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D-5a-C. Highway 101 Improvements, Pioneer Trail to Flying Cloud Drive: b- 5a.- -e. ,................... CITY OF MEMORANDUM CHANH"' SEN TO. Todd Gerhardt, City Manager 7700 Market Boulevard . PO Box 147 FROM. Paul Oehme, Director of Public Works/City Engineer Chanhassen,MN 55317 DATE: May 11, 2015 0.@ Administration Phone 952 2271100 SUBJ• Highway 101 Improvement (Flying Cloud Dnve to Pioneer Trail) Fax 952 2271110 Project No. 14-08. Approve Acquisition of Property at 675 Lakota Building Inspections Lane Phone 952 2271180 Fax 952 2271190 PROPOSED MOTION Engineering Phone 952 2271160 Fax 952 2271170 "The City Council approves an Agreement with MnDOT for Right-of-Way Acquisition, a Joint Powers Agreement with Carver County, and a Purchase Finance Agreement with Property Owner, Andrea Carty" Phone 952 2271140 Fax 952 2271110 City Council approval requires a simple/super majonty vote of the City Council present. Park&Recreation Phone 952 2271120 Fax 952 2271110 BACKGROUND Recreation Center 2310 Coulter Boulevard The City of Chanhassen in partnership with Carver County and MnDOT is leading an Phone 952 2271400 Fax 952 2271404 environmental study and preliminary engineering for Highway 101 from Pioneer Trail to Flying Cloud Dnve. This segment of Highway 101 is the last remaining Planning& unimproved section of the Highway 101 comdor between TH 5 and the City of Natural Resources Shakopee. Highway 101, which is Phone 952 2271130 still under the junsdiction of the t' , Ati '¢ Fax 952 2271110 �'"" TX 101 Im ov.m.nts State, has never been reconstructed to r t. s n Public Works modern standards and has significant Fi°^c'erTraa 7901 Park Place alignment, vertical grade and - ,,, �,.. . Phone 952 2271300 drainage issues that need attention r r Fax 952 2271310 The study will determine the estimated cost of the proposed •Qin Project Location Senior Center improvements including land c�°4o,.- • Phone 952 2271125 ,1+ �� acquisition and construction costs in - 1 '.. ouao Fax 952 2271110 4 • order to ready the roadway for future Website funding opportunities. Once the Q =1 River Crossing/ RIC www ci chanhassen mn us roadway has been reconstructed or 61 programmed (funded) for , 101' reconstruction, it will be transferred Tt,1o1 Rim tr.ssi to Carver County as CSAH 101 1 `�""r'��M"`ng/ i Chanhassen is a Community for Life-Providing for Today and Planning for Tomorrow Todd Gerhardt Highway 101 Improvement Proposed Property Acquisition May 11,2015 Page 2 The project team is reviewing four alternative alignments for this corridor. All four alternatives will necessitate the purchase of the property at 675 Lakota Lane for roadway improvements. The property owner, Andrea Carty, desires to sell the property at this time but due to the pending roadway project, has not been able to sell it MnDOT, Carver County and the City all have worked on finding a solution for Ms Carty MnDOT and Carver County have both agreed to split the cost to purchase of the property equally between the three agencies The City hired an appraiser for determining the property value The appraisal and the closing criteria have followed the federal property acquisition guidelines. The property owner has accepted the purchase price and wishes to close on the property as soon as possible The terms of the agreement also includes Ms. Carty renting the property back to the City with a one year lease The rental fee is for $1,200/month. If a roadway construction project is not programmed after one year, Ms Carty will have the option to stay longer Staff feels this is a good option since the property will not be vacant. The City's share of the purchase would be $208,000 This cost includes splitting the attorney's fees, appraisal, and all closing costs between the three agencies. The City's attorney's office would complete the closing on the property and the property title would be in the City of Chanhassen's name Once Highway 101 is upgraded,this property would go to Carver County road right-of-way Attachments.. 1 Property Card 2. Agreements 3 Property Appraisal Summary Pages 4 CIP Page g\eng\public\_2014 projects\14 08 th101 -pioneer trail to csah 61\council backgrounds presentations\bkgd cc 051115 rw purchase doe Property Card Parcel ID Number 250362300 41111.1111 - Lakotaln _ Taxpayer Information L1 ir _ I, ,� Taxpayer Name - + ANDREA S CARTY i .+ 1 Mailing Address ::...._,,::1"..4,- ..01.- _ 675 LAKOTA LN ., , 101 ' CHASKA, MN 55318-9455 �" � e : .ite,i. 9 hi . ,.i,. Property Address a , x r. . Atf.' '-#4" f II . . Address 4 675 LAKOTA LN 41 • BLUFF4.0110111 PARK I City _' CHASKA, MN 55318 : �,� -x t Parcel Information Uses Res 1 unit GIS Acres 7.42 Deeded Acres 8 32 Plat Lot Block Tax Description Building Information Building Style TRI-LEVEL Above Grade 2030 Bedrooms 3 Finished Sq Ft Year Built 1956 Garage Y Bathrooms 1 75 Miscellaneous Information School District Watershed District Homestead Green Acres Ag Preserve 0112 WS 060 LOWER MN RIVER Y N N Assessor Information Estimated Market Value 2014 Values 2015 Values (Payable 2015) (Payable 2016) Last Sale Land $239,500 00 $252,800 00 Date of Sale 11/03/2005 Building $257,400 00 $261,600 00 Sale Value $594,900 00 Total $496,900 00 $514,400 00 The data provided herewith is for reference purposes only.This data is not suitable for legal engineering surveying or other similar purposes Carver County does not guarantee the accuracy of the information contained herein This data is furnished on an as is basis and Carver County makes no representations or warranties either expressed or implied for the merchantability or fitness of the fa' ,f information provided for any purpose This disclaimer is provided pursuant to Minnesota Statutes§466.03 and the user of the data -rr---- provided herein acknowledges that Carver County shall not be liable for any damages,and by using this data in any way expressly waives all claims and agrees to defend,indemnify,and hold ' harmless Carver County,its officials,officers,agents,employees,etc from any and all claims brought by anyone who uses the information provided for herein,its employees or agents,or CARVER third parties which arise out of user's access.By acceptance of this data the user agrees not to transmit this data or provide access to it or any part of it to another party unless the user includes COUNTY with the data a copy of this disclaimer Tuesday, May 05, 2015 Carver County, MN MnDOT Agreement No 1000107 Work Order 01 X the appropriate line Payable by State X Receivable by State STATE OF MINNESOTA WORK ORDER UNDER MASTER PARTNERSHIP CONTRACT State Project(SP): 1009-26 Trunk Highway(TH): 101 Project Identification: MnDOT to reimburse City of Chanhassen for Right of Way expenses. This Work Order Contract is issued under the authority of State of Minnesota, Department of Transportation (MnDOT)Master Partnership Contract No 1000107 between the state of Minnesota acting through its Commissioner of Transportation("State") and The City of Chanhassen,a political subdivision of the State of Minnesota("Local Government")and is subject to all applicable provisions and covenants of that Agreement which are incorporated herein by reference Work Order Contract Article 1 Term of Work Order Contract; Incorporation of Exhibits: 1 1 Effective date• This Work Order Contract will be effective on the date that all required signatures are obtained by State,pursuant to Minnesota Statutes Section 16C 05, subdivision 2 The Providing Agency must not begin work under this Contract until ALL required signatures have been obtained and the Providing Agency has been notified in writing to begin such work by the Requesting Agency's Authorized Representative 1 2 Expiration date This Work Order Contract will expire on December 31, 2015,or when all obligations have been satisfactorily fulfilled, whichever occurs first 1 3 Exhibits Exhibits A through C are attached and incorporated into this Work Order Contract Article 2 Nature of Work, Requesting and Providing Party. 