HomeMy WebLinkAbout4I - Development Contract for Sale of 1.78 Acres
STAFF AGENDA REPORT
AGENDA #:
PREP ARED BY:
SUBJECT:
41
Donald Rye, Planning Director
Consider Approval of Assignment and Assumption Agreement
Relating to Developers Agreement for the Sale of 1.78 acres
July 21, 1997
DATE:
INTRODUCTION:
At the June 16, 1997 City Council meeting, the Council authorized
an amendment to the developers agreement for the development of
a 1.78 acre parcel in the Business Park. The amendment transferred
the project from Mr. Stan Anderson to Mr. Dave Hansen as
principal in a limited liability corporation. For business reasons,
Mr. Hansen would prefer to have the project in his name as an
individual. Authorizing staff to execute the Assignment and
Assumption agreement will allow this change to occur in
accordance with provisions of the developers agreement.
DISCUSSION:
The transfer of this project from The Ponds of Prior Lake LLC, a
limited liability corporation to David Hansen. an individual,
appears to be reasonable and was. in fact, contemplated when
Council approved the amended developers agreement. The
financial statement presented to the City was the personal financial
statement of Mr. Hansen and, based on that, it appears he has
adequate resources to complete the project. The provisions of the
developers agreement otherwise remain unchanged.
ISSUES:
Staff believes that execution of the Assignment and Assumption
agreement will not adversely affect the project and, consequently,
no issues are identified.
AL TERNA TIVES: 1. Authorize the execution of the attached Assignment and
Assumption agreement.
2. Do not authorize execution of the agreement.
3. Defer for specified reasons.
RECOMMENDATION: Alternative I
ACTION REQUIRED: Motion to authorize execution of the Assignment and
Assumption agreement
16200 E~I!'~~Jlt>~V'~Fs.E.. Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUi\L OPPORTLNITY E:V1PLOYER
HANSN72I.DOC/DR
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ASSIGNMENT AND ASSUMPTION AGREEMENT
TIllS AGREEMENT dated this _ day of July, 1997. by and between THE
CITY OF PRIOR LAKE, a municipal corporation under the laws of the State of Minnesota
("City"), THE PONDS OF PRIOR LAKE L.L.C.. a limited liability company under the laws
of the State of Minnesota ("Ponds") and DAVID O. HANSEN, a single person and resident of
the State of Minnesota ("Hansen").
WITNESSETH:
WHEREAS, the Prior Lake Economic Development Authority ("EDA") did, on the 25th
day of June, 1997, sell certain land within the City of Prior Lake, Minnesota, legally described
on the attached Exhibit "A" and hereinafter referred to as "Subject Property" to the Ponds; and
WHEREAS, the City and the Ponds did on the 25th day of June, 1997 enter into a
Development Agreement ("Development Agreement") relating to the Subject Property sold by
the City to the Ponds; and
WHEREAS, the Ponds sold, assigned and transferred their interest in the Subject
Property to Hansen and desires to sell, assign and transfer the Development Agreement to
Hansen; and
WHEREAS, the Development Agreement requires that the City consent to the
assignment, transfer and conveyance of the Development Agreement.
NOW) THEREFORE, in consideration of the mutual covenants and agreements herein,
it is hereby mutually agreed by the City, the Ponds and Hansen as follows:
1. The City hereby agrees and consents to the transfer of the Subject Property from
the Ponds to Hansen and to the assignment, transfer and conveyance of the
Development Agreement from the Ponds to Hansen, subject to the terms and
conditions contained herein.
2. The Ponds hereby assigns, transfers and conveys the Development Agreement to
Hansen.
3. Hansen hereby agrees to purchase the Development Agreement and asswne the
Development Agreement and to become the "Developer", as defined in the
Development Agreement, pursuant to the terms, covenants and conditions of the
Development Agreement, as if he had signed the Development Agreement
himself, and agrees to be bound by all the terms, covenants and conditions therein
and assume all of the liabilities and obligations thereunder.
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4. Hansen further agrees to all of the terms, covenants and conditions of the
Assessment Agreement dated June 25, 1997 by and between the City, the Ponds
and the Assessor for Scott County, Minnesota, and that the Assessment
Agreement is binding upon Hansen as a successor and assignee of the Ponds.
IT WITNESS WHEREOF, the undersigned have hereunto set their hand the date frrst
written above.
THE PONDS OF PRIOR LAKE LLC
By:
Its Chief Manager
CITY OF PRIOR LAKE
By:
Its Mayor
And:
Its City Manager
David O. Hansen
STATE OF MINNESOTA )
) SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of July, 1997. by
David O. Hansen, the Chief Manager of The Ponds of Prior Lake, LLC, on its behalf.
Notary Public
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STATE OF MINNESOTA )
) SS.
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this _ day of July, 1997. by
Lydia Andren and Frank Boyles, the Mayor and City Manager, of the City of Prior Lake, a
municipal corporation, on behalf of the corporation and through the authority granted by its City
Council.
Notary Public
STATE OF MINNESOTA )
) S5.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of July, 1997, by
David O. Hansen, a single person.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, MN 55121
Telephone: (612) 452-5000
JFK:kgm (3693/098)
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