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HomeMy WebLinkAbout8.a. Purchase Agreeement for Eastside Water Tower, City Project #302 � CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: December 7, 1999 AGENDA ITEM: Approve Purchase Agreement — Eastside AGENDA SECTION: Water Tower, City Project #302 Old Business PREPARED BY: Bud Osmundson AGENDA NO: City Engineer/Public Works Director � r a� �;; ��� �' A . �� �; ATTACHMENTS: Purchase Agreement APPROVED BY: , The attached Purchase Agreement has been discussed with the property owners, Marlin and Joanne Rechtzigel for the purpose of the acquisition of property to construct the water tower on the east side. Most of the issues have been resotved except for an item issues found on page 5 under paragraph number 17. The seller desires that the parcel not have assessments levied against the remainder parcel until that parcel is developed. We have countered with either deferring, or deferring without interest any assessments for improvement projects that may provide a benefit to the parcel. The City Attorney and I will review this issue with you at the meeting. If the Purchase Agreement in its final form is not accepted by the proposed sellers, then the City has few options to consider. Staff is working with the Consulting Engineer, Bonestroo, Rosene, Anderlik and Associates, on alternative sites; however this general area and elevation is the best long-term site for a water tower on the east side. The only other alternative is to initiate condemnation proceedings for one of the sites for the water tower. Staff will review this item with you at the meeting. RECOMMENDED ACTION: COUNCIL ACTION: 12 PURCHASE AGREEMENT 1, PARTIES. This Purchase Agreement is made this day of � . 1999 by and between MARLIN RECHTZIGEL and JOANN RECHTZIGEL, husband and wife ("Sellers") and the CITY OF ROSE�I-IOLNT, a Minnesota municipal corporation , _ (°Buyer"). � 2. SUBJECT PROPERTY. Sellers are the o�vners of that certain real estate (the "Properry") located in Rosemount, Dakota County, Minnesota and legally described as follows: The West 270 feet of the East 3�0 feet of the South 300 feet of the Northwest Quarter of the Southwest Quarter of Section 30, Township 115, Range 18,Dakota County,Minnesota; and The East 80 feet of the Northwest . Quarter of Section_30,Township 11�,Ran�e 18, Dakota County Road Right of Way Map No. 21B on file and in record in the office of the County Recorder. Total Area of Property= 186,270 sq.ft.=4.28 acres. � 3. OFFER/ACCEPTANCE. • In consideration of the mutual agreements herein contained, Buyer offers and a?rees to .purchase and Sellers agree to sell the Property, together with all appurtenances,includin�but not limited to: crops and plants. 4, PURCHASE PRICE Al�TD TERIVIS: A. PURCHA.SE PRICE: The total Purchase Price for the Property in this sale is One Hundred Twenty-eight Thousand Four Hundred and no/100th Dollars ($128,400.00)payable as follows: (1) Earnest Money in the amount of Ten Thousand and no/100ths Dollars ($I 0,000.00); . (2) Balance of One Hundred Eighteen Thousand Four Hundred and no/100ths Dollars ($118,400.00) to be financed at closing by a contract for deed in substantially the form as the attached Exhibit A. B. TERMS: (1) DEED�v'[ARKETABLE TITLE. Subject to performance by Buyer, Sellers agree to execute and deliver a Warranty Deed conveying marketable title to the Property to Buyer, subject only to the following exceptions: DPD-16730�v2 1 RS220-75 a. Buildin� and zoning la�vs, ordinances, state and federal re�ulations. b. Reservation of minerals or mineral rights to the State of ' Minnesota,if any. c. Restrictions affecting the use of or improvements to the � Property without effective forfeiture provisions. d. Public utility and drainaje easements of record. e. Reservation of a gasline easement in favor of Sellers for access for a commercial gas tap to the pipeline identified below. f, An easement(s) in favor of Enron of record with the Dakota County Recorders Office. (2) DOCUMENTS TO BE DELIVERED AT CLOSING. In addition to the Warranty Deed required at paragraph 4B(4) above, Sellers shall deliver to Buyer: a. Standard form Affidavit of Sellers. b. O�vner's Duplicate Certificate of Title, if applicable, or abstract of title, if the abstract of title is within Sellers' possession or control. c. Such other documents as may be reasonably required by Buyer's title examiner or title insurance company. 5. CLOSING DA.TE. �h�l��e glace at a locat on as muptuall aQrleed upon by the January 4, 2000. The closmb P _ parties. 