HomeMy WebLinkAboutItem 06.r
April 6, 2020 Item No.
PURCHASE AGREEMENT WITH DALE AND CYNTHIA DOUDRICK
FOR PROPERTY ADDRESSED AS 20308 ICALEE PATH
Proposed Action Staff recommends adoption of the following motion: Move to approve purchase agreement with Dale and Cynthia Doudrick for property addressed as 20308 Icalee Path.
Overview A few months ago, Dale and Cynthia Doudrick approached the city regarding purchasing their home addressed as 20308 Icalee Path. The property is not connected to city sewer and water and abuts the Lake Marion outlet located on the south side of Icalee Path. Staff reviewed the property and determined the property could be acquired and utilized ideally for either stormwater ponding for the future improvements and expansion of Antlers Park or as a filtration pond for the waters out-letting Lake Marion. The City completed an appraisal of the property and reached an agreement with the Doudrick’s to purchase the property at a cost of $240,000. The Park Dedication and Stormwater Infrastructure Funds will be utilized to purchase the property. The agreement also includes the seller agreeing to no relocation costs and a lease agreement whereby the Doudrick’s can continue to live in the home until September 30, 2020 at no charge.
Primary Issues to Consider
• The property can be used for either stormwater ponding or a filtration pond.
Supporting Information
• Purchase agreement which includes agreement regarding release, payment and assignment of relocation benefits and a lease agreement.
Financial Impact: Budgeted: Y N☐ Source:
Related Documents: (CIP, ERP, etc.):
Envision Lakeville Community Values: Access to a Multitude of Natural Amenities and
Recreational Opportunities
Report Completed by: John Hennen, Parks & Recreation Director
$240,000 Park Dedication and Stormwater Infrastructure Fund
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PURCHASE AGREEMENT
THIS PURCHASE AGREEMENT is effective as of the ____ day of ______________,
2020 (“Effective Date”), by and between the CITY OF LAKEVILLE, a Minnesota municipal
corporation, 20195 Holyoke Avenue, Lakeville, Minnesota, (“Purchaser”), and DALE B.
DOUDRICK AND CYNTHIA G. DOUDRICK, husband and wife, residing at 20308 Icalee
Path, Lakeville, Minnesota 55044 (“Sellers”).
RECITALS:
A. Sellers are the owners in fee simple of the property located at 20308 Icalee Path in the City
of Lakeville, County of Dakota, State of Minnesota and legally described in Exhibit A
attached hereto and made a part hereof, including existing buildings, together with all other
existing improvements located thereon, all appurtenant rights, easements, mineral rights,
and all right, title and interest of Sellers in and to all streets, alleys, strips, and rights-of-
way over or abutting said land, for which Sellers has an interest (the “Property”);
B. The parties agree that Property is not being acquired by Purchaser under threat of
condemnation.
AGREEMENT:
In consideration of the mutual covenants and agreements herein contained and other
valuable consideration, the receipt, and sufficiency of which is hereby acknowledged, the parties
agree as follows:
1. OFFER/ACCEPTANCE. Subject to compliance with the terms, covenants, and
conditions of this Purchase Agreement, Sellers shall convey the Property to the Purchaser.
2. PRICE AND TERMS. The price for the Property included under this Purchase
Agreement is Two Hundred Forty Thousand and No/100 Dollars ($240,000.00) (“Purchase
Price”), which Purchaser shall pay to Sellers in cash or by wire transfer of U.S. Federal Funds at
Closing.
3. DEED/MARKETABLE TITLE. Upon performance by Purchaser, Sellers shall execute
and deliver a Warranty Deed, conveying good and marketable title of record, subject to:
A. Reservations of minerals or mineral rights by the State of Minnesota, if any;
B. Building and zoning laws, ordinances, state and federal regulations; and
C. Any other matters consented to by Purchaser in writing or not timely objected to by
Purchaser.
4. RELOCATION BENEFITS. Sellers are aware of Sellers’ rights and payments that
Sellers may be eligible to receive pursuant to the Uniform Relocation Assistance Act (the “Act”).
Sellers acknowledge that Sellers have been given the opportunity to seek and receive the advice
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of legal counsel with respect to relocation, moving, reestablishment, and other costs, if any, that
may be available under the Act.
Sellers hereby acknowledge that the payment of the Purchase Price does not include a payment for
Relocation Benefits. At Closing, and as a condition precedent to Closing, Sellers will waive any
right to receive any relocation payments pursuant to the Act (or other federal or state law
provisions) with respect to the Property. Sellers acknowledge that Sellers will make such a waiver
of Sellers’ own volition and with full knowledge of the specific relocation benefits to which Sellers
may be entitled.
Sellers and Purchaser agree that this is a voluntary sale by Sellers. Purchaser represents that
Purchaser would not acquire the Property in the event that negotiations between Sellers and
Purchaser had failed to result in an amicable agreement. If the transaction set forth by this
Agreement is not completed, Purchaser has no present intent to acquire the property by eminent
domain and has not considered the use of eminent domain. If this Agreement is terminated for
any reason, Sellers are free to retain ownership of the Property or to sell the Property on the private
market.
