HomeMy WebLinkAbout2011-05-04 PACKET 04.C.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA
MEETING ITEM #
DATE 5/4/2011
PREPARED BY
Administration
Ryan Schroeder
DEPARTMENT HEAD
ORIGINATING DEPARTMENT
COUNCIL ACTION REQUEST
Consider authorizing acquisition of property for the construction of 85th Street at Ravine
Parkway.
STAFF RECOMMENDATION
Authorize acquisition of the property.
SUPPORTING DOCUMENTS
® MEMO /LETTER: Memo from Ryan Schroder.
❑ RESOLUTION:
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
® OTHER: Attachments.
ADMINISTRATORS COMMENTS
2 1
WI
City Administrator Date
COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER
Dooument3
City of
Cotta Grove
Minnesota
To: Honorable Mayor and City Council Members
From: Ryan R. Schroeder, City Administrator
Date: April 27, 2011
Subject: Acquisition of Property for 85 Street Construction
The City Council has directed staff to seek bids on the Ravine Parkway Project. Bids are
scheduled to be received on May 19, 2011 with bid award on June 1, 2011. For that project
we are utilizing 4.93 acres of property currently part of the Ravine Park for roadway and storm
ponding. We also are proposing to acquire property just outside of the Ravine Park to facilitate
construction of the northern portion of 85 Street. That property is as follows:
Right of Way:
Permanent Easement:
Temporary Easement:
30,157 square feet
3,600 square feet
2,750 square feet
The legal descriptions and easement sketches depicting the above are enclosed for your
consideration. City staff has negotiated a purchase price for this property on a square foot
basis that results in an expenditure of $33,046.14. Staff is requesting authorization to acquire
this property as noted above.
Options: Approve; allows project to proceed
Deny; project may not proceed absent site control
Recommendation: Approve the site purchase
Council Action: By motion authorize the acquisition of property for the construction of 85
Street at the Ravine Parkway.
PURCHASE AGREEMENT
This Purchase Agreement (the "Agreement") is made this _ day of May, 2011 by and among
Gordon D. Tank and Bonnie M. Tank, husband and wife and Myron K. Tank and Linda S. Tank,
husband and wife collectively (the "Owners ") and City of Cottage Grove, a Minnesota municipal
corporation (the "City ").
ARTICLE 1.
DEFINED TERMS
1.01 Owner Property The Owners are the fee owner of certain real estate located in
Washington County, Cottage Grove, Minnesota, which is legally described on the attached
Exhibit A (the "Owners' Property "). The tax parcel number for the Owners' Property is
14.027.21.23.001 and legally described as:
The Southwest 1 /4 of the Northwest ' / 4 of Section 14, Township 27, Range 21,
Washington County, Minnesota.
1.02 Right -of -Way The City will reconstruct and widen a portion of 85` St. which runs east
and west. The City is constructing Ravine Parkway which runs north and south. The City
desires to purchase a portion of the Owners' Property, in fee title, which portion is legally
described on the attached Exhibit A and defined as the Roadway Right -of -Way. Exhibit B is a
form of the Roadway Right of Way warranty deed which includes a depiction of said Roadway
Right -of -Way.
1.03 Permanent Easement The City requires a permanent easement (the "Permanent
Easement ") for sewer and water stub improvements. The Permanent Easement area is described
in the attached Exhibit C and is depicted on Exhibit E.
1.04 Temporary Construction Easement The City acknowledges the Owners are willing to
lose part of their real properly and endure the inconvenience of major construction. The City
requires a temporary easement (the "Temporary Easement ") over a portion of the Owners'
Property for the purpose of constructing the road improvements and sewer and water stub
improvements. The Temporary Easement area is described in the attached Exhibit D and is
depicted on Exhibit E.
ARTICLE 2
PURCHASE AND EASEMENT TERMS
2.01 Offer /Acceptance In consideration of the agreement herein contained, Owners agree
that they will sell and convey the Right -of -Way to the City. Simultaneously Owners
agree to convey the Permanent Easement and Temporary Construction Easement to the
City.
