8 Lakeview Hills Acquisition
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CITY OF
CHANHASSEN
MEMORANDUM
TO:
Mayor and City Council
;90 City Center Drive, PO Box 147 FROM:
Chanhassen, Minnesota 55317
Phone 612.937.1900 DATE:
General Fax 612.937.5739
Engineering Fax 612.937.9152 SUBJ:
Public Safety Fax 612.934.2524
W1eb ll'lUlU.ci.chillzhassen.lIln.1tS
Don Ashworth, City Manager
October 21, 1998
Lakeview Hills Acquisition
The acquisition of the northerly portion of the Lakeview Hills property for new
TH 212 occurred through funding provided by the state/Metropolitan Council
(RALF funds). One of the conditions of the final purchase was that Mr.
Liefschultz would cap an existing well on the property including removal of well
equipment. Councilman Senn gave me the attached quotation this week asking
that I sign it to ensure that the condition was fulfilled. Apparently, Mr.
Liefschultz has made a decision that he does not wish to cap it himself and would
rather have the city use the money in escrow to complete the process. I am very
reluctant to comply with this request as:
. There is a guaranteed shortfall between the $12,000 net bid and the $11,480 in
escrow; and
. In talking with Mr. McCarthy, there is no guarantee that the 21.5 cubic yards
anticipated to be necessary will in fact be sufficient. The price could double;
and
. Only one quotation was submitted whereas there are two other local firms,
Stodola and Bergerson Caswell, who carry out this type of work; and
. Although Councilman Senn states that Mr. Liefschultz will pay any
differentials, I become the heavy in case he doesn't or in case court costs
escalate our known deficit.
I have felt very uncomfortable throughout this entire process in that Councilman
Senn was successful in negotiating a very favorable $1.8 million purchase for the
property and was successful in negotiating with the attorney's office to reduce the
$35,000 recommended escrow to the current $11,480.
I am sure that Councilman Senn will relay that obtaining permission to trespass
across the southern portion of the Lakeview Hills properties can be obtained, that
7Je City ofCbalJhasse1l. A growing comn/unity with c!WIl lakes, 1Iudi()' .,e/iools, a chalilling dOl/'J/towll, tfJl'il'ing bwillesses, and beautiful PilI'ki. A great p/.ICi' to lic(, [('ork. {[i[d play
Mayor and City Council
October 21, 1998
Page 2
Mr. Liefschultz will pay differentials, and that an additional bides) can be
obtained. However, again, I am reluctant to sign the attached document without
being fully assured that the city council has approved such. Although I will not be
here Monday evening, most of the negotiations and the details of the escrow were
accomplished through the attorney's office. Roger will be prepared to discuss
legal ramifications if that process is chosen to ensure compliance.
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07/15/98 13:11 FAX
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MAIN OFFICES. SHOPS. YARDS & WAREHOUSES. 2700 EAST BOTH STREET. BLOOMINGTON. MN 55425-1323
. . .
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WELL DRILLING. SEALING & DEVELOPMENT · 21 HOUR EMERGENCY SERVICE
LINE SHAFT & SUBMERSIBLE PUMPS FOR ANY APPLICATION
PHONE: (612) 854-5333 · FAX: (612) 851-9378 · MOBILE (612) 865-0576 " 850-5939
Company Representati\le; Tim McCarthy
Quotation #: 98144
Date: 5/19/98
Attn:
To:
Steve Liefschultz
Remada Company
7630 W 78th St
Bloomington. MN 55439
Permanently seal the two deep wells @ lakeview Hills Apartments.
"QUOTRTION"
Re:
McCarthy Well Company is pleased to submit this Quotation in response to your inquiry.
After the owner has demolished the pump house. McCarthy Well Company wi II furnish the labor,
equipment and material to remove both well pumps, install tremie lines, seal the wells with a total of 21.5
cubic yards of sealing material and furnish a Minnesota well sealing record for $12,761.
Arry sealing material over 21.5 cubic yards required to seal the wells to the surface will be furnished and
placed in the wells for $250/yard delivered to the site.
A deduction of $800 will be credited to the final bill if the tank, starters and pumps become the property
of McCarthy Well Company.
This q.me is subject to directives issued by the Minnesota Department of Health. Payment terms: Net ten
days from the invoice d3te. Our fi r m has performed work for this property many times in the past. We
have the knOWledge and the experience to complete the above project in a first class and timely manner.
J f this proposal is acceptable, please sign and return the blue copy of this form to McCarthy Well
Company. If you have any questions please call me at 854-5333.
Thank You For The Opportunity To Present This Proposal!
THIS QUOTATION, INCLUDING THE TERMS AND CONDITIONS PRINTED ON THE FACE &
SIDE HEREOF. CONSTITUTES A FIRM OFFER OPEN FOR YOUR ACCEPTANCE FOR 30 DAYS.
I Certify That I Am legally Authorized To Purchase Materials And/Or labor To Be Furnished.
By Title Date
McCar~~ com~
By ~~~wn/PI Title President
REVERSE
Page...L of .J...
Your 24 Hour Full Service Well & Pump Company
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Closing Date:
Buyer:
Seller:
Property Address:
Closing Agent:
CP File No.:
Closing Location:
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--:>'B" . 'ER'S CLOSING STATEMENT
May 2, 1997
City of Chanhassen
Lakeview Hills, LLC
Carver County, Minnesota
Commercial Partners Title, LLC
330 2nd Ave. S., Suite 820, Minneapolis, MN 55401
11255
Gray Plant Law Firm
CHARGES
CREDITS
Purchase Price
Additional Payment for eminent domain damages
Holdback for Well Capping
1,595,000.00
290,000.00
11,480.00
PRORA TIONS & ADJUSTMENTS:
Taxes from 5/2/97 to 12/31/97 ($26.56/day x 244 days)
TITLE CHARGES:
Closing Fee(l/2)
Title Premium
OTHER CHARGES:
Recording Fees
TOTALS
Cash from Buyer
6,480.64
to: Commercial Partners Title, LLC
to: Commercial Partners Title, LLC
250.00
1,993.75
40.00
1,893,764.39
11,480.00
1,882,284.39
The above closing statement is hereby approved, and the closing agent is hereby authorized and directed to disburse the money as
indicated herein and deliver instruments, documents and other property, if any, to the designated parties and otherwise close this
transaction in accordance with the closing instructions.
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