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HomeMy WebLinkAbout4.b. Discussion of Purchase of the Roy Abbott Property a, 1 CIT"Y' OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION PORT AUTHORITY COMMISSION MEETING DATE: JULY 20, 1993 AGENDA ITEM: DISCUSSION OF PURCHASE OF THE AGENDA SECTION: ROY ABBOTT PROPERTY OLD BUSINESS PREPARED BY: JOHN MILLER, AGENDA NO. ECONOMIC DEVELOPMENT COORDINATOR 4 . B. � ATTACHI�IENTS: CORRESPONDENCE FROM ED RYMER APPR VED BY: Attached please find correspondence from Ed Rymer, Roy Abbott' s broker, accepting the port authority's offer of $500, 000 cash for Abbott's 80 acre parcel . The accegtance was within the port authority' s 48 hour deadline. RECOi�lENDED ACTION: Motion to direct John Miller to appear before the Rosemount city council with a °Project Plan" and "Project Budget" requesting approva t develox,> P Rosemount Business Park. . '�. ��� � PO�U ACTION: . � ' 10 �"��,Ll�.� lbo fKU�'1•I;UlUwdil UGf1Kt'f' IU� 1 OlG 4G.� JGYJJ JLJL 1`+� 1�7J 4•JJt"1'� N.�� a n . � . . � � I I . . . .. � . � � . . . � .� .. . � � � . . . . . . . ss�s c�rr c�rraF oRNe SERVIC�15T w000eua'r.MN�us HEAI.TY eus.cetix�r3a•9�oo fAXlG�2173D�125 CUMML�CII.I DIYISIUN *�**� Facsimile Transmission �-**** Date : July 24, 1993 Pages : 2 Tti : John Miller Fax �hone : 612-423-5203 _ From : Edward T_ Rymer CCiM Subject : Roy Abbott Land - appra�imately 80 � �icres Pex our conversation at 3:45 7J14/93, I am off:tcially notifyi.ng ' tha Por� Authority of Mr. Abbott' s acceptance o� their o�'fer ta purchase the above ment3.aned property for $500,400.00 cash. I am autharized to notify you by Mx. Abbott and his attorney, Mr. Christensen. If you hava any questfans please do not hesitat� to Call me. cc: Roy E. Abbo�t Joseph 3. Christensen An Indepsndently Owned and Oqerdted Member a(C41dwe�l Banker R�fd►..ntiat Atfil�ales,Inc. . . PURCHASE AGREEMENT THIS AGREEMENT is made on , 1993 , between Ray E. Abbott, an individual residing in Washington County ("Seller") � and the Rosemount Port Authority ("Buyer") . IN CONSIDERATION OF THIS AGREEMENT, Seller and Buyer agree as follows: 1. Sala of Property. Seller agrees to ssll to Buyer and Buyer agrees to buy from Seller, the foilowing property (the ��PropertyF,� : The North 1/2 of the Northeast 1J4 of Section 32, Township 115, Range 19, except the South 13 feet of the East 525 feet thereof, in Dakota eounty, Minnesota. 2 . Purchase Price and Manner of Pavment. The Purchase Price ("Purehase Price") to be paid by Buyer to Seller for the Property shall be Five Hundred Thousand andJno Hundred Dollars ($500, 000. 00) and shall be� payable as follows: (a} $10,000. 00 Earnest Money, payable by Buyer to the real estate broker identified in Section 11 below upon and as a condition to Buyer's acceptance hereof; and (b) $490, 000. 00, cash or cash equivalent funds, plus or � minus prorations and adjustments as set forth in this Agreement, at closing. 3 . Contingencies. The obligations of Buyer under this Agreement are contingent upon e�ch of the fallowing: (a) Representations and Warranties. The representations and warranties af Seller contained in this Agreement must be in all material respects true now and on the Closing Date as if made on the Closing Date. (b) Title. Tit1e shall have been found aeceptable or been made acceptable in accordance with the requirements and terms of sectian 6 below. (c) Inspection and Testinct. Seller shall allow Buyer, and Buyer's agent, access to the Prc�perty solely, for the purposes referenced in Sections s �aj through 3 (h) below, without charge and at a1l reasonable times, for the purpose of Buyer's investigatian, survey and testing the same. Buyer sha11 pay all costs and expenses of Buyer's investigation, survey and testing. Buyer shall repair and restare any damage to the Property eaused by or occurring during Buyer's investigatic�n, survey and testing and return the Property to substantialiy the same candition as existed prior to such entry. Buyer hereby agrees to indemnify, defend and hold Seller harmless from any and all liability, costs and expenses, including attorney's fees, damages, suits or claims arising in connection with Buyer's investigation, survey and/or testing. In the event this Agreement is terminated under any circumstances, Seller shall be entit�.ed to receive reasonable written verification (such as mechanic lien waivers) that the costs incurred in conneetian with Buyer's investigation, survey and/or testing have been paid in full as a condition precedent to Buyer being entitled to receive a refund of Buyer's Earnest Money. Buyer also agrees, upon any such termination, to provide Seiler with full and complete copies of any surveys, tests, reports or o�her documentation created ar obtained by Buyer in connection with the matters referenced in Sections 3 (d} through 3 (h) be].ow