2 1 X the blanks below to indicate the nature of the work to be performed See Article 3 Services Requiring a Work Order Contract, of the Master Partnership Contract for applicable definitions. Construction Administration Emergency Services X Professional/Technical Services Roadway Maintenance 2 2 X the blanks below to indicate which party is the"Requesting Party"and which party is the "Providing Party" 2 2 1 The Requesting Party is X State Local Government 2 2.2 The Providing Party is. State X Local Government Article 3 Scope of Work. 3 1 The Providing Party will perform services under this Work Order summarized generally as follows: MnDOT will pay City of Chanhassen a lump sum of$208,000 00 as full compensation for MnDOT's portion of the cost to acquire property rights for the city of Chanhassen to preserve right of way for the future alignment of TH 101 The parcel being acquired, 675 Lakota Lane, Chanhassen,MN 55318 as shown on Exhibit B Page 1 of 4 CM General Work Order Under a Master Partnership(Rev 04/05/13) MnDOT Agreement No 1000107 Work Order 01 3 2 The Providing Party will perform work in accordance with the"Standard Terms"contained in Exhibit A. 3 3 For a detailed description of work see Exhibit B and Article 4 `Deliverables by the Local Government Article 4 Deliverables by the Providing Party: 4 1 Deliverables are the work products created or supplied by the Providing Party pursuant to the terms of this Work Order. The detailed summary of the deliverables for this work order are as follows Deliverable Description Due Date Lump sum payment to MnDOT's share of Right of Upon receipt of invoice from Chanhassen for Right of Way Way for 675 Lakota Lane, Local Government. costs attributable to MnDOT Chanhassen,MN which will preserve the Right of Way needed for the future alignment of TH 101 Article 5 Items provided or completed by the Requesting Party 5 1 The following will be provided or completed by the Requesting Party.None. Article 6 Consideration of Payment: 6 1 The Requesting Party will pay for all services performed by the Providing Party on a Lump Sum basis 6 2 The Providing Party will submit invoices for payment in accordance with the following schedule One time payment 6 3 The Requesting Party's total obligation for all compensation and reimbursements to the Providing Party is $208,000 00 Article 7 Terms of Payment. 7 1 The Requesting Party will pay the Providing Party upon receipt of invoice and acceptance by the Providing Party's Project Manager 7 2 The Providing Party will submit signed invoices,and the signature will attest that the services have actually been performed,and that the claimed amounts have not been previously claimed or paid The Providing Party will use the format set forth in Exhibit C entitled"Invoice"when submitting Invoices Article 8 Local Government's Project Manager: 8 1 The Local Government's Project Manager for this Work Order is Name Paul Oehme Title Director of Public Works/City Engineer Name of Local Government City of Chanhassen Street Address PO Bo 147, 7700 Market Blvd City, State Zip Chanhassen,MN 55317 Phone: 952-227-1169 Email Address poehme@ci chanhassen mn us Page 2 of 4 CM General Work Order Under a Master Partnership(Rev 04/05/13) MnDOT Agreement No 1000107 Work Order 01 8 2 The Local Government 's Project Manager for this Work Order is responsible for overseeing the Local Government's fulfillment of its obligations under this Work Order,reviewing and approving invoices,resolving disputes related to this Work Order,and for giving or receiving any notices required or permitted by this Work Order Article 9 State's Prosect Manager: 9 1 The State's Project Manager,for this Work Order is Name Molly Kline Title South Area Support Engineer Name of Local Government MnDOT Metro District Street Address 1500 County Road B2 City, State Zip Roseville,MN 55113 Phone: 651-234-7723 Email Address molly kline@state.mn.us 9 2 The State's Project Manager is responsible for overseeing the State's fulfillment of its obligations under this Work Order,reviewing and approving invoices,resolving disputes related to this Work Order,and for giving or receiving any notices required or permitted by this Work Order. Article 10 Termination. 10 1 Termination by the State or Local Government The Local Government,the State or the Commissioner of Administration may cancel this Work Order at any time,with or without cause, upon 30 days' written notice to the other Party Upon termination,the Providing party will be entitled to payment,determined on a pro rata basis,for services satisfactorily performed 10 2 Termination for Insufficient Funding If the State is the Requesting Party,The State may immediately terminate this Work Order if it does not obtain funding from the Minnesota Legislature,or other funding source; or if funding cannot be continued at a level sufficient to allow for the payment of the services covered here Termination must be by written or fax notice to the Local Government The State is not obligated to pay for any services that are provided after notice and effective date of termination However,the Local Government will be entitled to payment,determined on a pro rata basis,for services satisfactorily performed to the extent that funds are available The State will not be assessed any penalty if the Work Order is terminated because of the decision of the Minnesota Legislature,or other funding source,not to appropriate funds The State must provide the Local Government notice of the lack of funding within a reasonable time of the State's receiving that notice Article 11 Additional Provisions NONE [THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK.] Page 3 of 4 CM General Work Order Under a Master Partnership(Rev 04/05/13) MnDOT Agreement No 1000107 Work Order 01 LOCAL GOVERNMENT COMMISSIONER OF TRANSPORTATION The local Government certifies that the appropriate person(s)have executed the contract on behalf of the Local Government as required by applicable articles,bylaws,resolutions or ordinances By By Title. Title District Engineer Date Date STATE ENCUMBRANCE VERIFICATION COMMISSIONER OF ADMINISTRATION The individual certifies funds have been encumbered as required by Minn Stat. 16A.15 and 16C 05 By• By Date. Title SWIFT Contract# Date SWIFT PO# Page 4 of 4 CM General Work Order Under a Master Partnership(Rev 04/05/13) MnDOT Agreement No 1000107 Work Order 01 EXHIBIT A—STANDARD TERMS STANDARD TERMS FOR PROFESSIONAL AND TECHNICAL SERVICES 1 The Providing Party will prepare all documents in accordance with Minnesota law,applicable Federal laws and regulations,and geometric design standards for trunk highway plans as described in the current versions of MnDOT Manuals,available through the MnDOT State Aid Division or on the MnDOT website, www dot state mn us 2 The Providing Party will,as applicable in developing plans,include the standard specifications from the latest edition of MnDOT Standard Specifications for Construction,and all amendments thereto 3 The Providing Party will furnish the personnel,services,supplies,and equipment necessary to properly perform, supervise,and document the work for the project(s) The services of the Providing Party to be performed hereunder may not be assigned, sublet,or transferred unless approved in writing by MnDOT This written consent will in no way relieve the Local Government from its primary responsibility for performance of the work [THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK.] Page 1 of 1 CM Exhibit A—Standard Terms under Master Partnership Work Order(Rev 08/03/2012) MnDO I-Agreement No. 1000107 Work Order No 01 Exhibit B Page 1 of 3 IDENTIFICATION Address: 675 Lakota Lane Chanhassen, MN 55318 County PID: 250362300 IN NW1/4 DESC AS COMM AT A PT WHERE W LINE NW1/4 INTERSECTS NLY R-O-WOF RR,&TH ELY ALONG NLY R-O-W 292'TO INTERSECT WITH ELY R- Legal: O-W HWY 101 BEING PT OF BEG TH NELY ALONG ELY R-O-W HWY 101 WHOSE COURSE IS ASFOLLOWS DEFL LEFT FROM NLY R-O-W OF RR 70* 45 Fee Owner: Andrea S Carty Census Tract#: 0907.02 REAL ESTATE TAXES Taxes,per County Records Payable 2013 Payable 2014 Tax $7,322 n/a Tax ratio 1.6% n/a Special Assessments/Solid Waste Fee/Other $0.00 Total Tax&Assessments: $7,322 n/a Delinquent taxes: None noted COUNTY ASSESSOR'S VALUE Payable 2013 Payable 2014 Land $218,800 $223,000 Building $237,300 $243,600 TOTAL' $456,100 $466,600 $per SF of GBA $224.68 per SF $229 85 per SF Typical Tax Ratios by Property Type j Commercial(retail,office, industrial, hotel, other,etc) 1.5%—4 0% Residential(multi-family,apartment,etc) 0 9%—1 5% ! Single-family dwellings ! 0 8%—1 5% The appraised value given In this report assumes any/all special assessments, and/or liens are paid in full and that there are no delinquent taxes, fees, payments, association dues, etc. Should it be found that any of these exist the amount should be deducted from the appraised value Appraiser did not research these items, typically, a title search would reveal any of these 6 Nagel!Appraisal&Consulting I 952-544 8966 I www calinagell com MnDOT Agreement No 1000107 Work Order No: 01 Exhibit B Page 2 of 3 PLAT MAP i it.-4, .;fr Iiiii4 ': AL•il-klit ' 1,1 AV '1 i°::,' „ Oirtilratriii. .A .k i it ,A• , ' ; '.,' J Ve. "'" .Ili;...I, • . a` 9s , is disal;pacajil} 1 1i • �N. f t' , �. v`•� �;i 1,-;,. �-:f ter; 7I.�} \ . f • • j , \ ..