2000-02-22BMOUND HOUSING AND REDEVELOPMENT AUTHORITY
DATE: FEBRUARY 22, 2000, 7:00 P.M.
LOCATION: COUNCIL CHAMBERS, MOUND CITY HALL
ROLL CALL:
TAX INCREMENT FINANCING AGENDA:
1. CONSIDERATION OF PURCHASE AGREEMENT FROM
BALBOA CENTER LIMITED PARTNERSHIP FOR
VACANT LAND ~1EXT TO SUPER AMERICA. ......... .
2. CONSIDERATION OF REPLY LETTER FROM JIM
PROSSER TO THE NETKAS . ..................... .
3. QUOTES ON I=H.~SE 1 ENVIRONMENTAL SITE
ASSESSMENT ON THE COAST TO COAST
REDEVELOPMENT SITE.
4. ADJOURN.
Drift
2/17100
PURCHASE AGREEMENT
Mound, Minnesota
,2000
IN CONSIDERATION OF THE MUTUAL COVENANTS, DUTIES AND
OBLIGATIONS CONTAINED HEREIN, the HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF MOUND, a Minnesota public body corporate and
politic, having its principal place of business at 5341 Maywood Road, Mound Minnesota 55364
("BUYER"), hereby agrees to the purchase of property situated in the County of Hennepin, State of
Minnesota, and legally described in the attached Exhibit A ("Property") from the undersigned
BALBOA CENTER LIMITED PARTNERSHIP, a Limited Partnership under the laws of the
state of Texas having its principal office at 3131 McKinney Avenue, Suite 404, Dallas, TX, 75024
("SELLER"), said SELLER agreeing to sell such Property to BUYER for the sum of Two Hundred
Seventy Five Thousand Dollars ($275,000) which BUYER agrees to pay in the following manner:
a. Five thousand dollars ($5,000.00) as earnest money, the receipt of which is hereby
acknowledged, and which shall be held and disbursed pursuant to the terms of this
Agreement.
b. The balance of the purchase price in cash or by certified or cashier's check or wire
transfer of immediately available funds on the closing date.
THE CONDITIONS AND TERMS OF THIS PURCHASE AGREEMENT INCLUDE THE
FOLLOWING:
1. DEED/MARKETABLE TITLE: Subject to performance by BUYER, SELLER agrees to
execute and deliver at the time of closing a warranty deed conveying marketable title to said
Property, subject only to the following exceptions:
a. Building and zoning laws, ordinances, state and federal regulations, and
b. Easements, reservations and restrictions of record, if any.
2. POSSESSION: SELLER agrees to deliver possession not later than the date of closing.
COSTS AND PRO-RATIONS: SELLER and BUYER agree to the following pro-rations
and allocations of costs regarding this Agreement:
JBD-16672642
MU195-2 1
a. Deed Taz. SELLER shall pay all state deed tax regarding a Warranty Deed and any
other documents necessary to place record title in the condition warranted and to be
delivered by SELLER under this Agreement.
b. Recording Costs. BUYER shall pay the cost of recording all other documents
including the Deed to be delivered by SELLER to BUYER
c. Taxes and Assessments. SELLER shall pay all real estate taxes due and payable in
the years prior to the year of closing, and special assessments certified for payment
with such taxes, together with all penalties and interest thereon. Real estate taxes
due and payable in the year of closing and special assessments certified for payment
therewith, will be prorated as of the date of closing.
BUYER will assume all special assessments levied or pending with respect to the
Property on and after the date of closing.
SELLER makes no representation or warranty whatsoever concerning the amount of
real estate taxes or assessments which shall be assessed or levied against the
Property subsequent to the date of this Purchase Agreement.
d. Title Insurance Commitment Costs. SELLER will pay all service charges for
obtaining the title insurance commitment with respect to the Property described in
Section 4.
e. Title Insurance Premium. BUYER shall pay all premiums required for any
owner's or mortgagee's title insurance policy issued in connection with this
transaction.
f. Closing Costs. SELLER and BUYER shall each pay one-half (1/2) of any closing
fee payable to Title Company with respect to the transaction contemplated by this
Agreement.
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4. TITLE: Within a reasonable time after acceptance of this Purchase Agreement, SELLER
shall furnish BUYER a title insurance commitment covering the Property. BUYER is
responsible for purchasing title insurance for the Property. BUYER shall have 30 business
days after receipt of the commitment (but not less than 45 days after the date of this
Purchase Ageement) to examine the same and to deliver written objections to title, if any,
to SELLER. SELLER shall be allowed 60 days after the making of BUYER'S objections to
cure the same, but shall have no obligation to do so.
