CR2002-104 Conveyance of City Property
CITY OF
-
. June 11, 2002 HOPKINS Council Report 2002-104
CONVEYANCE OF CITY PROPERTY
Proposed Action
Staff recommends approval of the following motion: adopt Resolution 2002-58, approving re-
conveyance of City-owned property to the state of Minnesota and re-purchase of said City
property .
Overview
The subject property is located within the Marketplace Lofts project area. The southerly two feet
of Lot 7 was tax-forfeited property that was deeded to the City in 1979. As part of the
conveyance, there was a restriction that the property be used only for public parking and, should
this use discontinue, it would be returned to the state.
Jerry Steiner has been talking to representatives at the state who have said that the only way to
have this restriction removed is to convey the property back to the state and then have the state
subsequently re-sell it to the City. Mr. Steiner has discussed a re-purchase price of $100 to $500.
. Once the property is re-acquired, it would then be deeded to Cornerstone, per the development
agreement. As the two-foot strip is not located in an area where the building will be constructed,
this process should not create any problem with the Marketplace Lofts schedule.
Supportine: Documents
. Resolution 2002-58
. Memo from Jerry Steiner
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Jim- Keuig;;m '-/
Plarming & Economic Development Director
Financial Impact: $100-$500 N/A _ Budgeted: Y/N ~ Source: ED Fund
. Related Documents (CIP, ERP, etc.):
Notes:
. MILLER, STEINER & CURTISS, P.A.
ATTORNEYS AT LA W
400 WELLS FARGO BANK BUILDING
101 I FIRST STREET SOUTH
HOPKINS, MN 55343
JERRE A. MILLER
JEREMY S. STEINER *
WYNN CURTISS (952) 938-7635
KIRSTEN A. HOLSETH FAX (952) 938-7670
*Real Property Law SpecialisL certitlcd
by the M mnesota State Bar Association
Writer's Direct Dial No. 952-938-6219
MEMORANDUM
To: Jim Kerrigan
From: Jerry Steiner f~S
Re: City of Hopkins
Lot 1 00 Redevelopment
Southerly 2 feet of Lot 7, Block 3, West Minneapolis
. Date: June 7, 2002
The purpose of this memo is to outline tht: status of the title to the Southerly 2 feet of Lot 7, Block 3,
West Minneapolis, which is part of City Lot 100. As you and I discussed, the City will transfer
ownership of this parcel 10 the HRA in order to facilitate the Marketplace Lofts Development
project. This particular piece of Torrens property was transferred to the City of Hopkins by the State
by a Conveyance of Forfeited Land on July 2,1979. A copy afthat document is attached. At the
time of the transfer, the State restricted the use of the parcel for public parking with a right of
reverter back to the State if that use is discontinued.
My associate Kirsten Halseth and I have had numerous conversations with representatives in the
Hennepin County Examiner of Title ' s Office and the Hennepin County Tax Forfeited Land Division
regarding their requirements for removing the public parking restriction and reversion to the State.
From these conversations, it is clear, in order to extinguish the State's right of reverter to the
property, the property must be conveyed to the State ofMitlllesota and repurchased by the City. Rory
Lucas and Marilyn Bell, two representatives from the Tax Forfeited Land Division have indicated
the City may purchase the property back from the State for a nominal price between $100 and $500.
I have sent a written ofter which Mr. Lucas agreed to review and respond promptly to regarding an
acceptance or counteroffer by the State in light of the deadline we are working against. A copy of
this letter is enclosed.
.
C:h AH\hopkins.civil\lot] 00. hcrriganlllcmo
. In order to complete this process, the City Council needs to do the following:
1. Approve the reconveyance of the property to the State of Minnesota
2. Approve the reacquisition price for the property.
3. Approve the repurchase of the property from the State of Minnesota for the approved
reacquisition price.
4. Authorize and direct the Mayor and City Clerk to sign the Reconveyance Deed to begin the
process.
I have enclosed a draft of the proposed City Council's Resolution for you, In this Council
Resolution, we have specified the reacquisition price will not exceed $500. Please call me with any
questions.
