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1b. Well No. 13: Approve Vacant Land Purchase Agreement CITY OF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952.227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.227.1120 Fax: 952.227.1110 Recreation Center 2310 Coulter Boulevard Phone: 952.227.1400 Fax: 952.227.1404 Planning & Natural Resources . Phone: 952.227.1130 Fax: 952.227.1110 Public Works 1591 Park Road Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site W'IN/,cj ,chanhassen, mn, us 16 - MEMORANDUM TO: Todd Gerhardt, City Manager FROM: Paul Oehme, Dir. of Public Works/City Engineer ~ 0, February 11, 2008 OVA _ ~~ Well No 13 Project No. 08-05: Approve Vacant Land Purchase Agreement for Chanhassen Estates Park and Well No. 13 Improvements DATE: SUBJ: REQUESTED ACTION Approve Vacant Land Purchase Agreement. BACKGROUND In October 2007, Council authorized staff to begin preparation of plans for Well Nos. 12 and 13. On November 13, 2007, staff held a neighborhood meeting for surrounding property owners to learn about the project. On December 10, 2007, Council approved the plans and specifications and authorized Advertisement for Bids for the wells. On January 14,2008, Council approved a construction contract for drilling Well Nos. 12 & 13. DISCUSSION Staff is requesting the Council approve the purchase of a strip of land adjacent to Chanhassen Estates Park and Lake Drive E. Currently, Chanhassen Estates Park is mostly land locked by private property. The City does own a 25' small strip of property on the northeast comer of the park however, this property is encumbered by aboveground electrical transformers and other private utility pedestals. This strip of property also has a trunk storm sewer and sanitary sewer pipe buried in the property. The City-owned property is a poor access for construction and for future maintenance of the well. The lack of City-owned property along Lake Drive E. also will make the raw watermain installation for the well more expensive and will cause the raw watermain to have a poor hydraulic alignment. Park maintenance uses the City-owned property for maintenance access, but the park does not have a public access such as a parking lot or trail. The Parks The City 01 Chanhassen · A growing community with clean lakes, quality schools, a chamning downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play Todd Gerhardt Well No. 13 Land Purchase Agreement February 11, 2008 Page 2 Department is planning to construct a small parking lot in the future with access to Lake Drive E. if the property is acquired. Staff has successfully negotiated a purchase agreement for this property. The purchase agreement is consistent with the limited appraisal drafted last year for the property. The property to the west of the park along Lake Drive E. is also recommended for purchase. This piece of property will be used as a corridor for the future alignment of the raw watermain. The total acreage proposed to be purchased is 12,377 sJ. The appraised value of the property was between $2.00 and $2.80/sJ. The purchase price is for $29,019. Funding for the project is recommended from both the Parks Department (Park Dedication Fund) and the project budget for Well No. 13 improvements (Water Utility Fund). Funding is proposed as follows: $7,500 from the Parks Dedication Fund and $21,519 from the Water Utility Fund. Staff recommends approval of the purchase agreement. Attachments G:\ENGIPUBLICI_200S PI\lje",sIOS-05 Well No. 13 - Lake Drivelbkgd 021108 uprv lund pur ugrmt.doc Restricted Use Appraisal Report Property: Land Parcel XXXX Lake Drive Chanhassen, MN 55317 Prepared For: City of Chanhassen AUn: Paul Oehme 7700 Market Boulevard Chanhassen, MN 55317 Date: November 2, 2007 Prepared Bv: William R. Waytas, Appraiser NAGELL APPRAISAL & CONSULTING 7515 Wayzata Boulevard Minneapolis, MN 55426 Telephone: (952) 544-8966 Fax No. (952) 544-8969 File # G0710011 ZONING The subject use is zoned BH - Highway Business. The subject appears to be a legal and conforming use. Primary permitted uses are restaurants, hotels, gas stations, and numerous other uses that tend to be nearby highways. See Highest and Best Use. PLAT MAP Yellow and Blue is the overall property, Blue is the portion being Appraised See addenda for map