RES 24-31City of Elk River
City Council
Resolution 24-31
A Resolution of the City Council of the City of Elk River Approving a
Purchase Agreement for the Transfer of Certain City -Owned Property to
PLM Properties, LLC
BE IT RESOLVED by the City Council (the "Council" of the City of Elk River,
Minnesota (the "City") as follows:
Section 1. Recitals.
1.01. The City and PLM Properties, LLC, a Minnesota limited liability company, or
an entity related thereto or affiliated therewith (the "Seller"), desire to enter into a Purchase
Agreement (the "Purchase Agreement") pursuant to which the City will transfer certain
property in the City legally described in Exhibit A attached hereto (the "Property") to the
Seller. The Seller intends to construct and equip on the Property an approximately 110,000
square foot industrial warehouse facility to be operated by Heritage Millwork, Inc., a
Minnesota corporation (the "Tenant"), as part of a relocation of and expansion to the
Tenant's existing business (the "Development").
1.02. Pursuant to the Purchase Agreement, the Seller will purchase the Property
from the City for a total purchase price of $1,378,020.60, in the form of cash in the amount
of $1.00 and with a purchase price note in the amount of $1,378,019.60 (the "Purchase Price
Note"). The terms and conditions of the Purchase Price Note shall be detailed in a
Development Assistance Agreement by and among the City, the Seller and the Tenant, to be
approved by the Council at a later date.
1.03. Pursuant to Minnesota Statutes, Section 462.356, subd. 2, the Planning
Commission of the City met on May 28, 2024, and reviewed the proposed disposal of the
Property and found that the disposal is in confornty to the City's comprehensive plan (the
"Comprehensive Plan") because the Property is designated for "business park" land use
within the Comprehensive Plan and the City's intends to sell the Property to the Seller who
plans to construct an industrial warehouse facility thereon in conformity with the land use
designation assigned by the Comprehensive Plan.
1.04. The City finds that disposal of the Property conforms to the Comprehensive
Plan and further finds that it will facilitate economic development in the City by allowing the
City to convey the Property to a private developer.
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Section 2. Documents AIproved.
1. The Council approves the Purchase Agreement in substantially the form
presented to the Council, together with any related documents or certifications necessary in
connection therewith, including without limitation the quit claim deed and all documents
and certifications referenced in or attached to the Purchase Agreement, and any other
documents necessary to transfer the Property to the Seller, all as described in the Purchase
Agreement (collectively, the "Documents") and the Mayor and the City Clerk are hereby
authorized and directed to execute the Documents on behalf of the City and to carry out, on
behalf of the City, the City's obligations thereunder when all conditions precedent thereto
have been satisfied.
2. City staff and officials are authorized to take all actions necessary to perform
the City's obligations under the Documents as a whole, including without limitation
execution of any documents or certifications to which the City is a party referenced in or
attached to the Purchase Agreement, and any other documents necessary to transfer the
Property from the Seller.
3. The approval hereby given to the Documents includes approval of such
additional details therein as may be necessary and appropriate and such modifications
thereof, deletions therefrom and additions thereto as may be necessary and appropriate and
approved by legal counsel to the City and by the officers authorized herein to execute said
documents prior to their execution; and said officers are hereby authorized to approve said
changes on behalf of the City subject to the following conditions: (a) such modifications do
not materially adversely affect the interests of the City; and (b) such modifications do not
contravene or violate any policy of the City or applicable provision of law. The execution of
any instrument by the appropriate officers of the City herein authorized shall be conclusive
evidence of the approval of such document in accordance with the terms hereof. In the
event of absence or disability of the officers, any of the documents authorized by this
resolution to be executed may be executed without further act or authorization of the
Council by any duly designated acting official, or by such other officer or officers of the
Council as, in the opinion of the City Attorney, may act in their behalf. This resolution shall
not constitute an offer and the purchase agreement shall not be effective until the date of
execution thereof.
4. Upon execution and delivery of the Documents, the officers and employees
of the City are hereby authorized and directed to take or cause to be taken such actions as
may be necessary on behalf of the City to implement the Documents.
Passed and adopted this 3`d day of June, 2024, by the City Cotokcil of the City of Elk River,
Minnesota.
)ohnj. Dietz, Mayor
ATT
Tina Allard, City Clerk
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EXHIBIT A
Legal Description of the Property
That portion of the property located in the City of Elk River, Sherburne County, Minnesota
currently legally described as Outlot B Natures Edge Business Center Fourth Addition which
will be replatted as:
Lot 1, Block 1 Nature's Edge Business Center Fifth Addition.
P0VIRE0 01
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