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HomeMy WebLinkAboutItem 06.lDecember 14, 2012 ASSIGNMENT AND AMENDMENT OF THE PURCHASE AGREEMENT FOR THE SALE OF THE FORMER SENIOR CENTER December 17, 2012 City Council Meeting Proposed Action Staff recommends adoption of the following motion: Move to approve a resolution authorizing the assignment of the purchase agreement for the sale of the former Senior Center to Rose Mountain Spiritual Community Center to be assigned to Rose Mountain LLC and to amend the purchase agreement to reflect a corrected legal description of the property. Passage of this motion will result in the sale of the property of the property to Rose Mountain LLC. Overview The City Council approved a purchase agreement for the purchase of the former Senior Center by Rose Mountain Community Spiritual Center (RMSCC) at the October 1, 2012 City Council meeting. RMSCC is requesting that this agreement be assigned to the recently created Rose Mountain LLC. George Maverick, President of the Rose Mountain Spiritual Community Center has for business purposes, requested that the previously approved purchase agreement be assigned to Rose Mountain Limited Liability Company of which he is the Chief Manager. This is a common practice for commercial real estate acquisitions. All the previously approved terms and conditions of the purchase agreement would be included in this assignment. In addition, the updated title work for the property identified a technical error in the original legal description for the property. This has been corrected in the First Amendment to the Purchase Agreement. Staff recommends approval of the proposed resolution authorizing the Assignment and First Amendment of the purchase agreement. The closing is scheduled for December 18` Primary Issues to Consider • Does this cause any material change to the original purchase agreement approved by the City Council? It does not. Supporting Information • Resolution authorizing the assignment of the purchase agreement for sale of the former Senior Center Property • Copies of signed Assignment of Real Estate Purchase and Sale Agreement and First Amendment to_the Purchase Agreement David L. Olson, Community and Economic Development Director Item No. Financial Impact: $ None Budgeted: Y/N Y Source: Project 4084 Related Documents: Heritage Center Budget CITY OF LAKEVILLE DAKOTA COUNTY, MINNESOTA Date Resolution Motion By Seconded By RESOLUTION APPROVING ASSIGNMENT AND AMENDMENT OF PURCHASE AGREEMENT WHEREAS, the City entered into a Purchase Agreement with Rose Mountain Community Spiritual Center, a Minnesota non - profit corporation, ( "Rose Mountain ") dated October 1, 2012, for conveyance of City property legally described in the attached Exhibit A ( "Purchase Agreement "); WHEREAS, for business purposes, Rose Mountain desires to assign its interest in the Purchase Agreement to Rose Mountain, LLC, a Minnesota limited liability company, which will then lease the City Property to Rose Mountain pursuant to the assignment agreement attached hereto as Exhibit B ( "Assignment Agreement "); and WHEREAS, the City agrees to allow the assignment of the Purchase Agreement to Rose Mountain, LLC, pursuant to the terms of the Assignment Agreement attached hereto as Exhibit "A "; WHEREAS, the parties also need to address an overlap in the legal description of the parcel to be conveyed by amendment of the Purchase Agreement, which is addressed in the First Amendment to Purchase Agreement attached hereto as Exhibit "C" ( "Amendment "); NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota as follows that the Assignment Agreement and Amendment are hereby approved. ADOPTED this 17th day of December 2012, by the City Council of the City of Lakeville, Minnesota. ATTEST: Charlene Friedges, City Clerk CITY OF LAKEVILLE BY: 1 Mark Bellows, Mayor EXHIBIT "A" Legal Description of City Property Lots 1 and 2, except the North 7.5 feet of Lot 2, Block 8 Berres Addition to Lakeville; Lot 5, Block 14 Lakeville Village (Town of Fairfield) and the east 20 feet of vacated Walnut (Holt) Street adjacent thereto, which accrued by reason of the vacation thereof, according to the plat on file in the Dakota County Recorder' s office. Lot 12, Block 14 Lakeville Village (Town of Fairfield), except the east 39 feet; together with the east 20 feet of vacated Walnut (Holt) Street adjacent thereto, which accrued by reason of the vacation thereof, according to the plat on file in the Dakota County Recorder' s office. 