Pending such cure, the closing specified under Section 14 shall be postponed to the extent
necessary to accommodate such cure. Upon such cure, the closing shall be held on the later
of (a) the closing date specified under Section 14; of (b) the frist business day occuring 10
days after the date such cure is completed.
If such cure is not completed within said 60 day period, BUYER shall have the option to do
any of the following:
a. Terminate this Agreement, whereupon the earnest money will be returned to
BUYER,
b. Waive one or more of the objections and proceed to closing.
5. DEFAULT: - If either party shall default in any of the covenants contained in this
Agreement and continue into default for a period of thirty days, then and in that case, the
other party may terminate this Agreement, time being of the essence hereof. Either party
shall have the right of enforcing the specific performance of this Agreement provided this
Agreement shall not be terminated as aforesaid, and provided action to enforce such specific
performance shall be commenced within six months after such right of action shall arise.
6. CONTINGENCIES: This Purchase Agreement is subject to the following contingencies:
a. Environmental. BUYER shall have a reasonable time from the date of this
ageement to inspect the Property and to prepaze or cause to have prepared all at
BUYER's sole expense, such reports and studies as may in the BUYER"s judgment
be necessary to determine whether the Property is free of contamination or pollution;
or, if contamination or pollution is found to be present, what remedial actions are
likely to be required. BUYER may terminate this agreement if it is not satisfied that
the Property is free of such pollution or contamination; or if poluted or
contaminated, the natwe of any likely program for remedial action, including,
without limitation, those required for the Minnesota Voluntary Investigation and
Clean-up Program are not consistent with BUYER's plans for reuse of the Property.
b. Soils. BUYER shall have a reasonable time from the date of this agreement to
inspect the Property and to cause to have prepazed such reports and studies as may in
BUYER's judgment be necessary that the condition of the soils is such as to permit
the use of the Property for its intended purpose. The BUYER may terminate this
agreement if it is not so satisfied.
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MU195-2 3
WII,L HAVE ADEQUATE OPPORTUNITY TO INSPECT THE PROPERTY
AND ACCEPTS THE RISK THAT ANY INSPECTION MAY NOT DISCLOSE
ALL MATERIAL MATTERS AFFECTING THE PROPERTY. SUBJECT ONLY
TO THE TERMS OF SECTIONS AND ,BUYER AGREES THAT IF
BUYER PURCHASES THE PROPERTY, IT WILL ACCEPT THE PROPERTY
IN ITS "AS IS" "WHERE IS" AND "WITH ALL FAULTS" CONDITION AT
CLOSING WITHOUT ANY REPRESENTATION OR WARRANTY
WHATSOEVER INCLUDING AS TO MERCHANTABILITY OR FITNESS FOR
A PARTICULAR PURPOSE, AND WITHOUT ANY RIGHT OF OFF-SET OR
REDUCTION IN THE PURCHASE PRICE.
10. SURVIVAL OF REPRESENTATIONS AND WARRANTIES: Ali of the
representations, warranties, covenants and ageements of the parties hereto contained in this
ageement shall survive the closing of the transaction contemplated herein and the delivery
of any documents provided for herein and shall not be merged into any other agreement.
11. RISK OF LOSS: If the Property is substantially damaged before the closing date so as to
make its use for the intended purposes significantly more costly, this Purchase Agreement
shall become null and void, at the BUYER's option. If such an event occurs, BUYER and
SELLER agee to sign a Cancellation of Purchase Agreement within a reasonable time after
such event takes place.
12. TIlVIC OF ESSENCE: Time is of the essence in this Purchase Agreement.
13. CLOSING DATE AND LOCATION: Closing shall take place at any location which is
mutually acceptable to the parties. Closing shall occur not later than 45 days after all of the
preconditions to closing have been satisfied or waived. Unless extended by the mutual
ageement of the parties, this ageement shall be null and void if the closing has not taken
place by September 1, 2000.
14. ADDITIONAL DOCUMENTS: BUYER and SELLER agee to cooperate with the other
and their representatives regarding any reasonable requests made subsequent to the
execution of this Purchase Agreement to correct any clerical errors in this Purchase
Agreement and to provide any and all additional documentation deemed necessary by either
party to effectuate the transaction contemplated by this Purchase Ageement.