6. ENVIRONMENTAL� after th date of this Purchase A�reemenhfor the purpose reasonably enter upon the Property of inspecting the Property and conducting such environmental examination and tests as Buyer reasonably deems necessary. Buyer agrees to indemnify the Sellers against any liens, claims, losses or damage occasioned by Buyer's exercise of its right to enter and work upon the Property. Buyer agrees to provide Sellers with a copy of any report prepared as a result of such examination and tests, upon request by Sellers. This Purchase Agreement is contingent upon the results of any such inspection. In the event Buyer is dissatisfied with DPD-167305v2 2 - RS220-75 the results of any such inspections, Buyer shall give �vritten notice of same to Sellers on or before December 17, 1999, whereupon this agreement shall be terminated; Buyer's Earnest Money returned, and neither party shall be liable to the other. If no such notice is given,this contingency shall be deemed waived by Buyer. 7, REAL ESTATE TAXES. The Property is part of a larger parcel, tax parcel no. 34-03000-010-55, which shall be split into the Property and the Remainder Parcel. Seller shall pa��, at or prior to closing, all real estate taxes payable in 1999 and prior years on both the Property and Remainder Parcel. Buyer shall pay the real estate taxes for the Property payable in 2000 and thereafter. Seller shall pay the real estate taxes for the Remainder Parcel payable in 2000 and thereafter. Buyer shall pay any deferred real estate taxes �vith respect to the Property, payment of which becomes due as the result of the transaction contemplated by this Agreement. 8: SPECIAL ASSESSMENTS. A. Buyer shall pay and/or assume any special assessments, �vhether levied, pending,or deferred,with respect to the Property as of the date of closin�. B. As of the date of this Purchase Agreement. Sellers have not received a notice of liearing for a new public improvement project from any govemmental assessing authority, the costs of which project may be assessed against the Property. If a notice of pending special assessment is issued after the date of this Purchase Agreement and on or before the date of closing, Buyer shall assume payment of all of any such special assessments, and Seller shall provide for payment on date of closinQ of none of any such special assessments. 9, MARKETABILITY OF TITLE. The Sellers, �r-ithin a reasonable time after acceptance of this Piuchase Agreement, shall furnish to Buyer an abstract of title or registered property abstract, certified to date to include proper searches covering . bankruptcies, state and federal judgment and liens and levied and pending special assessments. Buyer shall have ten(10)business days after receipt of the abstract to examine the same and to deliver written objections to title, if an}'. to Sellers. Sellers shall ha��e until the Closing Date (or such later date as the parties may a�ee upon) to mal:e title mazketable, at the Sellers' cost. In the event that title to the Propem� cannot be made mazketable or is not made marketable by the Sellers by the Closing Date, then, at the option of the Buyer: this Purchase Agreement shall be null and void; neither party shall be liable for damages hereunder to the other; and Buyer and Sellers agree to si� a cancellation of this Purchase Agreement. Buyer ab ees to accept an owner's title policy in the full amount of the purchase price in lieu of an abstract of title if the propert}�is subject to a master abstract or if no abstract of title is in Sellers' possession or control. If Buyer is to receive an owner's title DPD-16730�v2 3 RS220-7� policy, the title examination period will commence upon Buyer's receipt of a current title insurance commitment. 10. CLOSING COSTS AND RELATED ITEMS. The Sellers shall be responsible for the follo�ving costs: (a)recording fees and conservation fees for nserva on fees required to establish marketable title in Sellers; (b)deed transfer taxes and co ` to be paid in connection with the warrant�� deed to be given by Sellers; (c) the cost of the registered property abstract or abstract or; if a title policy is obtained, the tract check, name search fees, and title insurance premium• Buyer shall be responsible for the payment odeed following costs: (1) recording fees required to be paid in connection with the warranty to be given by Sellers; (2) closing fee, if any; (3) service charge for title policy. Each party shall be responsible for its own attorne}�s' fees and costs. 11. SUBDIVISION. The Propert}' is a portion of a larger parcel, and the conveyance contemplated by this Agreement will require approval of the City of Rosemount as the local subdivision authority. The Buyer agrees to pay all of the costs associated with the necessary government approvals. 12. CROP DAMAGE. The Bu}�er aDrees to compensation [name of renter] for any damage done to the crops under the terms of this a�reement. 