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HomeMy WebLinkAbout7D - Main Fire Station Purchase Agreement AGENDA NUMBER: PREPARED BY: SUBJECT: DATE: 7D LARRY J. ANDERSON, DIRECfOR OF PUBUC WORKS CONSIDER APPROVAL OF REAL ESTAlE PURCHASE AGREEMENT FOR MAIN FIRE STATION ruLY 19, 1993 INTRODUCTION: The purpose of this Agenda item is to approve a Real Estate Purchase Agreement for land acquisition for the Fire Hall. BACKGROUND: On June 22, 1993, a referendum was approved by the voters to construct a Fire Hall. Staff has negotiated a Purchase Agreement for 6.71 acres of property adjacent to CSAH 21 and on the west side of the Business Office Park. The site includes part of a wetland and is sufficient to construct the proposed F"1re Hall. Attached is a drawing depicting the proposed parcel for land acquisition. The purchase price is $43,615.00. The price was based upon $6,500.00 per acre. The agreement is subject to City Council approval and the seller obtaining the approval of the Scott County Probate Court. The established closing date is August 16, 1993. The seller has signed the Purchase Agreement. DISCUSSION: The Fire Hall will be graded as part of the Business Office Park. The lot has a substantial amount of granular material which will be used to build the Business Office Park streets and for lot grading. By purchasing this lot, the City will not need to import granular material for the construction of the Business Office Park. The August 16, 1993 closing date was chosen so that the contract for the construction of the Business Office Park could include the use of the material. The site meets the Fire Department's needs for a new Fire Hall and provides and opportunity to have the site grading be completed in conjunction with the Business Office Park project, and also provides for a more economical design resulting in cost savings. FINANCIAL IMPACT: The Fire Department profonna included $46,000.00 for land acquisition. The purchase price is $43,615.00. The Fire Hall bond 4629 Dakota St. S.E., Prior Lake, Minnesota 55372 I Ph. (612) 447-4230 I Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLDYER deposited in the Constnlction Fund. ALTERNATIVES: The alternatives are as follows: 1. Approve the Purchase Agreement and authorize the Mayor and City Manager to sign the agreement. 2. Table this item fOf a specific reason. 3. Deny approving the Real Estate Purchase Agreement. RECOMMENDATION: Staff recommends Alternative #1. ACTION REQUIRED: Make a motion to approve the Real Estate Purchase Agreement and authorizing the Mayor and City Manager to sign the agreement. Make a second motion to authorize the payment of $43,615.00 for the land acquisition from the Construction Fund, contingent upon the execution of the Real Estate Purchase Agreement. AGEN7D.WKf 10: L.jl 'j l"Uiw:..1 ';'\jn . I' \,,1111. \0\"'''"11 1\. l\"~~"'" . ....... ...... - ...w....... ""_ ~ REAL ESTATE PURCHASE A(JPRF.MENI' THIS AGREEMENT made this day of 1993, by and between the City of Prior Lake, a Minnesota municipal corporation ("Purchaser"), and Marilyn Adelmann and LeRov Adelmann, co-conservators of the Conservatorshin of Anthony Adel~ann, Conservatee (collectively "Seller") . - In consideration of the mutual covenants and undertakings contained herein the parties agree as follows: 1. Sale and Purchase of Propertv. Seller agrees to sell, and Purchaser agrees to purchase, certain real property situated in the City of Prior Lake, County of Scott, State of Minnesota, consisting of certain land legally described as follows, to-wit: See Exhibit A attached hereto and incorporated herein_ together with all the appurtenant rights, mineral rights, privileges, and easements belonging thereto (collectively the "Land") ; all buildings, structures, and other improvements located on the Land (the Land and improvements are hereinafter collectively referred to as the "Real Property"). 2_ Purchase Price. Purchaser agrees to pay to Sellerl as the purchase price for the Real Property, the sum of Forty-Three Thousand Six Hundred Fifteen and nO/10aths ($43,615.00). 