HomeMy WebLinkAboutVIII-16 1st Amendment to Purchase Agreement - Northern State Services LLC - (Spiral and Glendale)
City Council Memorandum
To: Mayor Fasbender and City Council
From: John Hinzman, Community Development Director
Date: December 18, 2023
Item: Resolution: Approve the First Amendment to Purchase Agreement - Sale of City
Property – Northern State Services LLC – Northwest Corner of Spiral Blvd and
Glendale Rd
City Council Action Requested
Adopt the attached resolution approving the First Amendment to the Purchase Agreement
between the City of Hastings and Northern State Services, LLC for sale of +/- 5 acre
parcel located at the northwest corner of Spiral Blvd and Glendale Rd. A simple majority
is necessary for action.
The amendment extends the closing date until July 1, 2024. All other provisions remain
the same.
Background Information
The City Council authorized sale of the property on June 26, 2023 subject to closing on
the property by December 31, 2023. Staff continues to work with Northern State
Services and expects the closing to occur shortly, however it is likely the December 31st
requirement will not be met.
Financial Impact:
Sale of the property will generate $60,960 in revenue as well as an increase in the
community’s annual tax base. City maintenance expenses for the property will cease.
Advisory Commission Discussion:
N/A
Council Commission Discussion:
N\A
Attachments:
• Location Map
• Resolution – Approving First Amendment to Purchase Agreement
• First Amendment to Purchase Agreement
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Richard Reis Property
City Property for disposition/ sale
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HASTINGS CITY COUNICL
RESOLUTION NO.
A RESOLUTION APPROVING THE FIRST AMENDMENT TO PURCHASE
AGREEMENT WITH NORTHERN STATE SERVICES LLC
Council member _ ______________ introduced the following Resolution and
moved its adoption:
WHEREAS, the City of Hastings (“City”) is the fee owner of real property located in
Dakota County, Minnesota, and legally described on Exhibit A (“City Property”); and
WHEREAS, on June 26, 2023, by and through Resolution No. 06-28-23, the City
approved the disposal and sale of the portion of City Property legally described on Exhibit B (the
“Property”); and
WHEREAS, also on June 26, 2023, by and through Resolution No. 06-28-23, the City
approved the related Purchase Agreement dated June 26, 2023 (“Agreement”) by and between the
City and Northern State Services LLC (“Buyer”); and
WHEREAS, Buyer has requested the Purchase Agreement be amended to extend the
Closing Date.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Hastings as
follows:
1. The Closing Date is hereby extended to July 1, 2024.
2. The First Amendment to Purchase Agreement is hereby approved, subject to minor
modification as approved by the City Attorney, and the appropriate officials are
authorized to take such action as to effectuate its execution and implementation.
Council member _ moved a second to this Resolution and upon
being put to a vote it was adopted by the Council Members present.
Adopted by the Hastings City Council this 18th day of December 2023, with the following vote:
Ayes:
Nays:
Absent:
______________________________
Mary Fasbender, Mayor
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ATTEST:
_____________________________
Kelly Murtaugh, City Clerk
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EXHIBIT A
LEGAL DESCRIPTION OF CITY’S PROPERTY
That part of the Southwest Quarter of the Southeast Quarter of Section 35, Township 115, Range
17, Dakota County, Minnesota lying west of Glendale Road and subject to highway easement
Parcel 1 on County Right-of-Way Map 108.
Abstract Property
PID: 19-03500-84-010
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EXHIBIT B
LEGAL DESCRIPTION OF THE PROPERTY
That part of the Southwest Quarter of the Southeast Quarter of Section 35, Township 115, Range
17, described as BEGINNING at the northwest corner of said Southwest Quarter of the Southeast
Quarter; thence South 0 degrees 15 minutes 13 seconds East along the west line of said Southwest
Quarter of the Southeast Quarter 578.64 feet; thence northeasterly 535.96 feet along a curve that
is concave to the northwest having a radius of 707.00 feet, central angle of 35 degrees 01 minute
17 seconds, chord distance of 425.45 feet, and the chord of said curve bears North 52 degrees 26
minutes 53 seconds East; thence North 34 degrees 56 minutes 16 seconds East, tangent to the last
described curve, 104.02 feet; thence northeasterly 253.80 feet along a curve concave to the
southeast, having a radius of 260.00 feet, central angle of 55 degrees 55 minutes 45 seconds, chord
distance of 243.84 feet, and the chord of said curve bears North 62 degrees 54 minutes 08 seconds
East; thence South 89 degrees 58 minutes 45 seconds East, not tangent to the last described curve;
50.00 feet to the centerline of Dakota County Road 91, as now traveled; thence North 0 degrees
01 minute 15 seconds East along said centerline of County Road 91 a distance of 125.04 feet to
the north line of said Southwest Quarter of the Southeast Quarter; thence South 89 degrees 49
minutes 32 seconds West along said north line of the Southwest Quarter 666.55 feet to the point
of beginning. Subject to highway easement.
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FIRST AMENDMENT TO PURCHASE AGREEMENT
THIS FIRST AMENDMENT TO PURCHASE AGREEMENT (this “First
Amendment”) is entered into as of , 2023 (the “Effective Date”), by and
between the City of Hastings, a Minnesota municipal corporation (“City”), and Northern State
Services LLC, a Minnesota limited liability company (“Buyer”).
RECITALS
Recital No. 1. City and Buyer entered into a Purchase Agreement dated June 26, 2023
(“Agreement”), for the purchase and sale of real property identified in the Agreement.
Recital No. 2. Buyer has requested the Agreement be amended to extend the Closing
Date.
Recital No. 3. City does not object to the extension.
NOW, THEREFORE, in consideration of the mutual promises and covenants of each to
the other contained in this First Amendment and other good and valuable consideration, receipt of
which is hereby acknowledged, the parties hereto do covenant and agree as follows:
1. The entire Agreement is hereby incorporated into this First Amendment, except as
modified below.
2. Section 6 of the Agreement shall be removed and replaced in its entirety as follows:
6. Closing. The closing of the purchase and sale contemplated by this Agreement (the
“Closing”) shall occur on or before July 1, 2024, unless otherwise agreed to by the parties
(the “Closing Date”). City agrees to deliver legal and actual possession of the Property to
Buyer on the Closing Date.
3. Except as provided for above, the terms and provisions of the Agreement shall remain in
full force and effect.
4. This First Amendment and all disputes or controversies arising out of or relating to this
First Amendment or the transactions contemplated hereby shall be governed by, and
construed in accordance with, the internal laws of the State of Minnesota, without regard
to the laws of any other jurisdiction that might be applied because of the conflicts of laws
principles of the State of Minnesota.
5. Nothing contained herein shall be deemed a waiver by the City of any governmental
immunity defenses, statutory or otherwise. Further, any and all claims brought by Buyer
or its successors or assigns, shall be subject to any governmental immunity defenses of the
City and the maximum liability limits provided by Minnesota Statutes, Chapter 466.
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6. This First Amendment may be executed in two or more counterparts, all of which shall be
considered one and the same instrument and shall become effective when one or more
counterparts have been signed by the parties and delivered to the other parties.
7. This First Amendment shall not be amended, modified or supplemented, except by a
written instrument signed by an authorized representative of each party.
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IN AGREEMENT, the parties hereto have hereunto set their hands as of the Effective
Date.
CITY:
CITY OF HASTINGS
By ________________________________
Mary Fasbender
Its Mayor
By ________________________________
Kelly Murtaugh
Its City Clerk
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BUYER:
NORTHERN STATE SERVICES LLC
By:
Printed Name:
Its:
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