CC Staff Report 10-13-2014CITY OF
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.2271180
Fax: 952.227.1190
Engineering
Phone: 952.2271160
Fax: 952.2271170
Finance
Phone: 952.2271140
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
MEMORANDUM
TO: Mayor & City Council
FROM: Todd Gerhardt, City Manager
DATE: October 13, 2014
SUBJ: Approve Amendment to Vacant Land Purchase Agreement with
Halifax Development, LLC for Redevelopment of Chanhassen Retail
Second Addition
PROPOSED MOTION:
"The City Council approves the Amendment to Vacant Land Purchase
Agreement between the City of Chanhassen and Halifax Development, LLC in
the amount of approximately $210,976.00 or $8.00 per square foot for purchase
of excess right -of -way associated with the Chanhassen Retail Second Addition.
Approval requires a simple majority vote of the city council.
Attached please find the Amendment to Vacant Land Purchase Agreement between
the City of Chanhassen and Halifax Development, LLC. Hans Kuhlman is
representing Halifax Development which is out of Denver, Colorado.
On May 12, 2014, the City Council Approved the Purchase Agreement for Halifax
Development, LLC. Since the original agreement, the amount of land to be
purchased has been surveyed and preliminary platted. The amount of land to be
purchased has been reduced by 3,628 square feet and a revised survey /preliminary
plat has been added as an exhibit. The purchase agreement has been amended to
reflect the changes.
PROPOSED REDEVELOPMENT PLANS
Public Works
Currently, the outlet for Chanhassen Retail Second Addition is 1.46 acres. The
7901 Park Place
purchase is for 26,372 square feet of this property. This property will be platted with
Phone: 952.2271300
a portion of the Target parking lot. The intended use is a 4,412 square -foot multi -
Fax: 952.2271310
tenant building including one restaurant and another user.
Senior Center
Phone: 952 227.1125
The property is zoned Central Business District. The site conforms to all of the city's
Fax: 952.227.1110
zoning regulations. Halifax Development, LLC is required to do a minor traffic study
and proceed through the city's subdivision and site plan review process.
Website
www.ci.chanhassen.mn.us
The subject property is currently in the name of the Chanhassen HRA. Prior to
closing, the property will be conveyed to the city from the HRA via quit claim deed.
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
Todd Gerhardt
Amendment to Vacant Land Purchase Agreement
October 13, 2014
Page 2
PURCHASE AGREEMENT TERMS
Purchase Price: $210,976.00 ($8.00 per square foot)
Closing: No later than May 6, 2015
Contingency: Sale is contingent upon the project receiving site plan approval from the city
Staff supports the proposed redevelopment and the attached Amendment to Vacant Lane
Purchase Agreement. Selling a portion of the city's excess right -of -way makes the project
feasible for the city and developer.
RECOMMENDATION
Staff recommends approval of the attached Amended Vacant Land Purchase Agreement with
Halifax Development, LLC for a purchase price of $210,976.00 or $8.00 per square foot.
ATTACHMENTS
1. Amendment to Vacant Land Purchase Agreement dated October 13, 2014.
2. Proposed Preliminary Plat.
gAadmin \tg\chanhassen retaihpmhase agreement 2.docx
AMENDMENT TO VACANT LAND
PURCHASE AGREEMENT
THIS AMENDMENT TO PURCHASE AGREEMENT is dated as of October 13, 2014,
between CITY OF CHANHASSEN, a Minnesota municipal corporation ( "Seller "), and
HALIFAX DEVELOPMENT, LLC., a Minnesota limited liability company, ( "Buyer ").
IN CONSIDERATION of the mutual covenants and agreements herein, the Vacant Land
Purchase Agreement between Buyer and Seller dated June 4, 2014 ( "Agreement "), is hereby
amended as follows:
1. Amendment to Paragraph 3. Paragraph 3 of the Agreement is hereby amended to
read as follows:
3. PRICE AND TERMS. The price for the Property included in this sale is Two
Hundred Forty Thousand and No /100 Dollars ($210,976.00) ( "Purchase Price "), which
Buyer shall pay as follows:
(i) Five Thousand and no /100 ($5;000.00) Dollars as Earnest Money in hand
paid to Seller, receipt whereof is hereby acknowledged, to be applied to the
Purchase Price at Closing; and
(ii) The balance of Two Hundred Thirty Five Thousand and No /100 Dollars
($205,976.00) in immediately available funds on the Date of Closing.
