HomeMy WebLinkAbout15.C.2. Purchase Agreement with SPUC for Wells and Easements on 17th Ave Sports Complex Property-Res. No. 6152
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CITY OF SHAKOPEE
MEMORANDUM
CONSr'NT
To: Mayor and City Council ' . ,. .'1:\
Mark McNeill, City Administrator
From: Mark Themig, Parks, Recreation, and Facilities Director
Meeting Date: November 16, 2004
Subject: Purchase Agreement for SPUC Wells and Easements on 1 ih Avenue
Sports Complex Property
BACKGROUND AND DISCUSSION
Earlier this year, City Council authorized the sale of property and easements to
Shakogee Public Utilities Commission for the installation and operation of water wells on
the 17 Avenue Sports Complex property.
SPUC, city staff, and respective attorneys have worked out the final details of the
purchase agreement and easements that were outlined in the staff report dated April 20,
2004 (attached).
Council is asked to approve the final purchase agreement and authorize the conveyance
of feet title and easements to the Shakopee Public Utilities Commission.
ACTION REQUESTED
Move to approve the purchase agreement and accept Resolution No. 6152, A
Resolution of the City of Shakopee Authorizing Conveyance of Fee Title and Easements
to the Shakopee Public Utilities Commission.
~~~~
Mark Themig . .
Parks, Recreation, and Facilities Director
CITY OF SHAKOPEE
MEMORANDUM
To: Mayor and City Council
Mark McNeill, City Administrator
From: Mark Themig, Facilities and Recreation Director
Date: April 20, 2004
Subject: Purchase and Easement Agreement for Property on Soccer Facility
for Well Fields
INTRODUCTION
City Council is asked to approve a purchase and easement agreement for the well field
that is being constructed at the soccer/athletic facility along 1 ih Avenue.
BACKGROUND
In 2003, City Council approved construction plans that located two water wells for
Shakopee Public Utilities on the soccer/athletic facility site. Council then approved
amended plans that located an additional two wells on the site. Each pair of wells will
contain a pump house and a submersible well. An additional well and primary treatment
building will be located on the Sun Path school site adjacent to 17th Avenue.
As part of this decision, it was agreed in concept that Shako pee Public Utilities
Commission would purchase land for the pump houses on both the School District and
City property, and that they would acquire easements for the submersible wells and
water mains. Public Utilities has completed their transactions with the School District.
Other partners with the City in this project include the Shakopee School District
(improvements to their property and cost sharing for the irrigation well), and Shakopee
Area Catholic Education Center (shared roadway, parking, and irrigation costs).
DISCUSSION
Shakopee Public Utilities completed an appraisal of the park property in early 2003.
However, with the need to locate two additional wells and water mains on the property,
they had to update their appraisal. The City received a copy of the revised appraisal in
October of 2003. We have been working with Public Utilities staff since that time to
develop and refine the attached purchase and easement. agreement to accurately reflect
the complexity of this transaction.
The October 2003 appraisal identified the value of the soccer/athletic facility land as
$88,500/acre. This appraisal was based on eight comparable land sales that occurred
between 2001 and 2003, with a 5-10% adjustment to the comparable land sales to
compensate for inflationary trends. It should be noted that this appraisal value is for "raw
land", not the potential value should the land be developed into housing lots.
The purchase agreement is for .628 acres of land that Shakopee Public Utilities would
own for their pump houses No. 16 and No. 18. The easement agreement identifies
another 1.401 acres that will be impacted by water mains. The easement agreement
specifies the following:
. Public Utilities easement from the City for wells No. 17 and No. 19.
. Public Utilities easement from the City for water main throughout the site.
. City easements from Public Utilities for trails through the property they would own for
wells No. 16 and No. 18.
. City easement from Public Utilities for use of a portion of the property they would
own for well No. 18 for the soccer field.
. Maintenance responsibilities.
. Payment from Public Utilities for the engineering and construction costs for
installation of the water mains and trail upgrades as part of the soccer/athletic facility
construction project ($173,205.47).
The total purchase price for the land and compensation for easements is $126,000.
RECOMMENDATION
I believe that the purchase price for the land and compensation for the easements is fair
compensation, and Council should approve the purchase and easement agreements.
Revenue for the construction costs should be deposited in Park Reserve Fund to
reimburse the fund for these expenditures. I believe that proceeds from the sale of the
land should also be deposited into the park reserve fund to help offset the total project
costs.
REQUESTED ACTION
If City Council concurs, move to approve the purchase and easement agreement for
soccer/athletic complex, and direct that the revenue from this transaction be deposited
into the Park Reserve Fund.
RESOLUTION NO. <6\S~
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A Resolution of the City of Shakopee Authorizing The
Conveyance of Fee Title and Easements to the. Shakopee
Public Utilities Commission
WHEREAS, City of Shakopee, a Minnesota municipal corporation ("City") owns certain
real property situated in the City of Shakopee, Scott County, Minnesota, more particularly
described in the attached Rxhihit A ("City Property"); and
WHEREAS, the Shakopee Public Utility Commission, a municipal utility commission
organized under Minnesota law ("SPUC") desires to acquire fee title to. portions of the City
Property, more particularly described in the attached Rxhihit R ("Purchase Property"), as well as
certain easements over other portions of the City Property, as described in the attached Rxhihit C;
and
WHEREAS, SPUC has presented a proposed Purchase Agreement to the City containing
the terms and conditions of the proposed land transaction.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF SHAKOPEE AS
FOLLOWS:
1. That the Mayor and City Clerk are authorized and directed to execute and deliver
to the Shakopee Public Utilities Commission the Purchase Agreement as
submitted.to the City Council at its November 16,2004 regular meeting.
2. That the Mayor and City Clerk are authorized and directed to execute and deliver
to the Shakopee Public Utilities Commission such instruments and other
documents as may be necessary to effectuate the transfers contemplated by the
Purchase Agreement, including but not limited to a Quit Claim Deed conveying
the Purchase Property as described in Exhibit B to this resolution and an
Easement Agreement conveying easements as described in Exhibit C to this
resolution.
Adopted this _ day of ,2004.