13. POSSESSION/CONDITION OF PROPERTY. Sellers shall deliver possession of the Property to Buyer by 4:30 p.m. �as hAQ eementl�eason b e wear and t arlt xceptede Property existed on the date of tYus Purch b 14. DISCLOSURE; INDIVIDUAL SE`�'AGE TREATMENT SYSTEM. Sellers disclose that there ARE NO individual sewage treatment system on the Property and the system IS NOT in use. Sellers further disclose that the type of system is a ro�la a system, which has been filled with sand, and the location is shown on a map p Buyer,receipt of which Buyer ackno«�led�es. 15. CONDITION OF SUBSOIL AND GRO eUND laced�oredsorlreleased from o�r hazardous substances or petroleum products having p on the real property by any person in violation of any law, nor of any underground stora?e tanks having been located on the real property at any time. 16. WELL DISCLOSURE. Sellers represent and warrant that there are no wells located on the Property. DPD-167305v2 4 RS220-75 17. BUYER'S`�'ARRANTIES. Buyer warrants that the Remainder Parcel shall and �vill have access to CSAH 42 directly across from Conley Avenue and if necessary for such access and/or a public road, Buyer will grant to Seller appropriate easements on that part of the Property necessary for such access and/or a public road. Buyer �vanants that the road constructed south of CSAH 42 �vill be the same «idth and quality as Conley Avenue, and with the same culvert and drainage amenities as presently eaistin� for Conley Avenue. The City will consider naming this street Carey Avenue. The Buyer further warrants that any water, se�ver, or road assessments on the Remainder Parcel ��Zll be defened�until the Remainder Parcel is developed. � � � �i�� ��i�� i , 18. SELLERS' `VARRANTIES. Sellers warrant that there has been no labor or material furnished to the Property for�vhich payment has not been made. These w�arranties shall survive the closin�of this transaction. 19. RELOCATION BENEFITS. Sellers acknowledge that the Property is vacant and unoccupied, and that the acquisition contemplated by this transaction will not cause the Sellers to be displaced. The Sellers acknowledje that they are not entitled to relocation benefits pursuant to Minnesota Statutes, Section 117.0�2 et. seq. 20. NO BROKER INVOLVED. The Sellers and Buyer represent and warrant to each - other that there is no broker involved in this transaction with«-hom they have negotiated or to whom they have agreed to pay a broker commission. Buyer aQrees to indemnify Sellers for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Buyer, and Sellers aQree to indemnify Buyer for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged ajreement or comtnitment or ne�otiation by Sellers. 21. NO MERGER OF REPRESENTATIO\'S,WARRANTIES. All representations and warranties contained in this Purchase Agreement shall not be merged into any instruments or conveyance delivered at Closing,and the parties shall be bound accordingly. 22. ENTIRE AGREEMENT; AMENDNIENTS. This Purchase A�'eement constitutes the entire agreement between the parties, and no other agreement prior to this Purchase Agreement or contemporaneous here�vith shall be effective except as expressly set forth or incorporated herein. Any purported amendment shall not be effective unless it shall be set forth in writing and executed by both parties or their respective successors or assigns. DPD-16930�v2 5 RS220-7� 23. BINDING EFFECT; ASSIGNtVLENT. This Purchase Agreement shall be binding upon and int�re to the benefit of the parties and their respective heirs, executors, administrators, successors and assi�ns. Buyer shall not assign its rights without the consent of Sellers and interest hereunder w-ithout notice to Sellers. . - 24. NOTICE. Any notice, demand,request or other communication which may or shall be given or served by the parties shall be deemed to have been given or served on the date the same is deposited in the United States Mail, registered or certified, postaje prepaid and addressed as follows: a. If to Sellers: Marlin Rechtzigel JoAnn Rechtzigel 14727 Clayton Avenue Rosemount,MN 55068 b. If to Buyer: City of Rosemount Attn: Bud Osmunson 2875 145�' Street West . Rosemount,MN 55068-4997 25. DEFAULT; REMEDIES; SPECIFIC PERFORMANCE. If Buyer defaults in any of the agreements herein, Sellers may terminase l�u dated adam aesmeIf�this PPuyrchase made hereunder may be retained by Sellers q b Agreement is not so terminated,Buyer or Sellers may seek actual damages for breach of this Purchase Agreement or specific performance of this Purchase Agreement;provided that any action for specific enforcement must be brought within six months after the date of the alleged breach. - DPD-167305v2 6 RS220-7� IN WITNESS WHEREOF,the parties have executed this Purchase A�reement as of the date written above. SELLERS ` ' Marlin Rechtzigel JoAnn Rechtzigel BUYER CITY OF ROSEMOUNT By Its Mayor,Cathy Bi.=sr.o � By � i Its ity Clerk, s��M. Wals�s DPD-167305v2 '7 RS220-75