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4.15. SR 12-15-2014 �i EOty lk Request for Action River To Item Number Mayor and City Council 4.15 Agenda Section Meeting Date Prepared by Consent Agenda December 15, 2014 Michael Hecker, Parks and Recreation Director Item Description Reviewed by Acceptance of the Houlton Property Cal Portner, City Administrator Reviewed by Action Requested Adopt,by motion, a resolution acknowledging acceptance of the Houlton farm as real property. Background/Discussion City Council approved the Donation Agreement for the Houlton farm property on October 6, 2014. The city will take ownership of the property after the closing scheduled Tuesday, December 16. According to state statute, the city must have a resolution accepting the donation of real property. The attached resolution completed by our attorney is pursuant to the terms of the donation agreement. Financial Impact As outlined in the donation agreement, the city will be responsible for the continued operations and maintenance of the property. Attachments • Resolution Acknowledging Donation of Houlton Property • Donation Agreement P0WInII a Template Updated 4/14 [NATUREJ City of Elk River Councilmember introduced the following resolution and moved its adoption: Resolution 14- A Resolution of the City of Elk River Approving Acceptance of a Donation of Real Property WHEREAS, The Trust for Public Land, a nonprofit California public benefit corporation authorized to do business in TNErinesota as The Trust for Public Land, Inc. is acquiring fee ownership ("TPL") of real property located within the City of Elk River ("City") described on the attached Exhibit"A" (the "Property"); and WHEREAS, TPL desires to donate the Property pursuant to the terms of the Donation Agreement dated October 6,2014 ("Agreement") between the City and TPL,which Agreement was approved by the Elk River City Council on October 6,2014;and W H E REAS, the City and TPL have agreed that the Property will be conveyed by TPL to the City by a Limited Warranty Deed in satisfaction of Paragraph 6 of the Agreement; and WHEREAS, Minn. Stat. § 465.03 requires that the donation of real or personal property be accepted by a resolution of the City Council adopted by a two-thirds majority of its members. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELK RIVER, MINNESOTA: 1. The City Council accepts the donation of the Property pursuant to the terms of the Agreement. 2. The Mayor and City Clerk are authorized and directed to execute all documents, and take all appropriate measures to acquire the Property under the terms of the Agreement. The motion for adoption of the foregoing resolution was duly seconded by Councilmember , and upon vote being taken thereon, the following voted in favor thereof- and the following against: ,whereupon said resolution was declared duly passed and adopted. The following members were present: and the following absent: row € R10 8 NATUREI Passed and adopted this 15"' day of December 2014. John J. Dietz,Mayor ATTEST: Tina Allard, City Clerk POWERED 0Y 1`4 U EXHIBIT "A" The following real property located in the County of Sherburne, State of Minnesota, legally described as follows: Government Lots 3, 4 and 6, Section 4, Township 32, Range 26, Sherburne County, Minnesota; together with Island D and Island E, as shown on a Certificate of Survey, prepared by Rick M. Blom, PLS, John Oliver & Associates, Inc., dated 8/5/05 and last revised 1/15/07. AND That part of Government Lot 2, Section 4, Township 32, Range 26, Sherburne County, Minnesota, lying westerly and southerly of the thread of the Elk River; AND Government Lot 5, Section 4, Township 32, Range 26, Sherburne County, Minnesota, EXCEPT that part thereof lying within the following described property: Beginning at the Northwest corner of said Government Lot 5; thence North, assumed bearing, along the West line of Government Lot 1, Section 33, Township 33, Range 26, Sherburne County, Minnesota, a distance of 130.50 feet; thence East at right angles a distance of 556.50 thence South 47 degrees 29 minutes East a distance of 247.53 feet; thence South 33 degrees 24 minutes 34 seconds West a distance of 491 feet, more or less, to intersect the southwesterly line of said Government Lot 5; thence Northwesterly along said Southwesterly line of Government Lot 5 to intersect the West line of said Government Lot 5; thence North along said West line of Government Lot 5 a distance of 113 feet, more or less, to the point of beginning. Lots 1, 2, 3 and 4, Block 6, of the recorded plat of Orono, Sherburne County, Minnesota. Lot 5 and the easterly half of Lot 4, Block 7, as measured along the northerly and southerly lines of said Lot 4, of the recorded plat of Orono, Sherburne County, Minnesota. That part of the West Half of the Southeast Quarter of Section 33, Township 33, Range 26, Sherburne County, Minnesota lying southerly of the thread of the Elk River. AND That part of the East Half of the Southwest Quarter of Section 33, Township 33, Range 26, Sherburne County, Minnesota, described as follows: Beginning at the Southwest corner of said East Half of the Southwest Quarter; thence north along the West line of said East Half of the Southwest Quarter to intersect the southerly line of Second Street, according to the recorded plat of Orono; thence easterly along the southerly line of 1`4Af- Second Street to the easterly line of Pine Street (now known as Watson Avenue); thence northerly along the easterly line of said Pine Street to a point 80 feet southerly of the southwesterly corner of Lot 1, Block 7, said plat of Orono, as measured along the easterly line of Pine Street; thence easterly on a line parallel with the southerly line of said Block 7, a distance of 99 feet; thence northerly parallel with the westerly line of said Lot 1 to the southerly line of said Block 7; thence easterly along the southerly line of said Block 7 to the southwesterly corner of Lot 3, said Block 7, thence southerly at right angles 66 feet; thence easterly parallel with the southerly line of said Block 7 a distance of 98.91 feet to the southerly extension of the easterly line of the westerly half of Lot 4, said Block 7, as measured along the northerly and southerly lines of said Lot 4; thence northerly along said southerly extension to the southerly line of said Lot 4; thence easterly along the southerly line of said Block 7 to the southerly corner said Block 7, thence easterly to the southwesterly corner of Block 6, said plat of Orono; thence easterly along the southerly line of said Block 6 and its easterly extension to the thread of the Elk River; thence easterly along the thread of the Elk River to the East line of said East Half of the Southwest Quarter; thence south along said East line of the East Half of the Southwest Quarter to the Southeast corner of said East Half of the Southwest Quarter; thence west along the South line of said East Half of the Southeast Quarter to the point of beginning. AND That part of Government Lot 1, Section 33, Township 33, Range 26, Sherburne County, Minnesota, described as follows: Beginning at the Southwest corner of said Government Lot 1, thence north along the West line of said Government Lot 1, a distance of 130.50 feet; thence east deflecting 90 degrees to the right, a distance of 556.50; thence northerly deflecting 90 degrees 32 minutes 03 seconds on a line run to the northeasterly corner of Block 13 of the plat of Orono, a distance of 253.01 feet to its point of intersection with the center line of Third Street (now vacated) in said plat of Orono; thence easterly along the center line of said Third Street to the southerly extension of the easterly line of Block 14 in said plat of Orono; thence northerly to the southeasterly corner of said Block 14; thence easterly along the extension of the southerly line of said Block 14 to the easterly line of Walnut Street in said plat of Orono (now known as Xenia Street); thence northerly along the easterly line of said Walnut Street to the southerly line of Second Street in said plat of Orono; thence easterly along the southerly line of Second Street to the East line of said Government Lot 1; thence south along the East line of said Government Lot 1 to the Southeast corner of said Government Lot l; thence west along the South line of said Government Lot 1 to the point of beginning. EXCEPT that part of said Government Lot 1 described as follows: Beginning at the Southwest corner of said Government Lot 1; thence North, assumed bearing, along the West line of said Government Lot 1 a distance of 130.50 feet; thence East at right angles 556.50 feet; thence South 47 degrees 29 minutes East to the South line of said Government Lot 1; thence west along the South line of said Government Lot 1 to the point of beginning. AND P O W E R E D 0 Y 1`4 U That part of Island F, as shown on a Certificate of Survey prepared by Rick M. Blom, PLS, John Oliver & Associates, Inc., dated 8/5/05, and last revised 1/15/07, also known as Race Island, as shown on the plat of Orono, lying northerly of the easterly extension of the southerly line of Block 6 of the recorded plat of Orono. That part of Government Lot 2, Section 33, Township 33, Range 26, Sherburne County, Minnesota, lying westerly of the thread of the Elk River; also known as that part of Lot 2, Auditors Subdivision No. 3, Sherburne County, Minnesota, lying westerly of the thread of the Elk River. Government Lot 1, Section 5, Township 32, Range 26, Sherburne County, Minnesota. AND That part of Government Lots 2 and 3, Section 5, Township 32, Range 26, Sherburne County, Minnesota, lying easterly of the recorded plat of Mississippi Oaks Second Addition and lying easterly of the recorded plat of Mississippi Oaks Third Addition. AND Islands A, B and C, as shown on a Certificate of Survey prepared by Rick M. Blom, PLS, John Oliver& Associates, Inc., dated 8/5/05 and last revised 1/15/07. That part of Government Lot 1, Section 32, Township 33, Range 