CR 05-030 Purchase Agreement - South End of Interlachen Road
March 1, 2005
Council Report 2005-030
APPROVE PURCHASE AGREEMENT
FOR CITY OWNED PROPERTY -
SOUTH END OF INTERLACHEN ROAD
Proposed Action
Staff recommends adoption of the following motion: Move to authorize the Mayor and City
Manager to sign a purchase agreement for the 42 foot by 75 foot parcel at the south end of
Interlachen Road.
Adoption ofthis motion will continue the process of selling this city owned property.
Overview
In the 1950's, the City of Hopkins acquired a number of parcels along the old streetcar right-of-
way on the south side of Interlachen Park. Over the years various parcels were declared surplus
and sold to a variety of individuals. The City continues to be the owner of the subject parcel.
There are utilities buried under the parcel, and therefore, the City has an interest in maintaining
ownership and/or an easement for the maintenance of these utilities.
In the 1960's the City received a petition from Mr. A.M. Kessinich and Mr. L.O. Swanson to
dispose ofthe subject parcel, as well as a small parcel immediately east of the subject parcel. The
Council did declare both parcels to be surplus and authorized the sale of the parcels. For reasons
staff was not able to determine, the subject parcel was not purchased, while the adjacent parcel
was.
Beginning in 2004 the City began to receive requests to purchase this property. The City
Council, on January 4, 2005, declared this property as surplus and authorized the sale of the
property.
Primary Issues to Consider
What process needs to be followed in order to proceed with the sale?
Supporting Documents
Resolution 2005-021
Council Report 2005-030
Page 2
Analysis of Primary Issues
What process needs to be followed in order to proceed with sale?
The Hopkins City Charter establishes the procedure for sales of real property.
Section 12.05. SALES OF REAL PROPERTY. No real property of the City
shall be disposed of except by resolution duly adopted by a four-fifths vote ofthe
City Council. The consideration paid to the City for the sale of any such real
property shall be not less than the fair and reasonable market value of such
property as the same may have been determined by the latest tax assessment rolls
of the City subject however for reasonable adjustment in those cases where the
City may retain easements or other rights in such property. The proceeds of any
such sale shall be used for any public purpose which the Council may by
resolution designate.
The Hopkins City Attorney has prepared a purchase agreement. An open bid process was
conducted. Two bids were received. The Swansons, who live just to the east of the subject
parcel, submitted a bid of $72,000 along with a check for 5% of the bid. The Swanson's have
signed the purchase agreement. Staff has reviewed their bid documents and determined that
everything is in order.
The Swansons have indicated that the property will remain in its current state for the
immediate future. It is possible that several years from now they will seek to combine the
parcel with their existing property to create a buildable lot next to the Interlachen golf
course.
A closing date will be set with the buyers upon Council approval of this motion.
The proceeds of the sale will be deposited with other City funds. The Council will have to
designate a use for these proceeds at a future date.
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 2005-021
RESOLUTION APPROVING THE PURCHASE AGREEMENT BY
AND BETWEEN THE CITY OF HOPKINS, MINNESOTA
AND JOYCE V. AND PAUL L. SWANSON
WHEREAS, the City of Hopkins, is the owner of certain real property located within the city at the south
end of Interlachen Road with the following legal description:
The North 75 feet of the Northeast Quarter of Section 30, Township 117, Range 21;
except that part thereof lying between the Easterly and the Westerly boundary lines
extended Southerly across said North 75 feet of said Northeast Quarter of Block 16, F.A.
Savage's Interlachen Park; and except that part of above described property lying between
the Easterly and the Westerly boundary lines extended Southerly across said North 75
feet of said Northeast Quarter of Block 15, F.A. Savage's Interlachen Park; and except
that part thereof lying between the East line of Block 13, F.A. Savage's Interlachen Park
and the West line of Block 14, F.A. Savage's Interlachen Park, extended Southerly across
said North 75 feet of said Northeast Quarter. ; and
WHEREAS, the Hopkins City Council has declared this parcel to be surplus; and
WHEREAS, Joyce V. and Paul L. Swanson have presented to the City a purchase agreement for the
purchase of the parcel for a purchase price of $72,000; and
WHEREAS, the bid price is not less than the fair and reasonable market value of the property.
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins,
Minnesota enters into a purchase agreement with Joyce V. and Paul L. Swanson.
Adopted by the City Council of the City of Hopkins this 1st Day of March, 2005.
By
Gene Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk