1b. Approve Residential Purchase Agreements with Mark & Kari Nettesheim, 9201 and 9151 Great Plains Boulevard CITY OF MEMORANDUM
CIIANIIASSEN TO: Todd Gerhardt, City Manager
7700 Market Boulevard
PO Box 147 FROM: Todd Hoffman, Park and Recreation Director
Chanhassen, MN 55317
DATE: May 14, 2012 0W^
Administration
Phone: 952.2271100 SUBJ: Approve Residential Purchase Agreements with Mark & Kari
Fax: 952.2271110 Nettesheim, 9201 and 9151 Great Plains Boulevard
Building Inspections
Phone: 952.2271180 PROPOSED MOTION
Fax: 952.2271190
Engineering "The City Council approves residential purchase agreements with Mark & Kari
Phone: 952.2271160 Nettesheim, 9201 and 9151 Great Plains Boulevard."
Fax: 952,2271170
City Council approval requires a simple majority vote of the City Council
Finance present.
Phone: 952.2271140
Fax: 952.2271110
BACKGROUND
Park & Recreation
Phone: 952.2271120 The city is seeking to acquire two separate parcels of land, currently the site of
Fax: 952.2271110 two single- family homes, to permit the improvement of TH 101 (aka Great
Plains Boulevard) and the expansion of Bandimere Community Park. The
Recreation Center improvements include the construction of a new and safer access driveway to
2310 Coulter Boulevard the park and the expansion of amenities and attractions within the park.
Phone: 952.2271400
Fax: 952.2271404
Bandimere Community Park
Planning &
Natural Resources Bandimere Community Park is a 35 -acre property that is currently programmed
Phone: 952.2271130 primarily for youth athletics. The park features six natural grass athletic fields, a
Fax: 952.2271110 play area, picnic area and pedestrian trails.
Public Works The park was purchased from the Bandimere family in 1988 following a
7901 Park Place successful referendum to acquire additional parklands within the community.
Phone: 952.2271300 Following a second successful referendum in 1997 that included $1,410,000 to
Fax: 952.2271310
develop and improve community parks, Bandimere Community Park was
Senior Center constructed and opened to the public in June of 1999.
Phone: 952.2271125
Fax: 952.2271110 Trunk Highway (TH) 101
Web Site The City of Chanhassen, in cooperation with MnDOT and Carver County,
www.ci.chanhassen.mn.us completed a corridor scoping study for TH 101 from Lyman Boulevard to the
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
Mr. Todd Gerhardt
May 14, 2012
Page 2
Scott County line in 2007. The study identified the segment of TH 101 from
Lyman Boulevard (CSAH 18) to Pioneer Trail (CSAH 14) as the highest priority
for improvement. Improvements to this segment of TH 101 are necessary to
address existing safety deficiencies and to provide for the present and future
traffic needs of the area.
DISCUSSION
The properties being recommended for acquisition are 2 -acres and 2.5 -acres in
size and both contain a single - family dwelling with attached garages. Both
properties are owned by Mark and Kari Nettesheim. The rear parcel (9151
Great Plains Boulevard) is the larger property and has been the home of the
Nettesheim family since 1999. Acquisition of this parcel is included in the Park
and Trail Acquisition and Development CIP.
Following acquisition, the rear parcel will likely be utilized as a construction
staging site for the TH 101 improvement project. It is anticipated that the house
will be razed either to make way for the construction yard or immediately
following the conclusion of the road improvement project. In the long term,
when combined with portions of the front parcel, the property will be re-
developed as the final expansion of Bandimere Community Park. This
expansion is anticipated to include two tennis courts, a hockey rink, open skate
area, storm water ponds, a significant parking lot expansion, and new pedestrian
trails.
The proposed improvements to TH 101 include the reconstruction and widening
of the roadway to eliminate or reduce the existing safety concerns. The roadway
is currently planned to be reconstructed to a four -lane divided design.
Pedestrian/bicycle trails are also proposed along the roadway and a trail
underpass is proposed to be constructed across TH 101 in the vicinity of
Bandimere Park. Most importantly, the road project is scheduled to acquire the
Nettesheim's front parcel (9201 Great Plains Boulevard) to accommodate road
widening and a new main entrance to the park. The existing park entrance,
located 450 feet south of the proposed new entrance, is located at the crest of a
hill and presents challenging sight lines for drivers on both TH 101 and within
the park.
The properties were appraised and the City has made an offer to the Nettesheims
to purchase both parcels at their appraised values. On April 23, 2012, the
Nettesheim's accepted the City's offer of $420,000 for the rear parcel and
$220,000 for the front parcel and signed both residential purchase agreements.
These agreements were drafted on behalf of both parties by the city attorney
with consultation of the sellers and their attorney.
Mr. Todd Gerhardt
May 14, 2012
Page 3
The funding source for the rear parcel is the City's park fund and the purchase
and closing on this acquisition is only contingent upon City Council approval.
The funding source for the front parcel is the TH 101 road improvement project
and the closing on this acquisition is contingent upon both City Council
approval and receipt of the right -of -way acquisition dollars from MnDOT. A
closing for one or both parcels is tentatively scheduled for the week of May 14,
2012, pending City Council approval, to meet the Nettesheiin's financial needs
associated with the purchase of their new home.
ATTACHMENTS
1. Property Appraisals, 9151 and 9201 Great Plains Boulevard
2. Residential Purchase Agreement, 9151 Great Plains Boulevard
3. Residential Purchase Agreement, 9201 Great Plains Boulevard
4. Bandimere Community Park Expansion Plan Concept
5. TH 101 Improvements Plan, New Park Entrance Road and Pedestrian
Underpass
6. Capital Improvement Program (CIP) Detail Sheets
MARKET VALUE APPRAISAL, SUMMARY REPORT
PARCEL 18: NETTESHEIM PROPERTY
9201 GREAT PLAINS BOULEVARD
CHANHASSEN, MINNESOTA
DATE OF REPORT:
May 18, 2011
PREPARED FOR:
City of Chanhassen
c/o Campbell Knutson, PA
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, MN 55121
PREPARED BY:
Patchin Messner & Dodd
Sunset Pond Executive Offices
13967 West Preserve Boulevard
Burnsville, MN 55337
PATCHIN MESSNER & DODD
PATCHIN MESSNER & DODD
VALUATION COUNSELORS
May 18, 2011
City of Chanhassen
c/o Campbell Knutson, PA
317 Eagandale Office center
1380 Corporate Center Curve
Eagan, MN 55121
ATTN: Thomas M. Scott, Esq.
RE: Market Value Appraisal, Summary Report
Parcel 18 - Single-Family Residence
Owned by: Mark & Kari Nettesheim
9201 Great Plains Boulevard
Chanhassen, Minnesota
Dear Mr. Scott:
At your request, we have appraised the above - referenced property for the purpose of
estimating its fee simple market due to the proposed acquisition of the subject for road
improvements along TH -101 as well as changes to parking and access at adjacent Bandimere
Park.
This appraisal is intended to comply with the Uniform Standards of Professional Appraisal
Practice (USPAP) of the Appraisal Foundation, and with the provisions of Minnesota Statutes
Chapter 117. Furthermore, this appraisal is presented in a Summary reporting format, as
described in USPAP Standards Rule 2 — 2(b). As such, this report presents only summary
discussions of the data and analyses used in the appraisal process. Additional information
and documentation concerning the data and analyses of this appraisal have been retained in
our files.
