7.1. SR 03-15-1998
ITEM 7. 1.
TO:
MAYOR AND CITY COUNCIL
SUBJECT:
PATRICK KLAERS, CITY ADM~TOR
MARCH 11, 1993 .~
UPA/CITY PURCHASE AGREEMENT
FROM:
DATE:
The City and UPA representatives have had discussions for over
a year regarding the old City Hall (Creamery) site. Staff was
directed to negotiate with UPA for this land purchase as UPA is
the adjacent property owner and had expressed interest in this
property. After reviewing all the potential land uses for this
site, the unofficial park and ride activity that exists on this
site, and the water treatment building that exists on this
site, it was finally agreed upon that UPA would purchase only
the property that was formally known as UPA Drive. The terms
and conditions are outlined in the attached purchase agreement.
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If this sale tak~s place, staff needs to discuss with the
Council some landscaping plans for the balance of the property,
the park and ride operation, and any future use of the site.
The restrictive covenants allows for a chamber facility and
this may receive some Council discussion at a future meeting.
No Planning Commission review of this sale is needed if the
Council (by 4-5 vote) finds that this transaction has no
relationship to our Comprehensive Plan and I believe that this
is true in this case.
Staff believes that the purchase agreement terms and conditions
are fair and appropriate as is the purchase price. Staff
recommends that the Council accept the purchase agreement as
outlined and directs the staff to prepare the documents for
signatures to finalize the purchase of this property.
.
720 Dodge Avenue N.W., Elk River, Minnesota 55330 (612) 441-7420
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GllEEN-S.ller'. COI'Y
PINIC-Duyer'. nocol"t
PURCHASE AGREEMENT
.. .~~. ~... .~~.Y.~E...................... .Minn., .................. ................................, 19....?}
. UNITED POWER ASSOCIATION, a Minnesota cooperative association
RECEIVED OF..................................................................... ............................................................,.............................
Ihe sum of.. ~.~ ".f7... .~~?~.~ ~.~.?. ..~.~~...~.?!.~.q.~... ~::-:::-:-.~.-:-::-:-. :-:-.-:-:.-:-::-:-. ~.-:-:.-:-: :-:-.~ .-:-::-:-.. ($...? .,..q .~.~.~..q~) DOLI.ARS
.....b..:y...~.I.l.~~.~............""......................................ns earnest money and in pare paymen! for Ihe purchase of properJY~tX
(Check. C..h or Nol. - Slale Which)
known as UPA Drive . .
.............................................. ..... ............................... ......,.....,.......................,.......................................... .sHuatcd In the
Coun!Y of....?~~~.l?,~~.~.~............................................... State of Minncsota, and Icgally described as follows, to-wit:
A~proximately: The northeasterly 40 feet of Lots 1, 2, 3, 4 and 5, Block
Vlllage of Elk River, as shown on Exhibit A attached hereto and made a
part hereof.
includilll; ftll gftrdefl bulb3, pi ,
shades, blinds (including venctian blinds), CUrlaJn rods, traverse g allt mlbs, plumbing
lixlIIres, hot walcr tanks and heating plam (with 'any burners 6k, nl Olhcr equipment used in connection Ihere.
with), watcr soflcner and liquid gas tank .anJ~s I Ihe properly of seller). slimp pump, Ielevision anlcnna, inciner-
alOr, built-in dishwatlier;--g;rrlm1fe{[1sl10sal, ovens, cook lOp stoves and ccntral air conditioning equipment, if any, used and
"'leJ 91\ saiJ-p_is@s ARd induding alse Ihe follewffig per30I\al-prere*Y':
8,
all of which property the undersigned has this day sold to the buyer for the sum of:
q~~... ~.~~.~.q~~.q... ~.~.Y.~.~.t Y~.r~ y~... ~~S?~ .~.?.~~...~~9.-.. .n9.1.+..9. P.::.::::-.~.::::-.. ($ .+..7. ?.f..~9.P.:. .~ODOLLARS,
which the buyer agrees 10 pay in the following manlier:
Earnest money herein paid $..?d?.q.9..~.P.q. and L~.7.q.(.9.Q.9..~.Qf1sh, on .!\P.~~J....~..L..~~.~}......, the date of closing.
