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6c. Chanhassen Transit Station Agreements 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 www.ci.chanhassen.mn.us foe - .- MEMORANDUM TO: Mayor and City Council FROM: Todd Gerhardt, City Manager o~' DATE: November 23, 2009 SUBJ: Chanhassen Transit Station Agreements Attached are several agreements with SouthWest Transit and Bloomberg Companies for City Council consideration. These agreements outline responsibilities and commitments as a part of Chanhassen Dinner Theatres' site and include the following: 1. Redevelopment Agreement Between Bloomberg Companies and the City of Chanhassen (see Attachment #1): Intent of This Agreement: The city intends to create a tax increment financing district to reimburse Bloomberg Companies for special assessments, provided that such tax increment is generated and paid by the new development. Payment of the increment will be limited to ten years from the date of the district's certification. The reimbursement is estimated to be $729,253, which breaks down as follows: Phase lA/II Land Costs $430,389 $298,864 $729,253 2. Cooperative Agreement Between the City of Chanhassen and SouthWest Transit (see Attachment #2): Intent of This Agreement: This agreement outlines the responsibilities of the City of Chanhassen and SouthWest Transit. City of Chanhassen Responsibilities: a. Phase IA Improvements: Clearing and grubbing, retaining wall construction, acquisition of road right-of-way, and demolition of the Chanhassen is a Community for Life. Providing for Today and Planning for Tomorrow Mayor & City Council November 23,2009 Page 2 scene shop. All of the work will be assessed to Bloomberg Companies (51 %) and SouthWest Transit (49%). b. Phase IE Improvements: Scene shop relocation expenses ($100,000), water main relocation ($77,500), and sanitary sewer relocation ($52,800) for a total of $230,300. This amount would be the sole responsibility of the City of Chanhassen. SouthWest Transit Responsibilities: a. Phase II Improvements: Construction of the street improvements, sidewalks, street lights, and storm sewer improvements. b. Construction of a 420-stall parking ramp. c. Payment of 49% of the street assessments totaling $700,655: Phase IA Land Costs Phase II Road Costs $132,153 $287,144 $281,358 $700,655 3. Purchase Agreement Between Bloomberg Companies and the City of Chanhassen for the following (see Attachment #3): a. Scene shop for future road right-of-way for $300,000, which will be assessed back to Bloomberg Companies and SouthWest Transit. b. Street right-of-way in the amount of $286,008, which will be assessed back to Bloomberg Companies and SouthWest Transit. c. Depot site in the amount of $140,540. The city currently owns the depot, but it sits on Bloomberg's property. This amount would be paid 100% by the City of Chanhassen. 4. Assessment Agreement Between Bloomberg Companies and the City of Chanhassen (see Attachment #4): g:\admin\tg\downtown park & ride\council update 11-23-09.doc Mayor & City Council November 23,2009 Page 3 Intent of This Agreement: Bloomberg Companies will agree to waive any and all procedural and substantive objections to both the public improvements and special assessments against their property. The city agrees to spread the assessments over 8 years, together with 6% interest per year on the unpaid balance. Interest shall accrue from February 2010, with the first payment due with taxes payable in 2012 (see Attachment #6, amortization schedule). 5. Relocation Agreements with Bloomberg Companies (see Attachment #5): Intent of This Agreement: The City is obligated to provide relocation services to Bloomberg Companies and International Theatres Corporation. Bloomberg Companies' relocation benefits are including the purchase price of the land at $726,548. The tenant also qualifies for relocation under the Uniform Relocation Assistance Act. The relocation payment is estimated at $100,000. RECOMMENDATION Staff recommends approval of the following agreements: 1. Redevelopment Agreement between Bloomberg Companies and the City of Chanhassen. 2. Cooperative Agreement between the City of Chanhassen and SouthWest Transit. 3. Purchase Agreement between Bloomberg Companies and the City of Chanhassen. 4. Assessment Agreement between Bloomberg Companies and the City of Chanhassen. 5. Relocation Agreements. ATTACHMENTS 1. Redevelopment Agreement between Bloomberg Companies and the City 2. Cooperative Agreement between the City of Chanhassen and SouthWest Transit 3. Purchase Agreement between Bloomberg Companies and the City of Chanhassen 4. Assessment Agreement between Bloomberg Companies and the City of Chanhassen 5. Relocation Agreements 6. Amortization Schedule 7. Master Development Schedule g:\admin\tg\downtown park & ride\council update 11-23-09.doc " REDEVELOPMENT AGREEMENT IHIS REDEVELOPMENT AGREEMENT is made and entered into this Lday of /JJ~ , 2009, by and between the city of Cha.n1;assen, a Minnesota municipal corporation (the "City") and Bloomberg Companies Incorporated, a Minnesota corporation ("Bloomberg"). RECITALS: WHEREAS, the City and Bloomberg have been engaged in discussions regarding the redevelopment of an arefl of land within downtown Chanhassen that is generally shown in the attached Exhibit A (the "Project Area"); and WHEREAS, Southwest Transit ("Southwest Transit") is proposing to construct a parking ramp for approximately 400 vehicles in the Project Area; and WHEREAS, the City has initiated certain public improvements (the "Public Improvements") to be constructed partially by the City and partially by Southwest Transit to complement efforts by Southwest Transit to construct the parking ramp; and WHEREAS, Bloomberg is willing to be specially assessed for a portion of the cost of the Public Improvements under certain conditions; and WHEREAS, the parties wish to cooperate to develop the Project Area and are willing to proceed as described in this Agreement; and WHEREAS, the parties acknowledge that both the City and Bloomberg will expend substantial time and effort and will incur substantial expense to pursue development of the Project Area; and WHEREAS, the City and Bloomberg are willing to. lllldertake the activities described in this Agreement only with the reasonable assurance that ea,Gi will support and cooperate with the other in its efforts and take the actions ~ed of it by this Agreement; and WHEREAS, the City and Bloomberg intend to exe,eute this Agreement to document their understanding with respect to development of the Project Area and to establish the basis for future agreements regardiIw same. AGREEMENT NOW, THEREFORE, in consideration of the premises and mutual obligations of the parties contained herein, each does hereby represent, covenant and agree with the other as follows: I At+- '^ c...h 1M e.f'\+ *t., " 1. Statement of Intent. It is the intention of the parties that the following activities will take place pursuant to this Agreement: (a) Parking Ramp. Southwest Transit intends to construct a parking ramp for approximately 400 vehicles on property within the Project Area owned by Bloomberg. Some of that property is currently subject to an easement from Bloomberg to Southwest Transit and is used by Southwest Transit for a surface parking lot. Southwest Transit intends to exchange its easement for fee title to the land prior to construction of the parking ramp. (b) Infrastructure Improvements. The City has prepared a feasibility study and engaged in other preliminary efforts to construct infrastructure improvements to provide access to the parking ramp from Great Plains Boulevard and Market Boulevard and to construct certain utility improvements within the Project Area. The City intends to acquire interests in property from Bloomberg and others to implement the Public Improvements. The City intends to construct the Phase Ia and Ib Public Improvements. Southwest Transit intends to construct the Phase II Public Improvements. The Public Improvements will be paid for through a combination of City funds, Southwest Transit funds and special assessments levied against benefited properties, including land owned by Bloomberg. The Phase Ia and Ib and Phase II Public Improvements are more fully described in the Special Assessment Agreement attached hereto as Exhibit C. (c) Scene Shop. The City intends to acquire the building used by the Chanhassen Dinner Theater as its scene shop, demolish the structure and relocate the scene shop. (d) Chanhassen Depot. The City intends to acquire in fee from Bloomberg the land on which the Chanhassen depot building is located. (e) Tax Increment Financing District. The City intends to create a redevelopment tax increment financing district including the land identified on the attached Exhibit B. The district will be established at such time as the City shall determine but the City shall have no obligation to do so after three years after demolition of the scene shop building. Subject to the limitations of state law, the City intends to provide for reimbursement to Bloomberg of special assessments levied against property owned by Bloomberg for the Public Improvements under the Special Assessment Agreement to the extent such tax increment is generated and paid by new development within the tax increment financing district. The payment of increment shall be limited to a period not to exceed 10 years commencing with taxes payable in the year following certification of the tax increment financing district. Tax increment received in any given year shall only be eligible for reimbursement of special assessments due in the same year. 2 (t) Sale of Bloomberg Land; Redevelopment. Bloomberg intends to sell to the City such property as may be necessary for the City or Southwest Transit to construct the Public Improvements and the land on which the Chanhassen depot building is located for a price not to exceed $8.20 per square foot. Bloomberg also intends to seek approval to replat its property in the Project Area in such a way as it deems appropriate to promote redevelopment of the area. (g) Contract Negotiation. As soon as reasonably possible, the parties will attempt in good faith to negotiate the terms of a contract providing for the sale by Bloomberg of identified property to the City and Southwest Transit. (h) Right of Entry. Upon execution of this Agreement by both parties, Bloomberg will execute and deliver to the City a right of entry agreement for the purpose of allowing the City at no cost to the City or to Southwest Transit to enter onto its property within the Project Area to inspect and to conduct testing and other examinations on the property to enable the City and Southwest Transit to complete the Public Improvements and other obligations under this Agreement. The proposed form of the right of entry agreement is contained in the attached Exhibit D. (i) Petition and Waiver Agreement. Conditioned upon fulfillment of the City's obligations hereunder, Bloomberg agrees to enter into a Special Assessment Agreement with the City in the form attached hereto as Exhibit C to ensure that $ of the cost of the Public Improvements is paid through special assessments levied against property owned by Bloomberg. 2. Undertakings By Bloomberg. Bloomberg agrees to undertake all actions necessary to accomplish the activities described in Paragraph 1 above to be performed by Bloomberg and to cooperate with the City in the City's undertakings under this Agreement. 