As Purchaser and Sellers agree that this is a voluntary sale, state and federal law permit the
Purchaser to request a waiver of relocation benefits from Sellers, as provided under Minn. Stat. §
117.521. Prior to and as a condition of Closing, Sellers will be required to sign a relocation waiver,
the form of which is substantially the same as shown on the attached Exhibit B and the final form
will be subject to the approval of Purchaser (“Relocation Waiver”). If Sellers do not waive
relocation benefits, this Agreement will be terminated and Sellers will be free to retain ownership
of the Property or sell on the private market.
5. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS.
A. Prior Years’ Delinquent Real Estate Taxes and Delinquent Special Assessments.
Delinquent real estate taxes payable in years prior to the year of Closing and delinquent
installments of special assessments certified for collection with real estate taxes payable in
years prior to the year of Closing, together with penalty, interest and costs, shall be paid by
Sellers not later than the Date of Closing.
B. Real Estate Taxes Payable in the Year of Closing. Real estate taxes payable in the year of
Closing shall be prorated between Sellers and Purchaser on a calendar year basis as of
September 30, 2020. Purchaser shall assume installments not paid at Closing. Sellers shall
pay penalty, interest and costs on any delinquent installment of taxes and special
assessments payable by Sellers in the year of Closing.
C. Deferred Real Estate Taxes. Sellers shall pay on Date of Closing or provide for payment
of 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. Provision for payment shall be by payment into escrow of 1.5 times
the estimated payoff amount of the deferred taxes.
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D. Certified Special Assessments. All installments of special assessments certified for
payment with the real estate taxes payable in the year of Closing shall be paid by Sellers at
Closing.
E. All Other Levied Special Assessments. Sellers shall pay on the Date of Closing all other
special assessments levied as of the date of this Purchase Agreement.
6. SELLERS’ BOUNDARY LINE, ACCESS, RESTRICTIONS, AND LIEN
WARRANTIES. Sellers warrant that, to their actual knowledge, buildings on adjoining real
property, if any, are entirely outside of the boundary lines of the Property. Sellers warrant that, to
their actual knowledge, there has been no labor or material furnished to the Property for which
payment has not been made. Sellers warrant that, to its actual knowledge, there are no present
violations of any restrictions relating to the use or improvement of the Property. These warranties
shall survive for a period of ninety (90) days from the delivery of the Deed.
7. ACCESS PRIOR TO CLOSING. Upon reasonable notice to Sellers, Purchaser and
Purchaser’s authorized agents shall have the right during the period from the date of this
Agreement to the Date of Closing to enter in and upon the Property in order to make, at Purchaser’s
expense, surveys, measurements, soil tests, and other tests that Purchaser may deem necessary.
Purchaser agrees to restore any resulting damage to the Property and to indemnify, hold harmless,
and defend Sellers from any and all claims by third persons of any nature whatsoever arising from
Purchaser’s right of entry hereunder, including all actions, proceedings, demands, assessments,
costs, expenses, and attorneys' fees. Purchaser shall not perform any invasive testing of the
Property without Sellers’s prior written consent. Sellers’ consent may be conditioned upon any
restrictions that Sellers deems necessary. Purchaser shall further have the right to inspect the
condition of all appliances i.e. stove, microwave, refrigerator, lights, dishwasher, washing
machine, and dryer, etc. (“Appliances”) as well as the HVAC system, to determine if they are in a
condition satisfactory to Purchaser.
8. POSSESSION. Sellers shall deliver possession of the Property not later than the actual
Date of Closing, subject to that certain lease agreement a copy of which is attached as Exhibit C
to this Agreement and made a part thereof (“Lease”).
9. TITLE INSURANCE. Within thirty (30) 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 thirty (30) 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.
10. TITLE CORRECTIONS AND REMEDIES. Sellers shall have 120 days from receipt
of Purchaser's written title objections to make title marketable. Upon receipt of Purchaser's title
objections, Sellers shall, within ten (10) business days, notify Purchaser of Sellers’ intention to
make title marketable within the 120 day period. Liens or encumbrances for liquidated amounts
which can be released by payment or escrow from proceeds of Closing shall not delay the Closing.
Cure of the defects by Sellers shall be reasonable, diligent, and prompt. Pending correction of
title, all payments required herein and the Closing shall be postponed. Upon correction of title and
within ten (10) days after written notice to Purchaser, the parties shall perform this Agreement
according to its terms. If no such notice is given or if notice is given but title is not corrected
within the time provided for, the Purchaser (at Purchaser's option) shall have the right to: (a)
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terminate this Agreement in which case the parties will have no further rights, duties or obligations
hereunder, except those obligations that expressly survive termination, or (b) accept title to the
Property subject to the objections Sellers has elected not to cure, without reduction in the amount
of the Purchase Price, in which case such objections to title will be deemed to have become
Permitted Exceptions.
11. LIEN FOR MEDICAL ASSISTANCE. Sellers indicate that the Property IS NOT subject
to a lien for Medical Assistance or other public assistance.