The subject of this report is a rambler -style, single - family residence with three bedrooms and
one full bathroom above grade, with a partially finished basement. The site is 1.68 acres (net
of right-of-way) in size and is located at 9201 Great Plains Boulevard, Chanhassen,
Minnesota. The proposed acquisition will result in the total taking of the subject land and
improvements. Therefore, the fee simple market value of the property is being appraised.
Sunset Pond Executive Offices • 13967 West Preserve Boulevard • Burnsville, MN 55337
Phone: (952) 895 -1205 Fax: (952) 895 -1521
11
Based upon the inspection of the property on April 26, 2011, and after consideration of the
many factors influencing market value, it is our opinion that the subject has a market value,
as of April 26, 2011, of $220,000
TWO HUNDRED TWENTY THOUSAND DOLLARS
It should be noted that this letter does not qualify as an appraisal, and that the reader is
directed to the following report for the data, analyses and conclusions which support this
value estimate. The appraisal report is contingent upon the assumptions and limiting
conditions submitted within the report. The "Contingent and Limiting Conditions" section of
this report should be thoroughly read and understood before relying on any information or
analysis presented herein.
Thank you for allowing our firm to be of assistance in this matter. If you have any questions
after reading this report, feel free to contact us at your convenience.
Respectfully submitted,
PATCHIN MESSNER & DODD
3 440 1 -e9-9 Eie);
Bradley J. Elvestad
Minnesota Certified General Real Property
Appraiser License 20400593
Jason L. Messner, MAI
Minnesota Certified General Real Property
Appraiser License 4000836
PATCHIN MESSNER & DODD
21125 -18 iii
CERTIFICATION
(Real Estate)
certify that, to the best of my knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the
reported assumptions and limiting conditions, and are my personal, un-
biased professional analyses, opinions, and conclusions.
3. I have no present or prospective interest in the property that is the subject
of this report, and I have no personal interest or bias with respect to the
parties involved.
4. My compensation is not contingent upon the reporting of a predetermined
value or direction in value that favors the cause of the client, the amount of
the value estimate, the attainment of a stipulated result, or the occurrence
of a subsequent event.
5. My analyses, opinions, and conclusions were developed, and this report
has been prepared, in conformity with the Uniform Standards of
Professional Appraisal Practice of the Appraisal Foundation.
6. I have made a personal inspection of the property that is the subject of this
report.
7. The reported analyses, opinions, and conclusions were developed, and this
report has been prepared, in conformity with the requirements of the Code
of Professional Ethics and the Standards of Professional Appraisal Practice
of the Appraisal Institute.
8. The use of this report is subject to the requirements of the Appraisal
Institute relating to review by its duly authorized representatives.
9. No one provided significant professional assistance to the persons signing
this report, except as noted herein.
10. The appraisal assignment was not based on a requested minimum
valuation, a specific valuation, or the approval of a loan.
11. This appraisal cannot be completely understood without reading the
"Contingent and Limiting Conditions" section of this report, which should
be thoroughly read and understood before relying on any information or
analysis presented herein.
12. As of the date of this report, Bradley J. Elvestad has completed the
Standards and Ethics Education requirement of the Appraisal Institute for
Associate Members.
Br . Elves d Date
PATCHIN MESSNER & DODD
Valuation Counselors
21125 -18 iv
CERTIFICATION
(Real Estate)
1 certify that, to the best of my knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the
reported assumptions and limiting conditions, and are my personal, un-
biased professional analyses, opinions, and conclusions.
3. 1 have no present or prospective interest in the property that is the subject
of this report, and I have no personal interest or bias with respect to the
parties involved.
4. My compensation is not contingent upon the reporting of a predetermined
value or direction in value that favors the cause of the client, the amount of
the value estimate, the attainment of a stipulated result, or the occurrence
of a subsequent event.
5. My analyses, opinions, and conclusions were developed, and this report
has been prepared, in conformity with the Uniform Standards of
Professional Appraisal Practice of the Appraisal Foundation.
6. I have made a personal inspection of the property that is the subject of this
report.
7. The reported analyses, opinions, and conclusions were developed, and this
report has been prepared, in conformity with the requirements of the Code
of Professional Ethics and the Standards of Professional Appraisal Practice
of the Appraisal Institute.
8. The use of this report is subject to the requirements of the Appraisal
institute relating to review by its duly authorized representatives.
9. No one provided significant professional assistance to the persons signing
this report, except as noted herein.
10. The appraisal assignment was not based on a requested minimum
valuation, a specific valuation, or the approval of a loan.
11. This appraisal cannot be completely understood without reading the
"Contingent and Limiting Conditions" section of this report, which should
be thoroughly read and understood before relying on any information or
analysis presented herein.
12. As of the date of this report, Jason L. Messner has completed the
requirements under the continuing education program of the Appraisal
Institute.
9118/
Jason L. Messner, MAI Date
PATCHIN MESSNER & DODD
Valuation Counselors
21125 -18 v
SUMMARY OF SALIENT FACTS AND CONCLUSIONS
Fee Owner: Mark & Kari Nettesheim
Location: 9201 Great Plains Boulevard
Chanhassen, Minnesota
Date of Appraisal: April 26, 2011
Date of Inspection: April 26, 2011
Property Appraised: Real Property (Land & Building)
Rights & Interest Appraised: Fee Simple Market Value
Zoning: A2, Agricultural Estate District
Guiding: Residential Low Density
Site Description: The subject consists of a 1.68 -acre slightly irregular -
shaped lot with frontage and direct access to Great
Plains Boulevard /Highway 101. Great Plains
Boulevard is a highway that intersects with US -212
and Highway 5 to the north, and is the main
north /south highway serving this portion of
Chanhassen. The site is generally level, with the
exception of wetlands that are present along the
northern portion of the site.
Building Description: The lot is improved with a rambler style single - family
residence, built in 1977. It has 1,300 SF of gross
living area, with three bedrooms and a full bathroom
above grade. Additionally, the lower level is partially
finished with a den and recreational room along with
a three - quarter bathroom.
Highest and Best Use:
As Vacant: Development of a single - family residence
As Improved: Continued use as currently improved
Final Value Conclusion: $220,000
PATCHIN MESSNER & DODD
Valuation Counselors
MARKET VALUE APPRAISAL, SUMMARY REPORT
PARCEL 19: NETTESHEIM PROPERTY
9151 GREAT PLAINS BOULEVARD
CHANHASSEN, MINNESOTA
DATE OF REPORT:
May 18, 2011
PREPARED FOR:
City of Chanhassen
do Campbell Knutson, PA
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, MN 55121
PREPARED BY:
Patchin Messner & Dodd
Sunset Pond Executive Offices
13967 West Preserve Boulevard
Burnsville, MN 55337
PATCHIN MESSNER & DODD
PATCHIN MESSNER & DODD
VALUATION COUNSELORS
May 18, 2011
City of Chanhassen
do Campbell Knutson, PA
317 Eagandale Office center
1380 Corporate Center Curve
Eagan, MN 55121
ATTN: Thomas M. Scott, Esq.
