HomeMy WebLinkAboutResolution 8759 RESOLUTION 8759
RESOLUTION 17-EDA-300
CITY OF MOUNDS VIEW AND THE
MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF RAMSEY
STATE OF MINNESOTA
JOINT RESOLUTION APPROVING A REAL ESTATE PURCHASE OPTION
AGREEMENT FOR PROPERTY IN THE CITY OF MOUNDS VIEW
WHEREAS, the City of Mounds View (the "City") is a municipal corporation and
political subdivision duly organized and existing under the Constitution and laws of the State of
Minnesota; and,
WHEREAS, the Mounds View Economic Development Authority (the "EDA") is a
public body corporate and politic under the laws of the state of Minnesota; and,
WHEREAS, the City has the ability under Minnesota Statutes, Chapter 282, to acquire
certain tax-forfeited property upon application to Ramsey County, which is legally described on
Exhibit A(the"Property") attached hereto and hereby made a part hereof; and,
WHEREAS, Boulevard Apartments, a limited partnership under the laws of the state of
Minnesota, desires to enter into a Real Estate Purchase Option Agreement (the "Option
Agreement")which is attached hereto as Exhibit B; and,
WHEREAS, the City and EDA wish to acquire an interest in the Property and to enter
into the Option Agreement for the purpose of allowing the sale of the Property; and,
WHEREAS, the Planning Commission for the City has reviewed the proposed sale of
the Property and has determined that such sale complies with the City's comprehensive plan as
required by Minnesota Statutes, Section 462.356 or the City desires to dispense with the
requirements of Minn. Stat. § 462.356, subd. 2 and finds in the City's judgment that the proposed
sales of the Property has no relation to the comprehensive municipal plan of the City of Mounds
View.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Mounds
View and the Board of the Mounds View Economic Development Authority that the recitals and
exhibits,if any, set forth in this Resolution are incorporated into and made a part of this Resolution.
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Resolution 8759 & 17-EDA-300
May 22, 2017
Page 2
NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City Council of the
City of Mounds View and the Board of the Mounds View Economic Development Authority do
hereby approve the Option Agreement for the sale of the Property as substantially set forth in
Exhibit B, subject to modifications approved by the City Attorney that do not materially alter the
City's and the EDA's rights and obligations under the Option Agreement, and that are further
approved by the City's Mayor and City Administrator and EDA's President and Executive
Director, which approvals shall be conclusively evidenced by execution of the Option
Agreement.
NOW, THEREFORE, BE IT FURTHER RESOLVED, that City and EDA staff are
hereby authorized to undertake any actions necessary to acquire an interest in the Property
sufficient to allow the City and EDA to enter into the Option Agreement.
NOW, THEREFORE, BE IT FINALLY RESOLVED, that the City Council of the
City of Mounds View and the Board of the Mounds View Economic Development Authority
hereby authorize City staff and City consultants to develop any necessary documents to
effectuate such Option Agreement, and the Mayor and City Administrator and the President and
Executive Director, respectively, are duly authorized to execute any further agreements which
are necessary, in the opinion of the City Attorney, to carry out this transaction.
Adopted this 22th day of May, 2017.
CITY OF MOUNDS VIEW
By: (l� it14/6"
Carol A. Mueller, Mayor
ATTEST:
By: CY-eivoita--43
James Ericson, City Administrator
(seal)
MOUNDS VIEW ECONOMIC
DEVELOPMENT AUTHORITY
By: �� W/114/1
Carol A. Mueller, President
ATTEST:
By: Setd‘At_Q-L—
es Ericson, Executive Director
(seal)
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499209v6 MU205-47
REAL ESTATE OPTION AGREEMENT
THIS REAL ESTATE OPTION AGREEMENT ("Agreement') is made and entered into as
of s ,,- k j!N, 2017, by and between the City of Mounds View, a Minnesota municipal corporation
together with the Mounds View Economic Development Authority, a public body corporate and
politic under the laws of Minnesota (collectively, the "Seller') and Boulevard Apartments, Limited
Partnership, a Minnesota limited partnership ("Buyer").
