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HomeMy WebLinkAbout2012.05.14 EDA PacketAGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY MONDAY, MAY 149 2012 8:30 AM 8:30 am 1. Call to Order 8:31 am 2. Roll Call 8:32 am 3. Approval of Minutes EDA Meeting of April 9, 2012 8:35 am 4. Insurance Advisors — Greg Young Insurance Agency • Greg Young 9:00 am 5. Discussion on the Purchase Agreement for the City Owned Property • Mark Finnemann • Dick Fischer • Mike Brass 9:30 am 6. Discussion on Washington County Economic Development Efforts 10:00 am 7. Update on Downtown Redevelopment 10:30 am 8. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF MONDAY, MAY 14, 2012 3. APPROVAL OF MINUTES Staff recommends approval of the minutes from the April 9, 2012, EDA Meeting as presented. 4. INSURANCE ADVISORS — GREG YOUNG INSURANCE AGENCY Staff has invited Greg Young from Greg Young Insurance Agency, a new business in Hugo. The business is located in the Bald Eagle Industrial Park in Grant Barrett's office building on Fenway Boulevard Circle. A few months ago Mr. Barrett had a vacancy in his building and he created three smaller offices for flexible office space. Mr. Young is leasing one of the offices for his business. Staff recommends that the EDA welcome Greg Young as a new business owner in Hugo. 5. DISCUSSION ON THE PURCHASE AGREEMENT FOR THE CITY OWNED PROPERTY The development team would like to have a discussion with the EDA on a year extension of the purchase agreement for the property. The purchase agreement expires June 6, 2012. At its February 13, 2012, meeting the EDA heard from the development team on its marketing efforts for the property. The development team presented several iterations of development plans they have come up with for the site. Their ideas included commercial and hospitality aspects that have integrated an event center. They have been trying to find users that will fit those categories. They have provided potential users with a brochure that features information on Hugo and concept drawings for the site. The EDA generally liked the direction of the development team and encourage them to continue to work on development concepts for the property. Staff recommends the EDA discuss and make a recommendation on the proposed one year extension of the purchase agreement with the development team. 6. DISCUSSION ON WASHINGTON COUNTY ECONOMIC DEVELOPMENT EFFORTS There have been discussions during Greater MSP meetings regarding what Washington County's role should be for economic development. Staff will provide the EDA with information on Washington County is heading in regards to economic development. MINUTES FOR THE EDA MEETING OF APRIL 9, 2012 Miron called the meeting to order at 8:30 am. PRESENT: Arcand, Bever, Denaway, Klein, Puleo, and Miron ABSENT: Graff STAFF: Bryan Bear, City Administrator Rachel Juba, Planner APPROVAL OF MINUTES FOR THE EDA MEETING OF MARCH 12, 2012 Arcand made motion, Klein seconded, to approve minutes for the EDA meeting of March 12, 2012 All aye. Motion carried. XCEL ENERGY INC. Xcel Energy Inc., received site plan approval from the City Council for a 20,000 square foot training center on April 2, 2012. Construction is planned to start in May. Lynn Patzner from Xcel Energy Inc., was present at the meeting to talk about the project and Xcel's economic development efforts. Ms. Patzner gave a background of Xcel Energy Inc. She stated that they serve 8 states and are headquartered in Minneapolis. They are the number one wind energy provider and number seven for solar capacity. They have several green and clean energy programs available. She talked about the gas and electric training facility that received site plan approval from the City. There will be approximately 1,000 journeymen and apprentices trained at the Hugo facility each year. Xcel Energy believes that number will grow 10% by 2015. She stated that Xcel Energy will provide recommendations to the trainees on what is available in Hugo for services. Miron asked how the approval process was in Hugo and if Ms. Patzner felt that Hugo was business friendly. She stated that the City has extremely business friendly and worked with the Xcel Energy staff on revisions that were made throughout the process. There were no surprises was they went through the process. Denaway asked how Hugo's approval process compared to other cities they have worked with. She stated that Hugo had less fees associated with development, such as landscape escrow and park dedication. Ms. Patzner stated that Xcel Energy is planning a public open house once the facility is built. The EDA welcomed Xcel Energy as a new business in the community. UPDATE IN 2012 ROAD PROJECTS / INFRASTRUCTURE IMPROVEMENTS Staff presented the 2012 road projects and infrastructure improvements to the EDA. There are City, County, and State road projects going on in Hugo over the summer months. Lake Air Estates and Bald Eagle Estates neighborhoods will be part of a street reconstruction project. CSAH 8 west of Goodview Avenue to Highway 61 will be reconstructed. Highway 61 will part of a mill and overlay project by MnDOT. There are other projects that will be going through the design phase