12. WELL DISCLOSURE. [Check one of the following:]
Sellers certify that Sellers does not know of any wells on the Property.
X Wells on the Property are disclosed by Sellers on the attached Well Disclosure form.
13. DISCLOSURE OF INDIVIDUAL ON-SITE SEWAGE TREATMENT SYSTEM.
[Check one of the following:]
__ Sellers certify that Sellers do not know of any individual on-site sewage treatment systems
on the Property.
X Individual on-site sewage treatment systems on the Property are disclosed by Sellers on
the attached Disclosure form.
14. PROTECTED HISTORICAL SITES. [Select either one of the following:]
Sellers represent that Sellers do not know if there are historical, Native American,
or archeological materials on or in the Property that might be protected by law.
X To Sellers’ knowledge, the property does not have any American Indian burial
grounds, other human burial grounds, ceremonial earthworks, historical materials, and/or
other archeological sites that are protected by federal or state law. Purchaser’s obligation
to close is contingent upon Purchaser determining to Purchaser’s satisfaction that the
property does not have any American Indian burial grounds, other human burial grounds,
ceremonial earthworks, historical materials, and/or other archeological sites that are
protected by federal or state law.
15. LEAD PAINT DISCLOSURE. [Check one of the following]
Sellers represent that the dwelling was constructed on the real property in 1978 or
later.
X Sellers represent that the dwelling was constructed on the real property before
1978. (If such housing is located on the real property, attached and made a part of this
Purchase Agreement is “LEAD PAINT ADDENDUM FOR HOUSING CONSTRUCTED
BEFORE 1978”.)
16. METHAMPHETAMINE DISCLOSURE STATEMENT.
[Check one of the following:]
X To the best of Sellers’ knowledge, methamphetamine production has not occurred
on the Property.
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____ To the best of Sellers’ knowledge, methamphetamine production has occurred on
the Property and Sellers make the following disclosure:
A county or local health department or sheriff [strike one] has / has not ordered that the
Property or some portion of the Property is prohibited from being occupied or used until it
has been assessed and remediated as provided in the Department of Health’s Clandestine
Drug Labs General Clean-up Guidelines.
If such order or orders have been issued complete the following statement:
The above orders issued against the Property [strike one] have / have not been vacated.
If such order has not been issued, state the status of removal and remediation on the
Property: [Use additional sheets, if necessary.] None.
17. SELLERS’ COVENANTS, REPRESENTATIONS, AND WARRANTIES. Sellers, as
part of the consideration therefore, represent warrant, and covenant with Purchaser and its
successors and assigns that to the best of Sellers’ actual knowledge and without any investigation
or inquiry, as follows:
A. Sellers have 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 the Permitted
Exceptions. Sellers have the present full authority and power to execute this
Agreement and, on or prior to the Date of Closing, Sellers shall have the full
authority and power to close the sale of the Property.
B. To Sellers’ actual knowledge, the conveyance of the Property pursuant hereto will
not violate any applicable statute, ordinance, governmental restriction or regulation,
or any private restriction or agreement.
C. As of the Date of Closing there will be no outstanding or unpaid claims, actions, or
causes of action related to any transaction or obligation entered into or incurred by
Sellers with respect to the Property prior to the date hereof.
D. Except as provided herein, Sellers shall indemnify and defend Purchaser and
otherwise hold Purchaser harmless of, from, and against any broker who may be
entitled to any commission or finder’s fee in connection with the transaction
contemplated herein to the extent arising from Sellers’ actions.
E. Sellers are not foreign persons as defined in §1445(f)(3) of the Internal Revenue
Code or regulations issued thereunder.
F. To Sellers’ actual knowledge, there is no action, litigation, investigation, or other
proceedings of any kind, other than condemnation, pending or threatened against
Sellers with respect to the Property.
G. To Sellers’ actual knowledge: (i) no toxic materials, hazardous wastes or hazardous
substances, as such terms are defined in the Resource Conservation and Recovery
Act of 1996, as amended (42 U.S.C. § 6901, et seq.) or in the Comprehensive
Environmental Response Compensation and Liability Act of 1980, as amended (42
U.S.C. § 9601, et seq.), including, without limitation, any asbestos or asbestos-
related products or materials and any oils, petroleum-derived compounds, or
pesticides ("Hazardous Materials") have been generated, treated, stored, released,
or disposed of or otherwise placed, deposited in, or located on the Property; and (ii)
the Property is free of Hazardous Materials and is not subject to any “superfund”
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type liens or claims by governmental regulatory agencies or third parties arising
from the release or threatened release of hazardous substances in, on, or about the
Property. Sellers shall indemnify and hold Purchaser harmless from any and all
claims, causes of action, damages, losses, or costs (including reasonable lawyer’s
fees) relating to breach of the foregoing representations and warranties by Sellers
or to hazardous substances or petroleum products in the subsoil or ground water of
the Property which arise from or are caused by acts or occurrences upon the
Property prior to Purchaser taking possession. These warranties and
indemnifications shall survive the delivery of the Warranty Deed.
