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03-05-01 agenda• CITY OF RICHFIELD MONDAY, MARCH 5, 2001 SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY MEETING RICHFIELD CITY HALL COUNCIL CHAMBERS 7 P.M. AGENDA. Call to order 1. HRA approval of agenda 2. Public hearing for sale/transfer of property to Best Buy Staff Report No. 23 3. Consideration of draft license agreement with Motorwerks, Inc. for use by BMW dealership site at 2100 West 78th Street Staff Report No. 24 • 4. Consideration of draft license agreement with Walser Sales, Inc. for use by Buick/Isuza dealership sites at 2100 West 78th Street Staff Report No. 25 5. Consideration of Stipulation of Award in Condemnation as to Century Lodge #338 now known as Cataract Lodge No. 2 of St. Anthony and agreement regarding relocation benefits Staff Report No. 26 Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the Administrative Services Director at 612-861-9702. • • AGENDA ITEM # 5 REPORT # 2 STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING MARCH 5, 2001 • JOHN STARK, REPORT PREPARED BY: COMMUNITY DEVELOPMENT MANAGER NAME, TITLE REPORT PRESENTER: JOHN STARK, .COMMUNITY DEVELOPMENT MANAGER. NAME, TITLE DEPARTMENT DIRECTOR REVIEW: ~~~~~ REVIEWED BY EXECUTIVE DIRECTOR: d ITEM FOR HRA CONSIDERATION: Consideration of a Stipulation of Award in Condemnation as to Century Lodge #338 now known as Cataract Lodge No. 2 of St. Anthony and an Agreement Regarding Relocation Benefits. RECOMMENDED ACTION: By Motion: Approve a Stipulation of Award in Condemnation as to Century Lodge #338 now known as Cataract Lodge No. 2 of St. Anthony and an Agreement Regarding Relocation Benefits. III. BACKGROUND On March 20, 2000, the Richfield Housing and Redevelopment Authority (HRA) adopted, and entered into a Contract for Private Development (Contract) with Best Buy for the redevelopment of the Interchange West area. The Contract contemplates the private acquisition of properties by Best Buy wherever possible. Section 3.2 of the Contract, however, allows Best Buy to request that properties be acquired through condemnation. The Contract stipulates that this request can come only after Best Buy has taken reasonable steps to acquire property for which the, request is being made. On September 18, 2000, Best Buy made a request that certain properties be acquired through condemnation because a negotiated purchase agreement could 03051odge not be made. Among the properties contained in this request was property owned by Century Lodge #338 now known as Cataract Lodge No. 2 of St. Anthony. • Since commencement of condemnation, settlement agreements for the acquisition of the property and relocation of its occupants have been reached. The agreed price reached in the settlement was- $830,000 for acquisition of the property and an additional $70,000 for relocation benefits. Among the terms are a vacation date at least 60 days after deposit of payment for the property or on April 30, 2001; whichever is later. The settlement agreements are set to expire on October 1, 2001, after which time the settlement agreements would expire and the condemnation process would proceed. III. BASIS OF RECOMMENDATION A. POLICY • On March 20, 2000 the HRA entered into a Contract for Private Development with Best Buy Co., Inc. for the redevelopment of the Interchange West area. • In accordance with the terms of the contract, on September 18, 2000 Best Buy requested and was granted the HRA's acquisition of certain properties through eminent domain. This request included property owned by Century Lodge #338 now known as Cataract Lodge No. 2 of St. Anthony. • Since that time, settlements have been made as to the price and terms for acquisition of the property and relocation of its occupants. B. CRITICAL ISSUES • • The acquisition of this property is necessary for the redevelopment of the Interchange West area. C. FINANCIAL • In accordance with the Contract for Private Development, Best Buy is responsible for all costs associated with condemnation and relocation within the Interchange West area. D. LEGAL • Legal counsel has reviewed the attached agreements. ~ IV. ALTERNATIVE RECOMMENDATION(S) ~ • None. ATTACHMENTS ~ • Stipulation of Award in Condemnation as to Century Lodge #338 now known as Cataract Lodge No. 2 of St. Anthony, and; . • An Agreement Regarding Relocation Benefits. ~ VI. PRINCIPAL PARTIES EXPECTED AT MEETING ~ • rtrw ieaai cou 02-27-01 12:12pm From-KENNEDY & GRAVEN • STATE 4F MINNESOTA COUNTY OF HENNEPIN "fhe Housing grid Redevelopment AutlWrity in and for the Ciry of Richfield, a public body corporate and. politic under Minnesota taw, QCtlttOnzr, v S. Leaseback Properties Limited Partnership, a Mint~sata limited partnership; Pioneer Plastics, a Minnesota carparativn; Graphic Prep., Inc., a Minnesota corporation, also known as Graphic Prep Yrititint; Company; A.M.R., Inc., also known as American Motorcycle Racing: Allied Overhead Moors, inc., a Minnesota corporation; GEEK,TRONICS, inc., a Minnesota corporation; Cinata Corporation, a Minnesota corporation; Repro Printing, inc., a Minnesota corporation; Jan f.onneman; Sandra Lonneman; Ray Lonneman; • Stare of Minnesota; Mary Lee Whiting, individually and ilba Canine College; Springer, ltic., a Minnesota corporation; Century Lodge ##3?8, A.F. & A.M. and Richfield Lodge Na. 334, ancient Free and Accepted Masons n1Wa Cat~araet Lodge iVn. ~, ut` St. Anthony, a Minnesota non-praht corporation; Bloomington Lodge No. 340, Ancient Free and Accepted Masons, a Minnesota non-profit c4rpuratinn; Minneapolis Chapter No. 9 R.A.M.; Bloctmingtvn Chapter No. 3U7 O.F.S.; Richfield Chapter loo. 293 U.F.S.; lab's Daughters Bethel No. i; Royalty Court No. 13, Qrder of the Amuanth; :lul-Honor Temple 1~to. 5&, Aausbters of the Nile; C'iry of'Richfield; County afHrmtepin; all other parries unknown having any right, tine or interest in thz premises herein, together with the unknown heirs or devisees,. if any, of the parties that may be deceased, and including unknown spouses, if any, Respondents. +6123378310 ?-079 P.D2I17 F-656 DISTRICT COURT FOURTH JUAICiAL p1STRiCT Casa Type Condemnation Court Fiie Na. CD-2612 Stipulation Of Award Iu Conaletntaation As To Century Lodge #3313, A F. ~ A.l-'I. A Mi>nesota Noa-Profit Corporation anti Ricbfield. Lodge Na. 334, Ancient Free And Accepted Masons rt/k/a Cataract Lodge No. 2, Of St. Anthony. A Minnesota Non-Prsfst Corporation. • OZ-ZT-DI 1Z:iZpm Ffom-KEnnEllT ~ GKAVtn tCIY3~ra~lu 1-ura Y.UJ/Ir r-OOa WHEREAS, petitioner, the Housittg REdeveioptnent Authority of the City of Richfield • ettion in Condemnation and motion for transfer °f title and possession (the "HRA"}filed its P under Minnesota Statutes Section l 17.04? on November 2, 2060; Wl-iEREAS, respondent Century Lodge #338, A-F• ~ A-M•~ a Minnesota non-profit corporation (-'Century Lodge") and Richfield kodge No' 334, Ancient Free and Accepted Masons ~ `Richfield Lodge") are the fee owners (each as to an undivided one-half interest ihrrein) of cenain property in Richfield, Minnesota {the "Property ") which is more fatly described in Exhibit A hereto; WHEREAS by reason of a merger between respanclents Century Lodge and Richfield Lodge into Cataract Lodge No. 2 of St. Anthony, a Minnesota non-profit corporation No. 334 ("Cataract Lodge"}, et€ecrive December 1, 1499 and described in Exhibit B hereto= Caiara~t l,odgr is the fez owner of the Praprr[y; 1UHEREAS, the Petiiion in Condemnation and Motion for Transfer of Titlz and • Possea~ion was served on Cataract Lodge for condemnation. at'the Property on or about November 33, 2000; WHEREAS, Cataract Lodge does not contest the public purpose and necessity of thr condemnation action; WHEREAS, thr HRA and Cataract Lodge desire to compromise and settle all issues hatween them as to compensation for the Cataract Lodge real estate ("Properly") as snore fully described. in Exhibit A hereto; and WHEREAS, Cataract Lodge, ptusuant to a resolution passed by their respective hoards of Trustees, are authorized to Cntzr into this Agreement; NUW, THEREFORE, tha parties hereto hereby agree as follows: -2- • r~ U UL-LY-UI Ic:lcpm f•fUm~RG11i7CL1 d YRMYCII TultJaiaoly ~-uaa r.uyrn r-uua t This condemnation proceeding is hereby settled upon payment of the amount of $83U,40QAQ tQ Cataract Lodge as set fc~tth in paragraph 3 below. ~ Cataract Lodge hereby acknowledges and :agrees that the payments to be rc~cetved under this Stipulation. of Award in Condemnation ("Stipulation") is compensation in foil fDr any and all of Cataract Lodge's rights in and to the Properly including, wtrhout limitation and by way of example only, any and all claims related to the law of emuuent domain= claims for the land, buildings, fixtures, and related. items v~i~ich are or may be argued to be real property, claims for severance damages; claims for any consequential damages and claims for loss of going concern value. 3. The payments to be made to Cataract Lodge under this Stipulation shall be made at such time as the HRA makes its Buick-take deposit of the approved appraisal amount necessary to cause title to the Property to transfer to the HRA in accordance with the Court's • ' order and pursuant w h~linn_ Stat. § 1 t ?.042. 