this year and will be constructed in 2013. DISCUSSION ON BUSINESS REGULATIONS AND INCENTIVES There have been several ordinances, policies, and programs implemented in the City over the last couple years to help Hugo become a more business friendly community. At the meeting staff provided a summary of the business regulations and items that effect businesses. The City continues to revise and create ordinances. The EDA agreed that the City is doing a good job with business friendly regulations. UPDATE ON DOWNTOWN REDEVELOPMENT Staff updated the EDA on downtown redevelopment and other happening in Hugo. National Recycling Inc. (NRI) has completed its new location in Cambridge and will be having an open house on April 26t'. At the May 2012 EDA meeting staff will have an item on the agenda for discussion on the purchase agreement for the City owned property. The agreement expires June 6, 2012. ADJOURNMENT Klein made a motion, seconded by Puleo, to adjourn at 10:55 am. All aye. Motion carried. 6.06.1 1 PURCHASE AGREEMENT by and between THE CITY OF HUGO (a Minnesota municipal corporation) "Seller" and MARK FINNEMANN to be assigned to FBF LLC (LLC to be applied for) (A Minnesota LLC) "Buyer" Dated Effective J—u V) e �e , 2011 TABLE OF CONTENTS TO PURCHASE AGREEMENT Section Page 1. Sale of Property.............................................................................. 1 2. Purchase Price and Manner of Payment .................................................... 1 3. Buyer's Contingencies...................................................................... 1 4. Seller's Contengencies...................................................................... 2 5. Closing......................................................................................... 2 6. Prorations...................................................................................... 3 7. Title Examination............................................................................ 3 8. Operation Prior to Closing.................................................................. 4 9. Representations and Warranties by Seller ................................................ 4 10. Casualty; Condemnation.................................................................... 5 11. Commissions................................................................................. 5 12. Assignment..................................................................................... 5 13. Survival.............................................,.......................................... 5 14. Notices......................................................................................... 6 15. Miscellaneous................................................................................ 6 16. Remedies...................................................................................... 6 Exhibits A Legal Description............................................................................ A-1 to 7 B Limited Warranty Deed..................................................................... B-1 6.11.10 PURCHASE AGREEMENT THTUAA,,, PURCHASE AGREEMENT ("Agreement") is made effective as of the �� day of , 2011 (the "Effective Date"), between THE CITY OF HUGO, a Minnesota municipal corporation ("Seller"), and MARK FINNEMANN , a Minnesota resident,to be assigned to FBF LLC ( a Minnesota LLC ( to be applied for ))("Buyer"). In consideration of this Agreement, Seller and Buyer agree as follows: 1. Sale of Property. Seller agrees to sell to Buyer, and Buyer agrees to buy from Seller, the following property (collectively, "Property"): 1.1 Real Property. The real property located in Washington County, Minnesota legally described on the attached Exhibit A ("Land"), together with (1) all easements and rights benefiting or appurtenant to the Land (collectively the "Real Property"). 2. Purchase Price and Manner of Payment. The total purchase price ("Purchase Price") to be paid for the Property shall be Seven Hundred Seventy Thousand Two Hundred and 00/100 Dollars ($770,200.00). The Purchase Price shall be payable as follows: 2.1 $500.00 as earnest money ("Earnest Money"), which Earnest Money shall be paid to Seller contemporaneously with the execution of this Agreement. 2.2 $769,700.00 in cash or by wire transfer of immediately available funds on the Closing Date Seller, at its sole and absolute discretion, may reduce the Purchase Price upon approval by the Hugo City Council of the architectural quality, building plans, site plan, proposed use of the Property; alternatively, Seller at its sole and absolute discretion, may offer tax increment financing to defray development costs. 3. Buyer's Contingencies. The obligations of Buyer under this Agreement are contingent upon each of the following: 3.1 Representations and Warranties. The representations and warranties of Seller contained in this Agreement must be true now and on the Closing Date as if made on the Closing Date. 3.2 Access and Inspection. Seller shall have allowed Buyer, and Buyer's agents, access to the Real Property without charge and at all reasonable times for the purpose of Buyer's investigation and testing the same. Buyer shall pay all costs and expenses of such investigation and testing, shall restore the Real Property, and shall hold Seller and the Real Property harmless from all costs and liabilities relating to Buyer's activities. Buyer shall have been satisfied with the results of all such tests and investigations performed by it or on its behalf on or before the Contingency Date (as hereinafter defined). 