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Home My WebLink About15.A.1. Review Proposals on Property Sale IS. It. I # CITY OF SHAKOPEE Memorandum TO: Mayor & City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director SUBJECT: Review Proposals on Property Sale by Lions Park off of Vierling Drive DATE: May 6, 2003 INTRODUCTION: Attached to this memorandum are the proposals received for the parcels of land north of Vierling Drive improvements, south of the Upper Valley Drainageway and west of Orchard Park West development. The purpose of this agenda item is for City Council to review the bid proposals received on the land and to authorize a sale of the parcel, or not, based on the bids received. BACKGROUND: At the April 1, 2003 City Council meeting, City Council did review alternatives for the parcel of land north of Vierling Drive and south of the Upper Valley Drainageway for a future residential subdivision. At that meeting, City Council did vote by motion to sell this vacant land to potential developers and authorize staff to advertise for the land sale. Attached to this memorandum is the purchase agreement, included with other documents, in regard to the land sale with instructions on making an offer to the City of Shakopee. Staff did open bids on April 28th and received four proposals from three different bidders. Included with this memorandum is a summary of the offers received and the modifications proposed by the purchasers. From the material submitted, the high bid received for this vacant parcel was made by Pat Link Construction, at a bid price of $57,000.00 and includes accepting the assessment of $190,000.00 for Vierling Drive improvements. The second high offer was from Laurent Builders for $16,111.10 plus accepting the assessments of $190,000.00. After the offers were received, it was discovered that the Centerpoint gas easement was not shown on the drawings given to proposed purchasers. Attached to this memo are the drawings showing the parcel for sale and with and without the gas easement shown. Per Jim Thomsen, City Attorney, the City can negotiate with prospective purchasers even after the bids are received. For instance, some of the offers received had contingencies included for the City to consider with the offer. The high offer received by the City was from Pat Link Construction. Staff has met with the proposed purchaser on the gas line easement on the site. After the meeting, the proposed purchaser has requested a reduction of $15,000.00 from his purchase price of $57,000.00 or an offer of $42.000.00 plus $190,000.00 of assessments. Staff has concluded that this offer is acceptable due to the fact that the gas line easement does impact the property for future subdivision. After review of the offers received, staff has concluded that the offer received by Pat Link Construction is the best offer for the City and the sale of the 2.1 acre parcel. Staff would recommend that City Council authorize the appropriate City officials to execute the sale of this parcel. One of the previous recommendations from the PRAB was to use any excess funds generated from the sale in developing Lion's Park. Staff would ask.Council for direction on where these funds should be placed for future utilization. ALTERNATIVES: 1. Approve a motion authorizing the appropriate City officials to execute the purchase agreement for the approximate 2.1 acre parcel of land owned by the City of Shakopee, located north of Vierling Drive improvements, south of the Upper Valley Drainageway and west of Orchard Park West development to Pat Line Construction Company. 2. Offer a motion authorizing the appropriate City officials to execute the purchase agreement to another bidder, as determined by Council. 