4. Hlt-A shall obtain. title to the Property on the- date it makes the quick-take deposit. Cataract lodge shall be permitted to retain possession of the Property until the Later of Rprl 30, ?OOl or the date that isb0 days after the quick-take deposit (the `'holdover perivd")• During the holdvver period. Cataract Lodge, at its expense, shall be responsible far utilities, repairs, rnaintenanoe, insurance coverage and taxes, if any, for the Property. Utilirirs shall ncludz electricity, wafer and such heat, air conditioning and other utilities that Cataract Lodge may desire. Cataract Lodge shall repair and maintain the Property such that the Property is in approximate}y the same condition on the date Cataract Lodge surrenders possession as on the quick-take date. Insurance coverage shall include fire and extended coverage insurance on the building a»d any fixtures, equipment and personal property at the Property and liability insurance at the current levels of coverage. In addition, Cataract Lodge -3- C 02-2-01 12;13pm From-KENNEDY & GRAVEN +$12337931D T-DTH P.U5/17 F-658 will provide the HRA, on or before the holdover period, with evideneC that such insurance is • or its successors and assigns is listed as an additional insured or in place and that the HKA loss payee, as appropriate, under such policies. Cataract Lodge and T~RA (and its successors and assigns), mutually waive and release all claims and liabilities against the athzr, and the agents, servants, employees and invitees of the other, for Loss or damage to the Property during the holdover period with respect to any loss or damage covered or covetable by insurance required to be maintained under this provision. Cataract Lodge shall defend, indemnify and save HRA, its successors and assigns harmless from and against all liabilities, damages, claims, c©sts, charges, judgments and expenses,. including attorneys' lees, which may be imposed upon or incurred or paid by or asserted against HRA, its successors or assigns, the Property, or any interest therein by reason of any use of the Properly by Cataract Lodge, or any of its agents, contractors, servants, employees, licensees, invitees or tenants. • Cataract Lodge shall remove any and all persona! property prior to the end of the holdover period, and any such property remaining an the Property after the last day shall be deemed given to HRA, its successors or assigns. 5. if the HRA does not make the quick-take deposit as provided in paragraph 3 herein, by October I, 2001, then this Stipulation shall be null and void and na Award or payment shall be made. If the Stipulation is voided because the quick-take deposit is not made as provided in paragraph 3 herein, by October 1, 2041, then the HRA shat! pay Cataract Lodge its respective reasonable costs and attorneys' fees in connection with this action in a total amount not to exceed $x,000. 6. The Commission appointed by the Court in this procradint; shad make its Award in accordance with this Stipulation {and itt the form attachzd herewith as Exhibit C) and the Property will have been acquired through condemnation. -4- • • to further hearings or appeal. S. This Stipulation as tc~ thL Property shall be binding upon the parties hereto, their successors and assigns, affiliates and subsidiaries and any person or entity related to or which ocherwisa claims any right or interest in the Property born Cataract LQdge• APPItUVEp FOR THIS HOUSING ~EAEYELOPMENT AUTHORITY f)F THE CITY QF RiCHF1E[-D: By - Its Dated: • 0?-21-01 12:19pm Frfl~a-KENt1EDY & ~GRAVfN +6123379310 T-0~8 P.06~'17 F-S68 ~_ Each party agrees nat to appeal the Award herein and knowingly waives the right ?Dtl 1 APPRUVEI? Ft~R KESPUNAI:NT CA'fARAC'F kflAGE NO- 2 OF ST. ANTHUNY: By W J its _~~ L~ 4 ~~~- ~i~- ~S Dated: , 20U1 -5- n 02-27-01 12:13pm From-KENNEDY & GRAVEN +S1Z3378310 T-0T9 P.O7/17 F-556 • I~XHi81T A Abstract Address: 7615 Logan Avenue South, Richfield, Minnes°ta. Le al escri rinn of Pro a and Desert lion of Talon Taking in fee simple absolute. Tract R, except the South 302 fee[ thereof, Registered Land Survey No. 618, Hennepin County, Minnesota. AND The South 176 feet of the North 349 feet of the West 5 acres of the Southeast ~iuarter of the Southwest Quarter, Section 33, Township 28, Range 24, Hennepin County, Minnesota. Together with all rights in and to any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all appurtenant easements. • ~ s 02-?7-01 i1:l3pm from-KENNEDY & CRAVEN +6123379310 T-D79 P.08/17 F-656 . ESC 1BI B (C~RTIFIeAT~ OF M~RGEI2} • -?- • • DZ-27-01 1Z;idpm From-KfNNEDY & GRAVEN +6123378310 T-078 P.08/17 F-658 IrXHIBIT C STATE OF M1N1~1~SOTA 1y1. IS'I°RICT COURT COUNTS OF ~IEN~~P;l~ FOURTH .lunlCtAL pjsTRICT Case 'L~gr: Coademuation Z'hc Housing and Redevelopment Authoriiy in-and Court Bile No, Cp_2612 for the City of Riehfi~ld, a public body corporate and politic under Minnesota law, Petitioner, vs. Lzaseba~k 1'ro~rties Lirtite~i l'artnQrship, a Minnc~ota limited partnership; Pioneer Plastics., a Minnesota corporation, Graphic Prep., Inc., a ivlinnesota corporation, also known as Graphic Prep Printing Company; A.M.R., loc., also known as American Motorcycle Racing; Alliad Overhead poors, loc., a Minnesota corporation; OF1rIC f 1~.ONICS, Inc., a Minnesota corporation; Cir+rata Cotparaticl'at, a iVlinnesota corporation; Repro Printing, loc., a Minnesota corporation; loo Lonnetnan; Sandra Lonna::an; Ray Lonnerrsan; State of Minnesota; lt~ary Lee Whiting, individually and dba Canine College; Springer, Inc., a Minnesota corporation; Century Lodge #33$, A:F. & A.M. and Richfield Lodge No. 334, Ancient Free and Accepted Masons n/k!a Cataract Lodge No. 2, of St. A.ntsrony, a lvlinnrsotanon-profit corporation; Bloomington I-odge I~o_ 34Q, Ancient :FreC and Accepted Masons, a Minnesota non-profit corporation; Minneapolis Chapter No. 9 R.A.M.; Bl<wmington Chapter No. 30~ 0.1;_S.; Richfield Chapter No. 293 O.E.S.; Sob's Daughters Bethel No. 1; Royalty Court No. 13, Order ofthe Atnaranth; lul-Honor Temple No. 5$,1)aughtrrs of the Nile; City of Richfield; County of HCnnepin; $11 other parries unknown having any right, titlz or interest in the premises herein, together with the satknown ltgirs or devisaes, if any, of the parties that may be deceased, and including unknown spouses, if any, Commissioarrs' Award As To Century Lodge #338, A_F. & A.M. » Minnesota Nun-Profit Corgorrativn and Richfield Ludge Nu. 33A, Ancient Free And A¢cegted ~spt~ ntk/a Cataract Lodge No. ~, ®f St= Aaathntry, A Minnesota Non- grex€;t CQrporatio>a. Respondents. ~ ,. UZ-Z7-01 I Z:14pm from-nGIYIYtUI' 6 ~KAVCIY *o t w~ ~ as i u i-u, a r. i ur a i r-u~u i To THE COURT ABOVE NAMED: The undersigned commissioners, appointed by the Court pursuant to Minnesota Statutes § 1 l 7.075, having qualified according to }avv, having met as directed by the Carder of the Court appointing them as commissioners, having given notice in writing of the time and place of their meetings, having viewed the Property described in the Petition herein, and having schedulad such hearings as were requested by the parties, now, in accordance with the Stipulation Of Award In Condemnation hetween Cataract 1-.odge No. 2 of St. Anthony and the HRA ("Stipulation"), and the DiselainZer Of Interest executed by Bloomington Lodge No_ 340, Ancient Free and Aeeeptad Masons; lvlinneapotis Chapter No. 9 R.A.M.; Bloomington Chapter No. 3U7 O.L.S.; Richfield Chapter No. 293 ~.E.S-; Job's Daughters Bethel No. 1; Royalty Court No. 13, Qrder of the Amaranth; and Jul-Honor Temple No. 58, Daughters of the Nile, hereby make the fallowing award of daFt2ages, including all interest, costs and tees as set foxth in the Stipulation. To• Cataract Lodge No. 2 ............._....---...._............... $ 830,Oi}0 To: All 4thers ....:.......................................................................... $ -©- Dated: Commissioner Dated: Commissioner Dated: Commissioner M?'_'U3»3?S u7 -9- • D2-27-D1 12:tdpm From-KENNEOY & GRAVEN +6123379310 T-078 P.IIl17 f-656 AGREEMENT REGA-R1nING REl-dCAT'iON BENEFITS • THIS AGREENIEI~IT is it~ade as of the i9th day of January, 2001, by and between Century Lodge #338, A.IF. ~r t~.l+~., a Minnesota non-profit corporation (`.Century Lodge"") and Richfield Lodge No. 334, Ancient Free and Accepted Niasorts ~"Rtchfield Lodge"~ n/k/a Cataract Lodge No. 2, of St. Anthony, a li~tittrr~°sota non-profit corporations {.'Cataract Lodge"}, Bloomington Lodge No. 346, Ancient Pree and Accepted Masons, a 1Vlinnesota nnn prof t corporation; Minneapolis Chapter No. 9 lt.A.M.; Bloomington Chapter No. 307 O.L.S.; Richfield Chapter No. 293 O.)/_S.; !ob`s Aaughters Bethel Tao. 1; Royalty Court Alo. 13, Order o€ the Amaranth; lul-Honor Temple No. S8, Asuglners of the Nile {°°Lodge t3ccuparrts"}, on the one hand, and the Housing and Redevelopment Authority of the City of R.ichfieId ("IIRA'"~, on the other. REC ~JHEREI~S, the HRt~ has filed its.Petition in Condemnation and motion for uansfer of titia and possession under Minnesota Siattates Section 1.17.042 io acquire certain property for purposes of a developtrtent project to the Crty 4f R.tel'tfield (..Condemnation"), lItcludtng property owned by Century Lodge and Richfield Lodge which is more fully described in Exhibit A hereto ("Property"}; ~Ep..EAS, by reason of a tarerger between respondents Centetry Lodge and I:tichf eld Lodge Into Cataract Lodge Na- 2 of St. Anth4>ay, ~ Minnesota non-profit corporation {"Cataract Lodge°'}, effective Aecember 1, 1999 and described in Exhibit B hereto, Cataract Lodge is the fee owner of the Property; WHEREAS, Cataract Lodge and the Lodge Occupants are occupants of the Property; ~:~r;.lRg~, Ag, the QA's acquisition of the Property would require Cataract Lodge and thz Lodge Occupants to relocate from the Property; WHEREAS, Cataract Lodge and the Lodge Occupants are represented by counsel who has duly expl~.ined and advised Cataract Lodge and the Lodge Occupants of their rights to relocation benefits, payments or assistance under the Uniform Relocation Act or other Minnesota law; and W~il~REAS, ing l-iRA, on the one hand, and Cataract Lodge and the Lodge Occupants, on the other hand, desire to cor~grotnise and settle all issues between them as to any and all claims for relocation benef:ts, payments or assistance io