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HomeMy WebLinkAbout5.F.5. Bids for Land Sale north of the Library 5:F.s-. CITY OF SHAKOPEE Memorandum CONSENT TO: Mayor and Council Mark McNeill, City Administrator FROM: Gregg Voxland, Finance Director SUBJ: Bids for land sale north of the Library DATE: March 2, 2007 Introduction & Background Council has received bids for a triangle shaped parcel of land north of the library (parcel 27-149003-0). Council action at the 2/20/07 council meeting was to deferred action until the 3/6/07 meeting, prepare a purchase agreement and have it executed for action at the 3/6/07 council meeting. The high bidder has not executed the purchase agreement for $60,000 with a $5,000 deposit as of this writing. The purchase agreement was drafted with sale ftas is" and no representation by the city that the parcel is free from contaminates or that it is a buildable lot. The buyer has requested that the City do a phase I and II environmental study due to the contamination found at the Library site. preliminary estimate is about $5,000 for such study. Alternatives 1. Table action on the agreement until March 20th so staff can obtain a better quote on the environmental study for Council, 2. Rebid the sale. 3. Landscape the area to enhance downtown and the library site. 4. Action Move to table action on the purchase agreement for the lot north of the Library until March 20, 2007. ~VOXland Finance Director H,\Finance\docs\ , . S.F.S. D"l Tf1 8L. ~ PURCHASE AGREEMENT 1. PARTIES. This Purchase Agreement is made on . , 2007, by and between the CITY OF SHAKOPEE, a Minnesota municipal corporation, 129 Holmes St. So., Shakopee, Minnesota 55379 (Seller) and Daniel McGraw (Buyer). 2. OFFER/ACCEPTANCE. Buyer offers to purchase and Seller agrees to sell real property legally described as RLS 135 Tract C, with an address of215/225 Lewis Street So., and a Pill #27-149003-0, which property is located in the City of Shakopee, County of Scott, State of Minnesota (the "Property"). 3. CONTINGENCY. Buyer's obligation to purchase the Property is contingentupoIl the following: a. Seller shall at its expense conduct a Phase I environmental investigation, certified to Seller and Buyer, and provide a copy of the Phase I report to Buyer. (i) If, based on the results of the Phase I investigation and report, the environmental consultant does not recommend a Phase II investigation, the contingency under this paragraph shall be deemed satisfied, and the parties shall proceed to closing. (ii) If, based on the results of the Phase I investigation and report, Seller's environmental consultant recommends that.. a Phase IT investigation be conducted, Seller, at its option, may obtain a Phase IT investigation report at Seller's cost. Seller must notify Buyer in writing of its decision within 15 days after Seller receives the Phase I report. If Seller elects not to obtain the Phase IT report, Buyer shall have 10 days thert::after to terminate this Agreement in writing. If Seller elects to obtain the Phase IT investigation report, the Closing Date provided under this Agreement shall be extended for an additional period of 45 days, during which time Seller shall obtain the Phase IT report. (iii) If Seller elects to obtain a Phase IT investigation report as provided at 3.a.(ii) above, Seller shall provide a copy of the report to Buyer. Buyer shall have 10 days after receipt of the Phase II investigation report to determine whether the environmental condition of the Property is satisfactory to Buyer, in the exercise of Buyer's reasonable discretion. If the results of the Phase IT investigation report are not satisfactory to Buyer, Buyer must within the 10-day period notify Seller in writing that Buyer is terminating the Agreement. (iv) The contingency in this paragraph will be deemed waived, and Buyer shall be obligated to proceed to closing, if Buyer does not provide the required notice within the 10-dayperiods provided under 3.a(ii) and/or 3.a(iii) above, as applicable." 4. PRICE AND TERMS. The total purchase price for the Property is Sixty Thousand Dollars ($60,000.00). The sum of Five Thousand Dollars ($5,000.00) earnest money shall be paid by the Buyer to the Seller. Buyer agrees to pay the balance of Fifty Five Thousand Dollars . ($55,000.00) by certified check or electronic transfer of funds on the Closing Date. The Closing Date shall be April 16, 2007 in the offices of the City of Shako pee. 5. DEED AND DECLARATION. Upon performance by Buyer, Seller shall execute and deliver a WarrantyDeed conveying title to the Property to Buyer. 