26, Sherburne County, Minnesota lying easterly and southerly of the thread of the Mississippi River backwater, said thread being the common line with Mississippi Oaks Third Addition, and lying westerly of the southerly extension of the West line of the recorded plat of Orono Hills Addition. AND That part of Government Lot 1 and Government Lot 2, Section 32, Township 33, Range 26, Sherburne County, Minnesota, lying southerly of the recorded plat of Orono Hills Addition, lying easterly of the southerly extension of the West line of said Orono Hills Addition and lying southerly of the southwesterly extension of the southeasterly line of Lot 5, Block 2, said Orono Hills Addition. POWERED 0Y 1`4 U OCT 2 7 2014 DONATION AGREEMENT THIS DONATION AGREEMENT ("Agreement"), having an Effective Date of October 6, 2014, is entered into by and between THE TRUST FOR PUBLIC LAND, a nonprofit California public benefit corporation authorized to do business in Minnesota as The Trust For Public Land, Inc. ("Seller") and THE CITY OF ELK RIVER, MINNESOTA, a municipal corporation under the laws of the State of Minnesota("Buyer"). RECITALS: A. The addresses and telephone numbers of the parties to this Agreement are as follows. Telephone numbers are included for information only. SELLER: BUYER: The Trust for Public Land The City of Elk River 2610 University Avenue, Suite 300 13065 Orono Parkway St. Paul, MN 55114 Elk River, MN 55330 Attn: Bob McGillivray Attn: Calvin Portner Tel: (651) 999-5307 Tel: (763) 635-1001 Fax: (651) 917-2248 Fax: (763) 635-1090 With copies to: With copies to: The Trust for Public Land 2610 University Avenue, Suite 300 St. Paul, MN 55114 Attn: Mike Zender Tel: (651) 999-5319 Tel: Fax: (651) 917-2248 Fax: B. Houlton Olson Family, LLLP ("Current Owner") is the owner of certain real property in Sherburne County, Minnesota legally described on Exhibit A attached hereto and incorporated herein by this reference. Said real property, and any and all improvements, fixtures, timber, water and/or minerals located thereon and any and all rights appurtenant thereto including but not limited to timber rights, water rights, grazing rights, access rights and mineral rights, shall be referred to in this Agreement as the "Property" or the "Subject Property." C. Seller has proposed to acquire the Property from Current Owner. D. Seller desires and Buyer agrees to receive the Property from Seller by Donation upon Seller's acquisition of the Property from Current Owner in accordance with the terms and conditions set forth in this Agreement. 178009v4 1 NOW THEREFORE, IN CONSIDERATION OF TEN AND 00/100 DOLLARS ($10.00) AND OTHER VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, THE PARTIES AGREE AS FOLLOWS: I. Donation. Seller agrees to convey to Buyer and Buyer agrees to receive such conveyance from Seller of the Subject Property on the terms and conditions set forth herein. 2. Purchase Terms. The purchase price (the "Purchase Price") for the Subject Property shall be $0.00. 3. Contingencies. (a) Seller Contingencies. Buyer acknowledges that Seller does not presently own the Subject Property and that Seller's duties hereunder and Buyer's rights hereunder are both expressly contingent upon the acquisition by Seller of the Subject Property. In the event Seller does not acquire the Subject Property from Current Owner this Agreement shall terminate, and thereafter neither party shall have any further obligations hereunder. (b) Buyer Contingencies. (i) The representations and warranties of Seller set forth in this Agreement must be true as of the date of this Agreement and on the Closing Date, and Seller shall have delivered to Buyer at Closing a certificate dated the Closing Date, signed by Seller, certifying that such representations and warranties are true as of the Closing Date; (ii) Buyer determining on or before the expiration of the Inspection Period that it is satisfied, in its sole discretion, with the results of matters disclosed by Buyer's inspection of the Subject Property and the EA Reports; (iii) Buyer determining that it is satisfied with the title to the Property; (collectively the "Buyer's Contingencies"). Buyer shall use its best efforts to satisfy Buyer's Contingencies prior to the Closing date. In the event that the Buyer's Contingencies are not met by the date of Closing, Seller shall have the option to terminate this Agreement or extend this Agreement by written notice to Buyer, which written notice shall specify the period of such extension. In no event shall this Agreement be extended for more than six (6) months after the Closing Date without a written amendment executed by both parties. 