3_ Title. Seller agrees to promptly obtain and shall deliver to Purchaser a commitment for an owner's title insurance policy (ALTA Form B-1970) issued by a title insurance company acceptable to Purchaser, naming Purchaser as the proposed owner- insured of the Real Property in the amount of the Purchase Price (the "Commitment"). The Commitment shall have a current dat:e as its effective date and shall commit to insure marketable tit:le in Purchaser, free and clear of all mechanics, lien claims, questions of survey, unrecorded interests, rights of parties in possession or other exceptions. The Commitment shall set: forth all levied real estate taxes and special assessments and shall contain such endorsements as Purchaser may require, including but not limited to, a zoning endorsement insuring Purchaser that: the ownership, use, operation and occupancy of the Real Property as of the Closing Date complies with all applicable zoning laws, codes, ordinances and regulations and does not constitute a nonconforming use thereunder. Said commitment shall have attached copies of all instruments of record which create any easements or restrictions which are referred to in Schedule B of the title commitment. Together with the Commitment, Seller shall deliver to Purchaser complete Uniform Commercial Code searches against t:he Personalty evidencing that the Personalty is not subject to any financing statements or security interests (the "Searches"). Purchaser will be allowed after receipt of the Commitment, the Searches, and the Survey (as hereinafter defined) To: Larrv Andel son From: Glenn R. Kessel 7-13-93 10: 164m p. 3 of 11 an examinaclon thereof and to make any objections to the marketability of the title to the Real Property or Personalty, said objections to be made by written notice or to be deemed waived. If the title to the Real Property and Personalty, as evidenced by the Commitment, Survey, and Searches together with any appropriate endorsements and updated Survey and Searches, is not good and marketable of record in Seller and is not made so by the Closing Date, Purchaser may either: a. Terminate this Agreement by giving written notice to Seller in which event this Agreement shall become null and void and neither party shall have any further right or obligation hereunder; or b. Elect to accept the title in its unmarketable condition by giving written notice to Seller, in which event Purchaser shall hold back adequate fund from the portion of the Purchase Price payable at the closing to cure the defects and apply said holdback funds for ~he cost of curing such defects, including attorneys' fees, and pay che unexpended balance to Seller. (If the amount of said holdback cannot be mutually agreed to by Seller and Purchaser, the issuer of the Commitment shall determine the amount of said holdback) . 4. Documents to be Delivered by Beller. Seller shall promptly obtain and deliver to Purchaser the following, all certified to by Seller as full, true, correct and ~omplete: 4.1 Copies of all permits or authorizations re~~ired to be issued by any governmental body having jurisdiccion in connection with any state of facts or activity presently existing or being carried on with respect to the Real Property. 4.2 Copies of any and all leases or other contracts affecting the property. 4.3 Copies of all surveys, title opinions, commitment for title insurance, title insurance policies, environmental reports, environmental notices, building and occupancy permits, and any other documents affecting the Real Property and Personalty which is in the possession, or under the control, of Seller. Seller agrees that Seller shall, at Seller's sole expense prior to or at the time of closing, effect the absolute termination of, and the payment of all amounts owing under, all contracts and agreements affecting the Real Property or Personalty, and those contracts and agreements, if any, which Pur:::haser may, at Purchaser's sole option, specifically elecc to accept the assignment of from Seller at closing. To: L~rrv Anderson From: DEB 7-14-93 1:21pm p. 2 of 2 Purchaser may, at Purchaser's sole option, specifically elect to accept the assignment of from Seller at closing. 5. Inspection. 5.1 Purchaser Insnection. At Purchaser's expense, Purchaser, his agents, designees, and/or assigns, are hereby granted the right at any time or times after the date hereof to inspect, analyze, obtain borings, percolation, and other soil tests determining the physical characteristics of the sub strata of the Real Property, environmental inspections, and such other inspections that may show whether or not the soil and ground water are contaminated, apd that the Real Property is satisfactory, in the Purchaser's sole judgment, for the purposes stated in this contract. Purchaser shall hold Seller harmless from any liability resulting solely from the entering upon the Real Property or che performing of any tests or inspections referred to in this section by Purchaser, its agents designees, and/or assigns, but not from liability resulting from the presence or discovery of hazardous substances (and hereinafter defined) on the Real Property. At closing, Seller shall reimburse Purchaser for the oost of the boring, percolation, soil tests and environmental inspections; provided, however, that if this contract is terminated by Purchaser, either by default or election, except for the failure of Seller to convey marketable and insurable title, Purchaser shall not be entitled to reimbursement. 