3. Undertakings by City. The City agrees to cooperate with Bloomberg in Bloomberg's undertakings and agrees to utilize its best efforts, subject to Bloomberg's performance, to accomplish the activities described in Paragraph 1 above to be performed by it. 4. Notices. Any notice required to be given under this Agreement shall be deemed delivered if either actually delivered, or if faxed and mailed to the parties at the following addresses: 3 a) As to Bloomberg: Bloomberg Companies 525 if est 78th Street P.O. Box 730 Chanhassen, MN 55317 Attention: Clayton Johnson b) As to City: City of Chanhassen 7700 Market Boulevard Chanhassen, MN 55317 Attention: City Manager 5. Miscellaneous. A. This Agreement, including the exhibits thereto, constitutes the entire agreement between the parties relative to the Project Area. Unless specifically described herein, no additional obligation shall be inferred or construed. B. Redevelopment of the Project Area will be undertaken in accordance with additional agreements which the parties shall in good faith attempt to negotiate in the future. C. This Agreement may be assigned by Bloomberg with the prior written approval of the City, which approval shall not be unreasonably withheld. D. The parties hereto understand that additional and separate action, for which no obligation is created hereunder, will be required before either the City or Bloomberg is obligated to take various actions with respect to the Project Area. Those actions may include, without limitation: 1) Zoning, comprehensive plan and subdivision approvals for any land use or developments proposed by Bloomberg; 2) Sale of the relevant portions of Bloomberg's property to the City and Southwest Transit; 3) Construction by the City and by Southwest Transit of the Public Improvements to serve the Project Area; and 4) Establishment of the tax increment financing district. D. Bloomberg further understands that many of the actions which the City may be called upon to take require the reasonable discretion and in some instances the legislative judgment of the City, such actions may be made only following established procedures, and the City may not, by this or any other agreement, agree in advance to any specific decision in such matters. 4 IN WITNESS WHEREOF, the parties have executed this Agreement effective the date and year first above written. CITY OF CHANHASSEN BLOOMBERG COMPANIES INCORPORATED By: By: ~ 1~ lJ,l{ ~ Its: Its: By: Its: 5 EXHIBIT A Proiect Area [to be completed] A-I EXHIBIT B Area of TIF District [to be completed] B-1 EXHIBIT C Special Assessment Agreement [to be completed] C-l EXHIBIT D FORM OF RIGHT OF ENTRY AGREEMENT THIS AGREEMENT is made on this _ day of , 20-, by and between the city of Chanhassen, a Minnesota municipal corporation (the "City") and Bloomberg Companies Incorporated, a Minnesota corporation (the "Owner"). Recitals A. The Owner is the owner of the real estate located at (the "Subject Property"). B. The City has authorized construction of certain public improvements (the "Public Improvements"). In order for the City to carry out its due diligence in constructing the Public Improvements, the City must obtain permission from the Owner to enter the Subject Property. C. The Owner desires to permit the City, its agents, employees, contractors and invitees to enter upon the Subject Property in order to facilitate construction of the Public Improvements. Aueement NOW, THEREFORE, in consideration of their mutual promises and obligations, the parties hereto hereby agree as follows: 1. Right of Entry. The Owner hereby grants the City, its agents, employees, contractors and invitees permission to enter upon the Subject Property at its discretion for the purpose of surveying, taking soil borings and conducting such additional tests and inspections as it may deem desirable to facilitate construction of the Public Improvements. The Owner represents and warrants to the City that the Owner is the fee owner of the Subject Property and has the sole and exclusive authority and right to enter into this Agreement. Following completion of its work, the City agrees to restore the Subject Property to the condition existing prior to the work. 2. Indemnification of Owner. In consideration for such Right of Entry, the City agrees to and shall indemnify, defend and hold harmless the Owner, its agents, officers and employees from and against any action, claim, damage, liability, loss, cost or expense, including without limitation attorneys' fees and costs, resulting from: (a) any liens which may be attached to the Subject Property for labor or materials provided by or at the request of the City; (b) injury to or death of persons; (c) property damage; or (d) any claim, damage, action, loss or destruction caused by the City's agents or contractors in connection with the City's entry onto the Subject Property pursuant to this Agreement. 3. Term. This Agreement shall commence on the date and year first above written and shall continue in full force and effect until , 20_. D-l 4. Governing Law. This Agreement shall be interpreted in accordance with and be governed by the laws of Minnesota. 5. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. 6. Amendment. This Agreement may be amended by the parties hereto only by written instrument executed in accordance with the same procedures and formality followed for the execution of this Agreement. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in their names and behalves and on or as of the date and year first above written. BLOOMBERG COMPANIES INCORPORATED By: Its: CITY OF CHANHASSEN By: Its: By: Its: THIS INSTRUMENT DRAFTED BY: Kennedy & Graven, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 D-2 COOPERATIVE AGREEMENT BETWEEN THE CITY OF CHANHASSEN AND SOUTHWEST TRANSIT FOR THE DOWNTOWN TRANSIT STATION SITE IMPROVEMENT PROJECT TIDS COOPERATIVE AGREEMENT is entered into between the CITY OF CHANHASSEN, a Minnesota municipal corporation (hereinafter referred to as "Chanhassen" or the "City") and SOUTHWEST TRANSIT, a joint powers entity organized under the laws of the State of Minnesota (hereinafter referred to as "SouthWest"), with Chanhassen and SouthWest collectively hereinafter referred to as the "Parties". RECITALS A. SouthWest intends to construct a park and ride facility with approximately 424 parking spaces upon the land legally described on Exhibit "A" (the "SouthWest Property") owned by or to by acquired by SouthWest for use of transit passengers traveling between Chanhassen and surrounding communities ("Parking Facility"). B. Public infrastructure must be constructed to serve the Parking Facility. C. SouthWest and Chanhassen agree that each is authorized to enter into this Agreement pursuant to Minnesota Statutes ~ 471.59. NOW, THEREFORE, in consideration of their mutual covenants the Parties agree as follows: 1. DEFINITIONS. The following terms and phrases as used in this Cooperative Agreement shall mean: "Agreement" means this cooperative agreement between the City of Chanhassen and SouthWest Transit for the downtown transit station site improvement project. "Bloomberg" means Bloomberg Companies Incorporated, a Minnesota corporation, whose address is 525 West 78th Street Chanhassen, Minnesota. "Consulting Engineer" means Kimley-Hom and Associates, Inc., or another engineer selected by Chanhassen. "Feasibility Study" means the Downtown Transit Station Site Improvements Feasibility Study and Report prepared for the City of Chanhassen by Kimley-Hom and Associates, Inc. dated March 2009 as supplemented by a Feasibility Study Amendment dated October 30,2009. "~~e.J", ~ tlt1+ ~'4m "Land Acquisition Costs" include but are not limited to: costs to acquire land and "Associated Costs" including taxes, closing costs, appraisals, subdivision, platting and surveying. {{Phase I Improvements" and {{Phase I" mean the Phase IA Improvements and the Phase IB Improvements as set forth in the Feasibility Study. {{Phase IA Improvements" and "Phase IA" mean clearing and grubbing, retaining wall construction; demolition of the scene shop and related expenses; and other site preparation for the future construction of the Phase II Improvements as set forth in the Feasibility Study; and Consulting Engineering including reimbursables in an amount equal to 30% of the bid construction contract amount. {{Phase IB Improvements" and "Phase IB" means scene shop business relocation expenses, water main relocation and sanitary sewer relocation as set forth in the Feasibility Study. {'Phase II Improvements" and "Phase II" mean street improvements, sidewalks, street lights and storm sewer improvements, as set forth in the Feasibility Study; and Consulting Engineering including reimbursables in an amount equal to 30% of the bid construction contract amount. "Project Costs" include but are not limited to: construction costs; engineering; surveying, testing and inspection; demolition and removal costs; and costs of construction. Project Costs do not include the Parties' staff time and benefits. "Purchase Agreement" means the Purchase Agreement between the City of Chanhassen and Bloomberg Companies Incorporated ("Bloomberg") attached hereto as Exhibit "B". "Special Assessment Agreement" means the Public Improvement and Special Assessment Agreement between the City ofChanhassen and Bloomberg attached hereto as Exhibit "C". 2. PHASE I IMPROVEMENTS. With respect to the Phase I Improvements: A. Plans and Specifications. Chanhassen has prepared the Feasibility Study. Consulting Engineer will prepare the plans and specifications and contract documents for the Phase I Improvements. The plans and specifications and contract documents must be approved in writing by both Parties. B. Bidding. Chanhassen shall advertise for bids for construction of the Phase I Improvements in accordance with Minnesota Law. The bids must be approved in writing by both Parties. C. Contract Award. If a bid is approved by both Parties, Chanhassen shall enter into a contract with the approved bidder. D. Contract Supervision. Chanhassen and/or Consulting Engineer will supervise construction of the Phase I Improvements. E Paving Agent. Chanhassen shall be the paying agent for the payments to the contractor and Consulting Engineer. Payments will be made as the project work progresses and when certified by SouthWest, subject to the terms and conditions of this Agreement. 3. PHASE II IMPROVEMENTS. With respect to the Phase II Improvements: A. Plans and Specifications. Consulting Engineer has prepared a Feasibility Study and will prepare the plans and specification and contract documents for the Phase II Improvements. The plans and specification and contract documents must be approved in writing by both Parties. B. Bidding. SouthWest will advertise for bids for the construction of the Phase II Improvements in accordance with Minnesota Law. The bids must be approved in writing by both Parties. C. Contract Award. If a bid is approved by both Parties, SouthWest shall enter into a contract with the approved bidder. Prior to construction of the Phase II improvements, the City and South West will enter into a temporary construction easement granting South West the right to construct the Phase II improvements on property currently owned by the City to be platted as part of Outlot B, Chanhassen Transit Station, until December 31,2011, ina form acceptable to both parties. D. Contract Supervision. Chanhassen and/or Consulting Engineer will supervise construction of the Phase II Improvements. E. Paving Agent. SouthWest will act as the paying agent for all payments to the contractor. Payments will be made as the project work progresses and when certified by Chanhassen, subject to the terms and conditions of this Agreement. F. Consulting Engineer. Chanhassen will act as the paying agent for all payments to the Consulting Engineer. Payments will be made as the project work progresses and when certified by SouthWest, subject to the terms and conditions of this Agreement 4. LAND ACQUISITION. Chanhassen intends to enter into the Purchase Agreement with Bloomberg to acquire the property necessary for the Phase I and Phase II projects detailed in the attached Exhibit "D". 5. PROJECT COORDINATION AND CONTINGENCIES. Chanhassen must enter into the Purchase Agreement to obtain the necessary property for the Phase I and Phase II Improvements and close on the property acquisition before a contract is entered into for either project. Chanhassen must enter into the Special Assessment Agreement with Bloomberg before a contract is entered into for either project. Contracts for the Phase I and Phase II Improvements must be let concurrently. If a contract is not awarded for both the Phase I Improvements and the Phase II Improvements a contract may not be awarded for either project. If the contingencies are not satisfied by April 2, 2010, neither the Phase I nor the Phase II Improvements will be constructed. The Phase I Improvements must be substantially completed before the Phase II Improvements commence. 6. FUNDING. SouthWest shall advance funds for the Phase IA Project Costs by depositing with Chanhassen $132,153.00 prior to Chanhassen entering into a construction contract for Phase I ("Advanced Funds"). Prior to Chanhassen closing on the Scene Shop Land, SouthWest shall advance $287,143.92 to Chanhassen for Scene Shop Land Acquisition Costs, as defined herein, incurred or to be incurred by Chanhassen. 