The covenants, representations, and warranties contained in this Section shall be deemed to benefit
Purchaser and its successors and assigns and shall survive any termination or expiration of this
Purchase Agreement or the delivery of the Warranty Deed. All of Sellers’ covenants,
representations, and warranties in this Agreement shall be materially true as of the date hereof and
of the Closing Date, and shall be a condition precedent to the performance of Purchaser's
obligations hereunder. If Purchaser discovers that any such covenant, representation, or warranty
is not true, Purchaser may elect prior to Closing, in addition to any of its other rights and remedies,
to cancel this Agreement, or Purchaser may postpone the Closing Date up to ninety (90) days to
allow time for correction. If Purchaser elects to proceed with the Closing following such
discovery, Purchaser shall be deemed to have waived its rights to assert a claim against Sellers
arising from the inaccuracy or untruthfulness of any such covenant, representation, or warranty.
Sellers indemnifies Purchaser from any breaches of the covenants, warranties, and representations
set forth in this Section.
18. CLOSING. The closing (the "Closing") of the purchase and sale contemplated by this
Agreement shall occur at a location designated by Purchaser, and shall occur no later than 60 days
of the Effective Date (“Closing Date”). At Closing, Sellers and Purchaser shall disclose their
Social Security Numbers or Federal Tax Identification Numbers for the purposes of completing
state and federal tax forms.
19. CLOSING DOCUMENTS.
A. At the Closing, Sellers shall execute and/or deliver to Purchaser the following:
(1) Warranty Deed. A Warranty Deed in recordable form and reasonably
satisfactory to Purchaser.
(2) Sellers’ Affidavit. A standard form affidavit by Sellers indicating that on the
date of Closing there are no outstanding, unsatisfied judgments, tax liens, or
bankruptcies against or involving Sellers or the Property; that there has been no
skill, labor, or material furnished to the Property for which payment has not
been made or for which mechanic's liens could be filed; and that there are no
other unrecorded interests in the Property.
(3) Non-Foreign Person Certification. A certification in form and content
satisfactory to the parties hereto and their counsel, properly executed by Sellers,
containing such information as shall be required by the Internal Revenue Code,
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and the regulations issued there under, in order to establish that Sellers are not
a “foreign person” as defined in § 1445(f)(3) of such Code and such regulations.
(4) Storage Tanks. If required, an affidavit with respect to storage tanks pursuant
to Minn. Stat. § 116.48.
(5) Well Certificate. If there is a well located on the Property, a well disclosure
certificate in form and substance true to form for recording.
(6) Certification. A certification that the representations and/or warranties made
by Sellers is materially the same as were in existence on the date of this
Agreement or noting any changes thereto.
(7) Lease. A fully executed copy of the Lease.
(8) Relocation Waiver. A fully executed copy of the Relocation Waiver.
(9) 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.
B. At the Closing, Purchaser shall execute and/or deliver to Sellers the following:
(1) Purchase Price. Payment of the purchase price.
(2) Lease. A fully executed copy of the Lease.
(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.
20. CLOSING COSTS. The costs relating to the closing of this transaction shall be paid as
follows:
A. Purchaser shall pay:
(1) Recording fee for the Warranty Deed;
(2) The closing fees charged by the Title Company;
(3) Pro-rated taxes; and
(4) All costs for issuance of an owner’s title insurance policy.
B. Sellers shall pay:
(1) All costs for the title commitment;
(2) The state deed tax;
(3) Pro-rated taxes; and
(4) Conservation fee attributable to the Warranty Deed.
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21. ADDITIONAL TERMS.
A. Purchaser’s Contingencies. Purchaser’s obligations under this Agreement are
contingent upon Purchaser’s satisfaction with each of the following (“Purchaser’s
Contingencies”):
(1) The representations and warranties of Sellers set forth in this Agreement
must be true as of the date of this Agreement and on the Closing Date, and Sellers
shall have delivered to Purchaser at Closing a certificate dated the Closing Date,
signed by Sellers, certifying that such representations and warranties are true as of
the Closing Date; and
(2) Purchaser determining on or before the Closing Date, that it is satisfied, in
its sole discretion, with the results of matters disclosed by a Phase I Environmental
Audit or by any additional environmental/engineering investigation or testing of
the Property performed by Purchaser or Purchaser's agent. By executing this
Agreement, Sellers hereby authorize Purchaser to enter upon the Property at
reasonable times to conduct the investigations and/or tests described herein.
Purchaser shall be solely responsible for all environmental tests and shall hold
Sellers harmless from any such costs and shall indemnify Sellers for breach of this
provision including reasonable attorneys' fees.
If the Purchaser’s Contingencies have not been satisfied on or before the Closing Date,
then Purchaser may, at Purchaser’s option, (a) terminate this Agreement in which case the
parties will have no further rights, duties or obligations hereunder, except those obligations
that expressly survive termination, or (b) waive any such unsatisfied contingency, without
reduction in the amount of the Purchase Price, and proceed to Closing. The contingencies
set forth in this section are for the sole and exclusive benefit of Purchaser, and Purchaser
shall have the right to waive the contingencies by giving notice to Sellers.
