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HomeMy WebLinkAboutItem 11December 14, 2012 PURCHASE AGREEMENT FOR THE PURCHASE OF PROPERTY FROM HMWHC, LLC FOR THE DOWNTOWN PARKING LOT IMPROVEMENT PROJECT December 17, 2012 City Council Meeting Proposed Action Staff recommends adoption of the following motion: Move to approve a Purchase Agreement and Access Easement with HMWHC for Downtown Parking Lot Improvements . Passage of this motion will result in acquisition of the privately owned portion of the Downtown Parking Lot in the Ben Franklin Block that is planned for a public parking area. Overview The EDC recommended in March and the City HRA approved in April of this year a Joint Powers Agreement (JPA) with the Dakota County CDA in March of this year to complete identified redevelopment projects within Redevelopment Project Area No. 1 which encompasses all of the Downtown Area. One of the proposed projects identified at that time was to complete public parking improvements in the Ben Franklin Block. The parking lot project involves the reconstruction of an existing parking lot at the location shown on Exhibit A. Approximately half of the parking lot is currently owned by the City and the CDA and the other half was recently acquired by HMWHC, LLC. The City has reached a tentative agreement to purchase the portion owned by HMWHC, LLC for $90,000. In addition, the City agrees to grant an access easement over the area being acquired to provide access to their remaining parking area. The portions of the parking area owned by the CDA are also proposed to be conveyed to the City at no cost to the City. Future costs associated with snow removal and maintenance will be shared by the adjoining property owners. The Council approved a design contract with WSB for this project in August and construction is scheduled for 2013. Staff recommends approval of the purchase agreement and easement agreement with HMWHC, LLC. A letter of support from the Downtown Business Association is also attached. Primary Issues to Consider • What is the proposed funding source for this project? The entire project cost including property acquisition will be funded with tax increments previously collected by the CDA. Supporting Information • Purchase Agr-e •• en -s sement Agreement with HMWHC, LLC David L. Olson, Community and Economic Development Director Item No. Financial Impact: $ 90,000 Budgeted: Y/N N Source: Dakota County CDA 0 B ° � 4 •� 0 E _ et: cu- Cld -■•121-20--Q A 10 61 09 95 3.11,91.0N 7 6' 8 - 00 0* 65 901 3.00 00.00 0,00 MOS 60 06 0 .0 x :c 0 1 1 SIM 0 0 ° d , � H Q dl 0. = R fn 2 L V o r- >-, 020 tN 3 y o v ao 0 1 y" 0 • v • N po o •3AV 3MOA1OH 0) 0 0 0 0 0 00 0 y v 0 O www.downtownlakeville.com December 11, 2012 Mayor Bellows & City Council Members City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 Re: Authorization to Purchase Hewitt Investment Outlot Dear Mayor & Council Members: On behalf of our Board of Directors I am writing to inform you that the Board is in total support of purchasing the Hewitt Investment Outlot. As part of the 2007 Downtown Development Guide and Action Plan, it was determined that "The City should take the first steps towards the establishment of a public parking system in Downtown." The purchase of the above referenced outlot is indeed the beginning to fulfill this action item. We recommend that the City Council approve the authorization to purchase this parcel of land. au aglun . ' Presiden PWH:jt Downtown Lakeville Business Association P.O. Box 371 • Lakeville, MN 55044 952- 985 -0517 THIS PURCHASE AGREEMENT (the "Agreement ") is effective as of the day of , 2012, by and between CITY OF LAKEVILLE, a Minnesota municipal corporation ( "Purchaser ") and HMWHC, LLC, a Minnesota limited liability company ( "Seller "). 1.0 Property To Be Purchased. Seller is the owner of real property located in the City of Lakeville, Dakota County, Minnesota as legally described in the attached Exhibit "A" ( "Seller Property "). Subject to compliance with the terms, covenants and conditions of this Agreement, Seller shall convey to Purchaser that portion of the Seller's Property legally described in the attached Exhibit "B ", ( "Property ") including existing parking lot improvements, together with all other existing improvements located thereon, all appurtenant rights, easements, mineral rights, and all right, title and interest of Seller in and to all improvements and fixtures located thereon (all of the foregoing hereinafter collectively referred to as the "Real Property "). 2.0 Purchase Price. The purchase price ( "Purchase Price ") for the Property under this Agreement is Ninety Thousand Dollars ($90,000.00), which Purchaser will pay, in full, in cash or certified funds, on the Date of Closing. 