RE: Market Value Appraisal, Summary Report
Parcel 19 - Single - Family Residence
Owned by: Mark & Kari Nettesheim
9151 Great Plains Boulevard
Chanhassen, Minnesota
Dear Mr. Scott:
At your request, we have appraised the above - referenced property for the purpose of
estimating its fee simple market due to the proposed acquisition of the subject for road
improvements along TH -101, as well as changes to parking and access at adjacent
Bandimere Park.
This appraisal is intended to comply with the Uniform Standards of Professional Appraisal
Practice ( USPAP) of the Appraisal Foundation, and with the provisions of Minnesota Statutes
Chapter 117. Furthermore, this appraisal is presented in a Summary reporting format, as
described in USPAP Standards Rule 2 — 2(b). As such, this report presents only summary
discussions of the data and analyses used in the appraisal process. Additional information
and documentation concerning the data and analyses of this appraisal have been retained in
our files.
The subject of this report is a two-story, single - family residence with six bedrooms and two
and one -half bathrooms above grade, with a partially finished basement. The site is 2.50
acres in size and is located at 9151 Great Plains Boulevard, Chanhassen, Minnesota. The
proposed acquisition will result in the total taking of the subject land and improvements.
Therefore, the fee simple market value of the property is being appraised.
Sunset Pond Executive Offices • 13967 West Preserve Boulevard • Burnsville, MN 55337
Phone: (952) 895 -1205 Fax: (952) 895 -1521
11
Based upon the inspection of the property on April 26, 2011, and after consideration of the
many factors influencing market value, it is our opinion that the subject has a. market value,
as of April 26, 2011, of $420,000
FOUR HUNDRED TWENTY THOUSAND DOLLARS
It should be noted that this letter does not qualify as an appraisal, and that the reader is
directed to the following report for the data, analyses and conclusions which support this
value estimate. The appraisal report is contingent upon the assumptions and limiting
conditions submitted within the report. The "Contingent and Limiting Conditions" section of
this report should be thoroughly read and understood before relying on any information or
analysis presented herein.
Thank you for allowing our firm to be of assistance in this matter. If you have any questions
after reading this report, feel free to contact us at your convenience.
Respectfully submitted,
PATCHIN MESSNER & DODD
13-m49 , ,
Bradley j. Elvestad
Minnesota Certified General Real Property
Appraiser License 20400593
</a lkyi■
Jason L. Messner, MAI
Minnesota Certified General Real Property
Appraiser License 4000836
PACCHIN MESSNER & DODD
21125 -19 iii
CERTIFICATION
(Real Estate)
certify that, to the best of my knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the
reported assumptions and limiting conditions, and are my personal, un-
biased professional analyses, opinions, and conclusions.
3. I have no present or prospective interest in the property that is the subject
of this report, and I have no personal interest or bias with respect to the
parties involved.
4. My compensation is not contingent upon the reporting of a predetermined
value or direction in value that favors the cause of the client, the amount of
the value estimate, the attainment of a stipulated result, or the occurrence
of a subsequent event.
5. My analyses, opinions, and conclusions were developed, and this report
has been prepared, in conformity with the Uniform Standards of
Professional Appraisal Practice of the Appraisal Foundation.
6. I have made a personal inspection of the property that is the subject of this
report.
7. The reported analyses, opinions, and conclusions were developed, and this
report has been prepared, in conformity with the requirements of the Code
of Professional Ethics and the Standards of Professional Appraisal Practice
of the Appraisal Institute.
8. The use of this report is subject to the requirements of the Appraisal
Institute relating to review by its duly authorized representatives.
9. No one provided significant professional assistance to the persons signing
this report, except as noted herein.
10. The appraisal assignment was not based on a requested minimum
valuation, a specific valuation, or the approval of a loan.
11. This appraisal cannot be completely understood without reading the
"Contingent and Limiting Conditions" section of this report, which should
be thoroughly read and understood before relying on any information or
analysis presented herein.
12. As of the date of this report, Bradley J. Elvestad has completed the
Standards and Ethics Education requirement of the Appraisal Institute for
Associate Members.
3,49 eim sfq.)b It
Bradley J. Elvestad Date
PATCHIN MESSNER & DODD
Valuation Counselors
21125 -19 iv
CERTIFICATION
(Real Estate)
I certify that, to the best of my knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the
reported assumptions and limiting conditions, and are my personal, un-
biased professional analyses, opinions, and conclusions.
3. 1 have no present or prospective interest in the property that is the subject
of this report, and 1 have no personal interest or bias with respect to the
parties involved.
4. My compensation is not contingent upon the reporting of a predetermined
value or direction in value that favors the cause of the client, the amount of
the value estimate, the attainment of a stipulated result, or the occurrence
of a subsequent event.
5. My analyses, opinions, and conclusions were developed, and this report
has been prepared, in conformity with the Uniform Standards of
Professional Appraisal Practice of the Appraisal Foundation.
6. I have made a personal inspection of the property that is the subject of this
report.
7. The reported analyses, opinions, and conclusions were developed, and this
report has been prepared, in conformity with the requirements of the Code
of Professional Ethics and the Standards of Professional Appraisal Practice
of the Appraisal Institute.
8. The use of this report is subject to the requirements of the Appraisal
Institute relating to review by its duly authorized representatives.
9. No one provided significant professional assistance to the persons signing
this report, except as noted herein.
10. The appraisal assignment was not based on a requested minimum
valuation, a specific valuation, or the approval of a loan.
11. This appraisal cannot be completely understood without reading the
"Contingent and Limiting Conditions" section of this report, which should
be thoroughly read and understood before relying on any information or
analysis presented herein.
12. As of the date of this report, Jason L. Messner has completed the
requirements under the continuing education program of the Appraisal
Institute.
C: +19v, �1`1\-1 /;9f
Jason L. Messner, MAI Date
PATCWN MESSNER & DODD
Valuation Counselors
21125 -19 v
SUMMARY OF SALIENT FACTS AND CONCLUSIONS
Fee Owner: Mark & Kari Nettesheim
Location: 9151 Great Plains Boulevard
Chanhassen, Minnesota
Date of Appraisal: April 26, 2011
Date of Inspection: April 26, 2011
Property Appraised: Real Property (Land & Building)
Rights & Interest Appraised: Fee Simple Market Value
Zoning: A2, Agricultural Estate District
Guiding: Residential Low Density
Site Description: The subject consists of a 2.50 -acre flag- shaped lot
with approximately 30 feet of frontage along Great
Plains Boulevard /Highway 101. However, the
subject's driveway access crosses over the south side
of the adjacent western property. Great Plains
Boulevard is a highway that intersects with US -212
and Highway 5 to the north, and is the main
north /south highway serving this portion of
Chanhassen. The site is generally level, with the
exception of wetlands that are present along the
northwestern portion of the site.
Building Description: The lot is improved with a two -story single - family
residence, built in 1986. It has 2,730 SF of gross
living area, with six bedrooms and two full and a one -
half bathroom above grade. Additionally, the lower
level has approximately 1,277 SF finished including
an office, sauna, three - quarter bathroom and family
room.
Highest and Best Use:
As Vacant: Development of a single - family residence
As Improved: Continued use as currently improved
Final Value Conclusion: $420,000
PATCAIN MESSNER & DODD
Valuation Counselors
RESIDENTIAL PURCHASE AGREEMENT
1. PARTIES. This Purchase Agreement is made on April 23 , 2012, by
and between MARK J. NETTESHEIM and KARI A. NETTESHEIM, husband and wife,
whose mailing address is 9151 Great Plains Boulevard, Chanhassen, Minnesota 55317
( "Sellers "), and CITY OF CHANHASSEN, a Minnesota municipal corporation, whose address
is 7700 Market Boulevard, P. 0. Box 147, Chanhassen, Minnesota 55317 ( "Buyer ").
