HomeMy WebLinkAbout10 D - Busse Property Purchase Agreement
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
ALTERNATIVES:
CITY COUNCIL AGENDA REPORT
FEBRUARY 1, 1999
lOD
PAUL HOKENESS, PARKS AND RECREATION DIRECTOR
CONSIDER APPROVAL OF RESOLUTION 99-XX
APPROVING PURCHASE AGREEMENT FOR BUSSE
PROPERTY (38.4 ACRES).
Historv
.Qn 'F ebruary'25 ;'-1997 ,thecitizens.o.f~tiQ.r J,ake passedaParks,and.
Jt~\~Xf!!XJ'~i~I~~dum which included funds lor, t~e purchase of land ahd
construction,ofca,GommunityParkl AthletiC"Complex: Prior to and
following the passing of the referendum staff has been researching
various land acquisition options.. The;Busseproperty:(see.attachment
# 1 )has"beeIl'a"high'pri6ritygiveil its 'locatio!i and 'topography:
Current Circumstances
At a November,3,:1998 special meeting the Parks Advisory Committee
uga.gjmQ\!s.ly voted to recommend that the City Council pursue.the
?-c.qtti~ll!211gfJhe:S tls.,s_e.prQpe~ .~MOf(n'eceIlt1yth€'CitY'"C6titi~il
,dire9tt:.4,1b.AtJY.e_,p.ur,sJJ~rJhi,~,Jtf.g l.!!sitjon.
The Issues
· Theproximity:oftheBusseproperty .to..,thePonds.,farkwUl ,b~an
ideaLsituationas it is directly..south and within 100 feet of the new
Ponds ,Park access road.
· ..Theproperty,\hasgood access off of Mush town Road. .
. J effSchoenbauer.{rom.'Brauer.and Associates'has"ldoked 'at the
property"andconfiITiied that it'is"weIl'Sliitea I()r"parkde\~elopment.
Conclusion
Jht:"f'l:n~~h~~.purchase .agreement drafted by ,the cityattomey~s .office
provides for ,acquisition ofthe'i3 8.4acre'13ilsse<'propeftY;'af...~rcosf tlf
$,H?,~72,QQ"p~I:.ac].'t: ..or $625 ,000.00;;Glosingwouldbe'i:'-chedUle'a .,..
withitfmrietyoayS'of the'council 'sapproval-of acquisition..
1;a~pproveResolution99~xx'authorizingthepurchase~of.the Busse
.".property;-.">'tlr'$<O;;'-
2. Table action for a specific reason.
K'\EAUL\AGDEN.REI>\ERQPERTY DOCCity ofPrigr.Lake
16200 Eagle CreeK Ave, S.E., Prior LaKe, Minnesota tJ372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
RECOMMENDED
MOTION:
Staff recommends Alternative No.1.
Motion and second approve Resolution 99-XX authorizinglhe
. >
Mayor and City ger to enter into a purchase agreement for the
ac isiti 38.cres owned by Bill and Carole Busse. .
REVIEWED BY:
K:\PAUL\AGDEN.REP\PROPERTY.DOCCity of Prior Lake
~
RESOLUTION 9~ of:;
RESOLUTION APPROVING THE REAL ESTATE PURCHASE AGREEMENT
WITH WILLIAM AND CAROLE BUSSE FOR THE PURCHASE OF 38.4 ACRES
OF LAND FOR THE PURPOSE OF PARK DEVELOPMENT.
MOTION BY: SECOND BY:
WHEREAS, on February 25, 1997 the residents of Prior Lake passed a Parks and
Library referendum which included funds for the purchase of land for
the construction of a Community Park! Athletic complex, and
WHEREAS, the Parks Advisory Committee has reviewed a number of properties in
and around Prior Lake, and
WHEREAS, the Parks Advisory Committee has recommended the purchase of two
separate properties for park and athletic field purposes, and
WHEREAS, one of the properties is currently owned by William and Carole Busse
and consists of38.4 acres, and
WHEREAS, William and Carole Busse have signed a Real Estate Purchase
Agreement which would allow the City of Prior Lake to purchase the
property for an amount not to exceed $625,000.00 for 38.4 acres.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR
LAKE, MINNESOTA, that the City of Prior Lake purchase the William and Carole
Busse property for the purpose of park development at a cost not to exceed $625,000.00.