which Cataract Lodge and. the Lodge Occupants may be entitled under the Uniform Relocation Act nr other Minnesota law. AGREEMEI~PT N04v, TH1~It1~FORIr, for good and valuable consideration, the receipt and sufficiency of which is hereby aclmowledged, the parties hereto do hereby agree as follows: • Uz-zr-lll ~z:iapm rrom-ntnntur b ltKAVC1Y *oacJJ(aslU i-urn r.ILlll r-coo l , llpon full execution of this Agreement and the transfer of title pursuant to the Oourt's order t'ot• condemnation and as provided in the Stipulation of,~.ward Iri Ccndetrttatjon between Elie H~ and Cataract Lome, HRA shall pay to cataract lodge and the i.odge t3ccupa+nts the amount of $70,OUa. 2. cataract I,~dge atsd the Lodge Occupants hereby accept the amount of payment of $7~,Qa~ in furl satisfaction of any claim they nay otherwise have against the HRA for any type of relocation benefits, payments or assistance, 3 cataract L~adge and the I~dge Occupants hereby waive any right to further proceedings or appeal in this matter. III WITNfiSS WHEREOF, this Agreement Regarding Relocation Berieftts has been executed by the parties hereto as follows as Qf the day and Year first above written. Rated: Rousing and R~develuptnent Authority of the City of RisbtSetd ley Its • Subscribed and sworn to before me this day of , 2~1• Notary Public .Dated: Subseribecl aatd sworn to before me this day of Notary Public fatarast I~iac~ge No. 2, of St. ntbopy ~ ~ -- Its ~`~`~ N~,,,,,~ -~~t~ca~~ 20U1. • 02-27-01 12:15vm From-KENNEDY & GRAVEN ~. ~ ~' 1~ Will iw Ulll 4V {~ svs ~. •av lv n~~at~,....1.4-t'~ . ~~~a. ' t y'~ESO?A • +61Z337831U T~078 P. 13/17 F-656 ~loomiugtoa Lodge No. 340, r~ucient Free xad ~ecepted Masons ~' -~ ~` I3y /~ r -.rte, Its '°~ ~ ~ ~ ~~ ~ '~ ;•^;y=i r _/l ~ ,, ~~ ~~~~~" • D2-27-01 12:15pm From-KENNfDY & GRAVEN • Aated- ~~ Subscri d and s~orn to before me this ~s~.aay o ~ ~ ~ 200 Notary b i n~te~: _ ~- ~ ~ ~ 1 _ =.:.,. ooucl.AS ~. c~1~aP13~z1r ~~ ry~jiaFY PvotiC M~rtRka'~Za. ;eel G4m1n ExD,rr_ ~sn 3c•o~ c • Subsezi d and s~o~ >:o before me ii is ~..~y ~f >a:.s ~ .~ 3 2001. Notary li Tls-te[i - ~ - ~'.- ~' -' C.~ 1 ~:+, DOUGLAS _i fjit~~ ~:-F: tb1:s +61Z337B310 Z-078 P. 14/17 F-656 Minneapolis Chapter Na. 9 R.A.M. ay Its • $loomington Cdapter lvo. 307 t~.l;.s. It '' ~ _ RicitYYela C~apier li'a. 2~~ ~.E•S. ...~tsor~ By ..+~ s,, zoos Its to before me "~...ar cs .2001. '~s;~"~ '~5 Y 01-27-01 12:15pm from-KENNEDY & ~RAVEIV +bixasrasiu -ura r.iorir r-ova Dated: t`~ ~ d iv ° ~% ; .iolu's ~a:.ghters BetEte! No. I • _ By ~ o ~~ ~ ~+ } Subscribed and swam to before me this~~`day of /~9~/`cA/, , 2001. ~.~ JUDY A. K~P~ ~R M~ CQMMISSi~N EXPIRES JAN 3t. Z06Fi v Public Dated: J - ~ ~S - ¢ ! Royalty Court No. 13, order of the Amsruatb ~~ ~ ~ ~ ~~~ its ~ J, Subscribed and sworn to before. me t}~~s ZX~ay of w , 2001. • ~ -~ Not ~c Ywted- / ~ ~~ - (~ f 3u!-Honor Tempte No_ 58, Daughters of thr i~i1e °T' ~it~U~LAS J. ~AMf~~~I.L ~~ nbTaRr r~SUC Mv.•.E907A '..t' y CatMl~ Esizr=s :a> » :Otis ~... ~ ~~ Its ~`""'~..`''~ ~~ 311~DL11: - Q1~M ~vS aria - IOUGLAS J. CaA~P~E~ NO TA (i• PUS:.. as Ctrr,~, ~iD+ri ~ >, .. • U"[-Lf-UI 1L:lypm rrom-RtlrneaT 6 4KRVtIY *oltJSinsiu )-uin r.ioi n r-o3o EXHIBIT A • farce] ~ Pd~# 33~fl2$-2~E-34-~~5 Teens .Certificate Nos. 751924 and 751925 and Abstract Address: 76I5 Logan Avenue South, Richfield, lViinnesota. Le aI Descri tion of Pro and Ueseri lion of Talon : . Taking in fee simple absolute. TraFt A, except the South 302 feet thereof, Registered Land Survey ~Iv. S I S, Iient~epin ;r`3Lt::ty, ~in311e~9ta- AND The SUtith I ~~ f~€ ~f thA IvortL- 34.9 feet of the Vilest 5 acres of the Southeast Quarter of the Southwest quarter, Section. 33, T~~nship 28, F.ang@ 24, Hetutepin County, Minnesota. Together with all >`i.ghts in a?ad to any attd alI streets and alleys adjacent thereto, vacated or t+a be vacated, and together with any and all appurtenant easements. • M22U35~'J.3043 6 • • OZ'Z7'01 1Z:16pm PfDm'IStflIYEUT (~ GI{AVEM *CIL~OtilJlu E~XHIRIT B (~EgTIFICATE aF ME~2~ER) -7- • AGENDA ITEM # 4 REPORT # 25 ~' STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING MARCH 5, 2001 • REPORT PREPARED BY: JQHN STARK, COMMUNITY DEVELOPMENT MANAGER NAME, TITLE JOHN STARK, REPORT PRESENTER: COMMUNITY DEVELOPMENT MANAGER NAME, TITLE DEPARTMENT DIRECTOR REVIEW: ~j~ ,~ REVIEWED BY EXECUTIVE DIRECTOR: ©' ITEM FOR HRA CONSIDERATION: Consideration of a license agreement with Walser Sales, Inc., for use by the Buick/Isuzu dealership sites located at, and adjacent to, 2100 W. 78th Street. I. RECOMMENDED ACTION: By Motion: Adopt the attached draft license agreement with Walser Sales, Inc. for use by the Buick/Isuzu dealership sites located at, and adjacent to, 2100 W. 78th Street. __ • II. BACKGROUND On July 17, 2000 the Richfield Housing and Redevelopment Authority (HRA) approved the commencement of condemnation proceedings to acquire properties located at, and adjacent to, 2100 W. 78th Street. After a trial on the public purpose of such actions, the Hennepin County District Court ruled (on January 19, 2001), in favor of the HRA. The HRA has since taken steps to take title to the aforementioned property. As part of the ruling, however, the Walser dealerships were allowed to remain on the property until June 15, 2001. A license agreement, which is similar to a lease agreement, must therefore be executed to define the terms and conditions of the Walser dealership's possession of the property upon the transfer of title to the HRA. 0305walser Among the terms considered in the attached draft license agreement with Walser Sales, tnc. are: • A monthly payment of $40,912.66 to the HRA (the amount of which was determined by the market rent calculations contained in an appraisal of the property); • Tax, utilities and maintenance costs responsibilities allocated to the dealership; and • A termination date of June 15, 2001. The final terms of the license agreement are to be determined based on communications with representatives of Walser Sales, Inc. III. BASIS OF RECOMMENDATION A. POLICY • In accordance with a January 19, 2001 ruling of the Hennepin County District Court, the HRA has taken title to properties located at, or adjacent to, 2100 W. 78th Street. • According to the District Court ruling, the Walser dealerships shall be permitted to remain on site until -June 15, 2001. • A license agreement is necessary to define the terms and conditions of the Walser dealerships possession of the property upon the transfer of title to the HRA. • B. CRITICAL ISSUES • Legal counsel has opined that the license agreement should be approved and executed as soon as possible. C. FINANCIAL • There are no negative financial impacts on the HRA or City of Richfield. D. LEGAL • Legal counsel drafted the attached License Agreement. IV. ALTERNATIVE RECOMMENDATION~S~ • Defer approval until the License Agreement has been executed by representatives of the Walser Sales, Inc. V. ATTACHMENTS • Draft License Agreement with the Walser Sales, Inc. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Mr. Paul Walser and his attorney were advised of this agenda item and may be in attendance. Draft Walser License 2/19/01 LICENSE AGREEMENT THIS AGREEMENT made and entered into as of this day of , 2001, by and between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA, a Minnesota public body .corporate and politic, (hereinafter referred to as "Grantor"), and WALSER AUTO SALES, INC., a Minnesota corporation (hereinafter referred to as "Grantee"). WITNESSETH: BACKGROUND This Agreement has been entered into pursuant to the provisions of the Findings of Fact, Conclusions of Law and Order Appointing. Commissioners dated January 19, 2001 issued in District Court File No. CD-2604. Paragraph 3 of the Conclusions of Law reads as follows: 3. That the HRA has complied with the legal requirements for obtaining title and possession pursuant to Minn: Stat. Section 117.042. (1998) subject to Walsers' .right to remain on the property pursuant to a License (approved by the • Court if the parties cannot agree or other arrangement agreed to by the parties) until 12:00 midnight June 15, 2001. ARTICLE I -GRANT, TERM. 1.1 LICENSED PREMISES. In consideration of the fees, covenants and agreements herein reserved and contained on the part of Grantee to be performed, Grantor does hereby license to Grantee that portion of the land and building located at ,Richfield, Minnesota and located on land legally described in the attached Exhibit A (hereinafter referred to as the "Demised Premises"). 