RECITALS:
A. Pursuant to Minnesota Statutes section 282.01, subd. la (a) (the "Statute") and
that certain written notice delivered by the Seller to the County Auditor in and for Ramsey
County, Minnesota dated February 15, 2017 which is attached hereto as Exhibit A (the "Site
Control Document'), Seller has an opportunity to acquire certain tax forfeited real property for less
than market value which is located in Ramsey County, Minnesota and legally described on
Exhibit B attached hereto and hereby made a part hereof, together with all rights, title and interest
appurtenant thereto (the "Real Property");,and
B. Seller only intends to pursue such opportunity to acquire the Real Property upon an
indication from the Buyer that the Buyer wishes to purchase the Real Property; and
C. Seller wishes to grant Buyer an option to cause Buyer to take all reasonable efforts
to acquire such property; and
D. Should Seller successfully obtain title to the Real Property, Seller desires to grant to
Buyer, and Buyer desires to obtain from Seller the Real Property from Seller, under the terms and
conditions hereunder.
NOW, THEREFORE, in consideration of mutual covenants set forth in this Agreement, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Seller and Buyer agree as follows:
1. Grant of Option. In consideration of the sum of Five Hundred Dollars ($500.00)
paid by Buyer to Seller (the "Option Deposit'), receipt of which is hereby acknowledged by
Seller, Seller hereby grants to Buyer from and after the date of this Agreement and through and
including 11:59 PM Central Standard Time on November 1, 2017 (the "Option Deadline"), the
option to direct the Seller to take all reasonable efforts to acquire the Real Property (the
"Option").
2. Option Contingent. The Buyer hereby acknowledges that the Seller's obligation
to sell the Real Property hereunder is contingent on the Seller's successful receipt of title to the
Real Property from the state of Minnesota, pursuant to state law. If, for any reason the Seller is
unable to obtain title to the Real Property sufficient to effectuate such option sale outlined herein,
Buyer shall be fully released from any further obligations under this Agreement. Any right
granted to Buyer under this Agreement is subject to the contingency expressed in this section.
498959v7 MU205-47
3. Duty to Purchase. If Buyer elects to exercise its Option, and the Seller is
successful in obtaining title to the Real Property pursuant to state law, the Buyer shall be
obligated to purchase the Real Property from the Seller under the terms stated herein. This
provision shall be subject to specific performance.
4. Manner of Exercise of Option; Notices. If Buyer elects to exercise the Option, it
shall do so by giving written notice thereof to Seller (such notice, an "Option Notice") on or
before the Option Deadline. An Option Notice shall be in writing and shall be deemed given on
the date (i) delivered personally, (ii) deposited with the United States Postal Service, postage
prepaid, registered or certified, return receipt requested, (iii) deposited with a national courier
guaranteeing overnight delivery, or (iv) sent via facsimile or email with electronic delivery
confirmed. Notwithstanding anything in this Agreement to the contrary, upon Buyer giving a
written Option Notice to Seller, and upon Seller's successful acquisition of the Real Property,
the Buyer shall be obligated to acquire the Real Property from the Seller and shall pay all costs
for such transaction, including, but not limited to the Purchase Price as defined below, and to
enter into a Purchase and Development Agreement with the Seller regarding the sale and
development of the Real Property consistent with Minnesota law, including but not limited to
Minnesota Statutes, Section 469.105.
5. Seller's Actions. Promptly upon receipt of an Option Notice from Buyer, Seller
shall undertake all actions required under the Statute and the Site Control Document in order for
the Seller to obtain fee title to the Real Property, and thereafter to immediately convey fee title to
the Buyer pursuant to the terms of this Agreement.
