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1g TestCITY OF CHANHAS3EN 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: 952.2271170 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: 952.2271130 Fax: 952.227.1110 Public Works 7901 Park Place Phone: 952.227.1300 Fax 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.cichanhassennn.us MEMORANDUM TO: Mayor & City Council FROM: Todd Gerhardt, City Manager DATE: June 10, 2013 Q SUBJ: Approve Purchase Agreement with Center Companies for Redevelopment of Ivan's Sinclair Gas Station, 7910 Dakota Avenue no PROPOSED MOTION: "The City Council approves the Vacant Land Purchase Agreement between the City of Chanhassen Center Companies in the amount of $85,000 for purchase of excess right -of -way associated with the Sinclair property at 7910 Dakota Avenue. Approval requires a simple majority vote of the city council. Attached please find a Vacant Land Purchase Agreement between the City of Chanhassen and Center Companies (Attachment #1). Center Companies President Ben Merriman has been active in redeveloping sites in Chanhassen for the past several years, including Goodwill and Haskell's. Mr. Merriman is now working on the redevelopment of the Sinclair Gas Station site at 7910 Dakota Avenue (Attachment #2). PROPOSED REDEVELOPMENT PLANS Currently, the Sinclair gas station sits on approximately .6 acres of land. It operates as a gas station/convenience store and sells liquid petroleum out of a 2,000 - gallon bulk storage tank just north of the store. The property is zoned Highway Business and the site conforms to all of the city's zoning regulations with the exception of site coverage percentage. Center Companies is proposing to demolish the convenience store and remove both the liquid petroleum and the underground gas tanks. In its place, Center Companies would build an 8,000 sq. ft. retail center that would accommodate three tenants. The tenant mix includes a coffee shop with a drive -thru, specialty sandwich shop, and the third tenant is unknown at this time (Attachment #3). To accommodate the 8,000 sq. ft. building, the developer intends to purchase a portion of the city-owned property adjacent to the site. g: \admin \tg\sinclair\cc report 6- 10- 13.docx Chanhassen is a Community for Life - Providing for Today and Planning forTonnorrow Mayor & City Council June 10, 2013 Page 2 PROS AND CONS OF THE REDEVELOPMENT Pros • Could boost tax revenues (Attachment #4): 2012 Tax Estimates: - Current Development Pays - After Redevelopment Total City Portion $17,580 $1,494.81 $48,088 $4,800.00 • More Job Opportunities: In addition to the construction jobs created by the redevelopment, a minimum of 16 new jobs would be created by the new tenants. • Improving the environment by correcting the contaminated soils from the previously leaking tanks. • Elimination of the risk associated with liquid petroleum and automobile gas. • Improving the aesthetics of the area by introducing higher quality architecture. • Eliminates access points off of Dakota Avenue and avoids traffic conflict. Cons • Potential traffic increase on Dakota and Lake Drive. • Change in the neighborhood mix of retail. The excess right -of -way is not buildable in its current configuration. The area is better served by combining the two parcels (Sinclair and city parcel) for one larger development. TERMS OF THE PURCHASE AGREEMENT Purchase Price: $85,000 ($3.20 per sq. foot x 26,531 sq. ft.) Closing: No later than June 1, 2014 Real Estate Commission: Lotus Real Estate Services, 3% of purchase price or $2,550 Contingency: Sale is contingent upon the project receiving site plan approval from the city Staff supports the proposed redevelopment and the attached purchase agreement. In most cases, cities would provide monetary support for a redevelopment project similar to this request; specifically, assistance with soil corrections or relocation of utilities. Selling a portion of the city's excess right -of -way makes the project feasible for the city and developer. Mayor & City Council June 10, 2013 Page 3 RECOMMENDATION Staff recommends approval of the attached Vacant Land Purchase Agreement with Center Companies for a purchase price of $85,000. ATTACHMENTS 1. Purchase Agreement dated May 7, 2013 2. Air Photo of the City's and Sinclair Properties 3. Proposed Redevelopment Site Plan 4. Proposed Taxes on an 8,000 sq. ft. Retail Center VACANT LAND PURCHASE AGREEMENT 1. PARTIES. This Purchase Agreement is made on the day of 2013, by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation, ( "Seller "), and CENTER COMPANIES, LLC, a Minnesota limited liability company ( "Buyer "). 