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HomeMy WebLinkAboutItem 06.lLakeville December 31, 2014 Item No. DOUBLE E CROSSINGS 4"' ADDITION DEVELOPMENT CONTRACT ASSIGNMENT JANUARY 5, 2015 CITY COUNCIL MEETING Proposed Action Staff recommends adoption of the following motion: Move to approve the development contract assignment for Double E Crossings 4th Addition from Malocclusion Lakeville LLC to Children Dental Properties LLC. Adoption of this motion will authorize the transfer of the development contract and the development of the Double E Crossings 4th Addition Subdivision from Malocclusion Lakeville LLC to Children's Dental Properties LLC.. Overview On August 5, 2013, the City Council approved the final plat of a one lot commercial development subdivision and a development contract for Double E Crossings 4th Addition located on the west side of Cedar Avenue south of Dodd Blvd. An office building was substantially constructed on this lot for Cosmopolitan Orthodontics but has not been occupied. The original developer now has an agreement to sell the property to Children's Dental Care LLC which currently leases space across Cedar Avenue in the Crossroads Shopping Center. Primary Issues to Consider Is the Double E Crossings 4th Addition development contract assignment in compliance with the approved Double E Crossings 4th Addition final plat? The assignment will notolter the approved final plat. Children's Dental Care LLC will be responsible for carrying out the terms of the Double E Crossings 4th Addition development contract and developing the site consistent with the final plat plans approved by the City Council. Supporting Information • Request to assign development contract to Children's Dental Care LLC. • Signed development contract assignment • Double E Crossings 4th Additi David L. Olson, Community and Economic Development Director Financial Impact: $ None Budgeted: Y/N Source: Related Documents (CIP, ERP, etc.): Zoning and Subdivision Ordinances December 12, 2014 Mr. David Olson Community & Economic Development Director City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 RE: Property at 17677 Cedar Avenue, Lakeville, Minnesota Dear Mr. Olson: This letter is to request that action of the City Council be taken to consent and effect the assignment of the Development Contract of Double E Crossings 0 Addition dated July 23, 2013 for the property at 17677 Cedar Avenue, Lakeville, Minnesota (PIN 22-212228-01-010) as proves below. We are requesting that the Development Contract be assigned by Malocclusion Lakeville, LLC to Children's Dental Properties LLC, a Minnesota limited liability company, which is owned equally by the two principals of Children's Dental Care, PLLC, 17510 Dodd Boulevard, Lakeville, MN, Brent Kvittem, DDS and Amy J. Kebriaei, DDS. Children's Dental Care, PLLC is also owned equally by Brent Kvittem, DDS and Amy J. Kebriaei, DDS. Children's Dental Care, PLLC has a pending purchase agreement for the Property that will be assigned to Children's Dental Properties LLC prior to closing. The anticipated closing date is January 19, 2015. We understand that this Assignment needs Lakeville City Council action and approval. Please commence the process or approval for this Assignment. We have attached a copy of the title insurance commitment of First American Title Insurance Company, with an effective date of November 16, 2014, bearing file number LT 514047. This Letter of Request is jointly proposed by Malocclusion Lakeville, LLC, the current owner of the Property, by Children's Dental Care, PLLC, the proposed purchaser of the Property and by Children's Dental Properties LLC. This Letter of Request may be signed in two or more counterparts, each of which shall be considered an original document and all taken together being one and the same document. We also understand that a fee of $300.00 shall accompany this Letter of Request. This Letter of Request for City Council action is understood and accepted by both parties. Mr. David Olson December 12, 2014 Page 2 In Testimony whereof the Parties have executed this Letter as of the date set forth below. Malocclu, , Lakeville, LLC BY...__� ...