384733v NKE CT]60 -152
2.02 Purchase Price of Right -of -Way and Easement
A. Purchase Price. The purchase price (the "Purchase Price ") for the Right of Way
and Easements is $0.9052 per square foot. The 'Temporary Easement has a total
area of 2,750 square feet; the Permanent Easement has a total of 3,600 square
feet; and the Right of Way has a total of 30,157 square feet. The combination of
all three areas is 36,507 square feet. The parties agree that the Purchase Price is
$33,046.14.
2.03 Terms
A. Terms. At the Closing, on the Closing Date, City shall pay the Owners cash,
certified check or other immediately available funds in the amount of $33,046.14,
less any adjustments as provided in this Agreement.
B. Documents to be delivered at Closing by Owners. At Closing, Owners shall
deliver to City:
Warranty Deed conveying title to the Right of Way to the City free and
clear of all liens and encumbrances except the following items (allowable
encumbrances):
a. Building and zoning laws, ordinances, state and federal statutes or
other governmental regulations;
b. Reservation of any minerals or mineral rights in the State of
Minnesota; and
c. Those items approved by the City pursuant to Section 2.05.
2. Standard form Affidavit of Sellers.
3. Permanent Easement to the City with consent of mortgagee, if required.
4. Temporary Easement to the City.
5. Any ',fees required by Owners' mortgage company to obtain a release and
consent.
6. Such other documents as may be reasonably required by City's title
examiner or title insurance company.
C. Documents to be delivered at Closing by City. At Closing, City shall deliver to
Owners:
1. Proof of Subdivision Approval.
3947330 NKH CT160 -152
2. Payment of all closing costs, deed taxes, title reports, document
preparation fees, escrow fees, title insurance premiums, if requested by
City, and recording fees.
3. Such other documents as may be reasonably required by a title company.
2.04 Subdivision Approval The sale of the Right-of-Way involves the division of an
existing tax parcel. The City, at its sole cost and expense, is responsible for obtaining all
necessary subdivision approvals or waivers of subdivision approval (the "Subdivision
Approval ").
2.05 Real Estate Taxes The Owners will be required to pay all the real estate taxes on the
Owner's Property in 2011 prior to or at Closing.
106 Title and Remedies The City may obtain at its cost a commitment for an owner's
policy of title insurance for the Owners' Property and shall have 20 days following the receipt of
such commitment, and copies of all the underlying documents mentioned in the commitment, to
make its objections in writing to Owners. Any matter shown on such Title Evidence and not
objected to by Buyer shall be a "Permitted Encumbrance." Seller shall have twenty (20) days
after receipt of the Objections to cure the Objections. Seller shall use its best efforts to correct
any Objections. To the extent an Objection can be satisfied by the payment of money, Buyer
shall have the right to apply a portion of the cash payable to Seller at the Closing to satisfaction
of such Objection and the amount so applied shall reduce the amount of cash payable to Seller at
closing. If Objections are not cured within such twenty (20) day period, Buyer will have the
option to:
(1) terminate this Agreement; OR
(2) waive the objections and proceed to close; OR
(3) withhold from the purchase price an amount reasonably required to
remove the objections, which in the reasonable judgment of Buyer's title
company is sufficient to assure cure of the objections. This amount will
be placed in escrow (the "Escrow ") with the title company used to close
the transaction ( "Title "), pending such cure. If seller does not cure such
Objections within one hundred twenty (120) days after such Escrow is
established, Buyer may then cure such Objections and charge the costs of
such cure (including reasonable attorney's fees) against the amount in
Escrow. Seller shall agree to pay the charges of Title to create and
administer the Escrow,; OR
(4) Buyer has the option to exercise its power of eminent domain to acquire the
Property. In the event Buyer exercises its power of eminent domain, Sellers
agree not to challenge public purpose and agree to the commissioner award
in the same amount as Purchase Price of this Agreement.
384733v1 NKE CT160d52
2.07 Closing The closing ( "Closing') of Roadway Right-of-Way and Easements shall take
place on a date mutually agreed to by the parties but not later than June 1, 2011. The Closing
shall take place at the offices of the City, 7516 — 8o` Street South, Cottage Grove, MN or such
other location as mutually agreed upon by the parties.
