4.5. SR 10-12-1998ity of
River
MEMORANDUM
Item #4.5.
TO:
FROM:
DATE:
SUBJECT:
Mayor & City Council
Pat Klaers, City Adm~rator
October 12, 1998
Sale of Lot 1, Block 1, Parkview
Addition
On July 6, 1998, the City Council accepted the bid from John Lenz for Lot 1,
Block 1, Parkview Addition. The city had advertised this lot for sale and
John's bid of $58,100 was the highest bid received by the city. Following
acceptance of this bid, the city has worked with John in making some
adjustments in the easements surrounding the wetlands that are on the
property. Action on the easements/wetlands was approved by the City
Council on September 21, 1998.
At this time we are ready to move forward with the dosing for the property.
Attached for your consideration is a resolution which authorizes the mayor
and city clerk to execute the Purchase Agreement for the selling of Lot 1,
Block 1, Parkview Addition to John Lenz.
Recommendation
It is recommended the City Council approve the attached resolution which
authorizes the execution of the Purchase Agreement.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
Real Estate
Probate
Wills & Trusts
CLIFFORD C. LUNDBERG
Attorney At Law
400 Jackson Avenue
P. O. Box 326
Elk River, Minnesota 55330
Phone: (612) 441-1251
Fax: (612) 441-125
Business Law
Taxes
Accounting
October 4, 1998
Pat Klaers
Elk River City Administrator
Elk River City Hall
13065 Orono Parkway
P.O. Box 490
Elk River, MN 55330
Re: Sale of Lot 1, Block 1, Parkview Addition to John T. And Klm M. Lenz
Dear Pat:
Enclosed is the purposed Purchase Agreement signed by John T. Lenz. It would now be
appropriate for the city to pass a resolution expecting this Purchase Agreement and authorizing
the Mayor and the City Clerk to execute all documents necessary to effect the sale of this lot
according to the terms of this Purchase Agreement. Please note that the city has bound itself to
providing a title insurance policy and an abstract of title to the buyers. Also the city is under
this Purchase Agreement taking on the responsibility of putting visible markers at the lot
corners as well as staking out the drainage and wetland areas and especially the new
replacement wetland area.
I have attached a copy of the easement and replacement wetlands documents to the Purchase
Agreement intending that at closing the city will provide a Warranty Deed to the buyers and
the buyers then will execute the easement and replacement of wetland document. I note that
the wetland replacement document refers to a replacement plan on file at the office of the
LGU. It would be advisable to make sure that the buyer has a copy of this replacement plan
and perhaps it would be advisable to provide me with a copy of that also for informational
purposes. When the city has executed the attached Purchase Agreement please provide me
with a copy as executed so I can order the title insurance and abstract.
Sincerely
CCL/tnn
File:L98090
Enclosures
Real Property Law Specialist
Certified by the Minnesota State Bar Association
Resolution 98-
A Resolution of the City of Elk River
Executing Purchase Agreement and Authorizing Sale of Land
Whereas, the City of Elk River is the owner of Lot 1, Block 1, Parkview
Addition; and,
Whereas, the said land is no longer needed for public purposes and it
would be in the best interest of the City to sell said land; and,
Whereas,
the City has received a Purchase Agreement dated October 5,
1998, from John T. Lenz and Klm M. Lenz, as joint tenants, for
the purchase of said land.
Whereas, the City beheves that the terms of the Purchase Agreement are
fair and reasonable and are a benefit to the City of Elk River.
Now, Therefore, be it resolved as follows:
The City of Elk River does hereby accept said Purchase Agreement and
does hereby agree to sell Lot 1, Block 1, Parkview Addition to John T.
Lenz and Klm M. Lenz, as joint tenants, according to the terms of said
Purchase Agreement dated October 5, 1998.
That the Mayor and the City Clerk of the City of Elk River are hereby
authorized and empowered and directed to execute any and all
documents necessary to effect the sale of this land pursuant to the
terms of said Purchase Agreement.
Adopted by the City Council of the City of Elk River this 12th day of October,
1998.