AND FURTHER, that the Mayor and city Manager are authorized to execute a Real
Estate Purchase Agreement on behalf of the City.
Passed and adopted this 1st day of February, 1999.
16200 ~g~~tt:f~e~oAve. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
YES NO
Mader Mader
Kedrowski Kedrowski
Schenck . Schenck
Petersen Petersen
WuellIier Wuellner
{Seal} City Manager
City of Prior Lake
RESBUSSE.DOC
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. FREE. .
Home Loan 'Pre-Qualification! ,
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PEARSON'S
AUTO BODY OF PRIOR LAKE
YOUR HOMETOWN'S ONLY FULL SERVICE
AUTO BODY REPAIR FACIliTY
16111 Main Ave SE
447-4259
440-BODY
(2639)
~;~;t~~~
_ 447-2101
HWY 13 & DULUTH AVE.
HWY 13 & COUNTY RD 42
24
· Free Loaner Cars
· Farm Bureau Insurance
Preferred Body Shop
· Written Guarantee
I~ II VlS"A i =;L7;:::" DAVE MOLINE. CO-OWNER/MGR
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William &
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. ,
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, whose address is 16200 Eagle Creek Avenue, Prior Lake, Minnesota 55372-1714
(referred to herein as the IIBuyerll), and WILLIAM H. BUSSE AND CAROLE BUSSE, husband
and wife, whose address is 4625 182nd Street East, Prior Lake, Minnesota 55372 (referred to
herein as the IISellersll).
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 IISubject
Property"):
1.1.1) The land in Scott County, Minnesota, legally described on Exhibit IIAII
attached hereto and incorporated herein, together with all right, title, and interest in and
to any roads, alleys or right-of-ways adjoining or servicing such land, along with
easements appurtenant thereto.
SECTION 2.
PURCHASE PRICE
2.1) The purchase price for the Subject Property (the "Purchase Pricell) shall be Six
Hundred Twenty-FiveThousand and No/100 ($625,000.00) Dollars, payable by Buyer to Sellers
by check on the date of Closing.
SECTION 3.
TITLE MATTERS
3.1) Sellers shall furnish to Buyer within twenty (20) days hereof a current commitment
for the issuance of a 1987/1990 ALTA Form B owner's policy of title insurance (the
67059.03
"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 market~~Je title to
the Subject Property, free of any and all standard and other 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 other
than accepted by Seller hereunder, the Seller shall promptly cause the exception to be
removed. If the Seller fails to remove the same within the time allowed for closing on the
Subject Property, the Buyer (at Buyer's option) shall have the right to: (a) terminate this
Agreement; or (b) cause the exception(s) to be removed and credit Buyer's cost to remove the
exception(s) against the Purchase Price.
SECTION 4.
CLOSING
4.1) The closing (the "Closing") shall be ata location designated by Bl!yer, and shall
occur within ninety (90) days after the execution of this agreement (the "Closing Date").
4.2) On the Closing Date, Sellers shall deliver to Buyer possession of the Subject
Property vacant and free of any and all debris (including, but not limited to, trash, garbage,
rubbish, personal property) and all other personalty not included in the sale of the Subject
Property. Sellers shall not remove any dirt, trees, shrubs, or other natural growth, except as
to keep the Subject Property in a neat and orderly condition.
4.3) On the Closing Date, Sellers shall execute and deliver to Buyer: .
4.3.1) A duly executed Warranty Deed, subject only to the exceptions consented
to by Buyer;.
4.3.2) 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
67059.03
2
4.3.3) A certificate on a form acceptable to Sellers 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) Seller shall pay at Closing all general real estate taxes levied against the' Subject
Property due and payable for all years prior to the year of Closing, the balance of all special
assessments against the Subject Property, and any deferred taxes. 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. Buyer shall not assume the unpaid balance
of any special assessments.