4. Condition of the Subject Property. (a) Buyer agrees that from the Effective Date through, to and including October 7, 2014, or such other date as provided herein (the "Inspection Period"), Buyer may: 178009v4 2 (i) make an independent investigation of the physical condition of the Subject Property including but not limited to, the condition of the soil, the presence of hazardous materials or contaminants, other physical characteristics, and compliance with any statutes, ordinances or regulations; (ii) study all aspects or circumstances of the Subject Property which Buyer deems material or relevant; and (iii) make all inspections and verifications which Buyer deems necessary for the completion of Buyer's due diligence review for the transactions covered by this Agreement. Buyer shall be solely responsible for conducting any inspections or tests required by law at its sole cost and expense. Seller has provided Buyer with a Phase I Environmental Site Assessment prepared by Braun Intertec and any reports resulting from additional studies (the "EA Reports"). Should Buyer determine in its sole discretion based on its investigation of the Subject Property and its review of the EA Reports that the condition of the Subject Property is unacceptable to Buyer, prior to the expiration of the Inspection Period, Buyer shall so notify Seller in writing of its objections ("Objections"). In the event that Seller is unable to cause Buyer's Objections to be remedied, Buyer may elect to: (a) terminate this Agreement in which case Buyer shall have no obligation to acquire the Subject Property, and the parties' obligations hereunder shall terminate or (b) proceed to Closing, and accept title to the Property subject to such Objection(s) which are not remedied. Buyer's failure to make timely Objections will constitute a waiver of its rights to raise any Objections hereunder and Buyer will accept title to the Subject Property subject to such conditions. Buyer may not disclose any information, including environmental assessment reports, Buyer obtains through the investigations and inspections performed in accordance with this Section unless required to disclose such information pursuant to a court order or as otherwise required by law. Before entering upon the Subject Property to conduct the investigations provided for herein, Buyer shall notify Seller and Seller shall have obtained Current Owner's permission for Buyer to enter upon the Subject Property to conduct said investigations. If Buyer does any excavation, Buyer agrees to restore the Subject Property to its natural condition if Buyer's acquisition of the Subject Property is not consummated as contemplated by this Agreement. (b) Buyer agrees that Seller has made no representations or warranties with respect to the Subject Property except as set forth in this Agreement. (c) Buyer will not undertake any activity which will jeopardize Seller's efforts to acquire the Subject Property. (d) Buyer agrees to accept the Subject Property "as is," in its present condition and/or as otherwise required pursuant to the terms of this Agreement, subject to 178009v4 3 all reasonable use, wear and tear, and deterioration of any kind in, of, or to the Subject Property. 5. Closing. Final settlement of the obligations of the parties hereto shall occur on or before November 15, 2014 (the "Closing"). In addition, the Closing shall be delayed for any extension of the Inspection Period or any period of time that Seller is attempting to cause the cure of any objections raised by Buyer pursuant to Sections 4 or 6. This transaction shall be closed in escrow with Land Title, Inc., Attn: Larry Mountain ("Escrow'Holder") in accordance with the general procedures then in use by Escrow Holder, with such additional special procedures as may be required to conform with the terms and conditions of this Agreement. The cost of the escrow and closing fee shall be paid by Seller. 6. Title. Seller shall by limited warranty deed convey to Buyer its interest in the Subject Property, subject only to the following: (i) any federal, state or local laws, ordinances, regulations and/or orders whatsoever; (ii) the lien of real property taxes and the lien of special assessments and interest due thereon, if any, payable in the year of closing which by the terms of this Purchase Agreement are to be paid or assumed by the Purchaser; (iii) such other title objections and exceptions as may be waived by Buyer; (iv) any restrictions or conditions required by any entity providing grants or funding for the acquisition of the Property; and (v) the standard printed exceptions on the form of title insurance issued pursuant to Section 7. The foregoing shall be referred to collectively as "Permitted Exceptions." Seller has delivered to Buyer a copy of the commitment for title insurance issued by Escrow Holder committing the company to issue an Owner's Policy insuring title to the Subject Property in Seller. Buyer may obtain a title commitment from Escrow Holder committing the company to issue an Owner's Policy insuring title to the Subject Property in Buyer. On or before October 7, 2014, Buyer shall advise Seller in writing of any exceptions other than the Permitted Exceptions which Buyer will require to be removed on or before Closing (such exceptions which are not Permitted Exceptions