, general liability
insurance against any and all claims for injuries to persons or damage to property
occurring in, upon or about the Property during the term of this Agreement, or any
renewal thereof, such insurance to be in an amount not less than Two Hundred Thousand
and No/100 Dollars ($200,000.00) for injuries to persons in one accident, not less than
Two Hundred Thousand and N 0/100 Dollars ($200,000.00) for injury to anyone person,
and not less than Two Hundred Thousand and No/IOO Dollars ($200,000.00) for damage
to property. Such insurance shall be written by a company or companies authorized to
70467
16
engage in the business of general liability insurance in the State of Minnesota, and there
shall be delivered to the City the customary certificates evidencing such pa1d-up
insurance, which certificates are to be issued by the insurance companies and which
certificates shall further provide that such general liability insurance may not be cancelled
unless the City is notified in writing ten (10) days prior to any such proposed
cancellation.
13. Indemnification. The Kops shall indemnify and save harmless the City
against all liabilities, damages, claims, fines, penalties, costs and other expenses,
including all attorneys' fees, which may be imposed upon, incurred by or asserted against
the City by reason of all of the following: (a) any use or condition of the Property or any
part thereof, except for City-Improved Property, used by or created by the Kops; (b) any
personal injury or property damage occurring on the Property, except for the portions of
the City-Improved Property; (c) any negligence on the part of the Kops, their agents,
contractors, licensees or invitees; (d) any failure to comply with any requirement of any
governmental authority; ( e) any prosecution or defense of any suit or other proceeding
in discharging the Property or any part thereof from any liens, judgments or encumbranc-
es created by the Kops; (f) any proceedings in obtaining possession of the Property after
the termination of this Agreement by forfeiture or otherwise; (g) any litigation
commenced by or against the Kops to which the City is made a party without any fault
on the part of the City; (h) any response costs, other damages and expenses (including
attorneys' fees) which may be imposed upon, incurred by or asserted against the City by
reason of the use, release, threatened release or disposal of Hazardous Wastes (as defined
70467
17
herein) at the Property, except for the portions of the City-Improved Property; and (i) any
failure on the part of Kops to perform or comply with any covenant or agreement
required to be performed or complied with by the Kops hereunder.
14. Abandoned Personal Property. When the City recovers possession of the
Property, any personal property not removed by the Kops, their representatives, heirs or
assigns within sixty (60) days, may be considered by the City to have been abandoned.
The City may then dispose of the personal property in the manner that the City thinks is
proper. The City shall not be liable to the Kops, their representatives, heirs or assigns
for disposing of the personal property.
CITY OF PRIOR LAKE
By:
Wesley M. Mader, Mayor
And
Frank Boyles, City Manager
~' r;~
( ~ I'
John Kop! . =:>
"JJ:lliw ~' , J
Meda Kop . t
STATE OF MINNESOTA )
) ss.
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this day of
, 1999, by Wesley M. Mader and Frank Boyles, respectively the Mayor
and City Manager of the CITY OF PRIOR LAKE, a Minnesota municipal corporation,
70467
18
on behalf of the corporation and pursuant to the authority granted by its City Council.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this
, 1999, by John Kop and Meda Kop, husband and wife.
day of
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
Attorneys at Law
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, MN 55121
Telephone: (612) 452-5000
70467
19
EXHIBIT" A-I"
Legal Description of Property:
That part of the Southeast Quarter of the Southeast Quarter of Section 35, Township 115,
Range 22, Scott County, Minnesota described as:
Beginning at the Southeast corner of said Section 35; thence Westerly along the Southerly
line of said Section 35, a distance of 1449.00 feet; thence Northerly and parallel with the
Easterly line of said Section 35 a distance of 462.00 feet; thence Easterly and parallel
with the southerly line of said Section 35 a distance of 1449.00 feet to the Easterly line
of said Section 35; thence Southerly along said Easterly line a distance of 462.00 feet to
the point of beginning. Which lies northwesterly of State Trunk Highway No. 13, as
monumented.
And
That part of the Northeast Quarter of the Northeast Quarter of Section 2, Township 114,
Range 22, Scott County, Minnesota which lies westerly of State Trunk Highway No. 13,
as monumented, and which lies westerly of the centerline of Old Trunk Highway 13 and
lying northerly of the following described parcel:
All that part of the Northeast Quarter of the Northeast Quarter of Section 2, Township
114, Range 22, Scott County, Minnesota as described as follows: Beginning at the
Northeast corner of Block 9, in the original plat of Prior Lake; thence South 74 degrees
41 minutes 00 seconds East, along the North line of said original plat of Prior Lake a
distance of 69.7 feet to the center line of Old Trunk Highway No. 13; thence
Northeasterly along said center line to a point said being North 48 degrees 48 minutes 00
second East and distance 515.7 feet from the previous described point; thence North 59
degrees 57 minutes 48 seconds West a distance of 355.83 feet; thence West to the West
line of said Northeast Quarter of the Northeast Quarter; thence South along said West line
to the North line of said Block 9; thence South 74 degrees 41 minutes 00 seconds East
along said North line to the point of beginning.
70467
20
1099-S -- PROCEEDS FROM REAL ESTATE TRANSACTIONS
FILER: CAMPBELL KNUTSON, Professional Association
1380 Corporate Center Curve, Suite 317
Eagan, MN 55121-1200
FED ID# 41-1562130
TRANSFEROR'S NAME(S):
ADDRESS:
SSN#
(IF HUSBAND AND WIFE--ONL Y 1 SSN NEEDED)
IF COMPANY -- FEDERAL TAX ID#
1. DATE OF CLOSING: / /
2. GROSS PROCEEDS $
3. LEGAL DESCRIPTION:
4. TRANSFEROR RECEIVED OR WILL RECEIVE PROPERTY OR SERVICES
AS PART OF THE CONSIDERATION?
5. BUYER'S PART OF REAL ESTATE TAX - $
70467 21