} ar .t•, `` 1 0. o 'err r t•'p . - - t i'=, i _ r'"" � • r - .1. /yam/' ' ; " t 4. - _ - Y `` � i • i t , • - 1- '' 1 �I �, j i+ ..y. 1� �it t ti Outline is approximate 16 Nagell Appraisal&Consulting I 952-544-8966 I www callnagell.com • MnDOT Agreement No 1000107 Work Order No• 01 1 Exhibit B Page 3 of 3 AERIAL VIEW 1 1 I ,111111hiaidorgi,ft- t 4 i 117 ''-' ‘:'11 Cr3) 'i i -N. . -fes_ Ili .. .,/:—', II • l lite. , , ., Outline is approximate 1 Nagell Appraisal&Consulting I 952-544-8966 I www.callnagell corn 17 MnDOT Contract No 1000107 WO Ol Reimbursement of Right of Way Costs Exhibit C-Invoice INVOICE NO 1 and FINAL Invoice Instructions Contractor must 1 Complete this invoice form in its entirety 2 Sign the invoice form 3 Attach supporting documentation,if applicable,and scan the entire invoice package*,in the following order a Completed,signed Invoice Form b Supporting Documentation(if applicable) Note Whenever possible, convert landscape pages to portrait pages and optimize the document to decrease the size 4. E-mail the invoice package,in pdf,to sharon lemay(aigmail.com MnDOT Contract No 1000107 WO 01 Estimated Completion 100% Contract Expiration Date December 31,2015 SP Number 1009-25 TH Number: 101 Invoice Date: Total Total Amount Billed Contract Billing Previously This Amount to Date Billed Invoice 1. Lump Sum Amount $208,000 00 $208,000 00 Net Earnings Totals: $ Total Amount Due This Invoice: I certify that the statements contained on this invoice,and its supporting documents,are true and accurate and that I have not knowingly made a false or fraudulent claim,or used a false or fraudulent record in connection with this Invoice I understand that this invoice is subject to audit Local Government Signature: Print Name Title 1 — (CSS/CM Last Updated 7/19/2013) JOINT POWERS AGREEMENT FOR RIGHT-OF-WAY PURCHASE AT 675 LAKOTA LANE, CHANHASSEN MINNESOTA FOR THE FUTURE HIGHWAY 101 IMPROVEMENTS THIS AGREEMENT IS FOR LAND PURCHASE FOR HIGHWAY 101, ("Agreement") is made and entered into as of the day of , 2015 by and between the City of Chanhassen ("City"), and the County of Carver ("County") (each sometimes hereinafter called "party" and both sometimes collectively "parties") the parties being governmental and political subdivisions of the State of Minnesota. WHEREAS, Highway 101 (TH 101)is located within the corporate limits of City; and WHEREAS, TH 101 will be junsdictionally transferred to Carver County when TH 101 is realigned and improved; and WHEREAS, m order for TH 101 improvements to be made right-of-way acquisitions need to take place,and WHEREAS, the property at 675 Lakota Lane will need to be purchased before TH 101 improvements are made; and WHEREAS, the owner of 675 Lakota Lane is a willing seller who has approached the City requesting the purchase of the property, and WHEREAS, the State of Minnesota, Carver County and the City of Chanhassen are agreeable to shanng equally the cost of purchasing the property, and WHEREAS, Carver County and the City of Chanhassen desire to undertake this joint project involving right-of-way purchase and other incidentals, and to share the costs of such purchase as herein provided, and WHERAS, the State of Minnesota will enter into a separate contract with the City of Chanhassen relating to its contribution to the purchase; and WHEREAS, the authonty of the parties to enter into this Agreement is provided by Minnesota Statutes, Section 471 59 NOW, THEREFORE, m consideration of the mutual promises and covenants of each to the other contained in this Agreement and other good and valuable consideration,receipt of which is hereby acknowledged, the parties hereto do covenant and agree as follows 180786v7 ARTICLE I THE AGREEMENT Section 1.01. Purposes. The purpose of this Agreement is to define the rights and obligations of the City and the County with respect to the Land Purchase and the sharing of the costs of the Project Section 1.02. Cooperation. The City and the County shall cooperate and use their best efforts to ensure the most expeditious implementation of the various provisions of this Agreement The parties agree in good faith to undertake resolution of disputes, if any, in an equitable and timely manner Section 1.03 Term. The term of this Agreement shall be for a penod commencing on the date hereof and terminating when the property is purchased, all documentation has been filed and accepted by the parties and all amounts owed by one party to the other have been paid in full or the Agreement is termmated as otherwise provided under this Agreement Section 1.04. Recitals. The above recitals are true and correct as of the date hereof and constitute a part of this Agreement Section 1.05. Enabling Authority. Minnesota Statutes, Section 471.59, authonzes two or more governmental units to jointly exercise any power common to the contracting parties. ARTICLE II DEFINITIONS Section 2.01. Definitions. In this Agreement the following terms shall have the following meanings unless the context requires otherwise (a) Agreement: this Agreement, as it may be amended, supplemented, or restated from time to time. (b) City: the City of Chanhassen (c) City Representative: Paul Oehme, Director of Public Works/City Engineer (d) County: Carver County. (e) County Representative: Lyndon Robjent,P E , Carver County Engineer (f) Project: purchase of property at 675 Lakota Lane, Chanhassen Minnesota (g) Project Costs: all amounts paid to the owners of 675 Lakota Lane relating to the acquisition of the property, including any relocation benefits or other payments required by applicable law, closing costs and city attorneys' fees. Page 12 180786v7 (h) City/County Costs: the direct and indirect costs of City and County employees performing services on behalf of the Project, and other incidentals (i) Uncontrollable Circumstances: the occurrence or non-occurrence of acts or events beyond the reasonable control of the party relying thereon, and not the result of willful or negligent action or inaction of the party claiming the event as an Uncontrollable Circumstance, that materially adversely affects the performance of the party claiming the event as an Uncontrollable Circumstance including but not limited to the following. (1) Acts of God, including, but not limited to floods, ice storms, blizzards, tornadoes, landslides, lighting and earthquakes (but not including reasonably anticipated weather conditions for the geographic area), riots insurrections, war or civil disorder affecting the performance of work, blockades,power or other utility failure, and fires or explosions (2) The adoption of or change in any federal, state, or local laws, rules, regulations, ordinances, permits, or licenses, or changes in the interpretation of such laws, rules,regulations, ordinances,permits,or licenses by a court or public agency having appropriate jurisdiction after the date of the execution of this Agreement. (3) Orders and/or judgment of any federal, state, or local court, administrative agency, or governmental body, provided, however, that the contesting in good faith by such party of any such order and/or judgment shall not constitute or be construed to constitute a willful or negligent action or inaction of such party. ARTICLE III ALLOCATION OF DUTIES Section 3.01. The City will obtain necessary appraisal(s), negotiate a purchase price, draft closing documents, complete closing and file all necessary paperwork with the County The fee title will be in the City of Chanhassen Carver County will review the closmg costs before the closmg date and will state in writing if the costs are acceptable ARTICLE IV PROJECT COST SHARING Section 4.01. Allocation. The Project Costs shall be divided equally between the City and County and the State of Minnesota Page 13 180786v7 Section 4.02. Payments to City. The County shall make full payment to the City of its one-third share of the Project Costs within thirty (30) days of the City acquiring the property and invoicing the County. The County's share of the Project Costs shall not exceed$208,000.00 ARTICLE V GENERAL PROVISIONS Section 5.01. Notices. All notices or communications required or permitted pursuant to this Agreement shall be either hand delivered or mailed to City and County, certified mail, return- receipt requested,at the following address. City: Paul Oehme Director of Public Works/City Engineer City of Chanhassen P 0 Box 147, 7700 Market Boulevard Chanhassen,MN 55317 County: Lyndon Robjent,PE County Engineer Carver County Public Works 11360 Hwy 212 West, Suite 1 Cologne,MN 55322 Either party may change its address or authorized representative by written notice delivered to the other party pursuant to this Section 5.01 Section 5 02. Counterparts. This Agreement may be executed in more than one counterpart, each of which shall be deemed to be an original but all of which taken together shall be deemed a single instrument Section 5.03. Non-Assignability. Neither the City nor the County shall assign any interest in this Agreement nor shall transfer any interest in the same, whether by subcontract, assignment or novation, without the prior written consent of the other party Such consent shall not be unreasonably withheld. Section 5.04. Alteration. It is understood and agreed that the entire Agreement between the Parties is contained herein and that this Agreement supersedes all oral agreements and negotiations between the Parties relating to the subject matter hereof All items referred to in this Agreement are incorporated or attached and are deemed to be part of this Agreement. Any alteration, variation, modification or waiver of the provisions of the Agreement shall be valid only after it has been reduced to writing and duly signed by all parties. Section 5.05. Waiver. The waiver of any of the rights and/or remedies arising