1k. Approve Loan Agreement Between the Met Council and City Re: Protective Acquisition of hishway Right of Way1 -: -
/k.
CITY OF
CHANHASssw
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Don Ashworth, City Manager
FROM: Bob Generous, Planner II
DATE: September 15, 1995
SUBJ: Loan Agreement Between the Metropolitan Council and the City of Chanhassen
for Protective Acquisition of Highway Right -of -way, Rottlund Property
(Highway 212 Corridor)
BACKGROUND
In December, 1993 and January, 1994, the Ci Co cil passed resolutions authorizing staff to
submit applications to the Metropolitan Co for' 'ght -of -Way Acquisition Loan Fund
(RALF) monies to purchase the Rottlund pr ' 'erty, f erly the Charles Adelmann property,
parcel #1 on the attached map, within the ghway 2 corridor.
The Metropolitan Council has establish a revolving 1 .
purchasing right -of -ways within the s trunk highway
construction of these highways. T loans bear no int
the state highway department p ses the property from
repurchase price is the same " e established at the time
the local government.,
Parcel 1 Rottlund Property
fund to assist local governments in
>tem in advance of the actual
st and are repaid at the time that
4 e local government. The
ff.;he purchase of the property by
The property is located on the south side of Rice Marsh Lake approximately 642 feet west of
the eastern city limits of Chanhassen and Eden Prairie. The total area to be acquired consists
MEMORANDUM
Don Ashworth, City Manager
September 15, 1995
Loan Agreement Between the Metropolitan Council and the City of Chanhassen for Protective
Acquisition of Highway Right -of -way '
Page 2
of approximately thirty (30) acres of which about half is developable and half is marsh land '
and lake. The property includes the actual right -of -way for Highway 212 (consisting of 6.167
acres) and a piece of property north of the highway that staff believes will be severed by the
highway and thus lose it's economic value (consisting of approximately 9 acres of developable ,
land and 14 acres of wetland and lake). This additional property is designated as parks and
open space in the City's 2000 Land Use Plan. '
The Minnesota Department of Transportation (MNDOT) has approved a administrative
settlement for a purchase price of $400,000.00. MNDOT had originally certified an appraisal '
of the property based on a value of $23,500 per developable acre. Staff negotiated a purchase
price of $26,490 per developable acre.
RECOMMENDATION
Staff recommends that the City Council approve the following motion:
"The City Council authorizes the Mayor and City Manager to execute the Loan Agreement
Between the Metropolitan Council and the City of Chanhassen for Protective Acquisition of
Highway Right -of -way for purchase of property within the Highway 212 corridor."
Attachments:
1. Property Location Map
2. Parcel Map '
3. Loan Agreement Between the Metropolitan Council and the City of Chanhassen for
Protective Acquisition of Highway Right -of -way
LOAN AGREEMENT NO. L -95- 6
LOAN AGREEMENT BETWEEN THE METROPOLITAN COUNCIL
AND THE CITY OF CHANHASSEN
FOR PROTECTIVE ACQUISITION OF HIGHWAY RIGHT
THIS AGREEMENT is entered into this day of
_ , 1995, by THE
METROPOLITAN COUNCIL ( "the Council "), and THE CITYOF CHANHASSEN ( "the Recipient ").
' WHEREAS, the Council is authorized by Minnesota Statutes section 473.167, subdivision 2, to make
loans to counties, towns, and cities situated within the metropolitan area for the purpose of
acquisition of property within a proposed state trunk highway right -of -way when acquisition is
' necessary to avert the imminent conversion of such property to a use which would jeopardize the
property's availability for highway construction, and
' WHEREAS, the Recipient is an eligible governmental unit and has applied for such a loan to
accomplish the acquisition of threatened right -of -way within the officially- mapped trunk highway 212
' corridor; and
WHEREAS; the Council has authorized that such a loan be made to the - Recipient from the
' Metropolitan Right -of -Way Acquisition Loan Fund.
