HomeMy WebLinkAbout20100517 - VII-3Memo
To: Mayor Hicks and City Council
From: John Hinzman, Community Development Director
Date: May 17, 2010
SubjectPublic Hearing:
:Consider Sale of Property: Lot 8 and West
th
Half of Lot 7, Block 6, H.G. Bailly’s Addition (formerly 11
Street).
REQUEST
The City Council is asked to hold a public hearing to consider sale of
approximately 0.29 acres located directly south of Walgreens formerly used as
th
The Council is asked to hold the public hearing only, final
11 Street.
action on the sale would be conducted at a later meeting.
The property is
legally described as Lot 8 and West Half of Lot 7, Block 6, H.G. Bailly’s Addition,
as shown below:
BACKGROUND
The City has received an offer to purchase the property from Family Video.
Family Video is also seeking to purchase the adjoining home at 1101 Vermillion
Street in order to construct a video store. Please see attached purchase
agreement for further information.
PLANNING COMMITTEE OF CITY COUNCIL
On February 3, 2009 the Planning Committee of City Council (Alongi, Slavik, and
Balsanek) reviewed potential sale of the property for private development. The
Committee did not see an immediate need to retain the property and was open to
sell the property as part of a larger development.
SALE OF PROPERTY – CITY CHARTER
Section 7.04 of the City Charter outlines the procedures for sale real property as
follows:
ATTACHMENTS
Purchase Agreement – Family Video
REAL ESTATE PURCHASE AGREEMENT
031605
The undersigned Purchaser hereby offers and agrees to purchase from City of Hastings (Seller) the following property
situated in the city/town of Hastings, MN County of Dakota described as follows
______with the approximate lot size of 66 x 198 together with all improvements, and appurtances, if any, now on
the premises, and pay therefor the sum of Forty Thousand and 00/100 Dollars ($40,000), subject to the existing building
and use restrictions, easements, zoning ordinances, and taxes, if any, upon the following conditions:
CASH SALE Delivery of acceptable Warranty Deed conveying marketable title. Payment of purchase money to be made
in cash or certified check at closing. Earnest money deposit of $2,000 to be made within 10 days after execution of
Agreement by Seller to be held by mutually acceptable Escrow Agent.
CONTINGENCIES: Purchaser’s performance under this agreement is contingent upon:
Purchaser shall have one hundred twenty (120) days from the date of receipt of deposit by mutually acceptable escrow
agent to satisfy the following contingencies:
1.Seller, at Seller’s cost, providing Phase One environmental survey showing that the subject premises meets the
United States Environmental Protection Agency and State Department of Natural Resource standards for being free of
environmental problems, hazards, or dangers. This survey to be performed by an entity acceptable to Purchaser.
2.Purchaser shall have the right to perform such inspections, surveys, and tests on the subject property, as Purchaser
sees fit, including the right to perform soil borings, during the contingency period, to determine the condition of the
soil with respect to environmental contamination, and possible fill and soil compaction and subsoil condition
including subsurface foundations, low load capacity, excessive rocks, dump sites and high ground water. If
unacceptable soil conditions are found, Purchaser shall have the right to terminate or renegotiate the agreement.
Purchaser shall promptly repair any damage resulting from such inspections or testing.
3.Purchaser shall have the right to inspect premises, including any improvements being purchased with regard to
termites and asbestos contamination or any other material defects or adverse conditions found in which event
Purchaser shall have the right to terminate this agreement during the contingency period. Should any asbestos be
discovered, it is Sellers sole responsibility to have any and all asbestos removed and disposed of.
4.Purchaser obtaining acceptable financing for land and building.
5.Purchaser obtaining all necessary permits, approvals, consents, variances, acceptances, authorizations, etc. for the
development of Purchaser’s commercial building including standard Family Video signage, with ample parking in the
Purchaser’s sole opinion and, the intended use and occupancy of the premises as required by the purchaser, and as
required by all the appropriate municipal, village, township, county, state, and federal or other governmental agencies
or authorities. If unreasonable site or building costs result from municipal requirements, Purchaser shall have the right
to terminate or renegotiate this agreement. Purchaser shall use reasonable diligence in attempting to obtain all such
permits, approvals, etc.
6.Purchaser obtaining access, without cost, to public thoroughfares adequate, in the opinion of the Purchaser, for
intended use of premises.
7.Utilities (water, sewer, storm sewer, electric and gas) must be brought to the site by the Seller at Seller’s cost.
8.Any existing and/or pending leases, as well as Tenant rights, pertaining to the property being purchased, shall be
vacated and all lease contracts declared null and void at the time of closing, unless waived by Purchaser in writing.
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9.Within 20 days after execution Seller shall provide Purchaser with any survey or maps of the property, and copies of
any deed use restrictions and any public easements pertaining to property.
10.If any of the above contingencies cannot be met, at the option of the Purchaser, this agreement may be declared null
and void and all deposit/escrow money shall be returned.
SELLLER’S REPRESENTATIONS: Seller represents and warrants that:
1. The property is owned and operated by Seller in accordance with all applicable laws, ordinance, rules, regulations and
orders including but not limited to those relating to use zoning environment or health and safety.