6. Covenants and Warranties of Seller. covenancs and warrants to Purchaser as follows: Seller 6.1 Ownershi>> of Real Property and Personalty. Seller is the owner of good, marketable, and insurable fee title to the Real Property, free and clear of all title defects, claims, leases, options, rights of first refusal, easements, restrictive covenants, encroachments, survey defects, restrictions or limitations on the Real Property, liens or encumbrances. - 3 - TQ: La~'v Anderson From: Glenn R. Kessel 7-13-~3 lO:16am p. 5 or 11 and/or other parties in connection with any and all secured financings (the "Loans') encumbering, or otherwise affecting, all or any portion of the Real Property, except as set forth on Exhibit C. All Loans shall be oaid and satisfied by Seller at or prior to the Closing. Dace (as hereinafter defined) . 6.3 Condemnation. Seller has not received any notice of, nor does Seller have any knowledge of, any pending, threatened or contemplated condemnation proceeding af=ecting the Real Property, or any part thereof, or of any sale or other disposition of the Real Property or any portion thereof in lieu of condemnation. 6.4 Casualty. No portion of the Real Property has suffered any material damage by fire or other casualty which has not heretofore been completely repaired and restored to its original condition. No portion of the Real Property is located in a soecial flood hazard area as desianated bv Federal gover~ental authorities. - ~ 6.5 Encroachments. There are no encroachments uoon any of the Real Property and no portion of any Improveme~t ~ encroaches upon any property not included within the Real Property, or upon the area of any easement affecting the Real Property. 6.6 Real Property Taxes. No municipal approvals are required for the conveyance of the Real Property to Purchaser, nor does any applicable municipal ordinance or regulation require that the Real Property be inspected, in conjunction with the sale thereof, for "code compliance,", or for any similar reason. Schedule 1 attached hereto has attached to it a copy of the current real estate tax statement for the Real Property. Seller does not have any knowledge of any pending or contemplated reasseS8ment of the Real Property. 6.7 Ins>>ection of Premises. Purchaser, its agents and designees, shall have the right, at any time or times after the date hereof, to enter upon the Real Property, at any reasonable time or times, for any purpose connected with the sale of the Real Property or Personalty_ 6.8 Compliance ~th Lawg. The Real Property is in full compliance with all applicable building, zoning, subdivision and other land use and similar laws, codes, ordinances, rules, regulations and orders of goverTh~ental authorities (collectively, "Real Property Laws"), and Seller has not received nor expects to receive any notice of violation or claimed violation of any Real Property Law. The Real Property and its continued use, occupancy and operation - 4 - To: Larr.v Anderson rrom: Glenn R. Kessel 7-13-93 10:163m p. 6 of 11 as currently used, occupied and operated does not constitute a nonconforming use under any Real Property Law and the continued existence, use, occupancy and operation of each Improvement, and the right and ability to repair and/or rebuild such improvement in che event of casualty, is not dependent on any special permit, exception, approval or variance. Seller has no knowledge of any pending or anticipated change in any Real Property Law which would have a material adverse effect u~on the ownership, alceration, use, occupancy or operation of the Real Property or any portion thereof, or upon the reconstruction of any improvement in the event of a casualty. No dispute currently exists with any governmental authority having jurisdiction over the Real Prcperty with respect to any Real Property Law or the application thereof to the Real Property. : 6.9 Mechanics' and Other Liens. Seller does nct owe money to any architect, contractor, subcontractor or materialman for labor or materials performed, rendered or suoolied to or in connection with the Real Prooertv. There .... .. .. '" is no work being done at or materials being supplied to the Real Property at the date hereof. 