3. Do not authorize the appropriate City officials to execute the purchase agreement at this time. 4. Provide staff direction on where the excess funds should be placed. 5. Table for additional information. RECOMMENDATION: Staff recommends Alternative No.1, to authorize the appropriate City officials to execute the purchase agreement to Pat Link Construction Company for the sale of the approximate 2.1 acre parcel, north of Vierling Drive and south of the Upper Valley Drainageway. Also, staff would like direction on where the excess funds should be placed for future use. PRAB has recommended any excess funds be utilized in Lion's Park. ACTION REQUESTED: 1. Approve a motion authorizing the appropriate City officials to execute the purchase agreement for the approximate 2.1 acre parcel of land owned by the City of Shakopee located north of Vierling Drive improvements, south of the Upper Valley Drainageway and west of Orchard Park West development to Pat Link Construction Company. 2. Provide staff direction on the excess funds on how these funds are to be utilized. ~H Public Works Director BUpmp SALEOFLAND April 28, 2003: City of Shakopee 2.1 Acre Land Sale Bid Opening Results VIP Sanitary Storm Sewer Watermain Trunk Grading Fee- Engineering Fees- Park Dedication Trunk Fee-Based Fee-Based on Based on Based on Bidder Bid Price Assessment Sewer Trunk Fee. on Net Area of Storm Sewer Construction Construction Constructions Fees-Based on 5 Total Property Comments Based $346.99 per 65825 Sq. Ft. at Ponding Fee Estimate for Estimate for Estimate for Lots at $2660 per Costs Acre $0.083 per Sq. Ft. Development Development Development Lot Laurent Builders Modified purchase agreement Gary Laurent 952- $ 16,111.10 $ 190,000.00 $ 728.68 $ 5,463.48 N/A ? ? ? $ 13,300.00 $ 212,303.25 Added conditions 445-6745 Pat Link Construction Pat Agrees to purchase agreement with Link 952-496 $ 57,000.00 $ 190,000.00 $ 728.68 $ 5,463.48 N/A ? ? ? $ 13,300.00 $ 253,192.15 out modification or conditions 2038 Chestnut Realty Inc. Cal Modified purchase agreement Haskins 952-448 $ 98,000.00 ZERO ZERO ZERO N/A ZERO ? ? ZERO $ 98,000.00 Added conditions. City pays 2417 $190,000.00 assessment Chestnut Realty Inc. Modified purchase agreement. Added more conditions than Cal Haskins 952- $ 105,000.00 ZERO ZERO ZERO N/A ZERO ? ? ZERO $ 105,000.00 $98,000.00 bid. City pays 448-2417 $190,000.00 assessment PURCHASE AGREEMENT 1. PARTIES. This Purchase Agreement is made on , 2003, by mld between the CITY OF SHAKOPEE, a Minnesota municipal corporation, 129 South Holmes Street, Shakopee, Minnesota (City) and (Buyer). 2. OFFER/ACCEPTANCE. Buyer offers to purchase and City agrees to sell real property described as follows, which property is located in the City of Shakopee, County of Scott, State of Minnesota: Approximately 2.1 acre parcel of land zoned RIB owned by the City of Shakopee. The parcel is located off of Vierling Drive and East of County Road 15, Shakopee, Minnesota. 3. PRICE AND TERMS. The price for the real property included in this sale is which Buyer shall pay by certified check in the amount of $1,000 upon submitting this agreement to the City mld the balance on the Date of Closjng, which shall be no later than 45 days after approval of this agreement by the City Council. 4. DEED. Upon performance by Buyer, City shall execute and deliver a Quit Claim Deed conveying title to the Property to Buyer. 