2. OFFER/ACCEPTANCE. Buyer offers to purchase and Seller agrees to sell the following property the real property located in Carver County, Minnesota, described on the Exhibit A attached hereto and incorporated herein by reference ( "Land "), together with all easements and rights benefiting or appurtenant to the Land (collectively the "Property ") 3. PRICE AND TERMS. The total purchase price ( "Purchase Price ") for the Property included under this Purchase Agreement is Eighty-Five Thousand and No /100 Dollars ($85,000.00). The Purchase Price shall be payable as follows: A. Earnest Monev $1,000.00 as earnest money ( "Earnest Money ") which Earnest Money shall be held by Land Title, Inc. in an interest - bearing trust account ("Title Company ") in accordance with the Escrow Agreement attached hereto as Exhibit B. All Earnest Money shall be: (i) distributed to Seller at the time of closing to be applied to the Purchase Price; (ii) distributed to Seller as liquidated damages and as Seller's sole remedy, in the event Seller performs all of its obligations under this Agreement and Buyer fails to close as required in this Agreement. The Earnest Money will be returned to the Buyer in the event of (i) refusal of the Seller to perform its obligations under this Agreement; or (ii) Buyer's termination ofthis Agreement with the Contingency Period as hereinafter set forth. Buyer's sole remedy if Seller refuses to perform its obligations shall be to have the Earnest Money returned. B. Balance of Purchase Price The balance of Purchase Price in cash or by wire transfer of U.S. Federal Funds on the Closing Date as hereinafter defined. 4. DEED/MARKETABLE TITLE. Upon performance by Buyer, Seller shall execute and deliver to Buyer a Limited Warranty Deed, conveying good and marketable title of record, subject to: A, Reservations of minerals or mineral rights by the State of Minnesota, if any; B. Building and zoning laws, ordinances, state and federal regulations; and C. The lien of real property taxes and the lien of special assessments and interest due thereon, if any, payable in the year of closing which by the terms of this Purchase Agreement are to be paid or assumed by the Buyer. D. Items identified in Section 9 of this Agreement; 16740107 E. Any encumbrances shown on the title commitment to which Buyer has not objected to prior to the expiration of the twenty (20) day period provided under Section 9 of this Agreement ( "Permitted Encumbrances "). 5. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. A. Prior Years' Delinquent Real Estate Taxes and Delinquent Special Assessments Delinquent real estate taxes payable in years prior to the year of Closing and delinquent installments of special assessments certified for collection with real estate taxes payable in years prior to the year of Closing, together with penalty, interest and costs, shall be paid by Seller not later than the Date of Closing. B. Real Estate Taxes Payable in the Year of Closing Real estate taxes payable in the year of Closing shall be prorated between Seller and Buyer on a calendar year basis to the Date of Closing. Buyer shall assume installments not paid at Closing. Seller shall pay penalty, interest and costs on any delinquent installment of taxes and special assessments payable by Seller in the year of Closing. C. Deferred Real Estate Taxes Seller 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 the recording of the Deed. Provision for payment shall be by payment into escrow of 1.5 times the estimated payoff amount of the deferred taxes. D. Certified Special Assessments All installments of special assessments certified for payment with the real estate taxes payable in the year of Closing shall be paid by Seller at Closing. E. Pending Special Assessments Seller 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 authorities. Seller's provision for payment shall be by payment into escrow of 1.5 times the estimated amount of the assessments. 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 Seller 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) Rescind this Agreement, in which case all Earnest Money shall be refunded to Buyer. F. All Other Levied Special Assessments Seller shall pay on the Date of Closing all other special assessments levied as of the date of this Purchase Agreement. 6. SELLER'S BOUNDARY LINE, ACCESS, RESTRICTIONS AND LIEN WARRANTIES. Seller warrants that buildings are entirely within the boundary lines of the Property. Seller warrants that there has been no labor or material furnished to the Property for Seller for which payment has not been made. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the Property. Seller warrants that the Property is not subject to a lien for Medical Assistance or other public assistance. 7. ACCESS PRIOR TO CLOSING. Upon reasonable notice to Seller, Buyer and Buyer's authorized agents shall have the right during the period from the date of this Agreement to the Date of Closing to enter in and upon the Property in order to make, at Buyer's expense, surveys, measurements, soil tests and other tests that Buyer shall deem necessary. Buyer agrees to restore any resulting damage to the Property and to indemnify, hold harmless and defend Seller from any and all claims by third persons of any nature whatsoever arising from Buyer's right of entry hereunder, including all actions, proceedings, demands, assessments, costs, expenses and attorneys' fees. Buyer shall not perform any invasive testing of the Property without Seller's prior written consent. Seller's consent may be conditioned upon any restrictions that Seller deems necessary. Buyer shall provide to Seller a copy of any such surveys, measurements, soil tests or other tests within five (5) days after receipt. 