provided by city 8 Nagell Appraisal & Consulting I 952-544-8966 I www.callnagell.com : _J Sales Comparison Approach-continued Market Data For land Value: Listed below are sales in the subject marketing area. Comparables used bracket the subject regarding overall appeal and are rated to be the best available data. SUBJECT Comp 1 Comp 2 Comp 3 Address XXXX Lake Dr 8024 Erie Ave 8005 Cheyenne 8006 Erie Ave Chanhassen Chanhassen Ave Chanhassen Chanhassen Proximity Subject 0.19 0.07 0.15 Conditions Market Average Average Average Location Average Average Average Average Use Single Family Single Family Single Family Single Family Site Size (SF) 14,755 12,589 12,806 15,751 Site Average Average Average Average Traffic Minor Minor Minor Minor Amenity Average Average Average Average Utilities Available Available Available Available Sale Date Current Apr-07 Nov-05 Jun-05 Price Per SF - $7.55 per SF $8.43 per SF $7.18 per SF Conclusion: Sales above range from $7.18 to $8.43 per SF with an average of $7.72. Therefore, given the above information and considering the overall characteristics of the subject property, view, traffic and market, a value of $8.00 is deemed appropriate. Typical side yard value is about 50% or $4.00 per SF, allowing for limited appeal for busy road for residential use the contributory value (of the western portion) is estimated to be about 50% of side yard value or $2.00 per SF. The eastern area adjoining the park is considered to have better appeal (more utility for front portion of park use), therefore, the estimated value is 35% or $2.80 per SF. The Sales Comparison Approach is deemed a reliable indicator of value because it represents the actions of buyers and sellers in the area for competing properties. The derived market value estimate for the overall subject site is calculated as follows: Western Portion Area Eastern Portion Area 25' x 281.84' = 7,046 x $2.00 per SF = 25'-30' x 210'= 5,331 x $2.80 per SF = $14,092 $14,927 TOTAL OPINION OF SITE MARKET VALUE: $29,019 16 Nagell Appraisal & Consulting I 952-544-8966 I www.callnagell.com Thomas J. Campbell Roger N. Knutson Thomas M. Scott Elliott B. Knctsch Joel J. Jamnik Andrea McDowell Poehler Soren M. Mattick John F. Kelly Henry A. Schaeffer, III Alina Schwartz Samuel J. Edmunds M:uguerite M. McCarron t3SO Corporate Center Curve Suite 317. Eagan, MN 55121 651-452-5000 fax 651-452-5550 www.ck-Iaw.com CAMPBELL KNUTSON Professional Association January 24, 2008 Mr. and Mrs. Jack D. Christenson 270 Smugglers Cove Road Friday Harbor, Washington 98250-8539 Re: City of Chanhassen Real Estate Purchase Dear Mr. and Mrs. Christenson: Weare the attorneys for the City of Chanhassen. Enclosed herein please find the originals of the following documents: 1. Vacant Land Purchase Agreement; 2. Warranty Deed; 3. Affidavit Regarding Seller; 4. Certificate of Representation and Warranties; 5. Non-Foreign Affidavit Purchase to Section 1445 of the Internal Revenue Code; 6. Partial Release of Mortgage to be executed by Kleinbank; 7. Partial Release of Mortgages to be executed by Community Resource Bank; 8. Partial Release of Assignment of Leases and Rents to be executed by Community Resource Bank; and 9. Partial Release ofUCC Financing Statement to be executed by Community Resource Bank. If you have any questions about any ofthe documents, please contact me. Otherwise, I request that you and your wife sign the Purchase Agreement and return that document to me at this time. Paul Oehme at the City would like to present the Purchase Agreement for approval by the City Council at its February 11 meeting so that we can close the transaction on or about February 15. I look forward to receiving the Purchase Agreement back from you. Again, please contact me if you have any questions. Best regards, TMS:cjh Enclosure cc: Mr. Paul Oehme VACANT LAND PURCHASE AGREEMENT 1. PARTIES. This Purchase Agreement is made on day of , 2008, by and between the CITY OF CHANHASSEN, a Minnesota" municipal corporation ("Buyer"), and JACK D. CHRISTENSON and PATRICIA A. CHRISTENSON, husband and wife ("Seller"). 