6. Purchase Price. The purchase price paid by the Buyer to the Seller for the Real
Property shall be an amount equal to the sum of the price paid by the Seller for the Real Property
pursuant to the Statute and determination by the Ramsey County Board, (such price being
estimated to be approximately $110,921), plus any and all costs, taxes and fees, consultant fees,
including, but not limited to legal, engineering and financial advisor fees, incurred by the Seller
in acquiring and undertaking all actions required under the Statute, the Site Control Document,
or otherwise, in order for the Seller to obtain fee title to the Real Property, less the amount of the
Option Deposit (such sum, the "Purchase Price"). The Purchase Price shall be payable by
certified check or wire transfer on the Closing Date (as hereafter defined).
7. Closin . If the Buyer shall become obligated to purchase the Real Property from the
Seller pursuant to this Agreement, the parties shall set a mutually agreeable closing date, which
shall be on the same date as the date of the Seller's acquisition of fee title pursuant to the Statute
(the "Closing Date"). Upon the Closing Date, Seller shall deliver to Buyer a Quit Claim Deed, duly
executed and in recordable form, together with any such other documents as may be reasonably
required by Buyer's title insurance company to effectuate the conveyance of marketable title of the
Real Property to Buyer. Upon the Closing Date, Buyer shall deliver to Seller the Purchase Price,
together with any documents as may be reasonably required by Buyer's title insurance company to
consummate the transaction. The Buyer and Seller shall endeavor to arrange the Seller's acquisition
of the Real Property and the conveyance of the Real Property to Buyer to occur by a simultaneous
escrow closing. Buyer shall be responsible for any and all costs of the closing for the Real
Property.
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498959v7 NW205-47
8. Option Not Obligation. For the avoidance of doubt, the Option granted to Buyer
hereunder represents purely an option and not an obligation to pursue the acquisition of the Real
Property pursuant to the terms of this Agreement. Notwithstanding anything in this Agreement
to the contrary, upon Buyer giving a written Option Notice to Seller, the Buyer shall be obligated
to acquire the Real Property from the Seller in the event that Seller is successful in gaining title
to the Real Property, and Buyer shall pay all costs for such transaction, including, but not limited
to the Purchase Price as defined below. Buyer shall also be required to enter into a Purchase and
Development Agreement with the Seller regarding the sale and development of the Real Property
consistent with Minnesota law, including but not limited to Minnesota Statutes, Section 469.105.
In the event that the Buyer does not exercise the Option by the Option Deadline, then the Seller
shall retain the Option Deposit as full and complete consideration for the Option granted by this
Agreement.
9. Property "As Is" / Buyer's Diligence. SELLER MAKES NO
REPRESENTATIONS OR WARRANTIES OF ANY KIND TO BUYER, INCLUDING,
WITHOUT LIMITATION, THE PHYSICAL CONDITION OF THE REAL PROPERTY OR
ITS SUITABILITY FOR ANY PARTICULAR PURPOSE. Buyer acknowledges that Buyer has
already (or, prior to the Closing Date, will have) independently inspected the Real Property and,
if Buyer shall deliver an Option Notice, then it shall do so based solely upon Buyer's own
examination and inspection. Buyer agrees that the Real Property is to be sold to and accepted by
Buyer upon the Closing Date in its then present condition, AS IS, WITH ALL FAULTS, IF
ANY, AND WITHOUT ANY WARRANTY WHATSOEVER, EXPRESS OR IMPLIED. To
the extent possible, Seller shall permit the Buyer access to the Real Property to conduct such
inspections and tests thereof as the Buyer may deem necessary or desirable prior to the Closing
Date, provided that Buyer shall indemnify and save the Seller harmless from any claims or
liability arising from Buyer's tests and inspections of the Real Property.
10. Governing Law. This Agreement shall be construed as to both validity and
performance and enforced in accordance with and governed by the laws of the State of Minnesota.
11. Seller's Obligation. The Buyer expressly acknowledges that the Seller's sole
obligation hereunder is to take all reasonable steps in order to acquire title to the Real Property. The
parties hereby acknowledge that the Seller has no right to purchase the Real Property, and that no
government entity is under any legal obligation to sell the Real Property to the Seller. In the event
that the Seller is unable to obtain title the Real Property, all of Seller's obligations hereunder shall
terminate immediately upon notice of such finding.
