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HomeMy WebLinkAbout20070507 - VI-30~I-30 Memo To: Mayor Hicks and City Council From: John Hinzman, Planning Director Date: May 7, 2007 Subject: Authorize Signature: Right of Entry Agreement #2006-53 -Twin Cities Habitat for Humanity -Pleasant Acres Second Addition REQUEST The City Council is asked to authorize signature of the attached right of entry agreement to allow work to commence on Pleasant Acres 2"d Addition prior to recording of the Final Plat. Overlapping easement areas are proposed to be vacated and re-described during the next month. The agreement would allow work to commence concurrent with final legal work. RECOMMENDATION The City Attorney, Planning, and Engineering have all reviewed the documents and recommend approval. The agreement requires submission of escrow and bonding required as part of the approved Development Agreement to ensure completion\reclamation. ATTACHMENTS • Right of Entry Agreement RIGHT OF ENTRY AGREEMENT This Right of Entry Agreement is made as of , 2007, by City of Hastings, a Minnesota municipal corporation, ("Grantor"), and Twin Cities Habitat for Humanity, Inc., a Minnesota non-profit corporation ("Grantee"). RECITALS A. Grantor is the owner in fee simple of real property in the County of Dakota, State of Minnesota, which is legally described as Lot 2, Block 1, Hastings Family Housing (the the "Grantor Property"). B. Grantor, as seller, intends to convey to Grantee, as buyer, that portion of the property described as Lots 1-4, Block 1, Pleasant Acres Second Addition according to the Final Plat attached hereto in Exhibit A (the "Grantee Property"), approved by Hastings City Council Resolution 2-03-07 and attached hereto in Exhibit B (the "Resolution"), This Final Plat has not yet been recorded. C. Grantor and Grantee have signed a Development Agreement for Pleasant Acres Second Addition, attached hereto in Exhibit C (the "Development Agreement"), governing the development of the Grantee Property. D. Prior to closing on the purchase of the Property, Grantee desires to enter the Grantee Property for the purposes ofbeginning site development work and construction ofthe four single-family houses (the "Houses") as contemplated and required by the Development Agreement. NOW, THEREFORE, in consideration of the foregoing recitals and the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by Grantor: Right of Entry. Grantor hereby grants to Grantee, its successors and assigns, a right of entry (the "Right of Entry") over, under, upon and across that portion of the Grantee Property for all purposes related to the construction of the Houses. The Right of Entry shall remain effective until the earlier occurrence of: (i) the date of closing; and (ii) the 60th day after the date hereof. If the parties agree, this Right of Entry may be extended for another thirty (30) days. Grantee, its agents, contractors, employees or invitees shall conduct their activities on the Premises in an orderly and lawful manner, securing at their own expense all required permits and licenses. Warranty of Title. Grantor represents and warrants to Grantee that Grantor is the fee owner of the Property, and that except as set forth in the Development Agreement and related documents there are no contracts for deed, leases, rental agreements, of occupancy agreements, or affecting title to the Property. Indemnification. Grantee shall indemnify, defend and hold harmless Grantor from and against any liabilities, costs, causes of action, demands, judgments, liens loss, damage, or expenses (including reasonable attorneys' fees) resulting from Grantee's activities on the Grantee Property or associated with Grantee's activities on the Property pursuant to the Right of Entry, except to the extent resulting from Grantor's negligence or willful misconduct. Condition of Premises. For purposes of this Agreement only, Grantee is accepting the Property on an "AS IS" basis and acknowledges that it is not relying upon any representation or warranty of Grantor as to the condition, quality or suitability of the Property for the intended uses. Grantee, at its sole expense, agrees to keep the Property in neat, clean and safe condition and, if the Property is not acquired by Grantee under the Purchase Agreement, agrees to restore the surface of the Property, except the Foundation, to its original condition and replace any damaged improvements prior to return of the Property to the Grantor. Performance Bond, Insurance and Cash Escrow. Grantee shall procure at its own expense insurance coverage in form and amount consistent with the Development Agreement, naming the Grantor as an additional insured, and shall furnish the Grantor with a certificate of said insurance prior to entering upon the Property. Grantee shall procure at its own expense a performance bond in form and amount consistent with the Development Agreement, naming the Grantor as beneficiary, and shall furnish the Grantor with a certificate of said bond prior to entering upon the Property. Grantee shall provide a cash escrow in an amount consistent with the Development Agreement prior to entering upon the Property. Liens. Grantee shall not cause or permit any liens or encumbrances of any kind to attach to the Property. Governin Law. This Right of Entry Agreement shall be construed and governed by the laws of the State of Minnesota. IN WITNESS WHEREOF, the parties hereto have executed this Right of Entry A~-eement on the above date. GRANTOR: GRANTEE: City of Hastings, A Minnesota Twin Cities Habitat for Hwnanity, Inc. Municipal Corporation By: Its: By: THIS INSTRUMEN"f WAS DRAFTED BY: Its: 'twin Cities Habi[ai rot humanity 3001 4'" Street South East Minneapolis, MN 55414