3.3 Title. Title shall have been found acceptable, or been made acceptable, in accordance with the requirements and terms of Section 6 below. 3.4 Access to Highway 61. Buyer shall have obtained approval from the Minnesota Department of Transportation for an addition access to the Land from Highway 61 at the north end of the Land on or before the Closing Date. 3.5 Developers.The obligations of the Buyer under this Agreement are contingent upon the Seller and Buyer entering into a Development Agreement relating to the Property according to terms agreeable to Buyer and Seller on or before the Closing Date. The "Contingency Date" shall be the date that the contingencies are met but not latter than 12 months from the Effective Date. If Buyer is not satisfied with its inspection of the Property on or before the Contingency Date or if title is not found acceptable to Buyer, or made acceptable, in accordance with the requirements and terms of Section 6 or in the event of casualty or condemnation under the terms of Section 9, then the Earnest Money shall be returned promptly to Buyer, and Buyer will execute and deliver to Seller a termination of this Agreement in a form acceptable to Seller, and Seller and Buyer shall have no further liability or obligations with respect to this Agreement. If Buyer gives Seller notice on or before the Contingency Date that the contingencies described in this Section required to be satisfied by the Contingency Date are either satisfied or waived by Buyer, then the parties will proceed to close the transaction contemplated hereby and, except as specifically set forth herein, the Earnest Money will be non- refundable to Buyer but applicable to the Purchase Price. 4. Seller's Contin eg, ncies. The obligations of the Seller under this Agreement are contingent upon the Seller and Buyer entering into a development agreement relating to the Real Property according to terms acceptable to Buyer and Seller on or before the Closing Date. 5. Closing. The closing of the purchase and sale contemplated by this Agreement (the "Closing") shall occur on June 1, 2011 (the "Closing Date"), but Buyer may close on any business day after the Effective Date by giving Seller at least five days' notice of such earlier date for the Closing. The Closing shall take place at 10:00 a.m. Central Time at Seller's office and conducted by a title company to be selected by Seller and licensed to do business in the State of Minnesota ("Title Company"). Seller agrees to deliver possession of the Property to Buyer on the Closing Date. Any party hereto may close via an escrow arrangement with the Title Company. 5.1 Seller's Closing Documents. On the Closing Date, Seller shall execute and deliver to Buyer the following (collectively, "Seller's Closing Documents"), all in form and content reasonably satisfactory to Buyer: 5.1.1 Deed. A Limited Warranty Deed conveying to Buyer a vendee's interest in the Property in the form attached hereto as Exhibit C. 5.1.2 FIRPTA Affidavit. A non -foreign affidavit, properly executed, containing such information as is required by Internal Revenue Code Section 1445(b)(2) and its regulations. -2- 5.1.3 IRS Forms. A Designation Agreement designating the "reporting person" for purposes of completing Internal Revenue Form 1099 and, if applicable, Internal Revenue Form 8594. 5.1.4 Well Certificate. A Certificate signed by Seller warranting that there are no "Wells" on the Land within the meaning of Minn. Stat. § 103I or, if there are "Wells", a Well Certificate in the form required by law. 5.1.5 Other Documents. All other documents reasonably determined by Buyer or the Title Company to be necessary to transfer the vendee's interest in the Property to Buyer. 5.2 Buyer's Closing Documents. On the Closing Date, Buyer will execute and deliver to Seller the following (collectively, "Buyer's Closing Documents"): 5.2.1 Payment. $769,700.00, by cash or by wire transfer of immediately available funds. 5.2.2 Development Agreement. A development agreement according to the terms and in the form required by Seller. 5.2.3 Other Documents. All other documents reasonably determined by Seller or the Title Company to be necessary to transfer the vendee's interest in the Property to Buyer. 6. Prorations. Seller and Buyer agree to the following pro -rations and allocation of costs regarding this Agreement: 6.1 Title Insurance and Closing Fee. Seller will pay all costs of the Title Evidence. Buyer will pay the premium required for the issuance of the Title Policy. Seller and Buyer will each pay one-half of any closing fee or charge imposed by the Title Company. 6.2 Deed Tax. Seller shall pay all State Deed Tax payable in connection with this transaction. 