HomeMy WebLinkAbout4A - Adelmann Property
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CONSENT AGENDA:
PREPARED BY:
SUBJECT:
DATE:
INTRODUCTION:
BACKGROUND:
DISCUSSION:
4(a)
KAY SCHMUDLACH, ASSISTANT CITY MANAGER
DISCUSS UPDATES ON AMENDED PURCHASE
ADELMANN PROPERTY
MARCH 15, 1993
OF
The city of Prior Lake has been negotiating
with Frank Muelken for the purchase of
property from the Adelmann Estate. In March
of 1992 the City entered into an Option to
Purchase Real Estate from the Adelmann Estate.
The agreement was signed by two conservators
of the Adelmann Estate and Ma~or Lydia Andren.
This agenda item is being wr1tten to update
the Council on the status of that purchase.
The City of Prior Lake has done a lengthy
study of industrial locations in order to find
the best location for a Business Office Park.
Phase One of the plan for Industrial
Development would be thedpurchase.of- - _pro~erty
within the Adelmann Estate for a BUS1ness
Office Park. Subsequent industrial and office
expansion is anticipated for the northern part
of the City at a later date. The team of
City, Council and consultants have put
together a performa based on the purchase of
the Adelmann property and entered into
negotiations for the purchase of that
property. The option was signed in March of
1992 by both parties.
There are three contingencies within the
purchase a9reement that the ~arties must abide
by. The f1rst contingency 1S the appraisal
and the agreed upon land sale price. The
second is the notification of the buyers
intent to sell the property or exercise the
option. The third is the approval of the
court. Because the property is in a
"conservatorship" the property must go throu9h
a court approval process. The process 1S
generally seen as a formality to the
4629 Dakota St. S.E., Prior Lake, Minnesota 55372 I Ph. (612) 447-4230 I Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPWYER
ACTION REQUIRED:
conclusion of the agreement. The city has
entered into the option and exercises its
right to purchase the pro~erty. An agreed
u~on price was concluded 1n June of 1992.
S1nce this time the City has been working with
Mr. Muelken to complete those final steps or
the court approval process. staff was
notified in February that a court date had
been set for the end of the month. staff was
contacted the last week in February that one
of the heirs to the Estate had objected to the
sale. Since the last week in February, staff
has diligently tried to clarify the rationale
for the objection. Staff has been notified
that a new court date for March 18 has been
set. Additional efforts have been made to
contact Mr. Muelken in order to meet with the
parties to clearly understand their
objections. To this date that has not been
achieved.
Attorney Kessel has been consulted on this
matter and his opinion is that we should go to
the court hearing on March l8 and encourage
the court approval. This would be based on
the purchase agreement and clear intent of the
City and the co-conservators to sell the land.
The City has exercised its rights under the
agreed upon option and has been lead to
believe that there would be no conflict with
the court approval process. Staff will
continue to work on this to clarify the
reasons for the objections and to try to
provide a compromise in order to alleviate
those objections by the court hearing date.
An update will be provided for the City
Council on March 15 at the City Council
meeting.
No action is necessarr at this time.
intends to keep Counc1l updated on the
of this project and will provide
information on March l5.
Staff
status
update