2.08 Closing Costs City will be responsible for payment of the cost of the title report or title
commitment pursuant to Section 2.03, payment of title insurance premium, payment of state
deed taxes, recording fees and subdivision approvals. Each party shall be responsible for its own
attorneys' fees.
2.09 Possession Owners shall transfer possession of the Roadway Right -of -Way and
Easements to the City at Closing.
ARTICLE 3
MISCELLANEOUS PROVISIONS
3.01 No Partnership or Joint Venture Nothing in this Agreement shall be interpreted as
creating a partnership or joint venture among the parties.
3.02 Labor and Material. Owners warrant to City that there has been no labor of material
furnished to Owners' Property for which payment has not been made as of the date of this
Agreement. This warranty shall survive the Closing of this transaction.
3.03 No Broker Commissions Each party represents and warrants to the other parties that
there is no broker involved in this transaction with whom the warranting party has negotiated or
to whom the warranty party has agreed to pay a broker commission. Each party agrees to
indemnify the other parties for any and all claims for brokerage commissions or finders' fees.
3.04 No Merger The provisions of this Agreement shall not be merged into any instruments
or conveyance delivered at Closing, and the parties shall be bound accordingly.
3.05 Disclosures; Individual Sewage Treatment System and Well Disclosure Owners
disclose that there is no individual sewage treatment system on or serving the Owners' Property.
Sellers disclose that there is no well on or serving the Owners' Property.
3.06 No Relocation Benefits Owners represent and warrant that the Right-of-Way is vacant
and unoccupied and acknowledge that the acquisition contemplated by this transaction will not
cause the Owners to be displaced. The Owners acknowledge that they are not entitled to
relocation benefits pursuant to Minnesota Statutes Section 117.52, et seq.
3.07 Condition of Subsoil and Ground Water Owners hereby warrant to the City that
during the time the Owners have owned the Right -of -way there have been no acts or occurrences
that have caused or could cause impurities in the subsoil or ground water of the Right -of -Way or
other adjacent properties. This warranty shall survive the Closing.
384733v NKE M60 -I52
3.08 Entire Agreement; Amendments This Agreement constitutes the entire agreement
among the parties, and no other agreement prior to this 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 the
parties or their respective successors or assigns.
3.09 Binding Effect, Assignment This Agreement shall be binding upon and inure to the
benefit of the parties and their respective heirs, executors, administrators, successors and assigns.
3.10 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; delivered by a
nationally recognized overnight delivery company, or actually received by the recipient and
addressed as follows:
A. Owners Gordon D. and Bonnie M. Tank
Myron K. and Linda S. Tank
10478S. 80 Street
Cottage Grove, MN 55016
B. City City of Cottage Grove
7516 80 Street South
Cottage Grove, MN 55016
Attn: Ryan Schroeder
With a copy to:
Kennedy & Graven, Chartered
200 South Sixth St.. Suite 470
Minneapolis, MN 55402
Attn: Corrine Heine
3.11 Captions, Headings or Titles All captions, headings, or titles in the paragraphs or
sections of this Agreement are inserted for convenience of reference only and shall not constitute
a part of the Agreement or a limitation of the scope of the particular paragraphs or sections to
which they apply.
3.12 Counternarts This Agreement may be executed in any number of counterparts, each of
which shall constitute one and the same instrument.
3.13 Apnlieable Law This Agreement shall be governed by and construed in accordance
with the laws of the State of Minnesota, without regard to choice of law provisions.
3847330 NKECT160 -152
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date written
above.