6. REAL ESTATE AND SPECIAL ASSESSMENTS. Seller shall pay on Date of Closing the real estate taxes due and payable in the year of closing. Seller shall pay on Date of Closing all special assessments levied against the Property as of the date of this agreement, including those certified for payment with taxes due and payable in the year of closing. Seller represents that there are no special assessments pending as of the date of this agreement. If a special assessment becomes pending after the date of this agreement and before the Date of Closing, Buyer may, at Buyer's option: A. Assume payment of the pending special assessment without adjustment to the purchase agreement price of the property; or B. Require Seller to pay the pending special assessment and Buyer shall pay a commensurate increase in the purchase price ofthe Property, which increase shall be the same as the estimated amount of the assessment; or C. Declare this agreement null and void by notice to Seller, and earnest money shall be refunded to Buyer. The Buyer is responsible for real estate taxes due and payable in the year following the closing. The Seller represents that the Property had a non-homestead classification for real estate taxes payable in 2007. 7. CONDITION OF PROPERTY. The Property is vacant, undeveloped land. Buyer acknowledges and agrees that the Property is being sold in an "as-is" "where-is" condition and with all faults without warranty or representation of any kind, express or implied, as to the condition, suitability, or desirability of the Property to be used for any purpose, including but not limited to, the construction of any building or structure on the Property. Buyer acknowledges that Seller has not agreed to perform any work on or about the Property prior to Buyer's' purchase of the Property. 8. TITLE MATTERS. Buyer is aware that Seller is not providing a Registered Property Abstract for the Property. Seller makes no representation as to the marketability of title to the Property. 9. WELL DISCLOSURE. The Seller certifies that it does not know of any wells located on the Property. 10. DISCLOSURE; INDIVIDUAL SEW AGE TREATMENT SYSTEM. Seller discloses that there is not an individual sewage treatment system on or serving the Purchase Property. 11. TIME IS OF THE ESSENCE FOR ALL PROVISIONS OF THIS CONTRACT. 12. NOTICES. All notices required herein shall be in writing and delivered personally or mailed to the address shown at paragraph 1 above and, if mailed, are effective as of the date of mailing. 13. CLOSING COSTS. At Closing Buyer shall pay the amount of State Deed Tax payable on the deed conveying the Property to Buyer and the filing fees for the deed and any other costs associated withthe purchase ofthe Property. 14. BROKER COMMISSION. Each party represents to the other that it has not utilized the services of any real estate broker or agent in connection with the Purchase Agreement or the transaction contemplated by this Purchase Agreement. Each party agrees to indemnify, defend, and hold harmless the other party against and in respect of any such obligation and liability based in any way upon agreements, arrangements, or understandings made or claimed to have been made by the party with any third person. 15. ENVIRONMENTAL INVESTIGATION. Buyer and his agents shall have the right to enter upon the Property after the. date of this Purchase Agreement' for the purpose of inspecting and surveying the Property and conducting such environmental examination and tests as Buyer deems necessary. Buyer agrees to indemnify the Seller against any liens, claims, losses, or damage occasioned by. Buyer's exercise of his right to enter and work on the Property. Buyer hereby indemnifies, holds harmless, and agrees to defend the Seller and its respective officers, agents. and employees from any claim of whatever nature occasioned by or arising out of the environmental investigation whether said environmental investigation is completed now or in the future. 16. MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota. In witness of the foregoing, the parties have executed this agreement on the year and date written above. " '" \, SELLER CITY OF SHAKOPEE Dated: By Its Mayor Dated: By Its City Administrator By Its City Clerk BUYER Dated: Dated: