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HomeMy WebLinkAbout18-118CITY OF LAKEVILLE DAKOTA COUNTY, MINNESOTA RESOLUTION NO. 18-118 RESOLUTION APPROVING AN AMENDMENT TO AN AGREEMENT FOR THE ACQUISITION OF REAL PROPERTY WHEREAS, the City Council previously approved a Purchase Agreement to acquire certain property ("Property") between the City of Lakeville ("Buyer") and Timothy R. Pope and Sandra B. Pope ("Sellers"); WHEREAS, Buyer and Sellers propose to amend the previously approved agreement to change the closing date to no later than November 6, 2018 and agree to a new Rent Back Agreement attached as Exhibit "B" to allow the Sellers to rent back the Property from the Buyer until November 30, 2018. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville: 1. The Mayor, City Administrator, and City Clerk are authorized and directed to execute all documents, and take all appropriate measures to convey the Property under the terms of the Purchase Agreement as amended. ADOPTED this 15th day of October 2018 by the City Council of the City of Lakeville CITY OF LAKEVILLE .s Douglas P. Anderson, Mayor ATTEST: Charlene Friedges, City Cl 1990041 AMENDMENTTO PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORS°, which disclaims any liability arising out of use or misuse of this form. © 2006 Minnesota Association of REALTORS°, Edina, MN 1. Date October 15, 2018 2. The undersigned parties to a Purchase Agreement, dated August 6- 2018 , pertaining to 3. the purchase and sale of the property at 16715 Flagetnff Avenue, I akeuille, MN 515468 4. 5. hereby mutually agree to amend said Purchase Agreement as follows: 6. -Line 45 of the Purchase Agreement is hereby amended to read "The date of closing shall be on or before November 6, 2018." 7. -Line 462 is amended to read as follows: The Seller is eligible for relocation replacement housing payment differential up to $29,900.00 based upon 8. the comparable replacement home located at 17720 Fortune Trail in Lakeville, MN. If the Seller closes on the replacement home on or before the date 9, of closing contemplated under this Purchase Agreement, the payment will be made at closing If the closing on the replacement home occurs 10. after the date of closing contemplated under this Purchase Agreement, the paymnt will be placed in escrow with the Title Company tobe an id upon the 11. closing of the replacement home, pursuant to an escrow agreement in a form approved by the parties. 12. -Exhibit A to the Purchase Agreement is amended and restated in its entirety as provided in the Rent Back Agreement attached hereto as Exhibit A. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. All other terms and condAons _Qf4he Purchase Agreement to remain the same. CITY OF LAKEVILLE IC 31. (Seller) thy R. P pe ate} (Bu r)flvugwCp. Anderson, M yor (Date) 32. (Seller) Sandra B. Pope (Date) (Buyer) Charlene Friedges, City Clerk ' (Date, 33. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYERS AND LERS. 34. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MN -AMD (8/06) M I N N E s 0 T A REALTORS InstanetFORMS "Exhibit B" to Purchase Agreement Rent Back Agreement Date: This Rent Back Agreement dated , 2018, ("Agreement"} is entered into in connection with the Purchase Agreement between Tunothy R. Pope and Sandra B. Pope ("Sellers"}, and the City of Lakeville, a Minnesota municipal corporation, ("Buyer"), dated August 6, 2018, as amended by a First Amendment to Purchase Agreement dated , 2018 (collectively referred to herein as the "Purchase Agreement') for the sale and purchase of the property at 16715 Flagstaff Avenue, Lakeville, MN 55068 (the "Property"). The Buyer and Sellers agree as follows: 1. NATURE AND PURPOSE: This Agreement gives Sellers the right to remain in and occupy the Property for a limited time after closing on the purchase of the Property. This Agreement remains in effect after the closing. 2. DATE OF POSSESSION: Sellers agree to completely vacate and deliver exclusive physical possession of the Property to Buyer on or before November 30.2018 ("Date of Possession"). 3. SECURITY AND DAMAGE DEPOSIT: No security or damage deposit is required. 4. MONTHLY RENT: Sellers will pay Buyer $0.00 per month beginning on the Date of Closing and continuing through the above Date of Possession. 5. UTILITIES: (a) Sellers will continue all utility services in Sellers' name and will be solely and exclusively responsible for the actual cost of all utilities and other building services necessary for the Property, the Buildings and use by Sellers as may be required by law, governmental authority or contract, including, but not limited to: electricity, gas, water, sewer, telephone, internet, security systems, garbage and recycling, landscaping maintenance and snow removal. (b) Interruption of Services. Sellers understand, acknowledge and agree that any one or more of the utilities or other building services identified above may be interrupted by reason of accident, emergency or other causes beyond Buyer's control, or may be discontinued or diminished temporarily by Buyer or other persons until certain repairs, alterations or improvements can be made; that Buyer does not represent or warrant the uninterrupted availability of such utilities or building services; and that any such interruption shall not be deemed an eviction or disturbance of Sellers' right to possession, occupancy and use of the Property or any part thereof, or render Buyer liable to Sellers in damages by abatement of rent or otherwise, or relieve Sellers from the obligation to perform the covenants under this Agreement. 1994741 6. INSURANCE: Sellers, at their own expense, shall purchase and continue in force, in the names of Sellers and Buyer, general liability insurance against any and all claims for injuries to persons or damage to property occurring in, upon or about the Property during the term of this Agreement, such insurance to be in an amount not less than $1 million (combined single limit personal injury and property damage). The insurance shall be written in a company authorized to engage in the business of general liability insurance in the State of Minnesota, and there shall be delivered to Buyer customary certificates evidencing such paid- up insurance, which certificates are to be issued by the insurance company and which certificates shall further provide that the general liability insurance may not be cancelled unless Buyer is notified in writing at least thirty (3 0) days prior to any such proposed cancellation. 7. MAINTENANCE: Sellers, at their sole cost and expense, will be responsible for all repairs and normal maintenance of the Buildings and Property. Sellers will keep the Property in reasonable repair and order. S. USE OF PROPERTY: The Property shall be occupied and used exclusively for the uses as they exist on the date of this Agreement and related services incidental thereto, and shall not be used for any other purpose, without written permission of the Buyer. (a) Covenants Regarding Use. In connection with its use of the Property, Sellers agree to do the following: (i) Sellers shall use the Property in a safe, careful, reputable and lawful manner; shall keep and maintain the Property in as good a condition as they were on the date of this Agreement, ordinary wear and tear excepted, and shall make all necessary repairs to the Property other than those which Buyer is obligated to make as provided elsewhere herein. (ii) Sellers shall not commit, nor allow to be committed, in, on or about the Property any act of waste, or use or permit to be used on the Property any hazardous substance, equipment or other thing which might cause injury to person or property or increase the danger of fire or other casualty in, on or about the Property; permit any objectionable or offensive noise or odors to be emitted from the Property; or do anything, or permit anything to be done, which would, in Buyer's opinion, disturb or tend to disturb the owners or tenants of any adjacent buildings. (iii) Sellers shall not use the Property, nor allow the Property to be used, for any purpose or in any manner which would, in Buyer's opinion, invalidate any policy of insurance now or hereafter carried on the Property or increase the rate of premiums payable on any such insurance policy. (b) Compliance with Laws. Sellers shall not use or permit the use of any part of the Property for any purpose prohibited by law. 2 I M74A 9. LIENS: Sellers shall not cause or allow any mechanic's lien or other lien to be filed against the Property or against other property of Buyer (whether or not such lien is valid or enforceable as such). In the event any mechanic's lien shall at any time be filed against the Property or any part of the Property by reason of work, labor, services or materials performed or furnished to Sellers or to anyone holding the Properly through or under Sellers, Sellers shall forthwith cause the same to be discharged of record. If Sellers shall fail to cause such lien forthwith to be discharged within five (5) days after being notified of the filing thereof, then, in addition to any other right or remedy of Buyer, Buyer may, but shall not be obligated to, discharge the same by paying the amount claimed to be due, or by bonding, and the amount so paid by Buyer and all costs and expenses, including reasonable attorneys' fees incurred by Buyer in procuring the discharge of such lien, shall be due and payable in full by Sellers to Buyer on demand. 10. ASSIGNMENT AND SUBLETTING: Sellers may not assign or otherwise transfer their interest in this Agreement or sublet the Property or any part thereof. 11. IIV,[PRUVEMENTS: Sellers shall not be permitted and shall not allow others to make any improvements to the Buildings or Property. 12. DEFAULTS AND REMEDIES: Upon the occurrence of any event of default set forth in this Agreement, Buyer shall have the following rights and remedies, in addition to those allowed by law, any one or more of which may be exercised without further notice to or demand upon Sellers: (i) Buyer may re-enter the Property and cure any default of Sellers, in which event Sellers shall reimburse Buyer for any costs and expenses which Buyer may incur to cure such default; and Buyer shall not be liable to Sellers for any loss or damage which Sellers may sustain by reason of Buyer's action, unless caused by Buyer's negligence. (ii) Buyer may terminate this Agreement as of the date of such default, in which event: (A) Neither Sellers nor any person claiming under or through Sellers shall thereafter be entitled to possession of the Property, and Sellers shall immediately thereafter surrender the Property to Buyer; (B) Buyer may re-enter the Property and dispossess Sellers or any other occupants of the Property by summary proceedings, ejectment or otherwise, and may remove their effects, without prejudice to any other remedy which Buyer may have for possession or arrearages in rent; (iii) Buyer may sue for injunctive relief or to recover damages for any loss resulting from the breach. (iv) Sellers are responsible for any charges that have been forgone by the Buyer including, but limited to, prorated property taxes in the year of default and the year following default. (c) Waiver of Covenants. Failure of Buyer to insist, in any one or more instances, upon strict performance of any term, covenant, condition, or option of this Agreement, or to exercise any option herein contained, shall not be construed as a waiver, or a relinquishment for the future, of such term, covenant, condition, or option, but the same shall continue and remain in full force and effect. IM740 (d) Attorney Fees. If Sellers default in the performance or observance of any of the terms, conditions, covenants or obligations contained in this Agreement and Buyer placed the enforcement of all or any part of this Agreement, the collection of any rent due or to become due or the recovery of possession of the Property in the hands of an attorney, or if Buyer incurs any fees or out-of-pocket costs in any litigation, negotiation or transaction in which Sellers causes Buyer (without Buyer's fault) to be involved or concerned, Sellers agree to reimburse Buyer for the attorney's fees and costs incurred thereby, whether or not suit is actually filed. 13. ACCESS TO THE PROPERTY: Buyer, its employees and agents of the Property shall have the right to enter any part of the Property at all reasonable times for the purposes of examining or inspecting the same, and for making such repairs, alteration or improvements to the Property as Buyer may deem necessary or desirable. If representatives of Sellers shall not be present to open and permit such entry into the Property at any time when such entry is necessary or permitted hereunder, Buyer and its employees and agents may enter the Property by means of a master key or otherwise, Buyer shall incur no liability to Sellers, nor shall such entry constitute an eviction of Sellers or a termination of this Agreement. 14. SURRENDER OF PROPERTY: Upon the expiration or earlier termination of this Agreement, Sellers shall surrender the Property to Buyer, together with all keys, access cards, alterations, improvements, and other property as provided elsewhere herein, in broom -clean condition and in good order, condition and repair, except for ordinary wear and tear and damage. Upon such expiration or termination Sellers' fixtures, furniture, equipment, or other personal property shall remain Sellers' property, and if Sellers shall not then be in default under this Agreement, Sellers shall have the right to remove the same prior to the expiration or earlier termination of this Agreement. Any of Sellers' fixtures, furniture, equipment or other personal property not so removed shall be considered abandoned and may be retained by Buyer or be destroyed. 15. HOLDING OVER: No holding over by Sellers shall operate to extend this Agreement except as otherwise expressly provided herein. 16. HOLD HARMOLESS: Buyer shall not be liable for injury or death to any person or damage to property of Sellers or of others located in or about the Property, nor for the loss of or damage to any property of Sellers or of others by theft, casualty, loss or otherwise, and Sellers hereby waive all such claims against Buyer and will hold Buyer exempt and harmless for or on account of such damage, injury or death. Sellers shall also indemnify Buyer and its agents against any and all liability, claims, demands, damages, expenses, fees, fines, penalties, suits, proceedings, actions and costs of actions of any kind and nature, including reasonable attorneys' fees, for injury or death to persons or damage to property or property rights in connection with this Agreement or Sellers' use and occupation of the Property. The provisions of this Section shall survive the expiration or early termination of the Purchase Agreement and/or this Agreement. 17. DESTRUCTION OF RESIDENCE: In the event that the Buildings on the Property are destroyed or otherwise becomes uninhabitable for any reason, this agreement becomes null and void immediately and Buyer has no further responsibility to the Sellers. In the event of habitable repair(s) to the Property during the tenancy, Sellers may elect to be responsible for such habitable repair(s) at Sellers' cost to continue the tenancy or Sellers may elect to terminate the tenancy and vacate the premises immediately. In the event that the Sellers elects not to be responsible for such habitable repair(s) to continue the tenancy or that damages to the Property results in it not being habitable, Sellers agree that the tenancy shall terminate immediately and that Sellers shall vacate the Property immediately. In any event, Buyer shall not incur any obligation to complete any repairs of any kind to the Property during the tenancy. 4 1994741 18. "AS IS": The Buyer makes no warranties or statements with regard to the condition of the Property nor to its suitability for occupancy by the Sellers. The Sellers rent the Property "as is", with all faults. In the event the Property is not suitable during the tenancy for occupancy by Sellers, Sellers agree that the tenancy shall terminate in accordance with preceding section. If Sellers vacate the Property in accordance with the preceding section, they acknowledge it is without any rights and/or any claim, including but not limited to, repair, damages, or costs for the early vacation of the Property. 19. QUIET ENJOYMENT: Buyer promises that upon Sellers' performance of Sellers' obligation herein, Sellers will peacefully and quietly have, hold and enjoy the Property according to this Agreement. 