2. OFFER/ACCEPTANCE. Buyer offers to purchase and Seller agrees to sell real property legally described as follows: That part of Lot 1, Block 2, CHAN HAVEN PLAZA, Carver County, Minnesota described as follows: Beginning at the southeast comer of said-Lot 1, thence North 90 degrees 00 minutes 00 seconds West along the south line of said Lot l' a distance of210.00 feet; thence North 89 degrees 48 minutes 18 seconds West a distance of281.81 feet; thence North 00 degrees 11 minutes 42 seconds East a distance of25.00 feet to the north line of said Lot 1; thence South 89 degrees 48 minutes 18 seconds East a distance of281.84 feet; thence South 90 degrees 00 minutes 00 seconds East a distance of 163.50 feet; thence 47.17 feet along a tangential curve concave to the north having a central angle of 12 degrees 17 minutes 05 seconds and a radius of 220.00 feet to the northeast corner of said Lot 1; thence South 00 degrees 48 minutes 27 seconds West along the east'line of said Lot la distance of 30.04 feet to the point of beginning. 3. PRICE AND TERMS. The price for the real property included in this sale is Twenty- nine Thousand Nineteen and Noll 00 Dollars ($29,019.00) which Buyer shall pay to Seller at closing, which is scheduled to occur on or before February 15, 2008. 4. DEED/MARKET ABLE TITLE. Upon performance by Buyer, Seller shall execute and deliver a Warranty Deed conveying marketable title of record, subject to: A. Covenants, conditions, restrictions, declarations and easements of record, if any; B. Reservations of minerals or mineral rights by the State of Minnesota, if any; and C., Building and zoning laws, ordinances, state and federal regulations. 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 Seller 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 paid by Seller. Seller shall pay penalty, interest and costs 135745 1 on any delinquent installment of taxes and special assessments payable in the year of Closing. The parties understand that the legal description in this Purchase Agreement is a new description requiring a subdivision ofland owned by Seller. This "lot split" will require that the full year's taxes be paid before the deed can be recorded. 6. SELLER'S BOUNDARY LINE, ACCESS, RESTRICTIONS AND LIEN WARRANTIES. Seller warrants that buildings on adjoining real property, if any, are entirely outside of the boundary lines of the property. Seller warrants that there has been no labor or material furnished to the property for which payment has not been made. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the property. These warranties shall survive the delivery of the Warranty Deed. 7. CONDITION OF PROPERTY. 135745 A. Seller shall remove all debris and all personal property not included in this sale from the property before possession date. B. Seller knows of no hazardous substances or petroleum products having been placed, stored, or released from or on the property by any person in violation of any law, nor of any underground storage tanks having been located on the property at any time. Seller warrants and represents to Buyer that there have been no acts or occurrences upon the property that have caused or could cause hazardous substances or petroleum products to be released or discharged into the subsoil or ground water of the property or other property in the area. Seller represents and warrants to Buyer that the property is free of hazardous substances and is not subject to any "superfund" 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. Seller shall indemnify and hold Buyer harmless from any and all claims, causes of action, damages, losses, or costs (including lawyer's fees) relating to hazardous substances or petroleum products in the subsoil or ground water of the property or other property in the area which arise from or are caused by acts or occurrences upon the property prior to Buyer taking possession. These warranties and indemnifications shall survive the delivery of the Warranty Deed. C. Seller's warranties and representations contained in this Section 6 shall survive the delivery of the Deed, provided that any notice of a defect or claim of breach of warranty must be in writing, and must be given by Buyer to Seller within one year of the Date of Closing or be deemed waived. D. Buyer shall have ~he right to have inspections of the property conducted prior to closing. Unless required by local ordinance or lending regulations, Seller does not plan to have the property inspected. Other than the representations made in this Section, the property is being sold "AS IS" with no express or implied representations or warranties by Seller as to physical conditions or fitness for any particular purpose. 