6.3 Real Estate Taxes and Special Assessments. Real Estate Taxes and installments of Special Assessments payable in the year in which Closing occurs shall be pro- rated based upon the Closing Date. 6.4 Other Costs. All other operating costs of the Property shall be allocated between Seller and Buyer as of the Closing Date, so that Seller pays that part of operating costs payable before the Closing Date and Buyer pays that part of operating costs payable from and after the Closing Date. 6.5 Attorneys' Fees. Each of the parties will pay its own attorneys' fees, except that a party defaulting under this Agreement or any Closing Document will pay the reasonable attorneys' fees and court costs incurred by the nondefaulting party to enforce its rights hereunder. -3- 7. Title Examination. Title Examination will be conducted as follows: 7.1 Seller's Title Evidence. Seller shall, within 10 days after the Effective Date, furnish the following ("Title Evidence") to Buyer: (a) a commitment ("Title Commitment") for an ALTA 2006 Owner's Policy of Title Insurance ("Title Policy") insuring title to the Real Property, in the amount of the Purchase Price, issued by the Title Company; (b) a current survey prepared by a registered land surveyor and complying with Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys (2005) 7.2 Buyer's Objections. Within 10 days after receiving the Title Evidence, Buyer will make written objections ("Objections") to the form and/or contents of the Title Evidence. Any matter shown on such Title Evidence and not objected to by Buyer within the foregoing 10-day period, shall be a "Permitted Encumbrance" hereunder. Seller will have 30 days after receipt of the Objections to cure the Objections, during which period the Closing will be postponed, if necessary. Seller shall use its best efforts to correct any Objections. To the extent an Objection can be satisfied by the payment of money only, Seller shall have the right to apply a portion of the cash payable to Seller at the Closing to the satisfaction of such Objection, and the amount so applied shall reduce the amount of cash payable to Seller at the Closing. If the Objections are not cured within such 30-day period, Buyer will have the option to do any of the following: 7.2.1 Terminate this Agreement; or 7.2.2 Waive the Objections and proceed to close. 8. Operation Prior to Closing. During the period from the date of Seller's acceptance of this Agreement to the Closing Date (the "Executory Period"), Seller and Buyer shall operate and maintain the Property in the ordinary course of business in accordance with prudent, reasonable business standards. Seller shall execute no contracts, leases or other agreements regarding the Property during the Executory Period that are not terminable on or before the Closing Date, without the prior written consent of Buyer, which consent shall not be unreasonably withheld. Seller agrees to forward all reasonable inquiries related to sale of the property to buyer. 9. Representations and Warranties by Seller. Seller represents and warrants to Buyer as follows: 9.1 Existence; Authority. Seller has the requisite power and authority to enter into and perform this Agreement and Seller's Closing Documents; such documents are valid and binding obligations of Seller, and are enforceable in accordance with their terms. 9.2 Seller's Defaults. Seller is not in default concerning any of its obligations or liabilities regarding the Property. 9.3 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. -4- 9.4 Proceedings. There is no action, litigation, investigation, condemnation or proceeding of any kind pending or threatened against Seller or any portion of the Property. 9.5 Wells. The Seller certifies and warrants that the Seller does not know of any "Wells" on the Land within the meaning of Minn. Stat. § 103I. This representation is intended to satisfy the requirements of that statute. 9.6 Sewage Treatment System Disclosure. For the purposes of satisfying any applicable requirements of Minn. Stat. § 115.55, Seller discloses and certifies that: a) Seller has no knowledge of the existence of an abandoned individual sewage treatment system on the Land. Except as herein expressly stated, Buyer is purchasing the Property based upon its own investigation and inquiry and is not relying on any representation of Seller or other person and is agreeing to accept and purchase the Property "as is, where is" subject to the conditions of examination herein set forth and the express warranties herein contained. 10. Casualty; Condemnation. If all or any part of the Real Property is substantially damaged by fire, casualty, the elements or any other cause, Seller shall immediately give notice to Buyer, and Buyer shall have the right to terminate this Agreement by giving notice within 30 days after Seller's notice. If Buyer shall fail to give the notice, then the parties shall proceed to Closing, and Seller shall assign to Buyer all rights to insurance proceeds, up to the Purchase Price, resulting from such event and shall pay to Buyer the amount of any deductible or co-insurance. If eminent domain proceedings are threatened or commenced against all or any part of the Real Property, Seller shall immediately give notice to Buyer, and Buyer shall have the right to terminate this Agreement by giving notice within 30 days after Seller's notice. If Buyer shall fail to give the notice, then the parties shall proceed to Closing, and Seller shall assign to Buyer all rights to appear in and receive any award from such proceedings. 