being hereafter referred to as "Impermissible Exceptions"). In the event Seller is unable to cause Current Owner to remove any such Impermissible Exceptions by Closing, Buyer may elect to terminate this Agreement in which case Buyer shall have no obligation to purchase the Subject Property and the parties' obligations hereunder shall terminate. If Buyer fails to notify Seller of any objection to exceptions in the time period provided herein, Buyer shall be deemed to have accepted all matters set forth in the title commitment and the same shall be deemed Permitted Exceptions. l7soo9v4 4 7. Title Insurance. Buyer may, at its option, and at Seller's cost and expense procure a standard owner's policy of title insurance from the Escrow Holder insuring that Seller's interest in the Subject Property is vested in Buyer upon Closing, subject to the exceptions which are acceptable or are deemed acceptable pursuant to Section 6. Seller shall pay for the base premium,but not for endorsements to the policy. 8. Seller's Promise not to Further Encumber. Seller shall not, without the prior written consent of Buyer, make any leases, contracts, options or agreements whatsoever affecting the Subject Property which would in any manner impede Seller's ability to perform hereunder and deliver title as agreed herein. 9. Seller's Representations. Seller makes the following representations: (a) At Closing, Seller will have the power to sell, transfer and convey all of Seller's right, title and interest in and to the Subject Property in accordance with the terms and conditions of this Agreement. (b) Seller represents and warrants that it is not a"foreign corporation"as defined in Section 1445 of the Internal Revenue Code. Seller's United States Taxpayer Identification Number is 23-7222333. (c) Well disclosure. [Check one of the following:] Seller certifies that Seller does not know of any wells on the Property. X Wells on the Property are disclosed by Seller on the attached Well (d) Disclosure of individual on-site sewage treatment system. [Check one of the following:] Seller certifies that Seller does not know of any individual on-site sewage X Individual on-site sewage treatment systems on the Property are disclosed by Seller on the attached Disclosure form. (e) Protected Historical Sites. [Select either one of the following:] X_ Seller represents that Seller does not know if there are historical, native American, or archeological materials on or in the Property that might be protected by law. To Seller's knowledge, the property does not have any American Indian burial grounds, other human burial grounds, ceremonial earthworks, historical materials, and/or other archeological sites that are protected by federal or state law. City's obligation to close is contingent upon City determining to City's satisfaction that the 178009v4 5 property does not have any American Indian burial grounds, other human burial grounds, ceremonial earthworks, historical materials, and/or other archeological sites that are protected by federal or state law. 10. Closing Documents. At the Closing, Seller shall execute and/or deliver to Buyer the following (collectively the "Closing Documents"): (a) Limited Warranty Deed. A Limited Warranty Deed in recordable form and reasonably satisfactory to Buyer. (b) Seller's Affidavit. A standard form affidavit by Seller indicating that on the date of Closing there are no outstanding, unsatisfied judgments, tax liens or bankruptcies against or involving Seller or the Property; that there has been no skill, labor or material furnished to the Property for which payment has not been made or for which mechanic's liens could be filed; and that there are no other unrecorded interests in the Property. (c) Non-Foreign Person Certification. A certification in form and content satisfactory to the parties hereto and their counsel, properly executed by Seller, containing such information as shall be required by the Internal Revenue Code, and the regulations issued there under, in order to establish that Seller is not a "foreign person" as defined in §1445(f)(3) of such Code and such regulations. (d) Storage Tanks. If required, an affidavit with respect to storage tanks pursuant to Minn. Stat. § 116.48. (e) Well Certificate. If there is a well located on the Property, a well disclosure certificate in form and substance true to form for recording. (f) Certification. A certification that the representations and/or warranties made by Seller is materially the same as were in existence on the date of this Agreement or noting any changes thereto; (g) Other Documents. All other documents reasonably determined by either party or the title insurance company to be necessary to transfer and provide title insurance for the Property. 