2 8. POSSESSION. Seller shall deliver possession ofthe property'not later than the actual Date of Closing. 9. NOTICES. All notices required herein shall be in writing and delivered personally or mailed to the last known address and ifmailed are effective as ofthe date of mailing. 10. MINNESOTA LAW. This contract is governed by the laws of the State of Minnesota. 11. WELL DISCLOSURE. Seller certifies that Seller does not know of any wells on the property. 12. CLOSING. Closing shall be at Chanhassen City Hall. 13. CLOSING DOCUMENTS. A. At the Closing, Seller shall execute and/or deliver to Buyer the following (collectively the "Closing Documents"): 135745 1. \Varrantv Deed. A Warranty Deed in recordable form which shall include the following hazardous mateIja1 and well representations: (a) Grantor has not used the Property for the storage or disposal of any hazardous substance as defined in Minn. Stat. ~ 115B.02, subd. 8; and (b) Seller certifies that the Seller does not know of any wells on the described Property. 2. Seller's Affidavit. A standard form affidavit by Seller indicating that on the date of Closing there are no outstanding, unsatisfied judgments, tax liens or bankruptcies against or involving Seller 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, except for any skill, labor, material requested by Buyer; and that to the best of Seller's knowledge 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 Seller, containing such information as shall be required by the Internal Revenue Code, and the regulations issued thereunder, in order to establish that Seller is not a " foreign person" as defined in ~ 1445(f)(3) of such Code and such regulations. 4. Well Certificate. Ifthere is a well located on the Property, a well disclosure certificate in form and substance true to form for recording. 3 01/30/2008 10:13 13603782431 POST SAN JUAN PAGE 05/05 5. Other Documents. All other documents rensonably determined by either party and the title insurance company to be necessary to transfer and provide title insurance for the Property. B. At the Closing) Buyer shall execute and deliver to Seller the following: 1. All documents reasonably determined by either party and the title insurance company to be necessary to provide title insurance for the Property; and 2. Payment ofthe Purchase Price. 14. CLOSING COSTS. The costs relating to the closing oftbis transaction shall be paid as follows: A. Buyersh~lpay. (1) Recording fee for the Warranty Deed; (2) State deed ta1r.; (3) Conservation fee attributable to said deed; (4) Cost of Owners and Encumbrance Report. B. Seller shall pay the recording fees for all documents detennined to be necessary to transfer marketable title to the Buyer. 15. PARTIES BOUND. This Agreement shall be binding upon and shall inure to the benefit of the respective heirs, administrators, executors, 'successors, and assigns of the parties hereto. BUYER: CITY OF CHANHASSEN By: SELLER: Tom Furlong, Mayor '.dd"?PI ~ ack O. Christenson ~j~'~~ Patricia A. Christenson And: Todd Gerhardt, City Manager 135745 4 5. Other Documents. All other documents reasonably determined by either party and the title insurance company to be necessary to transfer and provide title insurance for the Property. B. At the Closing, Buyer shall execute and deliver to Seller the following: 1. All documents reasonably determined by either party and the title insurance company to be necessary to provide title insurance for the Property; and 2. Payment of the Purchase Price. 14. CLOSING COSTS. The costs relating to the closing of this transaction shall be paid as follows: A. Buyer shall pay: (1) Recording fee for the Warranty Deed; (2) State deed tax; (3) Conservation fee attributable to said deed; (4) Cost of Owners and Encumbrance Report. B. Seller shall pay the recording fees for all documents determined to be necessary to transfer marketable title to the Buyer. 15. PARTIES BOUND. This Agreement shall be binding upon and shall inure to the benefit of the respective heirs, administrators, executors, 'successors, and assigns of the parties hereto. BUYER: CITY OF CHANHASSEN SELLER: By: Tom Furlong, Mayor Jack D. Christenson And: Todd Gerhardt, City Manager Patricia A. Christenson 135745 4 (Reserved for Recording Data) WARRANTY DEED STATE DEED TAX DUE HEREON: 95.76 Dated: ,2008 FOR VALUABLE CONSIDERATION, JACKD. CHRISTENSON AND PATRICIA A. CHRISTENSON, husband and wife, Grantors hereby convey and warrant to the CITY OF CHANHASSEN, a Minnesota municipal corporation, Grantee, real property in Carver County, Minnesota, described as follows: That part of Lot 1, Block 2, CHAN HAYEN PLAZA, Carver County, Minnesota described as follows: Beginning at the southeast comer of said Lot 1, thence North 90 degrees 00 minutes 00 seconds West along the south line of said Lot 1 a distance of210.00 feet; thence North 89 degrees 48 minutes 18 seconds West a distance of281.81 feet; thence North 00 degrees 11 minutes 42 seconds East a distance of25.00 feet to the north line of said Lot 1; thence South 89 degrees 48 minutes 18 seconds East a distance of281.84 feet; thence South 90 degrees 00 minutes 00 seconds East a distance of 163.50 feet; thence 47.17 feet along a tangential curve concave to the north having a central angle of 12 degrees 17 minutes 05 seconds and a radius of 220.00 feet to the northeast comer of said Lot 1; thence South 00 degrees 48 minutes 27 seconds West along the east line of said Lot 1 a distance of 30.04 feet to the point of beginning. together with all hereditaments and appurtenances belonging thereto, subject to the following exceptions: (a) (b) (c) Covenants, conditions, restrictions, declarations and easements of record, if any; Reservations of minerals or mineral rights by the State of Minnesota, if any; and Building and zoning laws, ordinances, state and federal regulations. 135749 1 THE GRANTORS CERTIFY THAT THE GRANTORS DO NOT KNOW OF ANY WELLS ON THE DESCRIBED REAL PROPERTY. Jack D. Christenson Patricia A. Christenson STATEOFMINNESOTA ) )ss COUNTY OF CARVER ) The foregoing instrument was acknowledged before me this day of ,2008, by Jack D. Christ~nson and Patricia A. Christenson, husband and wife, Grantors. Notary Public Check here if part or all of the land is Registered (Torrens) _ Tax Statements for the real property described in this instrument should be sent to: City of Chanhassen 7700 Market Boulevard P.O. Box 147 Chanhassen, MN 55317 THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNUTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 651-452-5000 TMS/cjh 135749 2 STATE OF MINNESOTA ) )ss. COUNTY OF ) AFFIDAVIT REGARDING SELLER Jack D. Christenson, being first duly sworn, on oath says that: 1. He is the person named as one of the Grantors in the Warranty Deed dated ,2008, and filed for record ,2008, as Document No. in the Office of the County Recorder of Carver County, Minnesota. 2. Said person is oflegal age, is married to Patricia A. Christenson and is under no legal disability and for the last ten years has resided at: 27q Smugglers Cove Road Friday Harbor, Washington 98250-8539 3. There has been no: a. Banlauptcy, divorce or dissolution proceedings involving said person during the time said person has had any interest in the premises described in the above document ("Premises"); b. Unsatisfied judgments of record against said person nor any actions pending in any courts, which affect the Premises; and c. Tax liens against said person; except as herein stated: NONE. 4. Any banlauptcy, divorce or dissolution proceedings of record against parties with the same or similar names, during the time period in which the above named person has had any interest in the Premises, are not against the above named person. 5. Any judgments, or tax liens of record against parties with the same or similar names are not against the above named person. 