6.10 Real Property Taxes. Seller does not have knowledge of any pending or contemplated reassessment of the Real Property. Seller has paid all real estate caxes on the Real Property due and payable through 1992. 6.11 Hazardous Substances. Except as set forth in Exhibit B attached hereto and incorporated herein there are no noxious, toxic, hazardous, unsafe or environmentally unsound materials, substances, wastes or Hazardous Suostances (as hereinafter defined) in, at, under or on the Real Property whether there by intent, spill, release, discharge, disposal, storage or any other means. Seller has not received any notice from any government agency, board, commission, authority or any other entity, and is not a party to any legal or adminis~rative action or proceeding, concerning or relating in any way to the spill, release, discharge, transportation, disposal, storage or presence of hazardous or regulated substances or wastes in, ac, under, on, or concerning the Real Property, including any pending or contemplated search or investigation of the Real Property or any portion thereof with respect thereto. There has been no activity on the Real Property which would subject any owner or operator thereof to damages, penalties, injunctive relief or costs or remediation or cleanup under any federal, state or local law. For the purposes of this Agreement, the term "Hazardous Substance" means that and/or similar terms as defined in Section 104(14) of the Comprehensive Environmental Res~onse, Compensation & Liability Act of - 5 - To: Larrv Anderson ~ro.: ulenn R. Kessel 7-13-93 10:1~Jm p. 7 of 11 1980, and as amended, 42 U.S.C. Sec. 9601 et seq. (14), and Section 2(8) of the Minnesota Environmental Response and Liability Act, and as amended, Minnesota Statutes Sec. 115B.02(8), and includes the term "regulated substance" as defined in Section 9001(2) of the Underground Storage Tank Act, and as amended, 42 U.S.C. Sec. 6991(2) and the term "hazardous waste" as defined in Section 1004(5) of the Resource Conservation and Recovery Act, and as amended, 42 U.S.C. Sec. 6903(5), and includes all regulations issued pursuant to any of the above statutes, and any unsafe, noxious, toxic or hazardous substance or similar terms under any other state, federal or local law, and any other applicable environmental, land use or similar act, statute, ordinance or regulation or as alleged or determined under common law. The term "Hazardous Substance" includes asbestos and related substances, PCBS, and gasoline, kerosene and all ether liquid or viscous petroleum products. Seller has complied and caused the Real Property to comply with all laws, ordinances, rules, regulations, and authorities having jurisdiction over Seller, the Real Property and the use by Seller of the Real Property, relating to any Hazardous Substance or material. 7. Closing. The parties acknowledge that time is of the essence. Therefore, subject to the conditions contained herein, closing shall take place on or before August 16, 1993 (the "Closing Date"). The closing shall take place at the offices of the City of Prior Lake, or such other place mutually acceptable co Seller and Purchaser. At the closing, Seller shall deliver to Purchaser: 7.1 A Conservator's Deed, properly executed on behalf of Seller in recordable form with all applicable transfer taxes paid and stamps, if any, affixed thereto, conveying the Real Property to Purchaser and warranting title thereco subject to no exceptions other than those matters expressly agreed co by Purchaser pursuant to Paragraph No.3 hereof. 7.2 All certificates, instruments and other documents necessary to permic the recording of the Conservator's Deed. 7.3 A standard Seller's Affidavit with respect to judgments, bankruptcies, tax liens, mechanics liens, parties in possession, unrecorded interests, encroachment or boundary line questions, and related matters, properly executed on behalf of Seller. 7.4 Originals, to the extent that the same are in Seller's possession, or subject to Seller's control, of all documents referred to in Section 5 above. - 6 - To: Larr-v Anderson from: Glenn ~. Kessel 7-13-93 10:leam D. 8 of 11 7.5 The abstract of title certified to currenc date or owner's duplicate certificate of title to the Real Property. 7.6 An affidavit of Seller in form and content satisfactory to Purchaser stating that Seller is not a "foreign person" within the meaning of Section 1445 of the Internal Revenue Code. 7.7 The commitment for an owner's title insurance policy as specified in paragraph 3. 