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8.3 SR 02-22-2022Request for Action To Item Number Mayor and City Council 8.3 Agenda Section Meeting Date Prepared by General Business February 22, 2022 Justin Femrite, P.E. Public Works Director Item Description Reviewed by Property Acquisition Acceptance from Cal Portner, City Administrator MnDOT Reviewed by Action Requested Accept, by motion, the resolution authorizing the conveyance of certain property to the Minnesota Department of Transportation for city-owned property to accommodate the construction for the Highway 169 Redefine project. Background/Discussion The State of Minnesota, acting through its Department of Transportation (MnDOT), is proposing the purchase of two pieces of city property to facilitate improvements for the Highway 169 Redefine project. The first parcel (209F) is located near the intersection of Highway 169 and Main Street (Main Street Pond area). The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity. Updated: August 2020 The second (207Q) is a remnant piece that has always been used as ‘right-of-way’ on the east side of Highway 169 for Elk Hills Drive and Dodge Street. A certified appraisal is $20,000 and $24,000 for each respective property. Staff agrees with these valuations. Council is asked to approve the purchase agreement (offer to sell) and sign the warranty deed. This purchase is similar to the Council-approved purchase in June of 2021 for the parcel located near the intersection of Highway rd 169 and 193 Avenue (Northbound Liquor Store) for easement access. Financial Impact $44,000 received from MnDOT is proposed to be put into the Government Building Fund. Mission/Policy/Goal Ethical, efficient, and responsible Attachments  Right-of-way Parcel Layouts  Warranty Deeds  Purchase Agreement (Offer to Sell) and Memorandum of Conditions  Resolution N:\\Public Bodies\\Agenda Packets\\02-22-2022\\Final\\x8.3 sr 169 Redefine Offers to Sell.docx Control Section: 7106 (169=18) 901Parcel Number: 209F State Project: 7106-87RWCounty: SherburneSheet 1 of 2 Owner: City of ElkRiverScale 1 inch = 80ft. Layout sketch by Marcus VanderBrugCreated on June 19, 2020 Control Section: 7106 (169=18) 901Parcel Number: 209F State Project: 7106-87RWCounty: SherburneSheet 2of 2 Owner: City of ElkRiverScale 1 inch = 80ft. Layout sketch by Marcus VanderBrugCreated on June 19, 2020 WARRANTY DEED STATE DEED TAX DUE HEREON: $ C.S. 7106 (169=18) 901 Parcel 209F Date: County of Sherburne For and in consideration of the sum of Twenty Thousand and no/100 Dollars ($20,000.00 ), City of Elk River, a municipal corporation under the laws of the state of Minnesota, Grantor, hereby conveys and warrants to the State of Minnesota, Grantee, real property in Sherburne County, Minnesota, described as follows: All of Tract A described below: Tract A.That part of the Northeast Quarter of the Southeast Quarter of Section 34, Township 33 North, Range 26 West, Sherburne County, Minnesota, described as beginning at the Southwest comer of Outlot B of Johnson Plat, according to the plat thereof on file and of record in the office of the County Recorder in and for said Sherburne County; Thence North 00 degrees 05 minutes East, assumed bearing, along the west line of said Outlot "B" for a distance of 207.35 feet; thence South 72 degrees 56 minutes West a distance of 256.06 feet, more or less, to intersect the easterly line of the right-of-way of Trunk. Highway No.169; thence South 17 minutes 04 degrees East along said right-of-way line a distance of 42.60 feet, more or less, to an angle point in said right-of-way line; thence South 54 degrees 06 minutes 58 seconds East along said right-of-way line a distance of 159.62 feet, more or less, to intersect the North line of the right-of-way of County State Aid Highway No.12, being the westerly extension of the south line of said Outlet B of Johnson Plat; thence North 88 degrees 50 minutes East along said westerly extension of the south line of Outlet B a distance of 102.68 feet, more or less, to the point of beginning; containing 34,472 square feet, more or less. Page 1of 3 together with all hereditaments and appurtenances belonging thereto. Subject to mineral rights and utility easements of record, if any. Check box if applicable: The Seller certifies that the seller does not know of any wells on the described real property. A well disclosure certificate accompanies this document or has been electronically filed. (If electronically filed, insert WDC number .) 