2. OFFER/ACCEPTANCE. Buyer offers to purchase and Sellers agree to sell real
property ( "Property ") legally described as:
The East 295.55 feet of the South 330 feet of the Northwest Quarter of the Southwest
Quarter and the North 30 feet of that part of the South 330 feet of the Northwest Quarter
of the Southwest Quarter which lies easterly of the centerline of Highway 101 and
westerly of the East 295.5 feet thereof, Carver County, Minnesota,
and located at 9151 Great Plains Boulevard, City of Chanhassen, County of Carver, State of
Minnesota.
3. CONTINGENCIES. None.
4. FIXTURES EXCLUDED FROM THE SALE. The following fixtures,
currently attached to the real property, are excluded from this sale and will be removed by Sellers
prior to Sellers vacating the Property as required under the terms hereof:
a) gas fireplace stove
b) gas fireplace insert
c) fans and light fixtures
d) appliances
e) garage door openers
f) A/C unit
g) storm door
h) kitchen cabinets
i) bathroom pedestal sink
j) water heater
k) perennials.
5. PRICE AND TERMS. The price for the real property included in this sale is
Four Hundred Twenty Thousand and No /100 Dollars ($420,000.00) ( "Purchase Price "), which
Buyer shall pay as follows:
Earnest money of $1,000.00 by check payable to Sellers, to be deposited and held by
Sellers (and may be commingled with Sellers' other funds) pending closing, receipt of
which is hereby acknowledged and $419,000.00 cash on May 18, 2012, the Date of
Closing unless a different date is agreed to by Buyer and Sellers.
163506v1 1
6. DEED /MARKETABLE TITLE. Upon performance by Buyer, Sellers shall
execute and deliver a Warranty Deed conveying marketable title of record to the Property,
subject to:
A. Building and zoning laws, ordinances, state and federal regulations;
B. Reservation of any mineral rights by the State of Minnesota; and
C. Exceptions to title which constitute encumbrances, restrictions, easements,
conditions or covenants which have been disclosed to Buyer and accepted by
Buyer in this Purchase Agreement.
D. Any objections or exceptions made by Buyer to the marketability of title not
removed by Seller prior to closing as provided in Section 15 herein.
7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS.
A. Current Year Taxes. Real estate taxes due and payable in and for the year of
closing shall be prorated between Sellers and Buyer on a calendar year basis as of
July 31, 2012 and shall be paid at closing.
B. Homestead Classification. Sellers represent the taxes due and payable in the
year 2012 will be full- homestead classification.
C. Deferred Real Estate Taxes. Sellers shall pay on Date of Closing or provide for
payment of any deferred real estate taxes (including "Green Acres" taxes under
MINN. STAT. §273.111) payment of which is required as a result of the closing of
this sale and/or the recording /filing of the deed or contract - for -deed. (Sellers'
provision for payment shall be by payment into escrow of 11/2 times the estimated
payoff amount of the deferred taxes.)
E. Valuation Exclusions from Assessed Value. Sellers warrant and represent that
the property does not have an exclusion from estimated market value for certain
home improvements pursuant to Minnesota Statutes section 273.11, Subd. 16
(1997). Such exclusion expires on the sale of the Property and will cause the
assessed value of the Property to increase for property tax purposes. The increase
in assessed value will cause the property taxes to increase and might make the
property unaffordable for Buyer. If Sellers represent that the property does not
have an exclusion and an exclusion is discovered prior to closing, Buyer may, at
Buyer's option:
(1) Assume payment of the increased property taxes without adjustment to the
purchase price of the real property;
163506v1 2
(2) Require that the price of the property be reduced by the estimated increase
in property taxes over the three calendar years following the year of
closing (Such estimated increase shall be obtained from the county
assessor or city assessor.); or
(3) Declare this Purchase Agreement void by notice to Sellers, and the earnest
money shall be refunded to Buyer.
If the exclusion is not discovered until after closing, Sellers shall be liable to
Buyer for the difference between the shall be real estate taxes due and payable in
the year of closing and the estimated increase in real estate taxes based on the
reassessed value provided that any notice of a claim of breach of warranty must be
in writing and must be given by Buyer to Sellers within one year of the Date of
Closing or be deemed waived.
F. Certified Special Assessments. All installments of special assessments certified
for payment with the real estate taxes due and payable in the year of closing shall
be prorated between Sellers and Buyer on a calendar year basis to the actual date
of closing, adjusted on the settlement statement at closing, and unless otherwise
provided in this Purchase Agreement, shall be paid at closing.
G. Pending Special Assessments. Sellers shall provide for payment of special
assessments pending as of the date of this Purchase Agreement for improvements
that have been ordered by the City Council or other governmental assessing
authorities. (Sellers' provision for payment shall be by payment into escrow of
11/2 times the estimated amount of the assessments.) As of the date of this
Purchase Agreement, Sellers represent that Sellers have not received a Notice of
Hearing of a new public improvement project from any governmental assessing
authority, the costs of which project may be assessed against the real property. If
a special assessment becomes pending after the date of this Purchase Agreement
and before the Date of Closing, Buyer may, at Buyer's option:
(1) Assume payment of the pending special assessment without adjustment to
the purchase price of the real property; or
(2) Require Sellers to pay the pending special assessment (or escrow for
payment of same as provided above) and Buyer shall pay a commensurate
increase in the purchase price of the real property, which increase shall be
the same as the estimated amount of the assessment; or
(3) Declare this Purchase Agreement void by notice to Sellers, and the earnest
money shall be refunded to Buyer.
H. Deferred Special Assessments. Sellers shall pay on Date of Closing or provide
for payment of special assessments payment of which is required as a result of the
closing of this sale and /or the recording/fling of the deed or contract - for -deed.
163506v1 3
(Sellers' provision for payment shall be by payment into escrow of 11/2 times the
estimated payoff amount of the deferred special assessments.)
I. All Other Levied Special Assessments. Sellers shall pay on Date of Closing all
other special assessments levied as of the date of this Purchase Agreement.
J. Taxes and Special Assessments in the Year Following Closing. Buyer shall
pay real estate taxes due and payable in the year following closing and thereafter
and any unpaid special assessments payable therewith and thereafter, the payment
of which is not otherwise provided herein. Sellers makes no representation
concerning the amount of future real estate taxes or of future special assessments.
8. DAMAGES TO REAL PROPERTY. Sellers agree to maintain the Property in
the same condition that it is in upon the execution of this Agreement until the Date of Closing,
reasonable wear and tear and removal of any of the fixtures identified in paragraph 4 of this
Purchase Agreement accepted. Sellers shall maintain "all risk" insurance on the Property
insuring against fire, hail, wind, etc. in the same amount currently being carried by Sellers until
July 31, 2012. If the Property is damaged by fire or any other cause covered by said insurance,
the Sellers shall have the right to repair the Property or to keep the insurance proceeds. If Sellers
keep the insurance proceeds, the amount paid by the insurance company to Sellers shall be
deducted from the Purchase Price payable by Sellers at Closing. If the Property is damaged prior
to closing, Sellers shall notify Buyer of such damage, and Sellers shall immediately file a claim
with the insurance company.
