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HomeMy WebLinkAbout2010-06-02 PACKET 04.F.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 6/2/10 PREPARED BY Community Development Howard Blin ORIGINATING DEPARTMENT STAFF AUTHOR COUNCIL ACTION REQUEST Consider approving the purchase agreement with Richard and Annette Mullen to acquire Lot 28, House's River Acres for use as a bus turn - around. STAFF RECOMMENDATION Approve the purchase agreement with Richard and Annette Mullen. ADVISORY COMMISSION ACTION DENIED DATE REVIEWED ❑ PLANNING ❑ ❑ PUBLIC SAFETY ❑ ❑ PUBLIC WORKS ❑ ❑ PARKS AND RECREATION ❑ ❑ HUMAN SERVICES /RIGHTS ❑ ❑ ECONOMIC DEV. AUTHORITY ❑ ❑ - ❑ � : ► eli7�ZillJ�it ® MEMO /LETTER: Memo from John McCool dated 5/26/10 ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ® OTHER: Purchase agreement ADMINISTRATORS COMMENTS APPROVED DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ zet 6c 2)_r -1 City Administrator Date COUNCIL ACTION TAKEN: APPROVED X s ■a OF • - • AW "MINNESOTA , Kin TO: Mayor and Members of the City Council Ryan Schroeder, City Administrator FROM: John McCool, Senior Planner DATE: May 26, 2010 RE: Purchase Agreement — Richard and Annette Mullen * The City Council is requested to approve the purchase agreement with Richard and Annette Mullen for the City to acquire a parcel of land that is 167 feet by 183.5 feet (0.7 acre.). This par- cel is legally described as Lot 28, House's River Acres, and is located between the Burlington Northern -Santa Fe Railroad and River Acres Road, approximately 400 feet west of the proposed quiet zone railroad crossing in the River Acres neighborhood. Location Map This purchase agreement does the following: ® City purchases Lot 28 in the amount of $30,644.50 minus the 2010 Pavement Manage- ment River Acres (District H) Project per parcel assessment. The purchase amount is based on $1.00 per square foot, which is the typical amount paid for permanent easements. ® The sellers grant a right -of -entry on Lot 28 to the City. The purpose of this right -of- entry is to allow the City's consultants and contractors to begin constructing the turn - around. ® The sellers do not object if the City sold a portion of this property to an abutting landowner as long as: (1) no building or structure of any kind, other than a fence Honorable Mayor, City Council, and Ryan Schroeder Mullen Purchase Agreement May 26, 2010 Page 2 of 2 conforming to applicable ordinances, may be erected on the property; (2) the property may not be used for outdoor storage or machinery, equipment or debris; and (3) removal of any tree having a diameter of three inches or greater shall not be allowed, unless the tree is diseased, dead, or is a noxious or invasive species. During the 2010 Pavement Management Project development process, relocating the existing bus turn - around at the west end of 115th Street and north of the railroad tracks was discussed. Now that the quiet zone improvements will be constructed, a turn - around on the south side of the railroad tracks is needed. The proposed location for the turn - around is at the northwest corner of Lot 28, House's River Acres subdivision. This 0.7 -acre of land is owned by Richard and Annette Mullen. They reside at 8211 River Acres Road, which is across the street from this parcel that the City proposes to pur- chase. There are no structures on this wooded parcel and it gently slopes from south to north. The City initially proposed to acquire a permanent easement from the Mullens to construct the turn- around on the west - northwest side of Lot 28. Because of drainage, snow storage, and the design for the turn - around impacting approximately one -third of this vacant lot, the Mullen's agreed to sell the parcel to the City. The illustration below shows the location of the proposed turn - around: R /%" 7 RIVER ACRES RO �, N N N I C14 3.N.' f xna.00 aJ � ai CO Q' C3 S'7 I j ._..- ...,�� 0 cc 00 RNER ACRES, ROAD { � CO r to'�k�' FX!STiNC ft A r 4 , Sf.dl A.EUJ ROPOS_P ..fCVCTCM�C" VEHICL[ ARGU NG REM PROPOSED TRAMO MEDIAN I K That the City Council approve the purchase agreement with Richard and Annette Mullen. BNSf R RAILWAY CA That the City Council approve the purchase agreement with Richard and Annette Mullen. PURCHASE AGREEMENT 1. PARTIES. This Purchase Agreement is made this day of 1 20 10, by and between RICHARD V. MULLEN and ANNETTE M. MULLEN, husband and wife ( "Sellers ") and the CITY OF COTTAGE GROVE, a Minnesota municipal corporation ( "City "). 2. SALE OF PROPERTY. The Sellers are the owners of land in the City of Cottage Grove legally described as Lot 28, HOUSE'S RIVER ACRES IN COTTAGE GROVE, Washington County, Minnesota (the " Property "). 3. OFFER/ACCEPTANCE. In consideration of the mutual agreements herein, the City offers and agrees to purchase and the Sellers agree to sell and convey to the City the Property. 4. PURCHASE PRICE. The Purchase Price for the Property is $30,644.50. 