4.5) Sellers shall pay at Closing:
4.5.1) state deed tax;
4.5.2) all costs of updating the abstract of title and all costs associated with
obtaining a title insurance commitment, including name searches, tax searches,
bankruptcy searches, and property inspection fees;
4.5.3) recording fees for corrective instrument required to. remove encumbrances
and place marketable title in Buyer's name;
4.6) Buyer shall pay at Closing:
4.6.1) all recording fees and charges relating to the filing of the Warranty Deed;
4.6.2) title insurance premiums; and
4.6.3) the closing fee charged by Title Company.
SECTION 5.
COVENANTS. REPRESENTATIONS. AND WARRANTIES OF SELLER
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) 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. or arising out of the
occupancy of the Subject Property;
67059.03
3
... .... ..- ..~~
5.1.2) Sellers will maintain in force insurance against public liability from such risk
and to such limits as in accorda[lce with prudent business practice and suitable to the
Subject Pror~rty from the date hereof to the Closrrig Date;
5.1.3) To the best knowledge of Sellers, no entity or person has, at any time:
i) "released" or actively or passively consented to the "release" or
"threatened release" of 88Y Hazardous Substance (as defined below) from
any "facility" or "vessel" located on or used in connection with the Subject
Property; or
ii) taken any action in "response" to a "release" in connection with the Subject
Property; or
iii) otherwise engaged in any activity or omitted to take any action which could
subject Seller 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 U.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 U.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.
Seller shall indemnify Buyer, its successors and assigns, against, and shall hold Buyer,
its successors and assigns, harmless from, any and all losses, liabilities, claims, fines,
penalties, forfeitures; damages, administrative orders, consent agreements and orders,
and the costs -and expenses incident thereto, including, without limitation, reasonable
attorneys' fees, consultants' fees and laboratory fees, which may at any time be imposed
upon, incurred by or awarded against Buyer as a result of or in connection with the
breach of any of the above representations and warranties. Consummation of this
Agreement by Buyer with knowledge of any such breach by Seller shall not constitute
a waiver or release by Buyer of any claims arising out of or in connection with such
breach;
. 5.1.4) No person or entity (including Seller), has, at any time, ever installed,
used, or removed any underground storage tank on or in connection with the Subject
Property; and
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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 exec'ution of this agreement. Sellers warraQt that all statements set
forth in the well certificate are true, accurate, and complete to the best cif - Sellers'
knowledge. '
5.2) The covenants, representations, and warranties contained in Section 5 shall be
deemed to benefit Buyer and i.ts successors and assigns and shall survive any termination or
expiration of this Purchase Agreement or the giving of the Deed. All of Sellers' covenants,
representations and warranties in this Agreement shall be true as of the date hereof and of the
Closing Date, and shall be a condition precedent to the performance of Buyer's obligations
hereunder. If Buyer discovers that any such covenant, representation, or warranty is not true,
Buyer may elect prior to closing, 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.
ENVIRONMENTAL INVESTIGATION AND TESTING
6.1) Buyer and its agents shall have the right, at Buyer's sole option, to enter the
Subject Property without charge and at all reasonable times after the execution of this
Agreement, to perform investigation and tests as Buyer may reasonably deem appropriate. If
Buyer investigates and tests the Subject Property pursuant to this section, Buyer shall pay all
costs and expenses of such investigation and testing and shall indemnify and hold Sellers and
.the Subject Property harmless from all costs and liabilities arising out of Buyer's activities. If
the purchase and sale contemplated by this Agreement is not closed, Buyer shall repair and
restore any damage to the Subject Property caused by Buyer's investigation or testing, at
Buyer's expense, and shall return the Subject Property to substantially the same condition as
existed prior to such entry. The provisions of this Section shall survive closing or cancellation
of the Purchase Agreement.
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SECTION 7.
CONTINGENCIES
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The obligations of Buyer under this Agreement are contingent upon each of the{f?"owing:
7.1) 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 cEiriificate dated the Closing Date, signed by Sellers,
certifying that such represent~tions and warranties are true as of the Closing Date;
7.2) Buyer shall have determined on or before the Closing Date, that it is satisfied, in
its sole discretion, with the results of the environmental/soil investigations and tests of the
Subject Property.
