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HomeMy WebLinkAbout10G - Easements for Ring Road CITY COUNCIL AGENDA REPORT ~') MEETING DATE: March 17, 2003 AGENDA #: 10G PREPARED BY: Frank Boyles, City Manag AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING ACQUISITION OF PARCELS A AND B FROM WELLS FARGO FOR THE RING ROAD AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE ALL DOCUMENTS TO EFFECTUATE THE PURCHASE. DISCUSSION: History: The City's Capital Improvement Program has long called for the construction of a frontage road from Franklin Trail to CSAH 23 / 170TM Street to improve access to the commercial / retail properties in this area. The first segment of the road was construction through the Park Nicollet property in conjunction with the Keystone project. Plans and specifications have now been completed for Phases II and III ofthe road which will complete construction from the Park Nicollet property to CSAH 23 / 170th Street. The staff has been in the process of acquiring the right-of-way needed to complete the roadway. We have been successful in acquiring a portion of the Borka property, and have acquired the Thrift Store parcel. The Council recently authorized condemnation of all remaining properties. The staff has nonetheless continued to negotiate the acquisition of the required properties. Current Circumstances: Wells Fargo Bank owns two parcels. For each parcel, the City requires both a permanent easement and temporary easement for construction purposes. We have identified the amount of land required permanently and temporarily for each based upon the construction plans. Parcel A: We have agreed to purchase a permanent easement on Parcel A for $74,850. Of this amount, $4850 is attributable to severance damages, and $3984 attributable to temporary construction easement. Parcel B: The City has offered $40,667 for this parcel of which $265 is for temporary easement. The total purchase amount of Parcels A and B is $115,517. Attached is a purchase and easement agreement prepared by the City Attorney's office for these parcels. ISSUES: The value of the permanent easement is in accordance with our appraisal price. This is important as it will establish a value for the remaining parcels. This purchase is also important as it is one less which will require additional court costs and time. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 h\COUNCIL~,GNRPTS~2003\PARCELS 3 & In the case of Parcel B, the owner of Priordale Mall has an easement over the parcel for access purposes. The Court will determine the value of that easement. ALTERNATIVES: (1) Approve Resolution 03-XX Authorizing the Acquisition of Parcels A and B from Wells Fargo at a cost not to exceed $115,517 and authorizing the Mayor and City Manager to execute the pre-requisite documents. (2) Take no action. RECOMMENDED MOTION: Alternative (1). h\COUNCIL~AGNRPTS\2003\PARCELS 3 & 4 OF RING ROAD.DOC RESOLUTION 03-XX RESOLUTION AUTHORIZING ACQUISITION APPROVING ACQUISITION OF PARCELS A AND B FROM WELLS FARGO FOR ROADWAY PURPOSES, AND AUTHORIZING THE MAYOR AND CITY MANAGER EXECUTE ALL DOCUMENTS TO EFFECTUATE THE PURCHASE. MOTION BY: SECOND BY: Whereas, pursuant to Resolution 03-13, the City Council accepted the Feasibility Report and setting a public hearing on the CSAH 23 / Five Hawks / TH13 / 170th Street / Tower Street (Ring Road Phase 3) Improvement Project (City Project #02-06); and Whereas, the City Council has previously determined that permanent and temporary easements across the property commonly knoWn as the Wells Fargo Bank site (the legal descriptions of which are attached hereto), are necessary for public purpose for the construction of the roadway improvements; and Whereas, on February 3, 2003, the City Council initiated a condemnation action for the necessary property interests by Resolution 03-18; and Whereas, prior to completing the condemnation action, staff and property owner have successfully negotiated terms for the purchase of said easement interests. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA, 1. The recitals set forth above are incorporated herein. 2. The acquisition of the property is hereby approved, and funds for this purchase shall be drawn from the Collector Street Fund in an amount not to exceed $115,517. 3. The Mayor and City Manager are hereby authorized to execute all necessary documents to effectuate the closing of the transaction. 4. Upon final closing of the transaction, the City Attorney is hereby authorized to remove said parcels from the condemnation action. Passed and adopted this 17th day of March, 2003. YES NO Haugen Haugen Blomberg Blomberg LeMair LeMair Petersen Petersen Zieska Absent Zieska Absent Frank Boyles, City Manager Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER PURCHASE AGREEMENT THIS PURCHASE AGREEMENT (this "Agreement") is made effective as of March __, 2003, by and between the City of Prior Lake, a Minnesota municipal corporation, with offices at 16200 Eagle Creek Avenue SE, Prior Lake, Minnesota ("Buyer"), and Wells Fargo Bank Minnesota, N.A., a national banking association, whose address is cio Wells Fargo Properties, Inc., MAC N9305-19B, Wells Fargo Center, Sixth & Marquette, 19th Floor, Minneapolis, Minnesota 55479 ("Seller"). IN CONSIDERATION of the promises and covenants contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Seller and Buyer agree as follows: 1. Sale of Property. Seller agrees to sell to Buyer, and Buyer agrees to buy from Seller the real property located in Prior Lake, Minnesota, and legally described in the attached Exhibit A, together with all improvements, easements and rights benefiting or appurtenant thereto (collectively referred to as the "Property" and sometimes hereinafter referred to as "Parcel A" and "Parcel B"). 