9. SELLERS' BOUNDARY LINE, ACCESS, RESTRICTIONS AND LIEN
WARRANTIES. Sellers warrant that buildings, if any, are entirely within the boundary lines of
the real property. Sellers warrant that there is a right of access to the real property from a public
right of way. Sellers warrant that there has been no labor or material furnished to the real
property for which payment has not been made. Sellers warrant that there are no present
violations of any restrictions relating to the use or improvement of the real property. Sellers
warrants that the real property is not subject to a lien for Medical Assistance or other public
assistance. These warranties shall survive the delivery of the Deed or Contract for Deed.
10. CONDITION OF THE REAL PROPERTY.
A. Sellers warrant that all fixtures, heating and air conditioning equipment, fireplaces
(including mechanisms, dampers, flues, and doors), wiring, and plumbing used
and located on the Property, excluding those identified under paragraph 4 of this
Purchase Agreement, will be in working order on the Date of Closing. Sellers
represent that the property has not had a wet basement or water in the basement.
Sellers disclose that the roof has not leaked. Sellers shall remove all debris, trash,
rubbish, garbage, rubble, and yard waste from the land before the possession date.
Sellers shall remove all trash, garbage, and miscellaneous discarded materials
from the buildings, and shall leave the buildings in "broom clean" condition
before the possession date. Sellers shall remove all personal property not
included in this sale from the real property on or before July 31, 2012. Sellers'
163506v1 4
right to possession of the Property and right to remove the fixtures identified
under paragraph 4 of this Purchase Agreement shall survive the delivery of the
Deed. Sellers have not received any notice from any governmental authority as to
the existence of any Dutch elm disease, oak wilt, or other disease of any trees on
the real property.
B. Sellers know of no hazardous substances or petroleum products having been
placed, stored, or released from or on the real property by any person in violation
of any law, nor of any underground storage tanks having been located on the real
property at any time, except as follows:
C. Sellers' warranties and representations contained in this paragraph 10 shall
survive the delivery of the Deed. Any notice of a defect or claim of breach of
warranty must be in writing and any such notice with respect to matters referred to
in A., above must be given by Buyer to Sellers within one year of the Date of
Closing or be deemed waived.
D. Buyer shall have the right to have inspections of the property conducted prior to
closing. Unless required by local ordinance or lending regulations, Sellers do not
plan to have the property inspected. Other than the warranties and representations
made in this paragraph 10, the real property and fixtures included in the sale are
being sold "AS IS" with no express or implied representations or warranties by
Sellers as to physical conditions, quality of construction, workmanship, or fitness
for any particular purpose. (This paragraph is not intended to waive or limit any
provisions of MINN. STAT., Chapter 327A.)
11. DISCLOSURE OF NOTICES. Sellers have not received any notice from any
governmental authority as to violation of any law, ordinance or regulation affecting the real
property. If the real property is subject to restrictive covenants, Sellers have not received any
notice from any person as to a breach of the covenants. Sellers have not received any notice from
any governmental authority concerning any eminent domain, condemnation, special taxing
district, or rezoning proceedings.
12. TRUTH -IN- HOUSING. Buyer acknowledges receipt of the Truth -in- Housing
Disclosure Report or other inspection report if required by the municipality in which the real
property is located.
13. POSSESSION. Sellers shall deliver possession of the Property not later than July
31, 2012. Sellers' shall have possession of the Property between the Closing Date and July 31,
2012 at no cost to the Sellers. Sellers' right to possession of the Property through July 31, 2012
at no cost to the Sellers shall survive the delivery of the Deed. All interest, fuel oil, liquid
petroleum gas, and all charges for city water, city sewer, electricity, and natural gas shall be
prorated between the parties as of the date of transfer of possession.
14. EXAMINATION OF TITLE. To demonstrate that Sellers' title is good and
marketable of record, within a reasonable time after acceptance of this Purchase Agreement,
163506v1 5
Sellers shall furnish Buyer with, at the cost of the Buyer, Commitment for Title Insurance
including proper searches covering bankruptcies and state and federal judgments, federal court
judgment liens in favor of the U.S., liens, and levied and pending special assessments. Buyer
shall have ten (10) business days after receipt of the Commitment for Title Insurance to provide
Sellers with a copy of the Commitment and written objections to matters disclosed in the
Commitment for Title Insurance. Buyer shall be deemed to have waived any title objections not
made within the ten (10) day period above, except that this shall not operate as a waiver of
Sellers' covenant to deliver a statutory Warranty Deed, unless a Warranty Deed is not specified
above. If Buyer obtains title insurance, Buyer is not waiving the right to obtain a good and
marketable title of record from Sellers.
15. TITLE CORRECTIONS AND REMEDIES. Sellers shall have 120 days from
receipt of Buyer's written title objections to make title marketable. Upon receipt of Buyer's title
objections, Sellers shall, within ten (10) business days, notify Buyer of Sellers' intentions to
make title marketable within the 120 day period. Liens or encumbrances for liquidated amounts
which can be released by payment or escrow from proceeds of closing shall not delay the closing.
Cure of the defects by Sellers shall be reasonable, diligent, and prompt. Pending correction of
title, all payments required herein and the closing shall be postponed.
A. If notice is given and Sellers makes title marketable, then upon presentation to
Buyer and proposed lender of documentation establishing that title has been made
marketable, and if not objected to in the same time and manner as the original title
objections, the closing shall take place within ten (10) business days or on the
scheduled closing date, whichever is later.
B. If notice is given and Sellers proceeds in good faith to make title marketable but
the 120 day period expires without title being made marketable, Buyer may
declare this Purchase Agreement void by notice to Sellers, neither party shall be
liable for damages hereunder to the other, and earnest money shall be refunded to
Buyer.
C. If Sellers do not give notice of intention to make title marketable, or if notice is
given but the 120 day period expires without title being made marketable due to
Sellers' failure to proceed in good faith, Buyer may:
(1) Proceed to closing waiving objections to title; or
(2) Rescind this Purchase Agreement by notice as provided herein, in which
case the Purchase Agreement shall be null and void and all earnest money
paid shall be refunded to Buyer.
D. If title is marketable, or is made marketable as provided herein, and Buyer
defaults in any of the agreements herein, Sellers may Cancel this contract as
provided by statute and retain all payments made hereunder as liquidated
damages. The parties acknowledge their intention that any note given pursuant to
]63506v1 6
this contract is a down payment note, and may be presented for payment
notwithstanding cancellation.
16. NOTICES. All notices required herein shall be in writing and delivered
personally or mailed to the address as shown at Paragraph 1 above and, if mailed, are effective as
of the date of mailing.
17. REAL ESTATE BROKER. Sellers represent and warrant to Buyer that Sellers
have not used or entered into any agreement with any other real estate broker, agent, finder or
other party in connection with this transaction and Sellers have not taken any action that would
result in any real estate broker's, finder's or other fees or commissions being due to any other
party with respect to this transaction.
18. MINNESOTA LAW. This contract shall be governed by the laws of the State of
Minnesota. Sellers acknowledge that they are not entitled to any additional minimum
compensation payment pursuant to Minn. Stat. § 117.187 and waive any claim for minimum
compensation. Additionally, Sellers waive any right of first refusal pursuant to Minn. Stat. §
117.226.