3.0 Evidence of Title. Within fifteen (15) days of the date of this Agreement, Purchaser shall be responsible for obtaining title evidence and reviewing title to the Property. Purchaser shall be allowed twenty (20) business days after the receipt of the title commitment for examination of title and making any objections, which shall be made in writing or deemed waived. Seller shall have one hundred twenty (120) days to have such objections removed or satisfied. Seller shall proceed in good faith and use best efforts to cure objections to title within such one hundred twenty (120) day period. If Seller shall fail to have such objections removed within said time, Purchaser may, at its sole election: (a) terminate this Agreement without any liability and provide a quit claim deed in favor of the Seller to the Property; or (b) waive such objections and take title to the Property subject to such objections. Any exceptions waived or accepted by Purchaser shall be deemed to be Permitted Exceptions. 4.0. Deed/Marketable Title. Subject to performance by the Purchaser, Seller shall execute and deliver a Limited Warranty Deed, conveying good and marketable title to the Property, subject only to the following exceptions: 167844v8 PURCHASE AGREEMENT 4.1 Building and zoning laws, ordinances and state and federal regulations. 4.2 Restrictions relating to the use or improvement of the Property that do not affect Purchaser's intended use. 4.3 Permitted encumbrances. 4.4 Reservation of minerals and mineral rights to the State of Minnesota. 1 5.0. Closing. The closing for the conveyance of the Property will take place sixty (60) days following the date of this Agreement or may occur on such earlier date as Seller and Purchaser may agree in writing ( "Date of Closing ") at a place mutually agreed upon by the parties. However, this contract shall be void and no longer valid if a closing does not occur prior to March 18, 2013, unless this date is otherwise extended in writing by the parties. An extension on behalf of the Seller may be approved in writing by the City Administrator. 167844v8 4.5 Utility and drainage easements which do not interfere with present improvements. 6.0 Real Estate Taxes and Special Assessments. 6.1 Real Estate Taxes Payable in the Year of Closing. Real estate taxes payable in the year of closing shall be prorated between Seller and Purchaser on a per diem basis to the Date of Closing based on the pro rata portion of the Seller's Property to be owned by each party following the Closing. 6.2 Deferred Real Estate Taxes. Purchaser shall pay on the Date of Closing any deferred real estate taxes (including "Green Acres" taxes under Minn. Stat. §273.111) payment of which is required as a result of the closing of this sale and the recording of the deed. 6.3 Special Assessments. Purchaser shall pay all special assessments levied, pending or constituting a lien against the Property as of the Date of Closing. 6.4 Taxes and Special Assessments in the Years Following Closing. Purchaser shall pay real estate taxes payable in the years following the Date of Closing and special assessments payable therewith, the payment of which is not otherwise provided herein. Seller makes no representation concerning the amount of future real estate taxes or of future special assessments. 7.0. Possession. Possession of the Property shall be delivered to Purchaser on the Date of Closing. 8.0. Representations and Warranties of Seller. Seller represents and warrants to Purchaser: 8.1 At Closing Seller will have good and marketable title, free and clear of all liens, security interests and encumbrances, except as otherwise provided under this Agreement. 8.2 To the best of Seller's knowledge, there are no actions, suits or proceedings pending or threatened against or affecting either Seller or the Property. 8.3 To the best of Seller's knowledge, no party has engaged in any such use, storage, discharge or release. Seller has operated the Property in compliance with all applicable federal, state and local environmental laws, ordinances, rules and regulations relating to the handling, storage and disposal of hazardous and toxic 2 167844v8 wastes and substances, petroleum products and other regulated substances. Seller's operation of the Property is now and shall on the Date of Closing be in compliance with all such environmental laws, ordinances, rules and regulations, including but not limited to the maintenance of all required permits and approvals. Seller has not used or stored hazardous wastes or substances, petroleum products and other regulated substances on the Property, nor has Seller discharged or released any such substances upon the Property, including, but not limited to, underground injection of such substances, in violation of any federal, state or local environmental law, ordinance, rule or regulation. 8.4 The representations and warranties of Seller contained in this Agreement must be true now and on the Closing Date as if made on the Closing Date and Seller shall have delivered to Purchaser on the Closing Date a certificate dated the Closing Date, signed by Seller, certifying that such representations and warranties are true as of the Closing Date and survive the Closing ( "Bring Down Certificate "). 85. Seller shall, without charge to Purchaser, cooperate in Purchaser's attempts to obtain the administrative subdivision required for conveyance of the Property. Seller shall further execute such documents as may be reasonably necessary to accomplish the foregoing within two (2) days of being presented with the documents. 