1.2 TERM. The term of this License and Grantee's obligation shall commence as of 2001 and the term of the License shall expire on June 15, 2001, or such earlier date as Grantee may determine by notice to Grantor. At the expiration of the term the Grantee agrees to vacate the Licensed Premises and deliver the same to the Grantor. ARTICLE II -USE OF PREMISES 2.1 GRANTEES USE. During the term of this License, the Licensed Premises shall be used solely for purposes permitted by law; and such uses shall be conducted in accordance with all applicable laws. ARTICLE III -LICENSE FEE 3.1 LICENSE FEE. The license fee for the term of the License shall be computed on the annual rate of $490,952, and shall be payable in advance in monthly installments of $40,912.66; provided, however that the first license fee payment and the last license fee payment will be prorated based on the number of days during such months that the Licensed Premises are Licensed. Except for the first license fee payment which shall be due upon the execution of this License, all license fee payments shall be due on or before the first day of each month. The amount of license fee payable pursuant to this License may not be used as evidence of market rent in any proceeding seeking to determine the market value of the Licensed Premises, or relocation expenses or damages. All License Fee payments will be made to the Grantor, even. though, .prior to the expiration or termination of this Agreement, the Licensed Premises may be conveyed to Best Buy Company, Inc., or its assigns. ARTICLE IV -TAXES 4.1. TAXES. The Grantee shall also be responsible for all real estate taxes .and installments on special assessments which are payable in 2001 prorated for the term of the License. The amount will be paid in the manner described in Section 3.1 above. ARTICLE V -UTILITIES 5.1 CHARGES. Grantee shall pay for all utility services including gas, electricity, domestic water, sewer, and all other utility services. furnished the Grantee for use in the Licensed Premises. • ARTICLE VI - MAINTENANCE AND REPAIRS 6.1 ACCEPTANCE OF PREMISES. The Grantee accepts the Licensed Premises AS IS, and WHERE IS with all faults and defects. Grantee acknowledges that the Grantor shall have no obligation of any nature to maintain, preserve or repair the Licensed Premises. ARTICLE VII -ALTERATIONS 7.1 NOTICE TO GRANTOR. Prior to the initiation of any alterations, Grantee shall give Grantor written notice thereof and specify the work to be performed in reasonable detail and include the names of the contractors and materialmen to be utilized. After receipt of said notice, Grantor shall have a reasonable period of time during which it shall make a determination, in its sole discretion, as to whether or not the proposed work would increase the cost of demolition. Grantee shall provide Grantor upon request with any further information reasonably necessary for such determination by Grantor and Grantee shall not commence work or accept materials prior to receiving written notice of Grantor's determination. If Grantor determines that the proposed work would increase the cost of demolition, then, prior to the commencement of any work, the Grantee shall provide the Grantor with a deposit equal to 120% of the Grantor's estimate of increased demolition costs. The portion, if any of such deposit not required shall be returned to Grantee within 60 days following the completion of demolition. 7.2 ALTERATION NOT TO BE CONSIDERED. The value of any alteration made to the Licensed Premises following the established date of taking shall not be used as i evidence of market value in any proceeding seeking to determine the market value of the Licensed Premises. ARTICLE VIII - DESTRUCTIONAND RESTORATION 8.1 DAMAGED. If a significant portion of the Licensed Premises shall be damaged by any casualty whether insured or uninsured, the Grantor shall have no obligation to repair or rebuild the Licensed Premises. Grantee shall have the option to rebuild or repair or to terminate this License by exercise of notice to Grantor. 8.2 INSURANCE. Grantee shall apply the proceeds of any insurance policy covering damage or destruction of the improvements to reduce the amount of any award made in the Condemnation Action. ARTICLE IX -PUBLIC LIABILITY, INDEMNITY 9.1 GRANTEE'S LIABILITY INSURANCE. Grantee shall during the entire term hereof keep in full force and effect a policy of liability and property damage insurance with respect to the Licensed Premises, and the business operated by Grantee, in which the. limits of liability shall be the same as the Policy limits which Grantee currently carries on the Licensed Premises. 9.2 INDEMNIFICATION. Except for claims arising out of the willful or negligent act of the other party or its representatives, each party shall indemnify and defend the other party against all claims, expenses and" liabilities incurred, including reasonable attorneys' fees, in connection with loss of life, personal injury, or property damage arising out of any occurrence in, upon or at the Licensed Premises, or the occupancy or use thereof by said party, or occasioned wholly or in part by any act or omission of said party, its agents, employees, contractors. This provision shall not be deemed as a waiver of any statutory liability limits available to Grantor. ARTICLE X - ASSIGNMENT AND SUBLETTING 10.1 NO ASSIGNMENT BY GRANTEE. Grantee may not assign this License and/or sublet the Licensed Premises, or any part thereof. 10.2 ASSIGNMENT BY GRANTOR. Grantee acknowledges that Grantor's rights under this Agreement may be assigned to Best Buy Company, Inc. pursuant to the terms of a Redevelopment Contract between Grantor and Best Buy. ARTICLE XI -GRANTEE'S DEFAULT 11.1 EVENTS OF DEFAULT. The following events shall be deemed to be events of default by Grantee under this License: (a) Grantee shall fail to pay when due any payments or other charges provided herein, or any portion thereof and the same shall remain unpaid for a period of ten (10) days after the same has become due; or (b) Grantee shall do or permit to be done anything which creates a lien upon the Licensed Premises; and does not cause said lien to be released within ten (10) days after written notice from Grantor; or (c) Grantee has failed to comply with any other provision of this License and has not cured any failure within thirty (30) days, or such longer period of time as may be reasonably required to cure such default, after Grantor, by written notice, has informed Grantee of such noncompliance. 11.2 GRANTOR'S REMEDIES. Upon the occurrence of any of the above events of default, Grantor may without providing a notice of termination, or without affording Grantee an opportunity to cure (except as to matters for which the right to cure is specifically given in this agreement) apply to the Judge of Hennepin County District Court to whom Court File No. CD-2604 (the "Condemnation Action") is assigned upon three days prior notice for whatever remedy and relief the Court shall deem appropriate. In addition to any other remedies available to Grantor, the Court may order the deduction and off-set of any amounts or claims under this Agreement from any amounts payable Grantee pursuant to the Condemnation Action, or the award of commissioners or any relocation benefits Grantee may be entitled to receive. 11.3 COSTS, EXPENSES AND ATTORNEYS' FEES. If one party is required to seek legal counsel for collection or to commence litigation in order to enforce the covenants and agreements in this License, the party prevailing in such collection, litigation shall have the right to reimbursement from the other party of all reasonable costs, expenses and attorneys' fees. ARTICLEXII -- GRANTOR DEFAULT 12.1 DEFAULT NOTICE TO GRANTOR. Should Grantor default in the performance of any of the covenants on the part of the Grantor to be kept or performed and such default shall continue for thirty (30) days. after written notice to Grantor from Grantee specifying such default, • Grantee shall have the same remedy as is available to the Grantor in section 11.2 above. ARTICLE Xlll -MISCELLANEOUS PROVISIONS 1'3.1 COVENANT OF QUIET ENJOYMENT. Grantee, subject to the terms and provisions of this License, on payment of the license fee and observing, keeping and performing all of the terms and provisions of this License on its part to be observed, kept and performed, shall lawfully, peaceably and quietly have, hold occupy and enjoy the Licensed Premises during the term hereof without hindrance or objection by any persons lawfully claiming under Grantor. 13.2 ACCESS TO PREMISES. Grantee shall allow Grantor and its officers, agents, assigns, contractors and employees access to the Premises during the term of this Agreement -for purposes of inspecting, surveying, testing and any other pre-demolition activities which are deemed necessary to the Grantor for purposes of redevelopment of the Premises. The Grantor will use reasonable efforts not to interrupt or disturb Grantee's business in the course of conducting said activities. 13.3 SURRENDER OF PREMISES. At the expiration or termination of this License, Grantee shall surrender the Licensed Premises in a safe and secure condition,- but may remove therefrom all advertising signs and devices and all other things and property that are not acquired by Grantor in the Condemnation Action. All such items not removed shall forfeit to and be deemed the exclusive property of Grantor. 13.4 LIENS.. Grantee agrees not to suffer or allow any liens to be placed against the Licensed Premises as a result of Grantee's activities during the term of this agreement; including, without limitation any liens for labor or materials provided for any repair, maintenance, modification, alteration or construction of the Licensed Premises. 13.5. LICENSE SUBORDINATE. The provisions of this License are entirely subordinate • to and are superceded and replaced by any contrary or inconsistent decision, order or directive in the Condemnation Action. Without limitation of the foregoing, no provision of this License, shall be deemed to extend the Grantees right to remain on the Licensed Premises beyond the 12:00 midnight on June 15, 2001. 13.6 NO PROPERTY INTEREST. This .instrument is not a lease, creates no landlord- Tenant relationship, and nothing in this Agreement will be deemed to create any property interest other than as expressed in this Agreement. 13.7 GOVERNING LAW. The laws of the State of Minnesota will govern. the validity and interpretation of this Agreement. 13.8 NOTICES. Any notice which is required under this License shall be deemed "given" upon hand delivery or three (3) days after prepaid posting in the U. S. Mail whichever shall first occur. IN WITNESS WHEREOF, the parties hereto have affixed their signatures the day and year first above written. • GRANTOR: HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By: Thomas E. Harms Its: Chair By: Samantha Orduno Its: Executive Director GRANTEE: WALSER AUTO SALES, INC. By: Its: President :7 STATE OF MINNESOTA ss.. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of 2001, by Thomas E Harms, the Chair of the Housing and Redevelopment Authority in and for the City of Richfield, a Minnesota public body corporate and politic, on behalf of the Authority. Notary Public • STATE OF MINNESOTA ss.. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of 2001, by Samantha Orduno, the Executive. Director of the Housing and Redevelopment Authority in and for the -City of Richfield, a Minnesota public body corporate and politic, on behalf of the Authority. Notary Public STATE OF MINNESOTA ss.. COUNTY OF HENNEPIN The foregoing .instrument was acknowledged before me this day of 2001, by ,.the President of Walser Auto Sales, Inc., a corporation under the laws of the State of Minnesota, on behalf of the corporation. Notary Public • • ~- STAFF REPORT AGENDA ITEM # 3 REPORT # 24 HOUSING AND REDEVELOPMENT AUTHORITY MEETING MARCH 5, 2001 REPORT PREPARED BY: REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: NAME, TITLE SIGNATURE LJ REVIEWED BY EXECUTIVE DIRECTOR: JOHN .STARK, COMMUNITY DEVELOPMENT MANAGER NAME, TITLE JOHN STARK COMMUNITY DEVELOPMENT MANAGER r~' ITEM FOR HRA CONSIDERATION: Consideration of a license agreement with Motorwerks, Inc., for use by the BMW dealership site located at, and adjacent to, 2100 W. 78th Street. I. RECOMMENDED ACTION: By Motion: Adopt the attached draft license-agreement with Motorwerks, lnc. for use by the BMW dealership site located at, and adjacent to. 2100 W. 78th Street. • II. BACKGROUND On July 17, 2000 the Richfield Housing and Redevelopment Authority (HRA) approved the commencement of condemnation proceedings to acquire properties located at, and adjacent to, 2100 W. 78th Street. After a trial on the public purpose of such actions, the Hennepin County District Court ruled (on January 19, 2001) in favor of the HRA. The HRA has since taken steps to take title to the aforementioned property. As part of the ruling, however, the Walser dealerships were allowed to remain on the property until June 15, 2001.. A license agreement, which is similar to a lease agreement, must therefore be executed to define the terms and conditions of the Walser dealership's possession of the property upon the transfer of title to the HRA. 0305bmw Among the terms considered in the attached draft license agreement with the BMW dealership are: • A monthly payment of $30,899 to the HRA (the amount of which was determined by the market rent calculations contained in an appraisal of the property); • Tax, utilities and maintenance costs responsibilities allocated to the dealership; and • A termination date of June 15, 2001. The final terms of the license agreement are to be determined based on communications with representatives of Motorwerks, Inc. III. BASIS OF RECOMMENDATION A. POLICY • In accordance with a January 19, 2001 ruling of the Hennepin County District Court, the HRA has taken title to properties located at, or adjacent to, 2100 W. 78th Street. • According to the District Court ruling, the Walser dealerships shall be permitted to remain on site until June 15, 2001. • A license agreement is necessary to define the terms and conditions of the Walser dealerships possession of the property upon the transfer of title to the HRA. B. CRITICAL ISSUES • Legal counsel has opined that the license agreement should be approved and executed as soon as possible. C. FINANCIAL • There are no negative financial impacts on the HRA or City of .Richfield. D. LEGAL • Legal counsel drafted the attached License Agreement. IV. ALTERNATIVE RECOMMENDATION~S~ • Defer approval until the License Agreement has been executed by representatives of the Motorwerks, Inc. V. ATTACHMENTS • Draft License Agreement with the Motorwerks, Inc. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Mr. Paul Walser and his attorney were advised of this agenda item and may . be in attendance. Draft BMW License 2/19/01 LICENSE AGREEMENT THIS AGREEMENT made and entered into as of this day of , 2001, by and between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA, a Minnesota public body corporate and politic, (hereinafter referred to as "Grantor"), and Motorwerks, Inc., a Minnesota corporation (hereinafter referred to as "Grantee"). WITNESSETH: BACKGROUND This Agreement has been entered into pursuant to the provisions of the Findings of Fact, Conclusions of Law and Order Appointing Commissioners dated January 19, 2001 issued in District Court File No. CD-2604. Pazagraph 3 of the Conclusions of Law reads as follows: 3. That the HRA has complied with. the legal requirements for obtaining title and possession pursuant to Minn. Stat. Section 117.042 (1998) subject to Walser's right to remain on the property pursuant to a License (approved by the Court if the parties cannot agree or other arrangement agreed to by the parties) until 12:00 midnight June 15, 2001. ARTICLE I -GRANT, TERM. 1.1 LICENSED PREMISES. In consideration of the fees, covenants and agreements herein reserved and contained on the part of Grantee to be performed, Grantor does hereby license to Grantee that portion of the land and building located at ,Richfield, Minnesota and located on land legally described in the attached Exhibit. A (hereinafter referred to as the "Demised Premises"). 1.2 TERM. The term of this License and Grantee's obligation shall commence as of 2001 and the term of the License shall expire on June 15, 2001, or such eazlier date as Grantee may determine by notice to Grantor. At the expiration of the term the Grantee agrees to vacate the Licensed Premises and deliver the same to the Grantor. ARTICLE li-USE OFPREMISES 2.1 GRANTEE'S USE. During the term of this License, the Licensed Premises shall be used solely for purposes permitted by law; and such uses shall be conducted in accordance with all applicable laws. r~ ARTICLE III -LICENSE FEE • 3.1 LICENSE FEE. The license fee for the term of the License shall be computed on the annual rate of $370,788, and shall be payable in advance in monthly installments of $30,899; provided, however that the first license fee payment and the last license fee payment will be prorated based on the number of days during such months .that the Licensed Premises are Licensed. Except for the first license fee payment which shall be due upon the execution of this License, all license fee payments shall be due on or before the first day of each month. The amount of license fee payable pursuant to this License may not be used as evidence of market rent in any proceeding seeking to determine the market value of the Licensed Premises, or relocation expenses or damages. All License Fee payments will be made to the Grantor, even though, prior to the expiration or termination of this Agreement, the Licensed Premises may be conveyed to Best Buy Company, Inc., or its assigns. ARTICLE IV -TAXES 4.1. TAXES. The Grantee shall also be responsible for all real estate taxes and installments on special assessments which are payable in 2001 prorated for the term of the License. The amount will be paid in the manner described in Section 3.1 above. ARTICLE V -UTILITIES 5.1 CHARGES. Grantee shall pay for all utility services including gas, electricity, domestic water, sewer, and all other utility services furnished the Grantee for use in the Licensed Premises. ARTICLE VI - MAINTENANCEAND REPAIRS 6.1 ACCEPTANCE OF PREMISES. The Grantee accepts the Licensed Premises AS LS, and WHERE IS with all faults and defects. Grantee acknowledges that the Grantor shall have no obligation of any nature to maintain, preserve or repair the Licensed Premises. ARTICLE VII -ALTERATIONS 7.1 NOTICE TO GRANTOR. Prior to the initiation of any alterations, Grantee .shall give Grantor written notice thereof and specify the work to be performed in reasonable detail and include the names of the contractors and materialmen to be utilized. After receipt of said notice, Grantor shall have a reasonable period of time during which it shall make a determination, in its sole discretion, as to whether or not the proposed work would increase the cost of demolition. Grantee shall provide Grantor upon request -with any further information reasonably necessary for such determination by Grantor and Grantee shall not commence work or accept .materials prior to receiving written notice of Grantor's determination. If Grantor determines that the proposed work would increase the cost of demolition, then, prior to the commencement of any work, the Grantee shall provide the Grantor with a deposit equal to 120% of the Grantor's estimate of increased demolition costs. The portion, if any of such deposit not required shall be returned to Grantee within 60 days following the completion of demolition. 7.2 ALTERATION NOT TO BE CONSIDERED. The value of any alteration made to the Licensed Premises following the established date of taking shall not be used as evidence of market value in any proceeding seeking to determine the market value of the Licensed Premises. . ARTICLE VIII - DESTRUCTIONAND RESTORATION 8.1 DAMAGED. If a significant portion of the Licensed Premises shall be damaged by any casualty whether insured or uninsured, the Grantor shall have no obligation to repair or rebuild the Licensed Premises. Grantee shall have the option. to rebuild or repair or to terminate this License by exercise of notice to Grantor. 8.2 INSURANCE. Grantee shall apply the proceeds of any insurance policy covering damage or destruction of the improvements to reduce the amount of any award made in the Condemnation Action. ARTICLE IX - PUBLIC LLABILITY, INDEMNITY 9.1 GRANTEE'S LIABILITY INSURANCE. Grantee shall during the entire term hereof keep in-full force and effect a policy of liability and property damage insurance with respect to the Licensed Premises, and the business operated by Grantee, in which the limits of liability shall be the same as the Policy limits which Grantee currently carries. on the Licensed Premises. 