7. COST ALLOCATION. A. Bloomberg shall be responsible for fifty-one percent (51 %) of the Project Costs for Phase IA and Phase II. Except as otherwise provided herein, SouthWest shall be responsible for forty-nine percent (49%) of the Project Costs for the Phase IA Improvements and Phase II Improvements. Chanhassen shall assess Bloomberg for Bloomberg's fifty-one percent (51%) share of the Project Costs for the Phase IA Improvements and Phase II Improvements in accordance with the Special Assessment Agreement. Chanhassen shall be responsible for and shall pay one hundred (100%) of the Phase IB Project Costs. B. As paying agent for the Phase IA Improvements, Chanhassen shall be responsible for making progress payments to the contractor and Consulting Engineer . Upon receipt of an application for payment, Chanhassen shall provide a copy of the same to SouthWest for certification. SouthWest shall provide certification within ten (10) days of receipt of the application for payment from Chanhassen or shall provide Chanhassen with a written explanation for not certifying the amount requested. If certified, Chanhassen shall use the Advanced Funds to pay 49% of the application for payment and Chanhassen shall be responsible for paying the remaining fifty-one percent (51 %). Disputes regarding payments owed to the contractor shall be resolved in accordance with the contract documents and SouthWest hereby agrees to cooperate with Chanhassen and the contractor in resolving disputes arising out of SouthWest's failure to certify an application for payment. Within thirty (30) days after Phase IA project close out, SouthWest shall pay Chanhassen the difference, if any, between the Advanced Funds and the actual costs of the Phase IA improvements. If the actual costs for the Phase IA Improvements are less than the Advanced Funds, Chanhassen shall reimburse SouthWest the difference within thirty (30) days after Phase IA project close out. C. As paying agent for the Phase II Improvements, SouthWest shall be responsible for making progress payments to the contractor. Upon receipt of an application for payment, SouthWest shall provide a copy of the same to Chanhassen for certification and payment. Chanhassen shall provide payment in the amount of fifty-one percent (51 %) of the contractor's requested payment amount to SouthWest within thirty (30) days of receipt of the application for payment. If Chanhassen does not certify the amount, it shall provide SouthWest with a written explanation for not certifying the amount within ten (10) days of receipt of the application for payment from SouthWest. Disputes regarding payments owed to the contractor shall be resolved in accordance with the contract documents and Chanhassen hereby agrees to cooperate with SouthWest and the contractor in resolving disputes arising out of Chanhassen's failure to certify an application for payment. Chanhassen's obligation to provide payment for the Phase II Improvements, including payments to the Consulting Engineer, shall be limited to $292,842.00 which is the amount to be assessed to the Bloomberg under the Special Assessment Agreement for Bloomberg's 51 % share ofthe Phase II Improvements. D. As paying agent for the Phase II Consulting Engineering Costs Chanhassen shall be responsible for making progress payments to the Consulting Engineer. South West shall be responsible for payment of forty-nine percent (49%) of the Consulting ngineer's costs. Upon receipt of an application for payment, Chanhassen shall provide a copy of the same to SouthWest for certification and payment. SouthWest shall provide payment in the amount of forty nine percent (49%) of the Consulting Engineer's requested payment amount to Chanhassen within thirty (30) days of receipt of the application for payment. If SouthWest does not certify the amount, it shall provide Chanhassen with a written explanation for not certifying the amount within ten (10) days of receipt of the application for payment from Chanhassen. Disputes regarding payments owed to the Consulting Engineer shall be resolved in accordance with the contract documents and SouthWest hereby agrees to cooperate with Chanhassen and the Consulting Engineer in resolving disputes arising out of SouthWest's failure to certify an application for payment. E. Land Acquisition Costs for the Phase I and Phase II projects total $586,008 plus Associated Costs: $286,008 for acquisition of street right-of-way plus Associated Costs ("Right-of-Way Land Acquisition Costs") and $300,000 plus Associated Costs for acquisition of land underlying the Scene Shop ("Scene Shop Land Acquisition Costs"). SouthWest shall pay 49% of Land Acquisition Costs, however SouthWest's 49% share shall not be used to pay the Right-of-Way Land Acquisition Costs. Pursuant to Section 6 above, SouthWest shall advance its 49% share of Land Acquisition Costs totaling $287,143.92 plus Associated Costs to Chanhassen which shall be used to pay Scene Shop Land Acquisition Costs. Bloomberg shall pay 51 % of the Land Acquisition Costs totaling $298,864.08 plus Associated Costs which shall be assessed to Bloomberg in accordance with the Special Assessment Agreement. Bloomberg's 51 % share of the Land Acquisition Costs shall be used to pay all Right-of-Way Land Acquisition Costs and the balance ofthe Scene Shop Land Acquisition Costs totaling $12,856.08. 8. OWNERSHIP. Following completion, Chanhassen shall own and maintain the Phase I and Phase II public improvements. 9. CHANGE ORDERS AND SUPPLEMENTAL AGREEMENTS. Any change orders or supplemental agreements that affect the Project Costs payable by Chanhassen and changes to the plans must be approved by Chanhassen prior to execution of work. 10. RULES AND REGULATIONS. SouthWest shall abide by Minnesota Department of Transportation Standard Specifications rules and contract administration procedures. 11. INDEMNIFICATION. SouthWest agrees to defend, indemnify, and hold harmless Chanhassen against any and all claims, liability, loss, damage, or expense arising under the provisions of this Agreement and caused by or resulting from negligent acts or omissions of SouthWest and/or those of SouthWest employees or agents. Chanhassen agrees to defend, indemnify, and hold harmless SouthWest against any and all claims, liability, loss, damage, or expense arising under the provisions of this Agreement for which Chanhassen is responsible, including future operation and maintenance of facilities owned by Chanhassen and caused by or resulting from negligent acts or omissions ofChanhassen and/or those ofChanhassen employees or agents. Under no circumstances, however, shall a party be required to pay on behalf of itself and the other party any amounts in excess of the limits on liability established in Minnesota Statutes Chapter 466 applicable to anyone party. The limits ofliability for both Parties may not be added together to determine the maximum amount of liability for either party. The intent of this paragraph is to impose on each party a limited duty to defend and indemnify each other subject to the limits ofliability under Minnesota Statutes Chapter 466. The purpose of creating this duty to defend and indemnify is to simplify the defense of claims by eliminating conflicts among the Parties and to permit liability claims against both Parties from a single occurrence to be defended by a single attorney. 12. WAIVER. Any and all persons engaged in the work to be performed by one party to this Agreement shall not be considered employees of the other party to this Agreement for any purpose, including Worker's Compensation, or any and all claims that mayor might arise out of the employment context on behalf of the employees while so engaged. Any and all claims made by any third party as a consequence of any act or omission on the part of one party's employees while so engaged on any of the work contemplated herein shall not be the obligation or responsibility of the other party. 13. AUDITS. Pursuant to Minnesota Statutes ~ 16C.05, Subd. 5, any books, records, documents, and accounting procedures and practices of Chanhassen and SouthWest relevant to this Agreement are subject to examination by Chanhassen; Southwest, and either the Legislative Auditor or the State Auditor as appropriate. Chanhassen and SouthWest agree to maintain these records for a period of six years from the date of performance of all services covered under this Agreement. 14. DATA PRACTICES ACT. The Parties shall at all times abide by the Minnesota Government Data Practices Act, Minn. Stat. Chapter 13. 15. CLAIMS. To receive any payment on this Agreement, the invoice or bill must include the following signed and dated statement: "I declare under penalty of perjury that this account, claim, or demand is just and correct and that no part of it has been paid." 16. INTEGRATION. The entire and integrated agreement of the Parties contained in this Agreement shall supersede all prior negotiations, representations, or agreements between Chanhassen and SouthWest regarding the project; whether written or oral. IN WITNESS THEREOF, the Parties have caused this Agreement to be executed by their duly authorized officials. SOUTHWEST TRANSIT CITY OF CHANHASSEN BY: BY: Its Mayor AND i I Its C iefExecutive Officer ; I AND Its City Manager Exhibit A Legal Description: Lot 1, Block 1, Chanhassen Transit Station EXHmIT B REAL ESTATE PURCHASE AGREEMENT TillS REAL ESTATl1 PURCHASE AGREEMENT ("Agreement"), dated for reference purposes only the J.Ji: day of --'LA ~ , 20~, by and between BLOOMBERG COMPANIES, INCORPORATlj;D, a Minnesota corporation ("Seller") and the CITY OF CHANHASSEN, a Minnesota municipal corporation ("Purchaser"). RECITALS A. Seller is the owner in fee simple of 4 parcels of land located in the City of Chanhassen, Carver County, Minnesota at the southwest comer of the intersection of Great Plains B(mlevard and 78th Street ("Seller's Parcels"); the 2.45.acre southeasterly parcel, PID No. 25.0130700 is the subject of this Purchase Agreement ("Bloomberg's Property"). B. Bloomberg's Property includes 2 buildings: an approximately 9,120 square foot scene shop on the western portion of Bloomberg's Property ("Scene Shop") and a depot station on the eastern portion of Bloomberg's Property that is already owned by Purchaser ("Depot Station"). C. Under terms of the Cooperative Agreement to which a copy of this Purchase Agreement is attached as an Exhibit ("Cooperative Agreement"), South West Transit, a joint powers entity, ("South West") and the Purchaser intend to acquire portions of Seller's Parcels for the development of a transit station and construction of associated site improvements ("Chanhassen Transit Station Project"). D. At this time, Purchaser desires to acquire a portion of Seller's Parcel, to be platted with other property for the Chanhassen Transit Station Project as the Chanhassen Transit Station Plat (the "Plat"). WIT N E SSE T H: 1. PROPERTY. In consideration of the mutual promises, covenants, and agreements hereinafter contained, Seller agrees to sell and convey to Purchaser, and Purchaser agrees to buy that part of Bloomberg's Property, a& legally described on Exhibit "A" attached hereto from Seller, qpon the terms and conditions hereinafter set forth, together with all attached improvements and fixtures, easements, and other real property interests appurtenant thereto, if any (hereinafter referred to as the "Property"). 2. PURCHASE PRICE. The purchase price for the Property (the "Purchase Price"), which include~ any and all amounts for minimum compensation damages andreiocation expenses under #l:e Uniform Relocation Assistance Act, Minn. Stat. Section 117.187, and other applicable federal and state law, shall be payable by Purchaser to Seller by wire transfer at Closing (as hereitmfter defined) in the amount of Seven Hundred Twenty-six Thousand Five Hundred Forty Eight and Noll 00 ($726,548.00) Dollars. <"f{;! /:'? A1;~~ d, t\>\ey~"t; ~ ~. 3. EOIDPMENT AND PERSONAL PROPERTY. The sale includes all owned fixtures and equipment located on or about the Property as of the date of execution of this Agreement, except fixtures and equipment owned by the Scene Shop Tenant or the Depot Tenant. 