8. POSSESSION. Seller shall deliver possession of the Property not later than the actual date of closing. 9. TITLE INSURANCE. Within fifteen (15) days following the date of this Agreement, Seller, at its expense, shall furnish a title insurance commitment in the full amount of the Purchase Price issued by Land Title, Inc. ( "Title Company ") or another title insurance company reasonably satisfactory to Buyer, certified to date to include proper searches covering bankruptcies, state and federal judgments and liens, by which said company commits to issue its policy of title insurance that insures that at closing Buyer shall have good, marketable and insurable title of record to the Premises, free and clear of all liens, encumbrances, leases except for the following: (i) All declarations, covenants, conditions, drainage and utility easements currently of record; (ii) Zoning and all other governmental ordinances, regulations, requirements and laws; (iii) Those exceptions shown on the Commitment; (iv) Easement in favor of Northern States Power Company dated December 22, 1097, filed 1/8/1988 as Document No. 93091; (v) License in favor of U.S. Communications, Inc. dated June 27, 1991 filed July 3, 1991 as Document No. 125470; (vi) Driveway Easement dated March 19, 2005, filed April 6, 2005 as Document No. A411280; Buyer shall be allowed twenty (20) business days after receipt of the title commitment and land survey for examination of title and making any objections, which shall be made in writing or deemed waived. 10. TITLE CORRECTIONS AND REMEDIES. Seller shall have twenty (20) business days from receipt of Buyer's written title objections to notify Buyer of Seller's intention to make title marketable within one hundred twenty (120) days from Seller's receipt of such written objections. If notice is given, payments hereunder required shall be postponed pending correction of title, but upon correction of title within ten (10) days after written notice to Buyer, the parties shall perform the Agreement according to its terms. If no such notice is given, or if notice is given but title is not corrected within the time provided for, this Agreement shall be null and void, at the option of Buyer, and in such case, neither party shall be liable for damages hereunder to the other. 11. 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. 12. MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota. 13. WELL DISCLOSURE. [Check one of the following: ] XX Seller certifies that Seller does not know of any wells on the Property. Wells on the Property are disclosed by Seller on the attached Well Disclosure form. 14. DISCLOSURE OF INDIVIDUAL ON -SITE SEWAGE TREATMENT SYSTEM. [Check one of the following: J XX Seller certifies that Seller does not know of any individual on -site sewage treatment systems on the Property. _ Individual on -site sewage treatment systems on the Property are disclosed by Seller on the attached Disclosure form. 15. SELLER'S COVENANTS, REPRESENTATIONS AND WARRANTIES. A. Seller, as part of the consideration therefore, represents warrants, and covenants with Buyer and its successors and assigns that: (1) Seller has the present full authority and power to execute this Agreement and to close the sale of the Property. (2) That Seller has not received notice of (a) any actual or pending litigation or proceeding by any organization, person, individual or governmental agency against Seller with respect to the Property or against the Property, (b) any violation of the Property's compliance with applicable fire safety laws, building code ordinances, zoning ordinances or any similar statutes, ordinances, laws, rules or regulations, (c) any condition, defect or inadequacy which, if not corrected, would result in the termination of, or increase in the cost of, insurance coverage, (d) any proceedings which could cause the change, redefinition or other modification of the zoning classifications or of other legal requirements applicable to the Property or any part thereof, or (e) any pending or threatened condemnation proceeding that would affect the Property. (3) Except as set forth in Section 9, on the Date of Closing there will be no (a) outstanding leases or occupancy agreements, or (b) 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 pay off except such contracts as shall be agreed upon by Seller and Buyer for improvements to the Property and Seller shall cause to be discharged all mechanic's or materialmen's liens arising from any labor or materials furnished to the Property prior to the Date of Closing. (4) Seller will not, without the prior