7.8 necessary Purchaser ownership Such other instruments and documents as are to vest title to the Real Property absolutely and to enable Purchaser to enjoy the benefits thereof. in of Upon delivery of the foregoing items, Purchaser shall deliver to Seller the portion of the Purchase Price payable at the closing. 8. Taxes. Real estate taxes due and payable in the year of closing shall be prorated. Seller shall pay all prior years real estate taxes and assessments. If the actual amount of the pending or other assessments is not known at the Closing Date, the title insurance company for the Commitment shall withhold an escrow from Seller's proceeds at closing an amount equal to 150~ of the estimated amount thereof. When the amount of said assessments becomes fixed and payable, said title insurance company shall apply said escrow in payment of the assessments, returning any surplus to Selleri provided that if the amount withheld in escrow is insufficient to pay the assessments, Seller shall immediately pay, and shall be liable for the immediate payment of, any such deficiency. Seller warrants that he has no knowledge of any planned improvements which may result in special assessments being levied against the Real Property in the future and that it will inform Purchaser of any planned imprcvemencs of which Seller may hereafter become aware. 9. Contingencies. Notwithstanding anything to the contrary contained in this Agreement, the consummation of this Agreement and the closing provided in paragraph 8 hereof is hereby expressly conditioned upon the following: A. Purchaser receiving assurances satisfactory to Purchaser, in Purchaser's sole discretion, that: 9.1 Accuracy of Representation. The representations and warranties of Seller contained in this Agreement shall be true in all material respects on and as of the Closing Date with the same force and effect as though made en and as of the Closing Date (i.e., a representation that a state of facts exists on or as or the date hereof shall be deemed to - 7 - T9: Larr.v Anderson From: Glenn R. Ke$sel 1-1j-~j 1U:1bam p. ~ or 11 be a representation that such state of fact exists on or as of the Closing Date, and a representation that a state of facts has or has not changed between a date prior to the date hereof and the date hereof shall be deemed to be a representation that such stace of facts has or has not changed between such prior date and the Closing Date), except as affected by transactions contemplated hereby and except to the extent that any such representations or warranties which were made as of a specified date shall have been true on and as of such date. 9.2 Seller obtaining the approval of the Scott County Probate Court. 9.3 Approval of the voters of the City of Prior Lake approving a referendum for the construction of the new fire hall and acquisition of real property associated therewith at a special election to be held prior to the closing. 9.4 Successful sale of bonds by the Purchaser to fund the purchase of the Real Property and the contemplated improvements thereon. 9.5 Approval by the Cicy Council of the Purchase. If the contingencies set forth in this paragraph 10 are not satisfied, either party shall have the right to terminate this Agreement by giving prior written notice of termination to the other on or before the Closing Date. In the event that Purchaser gives Seller any such written notice of termination, this Agreement shall be null and void and neither party shall have any further rights, obligations, or liability hereunder. 10. Indemnity. Seller warrants and represents that it will indemnlIY and save Purchaser harmless from any loss, cost, or expense suffered or incurred by Purchaser, including attorneys; fees, arising out of, related to, or in any way connected with, a breach by Seller of its obligations, warranties, representations or agreements under this Agreement. 11. Notices. All documents to be delivered and all correspondence and notices to be given in connection with this Agreement shall be in writing and given by personal delivery or sent by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: If to Purchaser: City of Prior Lake Attention: Frank Boyles 4629 Dakota Street S.E. Prior Lake, MN 55372 with a copy to: Glenn R. Kessel, Esq. - 8 - To: Larrv Anderson From: Glenn R. Kessel 7-13-~j ID:lcam p. 10 or 11 Lommen, Nelson, Cole & Stageberg, P.A. 80 South 8th Street, Suite 1800 Minneapolis, MN 55402 If to Seller: Marilyn and LeRoy Adelmann c/o Frank Muelken, Esq. Attorney at Law 15685 Fish Point Road, 8.E. Prior Lake, MN 55372 with a copy to: Frank Muelken, Esq. Attorney at Law 15685 Fish Point Road S.E. Prior Lake, MN 55372 Each such mailed notice or communication shall be deemed to have been given to or served upon, the party to whom it is addressed on the date the same is deposited in the United States mail, postage prepaid, properly addressed in the manner above provided. Either party hereto may change such party's address for the service of notice hereunder by written notice of said change to the other party hereto, in the manner above specified ten (10) days prior to the effective date of said change. 