Mayor
ATTEST:
City Clerk
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EXHIBIT A
Legal Description of City Property
Outlot A, PHEASANT RUN FIRST ADDITION;
And
Outlot A, PHEASANT RUN EIGHTH ADDITION
And
The Southwest Quarter of the Northwest Quarter of the Northeast Quarter of Section 17,
Township 115 North, Range 22 West of the Fifth Principal Meridian.
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EXHIBIT B
Legal Description of Purchase Property
That part of Outlot A, PHEASANT RUN FIRST ADDITION, according to the recorded plat
thereof, described as follows:
Beginning at the northwest comer of said Outlot A; thence on an assumed bearing of
South 04 degrees 44 minutes 52 seconds West, along the westerly line of said Outlot
A, a distance of 100.00 feet; thence South 85 degrees 15 minutes 08 seconds East a
distance of 105.00 feet; thence North 04 degrees 44 minutes 52 seconds East, to the
north line of said Outlot A; thence South 89 degrees 58 minutes 37 seconds West,
along said north line to the point of beginning
And
The East 148.79 feet of the South 110.00 feet of the North 203.19 feet of Outlot A, PHEASANT
RUN EIGHTH ADDITION, according to the recorded plat thereof.
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Exhibit C
Legal Description of Well Easements
Well No 17
A perpetual easement for well purposes over, under and across that part of Outlot A,
PHEASANT RUN FIRST ADDITION, according to the recorded plat thereof described as
follows:
Commencing at the northwest comer of said Outlot A; thence on an assumed bearing
of South 04 degrees 44 minutes 52 seconds West, along the westerly line of said
Outlot A, a distance of 361.75 feet, to the point of beginning of the land to be
described; thence South 85 degrees 15 minutes 08 seconds East a distance of 105.00
feet; thence South 04 degrees 44 minutes 52 seconds West, to a southerly line of said
Outlot A; thence westerly, along said southerly line, to the southwest comer of said
Outlot A; thence North 04 degrees 44 minutes 52 seconds East, along the westerly
line of said Outlot A, a distance of 90.00 feet, to the point of beginning.
And
Well No 19
A perpetual easement for well purposes over, under and across the East 111.45 feet of the South
110.00 feet of the North 548.86 feet of Outlot A, PHEASANT RUN EIGHTH ADDITION,
according to the recorded plat thereof.
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Legal Description of Water Main Easements
1. A 20.00 foot perpetual easement for watermain purposes over, under and across the
following described property:
Outlot A. PHEASANT RUN FIRST ADDITION, according to the recorded plat
thereof.
The center line of said easement is described as follows:
Commencing at the northwest comer of said Outlot A; thence on an assumed bearing
of South 04 degrees 44 minutes 52 seconds West, along the westerly line of said
Outlot A, a distance of 100.00 feet; thence South 85 degrees 15 minutes 08 seconds
East a distance of 60.00 feet, to a point hereinafter referred to as "Point A"; thence
North 85 degrees 15 minutes 08 seconds, a distance of 60.00 feet, to said westerly
line; thence South 04 degrees 44 minutes 52 seconds West, along said westerly line, a
distance of 261.75 feet; thence South 85 degrees 15 minutes 08 seconds East a
distance of 50.00 feet, to the point of beginning of the center line to be described;
thence northerly to said "Point A" and said center line there terminating.
2. A perpetual easement for watermain purposes over, under and across the South 15 feet of
the West 566.58 feet of the following described property:
The Southwest Quarter of the Northwest Quarter of the Northeast Quarter of Section 17,
Township 115 North, Range 22 West of the Fifth Principal Meridian.
3. A perpetual easement for watermain purposes over, under and across the North 5.00 feet
of the West 566.58 feet of Outlot A, PHEASANT RUN EIGHTH ADDITION, according to the
recorded plat thereof.
4. A perpetual easement for watermain purposes over, under and across the West 20.00 feet
ofthe East 109.32 feet of the North 93.19 feet of Outlot A, PHEASANT RUN EIGHTH
ADDITION, according to the recorded plat thereof.
5. A perpetual easement for watermain purposes over, under and across the West 20.00 feet
ofthe East 68.09 feet of the South 235.67 feet of the North 438.86 feet of Outlot A, PHEASANT
RUN EIGHTH ADDITION, according to the recorded plat thereof.
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Legal Description of Defined Access Easements
A perpetual easement for access purposes over, under and across the North 10.00 feet of the
West 110.00 feet of the East 635 feet of Outlot A, PHEASANT RUN FIRST ADDITION,
according to the recorded plat thereof.
A perpetual easement for access purposes over, under and across that part of Outlot A,
PHEASANT RUN FIRST ADDITION, lying 10.00 feet on each side of the following described
center line:
Commencing at the northwest comer of said Outlot A; thence on an assumed bearing of
South 4 degrees 44 minutes 52 seconds West, along the westerly line of said Outlot A, a
distance of 100.00 feet; thence South 85 degrees 15 minutes 08 seconds East a distance of
79.86 feet, to the point of beginning of the center line to be described; thence South 7
degrees 30 minutes 05 seconds West a distance of 299.95 feet; thence southerly and
southeasterly a distance of 72.60 feet, along a tangential curve concave to the northeast
having a radius of 50.00 feet and a central angle of 83 degrees 11 minutes 25 seconds;
thence South 75 degrees 41 minutes 17 seconds East, tangent to said curve, a distance of
58.00 feet and said center line there terminating.
A perpetual easement for access purposes over, under and across that part of Outlot A,
PHEASANT RUN EIGHTH ADDITION, lying 10.00 feet on each side of the following
described center line:
Commencing at the northeast comer of said Outlot A; thence on an assumed bearing of
North 89 degrees 59 minutes 57 seconds West, along the north line of said Outlot A, a
distance of 45.08 feet, to the point of beginning of the center line to be described; thence
South 0 degrees 23 minutes 29 seconds West a distance of 115.11 feet; thence southerly a
distance of 15.72 feet, along a tangential curve concave to the east having a radius of
128.67 feet and a central angle of 7 degrees 00 minutes 01 seconds; thence South 6
degrees 36 minutes 32 seconds East, tangent to said curve, a distance of 31 0.13 feet to the
south line of the North 438.86 feet of said Outlot A and said center line there terminating.
The side lines of said easement shall be shortened or prolonged to terminate in the north
line of said Outlot A and the south line of the North 438.86 feet of said Outlot A.