and Buyer shall execute and deliver to Seller an agreement acknowledging th.e termination of all of Buyer's rights in the Property and/or under this Agreement. (d) Survey. Seller shall, at Seller's cost and expense, cause the Praperty to be surveyed by registered land surveyors, who are properly licensed to pra�tice in the State of Minnesota. The survey shall be certified to the Buyer, the Seller and the Title Company, and be delivered �ta the parties within forty-five (45) days of the date of this Agreement, as follows: i) the boundary lines of the Property and the legal description therefor; ii) the location of all physical encroachments, of an�; iii) all existing easements and the. recording information therefor; iv) a�.l existing roadways abutting the Property and any existing limitation of aecess thereto; v) all existing utilities located on or adjacent to the Property; vi) al1 building or other setback lines and a11 floodplain lines and utility lines, if any; and vii) the location of all improvements, if any. -2- (e) Testinct. Buyer shall have determined within forty- five (45) days after the date of this Agre�mc�nt that it is satisfied with the results of and matters disclosed by all soil tests, engineering inspections, hazardous waste and environmental reuiews of the Praperty. Promptly after receipt of such inspection report, Buyer shall forward a copy of same ta Sell.er. In the event that a final closing does not occur and pending such occurrence, Buyer agrees to keep such test results eonfidential, except for any notice which Buyer may be obiigated to give to appl.icable governmental authorities. If such test results disclose soil conditions that are unsatisfactory to Buyer, in Buyer's sole discretian, Buyer may then terminate this Agreement upon written notice within the time provided above or fourteen (14) days after receipt o� such final test results, whichever shall be earlier, and in such event the Earnest Money will t�iereafter be returned to the Buyer and neither party shall have any further obligation under this Agreement except as provided for in paragraph 3 (c) . (f} Sur�e,y A.pproval. Buyer shall have determined within fourteen (14) days after receipt of the survey referred to in paragraph 3 (d) , in Buyer's sole discretion, that the canditian of the Property as set forth in such survey is satisfactory to Buyer. If such survey is not satisfactory to Buyer, then Buyer may �erminate this � Agreement upon written not<ice and in such event the Earnest Money will be xeturned to the Buyer and neither party shall have any further obligations under this Agreement except as provided for in paragraph 3 (c) . (g) Gavernment Approval._ Buyer shall have obtained, at � its sole cost and expense on or before the Closing Date, all government approvals necessary in Buyer's sole judgment, in order to make the use of the Property which the Buyer intends. In the event Buyer, in its sole judgment, does not obtain such permits andJor: approvals as are n�cessary in Buyer's sole judgment, prior to Closing, then Buyer may terminate this Agreement upon written notiee not later than the Closing Date and 'in such event the Earnest Money will be returned to the Buyer, and neither party shail have any further obli.gation of this Agreement exeept as provided for in Paragraph 3 {c) . (h) Roads and Utilities. Buyer shall have determined, within forty-five (45) days of the date hereof, that the Property is serviced by all necessary utilities in order _3_ to support Buyer's proposed use and that Buyer will have satisfactary access thereto. In the ev�nt Buyer, in its sole judgment, determines that the utilities or road systems are inadequate for the Buyer's proposed use, then Buyer may terminate this Agreement upon written notice not later than the Closing Date and in such event the Earnest Money will be returned to the Buyer and neither party shall have any further obligatian under this Agreement except as provided for in paragraph 3 (c) . (i) Theater Transaction. Buyer shall have determined, within forty-five (45) days of the date hereof, that Buyer is satisfied with the progress af its dealings with those parties intending ta develop a portion af the Property, after purchase by Buyer, as a movi� theater operation. In the event Buyer, in its sale judgment, determines that satisfactory progress regarding the foregoing has not been made then, in that event, Buyer may te�minate this agreement upon written notice no later than forty-five (45} days from the date hereof whereupon the Earnest Money will be returned to the Buyer and neither party shall have any further obligation under this Agreement except as pzovided for in Paragraph 3 (c) . Unless Buyer provides Seller with timely written notice pursuant to Section 14 below of Buyer's objection to any cantingency set forth in this Section 3 above, Buyer sha11 be deemed to have waived such contingency in its entirety. In the event Buyer closes on the purchase of the Praperty from Seller, Buyer sha11 be conclusively deemed to have waived all of the foregoing contingencies unless otherwise specifically provided in a separate writing signed by Buyer and Seller. 