19. WELL DISCLOSURE. [Check one of the following: J
Sellers certify that Sellers do not know of any wells on the real property.
X Wells on the real property are disclosed by Sellers on the attached Well
Disclosure form.
20. SEWAGE TREATMENT SYSTEM DISCLOSURE. Sellers know that there
are no abandoned individual sewage treatment systems on the property. If Sellers disclose the
existence of an abandoned individual sewage treatment system on the property, then Minnesota
law requires that the location of the system be disclosed to Buyer with a map. [Attach Sellers'
Disclosure of Individual Sewage Treatment System with map completed.]
21. LEAD PAINT DISCLOSURE. Sellers represent that the dwelling was not
constructed on the real property before 1978. (If such housing is located on the real property,
attached and made a part of this Purchase Agreement is "LEAD PAINT ADDENDUM FOR
HOUSING CONSTRUCTED BEFORE 1978 ".)
22. METHAMPHETINE DISCLOSURE. To the best of Sellers' knowledge,
methamphetamine production has not occurred on the Property.
23. SELLERS' AFFIDAVIT. At closing, Sellers shall supplement the warranties
and representations in this Purchase Agreement by executing and delivering a Minnesota
Uniform Conveyancing Blank [Form No. 116 -M, 117 -M, or 118 -M} Affidavit of Seller.
163506v1 7
24. CLOSING. Closing shall be at Chanhassen City Hall, or at some other mutually
agreeable location. At closing, Sellers and Buyer shall disclose their Social Security Numbers or
Federal Tax Identification Numbers for the purposes of completing state and federal tax forms.
25. CLOSING COSTS. The costs of closing, if not determined by other provisions
of this Agreement, shall be paid as follows.
A. SELLERS' COSTS. Sellers shall pay the following at closing:
(1) Document preparation costs, recording fees and deed taxes for documents
necessary to establish good and marketable title in Sellers' name.
(2) Document preparation costs for Sellers' deed or contract - for -deed,
Certificate of Real Estate Value, Seller's affidavit, Well Disclosure
Certificate (if required), and any ancillary documents necessary to transfer
good and marketable title by Sellers' deed or contract- for -deed.
(3) Deed tax on Sellers' deed and, in the metropolitan area, the Agricultural
Preservation deed tax charged under MINN. STAT. §40A.152.
B. BUYER'S COSTS. Buyer shall pay the following at closing:
(1) Document filing fee for a Well Disclosure Certificate, if applicable.
(2) The State Deed Tax and all cost to record the Warranty Deed.
(3) Title closer's fee.
[Remainder of page intentionally left blank.]
163506v1 8
I agree to sell the property for the price and terms and conditions set forth above.
SELLERS:
Mar .Nettesheim
Kari . Nettesheim
Buyer agrees to purchase the property for the price and terms and conditions set forth
above.
BUYER:
CITY OF CHANHASSEN
By:
Thomas A. Furlong, Mayor
By:
Todd Gerhardt, City Manager
THIS INSTRUMENT DRAFTED BY:
CAMPBELL KNUTSON, P.A.
1380 Corporate Center Curve, #317
Eagan, Minnesota 55121
TMS
163506v1 9
RESIDENTIAL PURCHASE AGREEMENT
1. PARTIES. This Purchase Agreement is made on April 23 , 2012, by
and between MARK J. NETTESHEIM and KARI A. NETTESHEIM, husband and wife,
whose mailing address is 9151 Great Plains Boulevard, Chanhassen, Minnesota 55317
( "Sellers "), and CITY OF CHANHASSEN, a Minnesota municipal corporation, whose address
is 7700 Market Boulevard, P. O. Box 147, Chanhassen, Minnesota 55317 ( "Buyer ").
2. OFFER/ACCEPTANCE. Buyer offers to purchase and Sellers agree to sell real
property ( "Property ") legally described as:
That part of the South 300.00 feet of the Northwest Quarter of the Southwest Quarter of
Section 24, Township 116, Range 23 West of the 5 Principal Meridian which lies
Easterly of the centerline of Highway 101 as constructed and Westerly of the East 295.55
feet thereof,
and located at 9201 Great Plains Boulevard, City of Chanhassen, County of Carver, State of
Minnesota.
3. CONTINGENCIES. This Purchase Agreement is contingent upon the City's
receipt of the acquisition funds from MnDOT.
4. FIXTURES EXCLUDED FROM THE SALE. The following fixtures,
currently attached to the real property, are excluded from this sale and will be removed by Sellers
prior to Sellers vacating the Property as required under the terms hereof:
a) mirror
b) island
c) garage door opener
d) chain -link fence and gates
e) appliances
f) perennials.
5. PRICE AND TERMS. The price for the real property included in this sale is
Two Hundred Twenty Thousand and No /100 Dollars ($220,000.00) ( "Purchase Price "), which
Buyer shall pay as follows:
Earnest money of $1,000.00 by check payable to Sellers, to be deposited and held by
Sellers (and may be commingled with Sellers' other funds) pending closing, receipt of
which is hereby acknowledged and $219,000.00 cash on May 18, 2012, the Date of
Closing unless a different date is agreed to by Buyer and Sellers.
6. DEED/MARKETABLE TITLE. Upon performance by Buyer, Sellers shall
execute and deliver a Warranty Deed conveying marketable title of record to the Property,
subject to:
163508v1 1
A. Building and zoning laws, ordinances, state and federal regulations;
B. Reservation of any mineral rights by the State of Minnesota; and
C. Exceptions to title which constitute encumbrances, restrictions, easements,
conditions or covenants which have been disclosed to Buyer and accepted by
Buyer in this Purchase Agreement.
D. Any objections or exceptions made by Buyer to the marketability of title not
removed by Seller prior to closing as provided in Section 15 herein.
7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS.
A. Current Year Taxes. Real estate taxes due and payable in and for the year of
closing shall be prorated between Sellers and Buyer on a calendar year basis to the
actual date of closing, adjusted on the settlement statement at closing, and unless
otherwise provided in this Purchase Agreement, shall be paid at closing.
B. Homestead Classification. Sellers represent the taxes due and payable in the
year 2012 will not be full- homestead classification.
C. Deferred Real Estate Taxes. Sellers shall pay on Date of Closing or provide for
payment of any deferred real estate taxes (including "Green Acres" taxes under
MINN. STAT. §273.111) payment of which is required as a result of the closing of
this sale and /or the recording /filing of the deed or contract - for -deed. (Sellers'
provision for payment shall be by payment into escrow of 11/2 times the estimated
payoff amount of the deferred taxes.)
E. Valuation Exclusions from Assessed Value. Sellers warrant and represent that
the property does not have an exclusion from estimated market value for certain
home improvements pursuant to Minnesota Statutes section 273.11, Subd. 16
(1997). Such exclusion expires on the sale of the Property and will cause the
assessed value of the Property to increase for property tax purposes. The increase
in assessed value will cause the property taxes to increase and might make the
property unaffordable for Buyer. If Sellers represent that the property does not
have an exclusion and an exclusion is discovered prior to closing, Buyer may, at
Buyer's option:
(1) Assume payment of the increased property taxes without adjustment to the
purchase price of the real property;
(2) Require that the price of the property be reduced by the estimated increase
in property taxes over the three calendar years following the year of
closing (Such estimated increase shall be obtained from the county
assessor or city assessor.); or
163508v1 2
(3) Declare this Purchase Agreement void by notice to Sellers, and the earnest
money shall be refunded to Buyer.