11. Broker's Commission. Seller and Buyer represent to each other that they have dealt with no other brokers, finders or the like in connection with this transaction, and agree to indemnify and hold each other harmless from all claims, damages, costs or expenses of or for any other such fees or commissions resulting from their actions or agreements regarding the execution or performance of this Agreement, and will pay all costs of defending any action or lawsuit brought to recover any such fees or commissions incurred by the other party, including reasonable attorneys' fees. 12. Assignment. Seller may assign its rights under this Agreement before or after the Closing. Buyer may only assign its rights under this Agreement upon written consent from Seller, which consent may be withheld in Seller's sole and absolute discretion. Any such assignment will not relieve such assigning party of its obligations under this Agreement. 13. Survival. All of the terms of this Agreement and warranties and representations herein contained shall survive and be enforceable after the Closing. 14. Notices. Any notice required or permitted hereunder shall be in writing and given by personal delivery upon an authorized representative of a party hereto; or if mailed -5- by United States registered or certified mail, return receipt requested, postage prepaid; or if deposited cost paid with a nationally recognized, reputable overnight courier, properly addressed as follows: If to Seller: The City of Hugo 14669 Fitzgerald Avenue North Hugo, MN 55038 Attn: Bryan Bear With Copy to Eckberg Lammers Law Firm 1809 Northwestern Avenue Stillwater, MN 55082 Attn: David K. Snyder If to Buyer: Mark Finnemann 2145 Ford Parkway #301 SaintPaul,Minnesota 55116 Notices shall be deemed effective on the earlier of the date of receipt or the date of deposit, as aforesaid; provided, however, that if notice is given by deposit, the time for response to any notice by the other party shall commence to run one business day after any such deposit. Any party may change its address for the service of notice by giving notice of such change 10 days prior to the effective date of such change. 15. Miscellaneous. The paragraph headings or captions appearing in this Agreement are for convenience only, are not a part of this Agreement, and are not to be considered in interpreting this Agreement. This written Agreement constitutes the complete agreement between the parties and supersedes any prior oral or 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 unless in a writing executed by the parties. This Agreement binds and benefits the parties and their successors and assigns. This Agreement has been made under the laws of the State of Minnesota, and such laws will control its interpretation. 16. Remedies. If Buyer defaults under this Agreement, Seller shall have the right to terminate this Agreement in accordance with the applicable Minnesota statutes. If Buyer fails to cure such default within the statutory cure period, this Agreement will terminate, and upon such termination Seller will retain the Earnest Money as liquidated damages, time being of the essence of this Agreement. If Seller defaults under this Agreement, Buyer shall have the right to commence an action for specific performance of this Agreement as Buyer's sole and exclusive remedy under this Agreement. IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement effective as of the Effective Date. Date of Signature 2011 Date of Signature 2011 SELLER: THE CITY OF HUGO (a Minnesota municipal corporation) By its: BUYER: /lir, Finnemann EXHIBIT A TO PURCHASE AGREEMENT LAND LEGAL DESCRIPTION Parcel 1: The N'/2 of Lot No. 10 and part of the S'/z of said Lot No. 10 of County Auditor's Plat No. 7, described as follows: Commencing at the NW corner of said S'/2 of Lot No. 10; thence East along the North line thereof for 58 feet; thence South at right angle to said North line thereof for 7 feet; thence NW'ly to the point of beginning and also described as follows: That part of Government Lot 4, Section 20, Township 31 North, Range 21 West, City of Hugo, Washington County, Minnesota and that part of COUNTY AUDITORS PLAT NO. 7, according to the plat thereof on file and of record in the Office of the County Recorder, Washington County, Minnesota described as follows: Commencing at the northeast corner of said Government Lot 4, thence South 89 degrees 05 minutes 26 seconds West, bearings are based on the Washington County Project Coordinate System, North Zone, along the North line of said Government Lot 4, a distance of 770.34 feet; thence South 11 degrees 01 minute 52 seconds West, a distance of 736.79 feet to a '/2 inch iron pipe monument marked with a plastic cap inscribed ANEZ RLS 13775 and which is also the point of beginning of the land to be described; thence continuing South 11 degrees 01 minute 52 seconds West, a distance of 48.0 feet to a '/2 inch iron pipe monument marked with a plastic cap