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HomeMy WebLinkAboutItem 06.rMarch 7, 2016 I 0 Item No. Property Purchase Agreement Amendment Proposed Action Staff recommends adoption of the following motion: Move to approve a purchase agreement amendment with KRB Development IV, LLC forthe sale of 1q acres of city owned property. Passage of this motion will result in the City and KRB Development IV, LLC agreeing to amend the purchase agreement to revise the closing date from March 31, 2oi6 to no later than May 31, 2016. Overview City Council approved the original purchase agreement with KRB Development IV, LLC in October of 2015 for the sale of 19 acres of city owned property located on the west side of Dodd Boulevard and north of 183rd Street. The purchase agreement indicated KRB Development was to obtain preliminary and final plat approval prior to closing on or before March 31, 2016. KRB's development team and city staff have been working together in moving the preliminary and final plat through the development review process to obtain the necessary approvals from Planning Commission and City Council. The preliminary plat is scheduled for consideration by the Planning Commission at their March 17 meeting and for City Council consideration at their March 21 meeting. The next step after preliminary plat approval is the preparation of the final plat and City Council consideration of the final plat at a meeting in April or May. Primary Issues to Consider ! Why is an amendment to the closing date needed? KRB Development IV, LLC has requested more time to prepare the final plat plans and to obtain final approvals from the City prior to closing on the property. Supporting Information • Amendment to the Purchase Agreement lyn 6 Kuennen, Assistant City Administrator Financial Impact: $ n/a Budgeted: Y/N n/a Source: n/a Related Documents (CIP, ERP, etc.): n/a Notes: AMENDMENT TO VACANT LAND PURCHASE AGREEMENT THIS AGREEMENT is made on the day of , 2016, by and between the CITY OF LAKEVILLE, a Minnesota municipal corporation, 20195 Holyoke Avenue, Lakeville, MN 55044 ("Seller"), and KRB DEVELOPMENT IV, LLC, a Minnesota limited liability company, 14750 Cedar Avenue South, Apple Valley, Minnesota, 55124 ("Buyer") RECITALS WHEREAS, Seller and Buyer entered into a purchase agreement dated October 28, 2015 ("Purchase Agreement") for the conveyance of real property located in the City of Lakeville, Dakota County, Minnesota and legally described in Exhibit A hereto ("Property"); WHEREAS, the parties desire to extend the date for closing on the Purchase Agreement to allow sufficient time for Buyer to obtain final plat approval for the Property, a contingency item for closing; NOW, THEREFORE, in consideration of the covenants and undertakings contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Buyer and Seller agree as follows: 1. Incorporated. The above Recitals are hereby incorporated as a material part of this Amendment with the same force and effect as if restated in full in this Paragraph. 2. Amendment to Paragraph 17. The first paragraph of Paragraph 17 of the Purchase Agreement is amended to read as follows: 17. CLOSING. The closing (the "Closing") of the purchase and sale contemplated by this Agreement shall occur at a location designated by Buyer, and shall occur on or before May 31, 2016 and simultaneous with the filing of Buyer's plat of the Property as provided under Paragraph 20(B)(2). At closing, Seller and Buyer shall disclose their Social Security Numbers or Federal Tax Identification Numbers for the purposes of completing state and federal tax forms. 3. Except as provided herein, all terms and provisions of the Purchase Agreement shall remain in full force and effect. 18593802 The City agrees to sell the Property for the price and terms and conditions set forth above. SELLER: CITY OF LAKEVILLE Dated: 2016 Matt Little, Its Mayor And: Charlene Friedges, Its City Clerk 185938v12 The Buyer agrees to buy the Property for the price and terns and conditions set forth above. o MA m 185938x12 Dated- - 2016 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY: Outlot D, King Creek Greenway Addition, Dakota County, Minnesota, according to the recorded plat thereof, and Outlot B, King Creek Greenway Addition, Dakota County, Minnesota, according to the recorded plat thereof, except that part described as follows: Commencing at the northeast corner of said Outlot B; thence South 24 degrees 36 minutes 41 seconds East, assumed bearing along the easterly line of said Outlot B, a distance of 49.40 feet to the point of beginning of the land to be described; thence continuing South 24 degrees 36 minutes 41 seconds East, along said easterly line, a distance of 318.13 feet; thence South 73 degrees 01 minute 49 seconds West a distance of 21.13 feet; thence North 16 degrees 58 minutes 11 seconds West a distance of 130.00 feet; thence South 73 degrees 01 minute 49 seconds West a distance of 39.1.3 feet; thence North 16 degrees 58 minutes 11 seconds West a distance of 60.00 feet; thence North 08 degrees 48 minutes 47 seconds West a distance of 126.59 feet to the point of beginning. 18593802