9.2 INDEMNIFICATION. Except for claims arising- out of the willful or negligent act of the other party or its representatives, each party shall indemnify and defend the other party against all claims, expenses and liabilities incurred, including reasonable. attorneys' fees, in connection with loss of life, personal injury, or property damage arising out of any occurrence in, • upon or at the Licensed Premises, or the occupancy or use thereof by said party, or occasioned wholly or in part by any act or omission of said party, its agents, employees, contractors. This provision shall not be deemed as a waiver of any statutory liability limits available to Grantor. ARTICLE X - ASSIGNMENT AND SUBLETTING 10.1 NO ASSIGNMENT BY GRANTEE.- Grantee may not assign this License and/or sublet the Licensed Premises, or any part thereof. 10.2 ASSIGNMENT BY GRANTOR. Grantee acknowledges .that Grantor's rights under this Agreement may be assigned to Best Buy Company, Inc. pursuant to the terms of a Redevelopment Contract between Grantor and Best Buy. ARTICLE XI -GRANTEE'S DEFAULT 11.1 EVENTS OF DEFAULT. The following events shall be deemed to be events of default by Grantee under this License: (a) Grantee shall fail to pay when due any payments or other charges provided herein, or any portion thereof and the same shall remain unpaid for a period of ten (10) days after the same has become due; or (b) Grantee shall do or permit to be done anything which creates a lien upon the • Licensed Premises; and does not cause said lien to be released within ten (10) days after written notice from Grantor; or (c) Grantee has failed to comply with any other provision of this License and has • not cured any failure within thirty (30) days, or such longer period of time as may be reasonably required to cure such default, after Grantor, by written notice, has informed Grantee of such noncompliance. 11.2 GRANTOR'S REMEDIES.. Upon the occurrence of any of the above events of default, Grantor may without providing a notice of termination, or without affording Grantee an opportunity to cure (except as to matters for which the right to cure is specifically given in this agreement) apply to the Judge of Hennepin County District Court to whom Court File No. CD-2604 (the "Condemnation Action") is assigned upon three days prior notice for whatever remedy and relief the Court shall deem appropriate. In addition to any other remedies available to Grantor, the Court may order the deduction and off-set of any amounts or claims. under this Agreement from. any amounts payable Grantee pursuant to the Condemnation Action, or the award of commissioners or any relocation benefits Grantee may be entitled to receive. 11.3 COSTS, EXPENSES AND ATTORNEYS' FEES. If one party is required to seek legal counsel for collection or to commence litigation in order to enforce the covenants and agreements in this License, the party prevailing in such collection, litigation shall have the right to reimbursement from the other party of all reasonable costs, expenses and attorneys' fees. ARTICLEXII -- GRANTOR DEFAULT 12.1 DEFAULT NOTICE TO GRANTOR. Should Grantor default in the performance • of any of the covenants on the part of the Grantor to be kept or performed and such default shall continue for thirty (30) days after written notice to Grantor from Grantee specifying such default, Grantee shall have the same remedy as is available to the Grantor in section 11.2 above. ARTICLE XIII -MISCELLANEOUS PROVISIONS 13.1 COVENANT OF QUIET ENJOYMENT. .Grantee, subject to the terms and provisions of this License, on payment of the license fee and observing, keeping and performing all of the terms and provisions of this License on its part to be observed, kept and performed, shall lawfully, peaceably and quietly have, hold occupy and enjoy the Licensed Premises during the term hereof without hindrance or objection by any persons lawfully claiming under Grantor. 13.2 ACCESS TO PREMISES. Grantee shall allow Grantor and its officers, agents, assigns, contractors and employees access to the Premises during the term of this Agreement for purposes of inspecting, surveying, testing and any other pre-demolition activities which are deemed necessary to the Grantor for purposes of redevelopment of the Premises. The Grantor will use reasonable efforts not to interrupt or disturb Grantee's business in the course of conducting said activities. 13.3 SURRENDER OF PREMISES. At the expiration or termination of this License, Grantee shall surrender the Licensed Premises in a safe and secure condition, but may remove therefrom all advertising signs and devices and all other things and property that are not acquired by • Grantor in the Condemnation Action. All such items not removed shall forfeit to and be deemed the exclusive property of Grantor. 13.4 LIENS. Grantee agrees not to suffer or allow any liens to be placed against the Licensed Premises as a result of Grantee's activities during the term of this agreement; including, without limitation any liens for labor or materials provided for any repair, maintenance, • modification, alteration or construction of the Licensed Premises. 13.5 LICENSE SUBORDINATE. The provisions of this License are entirely subordinate to and are superseded and replaced by any contrary or inconsistent decision, order or directive in the Condemnation Action. Without limitation of the foregoing, no provision of this License, shall be deemed to extend the Grantees right to remain on the Licensed Premises beyond the 12:00 midnight on June 15, 2001. 13.6 NO PROPERTY INTEREST. This instrument is not a lease, creates no landlord- Tenant relationship, and nothing in this Agreement will be deemed to create any property interest other than as expressed in this Agreement. 13.7 GOVERNING LAW. The laws of the State of Minnesota will govern the validity and interpretation of this Agreement. 13.8 NOTICES. Any notice which is required under this License shall be deemed "given" upon hand delivery or three (3) days after prepaid posting in the U. S. Mail whichever shall first occur. IN WITNESS WHEREOF, the parties hereto have affixed their signatures the day and year first above written. • C, GRANTOR: HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By: Thomas E. Harms Its: Chair By: Samantha Orduno Its: Executive Director GRANTEE: MOTORWERKS, INC. By: Its: President • STATE OF MINNESOTA ss.. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of 2001, by Thomas E Harms, the Chair of the Housing and Redevelopment Authority in and for the City of Richfield, a Minnesota public body corporate and politic, on behalf of the Authority. Notary Public • • STATE OF MINNESOTA ss.. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of 2001, by Samantha Orduno, the Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, a Minnesota public body corporate and politic, on behalf of the Authority. Notary Public STATE OF MINNESOTA ss.. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of 2001, by ,the President of Motorwerks, Inc., a corporation under the laws of the State of Minnesota, on behalf of the corporation. • Notary Public • ~~ L J • • AGENDA ITEM # 2 REPORT # 23 STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING MARCH 5, 2001 JOxN STARK, REPORT PREPARED BY: COMMUNITY DEVELOPMENT MANAGER NAMG, TITLE JOHN STARK, REPORT PRESENTER: COMMUNITY DEVELOPMENT MANAGER NAME, TITLE DEPARTMENT DIRECTOR REVIEW: ~~ REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Conduct a public hearing and consider the attached resolution for the sale of real property.. I. RECOMMENDED ACTION: By Motion: Conduct and close a public hearing and approve the attached Resolution Authorizing the Sale of Real Property at 2024, 2026, 2022, 2020 and 2016 - 78th Street West; 2100 - 78th Street West; 7701 Newton Avenue South; 2000 - 78th Street West; 7701 Penn Avenue South; 7745 Penn Avenue South, and; part of 78th Street, between Penn and Morgan Avenues contingent upon Planning Commission finding of consistency. II. BACKGROUND On March 20, 2000, the Richfield Housing and Redevelopment Authority (HRA) adopted, and entered into a Contract for Private Development (Contract) with Best Buy for the redevelopment of the Interchange West area. The Contract contemplates the private acquisition of properties by Best Buy wherever possible. Section 3.2 of the Contract, however, allows Best Buy to request that properties be acquired through condemnation. The Contract stipulates that this request can come only after Best Buy has taken reasonable steps to acquire property for which the request is being made. 0305transfer On July 17, 2000, Best Buy made a request that certain properties be acquired through condemnation because a negotiated purchase agreement could not be • made. Among the properties contained in this request were the following parcels of land: Parcel 1: 2016-2026 78th Street West Parcel 2: 2100 78th Street West Parcel 3: 7701 Newton Avenue South Parcel 4: 2000 78th Street West Parcel 5: 7701 Penn Avenue South Parcel 6: 7745 Penn Avenue South Parcel 7: Part of 78th Street West After consideration in hearings held in the Hennepin County District Court, Judge Gary Larson awarded the condemnation to the Richfield HRA on January 19, 2001. In a revised Findings of Fact, issued on February 6, 2001, Judge Larson approved the appraisal amount of the properties at $9,450,228 and the earliest-date for deposit of funds with the courts and transfer of title as February 1, 2001. On February 13, 