written consent of Buyer: (a) construct or enter into any agreement or commitment to construct any improvement or alteration to the Property; or (b) enter into or consent to any lease, easement, covenant or other obligation affecting the Property or alteration to the Property except as provided herein. (5) Seller shall deliver to Buyer a written notice of the commencement of any legal action by any governmental authority or third party affecting the Property and will make no concessions or settlements with respect to any such action without Buyer's prior written consent. (6) 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 Buyer. B. All of Seller's covenants, representations and warranties in this Agreement shall be true as of the date hereof and of the Closing Date, and shall be a condition precedent to the performance of Buyer's obligations hereunder. C. PROTECTED HISTORICAL SITES. [Select either (1) or (2) below.] X Seller represents that Seller does not know if there are historical, native 5 American, or archeological materials on or in the property that might be protected by law. _ Seller represents that the property does not have any American Indian burial grounds, other human burial grounds, ceremonial earthworks, historical materials, and/or other archeological sites that are protected by federal or state law. Buyer's obligation to close is contingent upon Buyer determining to Buyer's satisfaction that the property does not have any American Indian burial grounds, other human burial grounds, ceremonial earthworks, historical materials, and/or other archeological sites that are protected by federal or state law. 16. SELLER'S AFFIDAVIT. At closing, Seller 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. 17. CLOSING. The closing (the "Closing ") of the purchase and sale contemplated by this Agreement shall occur at a location designated by Buyer, and shall occur on or before June 1, 2014 ( "Closing Date "). At closing, Seller and Buyer shall disclose their Social Security Numbers or Federal Tax Identification Numbers for the purposes of completing state and federal tax forms. 18. CLOSING DOCUMENTS. A. At the Closing, Seller shall execute and/or deliver to Buyer the following (collectively the "Closing Documents "): (1) Limited Warranty Deed A Limited Warranty Deed in recordable form and reasonably satisfactory to Buyer, which shall include the following well representations: "Seller certifies that the Seller does not know of any wells on the described Property." (2) Seller's Affidavit A standard form affidavit by Seller indicating that on the date of Closing there are no outstanding, unsatisfied judgments, tax liens or bankrupt- cies against or involving Seller or the Property; that there has been no skill, labor or material furnished to the Property for which payment has not been made or for which mechanic's liens could be filed; and that there are no other unrecorded interests in the Property. (3) Non - Foreign Person Certification A certification in form and content satisfactory to the parties hereto and their counsel, properly executed by Seller, containing such information as shall be required by the Internal Revenue Code, and the regulations issued there under, in order to establish that Seller is not a "foreign person" as defined in § 1445(f)(3) of such Code and such regulations. (4) Storage Tanks If required, an affidavit with respect to storage tanks pursuant to Minn. Stat. § 116.48. (5) Well Certificate If there is a well located on the Property, a well disclosure certificate in form and substance true to form for recording. (6) Certification A certification that the representations and /or warranties made by Seller is materially the same as were in existence on the date of this Agreement or noting any changes thereto; and (7) Other Documents All other documents reasonably determined by either party or the title insurance company to be necessary to transfer and provide title insurance for the Property. B. At the Closing, Buyer shall execute and deliver to Seller the following: (1) All documents reasonably determined by either party or the title insurance company to be necessary to provide title insurance for the Property; (2) Payment of the Purchase Price. 19. CLOSING COSTS. The costs relating to the closing of this transaction shall be paid as follows: A. Buyer shall pay: (1) Recording fee for the Limited Warranty Deed; (2) One -half of the closing fee charged by the Title Company; and (3) The premium for owner's title insurance, including survey coverage. B. Seller shall pay: (1) All costs of obtaining a title insurance commitment; (2) State deed tax; (3) One -half of the closing fee charged by the Title Company; and (4) Conservation fee attributable to the Limited Warranty Deed 20. ADDITIONAL TERMS. A. Buyer's Contingencies Buyer's obligations under this Agreement are contingent upon the following ( "Buyer's Contingencies ") expressly contingent upon Buyer's satisfaction with each of the following prior to