11. Prorations, Closing Expenses and Fees. Real estate taxes due and payable in 2014 and 2015 (estimated if necessary) will be paid by Seller. Special assessments, levied, pending or constituting a lien against the Subject Property, if any, will be paid by Current Owner. Current Owner is responsible for paying any additional taxes, penalties and interest, including but not limited to compensatory or roll back taxes, on the Subject Property arising from the termination of a preferential tax classification of the Subject Property. Current Owner 178009v4 6 shall pay on Date of Closing or provide for payment of any deferred real estate taxes (including "Green Acres"taxes under Minn. Stat. § 273.111) payment of which is required as a result of the Closing of this sale and the recording of the Deed. Provision for payment shall be by payment into escrow of 1.5 times the estimated payoff amount of the deferred taxes. Any documentary tax or real property transfer tax arising out of the conveyance of the Subject Property shall be paid by Seller. The escrow and closing fee(s) charged by Escrow Holder shall be paid by Seller. Other fees and charges not otherwise allocated in this Agreement shall be paid by Seller. 12. Notices. All notices pertaining to this Agreement shall be in writing delivered to the parties hereto personally by hand, telecopier, courier service or Express Mail, or by first class mail, postage prepaid, at the addresses set forth in Recital A. All notices shall be deemed given when deposited in the mail, first class postage prepaid, addressed to the party to be notified; or if delivered by hand, telecopier, courier service or Express Mail, shall be deemed given when delivered. The parties may, by notice as provided above, designate a different address to which notice shall be given. 13. Attorneys' Fees. If any legal action is brought by either party to enforce any provision of this Agreement, the prevailing party shall be entitled to recover from the other party reasonable attorneys' fees and court costs in such amounts as shall be allowed by the court. 14. Remedies Upon Default. In the event Buyer defaults in the performance of any of Buyer's obligations under this Agreement, Seller shall, in addition to any and all other remedies provided in this Agreement, including the right to retain Deposit, or at law or in equity, have the right of specific performance against Buyer. In the event Seller defaults in the performance of any of Seller's obligations under this Agreement, Buyer shall, in addition to any and all other remedies provided in this Agreement, or at law or in equity, have the right of specific performance against Seller. 15. No Broker's Commission. Each party represents to the other that it has not used a real estate broker in connection with this Agreement or the transaction contemplated by this Agreement. In the event any person asserts a claim for a broker's commission or finder's fee, against one of the parties to this Agreement, the party on account of whose conduct the claim is asserted will hold the other party harmless from said claim. 16. Time of the Essence. Time is of the essence of this Agreement. 17. Binding on Successors. This Agreement shall be binding not only upon the parties hereto, but also upon their heirs, personal representatives, assigns, and other successors in interest. 18. Additional Documents. Seller and Buyer agree to execute such additional documents, including escrow instructions, as may be reasonable and necessary to carry out the provisions of this Agreement. 178009v4 7 19. Assignment. Neither Buyer nor Seller may assign their respective interests under this Agreement without the written consent of the other. 20. Entire Agreement; Modification; Waiver. This Agreement constitutes the entire agreement between Buyer and Seller pertaining to the subject matter contained in it and supersedes all prior and contemporaneous agreements, representations, and understandings. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by all the parties. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver. 21. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and which together shall constitute one and the same agreement. In addition, facsimile, .pdf or photocopied signatures of or on behalf of either Buyer or Seller shall be satisfactory to both Buyer and Seller. 22. Severability. Each provision of this Agreement is severable from any and all other provisions of this Agreement. Should any provision(s) of this Agreement be for any reason unenforceable, the balance shall nonetheless be of full force and effect. 23. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 24. Acceptance of Reed. The acceptance by Buyer of the deed shall be deemed to be full performance by Seller of, and shall discharge Seller from, all obligations hereunder and Seller shall have no further liability hereunder. 25. Risk of Loss. All risk of loss shall be with Seller until Closing. In the event the Subject Property is destroyed or damaged in a manner that results in a material loss of value of the Property prior to Closing, Buyer shall have the right at its option to terminate this Agreement by written notice to Seller, in which case this Agreement shall terminate, and the parties shall have no further obligation to each other hereunder. 