5. REAL ESTATE AND SPECIAL ASSESSMENTS. City shall pay on Date of Closing the real estate taxes due and payable in the year of closing. Buyer shall pay on Date of Closing all special assessments levied and pending 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. City represents that there is approximately $190,000 in special assessments pending as of the date of this agreement. If additional 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 City to pay the pending special assessment and Buyer shall pay a commensurate increase in the purchase price of the 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 City, 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 City represents that the Property is exempt from payment of real estate taxes payable in 2003. 6. CONDITION OF PROPERTY. The Property is vacant, undeveloped land. Buyer acknowledges that it has inspected or has had the opportunity to inspect the PropeIiy and agrees to accept the Property "AS IS." City makes no warranties as to the condition of the Property. 7. TITLE MATTERS. Buyer is aware that there is no Abstract of Title for the Property, and City is under' no obligation to provide an Abstract of Title. City makes no representation as to the marketability of title to the Property. 8. WELL DISCLOSURE. The City certifies that it does not know of any wells located on the Property. 9. MISCELLANEOUS. The property is part of a larger parcel of land and therefore needs to be split from the larger parcel prior to the Date of Closing. The City shall be responsible for all costs associated with splitting the Property from the larger parcel. The Buyer acknowledges that the City intends to construct a fire station in the future on the portion ofthe larger parcel that is being retained by the City. 10. OTHER CONDITIONS. [Prospective Buyer should insert any other conditions of purchase here.] 9. TIME IS OF THE ESSENCE FOR ALL PROVISIONS OF THIS CONTRACT. 10. 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. 11. CLOSING COSTS. At Closing City shall pay the mnount of State Deed Tax payable on the deed conveying the Property to Buyer. Buyer shall pay the filing fee for the deed. 12. 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. CITY CITY OF SHAKOPEE Dated: By Its Mayor lIT -230445v 1 2 SH155-23 Dated: By Its City Administrator By Its City Clerk BUYER Dated: JJT-230445vl 3 SH155-23 NOTICE OF SALE OF PUBLIC LAND CITY OF SHAKOPEE Property Approximately 2.1 acre parcel ofland zoned RIB owned by the City of Shakopee. The parcel is located off of Vierling Drive and East of County Road 15, Shakopee, Minnesota. Who May Make an Offer Any individual, Real Estate Agent, or Real Estate Broker, regardless of Race, Color, Religion, Sex, or National Origin. Minimum earnest money is $1,000. Real Estate agents or Brokers presenting offers on behalf of clients must include the real estate commission in the price offered. How to Make an Offer Offers must be submitted on a purchase agreement in the form prescribed by the City. The purchase agreement form can be obtained by contacting Judy Cox, City Clerk, 129 South Holmes Street South, Shakopee, MN, 952-233-3800 or jcox(Q),ci.shakopee.mn.us Information packets outlining utilities, assessments and land descriptions will be available at City Hall, 129 South Holmes Street, Shakopee, MN, 952-233-3800. Pending Assessments The assessments for the Vierling Drive parcel will be $190,000 and the responsibility ofthe buyer. The City reserves the right to reject any and all offers and to accept the offer that is deemed to be in the best interests ofthe City. Offers must state a sum certain as the proposed purchase price. Submission Date All offers must be made in a sealed envelope, marked on the outside "Sealed Land Sale Offer," and submitted no later than 1 :00 p.m. on Monday April 28, 2003 at the office of the City Clerk, 129 South Holmes Street South, Shakopee, MN 55379. Questions Any questions may be addressed to the City of Shakopee representative, Scott Smith, 129 