City Council Resolution 2016-56CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
RESOLUTION 2016-056
Date August 8, 2016 Resolution No. 2016-056
Motion By Tom Perrault Seconded By Glen Posusta
RESOLUTION APPROVING THE CONVEYANCE OF CERTAIN REAL PROPERTY
AND DISPENSING WITH STATUTORY REQUIREMENTS FOR REVIEW BY THE
PLANNING COMMISSION
WHEREAS, the City of Monticello owns real property located at 1022 River Street West, in
the City of Monticello and legally described as Lot 5, Block 5, River Terrace, (the "Property");
WHEREAS, Charles and Darlene Nelson desire to purchase the Property for construction of
a single family residence;
WHEREAS, the City desires to convey the Property to the Nelsons under the terms provided
in the Purchase Agreement attached hereto as Exhibit A ("Purchase Agreement"), which includes the
right of the City to retake possession of the Property if a home is not constructed on the Property
within 2 years, consistent with the R-2 zoning standards;
WHEREAS, the City Council, in its judgement, finds that the proposed disposal of the
Property has been previously identified as appropriate for sale to promote development consistent
with the Comprehensive Plan;
WHEREAS, Minn. Stat. § 462.356, subd. 2 requires that the Planning Commission review
the City's proposed acquisition of property for consistency with the Comprehensive Plan, except upon
a 2/3 vote of the City Council dispensing with the requirement and finding that the acquisition of the
property has no relationship to the City's comprehensive plan;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Monticello,
Minnesota:
1. Pursuant to Minn. Stat. § 462.356, subd. 2. the City Council finds that the acquisition of the
Property has no relationship to the City's comprehensive plan and hereby dispenses with
review by the Planning Commission;
2. The Purchase Agreement is hereby approved; and
3. The Mayor and City Administrator are authorized to execute any documents which, in the
opinion of the City Attorney, are necessary to complete this transaction.
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ADOPTED this day of - , 2016, by the City Council of the City of
Monticello, Minnesota.
CITY OF MONTICELLO
By:
Brian Stumpf, Mayo
ATTEST:
Jeff O' Bill Administrator
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CERTIFICATION
STATE OF MINNESOTA
COUNTY OF WRIGHT
I hereby certify that the foregoing is a true and correct copy of Resolution #2016-056
duly passed, adopted and approved by the Monticello City Council at their meeting on August 8,
2016 and recorded in minutes of said meeting. %(-\
ifer S , i er,)City Clerk
' 11ZA-J'7
Notary Public: t.
Date: ,�(71
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(STS
VICKI JAN IEERHO"
NOTARY PU"
MINNESOTA
' � ,_, , ., My Camn�scian Expires otAtt/!<Elti
EXHIBIT A
PURCHASE AGREEMENT
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VACANT LAND PURCHASE AGREEME,4 NT
1 • PARTICES. This Purchase Agreement is made on the "6_7aJnda of
and between the CITY ®�' MOl�iTiCEI,L®, a Minnesota y �' `�S� 2016, by
Street, Monticello, Minnesota 55362 ("Seller"), and CHARLES ppm �On' 505 Walnut
NELSON, husband and wife, residing at 1099 — 941' Street N.W., Monticellllo MN 555362 N and DARLENE F.
("Buyers"). 362
2. OFFER/ACCEPTANCE. Buyers offer to purchase and Seller agrees to sell the property
located in the City of Monticello, County of Wright, State of Minnesota legally described in
Exhibit A attached hereto and made a part hereof ("property),).
3. PR'CE AND TERMS. The price for the Property included under this Purchase Agreement
is Twenty-five Thousand and NoA 00 Dollars ($25,000.00), which Buyers shall pay to Seller as
follows:
A. Earnest money of $100.00 by check payable to Seller, to be deposited and held by
Seller (and may be commingled with Seller's other funds), receipt of which is
hereby acknowledged, to be applied to the Purchase price at closing;
B. The remainder of the Purchase Price in cash or by wire transfer of U.S. Federal
Funds on the Closing Date as hereinafter defined.