2. Purchase Price and Manner of Payment. The total purchase price (the "Purchase Price") to be paid by Buyer to Seller for Parcel A and Parcel B shall be One Hundred Fifteen Thousand Five Hundred Seventeen and 00/100 Dollars ($115,517.00) allocated as follows: a. For Parcel A: Seventy Four Thousand Eight Hundred Fifty and 00/100 Dollars ($74,850.00), of which Four Thousand Eight Hundred Fifty Dollars ($4,850.00) is attributable to severance damages and Three Thousand, Nine Hundred Eighty Four and 00/100 Dollars ($3,984.00) is attributable to the rights granted to Seller under that certain Right-of-Entry / Waiver of Trespass Agreement to be entered into by and between Seller and Buyer in connection with Parcel A (the "Parcel A Construction Easement Agreement"), and as further described under Section 4(a)(vi) below; and b. For Parcel B: Forty-Thousand Six Hundred and Sixty-Seven and 00/100 Dollars ($40,667.00), of which Two Hundred Sixty Five and 00/100 Dollars ($265.00) is attributable to the rights granted to Seller under that certain Right-of-Entry / Waiver of Trespass Agreement to be entered into by and between Seller and Buyer in connection with Parcel B (the "Parcel B Construction Easement Agreement"), and as further described under Section 4(a)(vi) below. DN: 179265 Ver: 2 CM: 20245.0002 c. The Purchase Price shall be payable in the following manner: (i) $5,000.00 as earnest money (the "Earnest Money") which shall be deposited with such title insurance company as may be designated by Buyer (the "Title Company" ). (ii) The balance in cash or by wire transfer on the Date of Closing (as defined in Paragraph 4 of this Agreement). 3. Acceptance Deadline. The offer to purchase contained in this Agreement (the "Offer") shall be revoked and shall be null and void on Tuesday, March 18, 2003 at 11:59 p.m. (the "Acceptance Deadline"), unless Buyer and Seller has accepted the Offer by the Acceptance Deadline. In order to constitute acceptance of the Offer, Seller and Buyer must execute this Agreement and provide a copy of the fully executed Agreement to Buyer in the manner provided for giving notices specified in Paragraph 17 of this Agreement. 4. Closincj and Possession. The closing of the purchase and sale contemplated by this Agreement (the "Closing") shall be on or before April 17, 2003, or such other date as may be mutually agreed to by the parties (the "Date of Closing" or "Closing Date"). The Closing shall take place at the offices of the Title Company or at such other place as may be agreed to by the parties. The parties shall deliver the following documents at Closing: a. Seller's Closinq Documents. On the Closing Date, Seller shall execute and deliver to Buyer the following (collectively, "Seller's Closing Documents"): i. Warranty Deed. The Warranty Deed, free and clear of all encumbrances, liens, covenants, conditions, easements, restrictions, reservations, and assessments, except as shown in the attached Exhibit B (the "Permitted Encumbrances"). Seller must comply with all necessary requirements in order to perfect the conveyance of the property, including but not limited to lot split requirements of the City of Prior Lake and/or Scott County. ii. Seller's Affidavit. An Affidavit of Title by Seller indicating that on the Closing Date there are no outstanding, unsatisfied judgments, tax liens or bankruptcies against or involving Seller or the Property; that there has been no skill, labor or material furnished to the Property for which payment has not been made or for which mechanic's liens could be filed; and that there are no other unrecorded interests in the Property. DN: 179265 Ver: 2 2 CM: 20245.0002 iii. FIRPTA Affidavit. A non-foreign affidavit, properly executed and in recordable form, containing such information as is required by IRC Section 1445(b) (2) and its regulations. iv. Abstract of Title. The Abstract of Title to the property adjacent to the Property and owned by Seller must be provided in order for the Title Company to prepare a stub abstract for the Property to be purchased at Buyer's sole cost and discretion. v. Well Certificate. If there is a well located on the Property, a Well Disclosure Certificate signed by Seller in the form required by law. vi. Construction Easement Aqreements. Seller must execute the Parcel A Construction Easement Agreement and Parcel B Construction Easement Agreement, both in the forms attached hereto as Exhibit C and Exhibit D, respectively, which allow Buyer to enter upon the property, legally described in Exhibits "B" of said Construction Easement Agreements, for the construction of that certain Ring Road located in the City of Prior Lake, Minnesota and to perform certain related improvements to the Property. vii. Title Documents. Seller will provide all other documents necessary as determined by the Title Company in order to provide clear and marketable title to Buyer, including but not limited to a Warranty Deed to Seller from Buyer, or such other person or entity that holds the fee title to the Property, free and clear of all encumbrances, liens, covenants, conditions, easements, restrictions, reservations and assessments, except the Permitted Encumbrances. Costs and recording fees for said documents will be borne by Seller. b. Buyer's Closinq Documents. On the Closing Date, Buyer will execute and deliver to Seller the following (collectively, "Buyer's Closing Documents"): i. Purchase Price. The sum of One Hundred Ten Thousand Five Hundred Seventeen and 00/100 Dollars ($110,517.00) and 00/100 Dollars ($110,517.00). ii. Title Documents. Such Affidavits of Purchaser, Certificates of Value or other documents as may be reasonably required in order to record Seller's Closing Documents. 