under the terms of this Agreement on any one occasion by any party hereto shall not constitute a waiver or any rights and/or remedies in respect to any subsequent breach or default of the terms of this Page 14 180786v7 • Agreement. The rights and remedies provided or referred to under the terms of this Agreement are cumulative and not mutually exclusive Section 5.06. Severability. The provisions of this Agreement are severable. If any paragraph, section, subdivision, sentence, clause or phrase of this Agreement is for any reason held to be contrary to law, or contrary to any rule or regulation having the force and effect of law, such decision shall not affect the remaining portions of this Agreement. Section 5.07. Interpretation According to Minnesota Law. The Laws of the State of Minnesota shall apply to this Agreement Section 5.08. Headings. The headmgs to the various sections of this Agreement are inserted only for convenience of reference and are not intended, nor shall they be construed, to modify, define, limit, or expand the intent of the parties as expressed in this Agreement Section 5.9. Further Actions. The parties agree to execute such further documents and take such further actions as may reasonably be required or expedient to carry out the provisions and intentions of this Agreement, or any agreement or document relatmg hereto or entered into in connection herewith Section 5.10. Parties in Interest. This Agreement shall be binding upon and inure solely to the benefit of the parties hereto and their permitted assigns, and nothing in this Agreement, express or implied, is intended to confer upon any other person any rights or remedies of any nature under or by reason of this Agreement Section 5.11. Employees. It is further agreed that any and all full-time employees of County and all other employees of said County engaged in the performance of any work or services required or provided for herein to be performed by the County shall be considered employees of County only and not of City and that any and all claims that may or might arise under Workman's Compensation Act of the State of Minnesota on behalf of said employees while so engaged and any and all claims made by any third parties as a consequence of any act or omission on the part of County employees while so engaged on any of the work or services provided to be rendered herein shall be the sole obligation and responsibility of County. It is further agreed that any and all full-time employees of City and all other employees of said City engaged in the performance of any work or services required or provided for herein to be performed by City shall be considered employees of City only and not of County and that any and all claims that may or might arise under Workman's Compensation Act of the State of Minnesota on behalf of said employees while so engaged and any and all claims made by any third parties as a consequence of any act or omission on the part of said City employees which so engaged on any of the work or services to be rendered herein shall be the sole obligation and responsibility of City Section 5.12. Indemnification. The Parties' total liability under this Agreement shall be governed by Minn. Statutes, Section 471 59, Subd. 1 a Page I 5 180786v7 Each Party agrees that it will be responsible for the acts or omissions of its officials, agents, and employees, and the results thereof, in carrying out the terms of this Agreement,to the extent authorized by law and shall not be responsible for the acts/omissions of the other Party and the results thereof. For purposes of determimng total liability for damages,the participating governmental units are considered to be a single governmental unit,the total liability of which shall not exceed the limits for a single governmental unit as provided in Minn Statutes, Section 466.04, Subd. 1. Each Party agrees to defend, hold harmless, and indemnify the other Party,its officials,agents, and employees, from any liability, loss,or damages the other Party may suffer or incur as the result of demands, claims,judgments, or cost arising out of or caused by the indemnifying Party's negligence in the performance of its respective obligations under this Agreement This provision shall not be construed nor operate as a waiver of any applicable limitation of liability, defenses, immunities, or exceptions by statute or common law To the full extent permitted by law, actions by the parties pursuant to this Agreement are intended to be and shall be construed as a "cooperative activity" and it is the intent of the parties that they shall be deemed a "single governmental unit" for the purposes of liability, all as set forth in Minnesota Statutes, Section 471.59, Subd. la(a),provided further that for purposes of that statute, each party to this Agreement expressly declines responsibility for the acts or omissions of the other party The Parties of this Agreement are not liable for the acts or omissions of the other participants to this Agreement except to the extent to which they have agreed m writing to be responsible for acts or omissions of the other Parties. Section 5.13 Records—Availability and Access. To the extent required by Minnesota Statutes Section § 16C.05, Subd 5 (as maybe amended), the Parties agree that the other Party, the State Auditor,the Legislative Auditor or any of their duly authorized representatives, at any time during normal business hours, and as often as they may reasonably deem necessary, shall have access to and the right to examine, audit, excerpt, and transcribe any books, documents, papers, records, etc., which are pertinent to the accounting practices and procedures of the other Parties and involve transactions relating to this Agreement Such materials shall be maintained and such access and rights shall be in force and effect during the period of the Agreement and for six(6)years after its termination or cancellation Section 5.14. Data Practices Each Party, its employees, agents, owners, partners, and subcontractors agree to abide by the provisions of the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13 and implementing regulations, if applicable, and all other applicable state and federal laws, rules, regulations and orders relating to data privacy or confidentiality, and as any of the same may be amended Section 5.15. Nondiscrimination. During the performance of this Agreement, the City and the County agree to the following.No person shall, on the grounds of race, color,religion, age, sex, sexual orientation, disability, marital status, public assistance status, criminal record, creed or Page 16 180786v7 national origin be excluded from full employment right in, participation in, be denied the benefits of or be otherwise subjected to discrimination under any and all applicable Federal and State laws against discrimination Section 5.16. Default and Withdrawal. Default in this Agreement may occur when a Party fails to perform any of the provisions of this Agreement or so fails to administer the work as to endanger the performance of the Agreement. Unless the Party's default is excused by the non- defaulting Party,the non-defaulting party may,upon written notice to the defaultmg party representative listed herein, cancel this Agreement in its entirety as indicated below Any Party may withdraw from this Agreement with or without cause by providing thirty(30)days' prior wntten notice to the other Parties herein Only the governing bodies of the Participating Parties have authority to act pursuant to this provision of the Agreement Each Party to this agreement reserves the right to withdraw from and cancel this agreement within 30 days from the opening of bids for the project in the event either or both parties consider any or all bids unsatisfactory;the withdrawal form or cancellation of the agreement to be accomplished by either or both parties within 30 days of opening of bids by serving a written notice thereof upon the other,unless this right is waived by both parties m writing Section 5.17. Third Party. This Agreement does not create any rights, claims or benefits inuring to any person that is not a party hereto nor create or establish any third party beneficiary [The remainder of this page has been intentionally left blank. Signature pages follow J Page 17 180786v7 IN TESTIMONY WHEREOF, The parties hereto have caused these presents to be executed. City of Chanhassen, Minnesota Cou -y of Ca er, Minnesota _j )//9( / -/ Wit_.