9.0 Representations of Purchaser. As an essential part of this Agreement and in order to induce Seller to enter into this Agreement and to sell the Property to Purchaser, Purchaser hereby represents and warrants to Seller: 9.1 Purchaser has the requisite power and authority to enter into and perform this Agreement and the Closing documents relating thereto signed by it; such documents have been duly authorized by all necessary action on the part of Purchaser and have been duly executed and delivered; such execution, delivery and performance by Purchaser of such documents does not conflict with or result in a violation of any judgment, order, mortgage, contract, agreement, or decree of any court or arbiter to which Purchaser is a party nor result in any lien, charge or encumbrance of any nature whatsoever on the Property; such documents are valid and binding obligations of Purchaser, and are enforceable in accordance with their terms. 10.0. Seller's Closing Documents. At Closing, Seller shall execute and deliver to Purchaser the following: 10.1 Deed. A Limited Warranty Deed, conveying the Property to Purchaser, free and clear of all encumbrances, except the Permitted Exceptions. 10.2 Well Disclosure Certificate. A Certificate signed by Seller warranting that there are no "Wells" on the Property within the meaning of Minn. Stat. § 103I or if there are "Wells," a Well Certificate in the form by law. 3 167844v8 10.3 Certificate of Non - Foreign Status. A non - foreign affidavit, property executed, containing such information as is required by Internal Revenue Code Section 1445(b)(2) and its regulations. 10.4 Seller's Affidavit. A standard form Affidavit by Seller indicating that on the date of closing there are no outstanding unsatisfied judgments, tax liens or bankruptcies against or involving Seller or the, to the best of Seller's knowledge, the Property. 10.5 Storage Tanks. If the Property contains or contained a storage tank, an affidavit with respect thereto, as required by Minn. Stat. § 116.48. 10.6 Bring Down Certificate. The Bring Down Certificate stating that all representations and warranties survive the Closing. 10.7 Access Easement. The access easement identified under Paragraph 14.1 10.8 Other Documents. All other documents reasonably determined by either party or the title insurance company to be necessary to transfer and provide title insurance for the Property. 11.0 Purchaser's Closing Documents. At closing, Purchaser shall execute and deliver to Seller the following: 11.1 Purchaser's Price. The Purchase Price, by wire transfer of U.S. Federal Funds or by certified check. 11.2 Access Easement. The access easement identified under Paragraph 14.1 11.3 Other Documents. All other documents reasonably determined by either party or the title insurance company to be necessary to transfer and provide title insurance for the Property. 12.0 Closing Costs. The costs relating to this transaction shall be paid as follows: 12.1 Purchaser shall pay: a. Issuance of a title commitment, b. The closing fee charged by the title company. c. Recording fee for the Warranty Deed. d. Premiums for owner's title insurance. e. The costs for engineers or other consultants, if any engaged by Purchaser regarding the Property. f. State Deed Tax 13.0 Purchaser's Contingencies. The following items are Purchaser's contingencies to this Agreement. If the contingencies are not performed, satisfied or waived prior to the Date 4 of Closing, then this Agreement may be terminated at Purchaser's option by written notice from Purchaser to Seller. All of the contingencies set forth in this Agreement are specifically stated and agreed to be for the sole and exclusive benefit of the Purchaser, and only Purchaser shall have the right to unilaterally waive any contingency by written notice to the Seller. 167844v8 13.1 Administrative Subdivision. Purchaser shall have obtained, at its sole cost and expense, approval by the City of Lakeville of an administrative subdivision of the Property from the Seller's Property. 13.2 Representations and Warranties. The representations and warranties of Seller contained in this Agreement must be true now and on the Closing Date as if made on the Closing Date and Seller shall have delivered to Purchaser on the Closing Date a certificate dated the Closing Date, signed by Seller, certifying that such representations and warranties are true as of the Closing Date and survive the closing ( "Bring Down Certificate "). 13.3 Title. Title shall have been found acceptable, or been made acceptable, in accordance with the requirements and terms contained herein. 13.4 Testing. Purchaser shall have determined, on or before the Closing Date that it is satisfied in its sole judgment with the results of its investigation and review of all matters disclosed by any environment testing, site assessments, soil tests, engineering inspections, Hazardous Substances and environmental review of the Property, all such tests, assessments, inspections and review to be obtained at Purchaser's sole cost and expense. 