Closing: (1) The representations and warranties of Seller set forth in this Agreement must be true as of the date of this Agreement and on the Closing Date, and Seller shall have delivered to Buyers at Closing a certificate dated the Closing Date, signed by Seller, certifying that such representations and warranties are true as of the Closing Date. (2) Buyer determining on or before the Closing Date, that it is satisfied, in its sole discretion, with the results of matters disclosed by a Phase I Environmental Audit or by any environmental /engineering investigation or testing of the Property performed by Buyer or Buyer's agent. By executing this Agreement, Seller hereby authorizes Buyer to enter upon the Property at reasonable times to conduct the investigations and/or tests described herein. Buyer shall be solely responsible for all environmental tests and shall hold Seller harmless from any such costs and shall indemnify Seller for breach of this provision including reasonable attorneys' fees. (3) Buyer shall have obtained financing in an amount satisfactory to Buyer in its sole discretion. (4) Buyer shall obtain approval from all governing authorities for Buyer contemplated re- development project all in Buyers sole discretion. Seller and Buyer agree that the transaction contemplated herein is contingent upon the performance or resolution of the contingencies contained in this Section. In the event any of the Contingencies have not been satisfied or waived, in the sole and absolute judgment of Buyer by the May 1, 2014 ( "Contingency Period "), the Buyer may terminate this Agreement by giving written notice to the Seller. The Contingencies are for the sole benefit of the Buyer and the Buyer shall have the right to waive any or all of the Buyer Contingencies by written notice to the Seller. Termination of this Agreement by Buyer as a result of any of the Contingencies not being satisfied shall result in both parties hereto being relieved of any further rights, responsibilities or obligations hereunder other than the return of the Earnest Money to Buyer. Upon Termination of this Agreement by Buyer, Buyer shall execute a Quit Claim Deed of the Property to the Seller terminating Buyer's interest in this Purchase Agreement. B. Seller's Contingencies Seller's obligations under this Agreement are contingent upon the following ( "Seller's Contingencies ") expressly contingent upon Seller's satisfaction with each of the following prior to Closing: (1) Buyer and Seller entering into a Site Plan Agreement for the Property, approved by the Chanhassen City Council. Seller and Buyer agree that the transaction contemplated herein is contingent upon the performance or resolution of the contingencies contained in this Section. In the event any of the Contingencies have not been satisfied or waived, in the sole and absolute judgment of Seller by the May 1, 2014 ("Contingency Period "), the Seller may terminate this Agreement by giving written notice to the Buyer. The Contingencies are for the sole benefit of the Seller and the Seller shall have the right to waive any or all of the Seller Contingencies by written notice to the Buyer. Termination of this Agreement by Seller as a result of any of the Contingencies not being satisfied shall result in both parties hereto being relieved of any further rights, responsibilities or obligations hereunder other than the return of the Earnest Money to Buyer. Upon Termination of this Agreement b by Seller, Buyer shall execute a Quit Claim Deed of the Property to the Seller terminating Buyer's interest in this Purchase Agreement. C. "AS IS" Purchase Except as set forth in this Purchase Agreement or any document contemplated hereby, (i) the Property is being sold, conveyed, assigned, transferred and delivered "as is, where is" on the date hereof, and in its condition on the date hereof, "with all faults," and Seller is not making, and expressly disclaims, any other representation or warranties written or oral, statutory, express or implied, concerning the Property, including but not limited to, representations or warranties relating to value or quality of the Property or with respect to this Purchase Agreement or the transactions contemplated hereby or thereby, and (ii) Seller specifically disclaims any representation or warranty of merchantability, usage, suitability or fitness for any particular purpose with respect to the Property or any part thereof, or as to the workmanship thereof, or the absence of any defects therein, whether latent or patent. 21. ADDENDA. Attached are no addenda which are made a part of this Purchase Agreement. 22. TIME IS OF THE ESSENCE. Time is of the essence for all provisions of this Purchase Agreement. 23. MULTIPLE ORIGINALS. Seller and Buyer have signed two (2) originals of this Purchase Agreement. 24. REAL ESTATE COMMISSION. Seller is responsible for a 3% sales commission to Lotus Real Estate Services. 