5. Possession of Pror)ert¥. Seller shall vacate the Property as of the Closing Date. DN: 179265 Ver: 2 3 CM: 20245.0002 6. Prorations. Seller and Buyer agree to the following allocations of costs regarding this Agreement. a. Seller's Closinq Costs. Seller shall pay (i) the cost of obtaining and recording any documents necessary to make title to the Property marketable as provided in this Agreement; and (ii) the cost of the title insurance commitment as provided in this Agreement, (iii) the cost of preparing Seller's Closing Documents, (iv) any other cost or expenses allocated to Seller under this Agreement. b. Buyer's Closinq Costs. Buyer shall pay (i) the cost of preparing Buyer's Closing Documents, (ii) the total closing fee charged by the Title Company, (iii) the premium for any title insurance policy purchased by Buyer, and (iv) any other cost or expense allocated to Buyer under this Agreement. c. Real Estate Taxes and Special Assessments. i. General real estate taxes payable in 2002 and all prior years, plus penalties and interest, if any, shall be paid by Seller. Real estate taxes payable in 2003 shall be prorated between Buyer and Seller as of the Closing Date. ii. Buyer shall pay all special assessments levied, pending, or constituting a lien against the Property as of the Closing Date, if any, including without limitation any installments of special assessments (including interest) payable with general real estate taxes in 2003 (the "Special Assessments" ). d. Miscellaneous. i. In addition to those costs and expenses allocated to and/or to be paid or assumed by Seller pursuant to this Agreement, Seller agrees to pay any other closing costs and expenses customarily paid by sellers and Buyer agrees to pay any other closing costs and expenses customarily paid by buyers. ii. Seller hereby indemnifies Buyer for any claim, cost, or damage related to any brokerage fee due because of this Agreement. iii. All rents and interest, and all charges for city water, city sewer, natural gas, fuel oil, liquid petroleum gas, electricity, garbage removal, and other operating costs, if any, shall be prorated between the parties as of the Date of Closing. DN: 179265 Ver: 2 ,~ CM: 20245.0002 7. Title Evidence. As soon as reasonably possible but no later than ten (10) days after the date of this Agreement, Seller shall, at Seller's sole cost and expense, deliver the following to Buyer (collectively, the "Title Evidence" ): a. A commitment by the Title Company to issue an ALTA Form B 1990 Owner's Policy of Title Insurance, in an amount equal to the Purchase Price, to insure Buyer's title to the Property (the "Title Commitment"), including copies of documents referenced in Schedule B thereof. The Title Commitment shall have an effective date of no earlier than the date of this Agreement. The Title Commitment shall include affirmative coverages for appurtenant easements, if any. The Title Commitment shall obligate the Title Company to delete standard exceptions from the Title Commitment and the policy upon the Title Company's receipt of a satisfactory survey of the Property, a seller's affidavit in the form described in Paragraph 4a(ii) and any documentation described in Paragraph 4b(ii). b. Within ten (10) days of the date of this Agreement, Seller shall deliver to Buyer a copy of any survey of the Property in Seller's Possession. Buyer may, at Buyer's sole cost and expense, have a current survey of the Property prepared by a surveyor registered under the laws of State of Minnesota. Such survey shall be certified to Buyer and the Title Company, and the certification language shall be reasonably acceptable to Buyer (the "Survey"). The Survey shall meet the 1999 Minimum Standard Detail Requirements for ALTA/ACSM Title Surveys. 8. Title Examination, Title Corrections and Remedies. Within ten (10) business days of Buyer's receipt of the Title Evidence, Buyer shall deliver written objections thereto to Seller (the "Objections"). If Buyer makes any such Objections to title pursuant to this paragraph, Seller shall have the right, but not the obligation, to cure any such Objection. Seller shall provide Buyer with notice within ten (10) days of Seller's receipt of any such Objection stating whether it intends to cure any such objection. If Seller elects to cure any such objection, Seller shall have the right to delay the closing by up to thirty (30) days. If Seller elects not to or fails to cure any such Objection within said thirty (30) day period, Buyer shall have the option to: i. Rescind this Agreement by notice as provided herein, in which case the Agreement shall be null and void and the Earnest Money shall be refunded to Buyer; or ii. Waive the Objection and proceed to closing with a credit adjustment to the Purchase Price in the amount of Buyer's cost to cure such Objection. Upon correction of title or waiver of the DN: 179265 Ver: 2 5 CM: 20245.0002 specified Objections by Buyer, Closing shall be held on the later of the Date of Closing (as defined in Paragraph 4) otherwise established pursuant to this Agreement or the date occurring ten (10) days after the date title Objections are cured or waived. 9. Inspections. Buyer may perform such inspections of the Property as Buyer, in Buyer's sole discretion, deems appropriate (the "Inspections"). The Inspections shall be done at Buyer's sole cost and expense. Buyer and Buyer's agents shall have the right, upon reasonable advance notice to Seller, to go upon the Property to perform the Inspections. 