See Addendum No. One attached hereto and made a part hereof for
a~ditional terms of this Agreement.
Quit Claim
Subje(( 10 performance by the buyer Ihe seller agrees 10 execule an,1 ,Ieliver a................................................ ...........:.............. '\t;f~~~ Deed
(I" be jnined in by S1'8113C, if aRY) "iII"cyiR8 J'A'HI'Ol.,hlll lilla IA [Aiel "ra...i,c, ",I, .
(a) Duil.1inll and loning laws, or.linances, Slale ami Federal regulalions.
(b) Reslliclions relalin/l 10 use or iml'rovemelU of l,remises wit . ellure provision.
(c) Reservation of any minerals or nllne' ale of Minnesota.
(d) Ulilit an' 'illS w lich ,10 nO! interfere will. present improvements.
,~a '"
The buyer shall pay Ihe real est.ate laxes due in Ihe year 19. :'. ... Seller represents that there are no special
assessments against the property. . .
Neilher the seller nor Ihe seller's agent make any representalion or warrallly whatsoever concerning the amount of real estate laxes
which sh,,1I be assesse,l allainst Ihe property subsequent to the ,laIC of purchase.
. Seller covenanlS thatllllihlinl\s, if any, are entirely wilhinlhe boun.l"ry lines of Ihe propertY.llnll "~rLe~:~ ~~~C all "enR..or rr-1'8rl'\'
nor indu.led herein and all ,Iehris from Ihe premises prior 10 possession ,hue SFII t:1l W....nRAHT3"* . . . .1 liS, I WATlNG. AIR
CONDITIONIN~ WmINr. AND 111 UMBIN~D l.ULATliD ON SAID PREMISES AilE IN PIlOI'IHl WORKING ORDER
It'1' r..\ II. 01 CL m . th d t fl'
The seller fUrlher ar,rees to ,Icliver 1'05session not !:lIer'lhan ...~.....i:l...e...o........C?....().s.:L.n~ovide.llhal ~II condilions o( this
agreemenl have been complied with. Unless oll,erwise specilied Ihis sale s.h" II be dose.1 on or before 60 .Iays frolll Ihe dale hereof.
.J.n-the elent Ihis I'r81,uly-fs-.test~~,-",J.~11' ,1~nl'Il".II,y lire or ony ",!.pr (?I'ce before lh. &1..ciIl8 .Ialc, rhi, "ll18c...e..r ,hall
Ioc'9...a .."II 811.1 \'"i,I, Ilr doe-f'urd'"M!!" "f'lioR, and all mA"i"s-pai,1 h"r"\U,,I.. t1,,1I bll luluRd..lr" hi....
'fin.. LU)'\.I IUIlI ;n.ltCT-;tt!O .....hle.II, I\AH:c.. tiltH IHft-l"ttf1t-ftttj\lstRleRt:i 01 re-RU, il~te-fe3t. i'UUfftl1Ct 8"J eit~ uAter. ""nl. i.. tl.l (AJ.< of
iRClIlMt ,:~:,~erM f~:;~~~~~t~~~:~:gl?:t:tgl~~:e~i~~~:v%~Pffltiii$~~;J;~;'l~ ~~.~~~;.. ~i;~;;~;;" "r" ~'i; i~," .~;.. ~.. Rellis;e;~~i' 'i;r(lI'~;I~
Ahstracl ce,M,e,Fro ,hlle to inclu.le proper searlhes coverinl: bankruJ>lcies, and Slale and Fc.leral jn.!l1ments allll liens. The I"'l'cr shall be
allowed 10 ,lal'S after receipr Ihereof (or examinatioll of said tille an,l Ihe maki"H o( any ohjections lhcrer", saill ohieClions 10 he ma,le in
writin/l or .Ieeme.! 10 be waive,1. If any ohjeClions are so ma.le Ihe seller shall be allowe.l 120 ,lays 10 make such tille markelahle. "en,ling
corrcction o( rille rhe paymenrs hereun.ler require.l shall he postpone.l, 11I1I upon correnion of lille an,1 wilhin J() .lays after wlillell nOlice
10 rhe buyer, the parlies shall I,erform Ihis allreemeor acco,.Iinl1 1tI ilslerms.