4 . Closinct. The closing of the purchase and sale contemplated by this Agreement (the "Closing" or "Closing Date") shall occur on a date seventy-five (75) days after the date of this Agreement as that term is hereinafter defined, or on such earlier date as s�lected by Buyer. The closing shall take place at the office of the Title Company, or at sueh other place as may be mutually agreed to. Seller agrees to deliver possession of the Property to Buyer at Closir�g. Seller and Buy�r shall each pravide the following at Closing: (a) Seller's Closina Documents. On the Closing Date, Se11er shall execute and/or deliver ta Buyer the following (calTectively "Seller's Closing Documents") : (i) Warranty Deed. A general Warranty Deed, from Seller conveying the Property `to Buyer in accordance with the terms thereof. -4- (ii) Well Certificate. A well certificate as may be required by Minnesota Statutes 103I.235. (iii) Seller's Affidavit. An affidavit of title by Seller, in customary form certifying that on the Closing Date there are no outstanding, unsatisfied judgments, tax liens or bankruptcies against or invalving Seller or the Property; that there has been no skill, labor or material furnished to the Property for which mechanics liens could be filed; and that there are na other unrecorded interests in the Property, other than the Permitted Encumbrances, together with whatever standard additional documents which may be required by the Title Company to issue the "Title Policy" as defined in Section 6(c� below. (iv) Title PolicY. Subject to Buyer's obligation to pay the premium therefare, the Title Policy, or a suitak�ly marked up commitm�nt for title insurance initialed by the Title Company, in the form required by this Agreement. {v) IRS Reporting Form. `The appropriate federal income tax reporting form, if any is required. (vi) Other pocuments. All other documents reasonably required or necessary to transfer the Property to Buyer free and clear of a11 encumbrances except Permitted Encumbrances, consistent with the terms of this Agreement. (b) Buyer's Closing Documen�s, On the Closing Date, Buyer will duly execute and deliver to Seller the fa�.lowing (collectively "Buyer's Cl.asing Documents") : {i) Cash Payment. The $490, 000. 00 cash balance of the Purchase Price, plus or. minus prorations or adjustments, by wire trans€er or certified funds. (ii) Title Documents. Such affidavits of Buyer, certificates of value or other documents that may be reasanabiy required by the Title �ompany in order to record the Seller's closing documents and issue the Title Poliey as required by this Agreement. (iii) Such other documents and funds as shall be reasonably necessary or required to compl.ete the transactions contemplated by this Agreement. _5- Agreement. 5, Frorations. Se21er and Buyer agree to the following prorations and allocation of cost regarding this Agreement: (a) Title Insurance and Closina Fees. Seller shall pay all costs of the Title Company for applicable searches and for updating abstracts. Buyer will pay the premiums required for the issuance of the Title Policy and for the issuance of a mortgagee's policy, if any. Any closing fee impos�d by, the Title �ompany shall be split fifty/fifty (50/50) be�ween Buyer and Seller. (b) Real Estate Taxes and Special Assessments. Seller will pay, on or before Closing Date, all speeial assessments currently levied against the Property including without limitation any installments of special assessm�nts and interest payable with general real estate taxes in the year of closing. Special assessments which become pending or levi�d after the date hereof shall be assumed and paid by Buyer. General real estate taxes and installments of special assessments payable in the year prior to the year in which the closing takes place and aIl prior years sha11 be paid by Seiler. General real estate taxes payable in the year that the closing takes place shall be prorated between Se11er and Buyer to the Date of Closing. (c) Recordinc� Costs. Seller will pay the costs of recording all documents necessary to place record title in the condition warranted and represented by Seller in this Agre�ment. Buyer will pay the cost af recording a11 other doeuments including the Contract for Deed. (e) Attorneys Fees. Each party shall pay its own attorneys fees, except that a defaulting party under this Agreement or any closing document will pay the reasonable attorneys fees and court costs incurred by the non- defaulting party to enforce its rights regarding such default. 