B. Sellers’ Contingencies. Sellers’ obligations under this Agreement are contingent
upon Sellers’ satisfaction with each of the following (“Sellers’ Contingencies”):
(1) The Purchaser executing the Lease at Closing.
If the Sellers’ Contingencies have not been satisfied on or before the Closing Date, then
Sellers may, at Sellers’ option, extend the Closing Date in order to satisfy the Sellers’
Contingencies or terminate this Agreement by giving notice to Purchaser on or before the
Closing Date. The contingencies set forth in this section are for the sole and exclusive
benefit of Sellers, and Sellers shall have the right to waive the contingencies by giving
notice to Purchaser.
22. NOTICES. All notices required herein shall be in writing and delivered personally or
mailed to the address for each party as shown above and if mailed, are effective as of the date of
mailing.
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23. MINNESOTA LAW. This contract shall be governed by the laws of the State of
Minnesota.
24. TIME IS OF THE ESSENCE. Time is of the essence for all provisions of this Purchase
Agreement.
25. SIGNATURES BY COUNTERPART; FASCIMILE OR ELECTRONIC
SIGNATURE. This Agreement may be executed in counterparts. Signatures may be transmitted
via facsimile or in “PDF” format via e-mail.
IN WITNESS WHEREOF, Purchaser and Sellers have caused this Agreement to be duly
executed as of the date first written above.
PURCHASER:
CITY OF LAKEVILLE
By:
Douglas P. Anderson, Mayor
By:
Charlene Friedges, City Clerk
SELLERS:
____________________________________
Dale B. Doudrick
____________________________________
Cynthia G. Doudrick
EXHIBIT A
TO
PURCHASE AGREEMENT
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Legal Description of Property:
That part of Government Lot 2, Section 30, Township 114, Range 20, Dakota County, Minnesota,
described as follows: Commencing at the point of intersection of the East line of said Government
Lot 2 and the centerline of County State Aid Highway No. 64; thence South 0 Degrees 7 Minutes
East assumed bearing along said East line 50.23 feet; thence South 77 Degrees 28 Minutes 11
Seconds West, 181.55 feet to the actual point of beginning; thence on a curve concave to the
Southeast having a radius of 768.89 feet, chord bearing South 65 Degrees 29 Minutes 50 Seconds
West, an arc distance of 139.35 feet, thence on a curve concave to the Southeast having a radius
of 15.0 feet, chord bearing South 13 Degrees 35 Minutes 39 Seconds West an arc distance of 24.46
feet; thence South 33 Degrees 07 Minutes East tangent to said curve 124.19 feet; thence on a curve
concave to the North having a radius of 15.0 feet, chord bearing North 87 Degrees 58 Minutes 28
Seconds East an arc distance of 30.84 feet; thence on a curve concave to the Southeast having a
radius of 60 feet, chord bearing North 53 Degrees 26 Minutes 08 Seconds East an arc Distance of
51.04 feet, thence North 0 Degrees 34 Minutes 02 Seconds West, 152.55 feet to the point of
beginning, Dakota County, Minnesota, according to the Government Survey thereof.
[20308 Icalee Path, Lakeville, MN / PID # 22-03000-03-020]
EXHIBIT B
TO
PURCHASE AGREEMENT
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Agreement Regarding Release, Payment and Assignment of Relocation Benefits
THIS AGREEMENT REGARDING RELEASE, PAYMENT AND ASSIGNMENT
OF RELOCATION BENEFITS (this “Agreement”) is made as of the ___day of
______________, 2020, by and between the CITY OF LAKEVILLE, a Minnesota municipal
corporation (“Purchaser”), and DALE B. DOUDRICK AND CYNTHIA G. DOUDRICK,
husband and wife (“Sellers”).
RECITALS:
Sellers and Purchaser entered into a purchase agreement (the “Purchase Agreement”) dated
as of _____________, 2020, related to property located at 20308 Icalee Path, Lakeville, Minnesota
and the lease agreement (“Lease”) attached as an exhibit to the Purchase Agreement.
Sellers has been advised of Sellers’s rights and payments that Sellers may be eligible to
receive pursuant to the Uniform Relocation Assistance Act (the “Act”), including payments for
Minimum Compensation under Minn. Stat. § 117.87 for the Property as legally described in the
Purchase Agreement.
Sellers acknowledges that Sellers are entitled to seek the advice of legal counsel and be
specifically advised as to relocation, moving, reestablishment, and other costs that may be
available to the Sellers under the Act.
Sellers and Purchaser desire to enter into this Agreement to confirm their understanding of
the Sellers’ release, sale and assignment of any claim for any relocation benefits and/or other
relocation costs due or payable to Sellers, whether pursuant to the Act or otherwise.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto do hereby agree as follows:
1. Effective as of the date hereof, Sellers hereby acknowledge that the sale of the
Property is a voluntary sale and not under threat of condemnation and the payment of the Purchase
Price does not include payment for Relocation Benefits and Minimum Compensation Benefits and
hereby release Purchaser from any liability for payment of additional relocation payments pursuant
to the Act (or other federal or state law provisions) with respect to the Property.