SIGNATURE PAGE OF OWNERS
Gordon D. Tank
Bonnie M. Tank
Myron K. Tank
Linda S. Tank
384933vt NKECT160 -152
SIGNATURE PAGE OF CITY
By:
CITY OF COTTAGE
Myron Bailey
Its: Mayor
By:
Caron M. Stransky
Its: City Clerk
384733,1 NKE CT160 -152
EXHIBIT A
LEGAL DESCRIPTION OF ROADWAY RIGHT OF WAY
That part of the Southwest Quarter of the Northwest Quarter of Section 14, Township 27 North,
Range 21 West, Washington County, Minnesota, described as follows:
Commencing at the west quarter corner of said Section 14; thence North
89 °59'09" East, assumed bearing, along the south line of said Southwest Quarter
of the Northwest Quarter 64.45 feet to the intersection with the east right of way
line of County State Aid Highway No. 19, said point being the point of beginning
of the land to be described; thence continuing North 89'59'09" East along said
south line 837.06 feet; thence North 00 0 00'51" West 60.00 feet, thence South
89'59'09" West 92.00 feet; thence South 44'59'09 "West 39.66 feet; thence South
89'59'09" West 686.59 feet; thence North 45'00'51" West 40.43 feet to the
easterly right of way line of said County State Aid Highway No. 19; thence
southerly 60.61 feet along said right of way, along a non - tangential curve,
concave to the east, central angle 00'18'17 ", radius 11,399.15 feet, chord bearing
south 01'44'31" West to the point of beginning.
384733v1 NKECT160 -152
EXHIBIT B
FORM OF ROADWAY RIGHT -OF -WAY
WARRANTY DEED
Warranty Deed
STATE DEED TAX DUE HEREON: $
Date:
FOR VALUABLE CONSIDERATION, Gordon D. Tank and Bonnie M. Tank, husband and
wife and Myron K. Tank and Linda S. Tank, husband and wife, Grantors, hereby convey and
warrant to the City of Cottage Grove, a municipal corporation under the laws of Minnesota,
Grantee, real property in Washington County, Minnesota, depicted on Exhibit A and described as
follows:
That part of the Southwest Quarter of the Northwest Quarter of Section 14,
Township 27 North, Range 21 West, Washington. County, Minnesota, described as
follows:
Commencing at the west quarter corner of said Section 14; thence North 89 °59'09"
East, assumed bearing, along the south line of said Southwest Quarter of the
Northwest Quarter 64.45 feet to the intersection with the east right of way line of
County State Aid Highway No. 19, said point being the point of beginning of the
land to be described; thence continuing North 89 °59'09" East along said south line
837.06 feet; thence North 00 °00'51" West 60.00 feet, thence South 89 °59'09"
West 92.00 feet; thence South 44 °59'09 "West 39.66 feet; thence South 89 °59'09"
West 686.59 feet; thence North 45 °00'51" West 40.43 feet to the easterly right of
way line of said County State Aid Highway No. 19; thence southerly 60.61 feet
along said right of way, along a non - tangential curve, concave to the east, central
angle 00 °18'17 ", radius 11,399.15 feet, chord bearing south 01 °44'31" Westto the
point of beginning.
(if more space is needed, continue on back)
together with all hereditaments and appurtenances belonging thereto, subject to the following
exceptions:
384733v1 NKE CT160 -152
❑The Seller certifies that the seller does not know of any wells on the described real property.
❑A well disclosure certificate accompanies this document.
❑I am familiar with the property described in this instrument and I certify that the status and
number of wells on the described real property have not changed since the last previously
filed well disclosure certificate.
STATE OF MINNESOTA )
)SS'
COUNTY OF )
Gordon D. Tank
Bonnie M. Tank
Myron K. Tank
Linda S. Tank
The foregoing instrument was acknowledged before me this day of
2011, by Gordon D. Tank and Bonnie M. Tank, husband and wife and Myron K. Tank and Linda S.
Tank, husband and wife, Grantors.
NOTARY STAMP OR SEAL,
This instrument drafted by:
Kennedy & Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
Notary Public
Check here if part or all of the land is Registered
(Torrens) ❑
'Pax Statements for the real property described in this
instrument should be sent to (include name and
address of Grantee):
City of Cottage Grove
7516 80 Street South
Cottage Grove, MN 55016
Attn: Ryan Schroeder
384733v1 NKECT160 -152
EXHIBIT A
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384733v1 NKE CC160 -152
EXHIBIT C
FORM OF
PERMANENT EASEMENT FOR
SEWER AND WATER STUB IMPROVEMENTS
Abstract
EASEMENT
THIS INSTRUMENT is made by Gordon D. Tank and Bonnie M. Tank, husband and wife
and Myron K. Tank and Linda S. Tank, husband and wife, Grantors, in favor of the City of Cottage
Grove, a municipal corporation under the laws of the State of Minnesota, Grantee.