26. Condemnation. In the event of a taking of all or any part of the Subject Property under the power of eminent domain prior to the Closing, Buyer shall proceed to Closing with an assignment by Seller of all Seller's right, title and interest in and to any and all such awards and proceeds. 27. Possession. Seller shall deliver possession of the Subject Property concurrently with Closing in accordance with Section 4(d), Section 6 and Section 31. 28. Buyer's Representation. Buyer represents that it has full power and authority to enter into this Agreement and the person signing this Agreement for Buyer has full power and 178009A 8 authority to sign for Buyer and to bind it to this Agreement. 29. Miscellaneous. In the event that any of the deadlines set forth herein end on a Saturday, Sunday or legal holiday, such deadline shall automatically be extended to the next business day which is not a Saturday, Sunday or legal holiday. The term "business days" as may be used herein shall mean all days which are not on a Saturday, Sunday or legal holiday. 30. Si na e. The parties agree that permanent signage on the Property shall provide for recognition of the role of Seller and its funding sources in this acquisition, said signage being subject to the approval of Seller. This section shall survive the delivery of the deed. 31. Current Owner's Rights. During the Term hereof, Current Owner shall have the right to remove all or a portion of the irrigation system located on the Property. In addition, Current Owner shall have fifteen (15) days post-closing to vacate the buildings located on the Property, leaving them in "broom clean" condition, and shall have the right during said fifteen (15) day period to continue to remove the irrigation system. IN WITNESS of the foregoing provisions the parties have executed and delivered this Agreement as of the date set forth below. SELLER: BUYER: THE TRUST FOR PUBLIC LAND, a THE CITY OF ELK RIVER, a municipal nonprofit California public benefit corporation under the laws of the State of corporation authorized to conduct business Minnesota in Minnesota as The Trust For Public Land, Inc. By: By: - — Name: 1' o 4� C5 • lf�C Name: �%)1K� �.� U"<<��l��bcz,�� Title: 6�1 oy- Title: r Date:—\C)— Date: p B Name: Title: Date: 178009v4 9 EXHIBIT A (Legal Description) The following real property located in the County of Sherburne, State of Minnesota, legally described as follows: Government Lots 3, 4 and 6, Section 4, Township 32, Range 26, Sherburne County, Minnesota; together with Island D and Island E, as shown on a Certificate of Survey, prepared by Rick M. Blom, PLS, John Oliver&Associates, Inc., dated 8/5/05 and last revised 1/15/07. AND That part of Government Lot 2, Section 4, Township 32, Range 26, Sherburne County, Minnesota, lying westerly and southerly of the thread of the Elk River; AND Government Lot 5, Section 4, Township 32, Range 26, Sherburne County, Minnesota, EXCEPT that part thereof lying within the following described property: Beginning at the Northwest corner of said Government Lot 5; thence North, assumed bearing, along the West line of Government Lot 1, Section 33, Township 33, Range 26, Sherburne County, Minnesota, a distance of 130.50 feet; thence East at right angles a distance of 556.50 thence South 47 degrees 29 minutes East a distance of 247.53 feet; thence South 33 degrees 24 minutes 34 seconds West a distance of 491 feet, more or less, to intersect the southwesterly line of said Government Lot 5; thence Northwesterly along said Southwesterly line of Government Lot 5 to intersect the West line of said Government Lot 5; thence North along said West line of Government Lot 5 a distance of 113 feet, more or less,to the point of beginning. Lots 1, 2, 3 and 4, Block 6, of the recorded plat of Orono, Sherburne County, Minnesota. Lot 5 and the easterly half of Lot 4, Block 7, as measured along the northerly and southerly lines of said Lot 4, of the recorded plat of Orono, Sherburne County, Minnesota. That part of the West Half of the Southeast Quarter of Section 33, Township 33, Range 26, Sherburne County, Minnesota lying southerly of the thread of the Elk River. AND That part of the East Half of the Southwest Quarter of Section 33, Township 33, Range 26, Sherburne County, Minnesota, described as follows: Beginning at the Southwest corner of said East Half of the Southwest Quarter; thence north along the West line of said East Half of the Southwest Quarter to intersect the southerly line of Second Street, according to the recorded plat of Orono; thence easterly along the southerly line of Second Street to the easterly line of Pine Street (now known as Watson Avenue); thence northerly along the easterly line of said Pine Street to a point 80 feet southerly of the southwesterly corner of Lot 1, Block 7, said plat of 178009v4 10 Orono, as measured along the easterly line of Pine Street; thence easterly