€ ,. Mayor coq Boar,t i Date- Date. //.i '/c Attest: Administrator/Clerk Cc ty Ad inistra or Date. Date. IV214 ( `� Approved As To Form: Approved As To Form: Attorney County Attorney Date Date Page8 180786v7 PURCHASE AGREEMENT THIS PURCHASE AGREEMENT is effective as of the day of 2015, by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation, P. 0 Box 147, 7700 Market Boulevard, Chanhassen, Minnesota 55317 ("Purchaser") and ANDREA S CARTY, a single person, residing at 675 Lakota Lane, Chanhassen, Minnesota 55318 ("Seller") RECITALS: A Seller is the owner in fee simple of the property located in the City of Chanhassen, County of Carver, State of Minnesota, legally described in Exhibit A attached hereto and made a part hereof, including existing buildings,together with all other existing improvements and fixtures located thereon, all appurtenant rights, easements,mineral rights, and all right, title and interest of Seller in and to all streets, alleys, strips, and rights-of-way over or abutting said land, for which Seller has an interest(the"Property"), and B Seller desires to convey the Property thereon to Purchaser and Purchaser is desirous of purchasing the Property AGREEMENT: In consideration of the mutual covenants and agreements herein contained and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows 1 OFFER/ACCEPTANCE Subject to compliance with the terms, covenants and conditions of this Purchase Agreement, Seller shall convey the Property to the Purchaser 2. PRICE AND TERMS. The price for the Property included under this Purchase Agreement is Six Hundred Nine Thousand and No/100 ($609,000 00) Dollars, which Purchaser shall pay in cash on the Closing Date. 3. DEED/MARKETABLE TITLE Upon performance by Purchaser, Seller shall execute and deliver a Warranty Deed, conveying good and marketable title of record, subject to A Covenants, conditions, restrictions,declarations and easements of record, if any, B Reservations of minerals or mineral rights by the State of Minnesota, if any, C Building and zoning laws, ordinances, state and federal regulations, and D 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 Purchaser I 80875v4 4. 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 Purchaser on a calendar year basis to the Date of Closing Purchaser 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, Purchaser may, at Purchaser'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 Purchaser shall pay a commensurate increase in the purchase pnce 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 Purchaser 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 180875v4 2 5. SELLER'S BOUNDARY LINE, ACCESS, RESTRICTIONS AND LIEN WARRANTIES. Seller warrants that there has been no labor or material furnished to the Property for Seller foi which payment has not been made 6 ACCESS PRIOR TO CLOSING. Upon reasonable notice to Seller, Purchaser and Purchaser'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 Purchaser's expense, surveys, measurements, soil tests and other tests (collectively "Tests"), that Purchaser shall deem necessary Purchaser agrees to promptly restore any resulting damage to the Property or to Seller's personal property, and to indemnify, hold harmless and defend Seller from any and all claims by third persons of any nature whatsoever arising from Purchaser's right of entry hereunder and the Tests conducted, including all actions, proceedings,demands, assessments, costs, expenses and attorneys' fees Purchaser 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 7. POSSESSION. Seller shall deliver possession of the Property not later than the actual date of closing, subject to that certain Lease Agreement a copy of which is attached as Exhibit B to this Agreement and made a part thereof. 8 TITLE INSURANCE Within fifteen (15) days of the date of this Agreement, Purchaser shall be responsible for obtaining title evidence and reviewing title to the Property. Purchaser shall be allowed thirty (30) business days after the receipt of the title commitment foi examination of title and making any objections, which shall be made in writing or deemed waived 9. TITLE CORRECTIONS AND REMEDIES. Seller shall have one hundred twenty (120) days from receipt of Purchaser's written title objections to make title marketable. Upon receipt of Purchaser's title objections, Seller shall, within ten (10) business days, notify Purchaser of Seller's intention 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 Seller shall be reasonable, diligent, and prompt Pending correction of title, all payments required herein and the closing shall be postponed If any objection is so made, Seller shall have ten (10) business days from receipt of Purchaser's written title objections to notify Purchaser of Seller's intention to make title marketable within one hundred twenty (120) days from Seller's receipt of such written objection If notice is given, payments hereunder required shall be postponed pending correction of title, but upon correction of title and within ten (10) days after written notice to Purchaser, the parties shall perform this 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, the Purchaser (at Purchaser's option) shall have the right to (a) terminate this Agreement, or (b) cause the exception(s) to be removed and credit Purchaser's cost to remove the exception(s) against the Purchase Price 10. NOTICES All notices required herein shall be in writing and delivered personally or mailed to the address for each party as shown above and if mailed, are effective as of the date of mailing 180875v4 3 F 11. MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota 12. WELL DISCLOSURE. [Check one of the followzng.J Seller certifies that Seller does not know of any wells on the Property X Wells on the Property are disclosed by Seller on the attached Well Disclosure form. 13 DISCLOSURE OF INDIVIDUAL ON-SITE SEWAGE TREATMENT SYSTEM. [Check one of the following..J Seller certifies that Seller does not know of any individual on-site sewage treatment systems on the Property X Individual on-site sewage treatment systems on the Property are disclosed by Seller on the attached Disclosure form 14. PROTECTED HISTORICAL SITES. [Select either one of the following Seller represents that Seller does not know if there are historical, native American, or archeological materials on or in the Property that might be protected by law. X To Seller's knowledge, 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 Purchaser's obligation to close is contingent upon Purchaser determining to Purchaser's satisfaction that the property does not have any American Indian burial grounds, other human burial grounds, ceremonial earthworks, histoncal materials, and/or other archeological sites that are protected by federal or state law 15 LEAD PAINT DISCLOSURE [Check one of the following] Seller represents that the dwelling was constructed on the real property in 1978 or later X Seller represents that the dwelling was 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") 16 METHAMPHETAMINE DISCLOSURE STATEMENT [Check one of the following] X To the best of Seller's knowledge, methamphetamine production has not occurred on the Property To the best of Seller's knowledge, methamphetamine production has occurred on the Property and Seller makes the following disclosure. 180875v4 4 A county or local health department or sheriff has not ordered that the Property or some portion of the Property is prohibited from being occupied or used until it has been assessed and remediated as provided in the Department of Health's Clandestine Drug Labs General Clean-up Guidelines If such order or orders have been issued complete the following statement. The above orders issued against the Property[strike one]have/have not been vacated If such order has not been issued, state the status of removal and remediation on the Property [Use additional sheets, if necessary] 17. SELLER'S COVENANTS, REPRESENTATIONS AND WARRANTIES. Seller, as part of the consideration therefore, represents warrants, and covenants with Purchaser and its successors and assigns that to the best of Seller's actual knowledge and without any investigation or inquiry, as follows. A Seller has or as of the Date of Closing will have marketable and insurable title to the Property of record, free and clear of all liens, encumbrances, leases, claims and charges, all material easements, rights-of-way, covenants, conditions and restrictions and any other matters affecting the title, except for the Permitted Exceptions B To Seller's actual knowledge, the conveyance of the Property pursuant hereto will not violate any applicable statute, ordinance, governmental restriction or regulation, or any private restriction or agreement C As of the Date of Closing there will be no outstanding or unpaid claims, actions or causes of action related to any transaction or obligation entered into or incurred by Seller with respect to the Property prior to the date hereof D. Except as provided herein, Seller shall indemnify and defend Purchaser and otherwise hold Purchaser harmless of, from and against any broker who may be entitled to any commission or finder's fee in connection with the transaction contemplated herein to the extent arising from Seller's actions E Seller is not a foreign person as defined in §1445(f)(3) of the Internal Revenue Code or regulations issued thereunder. F To Seller's actual knowledge, there is no action, litigation, investigation, condemnation or other proceedings of any kind pending or threatened against Seller with respect to the Property. G To Seller's actual