4. DEED/MARKETABLE TITLE. Upon performance by Buyers, Seller shall execute and
deliver to Buyers a Limited Wfi rmnty Deed, conveying good and marketable title of record,
subject to:
A, Reservations of minerals or mineral rights by the State of Minnesota, if any,
B. Building and zoning laws, ordinances, state and federal regulations;
C. 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 Buyers; and
D. Any encumbrances shown on the title commitment to K41ich Buyers have not objected
to under Paragraph 9 of this Agreement ("Permitted Encumbrances").
5. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS.
A. Prior Years' Delinquent Real Estate Taxes and Delia uent S ial 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.
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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 Buyers on a calendar year basis
to the Date of Closing. Buyers shallassume 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 due and payable in the year of closing shall be
prorated between Seller and Buyers on a calendar year basis to the actual date of
closing, adjusted on the settlement statement at closing, and unless otherwise
provided in this Purchase Agreement, shall be paid 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, Buyers may, at Buyers'
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 Buyers shall pay a commensurate increase in
the purchase price 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
Buyers.
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.
6. SURVEY. Buyers may have the Property surveyed as determined by Buyers, in Buyers' sole
discretion and at Buyers' expense. If the survey shows any discrepancies or conflicts in boundary
lines and encroachments which materially decrease the value of the Property based on Buyers'
intended use, which Seller is unable or unwilling to cure, then Buyers' sole remedy shall be to
terminate this Agreement by notice to Seller, given no later than Closing Date, whereupon the
Earnest Money shall be refunded, otherwise the defects shall be deemed to be waived.
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7. ACCESS PIUOR TO CLOSING. Upon reasonable notice to Seller, Buyers and Buyers'
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 Buyers' expense, surveys,
measurements, soil tests and other tests that Buyers shall deem necessary. Buyers agree to restore
any resulting damage to the Property and to indemnify, hold harmless and defend Seller from any
and all claims by third persons of any nature whatsoever arising from Buyers' right of entry
hereunder, including all actions, proceedings, demands, assessments, costs, expenses and attorneys'
fees. Buyers 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.
Buyers shall provide to Seller a copy of any such surveys, measurements, soil tests or other tests
within five (5) days after receipt.
S. POSSESSION. Seller shall deliver possession of the Property not later than the actual Date of
Closing.
9. TITTLE INSURANCE. To demonstrate that Seller's title is insurable for marketability and
subject only to those matters provided under Paragraph 4, within a reasonable period of time
following the date of this Agreement, Seller shall furnish Buyers with a Commitment for Title
Insurance in the full amount of the Purchase Price certified to date to include proper searches
covering bankruptcies, state and federal judgments and liens, and levied and pending special
assessments. The Title Commitment shall be obtained from the insurer of Buyers' choice. Buyers
shall be allowed twenty (20) business days after receipt of the title commitment for examination of
title and making any objections, which shall be made in writing or deemed waived.
10. TITLE CORRECTIONS AND ITEM EDIES. Seller shall have twenty (20) business
days from receipt of Buyers' written title objections to notify Buyers of Seller's intention to make
title marketable within one hundred twenty (120) days from Seller's receipt of such written
objections. If notice is given, payments hereunder required shall be postponed pending correction
of title, but upon correction of title within ten (10) days after written notice to Buyers, the parties
shall perform the 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, this Agreement shall be null and void, at the
option of Buyers, and in such case, neither party shall be liable for damages hereunder to the other.
11. NOTICES. All notices required herein shall be in writing and delivered personally or
mailed to the address as shown at Paragraph 1, above and if mailed, are effective as of the date of
mailing.
12. MINNESOTA A ILAW. This contract shall be governed by the laws of the State of
Minnesota.
13. WELL DISCLOSURE. [Check one of the following: ]
XX Seller certifies that Seller does not know of any wells on the Property.
Wells on the Property are disclosed by Seller on the attached Well Disclosure form.
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14. DISCLOSURE OF IINDIMUAL ORT -SITE SEWAGE 7'i EAT ` f\\7 SYSTEM.