6. Titie Examination. Title examination will be conductet� as follows: (a) Seller's Title Evidence. Seiler shall on or- befare thirty (30) days after this Agreement has been exeeuted by Seller furnish Buyer with a Commitment ("Title Cammitment") for an Owners Policy of Title Insurance insuring title to the Property, in the amount af the Purchase Price, issued by Old Republic National Title Insurance Company by its agent Dakota County Abstract Company (the "Tit1e Company"j . The Title Commitment will _6- comrnit the Title Company to insure title to the Property , subject only to those matters listed on Exhibit A attached hereto and made a part hereof (the "Permitted- Encumbrances") and other matters approved or accepted by Buyer. Seller shall also deliver to the Title Company an abstract of title ta the Property. (b) Buyer's Ob1ections. Within �.en (10} days after receipt thereof, Buyer will make written objections ("Objections") to the form and/or eontents of the Title Evidence other than the Permitted Encumbrances. Buyer's failure to make Objections within such time period will constitute waiver of Objections. Any matter shawn on sueh title evidence not timely obj ected to by Buyer shall thereafter be deemed to constitute a "Permitted Encumbrance" hereunder. Seller will have sixty (60) days after receipt of the Objections to cure the Objections, during which period the closing will be postponed as necessary. Seller shall use its best reasonable efforts to correct any Objections. To the extent an Objection can be satisfied by the payment of money, Buyer shall, after thirty (30) days prior written notice to Seller, have the right at Closing to apply a portion of the cash payable to Seller at the Closing to reasonably cure such Objection if Seller has not otherwise then cured or prcavided for the cure of such Objection. The satisfaction a� such Objection and the amount so applied shall reduce the amount of cash payabl.e to Seller at the Cl.osing. If the Objections are not cured within sueh sixty (60) day period, Buyer will have the aption "to do � any of the following: (i) terminate this Agreement and receive a refund of the Earnest Money in cahich event neither party shall have any further obligations under this Agre�ment except as provided in paragraph 3 (c) . {ii) waive the Objections and proceed to close. (c) Title Policy. Seller wi11 furnish to Buyer in accordance with paragraph ' 4 (a) above, at closinq the title poliey ("Title Policy'') issued by the Title Company pursuant to the commitment, or a suitably marked up commitment initialed by the Title Company undertaking to issue such a Title Policy in the form required by the Commitment as appraved by Buyer subject, however, 'to Buyer's obligation to pay the premium for the issuance of the Tit1e Policy pursuant to paragraph 5 (a) above. 7 . Operation Prior to Closina. During the period from the day of execution of this Agreement by both parties to the Closing Date (the "Executory Period") , Seller shali maintain the Property -7- in the ordinary course of bus�ness in accordance with prudent, reasonable business standard�, ,including the maintenance of adequate liability insurance. 8. Representations and Warranties bv Seller. Seller represents and warrants to the Buyex as follows: (a) Title to Property. Seller owns the Property, free and clear of all encumbrances except the Fermitted Encumbrances and mortgage liens which Seller shall pay in full at Closing. ' (b) Leases and Possessory Ricxhts. At closing, there will be no leases or possessory rights of others regarding the Property other than pursuant to the Permitted Encumbrances, if applicable. (c) Utilities. Seller has received no notice of actual or threatened xeduction or curtailment of any utiiity service now supplied or available to the Property_ (d) Wells. Seller has no knowledge of the existence of any wells on the Property. (e} Assessments. Seller has received no notice of pending or threatened special assessments of reassessments of the Property. (f) Environmental, Laws. To the hest of Seller's knowledge: (i) There has no� been any generation, treatment, storage or disposal of hazardous substance onto, into, at or near the Property except in accordance with federal, state and local statutes, regulafiions or ordinances applicable at the time of clasing; (ii) There has not been any release of any hazardous substance onto, into, at or near the Property in violation of any applicable laws or regulations in effect on the Closing Date; (iii) Seller is in compliance with all applicable federal, state and local statutes, regulati.ons, ordinances and rules regarding the handling of hazardous substances, if any, at the" Property; and (iv) There are no above graund nor undergraund storage tanks located in or about the Praperty. ' As used herein, the term "hazardous