inscribed RLS 13590; thence South 81 degrees 48 minutes 31 seconds East, a distance of 50 feet to a''/z inch iron pipe monument marked with a plastic cap inscribed RLS 13590; thence North 81 degrees 07 minutes 37 seconds East, a distance of 51.83 feet to a % inch iron pipe monument marked with a plastic cap inscribed RLS 13590; thence North 89 degrees 30 minutes 25 seconds East, to the westerly shoreline of Egg Lake; thence northerly along said westerly shoreline to the intersection with a line that bears North 89 degrees 30 minutes 25 seconds East from the point of beginning; thence South 89 degrees 30 minutes 25 seconds West to the point of beginning. Property Identification Number: 20.031.21.24.0041 [Property Identification Numbers are for reference purposes only and do not form a part of the legal description] EXHIBIT A TO PURCHASE AGREEMENT LAND LEGAL DESCRIPTION PnrrPI ?- Lot 11, excepting therefrom the following described real estate: Beginning at the Southwest corner of said Lot, and running thence East on the South line thereof to the Southeast corner of said Lot, thence Northerly on the East line of said Lot, 3 feet to a point; thence Northwesterly to a point in the West line of said Lot, 10 feet Northerly from the Southwest corner of said Lot, and then Southerly along the West line of said Lot to the place of beginning. All being in County Auditor's Plat No. 7, according to the plat thereof on file and of record in the office of the County Recorder, Washington County, Minnesota. Property Identification Number: 20.031.21.24.0043 [Property Identification Numbers are for reference purposes only and do not form a part of the legal description] A-2 EXHIBIT A TO PURCHASE AGREEMENT LAND LEGAL DESCRIPTION Parcel 3: The South Half (S-%2) of Lot 10, excepting therefrom that part of the South Half (S-'/z) of Lot 10 included within the following described real estate: That part of Government Lot 4, Section 20, Township 31 North, Range 21 West, City of Hugo, Washington County, Minnesota and that part of COUNTY AUDITORS PLAT NO. 7, according to the plat thereof on file and of record in the Office of the County Recorder, Washington County, Minnesota described as follows: Commencing at the northeast corner of said Government Lot 4, thence South 89 degrees 03 minutes 26 seconds West, bearings are based on the Washington County Project Coordinate System, North Zone, along the North line of said Government Lot 4, a distance of 770.34 feet; thence South 11 degrees 01 minute 52 seconds West, a distance of 736.79 feet to a '/2 inch iron pipe monument marked with a plastic cap inscribed ANEZ RLS 13775 and which is also the point of beginning of the land to be described; thence continuing south 11 degrees 01 minute 52 seconds West, a distance of 48.0 feet to a '/2 inch iron pipe monument marked with a plastic cap inscribed RLS 13590; thence South 81 degrees 48 minutes 31 seconds East, a distance of 50 feet to a''/2 inch iron pipe monument marked with a plastic cap inscribed RLS 13590; thence North 81 degrees 07 minutes 37 seconds East, a distance of 51.83 feet to a '/2 inch iron pipe monument marked with a plastic cap inscribed RLS 13590; thence North 89 degrees 30 minutes 25 seconds East, to the westerly shoreline of Egg Lake; thence northerly along said westerly shoreline to the intersection with a line that bears North 89 degrees 30 minutes 25 seconds East from the point of beginning; thence South 89 degrees 30 minutes 25 seconds West to the point of beginning. Property Identification Number: 20.031.21.24.0042 [Property Identification Numbers are for reference purposes only and do not form a part of the legal description] A-3 EXHIBIT A TO PURCHASE AGREEMENT LAND LEGAL DESCRIPTION Parcel 4- That part of Lots Nine (9) and Ten (10) of County Auditors Plat No. 7, Washington County, Minn., described as follows, to wit: Commencing at the northeast corner of Government No. Four (4), Section Twenty (20), Township Thirty-one (31) North, of Range Twenty-one (21) West, City of Hugo, Washington County, Minnesota; thence South 89'05'26" West, bearings are based on the Washington County Project Coordinate System, North Zone, along the north line of said Government Lot Four (4), a distance of Seven Hundred Seventy and Thirty-four Hundredths (770.34) feet; thence South 11'01'52" West, a distance of Six Hundred Thirty-six and Sixty-one Hundredths (636.61) feet to a '/2 inch iron pipe monument marked with a plastic cap inscribed RLS 6617; thence South 11 *01' 52" West, a distance of One Hundred and Eighteen Hundredths (100.18) feet to a '/2 inch iron pipe monument marked with a plastic cap inscribed ANEZ RLS 13775; thence North 89°30'25" East, a distance of Two Hundred Twenty-one and Thirty-four Hundredths (221.34) feet to a `/2 inch iron pipe monument marked with a plastic cap inscribed ANEZ RLS 13775 and which is also the point of beginning of the parcel of land to be described; thence South 89'30'25" West, a distance of Two Hundred Twenty-one and Thirty-four Hundredths (221.34) feet to a `/2 inch iron pipe monument marked with a plastic cap inscribed ANEZ RLS 13775; thence North 11'01'52" East, a distance of One Hundred and Eighteen Hundredths (100.18) feet to