15. NOTICES: Any notice required or permitted to be given by any party upon the other is
given in accordance with the Ageement if it is directed to the SELLER by delivering it
personally to the SELLER; or if it is directed to the BUYER, by delivering it personally to
an officer of the BUYER; or to either party if mailed in a sealed wrapper by United States
registered or certified mail, return receipt requested, postage prepaid; or if transmitted to
either party by facsimile, copy followed by mailed notice as above required; or if deposited
by either party, cost paid with a nationally recognized, reputable overnight courier, properly
addressed as follows:
tan-i~~z6.~
Mui9s-s 5
IF TO THE SELLER:
Balboa Center Limited Partnership
c% CK Development Company
4600 Westbury Drive
Colleyville, Texas 76034
ATTN: Gary N. Maxwell
IF TO THE BUYER
Housing and Redevelopment Authority
in and for the City of Mound
5341 Maywood Road
Mound, Minnesota 55364
ATTN: Executive Director and City Manager
AND COPY TO:
John B. Dean
KENNEDY & GRAVEN, CHARTERED
470 Pillsbury Center
200 South Sixth Street
Minneapolis, Minnesota 55402
Notices shall be deemed effective on the earlier of the date of receipt or the date of deposit
as aforesaid; provided, however, that if notice is given by deposit, that the time for the
response to any notice by the other party shall commence to run one (1) business day after
any such deposit. Any party may change its address for the service of notice by giving
written notice of such change to the other party, or in any manner above specified, ten (10)
days prior to the effective date of such change.
16. EXECUTION IN COUNTERPARTS: This Purchase Agreement may be executed in
counterparts by the parties hereto.
17. ENTIRE AGREEMENT: This Purchase Agreement, any attached exhibits and any
addenda or amendments signed by the parties shall constitute the entire agreement between
SELLER and BUYER, and supersedes any other written or oral agreements between
SELLER and BUYER. This Purchase Agreement can only be modified in writing signed
by SELLER and BUYER
18. NOTICE: The attached notice is made a part of the Authority's offer to purchase.
JBI~166726d2
Mvr9s-z 6
The undersigned, do hereby approve the above Agreement and the sale thereby made.
Date:
SELLER:
BALBOA CENTER LIMITED PARTNERSHIP
By: CK Development Company
Its General Partner
By: Gary N. Maxwell
Its Vice-President
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MOUND
By:
Its Chair
By:
Its Executive Director
This instrument was drafted by:
KENNEDY & GRAVEN, CHARTERED (JBD)
470 Pillsbury Center
200 South Sixth Street
Minneapolis, Minnesota 55402
612-337-9300
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~ NOTICE TO BALBOA CENTER LIMITED PARTNERSHIP
You are hereby notified as follows:
1. The Housing and Redevelopment Authority in and for the City of Mound ("HRA")
is a legal entity organized and operating in accordance with Minnesota Statutes,
Chapter 469
2. Among the powers conferred upon the HRA is the power of eminent domain.
3. The parcel of land which is the subject of the attached purchase ageement is located
within the area of the City of Mound which the HRA has designated as a
Redevelopment Project Area.
4. It is the intention of the HRA to acquire the subject property and to make it available
for redevelopment.
5. In the event that the I-iRA and the owner are unable to reach mutually acceptable
terms concerning the purchase of the subject property, is the present intention of the
HRA to take the steps necessary, and in accordance with the applicable provisions of
law, acquire the subject property through the exercise of its power of eminent
domain.
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MU195-2 8
Proposed Reply to Netka Letter
From Jim Prosser.
Bill and Dorothy Netka
2360 Commerce Boulevazd
Mound, MN 55364
Dear Bill and Dorothy Netka:
I have been asked to respond to your letter addressed to Bruce Chamberlain dated February 7, 2000.
Your letter, as I understand it, had two objectives: First, you were informing Mr. Chamberlain of
your wish to build acommercial/residential building on your property at 2313 Commerce
Boulevard in Mound; and in that connection were requesting information about zoning and final
development plans for the Langdon area. Secondly, you were requesting TIF funding for the new
building.
In terms of the first objective, I believe that you both know that Mound is more than willing to
cooperate with you in reviewing any plans that you may have for the development of your property.
It is not the intention of the City to limit your use of your property so long as your proposed
development is consistent with the land use regulations and building requirements of the City. I
have asked Mr. Chamberlain to provide you with the current land use regulations applicable to your
property.