substance" means any hazardous, extremely hazardous or toxic substance, _g_ material, waste, pollutant or effluent including, but not limited to, asbestos, petroleum and those substances, materials ar wastes listed in or under the Comprehensive Enviranmental Response, Compensation and Liability Act of 1980 (42 U.S.C. 9601, et. seq. } , as amended by the Superfund Amendments and Reauthorization Act of 1986 (Pub. L. No. 99-499) , and regulations promulgated thereunder, and such other substances, materials, wastes, po�lutants, air pollutants, toxic pol.Iutants or effluents that are presently regulated under applicable federal, state and local statutes, regulations, ordinances or rules, and amendments thereto. As used herein, the term "release" means spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping or disposing of any hazardous substance into �r on tY�e soils ar waters in, on or under the Property. (g) Ri�hts of Others to Purchase Propertv. Seller has not entered into any other contracts for the sale of the Property,� nor are there any rights of first refusal or options to purchase the Property or any other xights of others that might prevent the consummatian af this Agreement. (h) FIRPTA. Seller is not a "Foreign Person" , "Foreign Partnership" , "Foreign Trust" , or "Foreign Estate" as those terms are defined in Section 1445 of the Internal Revenue Code. (i) Proceedinas. To the best of Seller's knowledge, there is no action, litigation, investigation, condemnation or proceeding of any kind pending or threatened against Seller and affecting any portian of the Property. Seller agrees to indemnify, defend and hold harmless Buyer, its employess, agents, suceessors and assiqns from and against any and all claims, damages, liabilities and/or losses (including reasonable attorneys' fees) , and other fees arising out of the breach of any of the Seller's representatians and warranties contained in this Agreement. Each of the representations and warranties contained in this Agreement shall survive the Closing for a period af six manths. 9 . Crops. The parties acknowledge that a portion of the Property is currently being rented for agriaultural purpo.ses pursuant to the terms of an oral lease �covering the 1993 qrowing season and that Seller has crops growing on other portions of the Property. It is hereby agreed that a11 rent or other income �g_ payable pursuant to said lease shall remain the sole property of Seller and that Seller shall be entitled to remove a11 of Seller's craps following the Date of Closing in a reasonable manner. 10. Condemnation. If, prior to the Glosing Date, eminent domain proceedings are commenced against all or any part of the Property, Seller shall promptly give notice to Buyer of such fact and at Buyer's option {to be exercised within thirty (3Q) days after Sel.ler's notice) , this Agreement shall terminate, in whieh event neither party will have any further obligations under this Agreement except as specifically set forth herein, and the Earnest Mc�ney shall be refunded to Buyer. If Buyer shall fail to give such notice, then there shall be no reduction in the Purchase Price, and Seller shall assign to Buyer at the Closing Date all af the Seller's right, title and interest in and ta any award made or to ' be made in the condemnation proceedings with respect only to the Property it being understood and agreed ,that nothing herein shall be construed as giving Buyer any right or interest in any eminent domain prQceeding affecting any portion of Seller's praperty other than the Property. 11. Brakers. Each party represents and warrants to each other that they have dealt with no brokers, fir�ders or the like in connection with this transaction other than Coldwell Banker (Attentian Keith Collins, 8325 City Centre, Woodbury, MN 55125) . Seller agrees that it shall pay all real estate brokers' commissions due in connection with the purchase and sale of the Property and agrees to indemnify and hold Buyer harmless fram and against any commissions alaimed by any broker, finder or the like. Coldwell Bankers represents the Seller in this transaction and will receive a commission paid by Seller upon, and in the event of, closing. 12 . Assignment. Buyer may assign its rights under th�s Agreement before closing. Any such assignment will not relieve the assigning party of its obligatians under this Agreement. In the event of such assignment, Buyer shall promptly give Seller written notice thereof including the identity, address and telephane number af the assignee or its authorized representative. Z3. Survival�. All the terms of this Agreement, to the extent not intended herein to be performed prior to or on the Closing Date, will survive and be enforceable after the Closing. 