NOW, THEREFORE, in consideration of the mutual promises and covenants in this agreement, the
' Council and the Recipient agree as follows:
I. LOAN FUNDS
' 1.01 Total Loan Amount. The Council shall loan to the Recipient, in accordance with the
loan schedule set forth in paragraph 1.02, a total loan amount not to exceed $407,500.00.
' 1.02 Loan Schedule. Upon execution of this loan agreement, the Council will advance
$400,000.00 to the Recipient for the purchase price of that real property described in Exhibit A,
which is attached to and incorporated in this agreement. The purchase price Uof pon e �t P b property
' include any buildings or structures located on any parcel of the real property. Y
Council of satisfactory and complete documentation describing the Recipient's actual appraisal,. title
evaluation, and other acquisition costs, the Council will advance to the Recipient such actual costs,
' in an amount not to exceed $7,500.00.
1.03 Authorized Use of Loan Funds. The parties agree that loan funds may be used only
' for the purchase price of the property described in Exhibit A and the acquisition costs actually
incurred by the Recipient to acquire the property described in Exhibit A. The parties agre t ha t no
pan of the loan proceeds shall be used for relocating or moving persons or property.
' further agree that loan proceeds shall not be used to clean up contaminated soil or other pollutants,
if any are discovered on the site.
II. ACCOUNTING, AUDIT, AND RECORDS REQUIREMENTS I
2.01 Separate Account. The Recipient agrees to establish and maintain a separate account '
for the loan and to maintain accurate and complete records and accounts relating to the receipt and
expenditure of all loan funds. Such accounts and records shall be kept and maintained for a period
of at least three (3) years following discharge of the loan. '
2.02 Audit. The above accounts and records of the Recipient shall be audited in the same
manner as all other accounts and records of the Recipient are audited, and may be audited and /or '
inspected on the Recipient's premises or otherwise by individuals or organizations designated and
authorized by the Council at any time, following reasonable notification, during the loan period, and
for a period of three (3) years following discharge of the loan. '
2.03 Acquisition Report. The Recipient agrees that upon completion of any acquisition, the
Recipient will submit to the Council an acquisition report, in a format to be determined by the '
Council, summarizing the acquisition costs of the property, including all eligible expenses and
acquisition costs.
2.04 Annual Report. The Recipient agrees to submit, on or before June 30 of each year '
during which this agreement is in effect, an annual report on the status of the loan, in a form to be
determined by the Council.
III. INCOME FROM PURCHASED PROPERTY
3.01 Net Rents Defined. For purposes of this agreement, "net rents" means the total gross
rent received by the Recipient from any and all tenants or users of the property, less the Recipient's
'
actual costs for necessary maintenance, repairs, taxes, insurance, and operating expenses, and
attorneys' fees associated with preparing or terminating any lease with respect to the property.
'
3.02 Transfer of Net Rents. The Recipient agrees to transfer to the Council, within forty -
five (45) days of receipt, all net rents or other money received as a result of the Recipient's
ownership of the property. For any given payment to the Council, the Recipient may estimate the
'
actual costs to be deducted from gross rent.
3.03 Adjustment for Actual Costs. Twelve (12) months from the commencement of receipt
'
of any rent by the Recipient from any property acquired with loan proceeds, the Recipient shall
provide, in a form acceptable to the Council, documentation for all actual costs for necessary
maintenance, repairs, taxes, insurance, and operating expenses, and attorneys' fees with respect to the
'
property. Upon verification and acceptance of the documentation by the Council, the Recipient shall
pay to the Council the amount, if any, determined by the Council to be necessary to adjust the
estimated deduction from gross rent to reflect the actual costs.
'
IV. LOAN DISCHARGE
4.01 Discharge Due to Conveyance to Highway Authority. If any parcel purchased with the
'
loan funds is conveyed to a highway authority for construction of a highway, the Recipient shall repay
to the Council, within thirty (30) days of receipt, the amount received from the highway authority for
'
the parcel. The amount to be repaid shall include the amount actually disbursed pursuant to
paragraph 1.02 for acquisition costs attributable to the parcel. Upon payment of the specified
amount, the Council will discharge the loan.