2 ASSIGNMENT OF REAL ESTATE EXHIBIT B PURCHASE AND SALE AGREEMENT THIS ASSIGNMENT is imade, .his :6th day of December, 2012 by Rose Mountain Spiritual Commun'ty Center Assiignor)_to <tose`,Mauntairi LLC (Assignee). WHEREAS, Assignor.has_entered into a certain Real Estate Purchase and Sale Agreement with The City of Lakeville { and Assignor as ..Buyer, executed on the 1s day of October, 2012, for the purchase and sa.e cerzain real property. located at 20732 Holt Avenue, Lakeville, MN, and which is described more particularly in said Agreement, a 'coPiot which.is`attached as Exhibit "A ", and, WHEREAS, Assignor desires to assign, transfer, sell and convey to Assignee all of Assignor's right, title and interest in, to and under said Real Estate Purchase and Sale Agreement; arid, WHEREAS;. Assignee is desirous of receiving all of Assignor's right, title And interest in, to and under said Real Estate Purchase and Sale Agreement; NOW, THEREFORE, for good and valuable consideration, the receipt of which • is hereby acknowledged, Assignor does hereby assign, transfer, sell and convey unto Assignee all of Assignor's right, trtle and interest in, to and under said Real Estate Purchase and Sale Agreement. Assignee hereby assumes all of Assignors duties and obligations under said Real Estate Purchase and Sale Agreement. This AsignTrent shall be bin ding upon Assignor and shall inure to the benefit of Assignee and its successors, heirs and assigns. IN_WITNESS WHEREOF this Assignment has been signed, sealed and delivered by Assignor and Assignee as of the day and year first above written. a' Brick - It's President or Rose Moun Spiritual Community Center aSrerick — It's Chief Manager signee — Rose Mountain LLC State of Minnesota, County of HENINEPiU! This instrument was acknowledged before me on December 7, 2012, by George Maverick the President of Rcse %:to nta .::tu Community Center, a Minnesota non - profit corporation, and Chief Manager of Rose Mountain, LLC, a Minnesota limited lability :_^ 21).:cn behalf of both companies. 71 46,414 Lots 1 and 2, except the North 7.5 feet of Lot 2, Block $ BC:T:° A1/4 Lot 5, Block 14 Lakeville Village (Town of Fairfield) and the east _.t' :... _ i Walnut (Holt) Street adjacent thereto, which accrued by reason of ti:, n�' _ rd to tat . plat on file in the Dakota County Recorder's office. The west 131 feet of Lot 12, Block 14 Lakeville Village (Tov,-a of _......... e ;: 2t feet of vacated Walnut (Holt) Street adjacent thereto, win eh acme.. :... • _ thereof, according to the plat an file in the Dakota Count!„, Reci?"1 3 EXHIBIT A LEGAL DESCRIPT1OIN' FIRST AMENDMENT TO PURCHASE AGREEMENT THIS FIRST AMENDMENT (the "Amendment ") to Purchase Agreement is effective as of the day of , 2012, by and between CITY OF LAKEVILLE, a Minnesota municipal corporation ( "Seller ") and ROSE MOUNTAIN, LLC a Minnesota limited liability company ( "Purchaser "). RECITALS WHEREAS, the Seller and Rose Mountain Community Spiritual Center ( "RMCSC ") entered into a Purchase Agreement dated October 1, 2012 for the sale of certain real property within the City of Lakeville, Minnesota ( "Purchase Agreement "); EXHIBIT C WHEREAS, RMCSC assigned its interest in the Purchase Agreement to Purchaser by Assignment dated Decebmer 3, 2012; WHEREAS, the Purchase Agreement contains an overalp in the legal description which the parties desire to correct; NOW THEREFORE, for valuable consideration, including the promises and covenants contained herein, the receipt and sufficiency of which is hereby acknowledged, Purchaser and Seller agree as follows: 1. Exhibit A of the Purchase Agreement is amended to read as provided in Exhibit A attached hereto. 2. This Amendment shall be considered an integral part of the Purchase Agreement and shall be binding upon the Seller and Purchaser from the date first above written. Subject only to the modification referred to in this Amendment, all other terms and conditions of the Purchase Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first written above, in multiple counterparts, each of which shall be deemed an original and all of which shall evidence but one agreement. 1 Seller: CITY OF LAKEVILLE By: Mark Bellows, Mayor By: Charlene Friedges, City Clerk STATE OF MINNESOTA ) (S S COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of 2012, by Mark Bellows and Charlene Friedges, the Mayor and City Clerk of the above -named Seller. Notary Public 2 Purchaser: ROSE MOUNTAIN, LLC By: STATE OF MINNESOTA ) (SS COUNTY OF The foregoing instrument was acknowledged before me this 2012, by , the Purchaser. Notary Public 3 day of of the above -named EXHIBIT A LEGAL DESCRIPTION Lots 1 and 2, except the North 7.5 feet of Lot 2, Block 8 Berres Addition to Lakeville; Lot 5, Block 14 Lakeville Village (Town of Fairfield) and the east 20 feet of vacated Walnut (Holt) Street adjacent thereto, which accrued by reason of the vacation thereof, according to the plat on file in the Dakota County Recorder's office. Lot 12, Block 14 Lakeville Village (Town of Fairfield), except the east 39 feet; together with the east 20 feet of vacated Walnut (Holt) Street adjacent thereto, which accrued by reason of the vacation thereof, according to the plat on file in the Dakota County Recorder's office. 4