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. CITY OF ELK RIVER By_________________________________ Its ____________________________ And________________________________ Its ____________________________ STATE OF MINNESOTA ) )SS. COUNTY OF SHERBURNE ) The foregoing instrument was acknowledged before me this ________ day of __________________, _______, by ________________________________ and ________________________________, the ________________________________ and ________________________________ of City of Elk River, a municipal corporation under the laws of the state of Minnesota, on behalf of the municipal corporation. __________________________________________ NOTARY PUBLIC My commission expires: ______________________ Page 2of 3 This instrument was drafted by the Send tax statements to Grantee: State of Minnesota, Department ofState of Minnesota Transportation, Legal and Property Department of Transportation Management Unit District 3 Right of Way 395 John Ireland Blvd. 7694 Industrial Park Rd. St. Paul, MN55155-1800 Baxter, MN 56425-8096 Page 3of 3 Office of Land Management (2-98) RECOMMENDED FOR APPROVAL STATE OF MINNESOTA DEPARTMENT OF TRANSPORTATION Supervisor of Direct Purchase APPROVED OFFER TO SELL AND MEMORANDUM OF CONDITIONS By C.S.: 7106 (169=18) 901Parcel: 209F County: Sherburne Owners and addresses: City of Elk River, Mayor, City of Elk River, 13065 Orono Parkway, Elk River, Minnesota, 55330; For a valuable consideration, on this day of , 2022, the undersigned owners hereby offer to sell and convey to the State of Minnesota for a total consideration of Twenty Thousand and no/100 Dollars ($20,000.00) a fee simple title to the real estate or an interest therein situated in Sherburne County, Minnesota, described in the copy of the instrument of conveyance hereto attached. The undersigned parties have this day executed an instrument for the conveyance of the aforesaid real estate or an interest therein to the State of Minnesota, and have conditionally delivered the same to the State of Minnesota, which instrument shall have no effect until and unless this offer to sell and convey is accepted in writing by the Office of Land Management of the Minnesota Department of Transportation within 30 days from the date of this offer. Such notice of acceptance shall be by certified mail directed to the address appearing after our signatures hereto. If this offer is not so accepted within the time limited herein such conveyance shall be of no effect, and said instrument shall forthwith be returned to the undersigned owners. If this offer is accepted it is mutually agreed by and between the owners and the State as follows: (1) Possession of the real estate shall transfer to the State upon the date of acceptance. The owners shall have the right to continue to occupy the property or to rent same to the present occupants or others until the date of transfer of possession. Any change in occupancy shall be subject to approval and concurrence by the State. On or before the date for transfer or possession the owners will vacate the real estate and the improvements (if any) located thereon, or cause same to be vacated, remove all personal effects therefrom and have all utilities (if any) shut off by the supplier of same. No buildings appurtenances or other non-personal items or fixtures will be removed from the premises by the owners or renters, including plumbing and heating fixtures, etc. The owners shall notify the Department of Transportation as soon as the improvements are vacated. The owners will maintain the improvements during their period of occupancy and will make all necessary repairs at their own expense. The State's prospective bidders for the purchase or demolition of the improvements on the property shall have the right of entry for inspection purposes during the last 10 days of possession by the owners. (2) Title to said real estate shall pass to the State of Minnesota as of the date of said acceptance subject to conditions hereinafter stated. (3) Buildings (if any) on said real estate shall be insured by the owners against loss by fire and windstorm in the amount of present coverage or if none in force then in an amount not less than the current market value during the entire period of the owners' occupancy of the buildings on the real estate, such policy or policies of insurance to be endorsed to show the State's interest. (4) If the State of Minnesota is acquiring all or a major portion of the property, mortgages (if any) on the property shall be satisfied in full by the State of Minnesota. The amount paid by the State of Minnesota to satisfy said mortgage(s) shall be deducted from the amount to be paid to the owners under the terms of this agreement. The amount paid by the State of Minnesota to satisfy the mortgage(s) shall include interest on the mortgage(s) to date that payment is made to the mortgage holder. (5) If the State of Minnesota is acquiring only a minor portion of the property, and the property is encumbered by a mortgage, it shall be the responsibility of