[Check one ofthe following: ]
XX Seller certifies that Seller does not know of any individual on-site sewage treatment
systems on the Property.
Individual on-site sewage treatment systems on the Property are disclosed by Seller on the
attached Disclosure form.
1S.
SELLER'S COVENANTS, R' PRE'SlEX7I'AT IONS AND WARRANTIES.
A. Seller, as part of the consideration therefore, represents warrants, and covenants with
Buyers and their successors and assigns that:
(1) Seller has the present full authority and power to execute this Agreement and to
close the sale of the Property.
(2) That Seller has not received notice of (a) any actual or pending litigation or
proceeding by any organization, person, individual or governmental agency
against Seller with respect to the Property or against the Property, (b) any
violation of the Property's compliance with applicable fire safety laws, building
code ordinances, zoning ordinances or any similar statutes, ordinances, laws,
rules or regulations, (c) any condition, defect or inadequacy which, if not
corrected, would result in the termination of, or increase in the cost of,
insurance coverage, (d) any proceedings which could cause the change,
redefinition or other modification of the zoning classifications or of other legal
requirements applicable to the Property or any part thereof, or (e) any pending
or threatened condemnation proceeding that would affect the Property.
(3) There are no (a) outstanding leases or occupancy agreements, or (b) outstanding
contracts made by Seller for any improvements to the Property which have not
been fully paid for or for which Seller shall make arrangements to pay off
except such contracts as shall be agreed upon by Seller and Buyers for
improvements to the Property and Seller shall cause to be discharged all
mechanic's or materialmen's liens arising from any labor or materials furnished
to the Property prior to the Date of Closing.
(4) Seller will not, without the prior written consent of Buyers:
(a) construct or enter into any agreement or commitment to construct any
improvement or alteration to the Property; or
(b) enter into or consent to any lease, easement, covenant or other obligation
affecting the Property or alteration to the Property except as provided herein.
(5) Seller shall deliver to Buyers a written notice of the commencement of any
legal action by any governmental authority or third party affecting the Property
and will make no concessions or settlements with respect to any such action
without Buyers' prior written consent.
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(6) Seller is not a foreign person, as such term is defined in Section 1445(f)(3) of
the Internal Revenue Code of 1986, as amended, and shall deliver an affidavit
to that effect at closing, which shall be in form and substance reasonably
acceptable to Buyers.
B. All of Seller's covenants, representations and warranties in this Agreement shall be
true as of the date hereof and of the Closing Date, and shall be a condition precedent
to the performance of Buyers' obligations hereunder.
C. PROTECTED HISTORICAL SITES. [Select either (1) or (2) below.-]
X 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.
Seller represents that 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. Buyers'
obligation to close is contingent upon Buyers determining to Buyers' satisfaction that
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.
16. SELLER9S AFFMAVIT. At closing, Seller shall supplement the warranties and
representations in this Purchase Agreement by executing and delivering a Minnesota Uniform
Conveyancing Blank [Form No. 116-M, 117-M, or 118-M] Affidavit of Seller."'
r
17. C..OSWG. The closing (the "Closing") of the purchase and sale contemplat 'this
�A!etber 2-5
Agreement shall occur at a location designated by Buyers, and shall occur on or before
25 � 2016 ("Closing Date"). At closing, Seller and Buyers shall disclose their Social Security
Numbers or Federal Tax Identification Numbers for the purposes of completing state and fedeyal
tax forms. A�
18. CLOSING DOCUMENTS.
A. At the Closing, Seller shall execute and/or deliver to Buyers the following (collectively
the "Closing Documents"):
188380v1
(1) Limited Wampty Deed. A Limited Warranty Deed in recordable form and
reasonably satisfactory to Buyers, which shall include the following well
representations: "Seller certifies that the Seller does not know of any wells on
the described Property." The Limited Warranty Deed shall be subject to the
requirements of Paragraph 20.A,(1).
(2) Seller's Affidzvit 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
JI.
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) Store 'Tanks. If required, an affidavit with respect to storage tanks pursuant
to Minn. Stat. § 116.48.