14 . Notices. Any natice required or permitted to be given by any party upon the other is given in accordance with this Agreement if it is mailed in a sealed wrapper by United States Registered or Certified Mail, return receipt requested, postage prepaid, properly addressed as follows: -10- If to Seller: Roy E. Abbatt 715 Grain Exchange Building P.O. Box 15223 Minneapolis, MN 55415 With copy to: Joseph J. Christensen Snelling, Christensen, Briant & Laue, P.A. 5101 Vernon Avenue South, Suite 4Q0 Edina, MN 55436 If to Buyer: The Rosemount Port Authority c/o John Miller City of Rosemount 2875 145th Street West Rosemount, MN 55068 With copy to: Michael Miles . Fluegel, Moynihan & Miles, P.A. 1303 South Frontage Road' Hastings, MN 55033 Notices shall be deemed effective on the date of receipt or the date of mailing as aforesaid; provided, however, that if any notice is given by mail then the time for response to any notice by the other party shall commenee to run two (2) business days after the day of mailing. Any party may change its address for the service o� notice by giving written notice of such change to the other party, in the manner above speci�ied, five (5) days prior to the effective date of such ehange. 15. Captions. The paragraph headings or captions appearing in this Agreement are for convenience only, are not a part of this Agreement and are nat to be construed in interpret�.ng this Agreement. 16. Entire Aareement, Modification. This written Agreement constitutes the complete agreement bet�aeen the parties and supersedes any prior oral ar written agreements between the parties regarding the Property. There are no verbal agreements that change . this Agreement and no waiver of any of its terms will be effective uniess in a writing executed by the parties. 17 . Bindinq Effect. This Agreement binds and benefits the parties and their successars and assigns. 18. Controllincr Law. This Agreement has been made under the laws of the State of Minnesota, and such laws wi11 control its interpretation. 19, Remedies. If Buyer de€aults under this Agreement, Seller shall have the right to terminate this Agreement by giving written -11- notice to Buyer, pursuant to Minnesota Statutes 559 .21. The parties agrae that said Earnest Money is a down payment for the Purchase Przce and that it is their mutual intention that said sum sha11 constitute a down payment and be retained by Seller as part of the Purchase Price under the circumstances set out above. If either party defaults under this Agreement, this provision does not preclude the non-defaulting party from seeking and recovering fram the defaulting party damages for non-performance and/or specific perfarmance of this Agreement. However, any such actian for damages and/or specific performance must be commenced within six (6) months after such default. 20. Termination of Offer. If this Purchase Agreement has not been aecepted by Buyer executing and returning a copy hereof to the Seller and paying the Earnest Money to the broker identified in Section 11 above on or before July 23, 1993 , the offer of Seller contained herein shall be deemed terminated. IN WSTNESS WHEREOF, the Buyer has executed this Agreement as of the date first above written. SELLER Roy . Abbo t ` BUYER: Rosemount Port Authority By Edmund B. dunn, Chairperson And By Stephen Jilk, Executive Director Execution by Spouse of Rov E. Abbott The undersigned hereby joins in the execution of this Purchase Agreement for the purpose of subjecting and subordinating to this Furchase Agreement any right, title or interest in and to the Property described herein which the undersigned may now or hereafter have, including, without limitation, her marital rights or her other rights of dower, life estate and possessian, if any, to which a spouse may be entitled. , Dated: July �, 1993 . L ra A. Abbott _12_ . � , . EXHIBIT A PERMITTED ENCUMBRANCES 1. Subject to the ordinances of the County of Dakota 2 . Pipeline easement in 193 De�ds 361 (#34 of abstract) , transferred to Northern Natural Gas Company, a Delaware corporation, by transfers in 204 Deeds 209 (#41 of abstract) and 64 M.R. 62 (#42 of abstract) , and modified by Document No. 412678 (#�0 of abstract) . 3 . Pipeline easement in 268 Deeds 615 (#35 of abstract) to Mid- America Pipeline Campany, a Delaware corporatian, which has changed its name to MAPGQ Inc. by Document No. 707438 (#4O� of abstract) . The locatian of this easement was amended by document dated october 12, 1972 , filed October 24 , 1975, as Docurnent No. 424969 (#43 of abstract) . 4 . Existing roads. Highway and utility easernent for County Road 42 granted to Dakota County in Document No. 450575 (#49 of abstract) . County maps also show Biscayne Road on the east edge of the prernises. 5. Slope easement in connection with Gounty Road 42 granted to Dakota C�unty in Document No. 450632 {#5fl of abstraet) . 