7.3) Buyer is satisfied in its sole discretion with the results of a Surveyor verification of
the Seller's Survey, the cost of which is to be assumed by Buyer.
With the exception of the contingency set forth in Section 7.1, if any of the remaining
contingencies have not been satisfied by at least seven days before the Closing Date, the
Buyer may, at Buyer's option, terminate this Agreement by giving written notice to Sellers.
Upon such termination, neither party shall have any further rights or obligations under this
Agreement. The contingencies are for the sole and exclusive benefit of Buyer, and Buyer shall
have the right to waive the contingencies by giving written notice to Sellers.
SECTION 8.
MISCELLANEOUS
8.1) The covenants 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 fe~ due because of this Agreement.
8.3) Any notice, demand, or request which may be permitted, required or desired to be
given in connection herewith shall be in writin.g and sent by 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. Any notice shall be deemed effective
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when delivered to the party to whom it is directed. Unless other addresses are given in writing,
nbtiqes shall be sent to Sellers or Buyer at the applicable address stated on the first page of
this Agreement.
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 h.ereby: 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.
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 without limitation, specific
perfo~mance, damages (including reasonable attorney's fees), and to the cancellation of this
Agreement.
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, then Buyer
shall have the right to pursue any remedies that are available to Buyer at law or in equity,
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including without limitations, specific performance and damages (including attorney's fees), and
to the cancellation of this Agreem'ent.
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8.9) If any provision of this Agreement is. declared void or unenforceable, such provision
shall be deemed severed from this Agreement, which 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.
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:
SELLERS:
CITY OF PRIOR LAKE
By:
Wesley M. Mader, Mayor
~j~
William H. Busse '"
~o~~s~g. 6-c~ ~
By:
Frank .Boyles, City Manager
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STATE OF MINNESOTA )
) ss.
COUNTY o~.Sc.o'\1 ) > "'-.
The foregoing instrument was acknowledged before me this 'day of
I 1999, by Wesley M. Mader and by 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
COUNTY OF S1o-rr-
)
) 55.
)
..lli The foregoing instrument was acknowledged before me this zq'/<1. day of
U ~ ' 1999, by William H. Busse and Carole Busse, husband and wife.
'. ~~iC~-~
(.
. '" . CONNIE M. CARlSOt-! ..\
.~. NOTARY PU6UC-MINNESO 11\
. :~~~ sconcOUNTY ,~ 0 ~\
.~.~~., M Commission Expir2s J3n. 31, t:~G____. .
,a :;~?J~~~-'--'
r~z;c: .
THIS INSTRUMENT WAS DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
317 Eagandale Office Center
1380 Corpor~te Center Curve
Eagan, Minnesota 55121
Telephone: (612) 452-5000
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EXHIBIT "A"
to
REAL ESTATE PURCHASE AGREEMENT
Description Tract "C":
That part of the West One-Half of the Southeast Quarter of Section 11, Township 114,
Range 22, Scott County, Minnesota d~scribed as follows: Beginning at the Northwest
corner of the South 1505.50 feet (as measured at right angles) of said West One-Half
of the Southeast Quarteri thence Easterly along the North line of said south 1505.50 feet
to the West line of the East 198.00 feet of said West One-Half of the Southeast Quarter;
thence Northerly along said West line to the centerline of a Town Road; thence
Southeasterly along said centerline to the West line of the East 132.00 feet of said West
One-Half of the Southeast Quarter; thence Southerly along said West line of the East
132.00 feet to the North line of the south 1193.70 feet (as measured at right angles) of
said West One-Half of the Southeast Quarter; thence Westerly along said North line of
the South 1193.70 feet to the West line of said West One-Half of the Southeast Quarter;
thence Northerly along said West line to the point of beginning.
Containing 1 0.00 acres more or less.
AND
Description Tract "0":
.That part of the West One-Half of the Southeast Quarter of Sectio~ 11, Township 114,
Range 22, Scott County, Minnesota, lying Southwesterly of the Town Road, North of the
South 1505.5 feet (measured at right angles) of said West One-Half of the Southeast
Quarter, and lying West of the East 198.00 feet thereof.
Containing 28.4 acres more or less.
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ATTACH: EX "8" - WELL DISCLOSURE
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