on a line parallel with the southerly line of said Block 7, a distance of 99 feet; thence northerly parallel with the westerly line of said Lot 1 to the southerly line of said Block 7; thence easterly along the southerly line of said Block 7 to the southwesterly corner of Lot 3, said Block 7, thence southerly at right angles 66 feet; thence easterly parallel with the southerly line of said Block 7 a distance of 98.91 feet to the southerly extension of the easterly line of the westerly half of Lot 4, said Block 7, as measured along the northerly and southerly lines of said Lot 4; thence northerly along said southerly extension to the southerly line of said Lot 4; thence easterly along the southerly line of said Block 7 to the southerly corner said Block 7, thence easterly to the southwesterly corner of Block 6, said plat of Orono; thence easterly along the southerly line of said Block 6 and its easterly extension to the thread of the Elk River; thence easterly along the thread of the Elk River to the East line of said East Half of the Southwest Quarter; thence south along said East line of the East Half of the Southwest Quarter to the Southeast corner of said East Half of the Southwest Quarter; thence west along the South line of said East Half of the Southeast Quarter to the point of beginning. AND That part of Government Lot 1, Section 33, Township 33, Range 26, Sherburne County, Minnesota, described as follows: Beginning at the Southwest corner of said Government Lot 1, thence north along the West line of said Government Lot 1, a distance of 130.50 feet; thence east deflecting 90 degrees to the right, a distance of 556.50; thence northerly deflecting 90 degrees 32 minutes 03 seconds on a line run to the northeasterly corner of Block 13 of the plat of Orono, a distance of 253.01 feet to its point of intersection with the center line of Third Street (now vacated) in said plat of Orono; thence easterly along the center line of said Third Street to the southerly extension of the easterly line of Block 14 in said plat of Orono; thence northerly to the southeasterly corner of said Block 14; thence easterly along the extension of the southerly line of said Block 14 to the easterly line of Walnut Street in said plat of Orono (now known as Xenia Street); thence northerly along the easterly line of said Walnut Street to the southerly line of Second Street in said plat of Orono; thence easterly along the southerly line of Second Street to the East line of said Government Lot 1; thence south along the East line of said Government Lot 1 to the Southeast corner of said Government Lot l; thence west along the South line of said Government Lot 1 to the point of beginning. EXCEPT that part of said Government Lot I described as follows: Beginning at the Southwest corner of said Government Lot 1; thence North, assumed bearing, along the West line of said Government Lot 1 a distance of 130.50 feet; thence East at right angles 556.50 feet; thence South 47 degrees 29 minutes East to the South line of said Government Lot 1; thence west along the South line of said Government Lot 1 to the point of beginning. AND That part of Island F, as shown on a Certificate of Survey prepared by Rick M. Blom, PLS, John Oliver & Associates, Inc., dated 8/5/05, and last revised 1/15/07, also known as Race Island, as 178009v4 11 shown on the plat of Orono, lying northerly of the easterly extension of the southerly line of Block 6 of the recorded plat of Orono. That part of Government Lot 2, Section 33, Township 33, Range 26, Sherburne County, Minnesota, lying westerly of the thread of the Elk River; also known as that part of Lot 2, Auditors Subdivision No. 3, Sherburne County, Minnesota, lying westerly of the thread of the Elk River. Government Lot 1, Section 5, Township 32, Range 26, Sherburne County, Minnesota. AND That part of Government Lots 2 and 3, Section 5, Township 32, Range 26, Sherburne County, Minnesota, lying easterly of the recorded plat of Mississippi Oaks Second Addition and lying easterly of the recorded plat of Mississippi Oaks Third Addition. AND Islands A, B and C, as shown on a Certificate of Survey prepared by Rick M. Blom, PLS, John Oliver&Associates, Inc., dated 8/5/05 and last revised 1/15/07. That part of Government Lot 1, Section 32, Township 33, Range 26, Sherburne County, Minnesota lying easterly and southerly of the thread of the Mississippi River backwater, said thread being the common line with Mississippi Oaks Third Addition, and lying westerly of the southerly extension of the West line of the recorded plat of Orono Hills Addition. AND That part of Government Lot 1 and Government Lot 2, Section 32, Township 33, Range 26, Sherburne County, Minnesota, lying southerly of the recorded plat of Orono Hills Addition, lying easterly of the southerly extension of the West line of said Orono Hills Addition and lying southerly of the southwesterly extension of the southeasterly line of Lot 5, Block 2, said Orono Hills Addition. 178009v4 12