PERPETTJAL GENERAL A(Y~ESS EASEMf,NTS.
City hereby grants and conveys to SPUC a perpetual right of ingress and egress over driveways,
trails and parking areas on the City Property, as those areas may exist from time to time, as
necessary to access the Water Main Easements and Well No. 16, Well No. 17, Well No. 18 and
Well No. 19. City also grants to SPUC reasonable ingress and egress over the City Property
lying between the City's driveways, trails and parking areas and Well No. 16, Well No. 17, Well
No. 18 and Well No. 19. The access easements granted in this paragraph are referred to as the
"General Access Easements."
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PURCHASE AGREEMENT
1. PARTIES. This Purchase Agreement is made this _ day of , 2004 by
and between CITY OF SHAKO PEE, a Minnesota municipal corporation ("Seller") and
SHAKOPEE PUBLIC UTILITIES COMMISSION, a municipal utility commission organized
under Minnesota law ("Buyer").
2. CITY PROPERTY; PURCHASE PROPERTY AND EASEMENTS. Seller is the
owner of that certain real estate (the "Property") located in Shakopee, Scott County, Minnesota
and legally described as follows:
Outlot A, PHEASANT RUN FIRST ADDITION;
And
Outlot A, PHEASANT RUN EIGHTH ADDITION
And
The Southwest Quarter of the Northwest Quarter of the Northeast Quarter of Section 17,
Township 115 North, Range 22 West ofthe Fifth Principal Meridian.
Buyer desires to purchase fee title to a portion of the City Property (the "Purchase Property") as
described in the attached Exhibit A. Buyer also desires to acquire permanent well, watermain,
watermain and access, and access easements over portions of the City Property (the "Buyer
Easements"), as further described in the attached Exhibit B. In addition, Buyer will convey to
Seller certain easements over the Purchase Property for trail facilities that Seller desires to
operate ("Seller Easements").
3. OFFER/ACCEPTANCE. In consideration of the mutual agreements herein contained,
Buyer offers and agrees to purchase and Seller agrees to sell and hereby grants to Buyer the
exclusive right to purchase the Purchase Property and Buyer Easements. Buyer agrees to grant
and convey to Seller the Seller Easements in conjunction with the closing on the Purchase
Property.
4. CONTINGENCIES. Buyer's obligation to buy is contingent upon the following:
A. Buyer's review of title as provided at paragraph 7 of this Purchase Agreement.
B. Buyer's obtaining all required subdivision approvals. Buyer shall have until the
date of closing to remove the foregoing contingency. This contingency may not
be waived by either party.
If a contingency is satisfied in a timely manner or waived, then the Buyer and Seller shall
proceed to close the transaction as contemplated herein. If, however, a contingency is not
satisfied or waived, or is not satisfied on time, this Purchase Agreement shall thereupon be void,
Seller shall return the Earnest Money to Buyer, and Buyer and Seller shall execute and deliver to
each other the termination of this purchase agreement. As a contingent purchase agreement, the
termination of this Purchase Agreement is not required pursuant to Minnesota Statutes, Section
559.21, et seq.
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5. PURCHASE PRICE AND TERMS:
A. PURCHASE PRICE: The total Purchase Price for the Property and Buyer
Easements is One Hundred Twenty-Six Thousand Dollars ($126,000.00).
B. TERMS:
(1) EARNEST MONEY. No Earnest Money is due or payable.
(2) BALANCE DUE SELLERS. Buyer agrees to pay by check on the Closing
Date any remaining Balance Due according to the. terms of this Purchase
Agreement.
(3) DEEDIMARKETABLE TITLE. Subject to performance by Buyer, Seller
agrees to execute and deliver a Quit Claim Deed conveying title to the
Purchase Property to Buyer.
(4) DOCUMENTS TO BE DELIVERED AT CLOSING. In addition to the
Quit Claim Deed required at paragraph 5B(3) above, Seller shall deliver to
Buyer;
a. Standard form Affidavit of Seller.
b. Easement Agreement in substantially the same form as the attached
Exhibit B.
c. Such other documents as may be reasonably required by Buyer's
title examiner or title insurance company.
6. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS.
A. The Purchase Property is part of a larger parcel, tax parcel no. 27-263062-0,
which is exempt from real estate taxes.
B. Seller shall pay at or prior to closing the unpaid balance of all special assessments
pending or levied against the Purchase Property.
C. Buyer shall assume all special assessments against the Purchase Property that
become pending after the date of this Purchase Agreement. For purposes of this
agreement, an assessment becomes pending when the assessing authority orders
the project after the completion of an improvement hearing pursuant to Minn.
Stat. Ch.429.
7. MARKETABILITY OF TITLE. The Buyer, at its sole cost, shall be responsible for
obtaining a commitment for an owner's policy of title insurance covering the Purchase Property.
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Seller, within a reasonable time after acceptance of this agreement, shall furnish Buyer with any
abstract of title in Seller's possession for the City Property, for Buyer's use in obtaining the title
commitment. Buyer shall have ten (10) business days after receipt of the title commitment to
examine the same and to deliver written objections to title, if any, to Seller. Buyer agrees to
accept title subject to: (1) building and zoning laws, ordinances, state and federal regulations; (2)
reservation of minerals or mineral rights to the State of Minnesota, if any; and (3) easements and
restrictions of record that do not interfere with Buyer's intended use of the Purchase Property. At its
option, Seller shall have twenty (20) days after receipt of written objections to cure title defects,
at the Seller's cost. In the event that Seller elects not to cure the title defects or title to the
Purchase Property cannot be made marketable by the Seller by the Closing Date, then, at the
option of the Buyer, this Purchase Agreement shall be null and void and the Earnest Money shall
be refunded to the Buyer. The Abstract shall be returnedto Seller at or before Closing. Nothing
in this agreement shall obligate the Seller to exercise its powers of eminent domain in order to
clear title objections.
8. CLOSING DATE. The closing of the sale of the Purchase Property, Buyer Easements
and Seller Easements shall take place on a date to be mutually agreed upon by the Seller and
Buyer, but no later than December 31,2004. The closing shall take place at the offices of Buyer,
255 Sarazin Street, Shakopee, MN 55379, or such other location as mutually agreed upon by the
parties.