2. Effective as of the date hereof, Sellers hereby sell, transfer and assign to Purchaser
any benefits, payments, claims, or other rights due or payable to Sellers pursuant to the Act (or
other federal or state law provisions) with respect to the Property legally described in the Purchase
Agreement and as tenants under the Lease.
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3. Sellers acknowledges that Sellers have freely released such rights of Sellers’ own
volition.
4. Sellers acknowledges that Sellers have released such rights with knowledge of the
specific relocation benefits to which Sellers may be entitled.
5. This Agreement may be executed in any number of counterparts, each of which
shall be an original, but all of which together shall constitute one instrument.
6. This Agreement shall be null and void if the Purchase Agreement shall terminate
or if Closing under the Purchase Agreement shall fail to occur for any reason.
IN WITNESS WHEREOF, this Release, Payment and Assignment of Relocation
Benefits Agreement has been executed by the parties hereto as of the day and year first above
written.
SELLERS:
____________________________________
Dale B. Doudrick
____________________________________
Cynthia G. Doudrick
PURCHASER:
CITY OF LAKEVILLE
By:
Douglas P. Anderson, Mayor
By:
Charlene Friedges, City Clerk
EXHIBIT C
TO
PURCHASE AGREEMENT
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LEASE AGREEMENT
THIS LEASE AGREEMENT (the "Lease") made and entered into this _____ day of
____________, 2020, by and between the CITY OF LAKEVILLE, a Minnesota municipal
corporation, 20195 Holyoke Avenue, Lakeville, Minnesota, (“City”), and DALE B. DOUDRICK
AND CYNTHIA G. DOUDRICK, husband and wife, residing at 20308 Icalee Path, Lakeville,
Minnesota 55044 (“Lessees”).
WHEREAS, the City and Lessees entered into a Purchase Agreement dated ___________,
2020 (“Purchase Agreement”) for the sale of the Property located at 20308 Icalee Path, Lakeville,
MN 55044 and legally described on the attached Exhibit A, by Lessees to the City (“Premises”);
and
WHEREAS, the Premises consists of a single family residence and attached garage; and
WHEREAS, under the terms of the Purchase Agreement, the City agreed to lease to
Lessees the Premises from the date of closing on the Purchase Agreement pursuant to the terms of
this Lease;
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein,
it is hereby mutually agreed by the parties as follows:
1. LEASED PREMISES. The property to be leased under this Lease is Premises.
2. OCCUPANCY AND USE OF PROPERTY. Lessees shall have the right to continue to
use the Property as Lessees’ primary residence during the term of this Lease. The Premises and
utilities shall be used solely for residential purposes.
3. TERM. This Agreement shall commence on __________________, 2020, and shall
terminate on the earlier of (i) September 30, 2020; (ii) Lessees vacating the home on the Premises
and moving to another location; or (iii) the death of either of the Lessees.
4. PAYMENT OF RENT. Lessees shall not pay rent during the term of this Lease.
5. MAINTENANCE OF PREMISES. Lessees shall be responsible for all loss, damage,
maintenance, and repairs, of any kind, to the Premises and all fixtures and appliances, including
structures and personal property located on the Premises.
6. ACCEPTANCE OF PROPERTY. Lessees have resided on the Premises prior to the sale
of the Premises to the City. Lessees acknowledge that Lessees are familiar with the Premises and
accept the Premises and buildings located thereon “as is” during the term of this Agreement.
Lessees further acknowledge that no representations as to the repair of the Premises or buildings
or promises to alter, remodel, or improve the Premises or the buildings have been made by the
City except as expressly provided under this Agreement.
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7. UTILITIES. Lessees shall be responsible for arranging for and paying for all utility
services required for the use of the Premises including, but not limited to all gas, water, sewer and
electric as hereinafter set forth. Lessee shall be responsible for all costs associated with repairs
and maintenance of the septic system and well on the Leased Premises.
8. LESSEES’ PROMISES:
A. Lessees shall use the Premises only as a private residence.
B. Lessees shall abide by and conform to all statutes, ordinances, rules, and regulations
of duly constituted public authorities relating to the use and occupancy of the
Premises.
C. Lessees shall not use the Premises in any way that would cause a cancellation,
restriction, or increase in premium of the City’s insurance on the Premises.
D. Lessees shall not use or store in or near the Premises any flammable or explosive
substances in an unsafe manner.
E. Lessees shall at all times keep and maintain the Premises in a neat, clean, and
sanitary condition, free from waste or debris, and shall remove, at Lessees’ expense,
all ashes, garbage, and refuse of any kind and shall neither permit nor commit any
waste or nuisance thereon. Lessees shall recycle or dispose of trash in the outside
containers provided for those purposes.
F. Lessees shall maintain the yard to the Premises in good condition including mowing
and snowplowing.