2001, the Richfield HRA deposited $9,450,228 with the courts and title was subsequently transferred to the HRA within five days of that deposit. Best Buy has provided the HRA with funding in the equal amount of $9,450,228 as their fulfillment of terms contained in the Contract for Private for contributions of funds for condemnation. • While the court decision set the appraised amount for the initial deposit required to gain title to the property, the final valuation of the property will be determined by a group of three Condemnation Commissioners appointed by Judge Larson. Best Buy is contractually obligated to pay the amount of the final value set by the Condemnation Commissioners III. BASIS OF RECOMMENDA'T'ION A. POLICY • On March 20, 2000 the HRA entered into a Contract for Private Development with Best Buy Co., Inc. for the redevelopment of the Interchange West area. • In accordance with the terms of the contract, on September 18, 2000 Besfi Buy requested and was granted the HRA's acquisition of certain properties through eminent domain. This request included properties located at: 2016-2026 78th Street West; 2100 78th Street West; 7701 Newton Avenue South; 2000 78th Street West; 7701 Penn Avenue South; and 7745 Penn Avenue South. • In Findings of Fact issued on January 19, 2001 and amended on • February 6, 2001, the Hennepin County District Court ruled in favor of the HRA and made a determination of the amount of money to be deposited, and the date by which that deposit could be made, to take title to the property. • The. HRA deposited funds for the purchase of the property on • February 13, 2001 and title to the property was transferred to the HRA on, or before, February 16, 2001. • Best Buy, in accordance with the Contract, has provided the HRA with funding for the aforementioned deposit. B. CRITICAL ISSUES • The Richfield Planning Commission must make a finding of . consistency with the comp plan for the sale of the affected properties before the sale can become effective. C. FINANCIAL • In accordance with the terms of the Contract for Private Development, Best Buy is responsible for all condemnation and relocation costs incurred in the Interchange West area. D. LEGAL • Legal counsel has reviewed the attached resolution. IV. ALTERNATIVE RECOMMENDATION(S~ • Defer action on this item until after the Planning Commission has made a i consideration of the consistency with the Comprehensive Plan. However, approval by the HRA subjectto a Planning Commission finding has been utilized in previous transactions. V. ATTACHMENTS • A Resolution Authorizing the Sale of Real Property at 2024, 2026, 2022, 2020 and 2016 - 78th Street West; 2100 - 78th Street West; 7701 Newton Avenue South; 2000 -78th Street West; 7701 Penn Avenue South; 7745 Penn Avenue South, and part of 78th Street, between Penn and Morgan Avenues. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • HRA legal counsel • HRA RESOLUTION NOo RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY AT 2024, 2026, 2022, 2020 AND 2016 - 78TH STREET WEST; 2100 - 78TH STREET WEST; 7701 NEWTON AVENUE SOUTH; 2000 - 78TH STREET WEST; 7701 PENN AVENUE SOUTH; 7745 PENN AVENUE SOUTH; AND PART OF 78TH STREET, BETWEEN PENN AND MORGAN AVENUES WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield (HRA) has acquired property at 2024, 2026, 2022, 2020 and 2016 - 78th Street West; 2100 - 78th Street West; 7701 Newton Avenue .South; 2000 - 78th Street West; 7701 Penn Avenue South; 7745 Penn Avenue South; and Part of 78th Street, between Penn and Morgan Avenues; legally described in Exhibit A; WHEREAS, the HRA has identified the Best Buy Co., Inc. as a buyer of the property; and WHEREAS, Best Buy Co., Inc. has agreed to purchase the property from the HRA in accordance with the terms of the Contract for Private Redevelopment by and between the HRA. and Best Buy Co., Inc:, dated March 20, 2000; the First Amendment to Contract for Private Redevelopment dated November 27, 2000; and the Second Amendment to • Contract for Private Redevelopment, dated February 20, 2001; and WHEREAS, the HRA is authorized to sell real property within it's area of operation after a public hearing; WHEREAS, the public hearing has been held after proper notice; and WHEREAS, the Planning Commission of the City of Richfield is required to determine that the disposition, of the property for project purposes is consistent with the Comprehensive Plan. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as follows: 1. A public hearing has been held on the sale of real property described above. 2. The sale of property to Best Buy Co., Inc. in accordance with the terms of the (a.) Contract for Private Redevelopment by and between the HRA and Best Buy Co., Inc., dated March 20, 2000, (b.) First Amendment to Contract for Private Redevelopment dated November 27, .2000, and (c.) Second Amendment to Contract for Private Redevelopment, dated February 20, 2001, is hereby .approved, contingent upon the Richfield Planning Commission adopting a resolution finding the sale of the property to be consistent with the • Comprehensive Plan. 3. The Chairperson and Executive Director are authorized to execute any and all documents and agreements necessary to implement this resolution. Adopted by the Housing and Redevelopment Authority in and for the City of • Richfield, Minnesota this. 5th day of March, 2001. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary U • EXHIBIT A • Parcel 1: Tracts A, B and D, except the North and South lines thereof; Hennepin County, Minnesota. Parcel 2: Tract A: West 30 feet of said tracts, as measured along the Tracts E, F and G, Registered Land Survey No. 800, All of Tract C and the West 30 feet of Tracts A, B and D as measured along. the North and South lines thereof, Registered Land Survey No. 800, Hennepin County, Minnesota. Parcel 2: Tract B: The West 141.38 feet of the East 235.63 feet, as measured at right angles to the East line thereof, of: that part of the following described tract of land -lying South of the North 200 feet thereof and North of the North right-of-way line of Interstate Highway No. 494. That part of the Southwest Quarter of the Southwest Quarter of Section 33, Township 28, Range 24, Hennepin County, Minnesota described as follows: Commencing on the South line of said Southwest Quarter of the Southwest Quarter at a point 328 feet East from the Southwest .corner of said Section; thence Northerly to the Southwest corner of McHardy's Addition; thence Easterly to the Southeast corner of McHardy's Addition; thence Southerly to a point in the South line of said Section 33, distant 656 feet East from the Southwest corner of said Section 33; thence West 328 feet to the point of beginning. Parcel 2: Tract C: The East 94.25 feet, as measured at right angles to the East line thereof, of: that part of the following described tract of land lying South of the North 200 feet thereof and North of the North right- of-way-line of Interstate Highway No. 494. That part of the Southwest Quarter of the Southwest Quarter of Section 33, Township 28, Range 24, Hennepin County, Minnesota described as follows: Commencing on the South line of said Southwest Quarter of-the Southwest Quarter at a point 328 feet East from the Southwest corner of said Section; thence Northerly to the Southwest corner of McHardy's Addition; thence Easterly to the Southeast corner of McHardy's Addition; thence Southerly to a point in the South line of said Section 33, distant 656 feet East from the Southwest corner of said Section 33; thence West 328 feet to the point of beginning. Parcel 2: Tract D: That part of the following described property lying West of the East 235.63 feet thereof as measured at right angles to the East line thereof: that part of the following • described tract of land lying South of the North 200 feet thereof and North of the North. right-of-way line of Interstate Highway No. 494. That part. of the Southwest Quarter of the- Southwest Quarter of Section 33, Township 28, Range 24, Hennepin County, Minnesota, described as follows: Commencing on the South line of said Southwest Quarter of the Southwest Quarter at a point 328 feet East from the Southwest corner of said Section; thence Northerly to the Southwest corner of McHardy's Addition; • thence Easterly to the Southeast corner of McHardy's Addition; thence Southerly to a point in the South line of said Section 33, distant 656 feet East from Southwest corner of said Section 33; thence West 328 feet to the point of beginning. Parcel 3: The North 166 feet of the East 59 feet of the South half of the following described premises: Beginning at a point 656 feet East of the Southwest corner of Section 33, Township 28 North, Range 24 West of the 4t" Principal Meridian; thence running North a distance of 1312.96. feet; thence East a distance of 163.8 .feet; thence South a distance of 1312.77 feet; thence West a distance of 164 feet to the point of beginning. Parcel 4: That part of the Southwest Quarter of the Southwest Quarter of Section 33, Township 28 North, Range 24 West of the 4t" Principal Meridian described as follows: Commencing at a point 820 feet East of the Southwest corner of said Section 33; thence North a distance of 656.28 feet; thence East a distance of 163 feet; thence South a distance of 656.28 feet; thence West a distance of 164 feet to the point of beginning,. according to the United States Government Survey thereof and situate in Hennepin County, Minnesota. • Parcel 5: The South one half of the following described tract of land: That part of the Southwest Quarter of the Southwest Quarter (SW 1/4. of SW 1/4) of Section Thirty-three (33), Township Twenty eight (28), Range Twenty four (24), described as follows: Commencing at the Southwest