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HomeMy WebLinkAbout13.F.3. Bids for Land Sale north of the Library CITY OF SHAKOPEE /3.F,3, Memorandum TO: Mayor and Council Mark McNeill, City Administrator FROM: Gregg Voxland, Finance Director SUBJ: Bids for land sale north of the Library DATE: March 15, 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 defer action, and 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. Alternatives A. Reject all bids. B. 1. Rebid the property as being for sale. 2. Offer a lease to the adjacent property owner. 3. Officially designate the site for public parking although it appears to be really only serving the adjacent property. 4. Landscape the area to enhance downtown and the library site. 5. Block off the site so it can not be used for private purposes/gain. 6. Status quo - the parcel is being used by the adjacent property owner and therefore should be taxed unless Council designates it as public parking. Recommendation Alternative "A" and give staff direction on "B" alternatives. Action Move to reject all bids for the sale of the triangle parcel north of the library. Discuss and give staff direction on "B" alternatives. Gr~OXland Finance Director H,\Finance\docs\ ,. f RQ0~b~ \3.F.'3, CITY OF SHAKOPEE Memorandum TO: Mayor and Council Mark McNeill, City Administrator FROM: Gregg Voxland, Finance Director SUBJ: Bids for land sale north of the Library DATE: March 20, 2007 Introductiori& Background The high bidder has not executed the purchase agreement for $60,000 with a $5,000 deposit as of this writing. In anticipation of all bids being rejected, staff has discussed an offer with Dr McGraw who has stated he is still interested in purchasing the property subject to soils investigation and the site being "buildable". A revised purchase agreement constituting his offer to purchase for $17,700 is attached and the earnest money check was received. The cost for the City to due a Phase one investigation is $1,800 and a geo-technical soils test is about $3,000. Dr. McGraw has included the City doing these tests are part of his offer. Also included is a Phase II environmental test if recommended as a result of Phase I that would be another $5,000 to $10,000 if the City decides to pursue the sale at that point. Although not reflected in the purchase agreement as presented, Dr. McGraw stated that he would pay for the Phase II if he wanted to go ahead with it. Action Requested Move to reject all bids ~o.r lhe sale of the triangle pa~cel north of the library. Discuss and give staff direction on the purchase agreement received from Dr. McGraw. )JJ Gregg Voxland Finance Director H, \Finance\docs\ " '\ PURCHASE AGREEMENT 1. PARTIES. This Purchase Agreement is made on March 20, 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 of 215/225 Lewis Street So., and a PID #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 contingent upon the following: a. Seller shall at its expense- conduct a Phase I environmental investigation and a geo- technical investigation certified to Seller and Buyer, and provide a copy of the 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 II investigation be conducted, Seller, at its option, may obtain a Phase II 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 II report, Buyer shall have 10 days thereafter to terminate this Agreement in writing. If Seller elects to obtain the Phase II 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 II report. (iii) Buyer. Buyer shall have 10 days after receipt of the investigation report to . determine whether the environmental condition and the soils condition of the Property is satisfactory to Buyer, in the exercise of Buyer's reasonable discretion. If the results of the 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-day periods provided under 3.a(ii and iii) above. 4. Seller warrants that the subject parcel is in the Central Business Zone (B-3); that the B-3 Zone allows dwellings when combined with another permitted uSe in the Zone; that the B-3 Zone is exempt from off-street parking requirements; and that the B-3 Zone does not have any front, side, or rear yard setback requirements. Seller further warrants that the subject lot meets both the minimum lot area and minimum lot width requirements of the B-3 Zone and is subject " " to a forty-five (45) foot building height limitation. Suitability of a specific building design for the site is subject to review under all applicable city, building and fire codes., 4. Seller warrants that that, subject to applicable city and building codes, the parcel is suitable for construction of a one or two story commercial building with commercial or residential use on the second floor. There are no setback or off street parking requirements. 5. PRICE AND TERMS. The total purchase price for the Property is Seventeen Thousand Seven Hundred Dollars ($17,700.00). 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 Twelve Thousand Seven Hundred Dollars ($12,700.00) by certified check or electronic transfer of funds on .. .. .... . the Closing Date. The Closing Date shall be April 30, 2007 in the offices of the City of Shako pee. 6. DEED AND DECLARATION. Upon performance by Buyer, Seller shall execute and deliver aWarranty Deed conveying title to the Property Jo Buyer. 7. 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, atBuyer'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 v~id 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. 8. 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. 9. 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. ", \. 10. WELL DISCLOSURE. The Seller certifies that it does not know of any wells located on the Property. 11. DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM. Seller discloses that there is not an individual sewage treatment system on or serving the Purchase Property. 12. TIME IS OF THE ESSENCE FOR ALL PROVISIONS OF THIS CONTRACT. 13. 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. 14. 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 with the purchase of the Property. 15. 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. 16. 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 ent~L~dwork 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. 17. 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 Dated: . 31 9-01~7 BrrER ,~j ,..- .... Dated: ~, ""