---- '' Eisenhuth Its: Chief Manager Dated: DecemberZ 2014 Children's Dental Care, PLLC By. Brent Kvittem Its: Dated: December , 2014 Children's Dental Properties LLC By. Brent Kvittem - Its• - Dated: December , 2014 Mr. David Olson December 12, 2014 Page 2 In Testimony whereof the Parties have executed this Letter as of the date set forth below. Malocclusion Lakeville, LLC M. Peter Eisenhuth Its: Chief Manager Dated: December , 2014 Children's Dental Care, PLLC By: Brent Kvittem Its: C=�c�YG�Q%Zr Dated: December IqLl 2014 Children's Dental roperties LLC By: Brent Kvittem Its: w} Dated: December IL, 2014 (reserved for recording information) ASSIGNMENT OF DEVELOPMENT AGREEMENT AGREEMENT dated , 20, by, between, and among the CITY OF LAKEVILLE, a Minnesota municipal corporation ("City"); MALOCCLUSION LAKEVILLE, LLC, a Minnesota limited liability company, formerly known as NITI LAKEVILLE, LLC and also known as NITI, LLC ("Developer"); and CHILDREN'S DENTAL PROPERTIES LLC, a Minnesota limited liability company, 17510 Dodd Boulevard, Lakeville, Minnesota 55044 ("Successor Developer"). RECITALS A. The City and Developer entered into a Development Contract dated July 23, 2013 and filed for record with the Dakota County Recorder on August 27, 2013, as Document No. 2972452 concerning the plat of DOUBLE E CROSSINGS 4TH ADDITION (the "Development Contract"). B. The Developer has asked the City to approve the assignment of its rights and obligations under the Development Contract to the Successor Developer. C. Paragraph 32.K. of the Development Contract authorizes the City to approve the assignment of the Development Contract. NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS THE PARTIES AGREE AS FOLLOWS: 1. ASSIGNMENT. The Developer's rights and obligations under the Development Contract are assigned to the Successor Developer subject to the terms, covenants and conditions of this Assignment. The Successor Developer accepts the assignment and agrees to be bound by its terms and assumes all of the obligations of the Developer under the Development Contract dated July 23, 2013. 179720v1 2. EFFECTIVE DATE OF ASSIGNMENT. This Assignment shall be effective when the Successor Developer furnishes the City any and all security required by the Development Contract. 3. BINDING EFFECT/RECORDING. This Assignment may be recorded against the title to the land described in Exhibit "A" of the Development Contract and is binding upon the parties, their successors, heirs, and assigns. [The remainder of this page has been intentionally left blank. Signature pages follow.] 2 179720vi CITY OF LAKEVILLE M. .0 STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) Matt Little, Mayor Charlene Friedges, City Clerk The foregoing instrument was acknowledged before me this day of , 20 , by Matt Little and by Charlene Friedges, the Mayor and City Clerk of the City of Lakeville, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. NOTARY PUBLIC 17972ovi 01/01/2015 15:01 FAX 2187394814 INTERSTATE ENG INC 2004/005 Developer: MALOCCLUSION LAKEVILLF, LLC y: t J 'meter Eisenhuth, Its Chief Manager STATE OF MINNESOTA. ) COUNTY OF ) The foregoing, instrument was acknowledged before me this 1-47- day of J�&4 , 2Q_IL by Peter Eisenhuth the Chief Manager of Malocclusion Lakeville, LLC, a Minnesota limited liability company, formerly known as NiTi Lakeville, LLC and also known as NiTi, LLC, on behalf of said limited liability company. �� , NOTARYPUBLIC j 179720v1 Successor Developer: CHILDREN'S DENTAL PROPERTIES LLC By: Its Chief Manager STATE OF MINNESOTA ) )ss. COUNTY OFO�oit., ) The foregoing instrument was acknowledged before me this 31 day of Qe-C-,0,ba-r , 20_1�A_, by I�Z _ %\vAfi-V f-, the Chief Manager of Children's Dental Properties LLC, a Minnesota limited liability company, on behalf of said limited liability company. DRAFTED BY: CAMPBELL KNUTSON, P.A. 1380 Corporate Center Curve, #317 Eagan, Minnesota 55121 Telephone: 651-452-5000 RNK/cjh 1797200 ✓,.�JII-lull./-�lll1� IlI-./II!-/l I Nt C— 0l SE I/6 ' S. 9. Tp III, 9ng 20 Frond Dokob C-ty C.EI(--' -i to O--T---}-------�� �{ zgO I a> I /� 'A„1 � I ['rJ\vlLil ,/'Lill ili , r'/'i(`v' II I '� `\`� •�� I r\ c.. 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