12. Assianment. This Agreement shall be binding upon and inure to the benefit of each of the parcies hereto, their respective successors and assigns. 1~. commissions. Seller warrants and represents thac it has dealt with no realtor or broker in connection with this transaction and will indemnify, defend and hold harmless Purchaser against any claim made by an agent or broker for a commission or fee based on acts or agreements of Seller. Purchaser warrants and represents that it has dealt with no realtor or broker in connection with this transaction and ~hat ~t will indemnify, defend and hold harmless Seller against any claim made by an agent or broker for a commission or fee based on acts or agreements of Purchaser. 14. Survive Closing. All of the covenants, warranties, and provisions of this Agreement shall survive and be enforceable after the closing of this transaction. 15. Complete Agreement. This is a final Agreement between the parties and contains their entire agreement and supersedes all previous understandings and agreements, oral or written, relative to che subject matter of this Agreement. 16. Time of the Essence. performance of this agreement. Time is of the essence in the - 9 - To; Larry Anderson From: Glenn R. Kessel 7-13-93 10:1~am p. 11 of 11 17. Entire Agreement. This Agreement (including the Exhibits hereto) supersede all prior agreements and understandings, oral or written, between the parties hereto with respect to the subject matter hereof and cannot be changed or terminated orally, and this agreement constitutes the entire agreement of the parties as to the matters set forth herein. 17. Captions. The paragraph headings or captions appearing in this Agreement are for convenience only, are not a part of this Agreement, and are not to be considered in interpreting this Agreement. SELLER: Marilyn Adelmann, Co-Conservator LeRoy Adelmann, Co-Conservator CONSERVATORS OF THE CONSERVATORSHIP OF ANTHONY ADELMANN, CONSERVATEE BUYER: CITY OF PRIOR LAKE By Its and By Its S:\SHDATA\16772G\GRK\AOELHANN\PUR.AGH - 10 - "EXHIBIT A" DESCRIPTION: That part of the Southwest Quarter of section 1, Township 114, Range 22, Scott County, Minnesota described as follows: Commencing at the southeast corner of said Southwest Quarter: thence on an assumed bearing of North 89 de~rees 49 minutes 16 seconds West along the south line of sa1d Southwest Quarter a distance of 730.00 feet: thence North 00 degrees 10 minutes 44 seconds East a distance of 375.00 feet: thence along a tangential curve concave to the west having a radius of 460.00 feet a central angle of 24 degrees 23 minutes 33 seconds an arc length of 195.84 feet; thence North 24 degrees 12 minutes 44 seconds West tangent to said curve a distance of 275.29 feet to the point of beginning of the land to be described: thence along a tangential curve concave to the northeast having a radius of 540.00 feet a central angle of 45 degrees 29 minutes 20 seconds an arc length of 428.72 feet: thence North 13 degrees 45 minutes 04 seconds East not tangent to said curve a distance of 55.39 feet: thence North 31 degrees 43 minutes 15 seconds East a distance of 155.36 feet to the southwesterly right-of-way line of said now abandoned chicago, Milwaukee, St. Paul and Pacific Railroad; thence northwesterly along said right-of-way line along a nontangential curve concave to the northeast having a radius of 2914.93 feet a central angle of 6 degrees 52 minutes 46 seconds a chord bearing of North 52 degrees 50 minutes 34 seconds West an arc length of 350.00 feet; thence South 40 degrees 35 minutes 49 seconds West along a line drawn radial to said curve a distance of 405.10 feet; thence South 16 degrees 29 minutes 06 seconds East a distance of 656.34 feet to.the intersection with a line drawn South 65 degrees 47 minutes 10 seconds West from the point of beginning: thence North 65 degrees 47 minutes 10 seconds East a distance of 298.24 feet to the point of beginning. FIRE DEPARTMENT PROPERTY AQUISITION ..?/ ...----... ...--- 1.1 AC 2 ....... /~ I-----~ I 2 ~ (/ 'I I.: ~. I. I I . ___J I