Henry A. Duitsman, Mayor
ATTEST:
Sandra A. Peine, City Clerk
Form 1776 Earnest Money Contract--Without Agent (Revised 1960)
Miller/Davis Co., St. Paul, MN
PURCHASE AGREEMENT
Elk River : Minnesota October 5- ,1998
RECEIVED OF John T. l~enz and Klm M. Lenz as jOINT tENNANTS
the sum of fIVE hUNDRED AND NO/100 ( $500.00
as earnest money and in part payment for the purchase of property at XXXXX larvis St., Elk River, Mn 55330
) DOLLARS
situated in the County of Sherburne , State of Minnesota, and legally described as follows,
to-wit: Lot 1, Block 1, Parkview Addition
su~ect to Utility and Drainagex:asements show on the plat (except thaLpart vacated)
Buyer agrees to execute the attached Grant Of Easement and the attach~claration of Restrictions and Covenants for Replacemenl
3~tlancLat closing, Seller shall provide Buyer with a Title insurance policy in amount of $58:100.00 AND an abstract of title.
including the following listed personal property: this land is vacant
Seller_shall erect visine lot coaz~er markers to show location of lot boundaries at all points where monumentalizing is shown on the plat.
Seller shalLalson Stake the Drainage and wetland areas.
all of which property the undersigned hereby agree __
andaao/100
to sell to the buyer for the sum of
which the buyer agrees to pay in the following manner:
Earnest money herein paid 500. and $57:600.00
,cash, on or before
Fifty Eight Thousand One Hundred
( $58,100.00 ) DOLLARS
November 4, 1998
Subject to performance by the buyer, the seller agrees to execute and deliver a
(to be joined in by spouse, if any) conveying marketable title to said premises subject only to the following exceptions:
(a) Building and zoning laws ordinances State and Federal regulations.
(b) Restrictions relating to use or improvement of premises not subject to unreleased forfeiture.
(c) Reservation of any minerals or mineral rights to the State of Minnesota.
(d) Utility easements.
(e) Rights of tenants as follows: (unless specified, not subject to tenancies).
Warranty Deed
The buyer shall pay the real estate taxes due in the year 19 99 and any unpaid installments of special assessments payable therewith and
thereafter.
The seller further agrees to deliver possession not later than closing provided that all the
conditions of this agreement have been complied with. Unless otherwise specified this sale shall be closed on or before 60 days from the
date hereof.
In the event this property is destroyed or substantially damaged by fire or any other cause before the closing date, this agreement shall
become null and void, at the purchaser's option, and all monies paid hereunder shall be refunded to him.
The buyer and seller also mutually agree that pro rata adjustments of rents interest, insurance and city water (and in the case of
income property current operating expenses) shall be made as of closing
The seller shall, within a reasonable time after approval of this agreement, furnish an abstract of title certified to date (or a Certificate
of Title and Registered Property Abstract) both also to include proper searches covering bankruptcies, and State and Federal judgments and
liens. The buyer shall be allowed 10 days after receipt thereof for examination of said title and the making of any objections thereto, said
objections to be made in writing or deemed to be waived. If any objections are so made the seller shall be allowed 120 days to make such
title marketable. Pending correction of title the payments hereunder required shall be postponed, but upon correction of title and within 10
days after written notice, the buyer shall perform this agreement according to its terms.
If said title is not marketable and is not made within 120 days from the date of written objections thereto as above provided this
agreement shall be void, and neither principal shall be liable for damages hereunder to the other principal and all money theretofore paid by
the buyer shall be refunded; but if the title to said property be found marketable, or be so made within said time, and said buyer shall
default in any of the agreements and continue in default for a period of 10 days, then and in that case the seller may terminate this contract,
and on such termination all the payments made upon this contract shall be retained by said seller, as their respective interests may appear, as
liquidated damages, time being of the essence hereof; but this provision shall not deprive either party of the right of enforcing the specific
performance of this contract provided such contract shall not be terminated as aforesaid, and provided action to enforce such specific
performance shall be commenced within six months after such right of action shall arise.
In Presence of
Seller
City of Elk River-Mayor
In Presence of
Seller City of Elk River - City clerk
I hereby agree to purchase the said property for the price and
upon the terms above mentioned, and subject to all conditions
Buuyer Jol~Lenz
Buyer