10. Representations and Warranties by Seller. Seller makes the following representations to Buyer as of the date of this Agreement and as of the Date of Closing: a. Authority. Seller represents and warrants to Buyer that Seller has the requisite power and authority to enter into this Agreement and Seller's Closing Documents to be signed by Seller; that the execution, delivery and performance by Seller of such documents do not conflict with or result in violation of any judgment, order, or decree of any court or arbiter to which Seller is a party; and such documents are valid and binding obligations of Seller, and are enforceable in accordance with their terms. b. Title to Property. Seller owns or will own on the Closing Date, the Property free and clear of all encumbrances, liens, covenants, conditions, easements, restrictions, reservations, and assessments, except the Permitted Encumbrances. c. Assessments. Seller has received no notice of actual or threatened special assessments or reassessments of the Property, other than those potential assessments from the construction of the Ring Road. d. Environmental Laws. To the best of Seller's knowledge, no toxic or hazardous substances or wastes, pollutants or contaminants (including, without limitation, asbestos, urea formaldehyde, the group of organic compounds known as polychlorinated biphenyls, petroleum products including gasoline, fuel oil, crude oil and various constituents of such products, and any hazardous substance 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 of, or otherwise placed, deposited in or located on the Property, nor has any activity been undertaken on the Property that would cause or contribute to (i) the Property becoming a treatment, storage or disposal facility within the meaning of, or otherwise bring the Property within the ambit of, the Resource Conservation and Recovery Act of 1976 ("RCRA"), 42 U.S.C. §6901 et. seq., or any similar DN: 179265 Ver: 2 (~ CM: 20245.0002 state law or local ordinance, (ii) a release or threatened release of toxic or hazardous wastes or substances, pollutants or contaminants, 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 (iii) the discharge or pollutants or effluents into any water source or system, the dredging or filling of any waters or the discharge into the air of any emissions, that would require a permit under the Federal Water Pollution Control Act, 33 U.S.C. §1251 et. seq., or the Clean Air Act, 42 U.S.C. §7401 et. seq., or any similar state law or local ordinance, except as disclosed in the reports of Agassiz Environmental Systems and Midwest Analytical Services. To the best of Seller's knowledge, there are no substances or conditions in or on the Property that 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, including without limitation, the Minnesota Environmental Response and Liability Act, Minn. Stat. § 115B (" MERLA") and the Minnesota Petroleum Tank Release Cleanup Act, Minn. Stat. §115C, except as disclosed in the reports of Agassiz Environmental Systems and Midwest Analytical Services. e. Rights of Others to Purchase Property. There are no unrecorded mortgages, contracts, purchase agreements, options, rights of first refusal, leases, easements or other agreements or interests relating to the Property and there are no persons in possession of any portion of the Property, except as may be disclosed by the Title Evidence; f. Seller's Defaults. Seller is not in default in the performance of any of Seller's obligations or liabilities under any easement agreement, covenant, condition, restriction or other instrument relating to the Property. g. FIRPTA. Seller is not a "foreign person," "foreign partnership," "foreign trust," or "foreign estate" as those terms are defined in Section 1445 of the Internal Revenue Code. h. Proceedings. There is no action, litigation, investigation, condemnation or proceeding of any kind pending or, to the best knowledge of Seller, threatened against Seller or the Property. i. Wells. Seller certifies that Seller does not know of any "Wells" on the described Property within the meaning of Minn. Stat. §1031. This representation is intended to satisfy the requirements of that statute. j. Private Sewer Systems. Seller certifies that Seller does not know of any private sewer system on or serving the Property, nor have any been installed or removed during Seller's ownership of the Property. DN: 179265 Ver: CM: 20245.0002 k. Compliance. To the best of Seller's knowledge, the Property fully conforms with all applicable statutes, laws, codes, ordinances and restrictions including all zoning, platting, subdivision and use laws and all building, energy and environmental codes and regulations. To the best of Seller's knowledge, all improvements are located entirely within the boundary lines of the Property and do not encroach upon any adjacent property and no improvements on any adjacent property encroach upon the Property. I. Access. To the best of Seller's knowledge, the Property abuts on and has direct vehicular access to a public road or has driveway access to public roads by permanent, irrevocable easements which will be conveyed to Buyer on the date of closing, and Seller has no knowledge of any fact or condition which would result in the termination of such access. m. Utilities. Seller has received no notice of actual or threatened reduction or curtailment of any utility service now supplied to the Property. To the best knowledge of Seller, all utility lines reach the boundaries of the Property through public rights-of-way or valid private easements, the interest of Seller in which shall be assigned by Seller to Buyer on the Closing Date. n. Storage Tanks. To