If the exclusion is not discovered until after closing, Sellers shall be liable to
Buyer for the difference between the shall be real estate taxes due and payable in
the year of closing and the estimated increase in real estate taxes based on the
reassessed value provided that any notice of a claim of breach of warranty must be
in writing and must be given by Buyer to Sellers within one year of the Date of
Closing or be deemed waived.
F. Certified Special Assessments. All installments of special assessments certified
for payment with the real estate taxes due and payable in the year of closing shall
be prorated between Sellers and Buyer on a calendar year basis to the actual date
of closing, adjusted on the settlement statement at closing, and unless otherwise
provided in this Purchase Agreement, shall be paid at closing.
G. Pending Special Assessments. Sellers shall provide for payment of special
assessments pending as of the date of this Purchase Agreement for improvements
that have been ordered by the City Council or other governmental assessing
authorities. (Sellers' provision for payment shall be by payment into escrow of
11/2 times the estimated amount of the assessments.) As of the date of this
Purchase Agreement, Sellers represent that Sellers have not received a Notice of
Hearing of a new public improvement project from any governmental assessing
authority, the costs of which project may be assessed against the real property. If
a special assessment becomes pending after the date of this Purchase Agreement
and before the Date of Closing, Buyer may, at Buyer's option:
(1) Assume payment of the pending special assessment without adjustment to
the purchase price of the real property; or
(2) Require Sellers to pay the pending special assessment (or escrow for
payment of same as provided above) and Buyer shall pay a commensurate
increase in the purchase price of the real property, which increase shall be
the same as the estimated amount of the assessment; or
(3) Declare this Purchase Agreement void by notice to Sellers, and the earnest
money shall be refunded to Buyer.
H. Deferred Special Assessments. Sellers shall pay on Date of Closing or provide
for payment of special assessments payment of which is required as a result of the
closing of this sale and /or the recording /filing of the deed or contract - for -deed.
(Sellers' provision for payment shall be by payment into escrow of 11/2 times the
estimated payoff amount of the deferred special assessments.)
163508v1 3
I. All Other Levied Special Assessments. Sellers shall pay on Date of Closing all
other special assessments levied as of the date of this Purchase Agreement.
J. Taxes and Special Assessments in the Year Following Closing. Buyer shall
pay real estate taxes due and payable in the year following closing and thereafter
and any unpaid special assessments payable therewith and thereafter, the payment
of which is not otherwise provided herein. Sellers makes no representation
concerning the amount of future real estate taxes or of future special assessments.
8. DAMAGES TO REAL PROPERTY. Sellers agree to maintain the Property in
the same condition that it is in upon the execution of this Agreement until the actual date of
closing, reasonable wear and tear and removal of any of the fixtures identified in paragraph 4 of
this Purchase Agreement accepted. Sellers shall maintain "all risk" insurance on the Property
insuring against fire, hail, wind, etc. in the same amount currently being carried by Sellers until
the actual date of closing. If the Property is damaged by fire or any other cause covered by said
insurance, the Sellers shall have the right to repair the Property or to keep the insurance proceeds.
If Sellers keep the insurance proceeds, the amount paid by the insurance company to Sellers shall
be deducted from the Purchase Price payable by Sellers at Closing. If the Property is damaged
prior to closing, Sellers shall notify Buyer of such damage, and Sellers shall immediately file a
claim with the insurance company.
9. SELLERS' BOUNDARY LINE, ACCESS, RESTRICTIONS AND LIEN
WARRANTIES. Sellers warrant that buildings, if any, are entirely within the boundary lines of
the real property. Sellers warrant that there is a right of access to the real property from a public
right of way. Sellers warrant that there has been no labor or material furnished to the real
property for which payment has not been made. Sellers warrant that there are no present
violations of any restrictions relating to the use or improvement of the real property. Sellers
warrants that the real property is not subject to a lien for Medical Assistance or other public
assistance. These warranties shall survive the delivery of the Deed or Contract for Deed.
10. CONDITION OF THE REAL PROPERTY.
A. Sellers warrant that all fixtures excluding those identified under paragraph 4 of
this Purchase Agreement, heating and air conditioning equipment, fireplaces
(including mechanisms, dampers, flues, and doors), wiring, and plumbing used
and located on the Property will be in working order on the Date of Closing.
Sellers represent that the property has not had a wet basement or water in the
basement. Sellers disclose that the roof has not leaked. Sellers shall remove all
debris, trash, rubbish, garbage, rubble, and yard waste from the land before the
possession date. Sellers shall remove all trash, garbage, and miscellaneous
discarded materials from the buildings, and shall leave the buildings in "broom
clean" condition before the possession date. Sellers shall remove all personal
property not included in this sale from the real property before the actual date of
closing. Sellers have not received any notice from any governmental authority as
to the existence of any Dutch elm disease, oak wilt, or other disease of any trees
on the real property.
163508v1 4
B. Sellers know of no hazardous substances or petroleum products having been
placed, stored, or released from or on the real property by any person in violation
of any law, nor of any underground storage tanks having been located on the real
property at any time, except as follows:
C. Sellers' warranties and representations contained in this paragraph 10 shall
survive the delivery of the Deed. Any notice of a defect or claim of breach of
warranty must be in writing and any such notice with respect to matters referred to
in A., above must be given by Buyer to Sellers within one year of the Date of
Closing or be deemed waived.
D. Buyer shall have the right to have inspections of the property conducted prior to
closing. Unless required by local ordinance or lending regulations, Sellers do not
plan to have the property inspected. Other than the warranties and representations
made in this paragraph 10, the real property and fixtures included in the sale are
being sold "AS IS" with no express or implied representations or warranties by
Sellers as to physical conditions, quality of construction, workmanship, or fitness
for any particular purpose. (This paragraph is not intended to waive or limit any
provisions of MINN. STAT., Chapter 327A.)
11. DISCLOSURE OF NOTICES. Sellers have not received any notice from any
governmental authority as to violation of any law, ordinance or regulation affecting the real
property. If the real property is subject to restrictive covenants, Sellers have not received any
notice from any person as to a breach of the covenants. Sellers have not received any notice from
any governmental authority concerning any eminent domain, condemnation, special taxing
district, or rezoning proceedings.
12. TRUTH -IN- HOUSING. Buyer acknowledges receipt of the Truth -in- Housing
Disclosure Report or other inspection report if required by the municipality in which the real
property is located.
13. POSSESSION. Sellers shall deliver possession of the Property not later than the
Date of Closing. All interest, fuel oil, liquid petroleum gas, and all charges for city water, city
sewer, electricity, and natural gas shall be prorated between the parties as of Date of Closing.