6. Electric Transmission Easement over the south 13 feet of the West 110 feet of the East 635 feet of the N� of NE; , Section 32, Township 115 North, Range 19 West dated Apri1 15, 1993 and granted by Roy E. Abbott and Laura A. Abbott, husband and wife, to Northern Natural Gas 'Company. 7. Crop leases for calendar year 1993 , the proceeds of which shall be and remain the sole praperty of Seller. t�� � �s . . . � . . CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION PORT AUTHORITY COMMISSION MEETING DATE: JULY 20, 1993 AGENDA ITEM: REVIEW OF DRAFT REQUEST FOR AGENDA SECTION: PROPOSAL ON MOTEL/RESTAURANT OLD BUSINESS PREPARED BY: JOHN MILLER, AGENDA NO. ECONOMIC DEVELOPMENT COORDINATOR 4. D. ATTACffi�SENTS: DRAFT RFP APPROVED BY• At the July 6 meeting the port authority rejected the two proposals the commissioners had received from the first RFP. I was directed to draft a second RFP. Attached please find a copy of that draft (without maps) . You will find the draft is not site specific on our part but requires the proposer to l select a specific site. The draft also states that °economy motels° wil� not be considered for port authorit�r assistance. A twen�y-five percent� cash equity is also required. Interviews and finalist selection would occur on September 21. At this point I've identified three interested motel developers - all experienced. RECO1�IlytENDED ACTION: Motion to direct the port authority staff to distribute the request for proposal. PORT AUTHORITY ACTION: � , MOTEL OR MOTELIRESTAi:t�tANT DEVELOPMENT PROJECT REQUEST FOR PROPOSAL ROSEMOUNT PORT AUT�iORITY I. Introduction The Rosemount Port Authority has completed a motel market study through its consultant Chase Brackett, Inc. A copy of that study is attached to and is part of this request for proposal. The market study indicates a favorable climate for motel development in the city. At this time, the Rosemount Port Authority wishes to receive written proposals for the development of a motel or motel and restaurant. This request is not site specific on the part of the Port Authority. The interested individual should select a site and his proposal should indicate whether he or the Port Authority would be responsible €or site acquisition. In this regard, the submitted proposal must be site specific on the part of the proposer. The Rosemount Port Authority is not interested in participating in the develapment of an economy moteL To ensure consideration by the Port Authority, any proposal shall include all requested information outlined in this request for proposal. Attached ta and considered part of this progosal are two maps showing 1) the boundaries of the city's pre-1979 Taac Increment Finance District and 2) possible sites for the location of the project. II. Final Development 'Fhe final development af this property shall be a 50 unit (minimum) motel or 50 unit (minimum) motel and restaurant. Other retail or service businesses may also be part of the proposed project. III. General Provisions A. The development must meet the City of Rosemount zoning and building code requirements. The usual and customary development review procedures used by the City of Rosemount and the Rosemount Port Authority shall govern the review process of this project. B. A cash escrow of one percent of the above-ground improvements (buildings, landscaping, and parking lot) shall be submitted with the proposal. Upon acceptance of the proposal by the city council, the escrow shall be deposited in a non-interest paying account. If the Port Authority�later determines for any reason that sufficient progress on the proposal is not being completed and the approval of the proposal is rescinded, the Port Authority will be entitled to keep the full amount of the escrow. Upon issuance af a certificate of occupancy for the project, the escrow shall be refunded in full but without interest. C. A development agreement will be drafted by the Port Authority's legal counsel binding the proposer to complete the project as finally agreed to by the proposer and by the Port Authority. D. The Rosemaunt Port Authority will consider financial assistance in completin • the pmject. Depending an the project's location, the Port Authority ma offer any of the following terms of assistance: 1. Tax Incrernent Financing. A map attached to and part of this request for proposal shows the boundaries of the "pre-1979" TIF district that includes most of the city's esta:blished downtown area. The TIF district expires in 1999 with the last taac payment being for the "first-half" of 2000. Motels and restaurants would both be eligible for this funding source. 2. Port AuthoritY Financing. The Rosemount Port Authority has the ability with city conncil approval to issue taxable general obligation bonds that may be used to finance a part of the project's development cost. 3. Assessment of Utility Costs. Utility and infrastructure costs may be assessed over a period of ten years. The interest wouid be at approxirnately two percent aboue the city's cost. 4. Land Write-Down.