4. TITLE TO BE DELIVERED. Seller shall deliver to Purchaser or cause to be delivered to Purchaser, at Closing an executed warranty deed in recordable form conveying fee simple title to the Property subject to the terms of this Agreement and: (a) Current taxes and assessments which are a lien not yet delinquent; (b) Any matter of record or not of record that in any way affects title to the Property which resulted from the acts or omissions of Purchaser; (c) Applicable laws, regulations, zoning regulations and ordinances, whether federal, state or local; and (d) Easements, rights-of-way, reservations, covenants and restrictions of record, except those easements, rights-of-way, reservations, covenants and restrictions of record objected to by Purchaser during the period for objections to title under Section 5; ( e) Easements and encumbrances and covenants for Southwest Metro Transit and for publice right-of-way resulting from the consummation of the Cooperative Agreement and the Chanhassen Transit Station Project. (hereinafter "Permitted Encumbrances"). 5. EVIDENCE OF TITLE. (a) Within twenty (20) days following the date of execution of this Purchase Agreement, Purchaser shall obtain a commitment for an ALTA Owner's Form title insurance policy (the "Commitment") issued by Carver County Abstract and Title. (the "Title Company"), pursuant to which the Title Company agrees to issue to the Purchaser upon the recording of the documents of conveyance referred to herein an Owner's title insurance policy insuring the Property in an amount equal to the Purchase Price. The Commitment shall include proper searches covering bankruptcies, state and federal judgments and liens and levied and pending special assessments, which commitment: (1) Insures that at Closing Purchaser shall have marketable title of record to the Property, 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 title, except for Permitted Encumbrances. (2) Waives or insures over the following standard exceptions: (a) Facts which would be disclosed by a comprehensive survey of the Property; 148066v8 2 (b) Rights and claims of parties in possession; and (c) Mechanic's, contractor's and material liens and lien claims. (b) Purchaser shall have twenty (20) days after receipt of the Commitment to deliver to Seller written objections to title based on marketability of the Property ("Objections") and Seller shall have sixty (60) days to have such Objections removed or satisfied. If Seller fails or is unable to have such objections removed within said time, Purchaser may, at its sole election, do any ofthe following: (1) Termination. Terminate this Agreement without any liability on its part in exchange for a quit claim deed for the Property. (2) Escrow for Cure. If the parties agree to an escrow, Seller shall escrow an amount sufficient to assure cure. of the Objection(s). Any amount so escrowed will be placed in an escrow with title pending such cure. If such escrow is established, the parties agree to execute and deliver such documents as. may be reasonably required by Title, and Seller agrees to pay the charges of Title to create and administer the escrow. (3) Purchaser Cure. To the extent an Objection can be satisfied by the payment of money, Purchaser shall have the right ot pay the amount necessary to satisfy such Objection and the amount so applied shall be reimbursed to Purchaser by Seller at the Closing, provided, that the amount due to the third-party claimant is an undisputed liquidated amount for which Seller's liability is undisputed. Notwithstanding the limitation, waiver, and relinquishment of remedies in Paragraph 17, if Purchaser funds such a cure of monetary objection, and is not reimbursed at Closing by Seller, Purchaser shall have a right of action to recover from Seller an amount equal to the dollar amount of Seller's undisputed and liquidated liability. (4) Waiver. Waive such objections and take title to the Property subject to such objections. 6. REPRESENTATIONS OF SELLER. On information and belief, without special investigation, Seller hereby represents to Purchaser: (a) That Seller has the requisite power and authority to enter into this Purchase Agreement and the closing documents relating thereto to be signed by it; that the execution, delivery and performance by Seller of such documents do not conflict with or result in violation of any judgment, order or decree of any court to which Seller is a party; such documents are valid and binding obligations of Seller. (b) Seller currently leases: 148066v8 3 (c) 148066v8 (i) the Scene Shop to International Theaters Corporation, a Minnesota corporation ("Scene Shop Tenant"), or its assignee, under a verbal extension of its lease Agreementdated June 1, 1989 ("Scene Shop Lease"); and (ii) the Depot Station to the City of Chanhassen ("Depot Tenant") under a lease ("Depot Lease"); . (iii) South West Transit, pursuant to "easements;" Other than Seller, Scene Shop Tenant and Depot Tenant, and South West Transit there are no other tenants or occupants of the Property. (d) On the Date of Closing there will be no (i) outstanding leases or occupancy agreements except those identified under Section 6(b ), or (ii) outstanding contracts made by Seller for any improvements to the Property which have not been fully paid for. or for which Seller shall make arrangements to payoff; and Seller. shall cause to be. discharged all mechanic's or materialmen's ..liens arising from any labor or materials furnished to the Property that were made at the request of Seller, his agents, or contractors, prior to the Date of Closing and any mortgages or other such similar encumbrances. (e) Until the Date of Closing, except as otherwise provided in this Purchase Agreement, Seller shall maintain the land associated with the Property in its present condition. (f) Seller is not a foreign person; as such term is defined in Section 1445(f) (3) of the Internal Revenue Code of 1986, as amended, and shall deliver an affidaVit to that effect at closing, which shall be in form and substance reasonably acceptable to Purchaser. (g) To Seller's knowledge without special investigation, (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 V.S.C. ~6901, et seq.) or in the Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended (42 V.S.C. 99601, 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" 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. (h) To Seller's knowledge, without special investigation, the conveyance of the Property pursuant hereto will not violate any currently existing applicable statute, ordinance, governmental restriction or regulation, or any private restriction or agreement to which Seller is a party. 4 (i) To Seller's knowledge without special investigation, there are no underground storage tanks or wells on the Property, it being understood that the representation as to wells shall be recited in the deed to be delivered by the Seller at Closing. G) Seller shall provide reasonable assistance in processing the application for Plat and shall execute appropriate documents necessary for recording the Plat. The representations set forth in this section shall be continuing and shall be true and correct as of the Date of Closing with the same force and effect as if made at that time and shall survive the Closing. 7. REVIEW OF DOCUMENTS AND ACCESS TO PROPERTY. Within twenty (20) days of the execution of this Agreement, Seller agrees to provide Purchaser with all of the following documentation: (a) True and correct copies of all existing environmental assessment reports, soil reports and results of all soil tests and environmental audits in Seller's possession; (b) Surveys, permits, licenses, leases, complete copies of all contracts currently affecting the Property readily available or in the possession of Seller ("Other Agreements"), and notices received within the last 90 days from the city, state or other governmental authorities pertaining to uncured violations of any law, ordinance or regulation. Seller acknowledges that Purchaser and Purchaser's agents shall have access to the Property without charge and at reasonable times for a period of ninety (90) days after the effective date of this Agreement for the purpose of Purchaser's environmental investigation and testing of the Property, ("Environmental Investigation"). Purchaser shall pay all costs and expenses of such Environmental Investigation and Purchaser shall hold harmless and indemnify Seller, its employees, agents and affiliates, from and against any and all claims, suits, losses, liabilities, and expenses (including attorney's fees, expert's fees, and other expenses of litigation) on account of injury to or death of any persons (including Purchaser's employees, contractors and agents) or damage to property or contamination of or adverse effects on the environment or liens. against Seller, caused by Purchaser's entry onto the Property. Purchaser shall repair and restore any damage to the Property caused by or occurring during Purchaser's Environmental Investigation and return the Property to substantially the same condition as existed prior to such Environmental Investigation. Purchaser shall have the right in its sole discretion to contact various public officials and administrators to verify information regarding the status of the Property and to determine that the Property is suitable for Purchaser's intended use. Purchaser's obligations set forth in this paragraph shall survive the consummation or termination of this Agreement for a period of five (5) years following the Date of this Agreement. 8. SELLER'S CONTINGENCIES. The obligations of Seller under this Agreement are expressly contingent upon the following: 148066v8 5 -(a) Purchaser's creation of and recording, at Purchaser's sole expense, of the Plat, that includes the Property, not later than December 31, 2009. (b) Purchaser entering into a Special Assessment Agreement with Seller for Seller's share of any special assessments arising from project costs for the Downtown Transit Station Improvements, providing amount, allocation to the respective properties, and for recovery of benefits applicable to all properties, which agreement shall be in form and content acceptable to Seller and to Purchaser. ( c) Purchaser entering into a Redevelopment Agreement with Seller for Redevelopment within the Chanhassen Transit Station Improvements area, which agreement shall be in form and content acceptable to Seller and to Purchaser. (d) Purchaser shall have secured agreement for Scene Shop Tenant and Purchaser entering into a Relocation Agreement in a form satisfactory to Purchaser for Scene Shop Tenant's relocation out of the Scene Shop. (e) Purchaser shall have secured agreement that Scene Shop Tenant shall have released the Property from the terms of Scene Shop Lease effective March 1, 2010. (f) Seller and SouthWest shall have closed, by a Closing simultaneous with the Closing of the transaction contemplated herein, on SouthWest's acquisition of the portion of the Bloomberg Property necessary for SouthWest to construct the ramp and associated improvements contemplated under the Cooperative Agreement. (g) Purchaser's performance of its obligations hereunder. The contingencies set forth in this section are for the sole and exclusive benefit of Seller, and Seller shall have the right to waive the contingencies by giving notice to Purchaser. 9. PURCHASER'S CONTINGENCIES. The obligations of Purchaser under this Agreement at Closing are expressly contingent upon the following: (a) The representations of Seller contained in this Agreement must be true now and as of the closing date (herein referred to as "Closing Date" or Date of Closing"), as if made on the Closing Date and Seller shall have delivered to the other on the Closing Date, a certificate, signed by the Seller, certifying that such representations are true as of the Closing Date (the "Bring-down Certificate"), except to the extent that the representations are no longer true and acceptable to Purchaser. (b) Title to the Property and easements to be acquired under this Agreement shall be held by Seller, and shall be free and clear of all encumbrances except the Permitted Encumbrances. 