13.5 Physical Condition of the Property. Purchaser, in its sole judgment, shall have determined on before the Closing Date, that it is satisfied with its inspection of the physical condition of the Property, improvements constructed on the Property. 14.0 Seller's Contingencies. The following items are Seller's contingencies to this Agreement. If the contingencies are not performed, satisfied or waived prior to the Date of Closing, then this Agreement may be terminated at Seller's option by written notice from Seller to Purchaser. All of the contingencies set forth in this Section are specifically stated and agreed to be for the sole and exclusive benefit of the Seller, and only Seller shall have the right to unilaterally waive any contingency by written notice to the Purchaser: 14.1 Access Easement. Seller will need access to public parking over the Property for tenants of the property that Seller will be retaining. Thus, a contingency of this Agreement is execution by Purchaser at Closing of a permanent access easement, substantially in the form attached hereto as Exhibit "C ", over the Property to serve the following property owned by Seller. 14.2 Parking Certification. Documentation from the City of Lakeville that the parking area remainining in Seller's ownership together with public parking is adequate to serve the current and future uses authorized under the City's zoning ordinance operating within the building owned by Seller that is served by the parking areas. 5 15.0 Access to Property. Seller shall allow Purchaser and its agents access to the Property for an inspection thereof. Purchaser may conduct soil tests, soil borings and other tests of the Property. As a condition of such entry, Purchaser indemnifies and saves Seller harmless from and against any liability (including liability for bodily injury, death and reasonable attorneys' fees) and any mechanic lien attaching to the Property as a result of the work performed in making any such inspection. Purchaser shall further repair and restore any damage to the Property caused by or occurring during Purchaser's testing and return the Property to substantially the same condition as existed prior to such entry. 16.0 Default. If either party shall default in any of their respective obligations under this Agreement, the other party, by notice to such defaulting party specifying the nature of the default and the date on which this Agreement shall terminate (which date shall not be less than seven (7) days after the giving of such notice), may terminate this Agreement, and upon such date, unless the default so specified shall have been cured, this Agreement shall terminate. In the case of any default by the Purchaser, Seller's sole and exclusive remedy shall be termination of this Agreement as provided above. 17.0 Brokerage. Seller and Purchaser represent that they have not contracted with a broker, sales agent or similar party in connection with this transaction. Each party agrees to indemnify and hold the other harmless of any claim made by a broker or sales agent or similar party for a commission due or alleged to be due on this transaction on the basis of an agreement with said broker made by the indemnifying party. The parties' obligations set forth in this paragraph shall survive termination of this Agreement. 167844v8 18.0 "As is" Purchase. 18.1 Except as specifically set forth in this Agreement or any document contemplated hereby, (i) the Property is being sold, conveyed, assigned, transferred and delivered "as is, where is" on the date hereof and in its condition on the date hereof, "with all faults," and Seller is not making, and expressly disclaims, any other representation or warranties written or oral, statutory, express or implied, concerning the Property, including but not limited to, representations or warranties relating to value or quality of the Property or the prospects, financial or otherwise, risks or other incidents of the Property or with respect to this Agreement or the transactions contemplated hereby or thereby, and (ii) Seller specifically disclaims any representation or warranty of merchantability, usage, suitability or fitness for any particular purpose with respect to the Property or any part thereof, or as to the workmanship thereof, or the absence of any defects therein, whether latent or patent. 18.2 Purchaser acknowledges that the provision of this Section is a material part of the consideration to be received by Seller under this Agreement, and that Seller has agreed to the Purchase Price by reason of such understanding. This representation by Purchaser shall survive Closing. 6 19.0 Right of First Refusal. In the event Purchaser elects to sell the Property to a third party, other than a governmental agency for continued use of the Property as a public parking lot, Purchaser shall extend to Seller the right of first refusal, which right shall exist until December 31, 2032. Seller shall have sixty (60) days following written notice by Purchaser to the Seller of the terms of of the offer, to notify Purchaser that the terms are acceptable to Seller and that the Seller exercises its right of first refusal. This right of first refusal is a personal right of Seller so long as Seller continues to own the property legally described in the attached Exhibit "D" (Additional Seller's Parcel ") and shall not run with the land. The terms of this provisions shall be incorporated in the Limited Warranty Deed and shall survive the Closing. 