The Purchase Price is based on Property consisting of 26,372 net square feet at a price of
$8.00 /per net square foot pursuant to the survey obtained by Buyer.
2. Amendment to Para" h 9. Paragraph 9 of the Agreement is hereby amended to read
as follows:
9. TITLE INSURANCE BY SELLER. Seller has provided a title commitment for
an Owner's Policy to Title Insurance ( "Commitment ") in the full amount of the Purchase
Price issued by Land Title, Inc. certified to date and including proper searches covering
bankruptcies, state and federal judgments and liens, committing to issue its policy of title
insurance that insures that at closing Buyer shall have good, marketable title of record to
the Property, free and clear of all liens, encumbrances, leases, claims and charges (except
permitted encumbrances).
Buyer has reviewed the Commitment and the time for title objections by Buyer has
expired and all objections are deemed waived.
178594v1
3. Amendment to Paragraph 11. Paragraph 1 I of the Agreement is hereby amended to
read as follows:
11. NOTICES. Any notices required or permitted to be given hereunder shall be in
writing and shall be effective (i) when delivered personally, (ii) when received by
overnight courier service or facsimile communications (provided that a copy of such notice
is deposited in the United States mail within one (1) business day of the facsimile
transmission) or (iii) three (3) days after being deposited in the United States Mail (sent
certified or registered, return receipt requested), in each case addressed as follows (or to
such other address as the parties hereto may designate in the manner set forth herein):
If to Buyer: Halifax Development, LLC
4201 East Yale Ave
Suite 200
Denver, CO 80222
If to Seller: City of Chanhassen
7700 Market Boulevard
Chanhassen, Minnesota 55317
Attn: City Administrator
with a copy to: Campbell Knutson, P.A.
1380 corporate Center Curve, suite 317
Eagan, Minnesota 55121
Facsimile: 651-452-5550
Attn: Andrea McDowell Poehler
4. Amendment to Paragraph 16. Paragraph 16 of the Purchase Agreement is amended
to read as follows:
16. CLOSING. The Closing Date of this transaction shall take place no later
than May 6, 2015, (the "Closing" or "Closing Date "). The Closing Date may be
accelerated by mutual agreement of the parties if all contingencies contained herein are
satisfied prior to conclusion of the Contingency Period. At closing, Seller and Buyer shall
deliver to one another the instruments specified herein. If Buyer elects, the Closing may
occur at and through the office of the title company that will close Buyer's acquisition of
property from Target Corporation, provided that the Seller shall not be responsible for any
additional costs or expenses other than those identified in this Agreement. If Buyer fails to
make such an election, the closing shall be at a location designated by Seller. Unless
otherwise agreed by the parties in writing, in the event that any of the contingencies
provided for in this Agreement are not satisfied prior to the Date of Closing, this
Agreement shall be null and void and of no further force and effect. At closing, Seller and
178594v1 2
Buyer shall disclose their Social Security Numbers or Federal Tax Identification Numbers
for the purposes of completing state and federal tax forms.
5. Amendment to Exhibit A. Exhibit A of the Purchase Agreement is amended as
provided in Exhibit A attached hereto.
6. Counterparts. This Amendment may be executed in any number of counterparts or
by facsimile, each of which will be deemed to be an original, but all of which, when taken
together, constitute the same instrument.
7. Effect of Purchase Agreement. Except as provided herein, all terms and provisions
of the Purchase Agreement shall remain in full force and effect.
Seller and Buyer have executed this Amendment as of the date first written above.
SELLER:
CITY OF CHANHASSEN
a
Thomas A. Furlong, Mayor
Todd Gerhardt, City Manager
BUYER:
HALIFAX DEVELOPMENT, LLC
Lo
1785941
EXHIBIT A
Legal Description of Property
That part of Outlet A, CHANHASSEN RETAIL SECOND ADDITION, Carver County,
Minnesota, according to the recorded plat thereof, that lies East of the West line of the East 198.31
feet of said Outlet A and South of the South line of Outlet B, of said CHANHASSEN RETAIL
SECOND ADDITION.
Property to be replatted prior to closing as part of a new lot and block together with additional
property.
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