148066v8 6 (c) Purchaser shall be satisfied, in its sole discretion, with the results of any environmental review or testing conducted by Purchaser on the Property. (d) Purchaser's recording of the Plat that includes the Property. (e) Award of Contracts by Purchaser and South West for the Downtown Transit Station Improvements pursuant to the terms of the Cooperative Agreement. (f) Seller entering into a Special Assessment Agreement with Purchaser for its share of the project costs for the Downtown Transit Station Improvements in form and content acceptable to Seller and to Purchaser. (g) Seller providing to Purchaser a Permanent Easement for right-of-way in a form satisfactory to Seller Purchaser over that portion of Seller's Parcels legally described in Exhibit B. (h) Seller providing to Purchaser and South West a Temporary Construction Easement for construction of the improvements identified in the Cooperative Agreement in a form satisfactory to Seller and Purchaser over that portion of Bloomberg's Property legally described in Exhibit C, including a right of entry and temporary easement for Scene Shop demolition. (i) Scene Shop Tenant and Purchaser entering into a Relocation Agreement in a form satisfactory to Purchaser for Scene Shop Tenant's relocation out of the Scene Shop. G) Scene Shop Tenant shall have released the Property from the terms of Scene Shop Lease effective March 1,2010. (k) Seller and Purchaser entering into a Relocation Agreement in a form satisfactory to Seller and Purchaser for Purchaser's acquisition of the Property. (1) Seller shall perform all of the obligations required to be performed under this Agreement, as and when required by the Agreement, except as waived by Purchaser. (m) Purchaser having determined that it is satisfied with its review and analysis of all documents required to be provided by Seller under Paragraph 7. (n) There shall be no restriction or encumbrance of the Property or easements acquired by Purchaser under the terms of this Agreement that is not within the sole control of the Purchaser which would restrict the Purchaser's use of the Property for public right-of-way. (0) Seller and South West shall have closed, by a Closing simultaneous with the Closing of the transaction contemplated herein, on South West's acquisition of 148066v8 7 the portion of the Bloomberg Property necessary for South West to construct the ramp and associated improvements contemplated under the Cooperative Agreement. (P) Seller providing an Estoppel Certificate and Assignment of Rents and Leases at Closing in a form acceptable to Seller and Purchaser for the Scene Shop Lease. (q) Seller providing to Purchaser a permanent easement for sewer. and water utilities to be located within Seller's Parcels (including Outlot A, Frontier Cinema, Carver County, Minnesota) that are to be relocated under the terms of the Cooperative Agreement, in a form satisfactory to Seller and Purchaser. 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 Seller. 10. CLOSING. The closing hereof shall take place on Monday, January 4, 2010, except as otherwise extended or terminated as provided under this Agreement (the "Date of Closing"). The closing shall take place at the offices of the Title Company selected by mutual agreement of Seller, Purchaser, and South West. By mutual agreement of Seller, Purchaser, and South West, the Closing may be rescheduled. If closing does not occur prior to February 26, 2010, this Agreement shall be null and void and Purchaser shall execute a quit claim deed for the Property in favor of Seller. At Closing, Seller and Purchaser shall disclose their.Social Security Numbers or Federal Tax Identification Numbers for the purpose of completing state and federal tax forms. 11 SELLER'S OBLIGATIONS AT CLOSING. On or pnor to the Date of Closing, Seller shall: (a) (b) (c) (d) 148066v8 Execute, acknowledge and deliver to Purchaser a warranty deed the ("Deed") to the Property conveying to Purchaser marketable fee simple title to the Property subject only to the Permitted Encumbrances. Execute and/or deliver to Purchaser such other documents as may be required by this Agreement or as may be reasonably required by Title Company, including well disclosures and sewage treatment system disclosures. Deliver to Purchaser a standard form affidavit by the 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 (other than at the request of Purchaser or South West) 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. Deliver to Purchaser a "bring-down" certificate, certifying that all of the representations made by Seller in this Agreement rema~ true as of the Date of 8 Closing, subject to exceptions or events occurring subsequent to this Purchase Agreement that are acceptable to Purchaser. (e) Deliver to Purchaser. termination of any other tenants or occupancies located on the Property, providing for termination of all leases and occupancies and removal of all tenants and tenant property no later than the Date of Closing, except for the Depot Lease, the Scene Shop Lease, and any other parking or access easement rights accepted by Purchaser. (f) Execute and deliver to Purchaser at Closing a Relocation Agreement in the form attached as Exhibit D. 12. PURCHASER'S OBLIGATIONS AT CLOSING. At Closing, and subject to the terms, conditions, and provisions hereof and the performance by Seller of its obligations as set forth above, the Purchaser shall: (a) Execute and/or deliver to Seller such other documents as may be required by this Agreement or as contemplated by the Parties and South West under the Cooperative Agreement or Chanhassen Transit Station Project or as may be reasonably required by Title Company. (b) Provide evidence of the recording of the Chanhassen Transit Station Plat by December 31, 2009. 13. CLOSING COSTS. The following costs and expenses shall be paid as follows in connection with the closing: (a) Seller shall pay: (1) Seller's attorneys' fees. (2) The cost of recording the satisfaction of any existing mortgage and any other reasonable document(s) necessary to make title marketable, except for those costs and recording fees associated with the Plat. (3) The cost of preparation of the Deed and other documents of conveyance prepared by Seller and the cost for state deed tax. (4) One-half of the closing fee charged by Title Company for the Closing between the Seller and Purchaser. (b) Purchaser shall pay the following costs in connection with the closing: (1) The cost of preparing any title insurance policy and cost of the premium and endorsements issued pursuant to the Commitment. 148066v8 9 (2) Filing fee required to record the Deed and costs and filing fees for documents to be recorded that are not required to be paid by Seller. (3) Purchaser's attorneys' fees. (4) One-half of the closing fee charged by Title Company for the Closing between Seller and Purchaser. (5) The cost of engineers or other consultants, if any, engaged by Purchaser regarding the Property. 14. TAXES AND SPECIAL ASSESSMENTS. (a) Seller shall pay all general real estate taxes and installments of special assessments due and payable in the year prior to the Date of Closing and in years prior thereto. Real estate taxes due and payable in and for the year of closing shall be prorated between Seller and Purchaser on a calendar year basis to the actual Date of Closing; (b) Seller shall pay on or before the Date of Closing all pending special assessments that are due prior to the Date of Closing, except special assessments against the Property arising in connection with the Chanhassen Transit Station Project which will be paid pursuant to the terms of a Special Assessment Agreement between Seller and Purchaser; (c) Seller shall pay on Date of Closing any deferred real estate taxes or special assessments payment of which is required as a result of the closing of this Agreement; (d) Purchaser shall pay real estate taxes due and payable in the year following closing and thereafter. 15. CONTROL OF PROPERTY. Prior to the Date of Closing, Seller shall have the full responsibility and the entire liability for any and all damages or injuries of any kind whatsoever to the Property, to any and all persons, whether employees or otherwise, except liability arising from the activities of Purchaser, its agents, contractors or employees. Any removable fixtures, equipment or personal property left at the Property after the Date of Closing, shall be considered abandoned by Seller and the Purchaser shall be free to dispose of these items in any manner it chooses at its sole discretion, except property owned by the Scene Shop Tenants. 16. POSSESSION. Seller shall deliver possession of the Property to Purchaser on the Date of Closing. 17. DEFAULT: REMEDIES. If Seller has performed or is ready, willing and able to perform all obligations required by this Agreement and Purchaser shall fail or refuse to perform this Agreement within the time and in the manner provided, then Seller's sole remedy 148066v8 10 shall be termination of this Agreement, in which case the parties shall have no further rights and obligations hereunder other than those rights and/or obligations which are expressly stated to survive expiration or termination of this Agreement. If Purchaser has performed or is ready, willing and able to perform all obligations required by this Agreement and Seller shall fail or refuse to perform this Agreement within the time and in the manner provided,' then Purchaser, at its option may terminate this Agreement by giving written notice thereof to Seller, in which case the parties shall have no further rights and obligations hereunder other than those rights and/or obligations which are expressly stated to survive expiration or termination of this Agreement. 18. MISCELLANEOUS. The following general provisions govern this Agreement: (a) Time is of the Essence. The Date of Closing is of the absolute essence. (b) Governing Law. This Agreement is made and executed under and in all respects is to be governed and construed under the laws of the State of Minnesota. (c) Notices. Any notice required to be given to Seller or Purchaser pursuant to this Agreement is given in accordance with this Agreement if it is in writing and if it is directed to Seller by delivering it personally to an officer of Seller, or if it is . directed to Purchaser, by delivering it personally to the City Manager of Purchaser, or if mailed in a sealed wrapper by United States registered or certified mail, return receipt requested, postage prepaid, or if deposited cost paid with a nationally recognized reputable overnight courier, property addressed as follows: Seller: Bloomberg Companies Incorporated 525 W. 78th St. P.O. Box:mfl Chanhassen, MN 55317-0730 148066v8 11 (d) 148066v8 With a copy to: John D. Rice Rice Law Firm, Chartered 525 West 78th Street, Suite 201 P.O. Box 1180 Chanhassen, Minnesota 55317-1180 Purchaser: City of Chanhassen Attn: City Manager 7700 Market Boulevard Chanhassen, MN 55317 With a copy to: Roger Knutson Campbell Knutson, P .A. 317 Eaganda1e Office Center 1380 Corporate Center Curve Eagan, MN 55121 Notices shall be deemed effective on the earlier of the date of receipt or the date of deposit as aforesaid, provided, however, that if notice is given by deposit, the time for response to any notice by the other party shall commence to run one business day after any such deposit. Any party may change its address for the service of notice by giving written notice of such change to the other party, in any manner above specified, 10 days prior to the effective date of such change. Purchaser's Waiver Rights. Purchaser may, at its option, waive any right conferred upon the Purchaser by this Agreement. Except as otherwise provided herein, such waiver may be made only by giving Seller written notice specifically describing the right waived. (e) Survival. Except as otherwise stated herein, all of the terms of this Agreement will survive and be enforceable after the Closing. (f) Amendment. This Agreement shall be amended only by a written instrument signed by Seller and Purchaser. (g) Brokerage. Each party hereby agrees to indemnify and hold the other harmless of any claim made by a broker or sales agent or similar party for a commission due or alleged to be due on this transaction on the basis of an agreement with said broker made by the indemnifying party. The parties' obligations set forth in this paragraph shall survive termination or consummation of this Agreement. (h) Assignment. Seller shall not assign this Agreement or its rights hereunder without the express written consent of Purchaser, which may be withheld by Purchaser in its sole discretion. (i) Benefit. This Agreement shall be binding upon and inure to the benefit of Seller and Purchaser and their respective successors and assigns 12 G) Construction. The captions and headings of the various sections of this Agreement are for convenience only and are not to be construed as defining or as limiting in any way the scope or intent of the provisions hereof. Wherever the context requires or permits, the singular shall include the plural, the plural shall include singular, and the masculine, feminine and neuter shall be freely interchangeable. (k) Counterparts. For the convenience of the parties, any number of counterparts hereof may be executed and each such executed counterpart shall be deemed an original, but all such counterparts together shall constitute one in the same Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above, in multiple counterparts, each of which shall be deemed an original and all of which shall evidence but one agreement. SELLER: BLOOMBERG COMPANIES INCORPORATED /)..