0 The City agrees to sell the Property for the price and terms and conditions set forth above. SELLER: CITY OF CHANHASSEN And: Dated: 2013 M The Buyer agrees to buy the Property for the price and terms and conditions set forth above. BUYER: CENTER COMPANIES, LLC IC Dated: 2013 NOR EXHIBIT A PROPERTY: Outlot One (1), Chanhassen Estates, Carver County, Minnesota EXCEPT that part of Outlot One (1) Chanhassen Estates, described as follows: Beginning at the intersection of the East line of said Outlot 1, with a line hereafter described as "Line A" (said Line "A" is a line 50.00 feet Southeasterly of, measured at right angles to and parallel with that part of the Southerly right of way line of State Highway No. 5, as shown on said plat which has a radius of 2764.79 feet); thence South along the East line of said Outlot 1, a distance of 200.00 feet; thence West at right angles to said East line, a distance of 150.00 feet; thence Northwesterly to a point on said "line A ", distant 200.00 feet Southwesterly, measured along said "Line A" from the point of beginning; thence Northeasterly along said "Line A" a distance of 200.00 feet to the point of beginning. Zia EXHIBIT B ESCROW AGREEMENT The undersigned, Land Title, Inc. ( "Escrow Agent ") acknowledges receipt of One Thousand and No /100 Dollars ($1,000.00) (the "Deposit') to be held by it pursuant to the terms of the Purchase Agreement attached to this Escrow Agreement. Escrow Agent agrees to hold the Deposit in accordance with the terms of the Purchase Agreement and disburse the same strictly in accordance with such terms. Escrow Agent shall invest the Deposit in such interest- bearing accounts or instruments as shall be approved by both the Buyer and the Seller. Interest shall accrue for the benefit of Buyer and shall become part of the Earnest Money. Seller represents that its Tax I.D. Number is as follows: 41- 0885331. Buyer represents that its Tax I.D. Number is as follows: The sole duties of Escrow Agent shall be those described herein, and Escrow Agent shall be under no obligation to determine whether the other parties hereto are complying with any requirements of law or the terms and conditions of any other agreements among said parties. Escrow Agent may conclusively rely upon and shall be protected in acting upon any notice, consent, order or other document believed by it to be genuine and to have been signed or presented by the proper party or parties. Escrow Agent shall have no duty or liability to verify any such notice, consent, order or other document, and its sole responsibility shall be to act as expressly set forth in this Agreement. Escrow Agent shall be under no obligation to institute or defend any action, suit or proceeding in connection with this Agreement unless first indemnified to its satisfaction. Escrow Agent may consult with respect to any question arising under this Agreement and shall not be liable for any action taken or omitted in good faith upon advice of such counsel. The fees and charges of the Escrow Agent shall be paid as follows: one -half of such fees and charges shall be paid by Seller and one -half of such fees and charges shall be paid by Buyer. ESCROW AGENT: Dated: LAND TITLE, INC. Its: 13 SELLER: Dated: Dated: CITY OF CHANHASSEN I: I • C CENTER COMPANIES, LLC 14 CITY OF CHANHAS3EN 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: 952.2271170 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: 952.2271130 Fax: 952.227.1110 Public Works 7901 Park Place Phone: 952.227.1300 Fax 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.cichanhassennn.us MEMORANDUM TO: Mayor & City Council FROM: Todd Gerhardt, City Manager DATE: June 10, 2013 Q SUBJ: Approve Purchase Agreement with Center Companies for Redevelopment of Ivan's Sinclair Gas Station, 7910 Dakota Avenue no PROPOSED MOTION: "The City Council approves the Vacant Land Purchase Agreement between the City of Chanhassen Center Companies in the amount of $85,000 for purchase of excess right -of -way associated with the Sinclair property at 7910 Dakota Avenue. Approval requires a simple majority vote of the city council. Attached please find a Vacant Land Purchase Agreement between the City of Chanhassen and Center Companies (Attachment #1). Center Companies President Ben Merriman has been active in redeveloping sites in Chanhassen for the past several years, including Goodwill and Haskell's. Mr. Merriman is now working on the redevelopment of the Sinclair Gas Station site at 7910 Dakota Avenue (Attachment #2). PROPOSED REDEVELOPMENT PLANS Currently, the Sinclair gas station sits on approximately .6 acres of land. It operates as a gas station/convenience store and sells liquid petroleum out of a 2,000 - gallon bulk storage tank just north of the store. The property is zoned Highway Business and the site conforms to all of the city's zoning regulations with the exception of site coverage percentage. Center Companies is proposing to demolish the convenience store and remove both the liquid petroleum and the underground gas tanks. In its place, Center Companies would build an 8,000 sq. ft. retail center that would accommodate three tenants. The tenant mix includes a coffee shop with a drive -thru, specialty sandwich shop, and the third tenant is unknown at this time (Attachment #3). To accommodate the 8,000 sq. ft. building, the developer intends to purchase a portion of the city-owned property adjacent to the site. g: \admin \tg\sinclair\cc report 6- 10- 13.docx Chanhassen is a Community for Life - Providing for Today and Planning forTonnorrow CITY OF CHANHAS3EN 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: 952.2271170 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: 952.2271130 Fax: 952.227.1110 Public Works 7901 Park Place Phone: 952.227.1300 Fax 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.cichanhassennn.us MEMORANDUM TO: Mayor & City Council FROM: Todd Gerhardt, City Manager DATE: June 10, 2013 Q SUBJ: Approve Purchase Agreement with Center Companies for Redevelopment of Ivan's Sinclair Gas Station, 7910 Dakota Avenue no PROPOSED MOTION: "The City Council approves the Vacant Land Purchase Agreement between the City of Chanhassen Center Companies in the amount of $85,000 for purchase of excess right -of -way associated with the Sinclair property at 7910 Dakota Avenue. Approval requires a simple majority vote of the city council. Attached please find a Vacant Land Purchase Agreement between the City of Chanhassen and Center Companies (Attachment #1). Center Companies President Ben Merriman has been active in redeveloping sites in Chanhassen for the past several years, including Goodwill and Haskell's. Mr. Merriman is now working on the redevelopment of the Sinclair Gas Station site at 7910 Dakota Avenue (Attachment #2). PROPOSED REDEVELOPMENT PLANS Currently, the Sinclair gas station sits on approximately .6 acres of land. It operates as a gas station/convenience store and sells liquid petroleum out of a 2,000 - gallon bulk storage tank just north of the store. The property is zoned Highway Business and the site conforms to all of the city's zoning regulations with the exception of site coverage percentage. Center Companies is proposing to demolish the convenience store and remove both the liquid petroleum and the underground gas tanks. In its place, Center Companies would build an 8,000 sq. ft. retail center that would accommodate three tenants. The tenant mix includes a coffee shop with a drive -thru, specialty sandwich shop, and the third tenant is unknown at this time (Attachment #3). To accommodate the 8,000 sq. ft. building, the developer intends to purchase a portion of the city-owned property adjacent to the site. g: \admin \tg\sinclair\cc report 6- 10- 13.docx Chanhassen is a Community for Life - Providing for Today and Planning forTonnorrow CITY OF CHANHAS3EN 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: 952.2271170 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: 952.2271130 Fax: 952.227.1110 Public Works 7901 Park Place Phone: 952.227.1300 Fax 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.cichanhassennn.us MEMORANDUM TO: Mayor & City Council FROM: Todd Gerhardt, City Manager DATE: June 10, 2013 Q SUBJ: Approve Purchase Agreement with Center Companies for Redevelopment of Ivan's Sinclair Gas Station, 7910 Dakota Avenue no PROPOSED MOTION: "The City Council approves the Vacant Land Purchase Agreement between the City of Chanhassen Center Companies in the amount of $85,000 for purchase of excess right -of -way associated with the Sinclair property at 7910 Dakota Avenue. Approval requires a simple majority vote of the city council. Attached please find a Vacant Land Purchase Agreement between the City of Chanhassen and Center Companies (Attachment #1). Center Companies President Ben Merriman has been active in redeveloping sites in Chanhassen for the past several years, including Goodwill and Haskell's. Mr. Merriman is now working on the redevelopment of the Sinclair Gas Station site at 7910 Dakota Avenue (Attachment #2). PROPOSED REDEVELOPMENT PLANS Currently, the Sinclair gas station sits on approximately .6 acres of land. It operates as a gas station/convenience store and sells liquid petroleum out of a 2,000 - gallon bulk storage tank just north of the store. The property is zoned Highway Business and the site conforms to all of the city's zoning regulations with the exception of site coverage percentage. Center Companies is proposing to demolish the convenience store and remove both the liquid petroleum and the underground gas tanks. In its place, Center Companies would build an 8,000 sq. ft. retail center that would accommodate three tenants. The tenant mix includes a coffee shop with a drive -thru, specialty sandwich shop, and the third tenant is unknown at this time (Attachment #3). To accommodate the 8,000 sq. ft. building, the developer intends to purchase a portion of the city-owned property adjacent to the site. g: \admin \tg\sinclair\cc report 6- 10- 13.docx Chanhassen is a Community for Life - Providing for Today and Planning forTonnorrow