the owners to furnish a partial release of mortgage. The mortgage holder will be included as a payee along with the owners on the check drawn in payment for the property. Any fee charged by the mortgage holder for the partial release of mortgage must be paid for by the owners. (6) The owners will pay all delinquent (if any) and all current real estate taxes, whether deferred or not, which are a lien against the property. Current taxes shall include those payable in the calendar year in which this document is dated. The owners will also pay in full any special assessments, whether deferred or not, which are a lien against the property. The owners will also be responsible for and will pay in full any pending special assessments. The owners’ obligation to pay deferred and pending taxes and assessments shall continue after the sale and shall not merge with the delivery and acceptance of the deed. (7) If encumbrances, mechanics liens or other items intervene before the date the instrument of conveyance is presented for recording and same are not satisfied or acknowledged by the owners as to validity and amount and payment thereof authorized by the owners, said instrument of conveyance shall be returned to the owners. (8) Payment to the owners shall be made in the due course of the State's business after payment of taxes, assessments, mortgages and all other liens or encumbrances againstsaid real estate. The owners will not be required to vacate the property until the owners have received payment. (9) No payments shall be made of any part of the consideration for said sale until marketable title is found to be in the owners and until said instrument of conveyance has been recorded. (10) The owners hereby acknowledge receipt of a copy of the instrument of conveyance executed by them on this date, and a copy of this offer and memorandum. (11) It is understood that unless otherwise hereinafter stated the State acquires all appurtenances belonging to the premises. OWNERS CITY OF ELK RIVER By_________________________________ Its ____________________________ And________________________________ Its ____________________________ (Address of Owner where acceptance is to be mailed.) ________________________ ________________________ Control Section: 7106 (169=18) 901 Parcel Number: 207Q State Project: 7106-87RWCounty: Sherburne Sheet 1 of 2 Owner: City of ElkRiver Scale 1 inch = 80ft. Layout sketch by Marcus VanderBrugCreated on June 19, 2020 Control Section: 7106 (169=18) 901 Parcel Number: 207Q State Project: 7106-87RWCounty: Sherburne Sheet 2 of 2 Owner: City of ElkRiverScale 1 inch= 80ft. Layout sketch by Marcus VanderBrugCreated on June 19, 2020 WARRANTY DEED STATE DEED TAX DUE HEREON: $C.S. 7106 (169=18) 901 Parcel 207Q Date: County of Sherburne For and in consideration of the sum of Twenty Four Thousand and no/100 Dollars ($24,000.00 ), City of Elk River, a municipal corporation under the laws of the state of Minnesota, Grantor, hereby conveys and warrantsto the State of Minnesota, Grantee, real property in Sherburne County, Minnesota, described as follows: All of Tract A described below: Tract A.The North 158 feet of the South 533 feet of that part of the Northwest Quarter of the Northeast Quarter,East of Highway 169, in Section 34, Township 33 North, Range 26 West, Sherburne County, Minnesota; the title thereto being registered as evidenced by Certificate of Title No. 7934; containing 39,507 square feet, more or less. together with all hereditaments and appurtenances belonging thereto. Subject to mineral rights and utility easements of record, if any. Check box if applicable: The Seller certifies that the seller does not know of any wells on the described real property. A well disclosure certificate accompanies this document or has been electronically filed. (If electronically filed, insert WDC number .) 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. Page 1of 2 CITY OF ELK RIVER By_________________________________ Its ____________________________ And________________________________ Its ____________________________ STATE OF MINNESOTA ) )SS. COUNTY OF SHERBURNE ) The foregoing instrument was acknowledged before me this ________ day of __________________, _______, by ________________________________ and ________________________________, the ________________________________ and ________________________________ of City of Elk River, a municipal corporation under the laws of the state of Minnesota, on behalf of the municipal corporation. __________________________________________ NOTARY PUBLIC My commission expires: ______________________ This instrument was drafted by the Send tax statements to Grantee: State of Minnesota, Department of State of Minnesota Transportation, Legal and Property Department of Transportation