20. TERMINATION: If Sellers fails to leave the Property and give possession to Buyer on the Date of Possession specified above, Buyer will provide Sellers with seven days advance written notice to leave the Property. Notice is considered given on the date mailed to the Sellers at the address of the Property. Sellers will leave the Property in the same condition as it was at the time of closing. If Sellers fails to leave the Property, Buyer is authorized to take any action permitted by law to take possession of the Property. Buyer will be entitled to recover damages from Sellers for Buyer's loss of use in the amount of $300.00 per day beginning with the Date of Possession specified above, in addition to all charges and reimbursements stated in this Agreement, and all reasonable costs which result from obtaining possession of the Property and enforcing the terms of the Agreement, including reasonable attorney's fees. 21. IYIISCELLANEOUS GENERAL PROVISIONS (a) Applicable Law. This Agreement and all matters pertinent thereto shall be construed and enforced in accordance with the laws of the State of Minnesota. (b) Severability. If any provision of this Agreement shall be held to be invalid, void or unenforceable, the remaining provisions hereof shall not be effected or impaired, and such remaining provisions shall remain in full force and effect. (c) No Partnership. Buyer shall not, by virtue of the execution of this Agreement or the leasing of the Property to Sellers, become or be deemed a partner of Sellers in the conduct of Sellers' business on the Property or otherwise. (d) Waiver of Jury. To the extent permitted by law, Sellers and Buyer hereby waive any right either may have to a jury trial in the event of litigation between Sellers and Buyer pertaining to this Agreement. (e) Time of Essence. Time is of the essence of this Agreement and each of its provisions. 1994740 Accepted and Agreed to: BUYER: CITY OF LAKEVILLE By: 9; .15i 0S de &;15j os Dougl - Anderson, Mayor And: Charlene Friedges, City Cler 199474v] 199474v1 October 15, 2018 Item No. AMENDMENT TO THE AGREEMENT FOR THE PURCHASE OF REAL PROPERTY LOCATED AT 16715 FLAGSTAFF AVENUE Proposed Action Staff recommends adoption of the following motion: Adopt a resolution to approve an amendment to the previously approved purchase agreement for the property located at 16715 Flagstaff Avenue. Approval of this amendment will allow the closing on the acquisition of the property located at 16715 Flagstaff Avenue to no later than November 6, 2018 and the rent back of the property to be extended to no later than November 30, 2018. Overview The City Council has approved a Joint Powers Agreement with Dakota County on March 19, 2018 for the construction of a roundabout at the intersection of Dodd Boulevard and Flagstaff Avenue. The agreement calls for the required property acquisition be completed by the City with the County reimbursing the City with their 55% cost share. On September 4, 2018, the City Council approved a purchase agreement for the single-family home located at 16715 Flagstaff Avenue for $280,000. The scheduled closing date in the original purchase agreement was to take place on or before September 27, 2018 and included a rent -back period of 10 days. The property owners have requested that the closing date be extended to no later than November 6, 2018 and that the rent back agreement be extended to November 30" to allow additional time to close on their replacement home and complete the move to this property. The financial terms of the agreement are unchanged. The Popes are also entitled to business relocation and re-establishment expenses for their home-based business and actual moving costs as well as closing costs on their new home under the Uniform Relocation Act. City and County staff recommend approval of this purchase agreement amendment. Primary Issues to Consider • What is the proposed funding source for this acquisition? The project as identified in the adopted 2018-2022 Capital Improvement Plan and is proposed to be financed from the Municipal State Aid Street funds. SuUU�g Information • Signed Purchase Agreement Amendment David L. Olson, Community and Economic Development Director c: Zach Johnson, City Engineer, Brian Sorenson, Asst. County Engineer Financial Impact: $ 280.000 Budgeted: YIN Y Source: MSA and Counter Funds CITY OF LAKEVILLE DAKOTA COUNTY, MINNESOTA RESOLUTION NO. RESOLUTION APPROVING AN AMENDMENT TO AN AGREEMENT FOR THE ACQUISITION OF REAL PROPERTY WHEREAS, the City Council previously approved a Purchase Agreement to acquire certain property ("Property") between the City of Lakeville ("Buyer") and Timothy R. Pope and Sandra B. Pope ("Sellers"); WHEREAS, Buyer and Sellers propose to amend the previously approved agreement to change the closing date to no later than November 6, 2018 and agree to a new Rent Back Agreement attached as Exhibit `B" to allow the Sellers to rent back the Property from the Buyer until November 30, 2018. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville: 1. The Mayor, City Administrator, and City Clerk are authorized and directed to execute all documents, and take all appropriate measures to convey the Property under the terms of the Purchase Agreement as amended. ADOPTED this day of , 2018, by the City Council of the City of Lakeville. CITY OF LAKEVILLE BY: Douglas P. Anderson, Mayor ATTEST: Charlene Friedges, City Clerk 1990041