- If the proposer's site is located on city owned property, the Port Authority may write-down land costs or subordinate its position to permit the proposer to use the land equity to secure private fmancing. In any event, if public assistance in fmancing is requested, the proposer shall show a minimum of twenty-five percent cash equity in the project. 2 , . E. The awarded developer should expect to work closely with the Port Authority and city development staff for the entire duration of this project. F. Upon award of the project, the developer has six months to demonstrate significant progress toward campletion of the project satisfactory to the Port Autharity. A possible six month extension is possible at the discretion of the Port Authority. If after six months the Port Authority deems for whatever reason that insufficient progress has been made, it may, at its volition, rescind the project's approval. This solicitation provides broad outlines for the development in order to allow each developer maximum latitude for creativity and innovation in each proposal. The Port Authority's intent is that this process will heighten the competition and yield the best possible development for the city. IV. Presentatian and Award A. Timeline: The Request for Proposals will be Approximately mailed and advertised July 22, 1993 Deadline for accepting proposals September 16, 1993 12:01 p.m. Interviews for praposals September 21, 1993 and conditional project selection B. Selection Criteria: The awarded proposal will be based upon: (1) The compatibility of development plans wifh the Port Authority's wishes for the downtown, the recommendations of the city's Downtown Scoping Committee and the city's comprehensive plan. (2) Developer qual�cations to develop the proposed project and especially experience in operating similar projects. (3) Financial backing and strength ta develop the proposed project. If praprietary or confidential personal information is involved, it may be submitted to the city's financial consultant: David Drown Springsted, Inc. 85 East Seventh Place Suite 100 �1 "�t�1 3 , , St. Paul, MN 55101 The proprietary and co�dential financial information should be received by Springsted Inc. before 12;O1 p.m., Septernber 16, 1993. Springsted will review the information and report to the commissioners, assuring the proper conf'�dentiality of specifies. Springsted should be permitted to verify the informatian provided. � (4) Quality of construction, exterior building material selection, and aesthetic treatment of pazking and green areas. (5) Project detail provided to the Port Authority in.the proposal packet, i.e. the more detail, the better chance the project has of selection. (6) The size and scope of the project. The Port Authority reserves the right to reject any and all proposals for any reasons. C. Instructions to Proposers: {1) Ten (10) copies of the development proposal must be received by the Port Authority by September 16, 1993, 12:01 p.m. Proposals received after this date will be returned unopened. (2) Proposals must be addressed to: Mr. Stephan Jilk Executive Director Port Authority City of Rosemount 2875 - 145th Street West Rosemount, MN 55068 Proposals should be clearly marked "Motel - MoteURestaurant Project.�� (3) Questions�about this RFP may be directed to Mr. John Miller, Economic Development Coordinator, by calling 322-2a04 during regular business hours. Questions will be taken until 4:00 p,m,, September 15, 1993. (4) Contents of the proposal should include: a. The names and qualifications of individuals or companies to be involved in the project. 4 � , , b. General description and narraxive of the proposed project. c. Preliminary site lay-out (concept plan) showing the entire site including building location, ingress and egress, and parking lots. d. F'reliminary sketch plans of all buildings, including elevations of all sides. e. Statements to the extent possible of the impact the project will have on the community. l. New jobs to be created. 2. Valuation to be added to the city's tax base. 3. Other benefits to the eommunity. f. Breakdown of project space utilization, i.e. bank, office, retail, multiple-family, etc. List all prospective business tenants in the project. Include any letter of intent received from the prospective tenants. g. Timeta:ble for construction including beginning and completion. A project completion flow chart is required. h. Estunated cost for the proposed project. 1. La.nd 2. Site improvements and fees 3. General construction 4. I.easehoid improvements 5. Other soft costs. i. Detailed breakdown of public assistance requested and/or necessary for the project to proceed. j. -, Financial pro forma for the project. 5