167844v8 20.0 Miscellaneous. The following general provisions govern this Agreement: 20.1 Time is of the Essence. The Date of Closing is of the absolute essence. 20.2 Governing Law. This Agreement is made and executed under and in all respects is to be governed and construed under the laws of the State of Minnesota. 20.3 Notices. Any notice required to be given to Seller or Purchaser pursuant to this Agreement shall be in writing and shall be deemed duly given: (i) on the date of personal delivery; (ii) one day following dispatch by Express Mail or equivalent or (iii) two (2) days following mailing certified or registered mail, postage prepaid, return receipt requested, to the respective addresses of the parties set out below: Seller: With a copy to: Purchaser: City Administrator City of Lakeville Lakeville City Hall 20195 Holyoke Avenue Lakeville, MN 55044 Andrea McDowell Poehler Campbell Knutson, P.A. 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, MN 55121 HMWHC, LLC c/o James Kretsch, Jr. Kretsch & Gust 5151 Edina Industrial Blvd. Suite 650 Minneapolis, MN 55439 20.4 Purchaser's Waiver Rights. Purchaser may, at Purchaser's option, waive any right conferred upon the Purchaser by this Agreement. 7 167844v8 20.5 Amendment. This Agreement shall be amended only by a written instrument signed by Seller and Purchaser. 20.6 Construction. The captions and headings of the various sections of this Agreement are for convenience only and are not to be construed as defining or as limiting in any way the scope or intent of the provisions hereof. Wherever the context requires or permits, the singular shall include the plural, the plural shall include singular, and the masculine, feminine and neuter shall be freely interchangeable. 20.7 Entire Agreement. This Agreement sets forth the entire understanding of the parties and may be amended, modified or terminated only by an instrument signed by the parties. 20.8 Counterparts. For the convenience of the parties, any number of counterparts hereof may be executed and each such executed counterpart shall be deemed an original, but all such counterparts together shall constitute one in the same Agreement. 20.9 Survival. The terms, covenants, conditions and obligations of the Seller and Purchaser shall survive the Closing under this Agreement. The parties have executed this Agreement as of the day and year set forth above. [Signature pages to follow] 8 Seller: CITY OF LAKEVILLE By: Mark Bellows, Mayor By: Charlene Friedges, City Clerk 167844v8 9 Purchaser: HMWHC, LLC B z- Its: 16Th44v8 10 EXHIBIT A LEGAL DESCRIPTION SELLER'S PROPERTY Outlot A, Hewitt Investment First Addition, County of Dakota, State of Minnesota, according to the recorded plat thereof. 167844v8 11 EXHIBIT B LEGAL DESCRIPTION OF PROPERTY That part of Outlot A, Hewitt Investment First Addition, County of Dakota State of Minnesota, according to the recorded plat thereof, lying southerly of the north line of Lot 6, Block 1, Wright and Balch's Addition, County of Dakota, State of Minnesota, according to the recorded plat thereof. 167844v8 12 167844v8 EXHIBIT C ACCESS EASEMENT 13 EXHIBIT D LEGAL DESCRIPTION OF ADDITIONAL SELLER'S PARCEL Lot 1, Block 1, Hewitt Investments First Addition, County of Dakota, State of Minnesota, according to the recorded plat thereof. 167844v8 14 ACCESS EASEMENT AGREEMENT THIS ACCESS EASEMENT AGREEMENT ( "Agreement ") is made, executed and entered into this day of , 20_, by and among the CITY OF LAKEVILLE, a Minnesota municipal corporation ( "City "), HMWHC, LLC, a Minnesota limited liability company ( "Grantee ") 167866v.2 RECITALS A. In connection with the execution of this Agreement, the Grantee transferred certain real property to the City in fee title, which property is located in the City of Lakeville, County of Dakota and State of Minnesota, legally described in the attached Exhibit "A" ( "City Property"). B. Grantee is the owner of certain real property located in the City of Lakeville, County of Dakota and State of Minnesota, legally described on Exhibit "B" attached to this Agreement ( "Grantee Property"), which property abuts the City Property. Grantee desires access from the Grantee Property to Howland Avenue over the City Property. AGREEMENT NOW, THEREFORE, in consideration of the foregoing, the covenants and agreements contained herein, and for other valuable consideration, the City hereby declares that Parcel B shall be benefited by and Parcel A shall be subject to, the following appurtenant easement, rights, covenants and conditions, which shall run with the respective Parcel A and Parcel B and inure to the benefit of and be binding upon the City and the Grantee and their respective successors and assigns. 