14. EXAMINATION OF TITLE. To demonstrate that Sellers' title is good and
marketable of record, within a reasonable time after acceptance of this Purchase Agreement,
Sellers shall furnish Buyer with, at the cost of the Buyer, Commitment for Title Insurance
including searches covering bankruptcies and state and federal judgments, federal court judgment
liens in favor of the U.S., liens, and levied and pending special assessments. Buyer shall have
ten (10) business days after receipt of the Commitment for Title Insurance to provide Sellers with
a copy of the Commitment and written objections to matters disclosed in the Commitment for
Title Insurance. Buyer shall be deemed to have waived any title objections not made within the
ten (10) day period above, except that this shall not operate as a waiver of Sellers' covenant to
deliver a statutory Warranty Deed, unless a Warranty Deed is not specified above. If Buyer
163508v1 5
obtains title insurance, Buyer is not waiving the right to obtain a good and marketable title of
record from Sellers.
15. TITLE CORRECTIONS AND REMEDIES. Sellers shall have 120 days from
receipt of Buyer's written title objections to make title marketable. Upon receipt of Buyer's title
objections, Sellers shall, within ten (10) business days, notify Buyer of Sellers' intentions to
make title marketable within the 120 day period. Liens or encumbrances for liquidated amounts
which can be released by payment or escrow from proceeds of closing shall not delay the closing.
Cure of the defects by Sellers shall be reasonable, diligent, and prompt. Pending correction of
title, all payments required herein and the closing shall be postponed.
A. If notice is given and Sellers makes title marketable, then upon presentation to
Buyer and proposed lender of documentation establishing that title has been made
marketable, and if not objected to in the same time and manner as the original title
objections, the closing shall take place within ten (10) business days or on the
scheduled closing date, whichever is later.
B. If notice is given and Sellers proceeds in good faith to make title marketable but
the 120 day period expires without title being made marketable, Buyer may
declare this Purchase Agreement void by notice to Sellers, neither party shall be
liable for damages hereunder to the other, and earnest money shall be refunded to
Buyer.
C. If Sellers do not give notice of intention to make title marketable, or if notice is
given but the 120 day period expires without title being made marketable due to
Sellers' failure to proceed in good faith, Buyer may:
(1) Proceed to closing waiving objections to title; or
(2) Rescind this Purchase Agreement by notice as provided herein, in which
case the Purchase Agreement shall be null and void and all earnest money
paid shall be refunded to Buyer.
D. If title is marketable, or is made marketable as provided herein, and Buyer
defaults in any of the agreements herein, Sellers may Cancel this contract as
provided by statute and retain all payments made hereunder as liquidated
damages. The parties acknowledge their intention that any note given pursuant to
this contract is a down payment note, and may be presented for payment
notwithstanding cancellation.
16. NOTICES. All notices required herein shall be in writing and delivered
personally or mailed to the address as shown at Paragraph 1 above and, if mailed, are effective as
of the date of mailing.
17. REAL ESTATE BROKER. Sellers represent and warrant to Buyer that Sellers
have not used or entered into any agreement with any other real estate broker, agent, finder or
163508v1 6
other party in connection with this transaction and Sellers have not taken any action that would
result in any real estate broker's, finder's or other fees or commissions being due to any other
party with respect to this transaction.
18. MINNESOTA LAW. This contract shall be governed by the laws of the State of
Minnesota. Sellers acknowledge that they are not entitled to any additional minimum
compensation payment pursuant to Minn. Stat. § 117.187 and waive any claim for minimum
compensation. Additionally, Sellers waive any right of first refusal pursuant to Minn. Stat. §
117.226.
19. WELL DISCLOSURE. [Check one of the following: ]
Sellers certify that Sellers do not know of any wells on the real property.
X Wells on the real property are disclosed by Sellers on the attached Well
Disclosure form.
20. SEWAGE TREATMENT SYSTEM DISCLOSURE. Sellers know that there
are no abandoned individual sewage treatment systems on the property. If Sellers disclose the
existence of an abandoned individual sewage treatment system on the property, then Minnesota
law requires that the location of the system be disclosed to Buyer with a map. [Attach Sellers'
Disclosure of Individual Sewage Treatment System with map completed]
21. LEAD PAINT DISCLOSURE. Sellers represent that the dwelling was not
constructed on the real property before 1978. (If such housing is located on the real property,
attached and made a part of this Purchase Agreement is "LEAD PAINT ADDENDUM FOR
HOUSING CONSTRUCTED BEFORE 1978 ".)
22. METHAMPHETINE DISCLOSURE. To the best of Sellers' knowledge,
methamphetamine production has not occurred on the Property.
23. SELLERS' AFFIDAVIT. At closing, Sellers shall supplement the warranties
and representations in this Purchase Agreement by executing and delivering a Minnesota
Uniform Conveyancing Blank [Form No. 116 -M, 117 -M, or 118 -M] Affidavit of Seller.
24. CLOSING. Closing shall be at Chanhassen City Hall, or at some other mutually
agreeable location. At closing, Sellers and Buyer shall disclose their Social Security Numbers or
Federal Tax Identification Numbers for the purposes of completing state and federal tax forms.
25. CLOSING COSTS. The costs of closing, if not determined by other provisions
of this Agreement, shall be paid as follows.
A. SELLERS' COSTS. Sellers shall pay the following at closing:
(1) Document preparation costs, recording fees and deed taxes for documents
necessary to establish good and marketable title in Sellers' name.
163508v1 7
(2) Document preparation costs for Sellers' deed or contract - for -deed,
Certificate of Real Estate Value, Seller's affidavit, Well Disclosure
Certificate (if required), and any ancillary documents necessary to transfer
good and marketable title by Sellers' deed or contract - for -deed.
(3) Deed tax on Sellers' deed and, in the metropolitan area, the Agricultural
Preservation deed tax charged under MINN. STAT. §40A.152.
B. BUYER'S COSTS. Buyer shall pay the following at closing:
(1) Document filing fee for a Well Disclosure Certificate, if applicable.
(2) The State Deed Tax and all cost to record the Warranty Deed.
(3) Title closer's fee.
[Remainder of page intentionally left blank.]
163508v1 8
I agree to sell the property for the price and terms and conditions set forth above.
SELLERS:
Mar, J. Nettesheim
Kari A. Nettesheim
Buyer agrees to purchase the property for the price and terms and conditions set forth
above.
BUYER:
CITY OF CHANHASSEN
By:
Thomas A. Furlong, Mayor
By:
Todd Gerhardt, City Manager
THIS INSTRUMENT DRAFTED BY:
CAMPBELL KNUTSON, P.A.
1380 Corporate Center Curve, #317
Eagan, Minnesota 55121
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r Ci of Chanhassen, MN VIII Proposed Expansion Site Plan
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- Land Use Planning and Design
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Capital Improvement Program 2012 thru 2016 Department Park & Trail Improvements
City of Chanhassen, MN Contact Todd Hoffman
Project # PK &T -114 Type Improvement
Useful Life
Project Name Bandimere Community Park Expansion Category Park
Account #1 410 - 0000 -4701 Account #3 Priority n/a
Account #2 Account #4
Description 1 Total Project Cost: $500,000
Acquisition of a 2.5 acre parcel of land and single family home located adjacent to Bandimere Community Park.
Justification J
To accommodate a new park entrance road, expansion of park amenities and expansion of storm water ponding. The park entrance as currently
designed has resulted in an above normal level of vehicle collisions and close calls.
Expenditures 2012 2013 2014 2015 2016 Total
Land Acquisition 500,000 500,000
Total 500,000 500,000
Funding Sources 2012 2013 2014 2015 2016 Total
Park Dedication Fund 500,000 500,000
Total 500,000 500,000
Budget Impact/Other