9. CLOSING COSTS AND RELATED ITEMS. The Seller will be responsible for
payment of the recording fees of instruments required to establish marketable title in Seller prior
to the recording of the Quit Claim Deed to Buyer. Unless otherwise provided herein, the Buyer
shall be responsible for the payment of all closing costs and. fees, including but not limited to
state deed tax, conservation fees, title insurance, etc., except that each party shall be responsible
for its own attorneys fees and costs.
10. SUBDIVISION. The Purchase Property is part of a larger parcel, and the conveyance
contemplated by this Agreement will require approval of the City of Shakopee as the local
subdivision authority. The Buyer agrees to pay all of the costs associated with obtaining the
necessary government approvals.
11. POSSESSION/CONDITION OF PROPERTY. The Seller shall deliver possession of
the Purchase Property and Buyer Easements to Buyer on the Closing Date, in the same condition
as the Purchase Property and Buyer Easements existed on the date of this Purchase Agreement.
12. DAMAGES TO REAL PROPERTY. If the Purchase Property or Buyer Easements are
damaged prior to closing, Buyer may rescind this Purchase Agreement by notice to Seller within
twenty-one (21) days after Seller notifies Buyer of such damage, during which 21-day period
Buyer may inspect the real property, and in the event of such rescission, the Earnest Money shall
be refunded to Buyer.
13. DISCLOSURE; INDIVIDUAL SEW AGE TREATMENT SYSTEM. Seller discloses
that there is not an individual sewage treatment system on or serving the Purchase Property.
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14. CONDITION OF SUBSOIL AND GROUND WATER. Seller hereby warrants to
Buyer that during the time the Seller has owned the City Property there have been no acts or
occurrences upon the City Property that have caused or could cause impurities in the subsoil or
ground water of the Purchase Property or other adjacent properties. This warranty shall survive
the closing of this transaction.
15. WELL DISCLOSURE. Seller certifies that the Seller does not know of any wells on
the Purchase Property.
16. SELLER'S WARRANTIES Seller warrants that it will pay for all labor and materials
furnished to the Purchase Property relating to work performed on the Purchase Property prior to
the date of closing. Seller warrants that there are no present violations of any restrictions relating
to the use or improvement of the Purchase Property. These warranties shall survive the closing
of this transaction.
17. NO RELOCATION BENEFITS. Seller acknowledges that the Purchase Property. is
vacant and unoccupied, and that the acquisition contemplated by this transaction will not cause
Seller to be displaced. The Seller acknowledges that it is not entitled to relocation benefits
pursuant to Minnesota Statutes, Section 117.052.e1 seq.
18. BROKER COMMISSIONS. The Seller and Buyer represent and warrant to each other
that there is no broker involved in this transaction with whom either has negotiated or to whom
either has agreed to pay a broker commission. Buyer agrees to indemnify Seller for any and all
claims for brokerage commissions or fmders' fees in connection with negotiations for purchase of
the Purchase Property arising out of any alleged agreement or commitment or negotiation by
Buyer, and Seller agrees to indemnify Buyer for any and all claims for brokerage commissions or
finders' fees in connection with negotiations for purchase of the Purchase Property arising out of
any alleged agreement or commitment or negotiation by Seller.
19. NO MERGER OF REPRESENTATIONS, WARRANTIES. All representations and
warranties contained in this Purchase Agreement shall not be merged into any instruments or
conveyance delivered at Closing, and the parties shall be bound accordingly.
20. ENTIRE AGREEMENT; AMENDMENTS. This Purchase Agreement constitutes the
entire agreement between the parties, and no other agreement prior to this Purchase Agreement
or contemporaneous herewith shall be effective except as expressly set forth or incorporated
herein. Any purported amendment shall not be effective unless it shall be set forth in writing and
executed by both parties or their respective successors or assigns.
21. BINDING EFFECT; ASSIGNMENT. This Purchase Agreement shall be binding upon
and inure to the benefit of the parties and their respective heirs, executors, administrators,
successors and assigns. Buyer shall not assign its rights and interest hereunder without notice to
Seller.
22. NOTICE. Any notice, demand, request or other communication which mayor shall be
given or served by the parties shall be deemed to have been given or served on the date the same
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is deposited in the United States Mail, registered or certified, postage prepaid and addressed as
follows:
A. If to Seller: City of Shakopee
Attn: Mark McNeill, City Administrator
129 South Holmes Street
Shakopee, MN 55379
B. If to Buyer: Shakopee Public Utilities Commission
Attn: Lou Van Hout
255 Sarazin Street
Shakopee, MN 55379
23. SPECIFIC PERFORMANCE. This Purchase Agreement may be specifically enforced
by the parties, provided that any action for specific enforcement is brought within six months
after the date of the alleged breach. This paragraph is not intended to create an exclusive remedy
for breach of this agreement; the parties reserve all other remedies available at law or in equity.
24. COUNTERPARTS. This Purchase Agreement may be executed in any number of
counterparts, each of which shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this agreement as of the date
written above.
SELLER
CITY OF SHAKOPEE
By
Its Mayor
By
Its City Administrator
By
Its City Clerk
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BUYER
SHAKOPEE PUBLIC UTILITIES
COMMISSION
By
Its Chairperson
By
Its
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EXHIBIT A TO PURCHASE AGREEMENT
Legal Description of Purchase Property
That part of Outlot A, PHEASANT RUN FIRST ADDITION, according to the recorded plat
therepf, describe~ as follows:
Beginning at the northwest comer of said Outlot A; thence on an assumed bearing of
South 04 degrees 44 minutes 52 seconds West, along the westerly line of said Outlot
A, a distance of 100.00 feet; thence South 85 degrees 15 minutes 08 seconds East a
distance of 105.00 feet; thence North 04 degrees 44 minutes 52 seconds East, to the
north line of said Outlot A; thence South 89 degrees 58 minutes 37 seconds West,
along said north line to the point of beginning
And
The East 148.79 feet of the South 110.00 feet of the North 203.19 feet of Outlot A, PHEASANT
RIm: EIGHTH APPITlON, ~~CQf~ip.g to the recorded pl~t t4~reof.
, i' "". .