Management Unit District 3 Right of Way 395 John Ireland Blvd. 7694 Industrial Park Rd. St. Paul, MN55155-1800 Baxter, MN 56425-8096 Page 2of 2 Office of Land Management (2-98) RECOMMENDED FOR APPROVAL STATE OF MINNESOTA DEPARTMENT OF TRANSPORTATION Supervisor of Direct Purchase APPROVED OFFER TO SELL AND MEMORANDUM OF CONDITIONS By C.S.:7106 (169=18) 901 Parcel: 207Q County: Sherburne Owners and addresses: City of Elk River, Mayor, City of Elk River, 13065 Orono Parkway, Elk River, Minnesota, 55330; For a valuable consideration, on this ____ day of __________, 2022 ,the undersigned owners hereby offer to sell and convey to the State of Minnesota for a total consideration of Twenty Four Thousand and no/100 Dollars ($24,000.00) a fee simple title to the real estate or an interest therein situated in Sherburne County, Minnesota, described in the copy of the instrument of conveyance hereto attached. The undersigned parties have this day executed an instrument for the conveyance of the aforesaid real estate or an interest therein to the State of Minnesota, and have conditionally delivered the same to the State of Minnesota, which instrument shall have no effect until and unless this offer to sell and convey is accepted in writing by the Office of Land Management of the Minnesota Department of Transportation within 30 days from the date of this offer. Such notice of acceptance shall be by certified maildirected to the address appearing after our signatures hereto. If this offer is not so accepted within the time limited herein such conveyance shall be of no effect, and said instrument shall forthwith be returned to the undersigned owners. If this offer is accepted it is mutually agreed by and between the owners and the State as follows: (1) Possession of the real estate shall transfer to the State upon the date of acceptance. The owners shall have the right to continue to occupy the property or to rent same to the present occupants or others until the date of transfer of possession. Any change in occupancy shall be subject to approval and concurrence by the State. On or before the date for transfer or possession the owners will vacate the real estate and the improvements (if any) located thereon, or cause same to be vacated, remove all personal effects therefrom and have all utilities (if any) shut off by the supplier of same. No buildings appurtenances or other non-personal items or fixtures will be removed from the premises by the owners or renters, including plumbing and heating fixtures, etc. The owners shall notify the Department of Transportation as soon as the improvements are vacated. The owners will maintain the improvements during their period of occupancy and will make all necessary repairs at their own expense. The State's prospective bidders for the purchase or demolition of the improvements on the property shall have the right of entry for inspection purposes during the last 10 days of possession by the owners. (2) Title to said real estate shall pass to the State of Minnesota as of the date of said acceptance subject to conditions hereinafter stated. (3) Buildings (if any) on said real estate shall be insured by the owners against loss by fire and windstorm in the amount of present coverage or if none in force then in an amount not less than the current market value during the entire period of the owners' occupancy of the buildings on the real estate, such policy or policies of insurance to be endorsed to show the State's interest. (4) If the State of Minnesota is acquiring all or a major portion of the property, mortgages (if any) on the property shall be satisfied in full by the State of Minnesota. The amount paid by the State of Minnesota to satisfy said mortgage(s) shall be deducted from the amount to be paid to the owners under the terms of this agreement. The amount paid by the State of Minnesota to satisfy the mortgage(s) shall include interest on the mortgage(s) to date that payment is made to the mortgage holder. (5) If the State of Minnesota is acquiring only a minor portion of the property, and the property is encumbered by a mortgage, it shall be the responsibility of the owners to furnish a partial release of mortgage. The mortgage holder will be included as a payee along with the owners on the check drawn in payment for the property. Any fee charged by the mortgage holder for the partial release of mortgage must be paid for by the owners. (6) The owners will pay all delinquent (if any) and all current real estate taxes, whether deferred or not, which are a lien against the property. Current taxes shall include those payable in the calendar year in which this document is dated. The owners will also pay in full any special assessments, whether deferred or not, which are a lien against the