If sai.!lirle is not marketahle an.! is nol made so wirhin 120 ,lays (rom d.e .Iarc o( wrillen ohjellions therelo as ahove proville.l, Ihis
a/lreemelll shall he null an.l voi,I, at oprion of Ihe buyer, an.! neilher prillcipal shall he liable (or ,Iamagcs hcreunder 10 rhe olher priucipal.
All mnncy d,erelo(me pail\ hy the bu).er shall be refun,led. If Ihe rille 10 sai,lpropcrty be (oulI,1 marketable or he so ma.le within said rime,
and said huyer shall default in any o( Iheagreemenls a,"1 conrinue in ,Iefault for a !,eliod of 10 .Iays. Ihen an.1 in dUll case Ihe seller mar
lerminale Ihis conllan an.1 on Stich lerlllillation alllhe pay me 1115 made upon Ihis conrcaCl shall hc reraine.l hy sai.l seller an.1 sai.1 al1enl, aF,
Iheir ,cspeClive inrercs.s m"y "!'pe",. "s li'lui,hllcd ,1"maHes, rime heinl: of Ihe essence hercof. This provision shall nOI deprive either parry o~
rhe ril:11I of enforcinl1 Ihe spccili performance o( this coorraCl pruvillell such conllaCl shall nlll be tcrm;,ulledas afores,,;d. allll provide,1 acrim~
10 en(orre such sl>ecilic performa ce shall be commencc.! wilhin six monlhs afler slllh right o( aclion shall arise. ,
It is u,,,lerslOod an.1 ap,r cd Ihat Ihis sale is made suhjeCl 10 Ihe approval by rhe oWller of sai.1 premises in wriling Rnd Ihar rhe nndcr~
sillnell agclll is in no manner lia Ie or responsihle on aClounl of Ihis allreemenl, excel,r 10 renlrn or acrounl (or Ihe earnest money paid under
Ihis conllaCI.
The delivery of all papers and m nies shall be made uthe office of:
Seller
. . . -. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .. . . .. . . . . . . . . . . . . . . . . . . .- . . . . . . . . . . . . . . . . ~
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.......................................................................................1
I, the un.lersigned, ownet of he above land, do hereby approve
the above agreemenr and Ihe sale hereby made.
Dy ...................... ..................................................................... .Agen~
I herehy agree 10 purchase the said properlY for Ihe price an.!
lI)>on the rellns ahove melllioned, and subject 10 all condilions
herein eXlllessed. i
CITY OF ELK RIV R
.................................................... ... .... ................................... (SEAL)
Slier
UNITED POWER ASSOCIATION i
....................................................... ....................................... (SEAL)!
Duyer
By:
... ..... ................ ....,....................... ,...... ..... .............. ................ (SEA L)
Its: Duyer
.~y..;............................................ .... .... .............................. ... (SEA L)
Its: Seller
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ADDENDUM NO. ONE
TO PURCHASE AGREEMENT
BY AND BETWEEN
UNITED POWER ASSOCIATION, BUYER
AND
CITY OF ELK RIVER, SELLER
The following terms and conditions are hereby incorporated in
the Purchase Agreement dated March , 1993 (the "Purchase
Agreement"), by and between Buyer and Seller. Wherever there is a
conflict between the Purchase Agreement and this Addendum No. One
(this "Addendum"), the provisions of this Addendum shall govern:
1.) Legal Description - Seller shall cause a survey of the
property that is the subject of this Agreement (the "Property") to
be prepared at Seller's expense within thirty (30) days after the
date hereof by a Minnesota Registered Land Surveyor, and certified
in favor of Buyer and Seller. Said survey shall accurately
legally describe the Property. Said legal description shall be
approved by Buyer and Seller and thereafter shall replace the
approximate legal description set forth in the Purchase Agreement.
