10. Purchase/Repurchase Agreement-Lot 4 & Outlot A, Market Square AdditionJ
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CITY OF �
CHAWHASSEX
690 COULTER DRIVE • P.O. BOX 147 0 CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
MEMORANDUM
TO: Mayor and City Council
FROM: Don Ashworth, City Manager
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' DATE: February 28, 1994
SUBJ: Terms and Conditions of the Purchase/Repurchase Agreement, Lot 4 and Outlot
' A, Market Square Addition
' The city council acted to place this item on to the agenda Monday evening with the
understanding that the city attorney would prepare a report discussing the terms and conditions
' of the purchase and repurchase agreement entered into by the HRA and Bloomberg Companies.
Attached is that report. It was my understanding that the council did not intend to take any
specific action Monday evening, but did want to become knowledgeable of the
' purchase /repurchase agreements prior to considering any specific development proposals from
Bloomberg Companies.
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i CAtIPBELL , KNUTS ON , SCOTT & FUCHS , P . A
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17,
Feb 24,94 14 :58 No.005 P.02
CAMPBELL, PBELL, KNUTSON, SCOTT & FUC,I IS, I'.A.
Attorneys at Lain
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February 24, 1994
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Mr. Don Ashworth
Chanhassen City Hall
690 Coulter Drive, Box 147
Chanhassen, Minnesota 55317
RE: Outlot A and Lot 4, Block 1
MARKET SQUARE
Dear Don:
(612) "5000
I;ax (017) 452.5550
You asked me to outline the staves of Outlot A, MARKET SQUARE and Lot 4, Block 1,
MARKET SQUARE (collectively the "subject property ").
On February 27, 1992, the Chanhassen HRA ( "HRA ") entered into a contract for deed to
purchase the subject property from Bloomberg Companies, Incorporated ( "Bloomberg "). The HRA
subsequently received a warranty deed from Bloomberg. On February 28, 1992, the HRA granted
Bloomberg an option to repurchase the subject property. The option expires on March 1, 1995.
Based upon the above documents and the exhibits attached to them, this is the current status of
the subject property:
1. The HRA owns the property.
2. Bloomberg has an option to repurchase the property until March 1, 1995,
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3. If the HRA receives an offer from a third party to purchase the subject property while
Bloomberg still has an option to buy it:
a. Bloomberg can match the third party's offer and buy the property.
b. Bloomberg can decline to match the offer and not purchase the property. If this
happens, the HRA has to pay Bloomberg an additional $1.00 per square foot for
the subject property.
Soli(( 317 • Eigandalc. Office Center 0 1380 Corporate Center Curve • Eagari, MN 55121
CAMPBELL, KNUTSON, SCOTT & FUCHS, P.R Feb 24,94 14 :58 No.005 P.0
{
Mr. Don Ashworth
February 24, 1994
Page 2
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If the entire subject property is condemned, Bloomberg'& option is automatically
terminated.
If Bloomberg exercises its option to purchase the subject property:
Any proposed development of the subject property by Buyer shall be
subject to the approval of Seller. In determining the appropriateness of
any such proposed development, the Seller shall take into account the
proposed use of the subject property, the design of the proposed
development, the architecture and construction of any proposed
structures, the proposed access routes, parking availability and proposed
stgnage. If the proposed development is unacceptable to Seller due to any
of the foregoing factors and the proposed development is denied by
Seller, the parties shall treat such dental as a third !party offer In
accordance with Section 3.2 of the Real Estate Option Agreement of the
parties dated February , 1992. In such case, Seller shall pay
Buyer the sums set forth to Section 3.2 of said Option Agreement,
This means that if the HRA turns down Bloomberg's development proposal for one of
the specified reasons, then the HRA keeps the subject property but has to pay Bloomberg
an additional $1.00 per square foot for it.
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