the best knowledge of Seller, no storage tanks are located under, in, or about the Property, and no storage tanks have been located under, in, or about the Property and subsequently been removed or filled. Seller will indemnify Buyer, and Buyer's successors and assigns, against, and will hold Buyer, and Buyer's successors and assigns, harmless from, any expenses or damages, including reasonable attorney's fees, that Buyer incurs because of the breach of any of the above representations and warranties, whether such breach is discovered before or after Closing. Consummation of this Agreement by Buyer with knowledge of any such breach by Seller will not constitute a waiver or release by Buyer of any claims due to such breach. Each of the representations and warranties set forth above shall survive the Closing. Buyer agrees to accept the Property in "as is" condition, except as may be provided elsewhere in this Agreement. 11. Representations and Warranties of Buyer. Buyer represents and warrants to Seller that Buyer is a duly organized municipal corporation under the laws of the State of Minnesota; that Buyer is duly qualified to transact business in the State of Minnesota; that Buyer has the requisite power and authority to enter into this Agreement and Buyer's Closing Documents to be signed by Buyer; such documents DN: 179265 Ver: 2 8 CM: 20245.0002 have been, or will have been by the Date of Closing, duly authorized by all necessary action on the part of Buyer and have been duly executed and delivered; that the execution, delivery and performance by Buyer of such documents do not conflict with or result in violation of Buyer's governing documents or any judgment, order, or decree of any court or arbiter to which Buyer is a party; and such documents are the valid and binding obligations of Buyer and enforceable in accordance with their terms. Buyer will indemnify Seller, and Seller's successors and assigns, against, and will hold Seller, and Seller's successors and assigns, harmless from, any expenses or damages, including reasonable attorney's fees, that Seller incurs because of the breach of any of the above representations and warranties, whether such breach is discovered before or after Closing. Consummation of this Agreement by Seller with knowledge of any such breach by Buyer will not constitute a waiver or release by Seller of any claims due to such breach. Each of the representations and warranties set forth above shall survive the Closing. 12. Buyer's Contingencies. The obligations of Buyer under this Agreement are contingent upon each of the following: a. Representations and Warranties. The representations and warranties of Seller contained in this Agreement shall be true at the time this Agreement is executed and on the Closing Date as if made on the Closing Date. b. Title. Title shall have been found acceptable, or been made acceptable, in accordance with the requirements and terms of this Agreement. c. Performance of Seller's Obliqations. Seller shall have performed all of the obligations required to be performed by Seller under this Agreement, as and when required by this Agreement. d. Survey. Buyer shall be satisfied, in Buyer's sole discretion, with the Survey. e. Inspections. The results of any Inspections shall be satisfactory to Buyer, in Buyer's sole discretion. Unless each of the above contingencies is satisfied, removed, or waived by Buyer one day before the Date of Closing, Buyer shall have the right to cancel this Agreement by giving Seller written notification of Buyer's election to so cancel. Upon delivery of such written notification, this Agreement shall be null and void, and Seller and Buyer agree to execute a cancellation of this Agreement. 13. Operation Prior to Closing. During the time period between the date of this Agreement and the Closing Date (the "Executory Period"), Seller shall operate and DN: 179265 Ver: 2 ~) CM: 20245.0002 maintain the Property in the ordinary course of business in accordance with prudent and reasonable business standards. Seller shall execute no contracts, leases, or other agreements regarding the Property during the Executory Period which extend beyond the Closing Date without the prior written consent of Buyer, which consent may be withheld by Buyer, in Buyer's sole discretion. 14. Brokers. Buyer is not represented by any broker. Seller shall bear the responsibility for any brokerage fee on its behalf. 15. Survival. All of the terms, conditions, representations, warranties, and indemnifications contained in this Agreement shall survive and be enforceable after the Closing. 16. Notices. Any notice required or permitted to be given by either party upon the other is given in accordance with this Agreement if notice is directed to Seller by delivering notice personally to any one of the undersigned of sellers; or if notice is directed to Buyer, by delivering notice personally to any one of the undersigned buyers; or if mailed in a sealed wrapper, properly addressed, by United States registered or certified mail, return receipt requested, postage prepaid; or if transmitted by facsimile, copy followed by mailed notice as above required; or if deposited cost paid with a nationally recognized, reputable overnight courier, properly addressed as follows: If to Seller: Wells Fargo Bank Minnesota, N.A. c/o Wells Fargo Properties, Inc. MAC N9305-19B Wells Fargo Center Sixth & Marquette, 19th Floor Minneapolis, Minnesota 55479 Attention: Mr. Harold P. Richey If to Buyer: City of Prior Lake 16200 Eagle Creek Avenue SE Prior Lake, MN 55372 Attn: Frank Boyles, City Manager with a copy to: Suesan L. Pace, Esq., City Attorney for City of Prior Lake HALLELAND, LEWIS, NILAN SIPKINS & JOHNSON 600 Pillsbury Center South 220 South Sixth Street, Suite 600 Minneapolis, MN 55402-4501 Notices shall be deemed effective on the earlier of the date of receipt or the date of deposit as aforesaid; provided, however, that if notice is given by deposit, that the time for response to any notice by the other party shall commence to run one (1) business DN: 179265 Ver: 2 'I 0 CM: 20245.0002 day after any such deposit. Any party may change its address for the service of notice by giving written notice of such change to the other party, in any manner above specified, ten (10) days prior to the effective date of such change. 