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"
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A-I
EXHIBIT B TO PURCHASE AGREEMENT
Exhibit B
Form of Easement Agreement
EASEMENT AGREEMENT
This easement and agreement (the "Agreement") is made as of this _ day of ,
2003, by and between City of Shakopee, a Minnesota municipal corporation ("City"), and
Shakopee Public Utility Commission, a municipal utility commission organized under Minnesota
law ("SPUC").
WHEREAS, City owns certain real property situated in the City of Shakopee, Scott
County, Minnesota, more particularly described in Exhihit A attached hereto and incorporated
herein by reference ("City Property"); and
WHEREAS, SPUC owns adjacent real properties in the City of Shakopee, Scott County,
Minnesota, commonly known as the "Well No. 16" and the "Well No. 18" and more particularly
described in Exhihit R attached hereto and incorporated herein by reference (said "Well No. 16"
and "Well No. 18" are collectively referred to as the "SPUC Properties"); and
WHEREAS, the City Property is vacant land on which the City intends to construct and
operate athletic facilities. specifically soccer fields; and
WHEREAS, the SPUC Properties are vacant land on which SPUC intends to construct
and operate municipal wells, including pumphouse buildings; and
WHEREAS, SPUC desires certain easements from City to use, operate, maintain, repair,
and reconstruct on portions of the City Property two submersible wells (commonly referred to as
"Well No. 17" and "Well No. 19"), underground water mains and appurtenances, and to access
said mains, submersible wells and the SPUC Properties; and
WHEREAS, City desires certain easements from SPUC to use, operate, maintain, repair
and reconstruct public trail facilities and athletic field facilities over portions of the SPUC
Properties; and
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B-1
EXHIBIT B TO PURCHASE AGREEMENT
WHEREAS, the parties agrees to grant to each other certain perpetual easements as
provided in this Agreement.
NOW, THEREFORE, in consideration of the conditions, covenants and mutual
agreements hereinafter set forth, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged by the parties, the parties hereto agree as follows:
1. RHCTT AT,S INCORPORA THD. The above recitals are incorporated into and made a part
of this Agreement.
2. PERPETTJAT. WRTJ, EASEMENTS. City hereby grants and conveys to SPUC, forever,
nonexclusive well easements over, under and across those portions of the City Property as
described on the attached Exhihit C and depicted on the attached Exhihit G and incorporated
herein by reference, including the right and authority to construct, operate, maintain and repair
(including reconstruction) submersible wells and appurtenances thereon and to cut, trim, or
remove therefrom trees, shrubs, or other vegetation that unreasonably interferes with SPUC's
wells and appurtenances. SPUC agrees to notify the City prior to cutting, trimming, or removing
any vegetation and to work cooperatively with the City. The well easements are referred to as
"Well No. 17" and "Well No. 19." SPUC hereby represents, agrees, and warrants that the wells
and appurtenances shall be used, operated, maintained, repaired and reconstructed in accordance
with all applicable laws, statutes, codes, ordinances, rules and regulations ("Laws") including
those of.Scott County and that all inspections necessary for the completion of such installation
will be undertaken as required. SPUC agrees to maintain, at its sole expense, the well and
appurtenances across the City Property in good condition and repair and in accordance with all
applicable Laws. SPUC agrees that no above-ground structures may be located within the
easement areas except with the consent ofthe City.
3. PERPETTJAT, WATER MAIN EASEMENTS. City hereby grants and conveys to SPUC,
forever, nonexclusive water main easements over, under and across that portion of the City
Property as described on the attached Exhihit D and depicted on the attached Exhihit G and
incorporated herein by reference (the "Water Main Easements"), including the right and authority
to construct, operate, maintain and repair (including reconstruction) an underground water main
and appurtenances therein and to cut, trim, or remove therefrom trees, shrubs, or other vegetation
that unreasonably interferes with SPUC's water main and appurtenances. SPUC agrees to notify
the City prior to cutting, trimming, or removing any vegetation and to work cooperatively with
the City. SPUC hereby represents, agrees, and warrants that the water main and appurtenances
shall be used, operated, maintained, repaired and reconstructed in accordance with all applicable
laws, statutes, codes, ordinances, rules and regulations ("Laws") including those of Scott County
and that all inspections necessary for the completion of such installation will be undertaken as
required. No portion of the water main shall be located above the surface of the ground, except
for hydrants appurtenant to the water main. SPUC agrees to maintain, at its sole expense, the
underground water main and appurtenances with the easement areas in good condition and repair
and in accordance with all applicable Laws.
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4. PERPETTJAT. DEFINED AC,CESS EASEMENTS. City hereby grants and conveys to
SPUC, forever, nonexclusive access easements over and across those portions of the City
Property as described on the attached Exhihit E and depicted on the attached Exhihit G
incorporated herein by reference (the "Defined Access Easements"), including the right to use the
easement area as a means of gaining vehicular and pedestrian access to the Water Main
Easements and to Well No. 16, Well No. 17, Well No. 18 and Well No. 19.
5. PERPETTJAT. GENERAL ACCESS EASRtyfENTS. City hereby grants and conveys to
SPUC a perpetual right of ingress and egress over driveways, trails and parking areas on the City
Property, as those areas may exist from time to time, as necessary to access the Water Main
Easements and Well No. 16, Well No. 17, Well No. 18 and Well No. 19. City also grants to
SPUC reasonable ingress and egress over the City Property lying between the City's driveways,
trails and parking areas and Well No. 16, Well No. 17, Well No. 18 and Well No. 19. The access
easements granted in this paragraph are referred to as the "General Access Easements."
6. TRAIT. EASEMENTS. SPUC hereby grants and conveys to City, forever, nonexclusive
trail easements over and across those portions of the SPUC Properties as described on the
attached Exhihit F and depicted on the attached Exhihit G incorporated herein by reference,
including the right to construct, operate, maintain and repair (including reconstruction) trail
fjicilities thereon and to cut, trim, or remove therefrom trees, shrubs, or other vegetation that
unreasonably interferes with City's trail facilities. City agrees to notify SPUC prior to cutting,
trimming, or removing any vegetation and to work cooperatively with SPUC.