a '/2 inch iron pipe monument marked with a plastic cap inscribed RLS 6617; thence North 89'30'25" East, a distance of One Hundred Fifty (150.00) feet to a `/2 inch iron pipe monument marked with a plastic cap inscribed RLS 6617; thence North 89°30'25" East, a distance of One Hundred Nineteen and Sixty-nine Hundredths (119.69) feet to a `/2 inch iron pipe monument marked with a plastic cap inscribed ANEZ RLS 13775; thence continuing North 89'30'25" East to the shore of Egg Lake; thence southwesterly along the shore of Egg Lake to its intersection with a line that bears North 89'30'25" East from the point of beginning; thence South 89'30'25" West to the point of beginning. Property Identification Number: 20.031.21.24.0040 [Property Identification Numbers are for reference purposes only and do not form a part of the legal description] A-4 EXHIBIT A TO PURCHASE AGREEMENT LAND LEGAL DESCRIPTION Parcel 5: All that part of Lot number 8, of County Auditor's Plat No. 7, Washington County, Minnesota, as surveyed and platted and now on file and of record in the office of the Register of Deeds, in and for the County of Washington and State of Minnesota described as follows, to wit: Beginning at the Southwest corner of said Lot, and running thence East on the South line thereof 150 feet to a point; thence North on a line parallel with the West line of said Lot, 50 feet to a point; thence West on a line parallel with the South line of said Lot, 150 feet to the West line of said Lot and thence Southerly on the West line of said Lot, 50 feet more or less, to the place of beginning. Property Identification Number: 20.031.21.24.0035 [Property Identification Numbers are for reference purposes only and do not form a part of the legal description] A-5 EXHIBIT A TO PURCHASE AGREEMENT LAND LEGAL DESCRIPTION Parcel 6: That part of Lot 8 of County Auditor's Plat No. 7, Washington County, Minnesota, described as follows: Beginning at a point on the Westerly line of said Lot 8 (also the Easterly line of Forest Boulevard North) distant 50 feet Northeasterly of the Southwest corner of said Lot 8) thence Northeasterly, along said Easterly road line 83.9 feet, more or less, to a point distant 287.54 feet Southwesterly of the Northwest corner of Lot 7 of said County Auditor's Plat No. 7; thence Southeasterly, deflecting 89 degrees 33 minutes 35 seconds to the right, 117.6 feet, more or less, to the intersection with a line drawn Northeasterly, parallel with the Westerly line of said Lot 8, from a point on the Southerly line of said Lot 8 distant 120 feet East of the Southwest corner thereof, thence Southwesterly, along said parallel line, 60.8 feet, more or less, to its intersection with a line drawn Easterly, parallel with the South line of said Lot 8, from the point of beginning; thence Westerly, along said parallel line, 120 feet to the point of beginning. excepting and reserving to the said state, in trust for taxing districts concerned, all minerals and mineral rights, as provided by law. Property Identification Number: 20.031.21.24.0038 [Property Identification Numbers are for reference purposes only and do not form a part of the legal description] A-6 EXHIBIT A TO PURCHASE AGREEMENT LAND LEGAL DESCRIPTION Parcel 7: That part of Lots 8 and 9 of COUNTY AUDITORS PLAT NO. 7, Washington County, Minnesota, described as follows: Commencing at the northeast corner of Government Lot 4, Section 20, Township 31 North, Range 21 West, City of Hugo, Washington County, Minnesota; thence South 89 degrees 05 minutes 26 seconds West, based on the Washington County Coordinate System, North Zone, along the north line of said Government Lot 4, a distance of 770.34 feet; thence South 11 degrees 01 minutes 52 seconds West, a distance of 636.61 feet to a `/2 inch iron pipe monument marked with a plastic cap inscribed RLS 6617; thence North 89 degrees 30 minutes 25 seconds East, a distance of 150.00 feet to a '/2 inch iron pipe monument marked with a plastic cap inscribed RLS 6617 and the point of beginning; thence North 10 degrees 51 minutes 11 seconds East, 50 feet; thence South 89 degrees 30 minutes 25 seconds West, 30 feet, more or less, to the easterly line or the southerly extension of the easterly line of the Van Buskirk parcel as described on a Warranty Deed, recorded as Document No. 622656; thence northeasterly, along said easterly line and/or its extension to the northeast corner of said Van Buskirk parcel; thence northwesterly, along the northerly line of said Van Buskirk parcel to the northwesterly corner of said parcel; thence northeasterly, along the westerly line of Lot 8 of said COUNTY AUDITORS PLAT NO. 7 to a point distant 271.54 feet southwesterly of the northwest corner of Lot 7 of said COUNTY AUDITORS PLAT NO. 7; thence southeasterly, to a point on the southerly extension of the westerly line of the recorded plat of KENNETH N. GRANGER ADDITION, as monumented, distant 303.92 feet southwesterly of the northwest corner of said plat; thence northeasterly, along said southwesterly extension to a point distant 52.40 feet southwesterly of southwest corner of Lot 2 of said KENNETH N. GRANGER ADDITION; thence southeasterly to a point on the westerly line of Lot 3 of said