17. Miscellaneous Governing Provisions. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legatees, representatives, successors, and assigns. This Agreement shall be construed and interpreted in accordance with the laws of the State of Minnesota. No failure on the part of a party to this Agreement to exercise, and no delay in exercising, any rights contained in the Agreement shall operate as a waiver of such rights, nor shall any single or partiaI exercise of any rights hereunder preclude any other or further exercise of such rights or the exercise of any other right. The remedies provided in this Agreement are cumulative and not exclusive of any other remedy provided by law or equity. All terms and words used in this Agreement shall be construed to include any other number and any other gender as the context or sense of this Agreement or of any paragraph of this Agreement may require as if such terms or words had been fully and properly written in the appropriate number and gender. Any exhibits to this Agreement are a part of this Agreement. Captions are provided for convenience and ease of reference only and do not affect or modify the terms of any of the provisions of this Agreement. All of the provisions of this Agreement are separable, so if any provision of this Agreement is held to be ineffective by a court of competent jurisdiction, the remaining provisions of this Agreement shall remain in full force and effect unless the invalidated provision is so fundamental to this Agreement that the remaining provisions do not reflect the parties' intent. This Agreement contains the entire agreement of the parties with respect to the subject matter of this Agreement and supersedes any and all prior Agreements and understanding between the parties with respect to the same. The terms of this Agreement have been cooperatively negotiated by and among the parties hereto, and this Agreement shall not be construed against any party hereto as its author. This Agreement may be modified only by a written instrument executed by both parties. There are no third party beneficiaries of this Agreement, intended or otherwise. Time is of the essence for each and every term of this Agreement. This Agreement may be executed in counterparts and, upon execution, each counterpart shall be considered an original. IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement as of the date first written above. SELLER: BUYER: WELLS FARGO BANK MINNESOTA, N.A. CITY OF PRIOR LAKE By Wells Fargo Properties, Inc., agent for Wells Fargo Bank Minnesota, N.A. By: Jack G. Haugen, Mayor By: DN: 179265 Ver: 2 1 '1 CM: 20245.0002 Harold P. Richey By: Its: Senior Vice President Frank Boyles, City Manager DN: 179265 Ver: 2 CM: 20245.0002 EXHIBIT A Parcel A Lot 1, Block 1, Brooksville Center 2nd Addition, according to said plat on file and of record in the Office of the County Recorder, Scott County, Minnesota. Which lies within the following permanent easement for street, utility and drainage purposes: That part of Lot 1, Block 1, Brooksville Center 2n~ Addition, according to said plat on file and of record in the office of the County Recorder, Scott County, Minnesota, which lies Southerly and Westerly of the following described line: Commencing at the Southeast corner of said Lot 1; thence North 11 degrees 28 minutes, 19 seconds West, assumed bearing along the East line of said Lot 1, a distance of 83.60 feet to the point of beginning of said line to be hereinafter described; thence North 89 degrees 23 minutes 14 seconds West a distance of 24.03 feet; thence Westerly a distance of 80.70 feet along a tangential curve concave to the South having a radius of 224.00 feet and a central angle of 20 degrees 38 minutes 31 seconds; thence North 21 degrees 15 minutes 20 seconds West, not tangent to the last described curve, a distance of 45.73 feet to the Westerly line of said Lot 1 and the said line there terminating. DN: 179265 Ver: 2 EXHIBIT A, Page 1 CM: 20245.0002 EXHIBIT A (continued) Parcel B That part of the West Half of the Southeast Quarter and that part of the East Half of the Southwest Quarter of Section 2, Township 114, Range 22, Scott County, Minnesota described as follows: Beginning at the southeast corner of Lot 1, Block 1, BROOKSVILLE CENTER 2ND ADDITION, Scott County, Minnesota; thence North 12 degrees 08 minutes 08 seconds West along the easterly line of said Lot 1, a distance of 419.74 feet to the northeast corner of said Lot 1; thence North 61 degrees 16 minutes 31 seconds East a distance of 25.00 feet; thence South 24 degrees 23 minutes 40 seconds East a distance of 463.22 feet to the northeast corner of Lot 2, Block 1, of said plat; thence westerly along the north line of said Lot 2, a distance of 125.00 feet to the point of beginning. This lies within the following permanent easement for street, utility and drainage purposes: That part of the West Half of the Southeast Quarter and that part of the East Half of the Southwest Quarter of Section 2, Township 114, Range 22, Scott