My response on the second objective, your request for TIF funding, is controlled by the agreement
that is currently in place between the HRA and Mound Mainstreet, Inc., the developer that is
proposing to develop the Langdon area. That agreement, which has an initial term of one year,
prohibits the HRA from providing financial assistance to anyone else wishing to develop within the
Langdon azea during the term of the agreement.
You may find it worthwhile to enter into discussions with Mound Mainstreet, Inc., concerning
whether or not you could have a role in its development plans. To the extent your property is
included in the Mound Mainstreet, Inc. development, TIF funding is an option which the HRA
would be willing to consider.
I hope that this serves as an adequate response to your letter to Mr. Chamberlain. If I can be of
further assistance, or provide you with additional information, please advise.
2360 Commerce Blvd.
Mound, Minn. 55364
February 7, 2000
Mr. Bruce Chamberlain
Hoisington Koegler Group, Inc.
123 N. 3rd St.
Minneapolis, Minn. 55401
Re: Netka Building
2313 Commerce Blvd.
Mound, Minn. 55364
To: Bruce Chamberlain:
This is to advise you that we wish to build acommercial /residential building on
our property at 2313 Commerce Blvd., in Mound. This will coincide with the new
development plans that the City of Mound has in progress.
We are requesting TIF funding from the City of Mound for this new building.
Please send us the necessary papers and information for the TIF funding as soon
as possible.
We would also like to get the final development plans and zoning ordinances for the
Langdon area, so that we can give this information to our architect and go forward with
our plans.
We assure you we will build in accordance with the City of Mound's new development
plans.
Please send us the above information at your earliest convenience.
Very truly yours,
Bill & Dorothy Netka
Telephone-612-472-3200
DN
cc: Tim Sullivan
cc: Mark Hanus, Council Member
cc: Fran Clark, Acting City Manager
02/18/2000 14:15 612-X15-106 STS CONSULTANTS PAGE 02/05
STS Consultants, Ltd.
' a
Solutions through Science & Engineering
Febriuuy 17, 2000
City of Mound
c% Mr. Bruce Chamberlain
Hoisington Koegler Group Inc.
123 North Third Street, Suite 100
Minneapolis, MN 55401
Re: Phase I Environmental Site Assessmenu -Four Downtown Redevelopment Sites
in the City of Mound, Minnesota; STS Proposa1965BA
Dear Mr. Chamberlain:
STS Consultants, Ltd. (STS) is pleased to submit this proposal to perform Phase I Environmental
Site Assessments (ESAs) for four proposed downtown redevelopment areas in the City of
Mound, Minnesota. The redevelopment areas are clustered near the intersection of Lynwood
Boulevard and Commerce Boulevard. Based on surveys of the areas provided by Hoisington
Koegler Group Inc., two of the areas currently contain no buildings. 'Ihe other two azeas contain
eight buildings cacti.
Hoisington Koegler Group Inc. requested STS to prepare cost estimates for this proposal based
on two approaches for performing the Phase I ESAs. The approaches include:
• Cost estimates for each site assuming work would be performed at different times with
completion of individual reports.
• A cost astimate for perfotining work for all four sites at oac time with individual reports.
ape of Work
STS proposes to perform the Phase I ESA(s) in general conformance with the American Society
for Testing and Materials (ASTIR Standard E 1527-97. The proposed scope of work includes
the following tasks:
• Obtain a listing of state and federal environmental sites within ASTM designated search radii
of the project site through an environmental database seazch firm. The search will include
National Priority Lists (NPL) and CERCLIS lists of sites.
• Review of historic aerial photographs available at Wilson Library of the University of
Minnesota in Minneapolis.
• Interview of current property owner or site manager (for sites with buildings), if available,
and local authorities knowledgeable about environmental conditions in the project site azea.
10900 73rd Avenue North, Suite 150 . Maple Grove, MN 55369-5547 • (612} 315-6300. (612} 315-1836 Fax
02/18/2000 14:15 612-315-1836 STS CONSULTANTS PAGE 03/05
t Hoisington Kocglcr Group Inc.
STS Proposa196SBA
February 17, 2000
Page 2
E~
• Review of topographic, soils and geologic information to ascertain soil and groundwater
conditions in the project area.
• A walk-over to observe current conditions on the project site and adjacent properties as
observable from within the site boundaries.
• Review of city directories, if available, for past occupants of property site addresses.