'
' 4.02 Discharge Due to Changes in Plan for Highway. If the Council notifies the Recipient
that the plan to construct the highway has been abandoned or the anticipated location of the highway
has changed, the Recipient shall seek the prior approval of the Council to sell the acquired property.
The Recipient shall repay to the Council, within thirty (30) days of receipt, the fair market value of
the property as determined by sale of the property in accordance with the Recipient's procedures
' required for the disposition of real property. Upon payment of the specified amount, the Council
will discharge the loan.
' 4.03 Discharge Due to Breach or Other Circumstances. If the property for any other reason
is sold, or if the Recipient materially breaches any term of this agreement, the Recipient shall repay
the amount specified in paragraph 1.02 for the purchase price of the property and the amount
' actually disbursed pursuant to paragraph 1.02 for acquisition costs. The Council agrees to notify the
Recipient of any material breach of the agreement and to provide a reasonable opportunity for the
Recipient to cure the breach. If the Recipient fails to cure the breach, the Recipient will repay the
amount specified within thirty (30) days. Upon payment of the specified amount, the Council will
' discharge the loan.
t V. GENERAL CONDITIONS
5.01 Duration of Agreement. The agreement is effective on the execution of this agreement
and remains in force and effect until the loan is discharged.
5.02 Interest. The loan made in this agreement shall bear no interest.
' 5.03 Agreement and Restrictive Covenant. The Recipient and the Council each agree that
they will execute, and the Recipient agrees that it will cause to be recorded at its own expense, an
agreement and restrictive covenant with reference to each parcel of land in which an interest is
' acquired in whole or in part from loan proceeds. The agreement and restrictive covenant shall be
substantially in the form contained as a sample in Exhibit B, which is attached to and made a part
of this agreement. It is the purpose of such agreement and restrictive covenant to limit the right of
the Recipient to convey or encumber land or interests in land acquired with loan proceeds without
the consent of the Council, and to insure that such lands and interests therein be devoted exclusively
to the state highway purposes for which they were acquired.
' 5.04 Agreement to Convey. The Recipient agrees that upon the request of the authority
authorized to construct the highway for which this right -of -way has been reserved, the Recipient will
convey the property to the authority at the same price the Recipient paid for the property, including
' costs identified in paragraph 1.02 for acquisition costs.
5.05 Rights Reserved. If the Council finds that there has been a failure to comply with the
provisions of this agreement, the Council reserves the right to take any and all actions as it deems
necessary or appropriate to protect the Council's interest, provided that the Council agrees to notify
the Recipient of any such failure to comply and to provide a reasonable opportunity to comply. The
' Recipient agrees that discharge of the loan does not invalidate continuing obligations imposed on the
Recipient by this agreement. Termination of this agreement does not alter the Council's authority
to disallow costs and recover funds on the basis of a later audit or other review, and does not alter
' the Recipient's obligation to return any funds due to the Council as a result of later audits or
corrections.
(I`
5.06 Amendments. The terms of this agreement may be changed by mutual agreement of '
the parties. Such changes shall be effective only upon the execution of written amendments signed
by authorized representatives of the Council and the Recipient. '
5.07 Compliance with Law. The Recipient agrees to conduct the activities contemplated by
this agreement in compliance with all applicable provisions of Federal, state, and local laws. The ,
Recipient further agrees to comply with all applicable laws relating to nondiscrimination, affirmative
action, and public purchase, contracting, and employment. In particular, the Recipient agrees not
to discriminate against any employee or applicant for employment because of race, color, creed, '
religion, sex, sexual orientation, national origin, marital status, disability, status with regard to public
assistance, membership or activity in a local civil rights commission, or age, and to take affirmative
action that applicants and employees are treated equally with respect to all areas of employment, '
rates of pay and other forms of compensation, and selection for training.