South Holmes Street South, Shakopee MN, 952-233-3800 or ssmith@ci.shakopee.mn.us PROPOSED LEGAL DESCRIPTION OF THE PARCEL TO BE SOLD BY THE CITY OF SHAKOPEE. (North of proposed Vierling Drive, South of drainage easement and West of Orchard Park West plat) That part of the Northwest Quarter of the Southwest Quarter of Section 12, Township 115, Range 23, Scott County, Minnesota, which lies Southeasterly of the 100.00 foot wide permanent drainage easement, shown as Parcel 48, Minnesota Department of Transportation Right of Way Plat No. 70-2, according to said plat on file and of record in the office ofthe County Recorder, Scott County, Minnesota, and also which lies Northerly of a line drawn parallel with and distant 40.00 feet Northerly ofthe following described line: Commencing at the Southwest comer of Lot 1, Block 3, Orchard Park West P.D.D. 3RD Addition, according to said plat on file and of record in the office of the County Recorder, Scott County, Minnesota; thence South 00 degrees 16 minutes 45 seconds West, assumed bearing along the Southerly extension ofthe Westerly line of said Lot 1, 41.89 feet to its intersection with a iine drawn parallel with and distant 40.00 feet Southerly of the Southerly line of said Lot 1, and its Westerly extension thereof, to the point of beginning of said line to be hereinafter described; thence South 73 degrees 38 minutes 33 seconds West 28.23 feet; thence Westerly 459.56 feet, along a tangential curve, concave to the North, having a radius of455.00feet and a central angle of 57 degrees 52 minutes 13 seconds, and said line there terminating. Subject to a permanent easement for sidewalk, utility and drainage purposes over and across the Southerly 5.00 feet ofthe above described tract. Also subject to a permanent easement for utility and drainage purposes over and across the Northerly 10.00 feet ofthe Southerly 15.00 feet of the above described tract. I F\WPWIN\1452-02\SURVEY\PARCEL 3.doc *This, drawing depicts 0 possible 5-Lot Single FamilY Residential Site L9yout for the 2,10 acre / site Tor Sale by the Ci~y of Shakopee, MN. .*Sanifary Sewer anQ/Watermain., will be stubbed/ the plot line of the P9rcel for sole, howey'er, ot be installed as/depicted. *This . pOS$.ibLe parcel for..sale. It is not intended ~Jfuction/grading m plan. -.,,0,,' -".... LOT. 4 LOT 1 .. LOT 5 J~ ,...... ......, J " SH.<KOPEE! :.;.:", --r _.~.f; .... ~ DArE: APRIL 2003 SCALE \" = 100' SHEET NO PARCEL FOR SALE DRAWN BY: RTH 0 50 100 1 OF 1 SHAKOlP'lEE POSSIBLE SITE LAYOUT r"'\..r~ I ca.NUNrlYPRa:SIloa:U157 SHAKOPEE ENGINEERING DEPARTMENT I I I PROPOSED 5' PERMANENT UTILITY DRAINAGE AND SIDEWALK EASEMENT AREA = 1875 sq. ft. 84 (,,; .- 0 100 PROPOSED 10' UTILITY DRAINAGE ~-~ EASEMENT AREA = 3750 sq. ft. k i:/) .. \ -P'IN ", Js~' if 1 inch - 100 ft. AREA = 91,375 sq ft 1, /' E'L Y R/W LINE MNDOT 2.10 ac [~: {~i ::i R/W PLAT NO. 70-2 l"J :1 [~~( ~~ 100' UPPER VALLEY DRAINAGE DITCH fi~ ~f} EASEMENT lI.=5"05'ST" .,,~ VIERL1NG DRlV PROPOSED VIERLING DRIVE 2 (l~ [:~. 447.18 ~~): ;,:: 587' . 2~ NB6'57'47"w , , 40' G G ~ GASS GAS ------------- GAS ------------- ( GAS ------------- GAS . PID:179120s00 _____________ Properq" Dlll. GA legal Dcse: SrCT.12 IWP-lIS RNG-023 !'oWl ~ SWI4 S _____________ lYP.\GX& EOf ROW O..ner GAS ~i~lc~s;~i~~~ A HAASKEN _____________ CHASKA, M:'\ jj31fl AS _____________ SW COR LOT 1. BLOCK3 ZOl1ing:RlB ORCHARD PARK WEST SOUTH LINE OF THE NW 1/4 GAS P.U.D. 3RD ADDITION OF THE SW 1/4 S 12, T 115, R 23 ------------- S_____________ CENTERLINE OF PROPOSED 8 GAS STREET, UTILITY AND DRAINAGE ------------- EASEMENT GAS' Proposed Parcel to WS8 Project No. 1452-02 Date 1 24 OJ ... 