HomeMy WebLinkAboutX-E-02 Authorize Signature - First Amendment to Purchase Agreement at 1292 North Frontage Rd. City Council Memorandum
To: Mayor Fasbender & City Council Members
From: Ryan Stempski – Public Works Director
Date: February 18, 2025
Item: Authorize Signature of the First Amendment to Purchase Agreement at 1292 North Frontage
Road
Council Action Requested:
The Council is requested to authorize signature of the first amendment to purchase agreement for
acquisition of 1292 North Frontage Road.
Background Information:
At the November 18, 2024, City Council Meeting, a purchase agreement to acquire 1292 North Frontage
Road was approved by City Council. The first amendment to the purchase agreement includes the
following two revisions:
1. Moving the closing date back from February 28, 2025, to May 30, 2025 (on or before) to allow
for the Phase II Environmental Site Assessment to be completed for due diligence.
2. If the City terminates the agreement and does not close on the property, the earnest money in
the amount of $10,000 would be retained by the seller for lost rent and other costs.
Financial Impact:
None. The purchase price and reimbursable relocation expenses remain unchanged and continue to be
eligible for 3M Settlement Funds. It should be noted that if the City decides not to close on the property,
the $10,000 Earnest Money would be retained by JoCor and that expense would most likely not be
eligible for 3M Settlement Funds.
Attachments:
First Amendment to Purchase Agreement for 1292 North Frontage Road
X-E-02
1
FIRST AMENDMENT TO PURCHASE AGREEMENT
THIS FIRST AMENDMENT TO PURCHASE AGREEMENT (this “First
Amendment”) is entered into as of , 2025 (the “Effective Date”), by and
between the JoCor Holdings, LLC, a Minnesota limited liability company (“Seller”), and City of
Hastings, a municipal corporation under the laws of Minnesota (“City”).
RECITALS
Recital No. 1. Seller and City entered into a Purchase Agreement dated November 20,
2024 (“Purchase Agreement”) for the Property described on Exhibit A to the Purchase Agreement.
Recital No. 2. According to the terms of the Purchase Agreement, the Closing Date is
to be completed on or before February 28, 2025.
Recital No. 3. City has environmental condition requirements and needs additional
time to meet those requirements.
Recital No. 4. City has requested an extension of the Closing Date to May 30, 2025.
Recital No. 5. Buyer does not object to the extension of the Closing Date.
NOW, THEREFORE, in consideration of the mutual promises and covenants of each to
the other contained in this First Amendment and other good and valuable consideration, receipt of
which is hereby acknowledged, the parties hereto do covenant and agree as follows:
1. The entire Purchase Agreement is hereby incorporated into the First Amendment, except
as modified below.
2. Section 6 of the Purchase Agreement shall be removed and replaced in its entirety as
follows:
6. Closing. The closing of the purchase and sale contemplated by this Agreement (the
“Closing”) shall occur on or before May 30, 2025 (“Closing Date”), unless otherwise
agreed to by the parties. Seller agrees to deliver legal and actual possession of the Property
to City on the Closing Date.
3. Section 1.2 of the Purchase Agreement shall be removed and replaced in its entirety as
follows:
1.2 Purchase Price. The purchase price to be paid by City to Seller for the Property
shall be One Million Twenty-Five Thousand Dollars and 00/100s
($1,025,000.00) (the “Purchase Price”), payable as follows: (a) Ten Thousand
Dollars and 00/100s ($10,000.00), as earnest money (“Earnest Money”), to be
paid to DCA Title, 750 Main Street, Suite 280, Mendota Heights, MN 55118
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