HomeMy WebLinkAboutItem 06.rJanuary 19, 2016 Item No.________
Property Purchase Agreement Amendment
Proposed Action
Staff recommends adoption of the following motion: Move to approve a purchase agreement
amendment with George Warweg for 5.99 acres.
Passage of this motion will result in the City agreeing to an amended purchase agreement with a
closing date of no later than March 31, 2016.
Overview
City Council approved the original purchase agreement with Mr. Warweg in March of 2015 for the
purchase of 5.99 acres of land including two single family homes for the future expansion of Antlers
Park. The purchase agreement included a closing date of November 30, 2015, conditioned on Mr.
Warweg replatting the remainder of his property into outlots and for the second home, which Mr.
Warweg used as a rental property, to be vacant prior to closing.
In November, Reid Hansen, Mr. Warweg’s attorney, requested to amend the closing date from
November 30, 2015 to January 29, 2016 to provide additional time for the property owner to obtain the
necessary plat approvals and to insure the tenant in the rental property had vacated the home. The City
Council approved the requested amendment at their November 16, 2015 meeting.
The current tenant was given the notice to vacate the property by Mr. Warweg’s attorney on January 5,
2016. The process to vacate a tenant is regulated by State Statutes which provides the tenant with the
opportunity to appeal the vacation notice. Due to the late notice to the tenant to vacate the property,
the deadline for the tenant to appeal the vacation will be after the January 29th closing deadline.
Therefore, to accommodate the vacation notice and the appeal process, staff is recommending the
closing date in the purchase agreement be revised again from January 29th to no later than March 31st.
Primary Issues to Consider
What if the tenant appeals the vacation of the property?
• The closing may not occur because seller would be unable to meet the terms of the purchase
agreement, unless the appeal was resolved prior to the proposed March 31st closing date. A new
extension would most likely be required to address the time-frame for the appeal to run its course.
Supporting Information
• Second Amendment to the Purchase Agreement
______________________________________________
Allyn G. Kuennen, Assistant City Administrator
Financial Impact: $________ Budgeted: Y/N ___ Source: __________________________________________
Related Documents (CIP, ERP, etc.): ____________________________________________________________
Notes: _________________________________________________________________________________
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SECOND AMENDMENT
TO
PURCHASE AGREEMENT
THIS AMENDMENT TO PURCHASE AGREEMENT (“Second Amendment”) is
dated as of January 19, 2016, between CITY OF LAKEVILLE, a Minnesota municipal
corporation ("City"), and GEORGE W. WARWEG, a single person ("Seller").
WHEREAS, the City and Seller entered into a purchase agreement dated March 2, 2015 as
amended by an amendment dated November 16, 2015 (collectively, the “Purchase Agreement”);
WHEREAS, the parties desire to update the Purchase Agreement concerning existing
tenants and extend the closing of the Purchase Agreement;
IN CONSIDERATION of the mutual covenants and agreements herein, the Purchase
Agreement between the City and Seller, is hereby amended as follows:
1. Amendment to Paragraph 17. Paragraph 17(A)(1) of the Purchase Agreement is
hereby amended to read as follows:
1. Except as otherwise provided under this Agreement, Seller has or as of the Date of
Closing will have marketable and insurable title to the Property of record, free and
clear of all liens, encumbrances, leases, claims and charges, all material easements,
rights-of-way, covenants, conditions and restrictions and any other matters affecting
the title, except for Permitted Exceptions.
2. Amendment to Paragraph 19. Paragraph 19 of the Purchase Agreement is hereby
amended to read as follows:
19. CLOSING. The closing (the "Closing") of the purchase and sale contemplated by
this Agreement shall occur on or before March 31, 2016 and simultaneously with the delivery of
the fully executed Warweg Plat at a location designated by City at a mutually agreeable time
(“Closing Date”). At Closing, Seller and City shall disclose their Social Security Numbers or
Federal Tax Identification Numbers for the purposes of completing state and federal tax forms.
3. Counterparts. This Second Amendment may be executed in any number of
counterparts or by facsimile, each of which will be deemed to be an original, but all of which,
when taken together, constitute the same instrument.
4. Effect of Purchase Agreement. Except as provided herein, all terms and provisions
of the Purchase Agreement shall remain in full force and effect.
Seller and City have executed this Second Amendment as of the date first written above.
[signature pages to follow]
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CITY:
CITY OF LAKEVILLE
By:____________________________ Dated: January 19, 2016
Matt Little, Mayor
And:___________________________
Charlene Friedges, City Clerk
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SELLER:
By:____________________________ Dated:______________, 2016
George W. Warweg