.
.
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. MILLER, STEINER & CURTISS, P.A.
A TIORNEYS AT LAW
400 WELLS FARGO BANK BUILDING
lOll FIRST STREET SOUTH
HOPKINS, MN 55343
JERRE A. MILLER
JEREMY S. STEINER.
WYNN CURTISS (952) 938-7635
KIRSTEN A. HOLSETH FAX (952) 938-7670
· Real Property Lalli Specialist, alrtified
by the Minnesota Stale Bar As,oeiation
June 6, 2002
Mr. Rory Lucas
Property Coordinator
Tax Forfeited Real Estate Management
A-600 Government Center
300 South Sixth Street
Minneapolis, MN 55487-0060
Re: Southerly 2 feet of Lot 7, Block 3, West Minneapolis
. Dear Mr. Lucas:
Per our telephone conversation, I am sending this letter to begin the process of reconveying the above
referenced property back to the State so the City of Hopkins may repurchase it, to facilitate a
redevelopment project already approved by the City Counsel. As we discussed, this proeprty was
conveyed to the City by a Conveyance of Forfeited Lands that contained a reversion of title to the
State of Minnesota if the property is no longer used for public parking purposes. That reversion must
be removed in order to include the property in the redevelopment project.
Keeping in mind the size, location and nominal value of the parcel, the City proposes to proceed
with the purchase ofthe property for $100.00, Please review this offer and contact me to confirm
the County's willingness to proceed as proposed. Since we are working against a deadline, your
prompt attention to this matter is very much appreciated.
Sincerely)
!c~ 5i ---
Jeremy S. Steiner
. cc: James Kerrigan. Hopkins HRA
.
CITY OF HOPKINS
Hennepin County, Minnesota
. RESOLUTION No. 2002-58
RESOLUTION APPROVING THE RECONVEYANCE OF
CITY-OWNED PROPERTY TO THE STATE OF MINNESOTA AND THE
REPURCHASE OF SAID CITY-OWNED PROPERTY
\VHEREAS, the City of Hopkins presently owns the following described property:
South:2 feet of Lot 7, Block 3. \Vest Minneapolis
\VHEREAS. the above described property was conveyed to the City of Hopkins on July 23, 1979, from
the State of Minnesota by a Deed of Conveyance of Forfeited Lands, with the restriction that it be used
for public parking purposes and reserving a right of reverter to the State of Minnesota. Such property is
presently used for publ ic parking purposes.
\VHEREAS, the restriction and right of reverter reserved by the State of Minnesota cannot be remuved
except through a reconveyance of the property back to the State of Minnesota and then a sunsequent
purchase of the property by the City of Hopkins.
WHEREAS, the HopKins Housing and Redevelopment Authority is in the process of redeveloping the
area sUlTounding the above described parcel. and inclusion of said property in the redevelopment would
. facilitate the redevelopment project known a!'. the Marketplace Lofts project.
\VHEREAS. the above described property is no longer needed for public parking purposes and would
better servc the pub! ic good to be util ized in conj unction 'A,'ith said redevelopment project.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Hopkins, Minnesota. that the
above referenced property be recOlweyed to the State of Minnesota and thereafter repurchased for a
purchase rrice not to exceed $500.00 for the following reasons:
a, to remove the pub1 ic parking use restriction from the property
h. to extinguish the State's right of reverter to the property.
c. to transfer title to the property to the Hopkins HRA so lhc properly may be included in
the Marketplace Lofts Reuevelopmcnt Project.
NOW THEREFORE IT IS RESOLVED that the Mayor and City Clerk for the City of Hopkins arc
authorized and directed to sign the Reconveyance Deed conveying the above described property to the
Stale of Minnesola so said property can be reconveyed to the City for a purchase price nol to exceed
$500.00 free from such restriction and right of reverter.
Adupted this day of ,200:2.
. City Clerk Mayor
c:hopkins,ci\ il\loll OO,ccre,oluliOl1