4150 Olson Memorial Highway R_ Date 4 9 OJ Suite 300 be sold by the City WSB Minneapolis, MN 55422 - 7&$-54',-4800 of Shakopee. Parcel 3 ~_1atea,1ne. FAX 763.s41.,700 .1~I:lI:I'~"1I:jll"IIJ:I~:I~ltllll:I:I'j,.__:.i'.m~I::iI:..... Ill!Ail'lNG, w\OHS2-02\Su""Y\j><'''''<9 lIIYO\JT:?,'<OIl "....... C:ofy PURCHASE AGREEMENT 1- PARTIES. This Purchase Agreement is made on '7'- :J-. !-s;' , 2003, by and between the CITY OF SHAKOPEE, a M~esota municipal corporation, 129 South Holmes Street, Shakopee, Minnesota (City) and l1:.7(0 A t?:.l~ (!~l;~ Ct'. (Buyer). 2. OFFER/ACCEPTANCE. Buyer offers to purchase and City agrees to sell real property described as follows, which property is located in the City of Shakopee, County of Hennepin, State of Minnesota: Approximately 2.1 acre parcel ofland zoned RIB owned by the City of Shakopee. The parcel is located off of Vierling Drive and East of County Road 15, Shakopee, PL. Minnesota. L(Zpoc> 3. PRICE AND TERMS. The price for the real property included in this sale is $ S?: /") r, 0 ,,(fie; [amount to be inserted by prospective buyer] which Buyer shall pay by certified 'c!J:~~!f.in the amount of $1 ,000 upon submitting this agreement to the City and the balance _""0" _"'.,,", ..... ,-", on'illeDate'of Closing, which shall be no later than 45 days after approval of this agreement by the City Council. 4. DEED. Upon performance by Buyer, City shall execute and deliver a Quit Claim Deed conveying title to the Property to Buyer. 5. REAL EST ATE AND SPECIAL ASSESSMENTS. City shall pay on Date of Closing the real estate taxes due and payable in the year of closing. Buyer shall pay on Date of Closing all special assessments levied and pending 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. City represents that there is $190,000 in special assessments pending as of the date of this agreement. If additional 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 speci3.1 assessment without adjustment to the purchase agreement price of the property; or B. Require City to pay the pending special assessment and Buyer shall pay a commensurate increase in the purchase price of the Property, which increase shall be the same as the estimated amount ofthe assessment; or C. Declare this agreement null and void by notice to City, 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 City represents that the Property is exempt from payment of real estate taxes payable in 2003. 6. CONDITION OF PROPERTY. The Property is vacant, undeveloped land. Buyer acknowledges that it has inspected or has had the opportunity to inspect the Property and agrees to accept the Property "AS IS." City makes no warranties as to the condition of the Property. ,. ~ ''-.'' ~ Ar/ 7. TITLE MATTERS. Buyer is aware that there is no Abstract of Title for the Property, and City is under no obligation to provide an Abstract of Title. City makes no representation as to the marketability of title to the Property. 8. WELL DISCLOSURE. The City certifies that it does not know of any wells located on the Property. 9. MISCELLANEOUS. The property is part of a larger parcel of land and therefore needs to be split from the larger parcel prior to the Date of Closing. The City shall be responsible for all costs associated with splitting the Property from the larger parcel. The Buyer acknowledges that the City intends to construct a fire station in the future on the portion of the larger parcel that is being retained by the City. 10. OTHER CONDITIONS. [Prospective Buyer should insert any other conditions of purchase here.] 9. TIME IS OF THE ESSENCE FOR ALL PROVISIONS OF THIS CONTRACT. 10. 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. II. CLOSING COSTS. At Closing City shall pay the amount of State Deed Tax payable on the deed conveying the Property to Buyer. Buyer shall pay the filing fee for the deed. 12. 