6. There has been no labor or materials furnished to the Premises for which payment has not been made. 7. There are no unrecorded contracts, leases, easements, or other agreements or interests relating to the Premises except as stated herein: 8. There are no persons in possession of any portion of the Premises other than pursuant to a recorded document except as stated herein: 135891 9. There are no encroachments or boundary line questions affecting the Premises of which Affiant has knowledge. Affiant knows the matters herein stated are true and makes this Affidavit for the purpose of inducing the passing of title to the Premises. Jack D. Christenson Subscribed and sworn to before me this _ day of , 2008. Notary Public THIS INSTRUMENT WAS DRAFfED BY: CAMPBELL KNUTSON Professional Association Attorneys at Law 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 651-452-5000 TMS/cjh 135891 CERTIFICATE OF REPRESENTATION AND WARRANTIES THE UNDERSIGNED, Sellers under that certain Vacant Land Purchase Agreement dated , 2008 ("Purchase Agreement") with the City of Chanhassen, a Minnesota municipal corporation ("Buyer"), hereby certifies that the representations and warranties of Sellers set forth in said Purchase Agreement are true as of , 2008, which is the closing date. SELLERS: Jack D. Christenson Patricia A. Christenson 135893 NON-FOREIGN AFFIDAVIT PURSUANT TO SECTION 1445 OF THE INTERNAL REVENUE CODE BY JACK D. CHRISTENSON AND PATRICIA A. CHRISTENSON, HUSBAND AND WIFE, AS SELLERS, UNDER THAT CERTAIN VACANT LAND PURCHASE AGREEMENT DATED 2008, 'YITH THE CITY OF CHANHASSEN, AS BUYER Section 1445 ofthe Internal Revenue Code provides that a transferee of a U. S. real property interest must hold withholding tax ifthe transferor is a foreign person. To inform the transferee that withholding of tax is not required upon the disposition ofa U.S. real property interest by Jack D. Christenson and Patricia A. Christenson, husband and wife, the undersigned hereby make the following Affidavit: 1. Jack D. Christenson and Patricia A. Christenson are not foreign persons, foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations); 2. Jack D. Christenson's Social Security Number is Patricia A. Christenson's Social Security Number is 3. Jack D. Christenson and Patricia A. Christenson's principal address is: 15411 Village Woods Drive, Eden Prairie, Minnesota 55347. The undersigned understand that this Affidavit may be disclosed to the Internal Revenue Service by the transferee and that any false statement contained herein could be punished by fine or imprisonment, or both. FURTHER YOUR AFFIANT SAITH NOT. Jack D. Christenson Patricia A. Christenson 135894 1 STATE OF MINNESOTA ) ) ss. COUNTY OF CARVER ) The foregoing instrument was acknowledged before me this _ day of ,2008, by Jack D. Christenson and Patricia A. Christenson, husband and wife. Notary Public TillS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNUTSON Professional Association Attorneys at Law 317 Eagaridale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 651-452-5000 TMS/cjh 135894 2 PARTIAL RELEASE OF MORTGAGE Date: FOR VALUABLE CONSIDERATION, the real property in Carver County, Minnesota, legally described as follows: See Exhibit A attached hereto and made a part hereof by reference. is hereby released from the lien of the Real Estate Mortgage, OWNED BY THE UNDERSIGNED, dated July 24, 2000, executed by JACK DEAN CHRISTENSON and PATRICIA ANN CHRISTENSON, husband and wife, as Mortgagors, to STATE BANK OF CHANHASSEN, now known as KLEINBANK, a Minnesota corporation, as Mortgagee, filed for record on July 25, 2000, as Document No. A272493 in the office of the County Recorder, Carver County, Minnesota. KLEINBANK By: Its: 136546 1 STATE OF MINNESOTA) )ss. COUNTY OF CARVER ) The foregoing instrument was acknowledged before me this day of 2008, by the of KleinBank, a Minnesota corporation, on behalf of the corporation. Notary Public This Instrument was Drafted by: CAMPBELL KNUTSON, P .A. Suite 317 1380 Corporate Center Curve Eagan,MN 55121 651-452-5000 AMP/cjh 136546 2 EXHIBIT A TO PARTIAL RELEASE OF MORTGAGE That part of Lot 1, Block 2, CHAN HAVEN PLAZA, Carver County, Minnesota described as follows: Beginning at the southeast comer of said Lot 1, thence North 90 degrees 00 minutes 00 seconds West along the south line of said Lot 1 a distance of210.00 feet; thence North 89 degrees 48 minutes 18 seconds West a distance of281.81 feet; thence North 00 degrees 11 minutes 42 seconds East a distance of25.00 feet to the north line of said Lot 1; thence South 89 degrees 48 minutes 18 seconds East a distance of281.84 feet; thence South 90 degrees 00 minutes 00 seconds East a distance of 163.50 feet; thence 47.17 feet along a tangential curve concave to the north having a central angle of 12 degrees 17 minutes 05 seconds and a radius of 220.00 feet to the northeast comer of said Lot 1; thence South 00 degrees 48 minutes 27 seconds West along the east line of said Lot 1 a distance of30.04 feet to the, point of beginning. 