7. TRAIT. CONSTRlTrTTON AND MAINTENANCE. The parties acknowledge that the
locations of the Defmed Access Easements were selected to coincide with the location of a
planned City pedestrian recreational trail. The trail easements granted by SPUC to the City are
part of the same trail system. The parties agree to the following with respect to the construction
and maintenance of the trail system:
a. City has constructed those portions of the trail system within the Defined Access
Easements to specifications as mutually agreed upon by SPUC and the City.
b. SPUC agrees to reimburse the City $14,318.19 for its actual costs of constructing
the trails within the Defined Access Easements.
c. The City will not relocate the planned trail to a location outside the Defined
Access Easements except upon mutual consent of the parties.
d. The City is responsible for maintaining and repairing its trail system, whether
located within the Defined Access Easements on the City Property or within the
Trail Easements on the SPUC Properties, except that SPUC is responsible for
repairing any damage to the trails that results from SPUC's construction activities
on the SPUC Properties. SPUC agrees to reimburse City for one third of the
City's actual costs for resurfacing or repairing the segments of trails shown on the
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EXHffiIT B TO PURCHASE AGREEMENT
attached Exhihit H. SPUC will reimburse the City within 30 days after receipt of
the City's detailed invoices for costs incurred.
8. WATER MAIN CON~TRTTCTTON ANn MAINTENANCE. City has constructed and
installed water mains within the Water Main Easements to specifications as mutually agreed
upon by SPUC and the City. SPUC agrees to reimburse the City is actual costs of $158,887.28
for that construction. SPUC is responsible for maintaining and repairing the water mains within
the Water Main Easements.
9. PARK ANn ATHLETIC FACTTJTY TT~E OF WELL EA~EMENTS. The City intends
to construct and operate park and atWetic facilities on the City Property, including portions of the
City Property lying within the Well No. 19 easement area. The City specifically reserves the
right to use the easement areas for Well No. 17 and Well No. 19 for the construction and
operation of park and athletic facilities; provided that any use made by the City of those easement
areas must be consistent with regulations of the state department of health and other regulations
applicable to municipal well and water systems. The City agrees not to install any landscaping or
improvements, other than grass sod, within the easement areas for Well No. 17 and Well No. 19
without the prior consent of SPUC. SPUC agrees not to unreasonably withhold its consent to
proposed landscaping or other improvements. SPUC grants to the City a license to use the
westerly 30 feet of Well No. 18 for construction of park and atWetic facilities, subject to the same
restrictions on the City's use as set forth above for the City's use of Well No. 17 and Well No.
19. SPUC may terminate or modify the license if SPUC deems it necessary to accommodate
construction of a well house on Well No. 18; however, SPUC agrees to use its best efforts to
locate the well house in a manner that minimizes adverse impact on the City's use of the licensed
area. The City is responsible for mowing and maintaining the turf within the easement areas. for
Well Nos. 17and 19 and within the area licensed to the City on the Well No. 18 property. SPUC
is responsible for maintaining the SPUC Properties other than the area licensed to the City.
10. CTTY'~ TJ~EOFWATRR MAIN ANn ACCR~~ RA~EMENT~, City hereby reserves to
itself the right to use the land included within the Water Main Easements, Defined Access
Easements and General Access Easements (including without limitation, parking of vehicles on
the surface thereof), subject to all governmental rules and regulations, and provided that such use
will not unreasonably disturb or interfere with such water main or appurtenances or prevent
reasonable ingress and egress thereto for the purposes of operation, use, maintenance and repair
(including reconstruction) thereof. It is also understood and agreed between the parties hereto
that no building or structure shall be placed by City, its successors or assigns within the Water
Main Easements or Defined Access Easements. City reserves the right to locate or relocate its
driveways, trails and parking areas on the City Property as the City determines in its sole
discretion. City also reserves the right to erect buildings or structures on those portions of the
City Property lying outside of Well No. 17, Well No. 19, the Water Main Easements and the
Defined Access Easements, so long as SPUC is left with a reasonable means of access from the
driveways, trails and parking areas to its easements and the SPUC Properties. SPUC specifically
agrees that, subject to all governmental rules and regulations, City retains the right to cross and
recross the Water Main Easements and Defined Access Easements with other utility lines, pipes,
CAH-233522v7
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EXHIBIT B TO PURCHASE AGREEMENT
wires and easements, parking and access easements and that City may install paving, curb and
gutter, traffic direction signs, and landscaping on the Water Main Easement and Defined Access
Easement areas which are not inconsistent with the grant of the easements herein. (City's right to
replacement or repair of such installations is subject, however, to the limitations in paragraph 12
of this Agreement.)
II. NONDISTIJRRANCR In SPUC's use of the easements herein granted to SPUC and in
the construction, installation, repair, replacement and maintenance of the easement areas or
SPUC's improvements thereon, SPUC agrees not to unreasonably disturb the City's use of the
City Property. In City's use of the trail easements herein granted to City and in the construction,
installation, repair, replacement and maintenance of. the trail easement areas or City's
improvements thereon, City agrees not to unreasonably disturb SPUC's use of the SPUC
Properties.
12. REPAIR AND RESTORATION OF EASEMENT AREAS. SPUC will, at its sole cost
and expense and promptly after completion of its work, replace the surface and subsurface of the
soil within the easements granted herein to SPUC, as may be disturbed in the construction,
maintenance or repair (including reconstruction) of the well, water ,main and appurtenances.
SPUC will restore the easement areas to substantially the same condition that existed prior to the
improvement or repair; and SPUC will repair all driveways and other paved areas, and repair or
replace sod or irrigation components which may be damaged by construction on the easement
areas or which is damaged as a direct result of the exercise of the rights herein granted. City
specifically agrees that SPUC shall have no obligation to replace or repair surface improvements
installed by City within the easement areas, except paved areas, sod or irrigation components.
13. INDEMNITY. The parties agree to mutually indemnify each other as follows:
a. SPUC, its successors or assigns, shall defend, indemnify and save hannless City,
its officers, agents and employees, and any mortgagee of the City Property, against
all suits, demands, causes of action, liabilities, or claims thereof for injury or
damages of whatever nature, including death, or damage to property (i) arising out
of or related to any activity of SPUC, its agents, employees, licensees or
contractors, their agents or employees within the permanent well, water main or
access easement areas or the SPUC Properties, or (ii) arising out of any default
hereunder.
b. City, its successors or assigns, shall defend, indemnify and save harmless SPUC,
its officers, agents and employees, against all suits, demands, causes of action,
liabilities or claims thereof for injury or damages of whatever nature, including
death or damage to property (i) arising out of or related to any activity of City, its
agents, employees, licensees or contractors, their agents or employees within the
permanent trail easement areas or City Property, or (ii) arising out of any default
hereunder.