G. Lessees covenant and agree that Lessees, Lessees’ agents, contractors, licensees,
and invitees shall not handle, use, manufacture, store, or dispose of any flammables,
explosives, radioactive materials, hazardous wastes, or materials (as may be
defined by Federal or State Law), toxic wastes or materials, petroleum products, or
other similar substances or derivatives thereof (collectively "Hazardous
Materials"), on, under, or about the Premises, without the City’s prior written
consent (which consent may be withheld or denied for any or no reason).
9. PERSONAL PROPERTY. All personal property belonging to Lessees on the Premises
shall be at the risk of Lessees and the Lessees shall carry “personal property” insurance on the
Lessees’ personal property and “renter’s” insurance and the City shall not be liable for any damage
thereto and Lessees waive all claims against the City for damages to persons or property sustained
by Lessees or Lessees’ occupants or invitees, except those claims caused by the gross negligence
or intentional malicious act or omission of the City or its agents. The Lessees shall maintain
general liability insurance as part of the “renter’s” insurance in the amount of Three Hundred
Thousand Dollars ($300,000.00) and name the City as an additional insured.
10. TELEPHONE. Lessees shall give City the assigned home phone number or cell phone
number of the Lessees within two (2) days after service is started or the phone numbers are
changed.
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11. THE CITY’S RIGHT TO ENTER. The City may enter the Premises for a reasonable
business purpose. Prior to entering the residence located on the Premises, the City must first make
a good faith effort to give reasonable notice to the Lessees of the intent to enter. The City may
enter the residence in an emergency. The City must disclose the date, time, and purpose of the
emergency entry in writing. The writing must be left in a conspicuous place in the residence.
12. NOTICE OF DANGEROUS CONDITIONS. Lessees shall promptly notify the City of
any conditions that might cause damage to the Premises. The notice may be oral or in writing.
13. ASSIGNMENT AND SUBLETTING. Lessees may not assign or sublet the Premises.
14. TERM; TERMINATION; NOTICE TO TERMINATE LEASE.
A. Lessees may terminate this Lease by giving five (5) days written notice to the City.
B. Upon termination, Lessees shall remove all personal property from the Premises
and return all keys to all buildings located on the Premises to the City. Upon
termination, Lessees may remove any fixtures or appliances from the Premises with
permission of the City. Lessees shall notify the City thirty (30) days prior to the
intended moving date and shall complete the move prior to termination of the
Lease. Any possessions or property remaining on the Premises upon termination
of the Lease may be considered by the City to have been abandoned. The City may
dispose of the possessions and personal property in the manner that the City deems
appropriate. The City shall not be liable to Lessees, Lessees’ representatives, heirs,
or assigns for disposing of the possessions or property.
15. PREMISES DESTROYED, UNINHABITABLE OR UNFIT FOR OCCUPANCY. If
the Premises is destroyed or becomes totally uninhabitable or completely unfit for occupancy for
whatever reason, either the City or Lessees may terminate this Lease. To terminate the Lease, the
City or Lessees shall give prompt written notice to the other. Utilities shall be prorated as of the
date the Premises became unfit for occupancy. The City shall be entitled to receive the proceeds
of any (“all risk”) insurance (if any) that the City has on the building located on the Premises.
16. BREACH OF LEASE [RE-ENTRY CLAUSE]. If Lessees materially breaches this
Lease, the City may:
A. Demand in writing that Lessees immediately give up possession of the Premises.
If Lessee does not give up possession, the City may bring an eviction (unlawful
detainer) action.
B. Demand in writing that Lessees give up possession of the Premises to the City at a
certain date in the future. If Lessees do not give up possession on that date, the
City may bring an eviction (unlawful detainer) action.
C. Bring an eviction (unlawful detainer) action immediately.
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17. SUBROGATION. The City and Lessees give up all rights of subrogation against the other
for loss or damage covered by insurance.
18. NOTICES. Any notice or document required or permitted to be delivered under the terms
of this Lease shall be deemed to be delivered, whether actually received or not, when deposited in
the United States mail, postage prepaid, certified or registered mail, addressed to the parties hereto
at the addresses set forth above, or at such other address as they have previously designated in
written notice delivered in accordance with this Section.
19. NOTICE OF PROHIBITION AGAINST UNLAWFUL ACTIVITIES.
A. The City and Lessees shall not unlawfully allow controlled substances in the
Premises or in the common area or curtilage of the Premises. The Premises will
not be used by Lessees or persons under Lessees’ control to manufacture, sell, give
away, barter, deliver, exchange, distribute, or possess with the intent to sell, give,
away, barter, deliver, exchange, or distribute a controlled substance in violation of
any local, state, or federal law.
B. The City and Lessees shall not allow prostitution or prostitution-related activity as
defined in Minn. Stat. § 617.80, subd. 4, to occur on the Premises or in the common
area and curtilage of the Premises.
C. The City and Lessees shall not allow the unlawful use or possession of a firearm in
violation of Minn. Stat. §§ 609.66, subd. 1a, 609.67, or 624.713 on the property, its
lands, or common area.