Recitals
A. Grantors are the fee owners of the following described property in Washington County,
Minnesota (the "Property "):
The Southwest Y4 of the Northwest %F of Section 14, Township 27, Range 21,
Washington County, Minnesota, except that part as described as follows:
Commencing at the west quarter comer of said Section 14; thence North
89 °59'09" East, assumed bearing, along the south line of said Southwest Quarter
of the Northwest Quarter 64.45 feet to the intersection with the east right of way
line of County State Aid Highway No. 19, said point being the point of beginning
of the land to be described; thence continuing North 89'59'09" East along said
south line 837.06 feet; thence North 00 °00'51" West 60.00 feet, thence South
89'59'09" West 92.00 feet; thence South 44'59'09 "West 39.66 feet; thence South
89'59'09" West 686.59 feet; thence North 45'00'51" West 40.43 feet to the
easterly right of way line of said County State Aid Highway No. 19; thence
southerly 60.61 feet along said right of way, along a non - tangential curve,
concave to the east, central angle 00'18'17 ", radius 11,399.15 feet, chord bearing
south 01'44'31" West to the point of beginning.
B. Grantors desire to grant to the Grantee an easement, according to the terms and conditions
contained herein.
Terms of Easement
1. Grant of Easement For good and valuable consideration, receipt of which is acknowledged
by Grantors, Grantors grant and convey to the Grantee the following easement:
A permanent, non - exclusive easement for utility and drainage purposes over, under,
across and through the following described property:
That part of the Southwest Quarter of the Northwest Quarter of Section 14,
Township 27 North, Range 21 West, Washington County, Minnesota, described
as follows:
184733v NKE CP160 -152
Commencing at the west quarter corner of said Section 14; thence North
89'59'09" East, assumed beating, along the south Line of said Southwest Quarter
of the Northwest Quarter 64.45 feet to the intersection with the east right of way
line of County State Aid Highway No. 19; thence continuing North 89'59'09"
East along said south line 837.06 feet; thence North 00'00'51" West 60.00 feet,
thence South 89'59'09" West 92.00 feet; thence South 44'59'09" West 39.66
feet; thence South 89'59'09" West 206.97 feet to the point of beginning of the
easement to be described; thence continuing South 89'59'09" West 60.00 feet;
thence North 00'00'51" West 60.00 feet; thence North 89'59'09" East 60.00 feet;
thence South 00'00'51" East 60.00 feet to the point of beginning.
2. Scope of Easement The permanent utility and drainage easement granted herein
includes the right of the Grantee, its contractors, agents, and employees to enter the premises at
all reasonable times for the purpose of locating, constructing, reconstructing, operating,
maintaining, inspecting, altering and repairing storm sewer, sanitary sewer and water facilities
and ground surface drainage ways in the described easement area.
The easement granted herein also includes the right to cut, trim, or remove from the
easement areas trees, shrubs, or other vegetation as in the Grantee's judgment unreasonably
interfere with the easement or facilities of the Grantee, its successors or assigns.
3. Warranty of Title The Grantors warrant they are the owners of the Property and have the
right, title and capacity to convey to the Grantee the easement herein.
4. Environmental Matteis The Grantee shalt not be responsible for any costs, expenses,
damages, demands, obligations, including penalties and reasonable attorney's fees, or losses
resulting from any claims, actions, suits or proceedings based upon a release or threat of release
of any hazardous substances, pollutants, or contaminants which may have existed on, or which
relate to, the easement area or Property prior to the date of this instrument.
5. Bindine Effect The terms and conditions of this instrument shall run with the land and
be binding on the Grantors, their heirs and assigns.
STATE DEED TAX DUE HEREON: NONE
Dated this day of .2011.