knowledge, (i)no toxic materials, hazardous wastes or hazardous substances, as such terms are defined in the Resource Conservation and Recovery Act of 1996, as amended (42 USC §6901, et seq) or in the Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended (42 U.S.0 §9601, et seq ), including, without limitation, any asbestos or asbestos- related products of materials and any oils, petroleum-derived compounds or pesticides ("Hazardous Materials") have been generated, treated, stored, released or 180875v4 5 disposed of or otherwise placed, deposited in or located on the Property, and (ii) the Property is free of Hazardous Matenals and is not subject to any"superfund" type liens or claims by governmental iegulatory agencies or third parties arising from the release or threatened release of hazardous substances in, on, or about the Property Seller shall indemnify and hold Purchaser harmless from any and all third party claims, causes of action, damages, losses, or costs (including reasonable lawyer's fees) relating to breach of the foregoing representations and warranties by Seller or to hazardous substances or petroleum products in the subsoil or ground water of the Property which arise from or are caused by acts or occurrences upon the Property prior to Purchaser taking possession and of which Seller has actual knowledge These warranties and indemnifications shall survive the delivery of the Warranty Deed The covenants, representations, and warranties contained in this Section shall be deemed to benefit Purchaser and its successors and assigns and shall survive any termination or expiration of this Purchase Agreement or the delivery of the Warranty Deed All of Seller's covenants, representations and warranties in this Agreement shall be matenally true as of the date hereof and of the Closing Date, and shall be a condition precedent to the performance of Purchaser's obligations hereunder If Purchaser discovers that any such covenant, representation, or warranty is not true, Purchaser may elect prior to Closing, in addition to any of its other rights and remedies, to cancel this Agreement, or Purchaser may postpone the Closing Date up to ninety (90) days to allow time for correction If Purchaser elects to proceed with the Closing following such discovery, Purchaser shall be deemed to have waived its rights to assert a claim against Seller arising from the inaccuracy or untruthfulness of any such covenant, representation, or warranty Seller indemnifies Purchaser from any and all third party claims, causes of action, damages, losses, or costs relating to any breaches of the covenants, warranties and representations set forth in this Section with any particulars regarding Seller's indemnification obligations being set forth in the relevant subsections of this Section 17 18. SELLER'S AFFIDAVIT. At closing, Seller shall supplement the warranties and representations in this Purchase Agreement by executing and delivenng a Minnesota Uniform Conveyancing Blank [Form No 116-M, 117-M, or 118-M] Affidavit of Seller 19. CLOSING The closing (the "Closing") of the purchase and sale contemplated by this Agreement shall occur at a location designated by Purchaser, and shall occur on or before May 18, 2015 ("Closing Date") At closing, Seller and Purchaser shall disclose their Social Secunty Numbers or Federal Tax Identification Numbers foi the purposes of completing state and federal tax forms 20. CLOSING DOCUMENTS. A At the Closing, Seller shall execute and/or deliver to Purchaser the following (collectively the "Closing Documents"). (1) Warranty Deed A Warranty Deed in recordable form and reasonably satisfactory to Purchaser 180875v4 6 (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 bankruptcies 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, Purchaser 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 21 CLOSING COSTS All costs relating to the closing of this transaction shall be paid by Purchaser 22. ADDITIONAL TERMS. A Purchaser's Contingencies Purchaser's obligations under this Agreement are contingent upon Purchaser's satisfaction with each of the following ("Purchaser's Contingencies"). 180875v4 7 (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 Purchasers 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) Purchaser determining on or before the Closing Date, that it is satisfied, in its sole discretion, with the results of matters disclosed by any environmental/engmeenng investigation or testing of the Property performed by Purchaser or Purchaser's agent By executing this Agreement, Seller hereby authorizes Purchaser to enter upon the Property at reasonable times to conduct the investigations and/or tests described herein per the terms of Section 6 of this Agreement Purchaser 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) Purchaser determining that it is satisfied with the title to the Property. (4) By executing this Agreement, Seller hereby authorizes Purchaser to enter upon the Property at reasonable times to conduct the investigations and/or tests described herein. If the Purchaser's Contingencies have not been satisfied on or before the Closing Date, then Purchaser may, at Purchaser's option, extend the Closing Date in order to satisfy the Purchaser's Contingencies or terminate this Agreement by giving notice to Seller on or before the Closing Date The contingencies set forth in this section are for the sole and exclusive benefit of Purchaser, and Purchaser shall have the right to waive the contingencies by giving notice to Seller B Seller's Contingencies Seller's obligations under this Agreement are contingent upon Purchaser's satisfaction with each of the following("Seller's Contingencies"). (1) The Pui chaser executing the Lease attached hereto as Exhibit B at Closing If the Seller's Contingencies have not been satisfied on or before the Closing Date, then Seller may, at Seller's option, extend the Closing Date in order to satisfy the Seller's Contingencies or terminate this Agreement by giving notice to Purchaser on or before the Closing Date The contingencies set forth in this section are for the sole and exclusive benefit of Seller, and Seller shall have the right to waive the contingencies by giving notice to Purchaser 23. TIME IS OF THE ESSENCE. Time is of the essence for all provisions of this Purchase Agreement 24 MULTIPLE ORIGINALS. Seller and Purchaser have signed [numbed) originals of this Purchase Agreement 180875v4 8 I agree to buy the Property for the price and terms and conditions set forth above PURCHASER• CITY OF CHANHASSEN By Dated ,2015 Denny Laufenburget, Mayor And. Todd Gerhardt, City Manager 180875v4 9 [agree to sell the Property for the price and terms and conditions set forth above SELLER: By •' Dated35, 2015 Andrea S Carty 1 f , 1 180575v5 EXHIBIT A That part of the Northwest Quarter(NW 1/4)of Section Thirty-six(36),Township One Hundred Sixteen(116)North,Range Twenty-three(23)West, Carver County,Minnesota, described as follows Commencing at a point where the West line of said Northwest Quarter(NW 1/4)intersects the Northerly right of way line of the Minneapolis and St Louis Railway, and running thence Easterly along said Northerly right of way line a distance of two hundred ninety-two (292)feet to its intersection with the Easterly right of way line of State Trunk Highway No 101,being the actual point of beginning of the premises herein described, thence running Northeasterly along said Easterly right of way line of said Trunk Highway No 101 whose course is as follows.Deflecting to the left from the Northerly right of way line of the aforesaid railroad 70 degrees 44 minutes and running a distance of 457 2 feet to a point, thence deflecting to the right 23 degrees 22 minutes and running a distance of 123 0 feet to a point,thence deflecting to the right 25 degrees 51 minutes and running a distance of 110 0 feet to a point,thence deflecting to the right 20 degrees 01 minutes and running a distance of 218 6 feet to a point,thence deflecting to the left 46 degrees 00 minutes and running a distance of 176 6 feet to a point,thence deflecting to the left 05 degrees 29 minutes and running a distance of 118 7 feet,more or less,to a point where the southerly line of Bluff Lane(a public road) intersects the Easterly Line of said State Trunk Highway No 101;thence North 83 degrees 21 minutes East along the said Southerly line of said Bluff Lane a distance of 55 37 feet to a point; thence Southerly 841 3 feet, more or less,in a straight line to a point on the Northerly right of way line of said Minneapolis and St Louis Railway distant 623.5 feet from the actual point of beginning when measured along said railroad right of way line,thence Southwesterly along said railroad right of way line to the point of beginning 180875v4 1 EXHIBIT B LEASE AGREEMENT THIS LEASE AGREEMENT(the "Lease")made and entered into this day of ,2015,by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation ("City") and ANDREA S. CARTY,a single person,residing at 675 Lakota Lane, Chanhassen, Minnesota 55317 ("Lessee") WHEREAS,the City and Lessee entered into a Purchase Agreement dated 2015 ("Purchase Agreement")for the sale of the Property legally described on the attached Exhibit "A,"by Lessee to City("City Property"), and WHEREAS, the City Property consists of approximately 8 acres of property and includes a single family residence,horse barn and other improvements; and WHEREAS,under the terms of the Purchase Agreement,the City agreed to lease to Lessee the City property for one year (and continuing thereafter with a 90-day notice of termination provision) from the date of closing on the Purchase Agreement pursuant to the terms of this Lease, NOW, THEREFORE, in consideration of the mutual covenants and agreements herein, it is hereby mutually agreed by the parties as follows. 