5.08 Indemnification. The Recipient assumes liability for, and agrees to indemnify, protect '
and hold harmless the Council from any liabilities, obligations, losses, damages, claims, injuries,
penalties, costs and expenses, including reasonable attorney's fees, arising out of the Recipient's
performance of the activities contemplated by this agreement. The Recipient shall protect and hold '
the Council harmless from any liability arising out of contamination of the property by hazardous
substances or releases of hazardous substances from the property, whether known or unknown at the
time of acquisition.
5.09 Property Maintenance. The Recipient agrees to make reasonable efforts to maintain '
the property acquired with loan funds provided under this agreement in a manner compatible with'"
the surrounding environment, as appropriate. '
IN WITNESS WHEREOF, the parties have caused this agreement to be executed by their duly ,
authorized representatives on the day and year first above written.
METROPOLITAN COUNCIL '
Approved as to form
'
Lynn M. Belgea By James J. Solem, Regional Administrator
Assistant General Counsel '
CITY OF CHANHASSEN
By '
Its '
By
Its ,
Chanagree (Adelman) '
EXHIBIT A
LEGAL DES CRIPTION
That part of the Northeast Quarter of the Northeast Quarter of Section 24, Township 116, Range
' 23, and that part of the Southeast Quarter of the Southeast Quarter of Section 13, Township 116,
Range 23, lying west of a line drawn 641.67 feet West of, measured at a right angle to and parallel
with the east line of said Northeast Quarter of Northeast Quarter and lying northerly of a line
described as follows: Commencing at the northwest corner of said Northeast Quarter of Northeast
Quarter; thence on an assumed bearing of South 0 degrees 16 minutes 21 seconds East, along the
west line of said Northeast Quarter of Northeast Quarter, a distance of 711.32 feet to the actual
' point of beginning; thence North 77 degrees 17 minutes 36 seconds East, 693.73 feet to the West line
of said East 641.67 feet and there terminating. Subject to easements. Carver County, Minnesota.
EXHIBIT B SAMPLE ONLY
AGREEMENT AND RESTRICTIVE COVENANT
THIS AGREEMENT is made and entered into this day , 19 ,
between the City of , a Minnesota municipal corporation, ( "the City "),and
the Metropolitan Council, a political subdivision of the State of Minnesota, ( "the Council ").
WHEREAS, the City has acquired [describe nature of interest] in the real property described in
Exhibit A attached hereto and incorporated herein; and
WHEREAS, the Council has contributed funds toward the acquisition of the City's interest in the real
property pursuant to the Council's Loan Program and a Loan Agreement between the Council and
the City as authorized by Minnesota Statutes section 473.167; and
WHEREAS, the Loan Program was established to provide for the acquisition of property within the
right -of way of a state trunk highway shown on an official map when necessary to [avoid imminent
conversion of such property to a use which would jeopardize the property's availability for highway
construction OR to avoid hardship for owners of homestead property located in a proposed state
trunk highway right -of -way or project].
NOW, THEREFORE, in consideration of the loan made by the Council to the City and in
consideration of the mutual agreements and covenants, the Council and City agree as follows:
1. No sale, lease, mortgage, or other conveyance, nor the creation of any easement, restriction
or other encumbrance against the real property described in Exhibit A shall be valid for any
purpose unless the written approval of the Council, or its successors, is duly filed and
recorded at the time of the filing and recording of the instrument to which such approval
pertains.
2. The real property described in Exhibit A shall not be used for any purpose except the
construction of trunk highway unless the Council, or its successors, shall consent to
such other use or uses by instrument in writing duly filed and recorded and designating the
nature, extent and duration of the use for which such consent is given.
This Agreement and Restrictive Covenant may be enforced by the Council, its successors, or by any
citizen residing within the metropolitan area as defined by appropriate action in the courts of the
State of Minnesota.
IN WITNESS WHEREOF, the parties have caused this instrument to be executed in their respective
names all as of the above date.