~ By: l /~ Clayton . Johnson Its Executive Vice President ~ 148066ve~ 13 PURCHASER: CITY OF CHANHASSEN By: , Mayor And: , City Manager 148066v8 14 EXIllBIt A Le2al Descriution of Prouertv That part of Bloomberg's Property, City of Chanhassen, Carver County, Minnesota described as follows: That part of the Northeast Quarter of the Northwest Quarter of Section 13 , Township 116, Range 23 which lies North of a line parallel with and 56.50 feet northerly of the Chicago, Milwaukee, St. Paul and Pacific Railroad Company main tract center line as now laid out and established, East of the plat of Frontier Cinema Addition, lying West of the Westerly line of Highway 101 and South of that part of the Northeast Quarter of the Northwest Quarter of Section 13, Township 116, Range 23 described as follows: Commencing at a point on the North line of said Section 13, distant 312.0 feet West from the North Quarter corner thereof; thence South at right angles to said North line 33.0 feet to the actual point of beginning; thence continuing South along the last described course 94.66 feet to the Southerly right-of-way line of Highway 101; thence Southeasterly along said Southerly right-of-way line a distance of 12.58 feet along a curve concave to the Southwest, having a delta of 2 degrees 33 minutes 55 seconds and a radius of281.00 feet; thence South 38 degrees 51 minutes 39 seconds East a distance of235.02 feet; thence South 56 degrees 58 minutes 06 seconds West a distance of 197.68 feet; thence North 88 degrees 06 minutes 20 seconds West, parallel with the North line of said section, a distance of 354.91 feet; thence North 1 degree 11 minutes 04 seconds East a distance of76.15 feet; thence West parallel with said north line 311.88 feet; thence North parallel with the West line of said Northeast Quarter of the Northwest Quarter a distance of319.03 feet to a point 33.0 feet South of the North line of said Section 13; thence East parallel with said North line a distance of 675.18 feet to the point of beginning, Carver County, Minnesota except that part commencing at a point, said point being the northeast corner of the Northwest Quarter of Section 13, Township 116, Range 23; running thence West on the North Section line of Section 13, Township and Range aforesaid, a distance of 252 feet; thence due South a distance of 188 feet to a point; thence due East a distance of 60 feet to a point which is the point of beginning of the land herein to be described; thence due South a distance of 196 feet to a point; thence due East a distance of 60 feet to a point; thence due North a distance of 196 feet to a point; thence due West a distance of 60 feet to the place of beginning. Said tract being in the NE 1/4 ofNW 1/4 of Section 13, Township 116, Range 23 West. And except the following described parcel: That part ofthe Northwest Quarter of Section 13, Township 116, Range 23, Carver County, Minnesota, described as follows: Commencing at the Northeast corner of said Northwest Quarter; thence South along the East line of said Northwest Quarter a distance of351.5 feet; thence We~t at right angles 192.0 feet more or less to its intersection with a line 192.0 feet West of and parallel with the East line of said Northwest Quarter, as measured along a line parallel with the North line of said Northwest Quarter, to the actual point of beginning; thence continuing along the last described course 15.0 feet; thence North parallel with the East line of said 148066v8 15 Northwest Quarter to a line 303.0 feet South of and parallel with the North line of said Northwest Quarter, as measured along a line parallel with the "East line of said Northwest Quarter; thence East parallel with the North line of said Northwest Quarter a distance of 15.0 feet to a line 192.0 feet West of and parallel with the East line of said Northwest Quarter, as measured along a line parallel with the North line of said Northwest Quarter; thence South parallel with the East line of said Northwest Quarter to the point of beginning. To be platted as Lot 1, Block 2 and Outlot B, Chanhassen Transit Station, City of Chanhassen, Carver County, Minnesota, as shown on the preliminary plat for the Chanhassen Transit Station, prepared by Kimley-Hom and Associates, Inc., dated October 19, 2009 [Exact legal description pursuant to Commitment for Title Insurance and in accordance with the survey and plat as provided hereunder to govern]. 148066v8 16 EXHIBIT B Permanent Easement Legal Description: The Southerly 50.00 feet of Lot 2, Block 1 and the Southerly 50.00 feet of Outlot A, all in Frontier Cinema Addition, according to the recorded plat thereof, Carver County, Minnesota. 148066v8 17 E:xJIIBIT C Temporary Construction Easement Legal Description: All that part of Lot 2, Block 1 and Outlot A, Frontier Cinema Addition, according to the recorded plat thereof, Carver County, Minnesota which lies easterly and southwesterly of the following described line: Commencing at the northeast corner of Outlot A, Frontier Cinema Addition; thence South 89 degrees 26 minutes 33 seconds West, an assumed bearing along the northerly line of said Outlot A, a distance of 85.87 feet to the point of beginning of the line to be described; thence South 0 degrees 06 minutes 20 seconds East, a distance of 148.67 feet; thence North 85 degrees 59 minutes 28 seconds West, a distance of 183.29 feet to the westerly line of said Lot 2 and said line there terminating. AND Beginning at the southeast comer of Outlot A Frontier Cinema Addition, according to the recorded plat thereof; thence North 00 degrees 33 minutes 26 seconds West, an assumed bearing along the easterly line of said Outlot A, a distance of 110.00 feet; thence North 17 degrees 52 minutes 40 seconds East, along the easterly line of said Outlot A, a distance of 47.43 feet; then North 00 degrees 33 minutes 27 seconds West, along the easterly line of said Outlot A, a distance of 113.37 feet to the northeast comer of said Outlot A; thence South 89 degrees 26 minutes 33 seconds West, along the northerly line of said Outlot A, a distance of 85.87 feet; thence North 89 degrees 25 minutes 09 seconds East, a distance of 261.47 feet; thence North 00 degrees 35 minutes 05 seconds West, a distance of 29.09 feet; thence North 89 degrees 24 minutes 55 seconds East, a distance of 112.47 feet; thence South 65 degrees 39 minutes 10 seconds East, a distance of 229.09 feet; thence North 54 degrees 12 minutes 00 seconds East, a distance of 67.98 feet; thence South 35 degrees 48 minutes 00 seconds East, a distance of 50.00 feet; thence North 54 degrees 12 minutes 00 seconds East, a distance of 80.00 more or less to a line 207.00 feet easterly and parallel with the east line of the Northeast Quarter of the Northwest Quarter; thence South 00 degrees 14 minutes 52 seconds East, along said parallel line a distance of 2.54 feet; thence North 89 degrees 45 minutes 45 seconds East, a distance of 15.00 feet to the west line of Outlot A, Old Village Hall; thence South 00 degrees 14 minutes 52 seconds East, along said west line of Old Village Hall, a distance of 27.71 feet to the southwest comer of 148066v8 18 said Outlot A; thence South 88 degrees 48 minutes 16 seconds East, along the south line of said Outlot A, a distance of 59.88 feet to the southeast comer of said Outlot A; thence North 00 degrees 14 minutes 52 seconds West, along the easterly line of said Outlot A, a distance of 32.53 feet; thence South 88 degrees 48 minutes 24 seconds East, a distance of 0.48 feet to the southwesterly line of Great Plains Boulevard; thence southeasterly along said southwesterly line of Great Plains Boulevard to its intersection with the north line of the Chicago, Milwaukee, S1. Paul and Pacific Railroad Company's right of way, as now laid out and established; thence southwesterly along the north line of the Chicago, Milwaukee, S1. Paul and Pacific Railroad Company's right of way to the point of beginning. Which legal description may be revised based on the platted legal description following the recording of the plat for the Chanhassen Transit Station, City of Chanhassen, Carver County, Minnesota, consistent with the preliminary plat for the Chanhassen Transit Station, prepared by Kimley-Horn and Associates, Inc., dated October 19,2009 [Exact legal description pursuant to Commitment for Title Insurance and in accordance with the survey and plat as provided hereunder to govern]. 148066v8 19 EX rt I B L --r D RELOCATION AGREEMENT TillS RELOCATION AGREEMENT ("Agreement"), dated for reference purposes only, the _ day of , 20~ by and between BLOOMBERG COMPANIES INCORPORATED, a Minnesota corporation ("Seller"), and the CITY OF CHANHASSEN, a Minnesota municipal corporation ("City"). . .. RECITALS A. The City is acquiring property from Seller in accordance with the terms of the Purchase Agreement to which this Agreement is attached as an Exhibit for the construction of a transit station ("Purchase Agreement"), for the property legally described in Exhibit A, attached her~to and incorporated herein ("Property"). B. The City is obligated to provide certain relocation services and other benefits to Seller pursuant to the Uniform Relocation Assistance Act (the "Act") and other applicable law. Seller has been advised of its rights and payments that Seller may be eligible to receive pursuant to the Act including payments for Minimum Compensation under Minn. Stat. 117:187. C. Seller acknowledges it has sought and received the advice of legal counsel and has been specifically advised as to relocation, moving, reestablishment, and other costs that may be available to the Seller under the Act. D. Seller and Purchaser desire to enter into this Agreement to confirm their understanding of the Seller's release, sale and assignment of any claim for any relocation benefits and/or other relocation costs due or payable to Seller, whether pursuant to the Act or otherwise. NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements hereinafter contained, including the Purchase Agreement, and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Relocation Payment.. The City will pay Seven Hundred Twenty-six Thousand Five Hundred Forty Eight and No/lOO ($726,548.00) under the terms of the Purchase Agreement, which amount includes any and all amounts for minimum compensation damages and relocation expenses under the Act resulting from the City's acquisition of the Property under the terms of the Purchase Agreement. 2. Seller's Acknowledgements. Effective as of the date hereof, Seller hereby acknowledges Seller has consulted a relocation specialist and the Relocation Payment provided hereunder includes a negotiated amount and full payment for Relocation Benefits and any and all amounts for Minimum Compensation Benefits required under the Act. and any other applicable state and federal eminent domain provisions with respect to the Property and the full Scene Shop, as further identified in the Purchase Agreement, whether fully located on the Property or property abutting the Property identified under the terms of the Agreement. Seller releases and discharges the City, its officers, employees, agents, successors and assigns, of and from any and all liability can claims, at law or in equity, and under any state or federal law, for additional relocation expenses or real and personal property taken, including damages, interest, and costs, arising out of or in connection with the acquisition of the Property. / 3. Effective as of the date hereof, Seller hereby sells, transfers and assigns to the City any benefits, payments, claims or other rights due or payable to Seller pursuant to the Act (or other federal or state law provisions) with respect to the Property. 4. Seller acknowledges that it has freely assigned such rights of its own volition. 5. Seller acknowledges that it has assigned such rights with full knowledge of the specific relocation benefits to which it would otherwise be entitled. 6. This Agreement may be executed in any number of counterparts, each of which shall be anoriginal, but all of which together shall constitute one instrument. 