1i. Purchase Agreement for Hwy 101 Realignment / ,�
CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A. ____.-`
Attorneys at Law
' Thomas J. Campbell
Roger N. Knutson (612) 456-9539
Thomas M. Scott Facsimile (612) 456-9542
Gary G. Fuchs
' James R. Walston
Elliott B. Knetsch July 11 , 1990
Dennis J. Unger
Mr. Don Ashworth
Chanhassen City Hall
P. 0. Box 147
Chanhassen, MN 55317
Re: Condemnation of Abbie Bongard Property
' for Highway 101 Realignment
Dear Mr. Ashworth:
As you know, as part of the realignment of Highway 101, the
City had commenced condemnation of the property owned by Abbie
Bongard that lies north of West 78th Street and directly east of
' the intersection of the railroad and the east end of West 78th
Street. In the early stages of the condemnation action, Harvey
Swenson was retained by the City as an appraiser and his appraised
value of the property in June of 1989 was $300,000.
Prior to the City' s condemnation action, Mrs. Bongard had
entered into a Purchase Agreement with Meid Development Company
' and had agreed to sell the subject property to Meid Development
for $330, 000. In later discussions, Meid claimed that the prop-
erty was worth $360 ,000 but that the purchase price had been
' reduced because Mrs. Bongard was to remain in the property, rent
free, for a period of time.
' Meid Development later had some contact with the City regard-
ing development of the subject property, but made no serious
efforts to submit any specific plan for City approval. However,
Meid asserted a claim to compensation in the condemnation action
' alleging that its efforts in development had added value to the
property.
' In our initial efforts to resolve the condemnation action,
attorneys for Mrs. Bongard and Meid Development demanded approxi-
mately $450 ,000 to settle the case. Through negotiations, that
demand was reduced somewhat to approximately $425 ,000. Subsequent
' discussions directly with Mrs. Bongard by you and Mayor Chmiel
have had significant impact. The most recent demand by the
attorneys for Mrs. Bongard and Meid Development is for a total
t payment of $360,000 -- $330,000 to Mrs. Bongard and $30, 000 to
Meid Development.
IOT!
Yankee Square Office III • Suite 202 • 3460 Washington Drive • Eagan, MN 55122,
I
July 11, 1990
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Based on the one year old appraisal of Mr. Swenson that the
value of the property is $300,000, and the fact that the property
values in Chanhassen have increased in the past year, and that
settlement now will save the City the costs associated with a
condemnation action, it is our recommendation that the City agree
to the most recent settlement proposal to pay $360, 000 to acquire
fee title to the Bongard property.
I will await the Council ' s decision on this recommendation.
If you have any questions about any of this, please feel free to
contact me.
Very truly yours,
CAMPBELL, KNUTSON, SCOTT &
FUCHS, Pl.. I
BY: </I rd -
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Ga i/ G/ Fuc
GGF/rwg I
Manager's Comments: Please note that this action is formalizing
approval given by this office on July 12, 1990. To the best of my
knowledge, I did speak with each Council member individually
explaining the status of the negotiations/condemnation commissioner
hearings. Please note that the hearing costs were estimated at
$20, 000 to $50, 000 - such affecting the overall decision to accept
the proposed settlement. Settlement was achieved following various
meetings which included the Mayor and Councilwoman Dimler.
Formal approval of the settlement offer is recommended.
D W ( �- 1
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