County, Minnesota described as follows: Beginning at the southeast corner of Lot 1, Block 1, BROOKSVILLE CENTER 2ND ADDITON, Scott County, Minnesota; thence North 12 degrees 08 minutes 08 seconds West along the easterly line of said Lot 1, a distance of 419.74 feet to the northeast corner of said Lot 1; thence North 61 degrees 16 minutes 31 seconds East a distance of 25.00 feet; thence South 24 degrees 23 minutes 40 seconds East a distance of 463.22 feet to the northeast corner of Lot 2, Block 1, of said plat; thence westerly along the north line of said Lot 2, a distance of 125.00 feet to the point of beginning, which lies Southerly of the following described line: Commencing at the Southeast corner of said Lot 1; thence North 11 degrees 28 minutes 19 seconds West assumed bearing along the Easterly line of said Lot 1, a distance of 83.60 feet to the point of beginning of said line to be hereinafter described; thence Easterly a distance of 99.36 feet along a non-tangential curve concave to the North having a radius of 279.00 feet and a central angle of 20 degrees 24 minutes 15 seconds, the chord of said curve bears North 79 degrees 35 minutes 13 seconds East, to the East line of the above described parcel and the said line there terminating. DN: 179265 Ver: 2 EXHIBIT A, Page 2 CM: 20245.0002 EXHIBIT B PERMITTED ENCUMBRANCES 1. Covenants, conditions, easements, restrictions, and reservations of record approved in writing by Buyer. 2. Real estate taxes not due and payable. DN: 179265 Ver: 2 EXHIBIT B CM: 20245.0002 EXHIBIT C PID: Project No.: 01-01 PARCEL A RIGHT OF ENTRY / WAIVER OF TRESPASS THE UNDERSIGNED, the owner of certain land in the City of Prior Lake, Minnesota, who is the owner and the person(s) with the right to grant entry to the Subject Property (as hereafter defined), does hereby consent and grant unto the CITY OF PRIOR LAKE, Minnesota ("City"), its contractors, agents and assigns, the irrevocable right to enter upon the Subject Property and to commence construction and all activities related thereto, for the purposes of constructing Ring Road (City Project No. 01-01) as generally described on Exhibit A attached hereto and appurtenant work over, under, on, and across the Subject Property as depicted on the plans for the above referenced improvement project as described on Exhibit A and in connection with the real property ("Subject Property") legally described as follows: LEGAL DESCRIPTION, Described on Exhibit B attached hereto. Scott County, Minnesota. The primary purpose for which the City is entering into this Right of Entry/Waiver of Trespass is to allow access to construct a public roadway and appurtenant work on the Subject Property. The disturbed yard area of the Subject Property will be restored with topsoil and sod. The disturbed driveway area of the Subject Property will be restored with new bituminous of the same type as exists. By accepting this Right of Entry/Waiver of Trespass, the City acknowledges that it is entering upon the Subject Property at its own risk and agrees it will hold the undersigned harmless from any claim resulting from the City's activities described herein. It is further understood that this Waiver does not constitute a waiver on behalf of the owner or persons of interest in the Subject Property to any claim for damages for the removal of trees, brush, crops, or for the acquisition of permanent easements over the above described property by the City, its agents and assigns. The undersigned waives all claims against the City, its contractors, agents and their respective successors and assigns, for any damage to the Subject Property caused by the construction described on Exhibit A, except as reserved above. This Right of Entry/VVaiver of Trespass expires upon completion of City Project No. 01- 01, but in any case no later than DN: 179265 Ver: 2 EXHIBIT C, Page 1 CM: 20245.0002 Dated this day of April, 2003. PROPERTY OWNER(S): WELLS FARGO BANK MINNESOTA, NA By Wells Fargo Properties, Inc., agent for Wells Fargo Bank Minnesota, N.A. By: Harold P. Richey Its: Senior Vice President DN: 179265 Ver: 2 EXHIBIT C, Page 2 CM: 20245.0002 EXHIBIT "A" TO PARCEL A RIGHT-OF-ENTRY / WAIVER OF TRESPASS Lot 1, Block 1, Brooksville Center 2nd Addition, according to said plat on file and of record in the Office of the County Recorder, Scott County, Minnesota. Which lies within the following permanent easement for street, utility and drainage purposes: That part of Lot 1, Block 1, Brooksville Center 2"~ Addition, according to said plat on file and of record in the office of the County Recorder, Scott County, Minnesota, which lies Southerly and Westerly of the following described line: Commencing at the Southeast corner of said Lot 1; thence North 11 degrees 28 minutes, 19 seconds West, assumed bearing along the East line of said Lot 1, a distance of 83.60 feet to the point of beginning of said line to be hereinafter described; thence North 89 degrees 23 minutes 14 seconds West a distance of 24.03 feet; thence Westerly a distance of 80.70 feet along a tangential curve concave to the South having a radius of 224.00 feet and a central angle of 20 degrees 38 minutes 31 seconds; thence North 21 degrees 15 minutes 20 seconds West, not tangent to the last described curve, a distance of 45.73 feet to the Westerly line of said Lot 1 and the said line there terminating. DN: 179265 Ver: 2 EXHIBIT C, Page 3 CM: 20245.0002 EXHIBIT "B" TO PARCEL A RIGHT-OF-ENTRY / WAIVER OF TRESPASS A strip of land 5.00 feet in width over that part of said Lot 1 (as described in Exhibit A hereto), the Southerly and Westerly line of said strip of land is contiguous with the Northerly and Easterly