property.The owners will also be responsible for and will pay in full any pending special assessments. The owners’ obligation to pay deferred and pending taxes and assessments shall continue after the sale and shall not merge with the delivery and acceptance of the deed. (7) If encumbrances, mechanics liens or other items intervene before the date the instrument of conveyance is presented for recording and same are not satisfied or acknowledged by the owners as to validity and amount and payment thereof authorized by the owners, said instrument of conveyance shall be returned to the owners. (8) Payment to the owners shall be made in the due course of the State's business after payment of taxes, assessments, mortgages and all other liens or encumbrances against said real estate. The owners will not be required to vacate the property until the owners have received payment. (9) No payments shall be made of any part of the consideration for said sale until marketable title is found to be in the owners and until said instrument of conveyance has been recorded. (10) The owners hereby acknowledge receipt of a copy of the instrument of conveyance executed by them on this date, and a copy of this offer and memorandum. (11) It is understood that unless otherwise hereinafter stated the State acquires all appurtenances belonging to the premises. OWNERS CITY OF ELK RIVER By_________________________________ Its ____________________________ And________________________________ Its ____________________________ (Address of Owner where acceptance is to be mailed.) ________________________________ _________________________ ___ Resolution 22-___ A Resolution Approving the Conveyance of Certain Property to the Minnesota Department of Transportation WHEREAS, the State of Minnesota, acting through its Department of Transportation (MnDOT), has requested that the property legally described on Exhibit A (“City Property”) be conveyed to MnDOT for its use in connection with MnDOT’s Highway 169 Redefine Improvement Project; and WHEREAS, the City Council finds that conveyance of the City Property is in the public’s interest and furthers the aim and purposes of the City; and WHEREAS, the City Council finds that the sale of the City Property to MnDOT has no relationship to the City’s Comprehensive Plan. NOW, THEREFORE, BE IT RESOLVED, by at least two-thirds vote the City Council of the City of Elk River, Minnesota, as follows: The conveyance of the City Property to MnDOT is hereby approved and the Mayor and City Clerk are hereby authorized to execute and deliver all necessary documents to effectuate the conveyance. The motion for adoption of the foregoing resolution was introduced by Councilmember _______________ and 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: ________________________________________________________. nd Passed and adopted this 22 day of February 2022. John J. Dietz, Mayor ATTEST: Tina Allard, City Clerk EXHIBIT A Parcel 207Q: All of Tract A described below: Tract A: The North 158 feet of the South 533 feet of that part of the Northwest Quarter of the Northeast Quarter, East of Highway 169, in Section 34, Township 33 North, Range 26 West, Sherburne County, Minnesota; the title thereto being registered as evidenced by Certificate of Title No. 7934; containing 39,507 square feet, more or less. together with all hereditaments and appurtenances belonging thereto. Subject to mineral rights and utility easements of record, if any. Parcel 209F: All of Tract A described below: Tract A: That part of the Northeast Quarter of the Southeast Quarter of Section 34, Township 33 North, Range 26 West, Sherburne County, Minnesota, described as beginning at the Southwest comer of Outlot B of Johnson Plat, according to the plat thereof on file and of record in the office of the County Recorder in and for said Sherburne County; Thence North 00 degrees 05 minutes East, assumed bearing, along the west line of said Outlot "B" for a distance of 207.35 feet; thence South 72 degrees 56 minutes West a distance of 256.06 feet, more or less, to intersect the easterly line of the right-of-way of Trunk Highway No.169; thence South 17 minutes 04 degrees East along said right-of-way line a distance of 42.60 feet, more or less, to an angle point in said right-of-way line; thence South 54 degrees 06 minutes 58 seconds East along said right-of-way line a distance of 159.62 feet, more or less, to intersect the North line of the right-of-way of County State Aid Highway No. 12, being the westerly extension of the south line of said Outlet B of Johnson Plat; thence North 88 degrees 50 minutes East along said westerly extension of the south line of Outlet B a distance of 102.68 feet, more or less, to the point of beginning; containing 34,472 square feet, more or less.