7. This Agreement shall be null and void if the Agreement shall terminate or if Closing under the Agreement shall fail to occUr for any reason. IN WITNESS WHEREOF, this Release of Relocation Benefits Agreement has been executed by the parties hereto as of the day and year first above written. SELLER: BLOOMBERG COMPANIES INCORPORATED By: By: PURCHASER: CITY OF CHANHASSEN By: , Mayor And: , City Manager 148066v8 21 EXHIBIT A Le2al descriution of Prouertv: That part ofthe Northeast Quarter of the Northwest Quarter of Section 13, Township 116, Range 23 which lies North of a line parallel with and 56.50 feet northerly of the Chicago, Milwaukee, S1. Paul and Pacific Railroad Company main tract center line as now laid out and established, East of the plat of Frontier Cinema Addition, lying West of the Westerly line of Highway 101 and South of that part of the Northeast Quarter of the Northwest Quarter of Section 13, Township 116, Range 23 described as follows: Commencing at a point on the North line of said Section 13, distant 312.0 feet West from the North Quarter comer thereof; thence South at right angles to said North line 33.0 feet to the actual point of beginning; thence continuing South along the last described course 94.66 feet to the Southerly right-of-way line of Highway 101; thence Southeasterly along said Southerly right-of-way line a distance of 12.58 feetalong a curve concave to the Southwest, having a delta of 2 degrees 33 minutes 55 seconds and a radius of281.00 feet; thence South 38 degrees 51 minutes 39 seconds East a distance of235.02 feet; thence South 56 degrees 58 minutes 06 seconds West a distance of 197.68 feet; thence North 88 degrees 06 minutes 20 seconds West, parallel with the North line of said section, a distance of 354.91 feet; thence North 1 degree 11 minutes 04 seconds East a distance of76.15 feet; thence West parallel with said north line 311.88 feet; thence North parallel withthe West line of said Northeast Quarter ofthe Northwest Quarter a distance of319.03 feet to a point 33.0 feet South of the North line of said Section 13; thence East parallel with said North line a distance of 675.18 feet to the point of beginning, Carver County, Minnesota except that part commencing at a point, said point being the northeast comer of the Northwest Quarter of Section .13, Township 116, Range 23; running thence West on the North Section line of Section 13, Township and Range aforesaid, a distance of252 feet; thence due South a distance of 188 feet to a point; thence due East a distance of 60 feet to a point which is the point of beginning of the land herein to be described; thence due South a distance of 196 feet to a point; thence due East a distance of 60 feet to a point; thence due North a distance of 196 feet to a point; thence due West a distance of 60 feet to the place of beginning. Said tract being in the NE 1/4 ofNW 1/4 of Section 13, Township 116, Range 23 West. And except the following described parcel: That part of the Northwest Quarter of Section 13, Township 116, Range 23, Carver County, Minnesota, described as follows: Commencing at the Northeast comer of said Northwest Quarter; thence South along the East line of said Northwest Quarter a distance of351.5 feet; thence West at right angles 192.0 feet more or less to its intersection with a line 192.0 feet West of and parallel with the East line of said Northwest Quarter, as measured along a line parallel with the North line of said Northwest Quarter, to the actual point of beginning; thence continuing along the last described course 15.0 feet; thence North parallel with the East line of said Northwest Quarter to a line 303.0 feet South of and parallel with the North line of said Northwest Quarter, as measured along a line parallel with the East line of said Northwest Quarter; thence East parallel with the North line of said Northwest Quarter a distance of 15.0 feet to a line 192.0 feet West of and parallel with the East line of said Northwest Quarter, as measured along a line 148066v8 22 parallel with the North line of said Northwest Quarter; thence South parallel with the East line of said Northwest Quarter to the point of beginning. To be platted as Lot 1, Block 2 and Outlot B, Chanhassen Transit Station, City of Chanhassen, Carver County, Minnesota, as shown on the preliminary plat for the Chanhassen Transit Station, prepared by Kimley-Hom and Associates, Inc., dated October 19,2009 [Exact legal description pursuant to Commitment for Title Insurance and in accordance with the survey and plat as provided hereunder to govern]. 148066v8 23 ~~~ ~~ 0 g: :;;: 8 ~ ,..... '" C> C> co 13 ;: "1J ., o "'C ro ., r-T -< )> n ..Q C V1 r-T o ::J ~ OJ "'C Ci) Iii " Q ~ ii> '" " ~ 0: D 2;' " '" ~ ([) Q) ~ ---++ ~'clll, (\I' ., w.r ~ ) C' tw' I!::~. ,f .. ~ - .. c.r.> !7' 'i,?>- Y'" "L,'O 121_ - - ~I.* ~,- -!'1G' - ~'.'" L!.!P ~~ .tel_ 5~ - z.;: ~_. t~~' /'0_ ;01 _ :1'0 " (Xl ~i..J W,lIl' Li'lM 0 ~ Jo W - .. Itc:.;: 0 ~ L 'I.: .". ., , .'~" '.. ,"'::J ",D# -if 8:= I. -~ ~ ~ - ~ '. ~~ j:lP' ... & .-.~ "'0'::).' I,;, ,.~ r 1" ill '- , PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENT (Tax Parcel No. ) .4' THIS AGREEMENT (the "Agreement") made this , * day of N--'O ~ , 2009, by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation ("City") with offices at 7700 Market Boulevard, Chanhassen, Minnesota 55317, and BLOOMBERG COMPANIES INCORPORATED, a Minnesota corporation, whose address is 525 West 78th Street, Chanhassen, Minnesota 55317 ("Owner"). RECITALS A. The Owner owns real property located in the City ofChanhassen, Carver County, Minnesota, legally described on Exhibit "A" attached hereto and incorporated herein ("Subject Property"), also referred to as Tax Parcel No. B. The City of Chanhassen intends to have constructed street, storm drainage, water main, and sanitary sewer improvements (the "Public Improvement"), in conjunction with Southwest Metro Transit's construction of a Downtown Parking Ramp. A copy of the Engineering Feasibility Report is attached hereto and incorporated herein as Exhibit "B". The current estimated project cost of the Public Improvement is $1,822,264.00 including but not limited to land acquisition, building demolition, tenant relocation, engineering, testing, financing, legal, inspection, and construction costs. C. herein. Owner is requesting the project and is in agreement with the assessment set forth NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS SET FORTH HEREIN, THE PARTIES AGREE AS FOLLOWS: 1. ASSESSMENT. The Subject Property shall be assessed $739,553.00 by the City The assessment shall be spread over eight years, together with six percent interest (6 %) per year on 144622v06 1 D1\,TV ._1 f\}{\"'t ,"')Of\O ~t+ctCh W\ ~ ~ ~ f the unpaid balance. Interest shall accrue from February 1,2010, however payment of the special assessments will be deferred to taxes payable in 2012. 2. WAIVER. The Owner, by signing this Agreement, waives any and all procedural and substantive objections to both the Public Improvement and the special assessment against the Subject Property, including but not limited to hearing requirements and any claims that the assessment exceeds the benefit to the Subject Property. The Owner waives any appeal rights otherwise available pursuant to Minn. Stat. ~ 429.081. 3. BINDING EFFECT; RECORDING. This Agreement shall be binding upon the Owner and the Owner's successors and assigns. This Agreement may be recorded against the title to the Subject Property. CITY OF CHANHASSEN By: Thomas A. Furlong, Mayor By: Todd Gerhardt, City Manager/Clerk OWNER: BLOOMBERG COMPANIES INCORPORATED By: Its~ By: ~~ V: t-< Pv---,(lU- Its 144622v06 2 Dl\TV .....1 "In" 1"lf\(\O STATE OF MINNESOTA ) ( ss. COUNTY OF CARVER ) The foregoing instrument was acknowledged before me this day of ,2009, by Thomas A. Furlong and by Todd Gerhardt, the Mayor and City Manager/Clerk of the City of Chanhassen, a Minnesota municipal corporation pursuant to the authority granted by its City Council. Notary Public STATE OF MINNESOTA ) .11 ~I/~ 0 (ss. COUNTYOF~ ) . I The foregoing instrument was aclrnowledoet before me this {(J ~Y_~f / 1~009,by CLA-'1IO/<J .. ~br;:lbU-JJS~ ' the _E X. fi:.<!- u rl V E.. -- Vie is. PR.1i )t.oGMr"t>fBloomberg Companies Incorporated, a Minnesota corporation, on behalf of the corporation. .& THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNUTSON Professional Association 1380 Corporate Center Curve, Suite 317 Eagan, MN 55121 Telephone: (651) 452-5000 RNK: SID 144622v06 3 D1\.TV ._1 {\f{\"t ,,,noo EXHmIT "A" TO . PUBLIC IMPROVEMENT AND ASSESSMENT AGREEMENT DESCRIPTION OF THE SUBJECT PROPERTY Tax Parcel No. Legally described as: 144622v06 4 Dl\,TV ....1 f\/n") '''(\00 EXHIBIT "B" TO PUBLIC IMPROVEMENT AND ASSESSMENT AGREEMENT ENGINEERING FEASIBILITY REPORT 144622v06 5 D1\.TV ....1 (\f{\"') 1'"t{\{\O RELOCATION AGREEMENT THIS RELOCATION AGREEMENT ("Agreement"), dated the _ day of , 20_, by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation ("City") and INTERNA TIONAL THEA TERS CORPORA TION, a Minnesota corporation ("Tenant"). RECITALS A. The City is acquiring property from Bloomberg Companies, Inc. ("Seller") in accordance with the terms of a Purchase Agreement between Seller and the City for the construction of a transit station ("Purchase Agreement"), for the property legally described in Exhibit A, attached hereto and incorporated herein ("Property"). B. Tenant leases from Seller a scene shop located in the northwestern portion of the Property ("Scene Shop") under a month to month tenancy. C. As part of the acquisition, the City desires to terminate Tenant's lease effective March 1,2010; D. The City is obligated to provide certain relocation services and other benefits to Tenant pursuant to the Uniform Relocation Assistance Act (the "Act") and other applicable law. Seller has been advised of its rights and payments that Tenant may be eligible to receive pursuant to the Act. E. Tenant acknowledges it has sought and received the advice of legal counsel and has been specifically advised as to relocation, moving, reestablishment, and other costs that may be available to the Tenant under the Act. F. Tenant and City desire to enter into this Agreement to confirm their understanding of the Tenant's lease termination, release, sale and assignment of any claim for any relocation benefits and/or other relocation costs due or payable to Tenant, whether pursuant to the Act or otherwise. NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements hereinafter contained and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties, for themselves, their successors and assigns, agree as follows: 1. Relocation Payment. The City will pay for Relocation Benefits under the Act resulting from the City's acquisition of the Scene Shop under the terms of the Purchase Agreement and termination of Tenant's Lease effective March 1,2010, estimated at One Hundred Thousand and no/100 ($100,000.00). ~~kV\r\~~"+ :It- S"" 2. Tenant's Acknowledgements. a. Effective as of the date hereof, Tenant hereby acknowledges Seller has consulted a relocation specialist and the Relocation Payment provided hereunder includes a negotiated amount and full payment for Relocation Benefits and any and all amounts required under the Act and any other applicable state and federal eminent domain provisions with respect to the City's acquisition of the Scene Shop and termination of the Tenant's Lease effective March 1, 2009, including any portion of the Scene Shop located on property abutting the Property identified under the terms of the Agreement. b. Tenant releases and discharges the City, its officers, employees, agents, successors and assigns, of and from any and allliability.can claims, at law or in equity, and under any state or federal law, for additional relocation expenses or real and personal property taken, including damages, interest, and costs, arising out of or in connection with the acquisition of the Property. c. Tenant acknowledges that it received notice of the need to vacate the Property more than 90 days prior to the March 1, 2009 lease termination date. 3. Effective as of the date hereof, Tenant hereby sells, transfers and assigns to the City any benefits, payments, claims or other rights due or payable to Tenant pursuant to the Act (or other federal or state law provisions) with respect to Tenant's Lease of the Property. 4. Tenant acknowledges that it has freely assigned such rights of its own volition. 