2. Seller has authority to convey the property free and clear of liens and encumbrances.
3. Adequate vehicle access exists on the property from public roads.
4. Adequate utility connections are on the property for gas, electricity, telephone, waster, and sewer.
5. The property has not flooded within the past 5 years and is not on a 100 year flood plain or flood insurance area.
6. Seller has no notice of any claim of a governmental agency that the construction, vegetation or use of any of the
property is in violation of any applicable zoning, use, healthy, safety, or environmental law, ordinance, code, rule or
regulation regulating the use of the property.
7. To the best of Seller’s knowledge the property has not been used as a landfill, dump site, waste disposal site, or any
similar usage and there are no underground storage tanks on the property.
8. Seller has no notice of knowledge of any soil condition or any other adverse conditions which would significantly
increase the cost of Purchaser’s proposed development, including but not limited to subsurface foundations, subsoil
organic or non organic fill,, excessive rock condition, low load bearing soil, dumpsites, high ground water or any
toxic or hazardous materials.
9. Seller has no knowledge or notice from any governmental authority of any proposed public improvement which may
result in a special assessment on the property, or any proposed or completed tax reassessment, or any pending or
planned condemnation or taking of the property.
10. There are no actions, suits, proceedings, orders, judgments, decrees, or delinquencies outstanding, pending or
threatened against Seller or the property that would affect Sellers’ ability to perform hereunder.
11.Seller shall maintain the property in the same condition as it is on the execution date herein by Seller, ordinary wear
and tear accepted. If the property is materially damaged or destroyed or any part thereof condemned prior to closing,
Purchaser may terminate this agreement and receive back the earnest money deposit.
12.At the closing there will be no obligations or liens or tax, contract, or tort liabilities of Seller or against the property
for which Purchaser will be liable except for the obligations stated herein or in the exceptions in the Title Policy or the
closing statement mutually agreed to be the parties.
13.At the closing the representation herein shall be true and correct as if specifically made at that time by Seller, and
shall survive the warranty deed herein.
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PURCHASER’S REPRESENTATIONS: Purchaser represents it is authorized to execute this agreement and will perform
the terms of the agreement at Closing including the payment of the Purchase price, and further represent that there are no
suits or proceedings threatened or pending against Purchaser that would affect Purchaser’s ability to perform hereunder.
GENERAL CONDITIONS: This is a legal document and could become a binding contract and it is recommended that the
parties to this agreement retain an attorney to protect their interests in this transaction.
1.As evidence of clear and marketable title, Seller agrees to furnish, at Seller’s cost, within thirty days of execution of
this Agreement, Commitment for Title Insurance issued by a land title insurance company, acceptable to Purchaser in
an amount not less than the purchase price. Purchaser shall state in writing any objections to the title. If the objections
are not cured within thirty days thereafter this agreement shall be void and earnest money returned to Purchaser; or
Purchaser may elect to take said title as it then is and deduct the amounts of liens and encumbrances from the
purchase price. At closing Seller shall deliver an Owners Title Insurance Policy to Purchaser together with a warranty
deed free and clear of all liens and encumbrances, and shall also deliver possession of the property free of any
tenancies.
2.In the event of default by Seller hereunder, Purchaser may, at it’s option, elect to enforce the terms hereof, or demand
and be entitled to reimbursement for all costs arising from the breach or default of this agreement, including
reasonable attorney fees, and any other remedy afforded by law.
3.All taxes, assessments, special assessments or other encumbrances which have, or may, become lien upon the land as
the date of the closing of the sale of the property, whether recorded or not recorded shall by paid by Seller. Current
taxes, if any, shall be prorated and adjusted as of the date of closing in accordance with the due date of the taxing
authority to which taxes are paid for the subject property using the rate and amount shown on the last tax statement.
Taxes shall be considered as paid in advance. Interest, rents, water, and sewerage bills shall be prorated and adjusted
as of the date of closing.
4.If this agreement is accepted by Seller and the contingencies are satisfied, in the Purchaser’s opinion, and if title can
be conveyed under the conditions required herein, Purchaser agrees to complete this sale within the time allowed
herein to satisfy contingencies.
5.The closing shall take place at the lending institution of Purchaser, or its designated agent.
6.This contract shall be accepted by Seller on or before ten (10) business days from date of Purchaser’s signature below.
7.This contract contains the entire agreement between the parties and may not be changed or modified, either in whole
or in part, except by initialing and dating changes herein, or by an agreement in writing signed and dated by all parties
hereto. Any addenda attached hereto, signed or initialed and dated by all parties hereto shall be deemed as part of this
contract.
8.If Purchaser is working diligently to perform the contingencies herein, Purchaser may, at it’s option, in writing,
extend this agreement for a period of thirty (30) days.
9.Any broker’s commission interest shall be added to this agreement as an addendum.
10.This agreement shall not be assigned, encumbered or transferred by Seller without the written consent of Purchaser.
Time is of the essence under this contract. The covenants and agreements herein shall extend and survive the closing
and be binding upon and inure to the benefit of the heirs, executors, administrators and successors and assigns of the
parties.
11. An executed fax copy of this agreement shall constitute an original.
ACCEPTED (SELLER):
PURCHASER:
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Signature: Date: 4-21-2010 Signature: Date:
Print Name: Douglas Klang Print Name:
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