KENNETH N. GRANGER ADDITION, distant 113 feet southerly of an angle point in the westerly line of said Lot 3 (said angle point being 30 feet, more or less, easterly of the southeast corner of Oak Street as dedicated in said plat); thence southerly, along the westerly line of said Lot 3 to the shoreline of Egg Lake; thence southwesterly; along said shoreline to the point of intersection with a line which bears North 89 degrees 30 minutes 25 seconds East from the point of beginning; thence South 89 degrees 30 minutes 25 seconds West along said line to the point of beginning. Subject to a 64 foot wide permanent easement for exclusive use and possession from the northerly line of the above described parcel to the shoreline of Egg Lake. The east line of said easement is the west line of said Lot 3. Property Identification Number: 20.031.21.24.0039 [Property Identification Numbers are for reference purposes only and do not form a part of the legal description] A-7 EXHIBIT B TO PURCHASE AGREEMENT LIMITED WARRANTY DEED No dclinquom taus and transfer nncrod: Ccrtifio is of Real Estate Valuc ( ) Mod ( )not required Cenifirale of Rcal Eslatc Valuc No. _ County Auditor Br Dcout, STATE DEED TAX DUE HEREON: f Date .20_ LIMITED WARRANTY DEED (nau—cd for =riling data) FOR VALUABLE CONSIDERATION, THE CITY OF HUGO, a Minnesota municipal corporation ("Grantor"), conveys and quitclaims to MARK FINNEMANN ("Grantee"), real property in Washington County, Minnesota, legally described as follows: See attached Exhibit A together with all hereditaments and appurtenances belonging thereto. This Limited Warranty Deed conveys after -acquired title. Grantor warrants that Grantor has not done or suffered anything to encumber the property. The Grantor certifies that the Grantor does not know of any wells on the described real property. (Affix Deed Tax Stamp Here) THE CITY OF HUGO (a Minnesota municipal corporation) By: Its: Mayor By: Its: Clerk STATE OF MINNESOTA ) ) SS. COUNTY OF ) The foregoing was acknowledged before me this _ day of 2011, by , the Mayor, and the City Clerk, of THE CITY OF HUGO, a Minnesota municipal corporation, Grantor. THIS INSTRUMENT WAS DRAFTED BY: ECKBERG, LAMMERS, BRIGGS, WOLFF & VIERLING, P.L.L.P. (BCH) 1809 Northwestern Avenue Stillwater, MN 55082 Notary Public Send Tar Statements for the real property described herein to: Mark Finnemann M. Rachel From: Michael Graff [michaelgraff@yahoo.com] Sent: Thursday, April 26, 2012 9:00 AM To: Rachel Rachel, please pass on to Fran Miron that due to personal reasons I am resigning from the EDA effective immediately. I do not feel that I am a good fit for an advisory position. It was an interesting year and I especially enjoyed working with Fran. Regards, Mike W.,asChington o u r5' April 18, 2012 Bryan Bear City Administrator City of Hugo 14669 Fitzgerald Avenue North Hugo MN 55038 Dear Mr. Bear, Public Works Department Donald J. Theisen, P.E. Director Wayne H. Sandberg, P.E. Deputy Director/County Engineer Thank you for your letter regarding the City of Hugo's gratitude and support of the Washington County Regional Rail efforts to purchase, plan and construct extension of the Hardwood Creek Regional Trail between 140th Street to 145th Street in the City of Hugo. We are hopeful that purchase of the property will occur in 2012 and once the Regional Rail Authority has title to the property, construction and environmental documentation can be completed. Through the environmental review process, specifically, the determination by the State Historic Preservation Office that the current rail elevation is or is not an historic feature of the property, will be crucial in the feasibility of modifying the current rail elevation. Since federal funds are being used to purchase and construct the trail, the State Historic Preservation Office will need to comment on the project as required by the National Historic Preservation Act. As the Washington County Regional Rail proceeds through this process, your city staff will be notified of the planning efforts and environmental documentation and if the City of Hugo's generous offer of time and resources will be necessary. Also, in 2012, Washington County Parks will be preparing a Master Plan for the Hardwood Regional Creek Trail. This plan will include the complete 10 mile section from Hugo to the county line. We welcome Hugo's participation in preparation of the plan and will be contacting you in the near future to begin coordination. Again, the county appreciates you cooperation and enthusiasm on the extension of the Hardwood Creek Regional trail project and will keep you informed of the progress on this effort. Please contact Ann Pung-Terwedo, Senior Planner if you have future comments or questions on this project. Sincerely, 0e0wo". 'Sa� Lw� Wayne Sandberg, County Engineer/Deputy Director Washington County Public Works Cc: John Elholm, Parks Director Sharon Price, Property Acquisition Manager Ted Schoenecker, Transportation Planning Manager Ann Pung-Terwedo, Senior Planner 11660 Myeron Road North, Stillwater, Minnesota 55082-9573 Phone: 651-430-4300 • Fax: 651-430-4350 • TTY: 651-430-6246 www.co.washington.mn.us Eaual Emolovment O000rtunity / Affirmative Action