136546 3 PARTIAL RELEASE OF MORTGAGES Date: FOR VALUABLE CONSIDERATION, the real property in Carver County, Minnesota, legally described as follows: See Exhibit A attached hereto and made a part hereof by reference. is hereby released from the lien of the following Real Estate Mortgages, owned by the undersigned: 1. Mortgage dated July 1,2004, filed for record July 12,2004, as Document No. A39l422, executed by Jack D. Christenson and Patricia A. Christenson, husband and wife to Community National Bank, now known as Community Resource Bank, a Minnesota corporation; 2. Mortgage dated July 1,2004, filed for record July 16,2004, as Document No. A391921, executed by Jack D. Christenson and Patricia A. Christenson, husband and wife to Community National Bank, now known as Community Resource Bank, a Minnesota corporation; and 3. Mortgage dated July 6, 2006, filed for record August 7, 2006, as Document No. A446986, executed by Jack D. Christenson and Patricia A. Christenson, husband and wife to Community Resource Bank, a Minnesota corporation. . COMMUNITY RESOURCE BANK By: Its: 136547 . 1 STATE OF MINNESOTA) )ss. COUNTY OF CARVER ) The foregoing instrument was acknowledged before me this day of 2008, by the of Community Resource Bank, a Minnesota corporation, on behalf of the corporation. This Instrument was Drafted by: CAMPBELL KNUTSON, P .A. Suite 317 1380 Corporate Center Curve Eagan, MN 55121 651-452-5000 AMP/cjh 136547 Notary Public 2 EXHmIT A TO PARTIAL RELEASE OF MORTGAGES That part of Lot 1, Block 2, CHAN HAYEN PLAZA, Carver County, Minnesota described as follows: Beginning at the southeast comer of said Lot 1, thence North 90 degrees 00 minutes 00 seconds West along the south line of said Lot 1 a distance of210.00 feet; thence North 89 degrees 48 minutes 18 seconds West a distance of281.81 feet; thence North 00 degrees 11 minutes 42 seconds East a distance of25.00 feet to the north line of said Lot 1; thence South 89 degrees 48 minutes 18 seconds East a distance of281.84 feet; thence South 90 degrees 00 minutes 00 seconds East a distance of 163.50 feet; thence 47.17 feet along a tangential curve concave to the north having a central angle of 12 degrees 17 minutes 05 seconds and a radius of220.00 feet to the northeast comer of said Lot 1; thence South" 00 degrees 48 minutes 27 seconds West along the east line of said Lot 1 a distance of 30.04 feet to the point of beginning. 136547 3 PARTIAL RELEASE OF ASSIGNMENT OF LEASES AND RENTS Date: FOR VALUABLE CONSIDERATION, the real property in Carver County, Minnesota, legally described as follows: See Exhibit A attached hereto and made a part hereof by reference. is hereby released from the lien of the Assignment of Leases and Rents, owned by the undersigned, dated July 1,2004, executed by JACK D. CHRISTENSON and PATRICIA A. CHRISTENSON, husband and wife, as Assignors to COMMUNITY NATIONAL BANK, now known as COMMUNITY RESOURCE BANK, a Minnesota corporation, as Lender, filed for record on July 16, 2004, as Document No. A391922 in the office of the County Recorder, Carver County, Minnesota. COMMUNITY RESOURCE BANK By: Its: 136551 1 STATE OF MINNESOTA) )ss. COUNTY OF CARVER ) The foregoing instrument was acknowledged before me this day of 2008, by the of Community Resource Bank, a Minnesota corporation, on behalf of the corporation. This Instrument was Drafted by: CAMPBELL KNUTSON, P.A. Suite 317 1380 Corporate Center Curve Eagan, MN 55121 651-452-5000 AMP/cjh 136551 Notary Public 2 EXHmIT A TO PARTIAL RELEASE OF ASSIGNMENT OF LEASES AND RENTS That part of Lot 1, Block 2, CHAN HAVEN PLAZA, Carver County, Minnesota described as follows: Beginning at the southeast comer of said Lot 1, thence North 90 degrees 00 minutes 00 seconds West along the south line of said Lot 1 a distance of210.00 feet; thence North 89 degrees 48 minutes 18 seconds West a distance of281.81 feet; thence North 00 degrees 11 minutes 42 seconds East a distance of 25.00 feet to the north line of said Lot 1; thence South 89 degrees 48 minutes 18 seconds East a distance of281.84 feet; thence South 90 degrees 00 minutes 00 seconds East a distance of 163.50 feet; thence 47.17 feet along a tangential curve concave to the north having a central angle of 12 degrees 17 minutes 05 seconds and a radius of220.00 feet to the northeast comer of said Lot 1; thence South 00 degrees 48 minutes 27 seconds West along the east line of said Lot 1 a distance of 30.04 feet to the point ofbeginning. 