line of the permanent easement described in Exhibit A hereto. Said strip of land is to extend by its full width from said Easterly to said Westerly. DN: 179265 Ver: 2 EXHIBIT C, Page 4 CM: 20245.0002 EXHIBIT D PID: Project No.: 01-01 PARCEL B RIGHT OF ENTRY / WAIVER OF TRESPASS THE UNDERSIGNED, the owner of certain land in the City of Prior Lake, Minnesota, who is the owner and the person(s) with the right to grant entry to the Subject Property (as hereafter defined), does hereby consent and grant unto the CITY OF PRIOR LAKE, Minnesota ("City"), its contractors, agents and assigns, the irrevocable right to enter upon the Subject Property and to commence construction and all activities related thereto, for the purposes of constructing Ring Road (City Project No.01-01) as generally described on Exhibit A attached hereto and appurtenant work over, under, on, and across the Subject Property as depicted on the plans for the above referenced improvement project as described on Exhibit A and in connection with the real property ("Subject Property") legally described as follows: LEGAL DESCRIPTION, Described on Exhibit B attached hereto. Scott County, Minnesota. The primary purpose for which the City is entering into this Right of Entry/VVaiver of Trespass is to allow access to construct a public roadway and appurtenant work on the Subject Property. The disturbed yard area of the Subject Property will be restored with topsoil and sod. The disturbed driveway area of the Subject Property will be restored with new bituminous of the same type as exists. By accepting this Right of Entry/VVaiver of Trespass, the City acknowledges that it is entering upon the Subject Property at its own risk and agrees it will hold the undersigned harmless from any claim resulting from the City's activities described herein. It is further understood that this Waiver does not constitute a waiver on behalf of the owner or persons of interest in the Subject Property to any claim for damages for the removal of trees, brush, crops, or for the acquisition of permanent easements over the above described property by the City, its agents and assigns. The undersigned waives all claims against the City, its contractors, agents and their respective successors and assigns, for any damage to the Subject Property caused by the construction described on Exhibit A, except as reserved above. This Right of Entry/Waiver of Trespass expires upon completion of City Project No. 01- 01, but in any case no later than DN: 179265 Ver: 2 EXHIBIT D, Page 1 CM: 20245.0002 Dated this day of April, 2003. PROPERTY OWNER(S): WELLS FARGO BANK MINNESOTA, NA By Wells Fargo Properties, Inc., agent for Wells Fargo Bank Minnesota, N.A. By: Harold P. Richey Its: Senior Vice President DN: 179265 Ver: 2 EXHIBIT D, Page 2 CM: 20245.0002 EXHIBIT "A" TO PARCEL B RIGHT-OF-ENTRY / WAIVER OF TRESPASS That part of the West Half of the Southeast Quarter and that part of the East Half of the Southwest Quarter of Section 2, Township 114, Range 22, Scott County, Minnesota described as follows: Beginning at the southeast corner of Lot 1, Block 1, BROOKSVILLE CENTER 2ND ADDITION, Scott County, Minnesota; thence North 12 degrees 08 minutes 08 seconds West along the easterly line of said Lot 1, a distance of 419.74 feet to the northeast corner of said Lot 1; thence North 61 degrees 16 minutes 31 seconds East a distance of 25.00 feet; thence South 24 degrees 23 minutes 40 seconds East a distance of 463.22 feet to the northeast corner of Lot 2, Block 1, of said plat; thence westerly along the north line of said Lot 2, a distance of 125.00 feet to the point of beginning. This lies within the following permanent easement for street, utility and drainage purposes: That part of the West Half of the Southeast Quarter and that part of the East Half of the Southwest Quarter of Section 2, Township 114, Range 22, Scott County, Minnesota described as follows: Beginning at the southeast corner of Lot 1, Block 1, BROOKSVILLE CENTER 2ND ADDITON, Scott County, Minnesota; thence North 12 degrees 08 minutes 08 seconds West along the easterly line of said Lot 1, a distance of 419.74 feet to the northeast corner of said Lot 1; thence North 61 degrees 16 minutes 31 seconds East a distance of 25.00 feet; thence South 24 degrees 23 minutes 40 seconds East a distance of 463.22 feet to the northeast corner of Lot 2, Block 1, of said plat; thence westerly along the north line of said Lot 2, a distance of 125.00 feet to the point of beginning, which lies Southerly of the following described line: Commencing at the Southeast corner of said Lot 1; thence North 11 degrees 28 minutes 19 seconds West assumed bearing along the Easterly line of said Lot 1, a distance of 83.60 feet to the point of beginning of said line to be hereinafter described; thence Easterly a distance of 99.36 feet along a non-tangential curve concave to the North having a radius of 279.00 feet and a central angle of 20 degrees 24 minutes 15 seconds, the chord of said curve bears North 79 degrees 35 minutes 13 seconds East, to the East line of the above described parcel and the said line there terminating. DN: 179265 Ver: 2 EXHIBIT D, Page 3 CM: 20245.0002 EXHIBIT "B" TO PARCEL B RIGHT-OF-ENTRY I WAIVER OF TRESPASS A strip of land 5.00 feet in width over that part of the parcel described in Exhibit A hereto, the Southerly line of said strip of land is contiguous with the Northerly line of the permanent easement described in Exhibit A hereto. Said strip of land is to extend by its full width from said Easterly line of the above described parcel to said Westerly line of the above described parcel. DN: 179265 Ver: 2 EXHIBIT D, Page 4 CM: 20245.0002