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EXHIBIT B TO PURCHASE AGREEMENT
14. NOTICES. Notices in demand required or permitted to be given hereunder shall be given
by certified mail, return receipt requested, or by a national overnight express service such as
FedEx, in the case of City, addressed to it at 129 South Holmes Street, Shakopee, MN 55379 or
at such other address as specified in writing by City and the case ofSPUC, addressed to it at 255
Sarazin Street, Shakopee, Minnesota 55379 or at such other address specified in writing by
SPUc.
15. EXHTRTTS. All exhibits referred to herein and attached hereto shall be deemed part of
the Agreement.
16. RECORDTNG. The Agreement shall be recorded in the records of Scott County,
Minnesota.
17. GOVERNTNG T ,A WS. The laws of the state of Minnesota shall apply to the Agreement.
18. SEVER A RTf .TTY. If any term, provision or condition contained in the Agreement shall,
to any extent, be invalid or unenforceable, the remainder of the Agreement (or the application of
such term, provision or condition to persons or circumstances other than those in respect of
which it is invalid or unenforceable) shall not be affected thereby, and each term, provision or
condition of the Agreement shall be valid and enforceable to the fullest extent permitted by law.
18. RTNDTNG ON FUTURE PARTIES. The perpetual easement and all covenants and
ea,sements herein shall run with the land and shall inure to the benefit of and be binding upon the
parties, their successors and assigns.
IN WITNESS WHEREOF, the parties have executed this easement and agreement as of
the day and year first above written.
CITY OF SHAKOPEE
By:
Its
SHAKOPEE PUBLIC UTILITIES COMMISSION
By:
Its Chairperson
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EXHIBIT B TO PURCHASE AGREEMENT
By
Its
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EXHIBIT B TO PURCHASE AGREEMENT
ACKNOWLEDGMENTS
STATE OF MINNESOTA } ss.:
COUNTY OF SCOTT
The foregoing instrument was acknowledged before me this day of
, 2004 by , Mark McNeill and
Judy S. Cox, the mayor, city administrator and city clerk, respectively, of the City of Shako pee, a
Minnesota municipal corporation, by and on behalf of the corporation.
Notary Public
STATE OF MINNESOTA } ss.:
COUNTY OF SCOTT
The foregoing instrument was acknowledged before me this day of
, 2004 by and
, the and ,
respectively, of Shakopee Public Utilities Commission, a municipal utility commission under the
laws of Minnesota, by and on behalf of said utility commission.
Notary Public
Document Drafted By:
Kennedy & Graven, Chartered
470 Pillsbury Center
Minneapolis, MN55402
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EXHIBIT B TO PURCHASE AGREEMENT
EXHIBIT A
Legal Description of City Property
The Southwest Quarter of the Northwest Quarter of the Northeast Quarter of Section 17,
Township 115 North, Range 22 West of the Fifth Principal Meridian
And
Outlot A, PHEASANT RUN FIRST ADDITION, according to the recorded plat thereof, Scott
County, Minnesota; except the following described parts thereof:
Beginning at the northwest comer of said Outlot A; thence on an assumed bearing of
South 04 degrees 44 minutes 52 seconds West, along the westerly line of said Outlot
A, a distance of 100.00 feet; thence South 85 degrees 15 minutes 08 seconds East a
distance of 105.00 feet; thence North 04 degrees 44 minutes 52 seconds East, to the
north line of said Outlot A; thence South 89 degrees 58 minutes 37 seconds West,
along said north line to the point of beginning
And
Outlot A, PHEASANT RUN EIGHTH ADDITION, according to the recorded plat thereof, Scott
County, Minnesota, except the East 148.79 feet of the South 110.00 feet of the North 203.19 feet
thereof.
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.,...- . ..' . "'~
EXHIBIT B TO PURCHASE AGREEMENT
EXHIBIT B
Legal Descriptions of SPUC Properties
Well No 16
That part of Outlot A, PHEASANT RUN FIRST ADDITION, according to the recorded plat
thereof, described as follows:
Beginning at the northwest comer of said Outlot A; thence on an assumed bearing of
South 04 degrees 44 minutes 52 seconds West, along the westerly line of said Outlot
A, a distance of 100.00 feet; thence South 85 degrees 15 minutes 08 seconds East a
distance of 105.00 feet; thence North 04 degrees 44 minutes 52 seconds East, to the
north line of said Outlot A; thence South 89 degrees 58 minutes 37 seconds West,
along said north line to the point of beginning
And
WellNo 1R
The East 148.79 feet of the South 110.00 feet of the North 203.19 feet of Outlot A, PHEASANT
RUN EIGHTH ADDITION, according to the recorded plat thereof.
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EXHIBIT B TO PURCHASE AGREEMENT
EXHIBIT C
Legal Description of Well Easements
WellNo 17
A perpetual easement for well purposes over, under and across that part of Outlot A,
PHEASANT RUN FIRST ADDITION, according to the recorded plat thereof described as
follows:
Commencing at the northwest comer of said Outlot A; thence on an assumed bearing
of South 04 degrees 44 minutes 52 seconds West, along the westerly line of said
Outlot A, a distance of 361.75 feet, to the point of beginning of the land to be
described; thence South 85 degrees 15 minutes 08 seconds East a distance of 105.00
feet; thence South 04 degrees 44 minutes 52 seconds West, to a southerly line of said
Outlot A; thence westerly, along said southerly line, to the southwest comer of said
Outlot A; thence North 04 degrees 44 minutes 52 seconds East, along the westerly
line of said Outlot A, a distance of 90.00 feet, to the point of beginning.
And
WellNo 19
A perpetual easement for well purposes over, under and across the East 111.45 feet of the South
110.00 feet of the North 548.86 feet of Outlot A, PHEASANT RUN EIGHTH ADDITION,
according to the recorded plat thereof.