136551 3 PARTIAL RELEASE OF DCC FINANCING STATEMENT ,2008 That certain DCC Financing Statement executed by Jack D. Christenson, as Debtor, and Community National Bank, now known as Community Resource Bank, as Secured Party, and filed for record November 10, 2005, as Document No. A428700, in the Office of the County Recorder of Carver County, Minnesota, is, with the indebtedness thereby partially paid. The Secured Party releases that part of the UCC Financing Statement described on Exhibit A attached hereto from the lien of said UCC Financing Statement. This Partial Release leaves said DCC Financing Statement in full force as to the remaining property described therein. COMMUNITY RESOURCE BANK. By: Its: 136552 1 STATE OF MINNESOTA ) )ss. COUNTY OF CARVER ) The foregoing instrument was acknowledged before me on , 2008, by , the of Community Resource Bank, a Minnesota corporation, on behalf of said corporation. Notary Public THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNUTSON Professional Association Attorneys at Law 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 651-452-5000 TMS/cjh 136552 2 EXHIBIT A TO PARTIAL RELEASE OF DCC FINANCING STATEMENT That part of Lot 1, Block 2, CHAN HAVEN PLAZA, Carver County, Minnesota described as follows: ' Beginning at the southeast comer of said Lot 1, thence North 90 degrees 00 minutes 00 seconds West along the south line of said Lot 1 a distance of21O.00 feet; thence North 89 degrees 48 minutes 18 seconds West a distance of281.81 feet; thence North 00 degrees 11 minutes 42 seconds East a distance of25.00 feet to the north line of said Lot 1; thence South 89 degrees 48 minutes 18 seconds East a distance of281.84 feet; thence South 90 degrees 00 minutes 00 seconds East a distance of 163.50 feet; thence 47.17 feet along a tangential curve concave to the north having a central angle of 12 degrees 17 minutes 05 seconds and a radius of220.00 feet to the northeast comer of said Lot 1; thence South 00 degrees 48 minutes 27 seconds West along the east line' of said Lot 1 a distance of 30.04 feet to the point of beginning. 136552 3 EXHIBIT P.LD. 251750030 OWNER: JACK D CHRISTINSON ACQUISITION, CHANHASSEN, MN AREA: 12,377 Sq. Ft., 0.2841 acres Acquisition Area: That port of Lot 1, Block 2 CHAN HAVEN PLAZA, Carver County, Minnesota, described os fonows: Beginning at the southeast corner of said Lot 1. thence North 90 degrees 00 minutes 00 seconds West along the south line of said Lot 1 a distance of 210.00 feet; thence North 89 degrees 48 minutes 18 seconds West a distance of 281.81 feet; thence North 00 degrees 11 minutes 42 seconds East a distance of 25.00 feet to the north line of said Lot 1; thence South 89 degrees 48 minutes 18 seconds East 0 distance of 281.84 feet; thence South 90 degrees 00 minutes 00 seconds East a distance of 163.50 feet; thence 47.17 feet olong 0 tangential curve concave to the north having a central angle of 12 degrees 17 minutes 05 seconds and a radius of 220.00 feet to the northeast corner of said Lot 1; thence South 00 degrees 48 minutes 27 seconds West along the east line of said Lot 1 a distance of 30.04 to the point of beginning. I~' A' j. ('J '. , '- ',,' ~ , , , I , " ..,J I'" _, lJ '- t J..' " ~J"" DRIVE /" EAST ~ L=47.\1 I Ton.2~.6&. /1.,2',7'05 I R.220J).O~ ,,~.- ,.... !"o ~ci ~1 ~~ i N89'4S'JS"W w ~8 ;:ri gN z I SOUTHEAST- ./ CORNER OF LOT 1 ACQUISITION AREA l LEGEND: CERTIFICATION: NOT TO SCALE I hereby certify that this survey, plan, or report was prepared by me or under my direct supervision and that I am a duly Licensed Land Surveyor under the laws of the state of Minnesota, ' ' \ ' (/) .// ..........- v.... .' -;"~(i ./..... ,.) J;' (' ...:.-- '7 .-/ . -- >- / :/ /0 II ,::;---' _/~:'. " . /, J /Vf.'/ {f.V~- .rviN License No. 14677 111' r'D HANSEN THORP PELLlNEN OLSON, Inc. 7510 Markel Plac. Drive. Eden Pralrle. MN 55344 952.629-0700 . 952-829-78C6 fax Engineering. Surveying Landscape Architecture