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. CITY CITY OF SHAKOPEE Dated: By Its Mayor JJT -230445v \ 2 SH155-23 Dated: By Its City Administrator By Its City Clerk BUYER ......,-" , /4 - 'J- -? ''--r;l / .y y ...:' :5 ' .I Dated: ... .. ,.,.,," / .,t.. ".,.' ;'~ f'.'" l ,:, A.-e re-- """''''",,''r'/;'~ ~",. , JJT-230445vl .., SH \55-23 .) , . . NOTICE OF SALE OF PUBLIC LAND CITY OF SHAKOPEE Property Approximately 2.1 acre parcel ofland zoned RIB owned by the City of Shakopee. The parcel is located off of Vierling Drive and East of County Road 15, Shakopee, Minnesota. Who May Make an Offer Any individual, Real Estate Agent, or Real Estate Broker, regardless of Race, Color, Religion, Sex, or National Origin. Minimum earnest money is $1,000. Real Estate agents or Brokers presenting offers on behalf of clients must include the real estate commission in the price offered. How to Make an Offer Offers must be submitted on a purchase agreement in the form prescribed by the City. The purchase agreement form can be obtained by contacting Judy Cox, City Clerk, 129 South Holmes Street South, Shakopee, MN, 952-233-3800 or jcox(a),ci.shakopee.mn.us Information packets outlining utilities, assessments and land descriptions will be available at City Hall, 129 South Holmes Street, Shakopee, MN, 952-233-3800. Pending Assessments The assessments for the Vierling Drive parcel will be $190,000 and the responsibility of the buyer. The City reserves the right to reject any and all offers and to accept the offer that is deemed to be in the best interests of the City. Offers must state a sum certain as the proposed purchase price. Submission Date All offers must be made in a sealed envelope, marked on the outside "Sealed Land Sale Offer," and submitted no later than 1 :00 p.m. on Monday April 28, 2003 at the office of the City Clerk, 129 South Holmes Street South, Shakopee, MN 55379. Questions Any questions may be addressed to the City of Shakopee representative, Scott Smith, 129 South Holmes Street South, Shakopee MN, 952-233-3800 or ssmi th@ci.shakopee.mn.us ---.,.-. -- ---......-- .~-_.__... - - ~ .--..-. 1 1. ..' ~' ~ ~l 1" ." PROPOSED 5' PERMANENT UTILITY DRAINAGE AND SIDEWALK ~ \ ~~ EASEMENT AREA = 1875 sq. n. 0. B"I .. t '.' 0 \ 100 PROPOSED 10' UTILITY DRAINAGE :-: ;..' ~ _ ~ EASEMENT AREA = :3750 sq. n. I:. g IpI! - ': . ~ \ 1 lu: ~ Il ., }( l:': .....- E'L Y R/W LINE t.lNDDT . : 'i / R!W PLAT NO. 70-2 ;.': :;: L"! ... .::~ :~~ I lOa' UPPER VALLEY ,~: ::' .~ '\\ \ DRAINAGE DITCH ,; ::: :;"? ."'''.00 EASEMENT ::: ;:: 6~-;~~~ ~ rIll: "'IIOJllJ : ~:' . PROPOSED VIERLING DRIVE ;,';'=;;'''''' .; ;:: ;:; \.11\ \01 ...11 \t.l1l'1 1 " " ~ H1.ItJ (11\" .\I'~UI'lI'Itt..,1(11t ;:: .~. H86-Sr..rw 1~~1I11l"r!-!'-I' .:. .~. ~1I,\"'orll.).I.,"H.I~" '_~ ::' ," rro..'40,'lIIU 40' sq fl oc ....:.~;;;.-- ______.. I.,.) S ---------._______________ \ -... ~"__ . 0-;'1',' ------,- -- '.\ -. ....... tln; )l.HIl?;" ---... ~-...__ . \ ......'stn! 110,. ----...-... , l I lrl'~lnu";"t(f'I!1\\'r'1".IlJ'JG.n~.1~\\'I..!o\q.. -........___ I... s___ LYI:<G';.d':UrIlOI\" ---- nOOIlU ______....... --- G....J..:.,. . 4Q' '\ ~i\~\,~:";i~.~~.\Il.c""." "...... -..-- <l1.'''.'.'''.Ill'' _. SW COR LOT 1. 8LOCI<3 i Z.mil\J::lllIl ORCHARD PARI'~ Vir. ~~.! SOUTH 1l.NE Of THE NW 1/4 0.:":'_. P.U.D. 3RD ADDITION I OF THE SW 1/4 S 12. T 115, -.. I -, . I CENTERLINE OF PROPOSED 8 ~. '0.';; '.. I STREET, UTiLITY AND DRAINAGE . I EASEMENT ,;,1... ..... """"~""''''';''''~''''r Proposed Parcel to WSB -",.,...;:.~~..~ be sold by the City .h-""._ ".;:;::;~:::: of Shokopee. Parcel 3 .1~IJ;H,"I'lII"'WI_ _':lI:.,mrll.ll'"'''' _:l1-1.1II:t;.::. t"C"-: .'~'''~.Ith........-......... ...~..... _.., . , ~