1. LEASED PREMISES. The City hereby leases to Lessee the City Property 2. OCCUPANCY AND USE OF PROPERTY Lessee shall have the right to continue to use the Property as hei primary residence and horse stable during the term of this Lease. The Premises and utilities shall be used solely for residential purposes 3 TERM This Lease shall commence on May 18, 2015 for an initial term ending May 31, 2016 Thereafter,the lease shall continue indefinitely until either party terminates the lease by giving the other party a ninety(90) day written notice of termination 4 PAYMENT OF RENT. Lessee shall pay One Thousand Two Hundred and No/100 ($1,200 00)Dollars per month rent during the term of this Lease 5. MAINTENANCE OF PREMISES. Lessee shall be responsible for all normal maintenance and repairs, of any kind, to the Premises,including structures and personal property located on the Premises, and all costs associated with the foregoing 6. ACCEPTANCE OF PROPERTY Lessee resides on the Premises and acknowledges that she is familiar with the Premises and accepts the Premises "as is"during the teriu of this Agreement 180875v4 12 7. UTILITIES. Lessee shall be responsible for arranging for and paying for all utility services required on the Premises 8 LESSEE PROMISES: A Lessee shall use the Premises only as a private residence B Lessee shall abide by and conform to all statutes, ordinances,rules and regulations of duly constituted public authorities relating to the use and occupancy of the Premises C Lessee shall not use the Premises in any way that would cause a cancellation, restriction or increase in premium of the City's insurance D Lessee shall not use or store in or near the Premises any flammable or explosive substances in an unsafe manner E Lessee shall at all times keep and maintain the Premises in a neat, clean and sanitary condition, free from waste or debris F Lessee shall maintain the yard to the Premises and the driveway in good condition including mowing and snowplowing. G Lessee covenants and agrees that Lessee, her agents, contractors, licensees and invitees shall not handle, use, manufacture, store or dispose of any flamnmables, explosives, radioactive materials, hazardous wastes or materials (as may be defined by Federal oi State Law), toxic wastes or materials,petroleum products, or other similar substances or derivatives thereof(collectively"Hazardous Materials"), on, under, or about the Premises, without City's prior written consent (which consent may be withheld or denied for any or no reason) 9. LIABILITY INSURANCE. Lessee, at her own expense, shall purchase and continue in force, general liability insurance against any and all claims for injuries to persons or damage to property occurring in, upon or about the Premises during the occupancy period, such insurance to be in an amount not less than$1 million(combined single limit personal injury and property damage) The insurance shall be written by a company authorized to engage in the business of general liability insurance in the State of Minnesota, and there shall be delivered to the City customary certificates evidencing such paid-up insurance, which certificates are to be issued by the insurance company 10. PERSONAL PROPERTY. All personal property belonging to Lessee shall be on the Premises at the risk of Lessee and the City shall not be liable for any damage thereto and Lessee waives all claims against the City for damages to persons or property sustained by Lessee or her occupants or invitees, except those claims caused by the grossly negligent or intentionally malicious act or omission of the City or its agents 180875v4 13 11. THE CITY'S RIGHT TO ENTER. The City may enter the Premises for a reasonable business purpose The City must first make a good faith effort to give reasonable notice to the Lessee of the intent to enter. The City may enter the Premises in an emergency The City must disclose the date, time and purpose of the emergency entry in writing The writing must be left in a conspicuous place in the Premises 12. NOTICE OF DANGEROUS CONDITIONS Lessee shall promptly notify the City of any conditions that might cause damage to the Premises The notice may be oral or in writing 13 ASSIGNMENT AND SUBLETTING. Lessee may not assign or sublet the Premises 14. TERMINATION. Upon termination of this Lease, Lessee must remove all personal property from the Premises and return all keys to all buildings located on the Premises to the City Any possessions or property remaining on the Premises upon termination of the Lease may be considered by the City to have been abandoned City may dispose of the possessions and personal property in the manner that City deems appropriate. City shall not be liable to Lessee, her representatives, heirs or assigns for disposing of the possessions or property. 15. PREMISES DESTROYED,UNINHABITABLE OR UNFIT FOR OCCUPANCY If the Premises is destroyed or becomes totally uninhabitable or completely unfit for occupancy for whatever reason, either the City or Lessee may end this Lease To end the Lease,the City or Lessee shall give prompt wntten notice to the other Any rent paid for the period after such date shall be refunded. 16. IMPAIRMENT OF USE. In the event of any damage to the Premises during the term of this Lease, by fire, the elements or other casualty, City shall restore the Premises if damaged(to the extent of available insurance proceeds)with reasonable dispatch unless City shall, within sixty(60) days of the date of the occurrence of such fire or other casualty, elect not to rebuild. In the event City elects not to rebuild the Premises as above set forth, then this Lease shall cease and terminate as of the date of such election, any rent prepaid for period after such date shall be refunded to Lessee, and Lessee shall have no claim against City for the value of any unexpired term of this Lease During any such restoration, to the extent the Premises shall be untenantable, the rent shall abate proportionately 17 BREACH OF LEASE [RE-ENTRY CLAUSE]. If Lessee materially breaches this Lease, the City may A Demand in wnting that Lessee immediately give up possession of the Premises. If Lessee does not give up possession,the City may bring an eviction (unlawful detainer) action. B Demand in writing that Lessee gives up possession of the Premises to the City at a certain date in the future If Lessee does not give up possession on that date,the City may bring an eviction(unlawful detainer) action. The City may accept rent for the penod up to the date possession is to be transferred without giving up the City's right to evict 180875v4 14 C Bring an eviction(unlawful detainer) action immediately. 18. SUBROGATION. If requested,the City and Lessee give up all rights of subrogation against the other for loss or damage covered by insurance. 19 NOTICES. Any notice or document required of permitted to be delivered under the terms of this Lease shall be deemed to be delivered, whether actually received or not, when deposited in the United States mail,postage prepaid, certified or registered mail, addressed to the parties hereto at the addresses set forth below, or at such other address as they have previously designated in written notice delivered in accordance with this Section. If to the City. City of Chanhassen If to Lessee Andrea S Carty Attn: Paul Oehme 675 Lakota Lane P. 0 Box 147 Chanhassen, MN 55318 7700 Market Boulevard Chanhassen, MN 55317 20. NOTICE OF PROHIBITION AGAINST UNLAWFUL ACTIVITIES A City and Lessee shall not unlawfully allow controlled substances in the Premises or in the common area or curtilage of the Premises The Premises will not be used by Lessee or persons under Lessee's control to manufacture, sell, give away, barter, deliver, exchange, distribute or possess with the intent to sell, give, away, barter, deliver, exchange, or distribute a controlled substance in violation of any local, state, or federal law B City and Lessee shall not allow prostitution of prostitution-related activity as defined in Minn Stat § 617 80, subdivision 4, to occur on the Premises or in the common area and curtilage of the Premises C The City and Lessee shall not allow the unlawful use or possession of a firearm in violation of Minn Stat § 609 66, subdivision la, § 609 67, or §624 713 on the property, its lands, or common area The following notice is required by Minn. Stat § 504B 305 A seizure under §609 5317, subd. 1, for which there is not a defense under § 609.5317, subd 3, constitutes unlawful detention by Lessee. 