corner of said Section 33; thence North 1313.33 feet; thence East 327.60 feet; thence South 1313.33 feet; thence West 328 feet to the point of beginning, excepting however, that part thereof taken for State Highway No. 100, also known as Interstate. Highway No. 494, and. also excepting all other public streets and highways; except all that part of the following described tract; that part of the Southwest Quarter of the Southwest Quarter of Section 33, Township 28 North, Range 24 West, described as follows: Beginning at the point of intersection of a line 33 feet -East of and parallel with the West line of said Section and the Northeasterly right of way line of Trunk Highway No. 494 as defined by Document No. 3419310; thence North along the parallel line a distance of 175 feet; thence East at a right angle a distance of 164 feet; thence South at a right angle a distance of 232.80 feet, more or less, to a point on the Northeasterly right of way line of Trunk Highway No. 494; thence Northwesterly along the • North right of way line of Trunk highway No. 494 a distance of 173.89 feet, more or less, to the point of beginning, according to the United States Government Survey thereof and situate in Hennepin County, Minnesota which lies ,Northerly, Northeasterly and Easterly of the • following described Line A: From a point on the west line of said Section 33, distant 535.26 feet north of the southwest corner thereof; thence run easterly at an angle of 88 degrees 30 minutes with said west section line (measured from north to east) for 33.01 feet to the .point of beginning of the line to be described; thence continue easterly on the last above described course for 117.43 feet; thence deflect to the right on a curve having a radius of 62 feet (delta angle 91 degrees 30 minutes). for 99.01 feet; thence on tangent to said curve for 210 feet and there terminating and which lies Northeasterly of the following described Line B: Beginning at a point on a line run parallel with and 33 feet easterly from the west line of said Section 33, distant 31.37 feet northerly of its intersection with the above described Line A; thence run southeasterly to a point on the above described Line A distant 31.37 feet easterly of said intersection and there terminating. All according to the United States Government Survey thereof, and situate in . Hennepin County, Minnesota. Parcel 6: Tract A: All that part of the following described tract; that part of the Southwest Quarter of the Southwest Quarter of Section 33, Township 28 North, Range 24 West, described as follows: Beginning at the point of intersection of a line 33 feet East of and parallel with the west line of said Section and the northeasterly right of way line of Trunk Highway No. 494 as defined by Document No. 3419310; thence North along the parallel line a distance of 175 feet; thence East at a right angle a distance of 164 feet; thence South at a right angle a distance of 232.80 feet, more or less, to a point on the northeasterly right of way line of Trunk Highway No. 494; thence northwesterly along the North- right of way line of Trunk Highway No. 494 a distance of 173.89 feet, more, or less, to the point of beginning according to the United States Government Survey thereof and situate in Hennepin County, Minnesota which lies southerly, southwesterly, and westerly of the following described Line A: Beginning at the southwest corner of said Section 33; • thence northerly along the west line of said Section 33 a distance of 501.24 feet, to the point of beginning of the line to be described; thence easterly deflecting to the right at an angle of 88 degrees, 30 minutes, a distance of 125.65 feet; thence southeasterly along the .tangential • curve, concave to the southwest, radius 53 feet, delta angle 91 degrees, 30 minutes, a distance of 84.64 feet; thence southerly along the tangent of said curve a distance. of 180 feet, more or less, to the northeasterly right of way line of said Trunk Highway No. 494 as defined by Document No. 3419310 and there terminating; and which lies southeasterly of the following described line B: Beginning at a point on a line drawn parallel with and 33 feet easterly from the west line of said Section 33 distant 30 feet southerly from the point of intersection of said parallel line with Line A; thence northeasterly to a point on Line A distant 30 feet easterly from the point of intersection of said parallel line and Line A. All according to the United States Government Survey thereof, and situate in Hennepin County, Minnesota. Parcel 6: Tract B: • That part of the Southwest Quarter of the Southwest Quarter. of Section 33, Township 28 North, Range 24 West, Hennepin County,. Minnesota, described as follows: Beginning at the point of intersection of Line 1 described below. with a line run parallel with and distant 60 feet east of the west line of said Section 33; thence run south on said 60 foot parallel line for 80 feet; thence run southeasterly to the point of intersection of a line run parallel with and distant 180 feet northerly of Line 2 described below, with. Line 3 described below; thence run northerly on said Line 3 to its intersection with said Line 1; thence run northwesterly on said Line 1 to the point of beginning. Line 1: Beginning at a point on a line run parallel with and distant 656 feet east of the west line of said Section 33, distant 120 feet north of the south line of said Section 33; thence .run northwesterly to a point on the west line of said Section 33, distant 355 feet north of the southwest corner thereof and terminating. • Line 2: • From a point on the southwest corner of said Section 33, run easterly at an angle of 89 degrees 46 minutes 00 seconds from the west line of said Section 33 (measured from north to east) for 1359.14 feet to the point of beginning of Line 2 to be described; thence run westerly on the last described course for 89.23 .feet; thence deflect to the right on a 00 degree 30 minute 00 second curve (delta angle 04 degrees 39 minutes 00 seconds) for 930 feet; thence on tangent to said curve for 77.19 feet; thence deflect. to the left on a 01 degree 00 minute 00 second curve (delta angle 07 degrees 31 minutes 48 seconds) for 753 feet and there terminating. Line 3: Beginning at a point on the west line of said Section 33, distant 501.24 feet north of the southwest corner thereof; thence run easterly at an angle of 91 degrees 30 minutes- 00 seconds from said west section line (measured from south to .east) for 125.65 feet; thence deflect to the right on a curve having a radius of 53 feet (delta angle 91 degrees 30 minutes 00 seconds) for 84.64 feet; thence on tangent to said curve to an intersection-with Line 1 described above; thence run southerly to a point distant 165 feet northerly (measured at right angles) to a point • on Line 2 described above distant 656.32 feet easterly of its point of termination and there terminating. Parcel 7: Tract A: That part of the Southwest Quarter of the Southwest Quarter of Section 33, Township 28, Range 24, Hennepin County, Minnesota, described as follows: Commencing at the Southwest corner of said Southwest Quarter of the Southwest Quarter of Section 33; thence Easterly along the South line of said Southwest Quarter of the Southwest Quarter of Section 33 a distance of 656.00 feet, more or less, to the West line of Registered Land Survey No. 800, files of the Registrar of Titles, County of Hennepin; thence Northerly along said West line of Registered Land Survey No. 800 a distance of 108.00 feet to the actual point of beginning of the easement to be described; thence continuing Northerly along said West line of Registered Land Survey No. 800 a distance of 12.00 feet, more or less, to the Northeasterly right of way line of Trunk Highway No. 494, as defined by Doc. No. 3419310; thence on an assumed bearing of N70°30'28"W along said Northeasterly right of way line a distance of 118.94 .feet; thence S17°41'59"West a distance of 10.54 feet; thence S27°18'01"E a distance of 28.28 feet; thence S72°18'01"E a • distance of 8.50 feet; thence S78°44'02"E a distance of 46.48 feet; thence S84°18'32"E a distance of 48.93 feet, more or less, to the actual point of beginning. Tract A contains 2,673 square feet or .061 acres. • Parcel 7: Tract B: That part of the Southwest Quarter of the Southwest Quarter of Section 33, , Township 28, Range 24, Hennepin County, Minnesota, described as follows:. Commencing at the Southwest corner of said Southwest Quarter of the Southwest Quarter of Section 33; thence Easterly along the South line of said Southwest Quarter of the Southwest Quarter of Section 33 a distance of 656.00 feet, more or less, to the West line of Registered Land Survey No. 800, files of the Registrar of Titles, County of Hennepin; thence Northerly along said West line of Registered Land Survey No. 800 a distance of 120.00 feet, more or less, to the Northeasterly right of way line of Trunk Highway No. 494, as defined by Doc. No. 3419310; thence on an assumed bearing of N70°30'28" W along said Northeasterly right of way line a distance of 148.96 feet to the actual point of beginning of the easement to be described; thence continuing N70°30'28"W along said Northeasterly right of way line a distance of 299.08 feet; thence S26°29'40"E a distance of 35.56 feet; thence S67°09'46"E a distance of 171.25 feet; thence S72°18'01"E a distance of 83.58 feet; thence N62°41'59"E a distance of 28.28 feet; thence N • 17°41'59" E a distance of 11.48 feet, more or less to the actual point of beginning. Parcel B contains 8603 square feet or 0.197 acres. Together with all rights in and to any and all streets and alleys adjacent thereto, vacated or to be vacated, and together with any and all- appurtenant easements. •