(5) Wel➢ Certificate. If there is a well located on the Property, a well disclosure
certificate in form and substance true to form for recording.
(6) Certif c ation. 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.
(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, Buyers 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.
19. CLOSING COSTS. The costs relating to the closing of this transaction shall be paid as
follows:
A. Buyers shall pay:
(1) Recording fee for the Limited Warranty Deed;
(2) One-half of the closing fee charged by the Title Company; and
(3) The premium for owner's title insurance, including survey coverage.
B. Seller shall pay:
(1) All costs of obtaining a title insurance commitment;
(2) State deed tax;
188380v1 6
(3) One-half of the closing fee charged by the Title Company; and
(4) Conservation fee attributable to the Limited Warranty Deed
20. AIIDTDIITIONAL TERMS.
A. Seller's Contingencies. Seller's obligations under this Agreement are expressly
contingent upon the following prior to Closing ("Seller's Contingencies"):
(1) Buyers agree to construct a residence on the Property consistent with the City's
R-2 zoning requirements and shall obtain a Certificate of Occupancy within two
years of the Date of Closing. If such failure shall not be cured within thirty (30)
days after written notice to do so, or within a reasonable amount of time
thereafter, then the Seller shall have the right to immediately re- enter and take
possession of the Property and to terminate (and revest in the Seller) the estate
conveyed by the Limited Warranty Deed to the Buyers. The conveyance of the
Property to the Buyers shall be made upon, and the Limited Warranty Deed
shall contain a condition subsequent to the effect that in the event of any default
on the part of the Buyers and failure on the part of the Buyers to remedy, end,
or abrogate such default within the period and in the manner stated herein, the
Seller, at its option, may declare a termination in favor of the Seller of the title,
and all of the rights and interests in and to the Property conveyed to the Buyers,
and that such title and all rights and interests of the Buyers, and any assigns or
successors in interest to and in the Property, shall revert to the Seller.
Seller and Buyers agree that the transaction contemplated herein is contingent upon
the performance or resolution of the contingencies contained in this Paragraph. In the
event any of the Contingencies have not been satisfied or waived, in the sole and
absolute judgment of Seller by Closing ("Contingency Period"), the Seller may
terminate this Agreement by giving written notice to the Buyer. The Contingencies
are for the sole benefit of the Seller and the Seller shall have the right to waive any or
all of the Seller Contingencies by written notice to the Buyer. Termination of this
Agreement by Seller as a result of any of the Contingencies not being satisfied shall
result in both parties hereto being relieved of any further rights, responsibilities or
obligations hereunder.
B. Broker's Commission. Seller and Buyers represent and warrant to each other that
they have dealt with no brokers, finders or the like in connection with this transaction,
and agree to indemnify each other and to hold each other harmless against all other
claims, damages, costs or expenses of or for any fees or commissions resulting from
their separate actions or agreements regarding the execution or performance of this
Agreement, and will pay all costs of defending any action or lawsuit brought to
recover any such fees or commissions incurred by the other party, including
reasonable attorneys' fees.
21. ADDENDA. Attached are no addenda which are made a part of this Purchase Agreement.
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22. TEIVM rS OF THE ESSENCE. Time is of the essence for all provisions of this Purchase
Agreement,
23. MULTIPLE ORIGINALS. NAILS. Seller and Buyers have signed two (2) originals of this
Purchase Agreement.
[Remainder ofpage intentionally left blank]
[Signature pages to follow]
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The City agrees to sell the Property for the price and terms and conditions set forth above.
SELLER:
CITY OF MO T ICELLO
By:
Brian Stumpf, Its Mayor
And-
JeffbqbwoIts City Administrator
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The Buyers agree to buy the Property for the price and terms and conditions set forth above.
111,11Y
`401N;
SO
7i &J-Qc-rl�
- & "Darlene F. Nelson
1883800 10
EqjRj7r A
Legal Descriptfom of Property
Lot 5, Block 5, River Terrace, Wright County, Minnesota, according to the recorded plat thereof
on file and of record.
188380v1 11