• Review of available Sanborn fire insurance maps Gom 1912, 1950, 1952, 1963 and 1966.
The Sanborn maps cover areas adjacent to Commerce Boulevard in the vicinity of Lynwood
Boulevard and Shoreline Drive.
• Review of Minnesota Pollution Control Agency files, if available, for environmental sites
identified on the project sites or adjacent to project sites.
• Preparation of reports presenting the results of the Phase I ESA. The report will include a
summary of all contacts made regarding the site and a summary of the available literature
sources reviewed. The report will present our interpretation of the site information and our
conclusions regarding environmental concerns which may exist. If environmental concerns
arc identified, recommendations for a Phase II ESA will be made.
STS has performed two Phase I ESAs in close proximity to the redevelopment areas in the past
year. One of the Phase i ESAs was performed for the City of Mound for a vacant property
located south across Shorewood Drive from the former Tonka Toy plant. The other Phase I ESA
was perfonmed for the former Westonka Community Center at Lynwood Boulevard and
Commerce Boulevard for a private client. STS is familiar with environmental sites identified by
these Phase I ESAs in the City of Mound.
STS has prepared cost estimates to perform individual Phase I ESAs far the four development
areas and a cost estimate to perform a single Phase I ESA for the development areas at one time.
The cost estimates are presented below.
~~,gidual ~~.ase I ESAs
Undeveloped areas -two at $1,200 each $2,400
Developed areas with buildings -two at $1,400 each 2 800
Total $5,200
Combined Phase I~SA
Four development areas and four reports $3,800
02/18/2000 14:15 612-315-1836 STS CONSULTANTS PAGE 04/05
,'
~ ~~
Hoisington Koegler Group Inc.
STS Proposa1965BA
February 17, 2000
Page 3
We are prepared to begin work on the project immediately. The Phase I report(s) can be
completed within 2 to 3 weeks of your notice to proceed. This xhedule assumes that the City of
Mound would arrange access for walk-throughs of individual buildings in the development areas.
Cost estimates for expedited turn-azound for the Phase I F.SAs are available on request.
Terms and Conditions
We propose to provide these services in accordance with the General Conditions attached to this
proposal, which are expressly incorporated into, and are an integral part of, our contract for
professional services.
It must be recogniZCd that latent underground pollution of anon-hazardous or hazardous nature
may be discovered in performance of an environmental site assessment. The discovery may
require the buyer/seller under federal and state regulations to undertake remedial measures,
particuiazly if reportable quantities aze encountered. STS considers the responsibility for
reporting any results and subsequent clean-up measures to rest with the seller and/or tenant. STS
will not report the results of the assessment to parties other than that with which we have
contracted unless, in our opinion, there is an imminent health and safety risk involved.
Please indicate your acceptance of this proposal by having as authorized representative of your
firm execute one copy and return it to the undersigned. If we are given verbal or written
notification to proceed, without first receiving a signed copy of our proposal, it will be mutually
understood that both of us will, nonetheless, be contractually bound by the proposal, even in the
absence of written acceptance by you. In any event, a signed copy of this proposal will need to
lx returned to STS before a written report can be submitted.
Please note that this authorization is based on providing relatively limited services as discussed
above. If more extensive or long-term services are required, particularly those services with
significant engineering involvement, a more detailed proposal could be developed. Such a
proposal would detail a specific scope of services to be provided by STS for this project.
Your acceptance of our proposal confirms that the terms and conditions are understood,
including payment of STS Consultants, Ltd. upon receipt of the invoice, unless specifically
arranged otherwise in writing. Of course, should you wish to discuss the terms, conditions, and
provisions of our proposal, we would be pleased to do so at your earliest convenience.
d .,
02/18/2000 14:15 612-315-1836 STS CONSULTANTS PAGE 05/05
a
! Hoisington Koegler Group Inc.
STS Proposa1965BA
' February I7, 2000
Page 4
E~
We appreciate this opportunity to be of service to you. If you have any questions regarding our
involvement with this project, or if we may be of further service, please contact us at
612/315-6300. We look forward to assisting you on this project.
Sincerely,
STS CONSULTANTS, LTD.
a~
•~
Gary J. Rathbun, P S S
Senior Soil Scientist
«~"
Robert L. DeGroot, PG PE
Principal Engineer
GJR/dn
Encs.: STS General Conditions
r6as~aa.ooc
ACCEPTED:
Date
Firm
Authorized Signature
Title
® 965BA, STS Consultants, Ltd., February 1999