5. Tenant acknowledges that it has assigned such rights with full knowledge of the specific relocation benefits to which it would otherwise be entitled. 6. 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. IN WITNESS WHEREOF, this Relocation Agreement has been executed by the parties hereto as of the day and year first above written. 2 STATE OF MINNESOTA ) )ss. COUNTY OF ) day of of , on its behalf. The foregoing instrument was acknowledged before me this , 2009, by , the , a Notary public CITY: CITY OF CHANHASSEN By: , Mayor And: , City Manager STATE OF MINNESOTA ) )ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2009, by and , the Mayor and City Manager of the City of Chanhassen, a Minnesota municipal corporation, on its behalf. Notary Public 3 i EXHIBIT A Le2:al description of Property: That part of Bloomberg's Property, City of Chanhassen, Carver County, Minnesota described as follows: That part of the Northeast Quarter of the Northwest Quarter of Section 13, Township 116, Range 23which lies North of the Northerly line of the Chicago, Milwaukee, St.Pauland Pacifiq Railroad Company's main track center line as now laid out and established, East of the plat of Frontier Cinema Addition, lying West of the Westerly line of Highway 101 and South of that part of the Northeast Quarter of the Northwest Quarter of Section 13, Township 116, Range 23, described as follows: Commencing at a point on the North line of said Section 13, distant 312.0 feet West from the North 1/4 comer thereof; thence South at right angles to said North line 33.0 feet to the actual point of beginning; thence continuing South along the last described course 94.66 feet to the Southerly r/w line of Highway 101, thence Southeasterly along said Southerly r/w line a distance of 12.58 feet along a curve concave to the Southwest, having a delta of 2 degrees 33 minutes 55 seconds and a radius of 281.00 feet; thence South 38 degrees 51 minutes 39 seconds East a distance of235.02 feet; thence South 56 degrees 58 minutes 06 seconds West a distance of 197.68 feet; thence North 88 degrees 06 minutes 20 seconds West, parallel with the North line of said section, a distance of 354.91 feet thence North 1 degree 11 minutes 04 seconds East a distance of 76.15 feet; thence West parallel with said North line 311.88 feet; thence North parallel with the West line of said NE 1/4 of the NW 1/4 a distance of 319.03 feet to a point 33.0 feet South of the North line of said Section 13; thence East parallel with said North line a distance of 675.18 feet to the point of beginning, Carver County, Minnesota. To be platted as Lot 1, Block 2 and Outlot B, Chanhassen Transit Station, City of Chanhassen, Carver County, Minnesota (consisting of approximately 76,605 square feet), as shown on the preliminary plat for the Chanhassen Transit Station, prepared by Kimley- Horn and Associates, Inc., dated October 19,2009 [Exact legal description pursuant to Commitment for Title Insurance and in accordance with the survey and plat as provided hereunder to govern]. 4 / / '.:, ( RELOCATION AGREEMENT TIDS RELOCATION AGREEMENT ("Agreement"), dated for reference purposes only, the J.L day of nJ tP ~ , 20~ by and between BLOOMBERG COMPANIES INCORPORA TED, a Minnesota corporation ("Seller"), and the CITY OF CHANHASSEN, a Minnesota municipal corporation ("City"). " RECITALS A. The City is acquiring property from Seller in accordance with the terms of the Purchase Agreement to which this Agreement is attached as an Exhibit for the construction of a transit station ("Purchase Agreement"), for the property legally described in Exhibit A, attached her~to and incorporated herein ("Property"). B. The City is obligated to provide certain relocation services and other benefits to Seller pursuant to the Uniform Relocation Assistance Act (the "Act") and other'applicable law. Seller has been advised of its rights and payments that Seller may be eligible to receive pursuant to the Act including payments for Minimum Compensation under Minn. Stat. 117 ~ 187. C. Seller acknowledges it has sought and received the advice of legal counsel and has been specifically advised as to relocation, moving, reestablishment, and other costs that may be available to the Seller under the Act. D. Seller and Purchaser desire to enter into this Agreement to confirm their understand1ng of the Seller's release, sale and assignment of any claim for any relocation benefits and/or other relocation costs due or payable to Seller, whether pursuant to the Act or otherwise. NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements hereinafter contained, including the Purchase Agreement, and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Relocation Payment. The City will pay Seven Hundred Twenty-six Thousand Five H\lIldred Forty Eight and No/lOO ($726,548.00) under the terms of the Purchase Agreement, which amount includes any and all amounts for minimum compensation damages and relocation expenses under the Act resulting from the City's acquisition of the Property under the terms of the Purchase Agreement. 2. Seller's Acknowledgements. Effective as of the date hereof, Seller hereby acknowledges Seller has consulted a relocation specialist and the Relocation Payment provided hereunder includes a negotiated amount and full payment for:Relocation Benefits and any and all amounts for Minimum Compensation Benefits required under the Act' and any other applicable state and federal eminent domain provisions with respecqo the Property and the full Scene Shop, 't#C t it ,: ,,~,~:";';' f" ~ ""\''''';1 "\ ;' as further identified in the Purchase Agreement, whether fully located on the Property or property. abutting the Property identified under the terms of the Agreement. Seller releases and discharges the City, its officers, employees, agents, successors and assigns, of and from any and all liability can claims, at law or in equity, and under any state or federal law, for additional relocation expenses or real and personal property taken, including damages, interest, and costs, arising out of or in connection with the acquisition of the Property. 3. Effective as of the date hereof, Seller hereby sells, transfers and assigns to the City any benefits, payments, claims or other rights due or payable to Seller pursuant to the Act (or other federal or state law provisions) with respect to the Property. 4. Seller acknowledges that it has freely assigned such rights of its own volition. 5. Seller acknowledges that it has assigned such rights with full knowledge of the specific relocation benefits to which it would otherwise be entitled. 6. 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. 7. This Agreement shall be null and void if the Agreement shall terminate or if Closing under the Agreement shall fail to occur for any reason. IN WITNESS WHEREOF, this Release of Relocation Benefits Agreement has been executed by the parties hereto as of the day and year first above written. SELLER: BLOO~. CORPORATED By: By: /J -+- 11, ~ . ~ l/1{lJt. ~ PURCHASER: CITY OF CHANHASSEN By: , Mayor And: , City Manager EXHIBIT A Lee:al description of Property: That part ofthe Northeast Quarter of the Northwest Quarter of Section 13, Township 116, Range 23 which lies North of a line parallel with and 56.50 feet northerly of the Chicago, Milwaukee, S1. Paul and Pacific Railroad Company main tract center line as now laid out and established, East of the plat of Frontier Cinema Addition, lying West of the Westerly line of Highway 101 and South of that part of the Northeast Quarter of the Northwest Quarter of Section 13, Township 116, Range 23 described as follows: Commencing at a point on the North line of said Section 13, distant 312.0 feet West from the North Quarter comer thereof; thence South at right angles to said North line 33.0 feet to the actual point of beginning; thence continuing South along the last described course 94.66 feet tothe Southerly right-of-way line of Highway 101; thence Southeasterly along said Southerly right-of-way line a distance of 12.58 feet along a curve concave to the Southwest, having a delta of2 degrees 33 minutes 55 seconds and a radius of281.00 feet; thence South 38 degrees 51 minutes 39 seconds East a distance of235.02 feet; thence South 56 degrees 58 minutes 06 seconds West a distance of 197.68 feet; thence North 88 degrees 06 minutes 20 seconds West, parallel with the North line of said section, a distance of 354.91 feet; thence North 1 degree 11 minutes 04 seconds East a distance of 76.15 feet; thence West parallel with said north line 311.88 feet; thence North parallel with the West line of said Northeast Quarter of the Northwest Quarter a distance of319.03 feet to a point 33.0 feet South of the North line of said Section 13; thence East parallel with said North line a distance of675.18 feet to the point of beginning, Carver County, Minnesota except that part commencing at a point, said point being the northeast comer of the Northwest Quarter of Section.13, Township 116, Range 23; running thence West on the North Section line of Section 13, Township and Range aforesaid, a distance of 252 feet; thence due South a distance of 188 feet to a point; thence due East a distance of 60 feet to a point which is the point of beginning of the land herein to be described; thence due South a distance of 196 feet to a point; thence due East a distance of 60 feet to a point; thence due North a distance of 196 feet to a point; thence due West a distance of 60 feet to the place of beginning. Said tract being in the NE 1/4 ofNW 1/4 of Section 13, Township 116, Range 23 West. And except the following described parcel: That part of the Northwest Quarter of Section 13, Township 116, Range 23, Carver County, Minnesota, clescribed as follows: Commencing at the Northeast comer of said Northwest Quarter; thence South along the East line of said Northwest Quarter a distance of 351.5 feet; thence West at right angles 192.0 feet moreor less to its intersection with a line 192.0 feet West of and parallel with the East line of said Northwest Quarter, as measured along a line parallel with the North line of said Northwest Quarter, to the actual point of beginning; thence continuing along the last described course 15.0 feet; thence North parallel with the East line of said Northwest Quarter to a line 303.0 feet South of and parallel with the North line of said Northwest Quarter, as measured along a line parallel with the East line of said Northwest Quarter; thence East parallel with the North line of said Northwest Quarter a distance of 15.0 feet to a line 192.0 feet West of and parallel with the East line of said Northwest Quarter, as measured along a line 148066v8 22 y y parallel with the North line of said Northwest Quarter; thence South parallel with the East line of said Northwest Quarter to the point of beginning. To be platted as Lot 1, Block 2 and Outlot B, Chanhassen Transit Station, City of Chanhassen, Carver County, Minnesota, as shown on the preliminary plat for the Chanhassen Transit Station, prepared by Kimley-Horn and Associates, Inc., dated October 19,2009 [Exact legal description pursuant to Commitment for Title Insurance and in accordance with the survey and plat as provided hereunder to govern]. 148066v8 23 G z (5 . z-S w::2: o o a: ~ w>- CL Q) '0 C,,) C @ WCij co ~ ~ ~ ...c - c ctl Q) o ~ I- ctl CL Q) ::} 000 Q)- ~ c Q) Q) ~ ~ ctl CL ctlC Q.Q) '(3 E 'E ~ CLCL '0 - Q) en ::} Q) ~ ~ C,,) Q) C,,)- <( C Q) o,g Q) ctl COCij CO G z Z ...: z>- G W CO o O.c a:~ W CL ...: >- o ~NNMM~~~~~~~~rorommo ~~~~~~~~~~~~~~~ ~ N 00000000000000000000 NNNNNNNNNNNNNNNNNNNN ~~~~~~~~~~~~~~~~~~~~ 00000090900099990000 ooNooNooNroNroNooNroNroNooNooN 00000000000000000000 ~~~~~~~~~o~~~o~o~o~~ o ~NNMM~~~~~0~~rorommo orom~~~~~m~ ,,!N"":I':O?I':~<C?O?"? m~~~~~rooo~ ~o~m~~~oo~ "!. ~ ~ ~_ ~ "!. 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'C ~ f .11\0 ...-.( (i. f CHANHASSEN STATION MASTER DEVELOPMENT SCHEDULE Item Date City Council receives revised feasibility study and calls public hearing for November 23 November 9,2009 Planning Commission considers site plan and preliminary plat November 17, 2009 City Council considers: . Public hearing on revised feasibility study . Purchase Agreement with Bloomberg Companies . Cooperative Agreement with SouthWest Transit . Redevelopment Agreement with Bloomberg Companies . Special Assessment Agreement with Bloomberg Companies . Site Plan and Preliminary and Final Plat November 23,2009 Next City Council meeting (if needed) December 14, 2009 A #<1\ e..~ \h\~I>'\ t' ~ '7