[THE REMAINDER OF THIS PAGE HAS BEENLEFT BLANK WTENTIONALLY.]
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IN WITNESS WHEREOF, the undersigned have signed this Real Estate Option Agreement as of
the day and year first written above.
SELLER:
CITY OF MOUNDS VIEW
By: /`7CLCCCi�Ci/
Carol A. Mueller
Its: Mayor
By: t wl E-aL"'Twp
James Ericson
Its: City Administrator
MOUNDS VIEW ECONOMIC DEVELOPMENT
AUTHORITY
By:
Carol A. Mueller
Its: President
By: � 1
James Ericson
Its: Executive Director
[Signature pages to Purchase Agreement]
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498959v7 MU205-47
BUYER:
BOULEVARD APARTMENTS, LIMITED
PARTNERSHIP
By: ma,n�S
Its: General Partner
By:
Chris Sto a
Its: 0,es- titf
[Signature pages to Purchase Agreement]
498959v7 NW205-47
EXHIBIT A
Notice to County Auditor
From:
Kujala, Kristine fmailto:Kristine. Kui ala C@CO.RAMSEY.MN.U51
Sent:
Wednesday, February 15, 201710:12 AM
To:
Brian Beeman
Cc:
Egan, MaryLou
Subject:
RE: HOLD: Mounds View Tax Forfeit parcels
Brian,
Thank you for your request. The parcels will be removed from the counter sale list and placed on a six-
month hold.
Pursuant to statute I am required to inform you of the start date of the hold period which is February
15, 2017.
Please let me know if you have any questions.
Kristine A. Kujala I Supervisor
Ramsey County
Property Records & Revenue
90 W Plato Blvd
Saint Paul, MN 55107
651.266.2081- voice
651.266.2022 —fax
From: Brian Beeman fmailto:brian.beemanCdci.mounds-view.mn.usl
Sent: Wednesday, February 15, 20177:26 AM
To: Kujala, Kristine <Kristine.KUiala@CO.RAMSEY.MN.US>
Subject: HOLD: Mounds View Tax Forfeit parcels
Kristin,
The City of Mounds View would like to put a hold on the following parcels:
PID: 063023310031
PID; 063023310241
Thank you,
Brian Beeman, M.P.A.
Business Development Coordinator
763.717,4029 w 1763.717.4019 f
2401 Mounds View Boulevard (formerly County Road 10)
Mounds View I MN 155112
www.ci.mounds-view.mn.us
49895910 MU205-47
wrdn."
Legal Description
PID: 06-30-23-31-0031
Parcel 1. Lot 50, except that part which lies Southwesterly of a line run parallel with and distant
100 feet Northeasterly of the Southwesterly boundary of said Lot 50, also except that part
described as follows:
Commencing at the Northwest corner of said Lot 50; thence East 7 feet along the
North line of said Lot 50; thence Southerly 100 feet to a point of intersection on the
West line of said Lot 50; thence North along said West line of said Lot 50 to the
point of commencement; Auditor's Subdivision No. 89, Ramsey Co., Minn. The
said excepted part of the above described property, the Southwesterly 100 feet has
been taken by the State of Minnesota for public Highway purposes.
Parcel 2. All that part of Lot 32, Auditor's Subdivision No. 89, Ramsey Co., Minn., described as
follows, to -wit: Commencing at a point on the West line of Lot 50, Auditor's Subdivision No. 89,
which point is 100 feet South of the Northwest corner of said Lot 50; thence South to a line 100
feet Northeasterly from and parallel with the Southerly line of Lot 32; thence Northwesterly on
said parallel line 32 feet; thence Northeasterly to the point of beginning.
and,
PID: 06-30-23-31-0241
The South 135.00 feet, front and rear, of Lot 47, Auditor's Subdivision No. 89, lying westerly of
the East 187.00 feet.
498959v7 MU205-47