METROPOLITAN COUNCIL
I:A
Regional Administrator '
CITY OF
By '
Its '
NOTE: THIS FORM IS PROVIDEDAS AN EXAMPLE. THE RECIPIENTSHOULD PREPAREA PROPER INSTRUMENT
AND SUBMIT IT FOR SIGNATURE BY THE COUNCIL. I
i m
W
\ t� 1
JI
IY11
F Il �
a "oil
r 4A . .
e
I;y ;ro 41
�Irs1 � f
� 4 1 Sit
i
-
LIN
Arts, to 23 $33 LCFLS
IC 1.1 Y Fi;,?:::9 U C W ktT
4 �
t, l
100 3*3
� SCAU w rtp
, e+ •.. v w . e0. „ �, zeu ..^` t f i wb �4».5. s+.e• r s
END
P. r LE
Ciscoo @a"
. 9.1941
•,,, j 1 • e tw.t Vu
.. - OK%.da: Yat3 '
-.- • s ' - farce!
a t •- Q • � -
.tot A
4
•
r'
tl
F
t -
' .t i •1
I;
A //.
1 r'
1; !
t
E
t
•
: +.s+ 0.o +. • ERNIE • PEACOCK
'
p.Twt a, C.•t)
F
t -
' .t i •1
I;
A //.
1 r'
1; !
t
E
t
•
: +.s+ 0.o +. • ERNIE • PEACOCK
'
p.Twt a, C.•t)
'
a 1.0. •f'1 t• 14 a :•s s.lK
0.9.40.. ne a• Ce•f•.ae•t is t •• S.:+0. 7•. 'a. -0.a
•ay 71. tv •en
•]•. ri
0.rlsm6a M ri Ss n s .
• t O.r• t• , Mrs- 1]. . '9 -• 6� 6
'
in. so " a ••.4•. ref 1.691 a- a 4•• e.g.. t• 11 s at
Mft e+• .10 960.09 at a sirt a•6fs is tot {9•t a ea.
w tact W 0, 1-4 L&n.4961 0.6.10. a• t•4 •.e•: -fn:
0.444* •• aas Soft;+ 6 ls.m..• :+t. 6 0.61 i) en its
•.1.14.4.
also {•: 71st 04, e. Yfg4 H N
a* -409 Yoe 71•. at, a•,1,•:, 1667
'
.
1.••9,9.9
• ht•
'
Yw.9/l1t 946 •9 S=61
t -60
,
MOBS
f uw Yi.+ate•t M hi soo." a,etf•t a 16see r W
f
Cost 6•4 N i4 a4•t4nt 4's s• Solt" 34. 9.M le
e86.1e9 to f.a•e a afro -6 a• &vm
S 711 a.• 9 a., t -e•• - 4 0 .604
'
a.• /{ t•4 649 6lw, t,M 0..461.-06. 0.;•..•14.4
0.9 •t. tes 96o•ft t, if a.t a•►. s• .•4.{•9.14 e•p
oat b eva
3 ton w w ►•640-1, 9.11.9•: •.es• .:: t ee•n
• a9 IAe •r. •al - e -sVt 4. 14 {'•: t•f:'f' e 1!9
e.•w, is .e• - , t•f �814 atse - t: f• G a. eY4/ a• s'
'
• 5 a �� Gj
fnf-4 M eV.- V•04ff
t Gw-f•t Y•r•ste• 0. «• 4 -0l• •n 916'149 h�
6 -r ISr, r. t f ••6s• a�•w,a
t 1t4 *late- a• reatetu I—. •refs T7 6 r4• .
60-06. • solve-4 4 1••0. -st• 4 rant t, rwuts
'
teis•r..t e• : -0•ei 9.1910. T'6 0.a: e••t i a "0..1 a+s
-
141.-•9$, ` 6.w• 1e• V - ftf•s wro e.s. a6• M1
1919 49 •f••at 6 - 6 ►e, be s.sp1t 10 s4 -