21. AMENDMENTS. The City and Lessee may amend the terms of this Lease in writing. 22. UTILITY SERVICE AND APPLIANCES INCLUDED. Lessee shall pay all charges for gas, electricity and other utilities, including sewer and water charges, telephone, cable and trash removal, used in or furnished to the Premises during the term of this Lease The City shall not be liable in damages or otherwise for failure to furnish such services where failure or interruption is due to causes beyond the City's reasonable control. 180575v4 ;5 23 ALTERATIONS AND IMPROVEMENTS. Lessee shall not make any alterations to the buildings or improvements on the Premises or construct any building or make any other improvements on the Premises without the prior written consent of the City 24. GOVERNING LAW. This Agreement shall be governed,construed and interpreted by, through and under the Laws of the State of Minnesota 25 SEVERABILITY. If any provision of this Agreement or the application thereof shall, for any reason and to any extent, be invalid or unenforceable, neither the remainder of this Agreement nor the application of the provision to other per sons, entities or circumstances shall be affected thereby, but instead shall be enforced to the maximum extent permitted by law 26. BINDING EFFECT. The covenants, obligations and conditions herein contained shall be binding on and inure to the benefit of the heirs, legal representatives, and assigns of the parties _ hereto 27. NON-WAIVER. No indulgence, waiver, election or non-election by City under this Agreement shall affect Lessee's duties and liabilities hereunder CITY OF CHANHASSEN By Denny Laufenbutger, Mayor By Todd Gerhardt, City Manager LESSEE. Andrea S Carty THIS INSTRUMENT WAS DRAFTED BY CAMPBELL KNUTSON, P A 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, MN 55121 Telephone. 651-452-5000 TMS/cjh 180875v4 1 6 EXHIBIT A Legal Descnption of City Property That part of the Northwest Quarter(NW 1/4)of Section Thirty-six(36),Township One Hundred Sixteen (116)North,Range Twenty-three(23)West, Carver County,Minnesota,descnbed as follows Commencing at a point where the West line of said Northwest Quarter(NW 1/4)intersects the Northerly nght of way line of the Minneapolis and St Louis Railway, and running thence Easterly along said Northerly nght of way line a distance of two hundred ninety-two (292)feet to its intersection with the Easterly nght of way line of State Trunk Highway No 101,being the actual point of beginning of the premises herein descnbed, thence running Northeasterly along said Easterly right of way line of said Trunk Highway No 101 whose course is as follows Deflecting to the left from the Northerly right of way line of the aforesaid railroad 70 degrees 44 minutes and running a distance of 457 2 feet to a point,thence deflecting to the nght 23 degrees 22 minutes and running a distance of 123 0 feet to a point,thence deflecting to the nght 25 degrees 51 minutes and running a distance of 110 0 feet to a point,thence deflecting to the nght 20 degrees 01 minutes and running a distance of 218 6 feet to a point,thence deflecting to the left 46 degrees 00 minutes and running a distance of 176 6 feet to a point,thence deflecting to the left 05 degrees 29 minutes and running a distance of 118 7 feet,more or less,to a point where the southerly line of Bluff Lane(a public road) intersects the Easterly Line of said State Trunk Highway No 101, thence North 83 degrees 21 minutes East along the said Southerly line of said Bluff Lane a distance of 55 37 feet to a point; thence Southerly 841 3 feet,more or less, in a straight line to a point on the Northerly nght of way line of said Minneapolis and St Louis Railway distant 623.5 feet from the actual point of beginning when measured along said railroad nght of way line,thence Southwesterly along said railroad nght of way line to the point of beginning 180875v4 1 7 I • _ . Report Type Appraisal Report _ Effective Date February 2, 2015 Client Subject Property City of Chanhassen Residential Property CIO Campbell Knutson, P.A. 675 Lakota Lane Attn: Thomas Scott, City Attorney 1380 Corporate Center Curve, #317 Chanhassen, MN 55318 Eagan, MN 55121 ttM �A' s � r : ; v ' _ S <r ri 1- Prepared By. Esther M. Trembley, Appraiser , William R Waytas, Appraiser Nagel) Appraisal & Consulting, Inc File#G1501004 12805 Highway 55, Suite 300 Plymouth, Minnesota 55441 Tel 952 544 8966 I Fax 952 544 8969 NAGELL APPRAISAL & CONSULTING 12805 Highway 55,#300 Minneapolis 952-544-8966 Plymouth,MN 55441 St Paul 651-209-6159 Established in 1968 Central Fax. 952-544-8969 City of Chanhassen CIO Campbell Knutson, P A February 5, 2015 Attn Thomas Scott, City Attorney 1380 Corporate Center Curve, #317 Eagan, MN 55121 To Thomas Scott In accordance with your request, an Appraisal Report has been made on the following described property. Subject Property. Residential Property 675 Lakota Lane Chanhassen, MN 55318 The property is legally described herein The appraisal assumes that the property meets all current environmental standards The appraisal analysis and conclusions are subject to certain limiting conditions and assumptions described herein The final value opinion, as of February 2, 2015 is FINAL VALUE OPINION (as-is). $609,000 Appraisal of Real Estate only-no FF&E or business value included Our company has 12 employees, has been in business since 1968 and has sufficient knowledge, education, experience, resources and/or contacts to competently complete this assignment The accompanying report contains data secured from my personal investigation and from sources considered to be reliable, however, correctness is not guaranteed To the best of my knowledge and belief, the statements contained in this report are true and correct Neither my employment to make this appraisal, nor the compensation, is contingent upon the value reported This report has been prepared in conformity with the code of professional ethics and standards of professional appraisal practice of the Appraisal Institute and appraisal standards set forth by Uniform Standards of Professional Appraisal Practice Sincerely, Esther M. Trembley William R Waytas, SRA, CRP Trainee Appraiser MN 40377641 Certified General MN 4000813 www nagellmn corn Report Type Appraisal SUMMARY OF IMPORTANT FACTS & CONCLUSIONS • \v G6 . t ,s`�P,`%, a- •- J • r. l��il�ll \I'II i t 1 11-7 Location: 675 Lakota Lane City/County/State: Chanhassen / Carver/ Minnesota Report Type: Appraisal Report Current Use• Single Family Home Special Assumptions. None, see rear of report for standard assumptions Site Size 362,419 SF (8 32 acres) Above Grade SF. 2,030 SF Current Zoning. A2 —Agricultural Estate District Highest & Best Use: Current Use Property Rights Appraised: Fee Simple Interest Property Components Appraised• Real Estate Only Cost Approach. Not Applied Income Approach Not Applied Sales Approach $609,000 Final Opinion of Market Value. $609,000 Nagell Appraisal&Consulting I 952 544 8966 Page 1 Projects By Funding Source 2015 thru 2019 Department Street Improvements *,��T Contact Paul Oehme City of Chanhassen, lVli�l Type Improvement Project# ST-032 Useful Life Project Name TH101 Imp-Pioneer Tr to Flying Cloud Dr(CSAR 61) Category Streets/Highways Account#1 605-0000 Account#3 Priority n/a Account#2 Account#4 Total Project Cost $28,650,000 Description the improvements nts from m TH 5 mto the City of Shakopeeruct TH 101 from Pioneer Trail SAH 14)to The improvements are prCloud oposed to prrive(CSAH ove safety) This smobilitysand to plan for future needsohvements from growth in the region The project is consistent with the 2007 TH 101 corridor scoping study. State,Federal and Carver County funds are is proposed to helpr pay for most of landscaping,trails and nts The stormity ontnbution to the sewer improvements project he tentative schedule to help s to complete predesign and ay for some environmental work, watermam improvements,corridor environmental review in 2014. Right of way acquisition would take place in 2016 and construction would commence in 2018 Justification I To improve safety and mobility on TH 101. The project also plans for growth in the region I I Prior Expenditures 2015 2016 2017 2018 2019 Total 600,0001111 300,000 Planning/Design 300,000 7,300,000 Land Acquisition 7,700,000 Total 20,050,000 20,050,000 Construction 28,050,000 Total 300,000 7,700,000 20,050,000 _ 2015 2016 2017 2018 2019 Total Prior Funding Sources011 600,000600,000 600,000 MSA 17,900,000625,750,000 Total Other Agency Contribution 150,000 7,700,000750,000 750,000 Sewer Utility Fund � 150,000 Street Pavement Management 150,000 800,000 800,000 111 Water Utility Fund 28,050,000 Total 300,000 7,700,000 20,050,000 Fii Budget Impact/Other The City would be responsible for the future maintenance of the trunk watermam and trails 1 1 0 II ii' p nn