2.) Easement to Seller - At the closing, Buyer shall grant
to Seller an easement over, upon and across the Property for
access to Seller's well and filtration plant, as well as for
ingress, egress and access to the balance of Lots 1, 2, 3, 4 and
5, Block 8, Village of Elk River (commonly known as the old City
Hall site and the old creamery building site and referred to
herein as the "OCH Parcel"). Such easements shall be in form and
substance acceptable to Seller. In the alternative, in Seller's
deed to Buyer, Seller may reserve said easements.
3.) Street Vacation - Prior to the date of closing, Seller
shall, if necessary, vacate the Property as a public street or
right of way and shall cause the Property to be subdivided as a
separate tax parcel by appropriate action. If Seller is
diligently undertaking to so vacate and subdivide the Property,
but said vacation and/or subdivision has not been completed by the
date of closing, Seller shall have such additional period of time
necessary to complete the vacation, but not to exceed an
additional ninety (90) days. If such vacation and/or subdivision
has not been completed within said additional ninety (90) days,
then, at the option of Buyer or Seller, this Agreement shall be
null and void and the earnest money and any other part of the
purchase price paid at that time shall be returned to Buyer.
4.) Restrictive Covenants against Old City Hall Site - On or
before the date of closing, Seller shall subject the property
referred to above as the OCH Parcel to certain restrictive
covenants. Said restrictive covenants shall provide that the OCH
Parcel shall not be used for retail or private commercial
purposes. Said restrictive covenants shall not limit the use of
the OCH Parcel for governmental, quasi-governmental or nonprofit
organization purposes, except that the OCH Parcel shall not be
used for school purposes nor for retail government purposes, such
as a municipal liquor store. By way of example, but without
limitation, the OCH Parcel may be used for a school administration
building, government building, Chamber of Commerce building, or
park and ride facility.
5.) Maintenance of OCH Parcel - Seller shall retain the
responsibility for landscaping and maintenance of the OCH Parcel.
6.) Abstract of Title - If Seller possesses an abstract of
title for the Property, Seller shall furnish it to Buyer in its
existing state of continuation. If said abstract of title covers
other real estate in addition to the Property, then Buyer shall
return said abstract of title to Seller on or prior to the date of
closing.
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7.) Special Assessments - Seller represents that there are
no pending special assessments with regard to the Property and
that no hearings have been held for improvements which could
result in special assessments against the Property.
8.) Hazardous Substances - Seller represents that to the
best of Seller's actual knowledge without investigation or inquiry
that there are no hazardous substances on or under the Property or
any underground storage tanks on the Property. "Seller's actual
knowledgell as used in the preceding sentence and as used in
Section 9 of this Addendum shall mean the actual knowledge of only
the following of ficials: c....J..i AdM irt is+{',..f-D,,...
Seller makes no other representation about the Property and Buyer
is relying on its own investigation and knowledge of the Property
in offering to buy the Property.
9.) Wells - Seller certifies that it does not have any
actual knowledge of the existence of any wells on the Property.
10.) Miscellaneous - The headings used herein are for
convenience only and are not to be used in interpreting this
Agreement. This Agreement shall be construed, enforced and
interpreted under the laws of the State of Minnesota. This
Agreement may not be modified, amended or changed orally, but only
by an agreement in writing signed by Buyer and Seller. Neither
party shall be deemed to have waived any rights under this
Agreement unless such waiver is given in writing and signed by
such party.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.
SELLER:
CITY OF ELK RIVER
BUYER:
UNITED POWER ASSOCIATION
By:
By:
Its:
Its:
GAR:WI2S
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Page 10