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EXHIBIT B TO PURCHASE AGREEMENT
EXHIBIT D
Legal Description of Water Main Easements
1. A 20.00 foot perpetual easement for watermain purposes over, under and across the
following described property:
Outlot A. PHEASANT RUN FIRST ADDITION, according to the recorded plat
thereof.
The center line of said easement is described as follows:
Commencing at the northwest comer of said Outlot A; thence on an assumed bearing
of South 04 degrees 44 minutes 52 seconds West, along the westerly line of said
Outlot A, a distance of 100.00 feet; thence South 85 degrees 15 minutes 08 seconds
East a distance of 60.00 feet, to a point hereinafter referred to as "Point A"; thence
North 85 degrees 15 minutes 08 seconds, a distance of 60.00 feet, to said westerly
line; thence South 04 degrees 44 minutes 52 seconds West, along said westerly line, a
distance of 261.75 feet; thence South 85 degrees 15 minutes 08 seconds East a
distance of 50.00 feet, to the point of beginning of the center line to be described;
thence northerly to said "Point A" and said center line there terminating.
2. A perpetual easement for watermain purposes over, under and across the South 15 feet of
the West 566.58 feet ofthe following described property:
The Southwest Quarter of the Northwest Quarter of the Northeast Quarter of Section 17,
Township 115 North, Range 22 West of the Fifth Principal Meridian.
3. A perpetual easement for watermain purposes over, under and across the North 5.00 feet
of the West 566.58 feet of Outlot A, PHEASANT RUN EIGHTH ADDITION, according to the
recorded plat thereof.
4. A perpetual easement for watermain purposes over, under and across the West 20.00 feet
of the East 109.32 feet of the North 93.19 feet of Outlot A, PHEASANT RUN EIGHTH
ADDITION, according to the recorded plat thereof.
5. A perpetual easement for watermain purposes over, under and across the West 20.00 feet
of the East 68.09 feet of the South 235.67 feet ofthe North 438.86 feet of Outlot A, PHEASANT
RUN EIGHTH ADDITION, according to the recorded plat thereof.
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EXIDBIT B TO PURCHASE AGREEMENT
EXHIBIT E
Legal Description of Defined Access Easements
A perpetual easement for access purposes over, under and across the North 10.00 feet of the
West 110.00 feet of the East 635 feet of Outlot A, PHEASANT RUN FIRST ADDITION,
according to the recorded plat thereof.
A perpetual easement for access purposes over, under and across that part of Outlot A,
PHEASANT RUN FIRST ADDITION, lying 10.00 feet on each side ofthe following described
center line:
Commencing at the northwest comer of said Outlot A; thence on an assumed bearing of
South 4 degrees. 44 minutes 52 seconds West, along the westerly line of said Outlot A, a
distance of 100.00 feet; thence South 85 degrees 15 minutes 08 seconds East a distance of
79.86 feet, to the point of beginning of the center line to be described; thence South 7
degrees 30 minutes 05 seconds West a distance of 299.95 feet; thence southerly and
southeasterly a distance of 72.60 feet, along a tangential curve concave to the northeast
having a radius of 50.00 feet and a central angle of 83 degrees 11 minutes 25 seconds;
thence South 75 degrees 41 minutes 17 seconds East, tangent to said curve, a distance of
58.00 feet and said center line there terminating.
A perpetual easement for access purposes over, under and across that part of Outlot A,
PHEASANT RUN EIGHTH ADDITION, lying 10.00 feet on each side of the following
described center line:
Commencing at the northeast comer of said Outlot A; thence on an assumed bearing of
North 89 degrees 59 minutes 57 seconds West, along the north line of said Outlot A, a
distance of 45.08 feet, to the point of beginning of the center line to be described; thence
South 0 degrees 23 minutes 29 seconds West a distance of 115.11 feet; thence southerly a
distance of 15.72 feet, along a tangential curve concave to the east having a radius of
128.67 feet and a central angle of 7 degrees 00 minutes 01 seconds; thence South 6
degrees 36 minutes 32 seconds East, tangent to said curve, a distance of 31 0.13 feet to the
south line of the North 438.86 feet of said Outlot A and said center line there terminating.
The side lines of said easement shall be shortened or prolonged to terminate in the north
line of said Outlot A and the south line of the North 438.86 feet of said Outlot A.
CAH-233522v7
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EXHIBIT B TO PURCHASE AGREEMENT
EXHIBIT F
Legal Description of Trail Easements
A 20.00 foot perpetual easement for trail purposes over, under and across that part of Outlot A,
PHEASANT RUN FIRST ADDITION, according to the recorded plat thereof, the centerline of
which is described as follows:
Commencing at the northwest comer of said Outlot A; thence on an assumed bearing of
South 4 degrees 44 minutes 52 seconds West, along the westerly line of said Outlot A, a
distance of 100.00 feet; thence South 85 degrees 15 minutes 08 seconds East a distance of
79.86 feet, to the point of beginning of the centerline to be described; thence North 7
degrees 30 minutes 05 seconds East a distance of 110.00 feet, more or less, to the north
line of said Outlot A and said centerline there terminating.
and
A 20.00 foot perpetual easement for trail purposes over, under and across that part of the
following described property:
The East 148.79 feet of the South 110.00 feet of the North 203.19 feet of Outlot A,
PHEASANT RUN EIGHTH ADDITION, according to the recorded plat thereof.
The centerline of said easement is described as follows:
Commencing at the northeast comer of said Outlot A; thence on an assumed bearing of
North 89 degrees 59 minutes 57 seconds West, along the north line of said Outlot A, a
distance of 45.08 feet, to the point of beginning of the center line to be described; thence
South 0 degrees 23 minutes 29 seconds West a distance of 115.11 feet; thence southerly a
distance of 15.72 feet. along a tangential curve concave to the east having a radius of
128.67 feet and a central angle of? degrees 00 minutes 01 seconds; thence South 6
degrees 36 minutes 32 seconds East, tangent to said curve, a distance of 31 0.13 feet to the
south line ofthe North 438.86 feet of said Outlot A and said center line there terminating.
The side lines of said easement shall be shortened or prolonged to terminate in the north
line of the above-described property and the south line of the above described property.
CAH-233522v7
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EXHIBIT B TO PURCHASE AGREEMENT
EXHIBIT G
Depiction of Easement Areas
CAH-233522v7
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