5. TERMS; DELIVERY AT CLOSING: A. EARNEST MONEY. No earnest money shall be paid by the City to the Sellers, the agreement to which is hereby acknowledged. B. BALANCE DUE SELLERS. The City agrees to pay by check on the Closing Date the balance of the Purchase Price, according to the terms of this Purchase Agreement. C. DOCUMENTS TO BE DELIVERED AT CLOSING. Subject to performance by the City, the Sellers agree to deliver the following to the City at Closing: a. An executed Warranty Deed conveying marketable title to the Property to the City, subject only to the following exceptions: i. Building and zoning laws, ordinances, state and federal regulations; ii. Reservation of minerals or mineral rights to the State of Minnesota, if any; and iii. Public utility and drainage easements of record which will not interfere with the City's intended use of the Property. iv. The Warranty Deed shall contain the following restriction: "The Grantors make this conveyance subject to the following restrictions and conditions, which are made for the benefit of 369106v2 CBR CT 160-18 1 Lots 10 and 11, HOUSE'S RIVER ACRES IN COTTAGE GROVE, Washington County, Minnesota: (1) that no building or structure of any kind, other than a fence conforming to applicable ordinances, may be erected on the Property; (2) the Property may not be used for outdoor storage of machinery, equipment or debris; and (3) removal of any tree having a diameter of three inches or greater shall not be allowed, unless the tree is diseased, dead or is a noxious or invasive species such as buckthorn." b. Standard form Affidavits of Seller. e. Abstract of title, if applicable. d. A "bring- down" certificate, certifying that all of the warranties made by Sellers in this Purchase Agreement remain true as of the date of closing. e. Certificate that Sellers are not foreign nationals. f. Well disclosure certificate, if required, or, if there is no well on the Property, the Warranty Deed must include the following statement: "The Sellers certifies that the Sellers do not know of any wells on the described real property." g. Such other documents as may be reasonably required by the City's title examiner or title insurance company. 6. CLOSING DATE. The closing of the sale of the Property shall take place on a date to be mutually agreed upon by the City and the Sellers, but no earlier than 10 days after final adoption of the assessment role for 2010 Pavement Management River Acres (District H) Project and no later than November 1, 2010. The closing shall take place at Cottage Grove City Hall, 7516 80"' Street South, Cottage Grove, MN or such other location as mutually agreed upon by the parties. 7. RIGHT OF ENTRY: The City and its agents shall have the right to enter upon the Property after the date of the execution of this Purchase Agreement for the purposes of collecting data, surveying, tree removal, grading and construction of a turn- around. A. Seller shall pay on or prior to the Closing Date all real estate taxes due and payable in 2009 and prior years on the Property, including any delinquent real estate taxes. 369106v2 CBR CT160 -18 B. Real estate taxes due and payable in 2010 shall be prorated as of the date of Closing between Buyer and Seller. 9. SPECIAL ASSESSMENTS. A. Sellers shall pay at or prior to closing the balance of all special assessments levied prior to closing, including assessments certified for payment with real estate taxes payable in the year of closing. Sellers shall pay any deferred real estate taxes or special assessments, payment of which is required as a result of the closing of this sale. B. Sellers have received notice of a pending public improvement project, the 2010 Pavement Management River Acres (District H) Project ( "the Project"). The estimated special assessment against the Property for the Project is $6,275.34. The final assessment is expected to be levied prior to November 1, 2010. Sellers agree to waive the right to appeal the assessment and to pay the assessment in full at Closing. C. Notwithstanding any other provision of this Purchase Agreement, Sellers shall at all times be responsible to pay special assessments, if any, for delinquent sewer or water bills, removal of diseased trees prior to the date of this Purchase Agreement, snow removal, or other current services provided to the Property by the assessing authority while the Sellers are in possession of the Property. 10. MARKETABILITY OF TITLE. The City may, at its expense and within a reasonable time after Sellers' acceptance of this Purchase Agreement, obtain a commitment for title insurance (`Commitment ") for the Property. The City shall be allowed ten (10) business days after receipt of the Commitment to examine title and make objections, which shall be made in writing or deemed waived. Sellers shall have until the Closing Date (or such later date as the parties may agree upon) to make title marketable, at the Sellers' cost. In the event that title to the Property cannot be made marketable or is not made marketable by the Sellers by the Closing Date, then, at the option of the City, the City may terminate this Agreement. 11. CLOSING COSTS AND RELATED ITEMS. The City shall pay: (a) the premium for title insurance policy, if any, obtained by the City; and (b) any transfer taxes and recording fees required to enable the City to record its deed from Sellers under this Purchase Agreement. The Sellers shall pay all other recording fees. The City and the Sellers shall equally split the closing fees charged by the title insurance or other closing agent, if any, utilized to close the transaction contemplated by this Purchase Agreement. Each party shall be responsible for its own attorneys' fees and costs. A. POSSESSION. Sellers shall transfer possession of the Property to the City at closing. Sellers agree to remove from the Property all debris and any items of Sellers' personal property not included in this sale no later than 4:00 p.m. on the date 369I06d2 CBR M60 -18 before the date of the closing. B. NO ENCUMBRANCES. Sellers agree not to place any liens or encumbrances on the Property after the date of execution of this Purchase Agreement. 13. DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM. Sellers disclose that there is not an individual sewage treatment system on or serving the Property. 14. CONDITION OF SUBSOIL AND GROUNDWATER. Sellers hereby warrant to the City that during the time the Sellers have owned the Property there have been no acts or occurrences upon the Property that have caused or could cause impurities in the subsoil or ground water of the Property or other adjacent properties. This warranty shall survive the closing of this transaction. Sellers agree to indemnify and hold hannless the City from any and all claims, causes of action, damages, losses, or costs (including reasonable attorneys' fees) relating to impurities in the subsoil or groundwater of the Property or other adjacent properties which arise from or are caused by acts or occurrences upon the Property prior to the City taking possession of the same. Sellers' agreement to indemnify the City shall not merge into the deed and shall survive the closing of this transaction. 15. WELL DISCLOSURE. Sellers disclose that there is not a well on or serving the Property. 16. SELLERS' WARRANTIES. Sellers warrant that there has been no labor or material furnished to the Property for which payment has not been made. Sellers warrant that there are no present violations of any restrictions relating to the use or improvement of the Property. These warranties shall survive the closing of this transaction. 17. NO RELOCATION BENEFITS. Sellers represent and warrant that the Property is vacant and unoccupied and acknowledge that the acquisition contemplated by this transaction will not cause the Sellers to be displaced. The Sellers acknowledge that they are not entitled to relocation benefits pursuant to Minnesota Statutes Section 117.52, et seq. 18. NO MERGER OF REPRESENTATIONS, WARRANTIES. The representations and warranties contained in this Purchase Agreement shall not be merged into any instruments or conveyance delivered at closing, but instead shall survive closing, and the parties shall be bound accordingly. 19. NO BROKER COMMISSIONS. Sellers and the City represent and warrant to each other that there is no broker involved in this transaction with either has negotiated or to whom either has agreed to pay a broker commission. The City agrees to indemnify the Sellers for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by the City and the Sellers agree to indemnify the City for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or 369106v2 CBR Cf160 -18 4 commitment or negotiation by the Sellers. 20. ENTIRE AGREEMENT; AMENDMENTS. This Purchase Agreement constitutes the entire agreement between the parties and no other agreement prior to this Purchase Agreement or contemporaneous herewith shall be effective except as expressly set forth or incorporated herein. Any purported amendment shall not be effective unless it shall be set forth in writing and executed by both parties or their respective successors or assigns. 21. BINDING EFFECT; ASSIGNMENT. This Purchase Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors and assigns. The City shall not assign its rights and interest hereunder without notice to Sellers. 22. NOTICE. Any notice, demand, request or other communication which may or shall be given or served by the parties shall be deemed to have been given or served on the date the same is deposited in the United States Mail, registered or certified, postage prepaid and addressed as follows: SELLERS: Richard V. Mullen and Annette M. Mullen 8211 River Acres Road Cottage Grove, MN 55016 CITY: City of Cottage Grove Attn: City Administrator 7516 80` Street South Cottage Grove, MN 55016 With a copy to: Kennedy & Graven, Chartered Attn: Corrine Heine 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MNT 55402 23. SPECIFIC PERFORMANCE. This Purchase Agreement may be specifically enforced by the parties, provided that any action for specific enforcement is brought within six months after the date of the alleged breach. This paragraph is not intended to create an exclusive remedy for breach of this agreement; the parties reserve all other remedies available at law or in equity. 24. ENTIRE AGREEMENT; AMENDMENTS. This Purchase Agreement constitutes the entire agreement between the parties, and no other agreement prior to this Purchase Agreement or contemporaneous herewith shall be effective except as expressly set forth or incorporated herein. Any purported amendment shall not be effective unless it shall be set forth in writing and executed by both parties or their respective successors and assigns. 369106v2 CBR CT160 -18 IN WITNESS WHEREOF, the parties have executed this agreement as of the date written above. 36910642 CBR CJ 160-19 SELLERS By: Richard V. Mullen By Annette M. Mullen BUYER CITY OF COTTAGE GROVE By: Myron Bailey Its: Mayor By: Caron M. Stransky Its: City Clerk 36910642 CBR CJ 160-19