The following notice is required by Minn. Stat. § 504B.305. A seizure under § 609.5317, subd. 1,
for which there is not a defense under § 609.5317, subd. 3, constitutes unlawful detention by
Lessee.
20. AMENDMENTS. The City and Lessees may only amend the terms of this Lease in
writing signed by both parties.
21. INDEMNIFICATION. Lessees shall indemnify and save harmless the City against all
liabilities, damages, claims, fines, penalties, costs, and other expenses, including all attorneys' fees,
which may be imposed upon, incurred by, or asserted against the City by reason of the following,
except for any of the following that result from the grossly negligent or intentionally malicious act
or omission of the City or its agents: (a) any use or condition of the Premises or any part thereof;
(b) any personal injury or property damage occurring on the Premises; (c) any negligence on the
part of Lessees, Lessees’ agents, contractors, licensees, or invitees; (d) any failure by Lessees, any
agent or invitee of Lessees to comply with any requirement of any governmental authority; (e) any
prosecution or defense of any suit or other proceeding in discharging the Premises or any part
thereof from any liens, judgments, or encumbrances created upon or against the same by Lessees,
any agent or invitee of Lessees or against Lessees’ interest in the Premises; (f) any proceedings in
obtaining possession of the Premises after the termination of this Lease by forfeiture or otherwise;
(g) any litigation commenced by or against Lessees to which the City is made a party without any
fault on the part of the City; (h) any response costs, other damages and expenses (including
attorneys' fees) which may be imposed upon, incurred by, or asserted against the City by reason
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of the use, release, threatened release, or disposal of Hazardous Wastes at the Premises by Lessees
or any agent or invitee of Lessees; and (i) any failure on the part of Lessees to perform or comply
with any covenant or agreement required to be performed or complied with by Lessees hereunder.
22. ALTERATIONS AND IMPROVEMENTS. Lessee shall make no alterations to the
buildings or improvements on the Premises or construct any building or make any other
improvements on the Premises without the prior written consent of the City.
23. ATTORNEYS' FEES. Should it become necessary for the City to employ an attorney to
enforce any of the conditions or covenants hereof, including the collection of rentals or gaining
possession of the Premises, Lessees agree to pay all expenses so incurred, including reasonable
attorneys' fee.
24. RECORDING OF AGREEMENT. Lessees shall not record this Agreement on the
Public Records of any public office. In the event that Lessees shall record this Agreement, this
Agreement shall, at the City’s option, terminate immediately and the City shall be entitled to all
rights and remedies that it has at law or in equity.
25. GOVERNING LAW. This Agreement shall be governed, construed, and interpreted by,
through and under the Laws of the State of Minnesota.
26. SEVERABILITY. If any provision of this Agreement or the application thereof shall, for
any reason and to any extent, be invalid or unenforceable, neither the remainder of this Agreement
nor the application of the provision to other persons, entities, or circumstances shall be affected
thereby, but instead shall be enforced to the maximum extent permitted by law.
27. BINDING EFFECT. The covenants, obligations, and conditions herein contained shall
be binding on and inure to the benefit of the heirs, legal representatives, and assigns of the parties
hereto.
28. NON-WAIVER. No indulgence, waiver, election, or non-election by the City under this
Agreement shall affect Lessees’ duties and liabilities hereunder.
CITY OF LAKEVILLE
By:
Douglas P. Anderson, Mayor
By:
Charlene Friedges, City Clerk
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LESSEES:
________________________________
Dale B. Doudrick
____________________________________
Cynthia G. Doudrick
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EXHIBIT A
TO
LEASE AGREEMENT
Legal Description of Premises
That part of Government Lot 2, Section 30, Township 114, Range 20, Dakota County, Minnesota,
described as follows: Commencing at the point of intersection of the East line of said Government
Lot 2 and the centerline of County State Aid Highway No. 64; thence South 0 Degrees 7 Minutes
East assumed bearing along said East line 50.23 feet; thence South 77 Degrees 28 Minutes 11
Seconds West, 181.55 feet to the actual point of beginning; thence on a curve concave to the
Southeast having a radius of 768.89 feet, chord bearing South 65 Degrees 29 Minutes 50 Seconds
West, an arc distance of 139.35 feet, thence on a curve concave to the Southeast having a radius
of 15.0 feet, chord bearing South 13 Degrees 35 Minutes 39 Seconds West an arc distance of 24.46
feet; thence South 33 Degrees 07 Minutes East tangent to said curve 124.19 feet; thence on a curve
concave to the North having a radius of 15.0 feet, chord bearing North 87 Degrees 58 Minutes 28
Seconds East an arc distance of 30.84 feet; thence on a curve concave to the Southeast having a
radius of 60 feet, chord bearing North 53 Degrees 26 Minutes 08 Seconds East an arc Distance of
51.04 feet, thence North 0 Degrees 34 Minutes 02 Seconds West, 152.55 feet to the p oint of
beginning, Dakota County, Minnesota, according to the Government Survey thereof.
[20308 Icalee Path, Lakeville, MN / PID # 22-03000-03-020]