1. Grant of Easement. The City hereby grants, transfers and conveys to the Grantee for the benefit of Parcel B, an appurtenant perpetual, non - exclusive driveway easement for vehicular and pedestrian ingress and egress purposes over and across those portions of Parcel A which are now or hereafter improved or reasonably determined by the City to be necessary to be improved with driveways or sidewalks for access by vehicles and pedestrians to and from public streets and driveways to Parcel B ( "Access Easement "). Grantee shall have no rights to use of any other portion of Parcel B, except only those rights specifically granted herein. 2. Use of Access Easement. The Access Easement shall be used by Grantee solely for vehicular and pedestrian ingress and egress purposes by and for Grantee, its respective invitees, licensees, tenants, lessees, customers, patrons, employees, servants, and visitors. The parties acknowledge that the Access Easement has been constructed prior to the date of this Agreement and may be reconstructed by the City in the future. No other right to use any other portion of Parcel A is granted hereunder. 3. Care of Easement Area. The City shall be responsible for all costs and expenses for improvement, repairs, maintenance, snow removal, cleaning and replacements as may be necessary from time to time to maintain the driveway currently located on the Easement Area, in good, clean and safe condition, at the City's sole cost and expense. 4. Minimum Interference. Grantee shall always exercise its use of the easement and rights hereunder, reasonably and in such a manner as to cause the least possible interference under the then circumstances with the use and enjoyment by the other parties and persons who have the right to use, or are subject to, such easements. 5. Notices. Any notice to be given by either party to this Agreement shall be given in writing and delivered in person, by overnight courier, by facsimile (with a copy sent by regular mail) or by registered mail, postage prepaid, return receipt requested, addressed as follows: City: With a copy to: Grantee: Such notices, if delivered personally or be overnight courier service, shall be deemed given at the time of delivery; if sent by registered or certified mail, shall be deemed given three (3) days after the time of mailing (or such later date as evidenced by the receipt indicating delivery). Any party may 167866 2 City Administrator City of Lakeville Lakeville City Hall 20195 Holyoke Avenue Lakeville, MN 55044 Andrea McDowell Poehler Campbell Knutson, P.A. 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, MN 55121 HMWHC, LLC c/o James Kretsch, Jr. Kretsch & Gust 5151 Edina Industrial Blvd. Suite 650 Minneapolis, MN 55439 provide a change to the address set forth in this Section by a writing sent pursuant to the terms and conditions of this Section. 6. Costs. City shall pay all recording fees in connection with the recording of this Easement. 7. Construction. The rule of strict construction does not apply to this Agreement. This Agreement shall be given a reasonable construction so that the intention of the parties to convey a commercially usable right of enjoyment is carried out. 8. Governing Law. This Agreement is governed by the laws of the State of Minnesota. 9. Amendments. The parties hereto acknowledge and agree that this Easement shall not be modified or amended without the written approval of both parties to this Agreement. 10. The Running of Benefits and Burdens. All provisions of this Agreement, including the benefits and burdens, run with the land and are binding upon and shall inure to the benefit of the assigns, licensees, invitees, successors, tenants and employees of the parties to this Agreement. IN WITNESS WHEREOF, the parties have hereunto set their hands as of the day and year first above written. CITY OF LAKEVILLE By: , Mayor By: , City Clerk STATE OF MINNESOTA ) COUNTY OF DAKOTA ) ss The foregoing instrument was acknowledged before me this day of , 20, by and , the Mayor and City Clerk, respectively of the City of Lakeville a Minnesota municipal corporation, on behalf of the corporation. 167866 3 Notary Public HMWHC, LLC By: Its: STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 20, by , the of HMWHC, LLC, a Minnesota limited liability company, on its behalf. THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNUTSON, P.A. 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 Telephone: (651) 452 -5000 [AMP] 167866 4 Notary Public EXHIBIT "A" Parcel A - Legal Description That part of Outlot A, Hewitt Investment First Addition, County of Dakota State of Minnesota, according to the recorded plat thereof, lying southerly of the north line of Lot 6, Block 1, Wright and Balch's Addition, County of Dakota, State of Minnesota, according to the recorded plat thereof. 167866 5 EXHIBIT `B" Parcel B - Legal Description That part of Outlot A, Hewitt Investment First Addition, County of Dakota State of Minnesota, according to the recorded plat thereof, lying northerly of the north line of Lot 6, Block 1, Wright and Balch's Addition, County of Dakota, State of Minnesota, according to the recorded plat thereof. AND Lot 1, Block 1, Hewitt Investments First Addition, County of Dakota, State of Minnesota, according to the recorded plat thereof 167866 6