384733vt BIKE cr160 -152
Gordon D. Tank
Bonnie M. Tank
Myron K. Tank
Linda S. Tank
STATE OF MINNESOTA )
) SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
1 2011, by Gordon D. Tank and Bonnie M. Tank, husband and wife and Myron K.
Tank and Linda S. Tank, husband and wife, Grantors.
Notary Public
NOTARY STAMP OR SEAL
THIS INSTRUMENT DRAFTED BY:
Kennedy & Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
384733v] NKE CT160 -152
Abstract
CONSENT AND JOINDER BY MORTGAGEE
a corporation, holder of a mortgage on the property which is
described as follows:
INSERT LEGAL
hereby consents and joins in the Easement dated , 2011, filed , 201 I
in the office of the Lcounty) County Recorder /Registrar of Titles as Document No.
so as to subject and subordinate the undersigned's interest to said Easement.
Dated:
XX LENDER
By:
Its:
By:
Its:
3847330 NKE c r! 60 -152
STATE OF )
) SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
2011 by and , the
and of a corporation organized under
the laws of the —, on behalf of the corporation.
Notary Public
NOTARY STAMP OR SEAL
THIS INSTRUMENT DRAFTED BY:
Kennedy & Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
384733v7 NKE CT160 -152
1*144
FORM OF
TEMPORARY EASEMENT FOR
CONSTRUCTION OF IMPROVEMENTS
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THIS INSTRUMENT is made by Gordon D. Tank and Bonnie M. Tank, husband and
wife, and Myron K. Tank and Linda S. Tank, husband and wife, Grantors, in favor of CITY OF
COTTAGE GROVE, a Minnesota municipal corporation, Grantee.
FOR GOOD AND VALUABLE CONSIDERATION, receipt of which is acknowledged by
Grantors, Grantors grant and convey to the Grantee a temporary easement for grading and
construction purposes, including the right of the Grantee, its contractors, agents, and employees to
enter upon said premises at all reasonable times for the purposes of construction, grading, sloping,
and restoration purposes, and all purposes ancillary thereto, together with the right to cut, trim, or
remove therefrom trees, shrubs, or other vegetation from the easement area, as well as the right to
deposit construction materials upon the easement area and to deposit or remove earthen materials
from the easement area. Said easement is granted over, under, across and upon the following
described real property:
That part of the Southwest Quarter of the Northwest Quarter of Section 14, Township 27
North, Range 21 West, Washington County, Minnesota, described as follows:
Commencing at the west quarter corner of said Section 14; thence North 89'59'09" East,
assumed bearing, along the south line of said Southwest Quarter of the Northwest Quarter
64.45 feet to the intersection with the east right -of -way line of County State Aid Highway
No. 19; thence continuing North 89 °59'09" East along said south line 837.06 feet; thence
North 00'00'51" West 60.00 feet, thence South 89'59'09" West 92.00 feet; thence South
44 °59'09" West 39.66 feet; thence South 89 °59'09" West 416.59 feet to the point of
beginning of the easement to be described; thence continuing South 89'59'09" West 270.00
feet thence North 45'00'51" West 14.14 feet; thence North 89'59'09" East 280.00 feet;
thence South 00'00'51" East 10.00 feet to the point of beginning.
Said temporary easement expires on
384733v1 NKECT160 -152
STATE DEED TAX DUE HEREON: NONE
Dated this day of 2011.
Gordon D. Tank
Bonnie M. Tank
Myron K. Tank
Linda S. Tank
STATE OF MINNESOTA )
) SS.
COUNTY OF }
The foregoing instrument was acknowledged before me this day of
1 2011, by Gordon D. Tank and Bonnie M. Tank, husband and wife and Myron
K. Tank and Linda S. Tank, husband and wife, Grantors.
Notary Public
NOTARY STAMP OR SEAL
TFIIS INSTRUMENT DRAFTED BY:
Kennedy & Graven, Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
612 -337 -9300 (CAH)
384733v 1 NKH CT 160- (52
EXHIBIT E
DEPICTION OF TEMPORARY EASEMENT
AND
PERMANENT UTILITY EASEMENT
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384733vl NKECT160-152