CR 97-71 Amendment Parking Lot Agreement - Lot 500
, y
o
April 10, 1997
m
1- "
o P K \ ~
Council Report 97-71
AMENDMENT TO PARKING LOT AGREEMENT
ProDosed Action
Staff recommends adoption of the following motion: Move to approve an amendment to the
parking lot (Lot 500) agreement with Don and Carol Hagen dated August 3. 1977.
With approval ofthis action, the City will extend the term of the parking lot agreement in
conjunction with successful closure of the $200,000 Commercial Rehabilitation Loan.
Overview
The City of Hopkins originally entered into a parking lot agreement with Ryan Construction
Company of Minnesota, Inc., on August 3, 1977. At the time the Tait's SuperValu grocery store
was constructed, Ryan owned the building. The agreement was later assumed by the current
owners, Donald and Carol Hagen. This agreement stated that the City of Hopkins would maintain
Parking Lot 500 for public parking purposes for a period of twenty-five years, ending August 2,
2002, provided that the company premises is being used and operated as a food supermarket.
Donald and Carol Hagen, current owners of the subject property, and Mike Tait, owner of Tait's
SuperValu, have now requested that the term of the parking lot agreement be extended
indefinitely, provided that a grocery store (of at least 24,500 square feet) continues to operate
north of the subject property. The execution of the amended parking lot agreement is being
requested in conjunction with the grocery store improvement project. The agreement needs to be
approved prior to closure on the $200,000 Commercial Rehabilitation loan, which was approved
on September 19, 1995.
Primarv Issues to Consider
What are the terms of the proposed amendment to the parking lot agreement?
What is the timing of the project?
SUDDortinl! Documents
Proposed amendment to the parking lot agreement
J es D. Hartshorn
conomic Development Coordinator
Council Report 97-71, April 10, 1997 - Page 2
Primarv Issues To Consider
o What are the terms of the proposed amendment to the parking lot agreement?
The terms of the proposed amendment request that the City of Hopkins maintain Parking Lot
500 for an indefinite period (instead of an ending date of August 2, 2002, as stated in the
original agreement). The City will maintain the parking lot for public parking and for
driveway, walkway, public sidewalks, and alley purposes, as long as Tait's SuperValu is
improved, used, and continuously operated as a grocery store of at least 24,500 square feet.
o What is the timing of Tait's improvement project?
Mr. Tait has indicated that he is anticipating completing all improvements by mid-May,
assuming closure of the Commercial Rehabilitation Loan and approval of the amendment to
the parking lot agreement are complete by mid-March 1997. It should be noted that Mr.
Hagen and Mr Tait need to complete a number of items prior to the City being able to close on
this loan.
Alternatives
The Council has the following alternatives regarding this item:
1. Approve the action as recommended by staff. With this action, in conjunction with closure of
the $200,000 Commercial Rehabilitation Loan, staff will execute the proposed amendment to
the parking lot agreement between the Hagens and the City of Hopkins.
2. Deny the amendment to the parking lot agreement. With this action, Mr. Tait will not have
guaranteed parking for customers after the current agreement is complete on August 2, 2002.
It should be understood this action may have a negative impact on Mr. Tait's business.
3. Continue for additional information. As noted above, Mr Tait is eager to close on the City's
loan, which would be delayed if this action is continued.
AMENDMENT TO PARKING LOT AGREEMENT
This Amendment to Parking Lot Agreement (this "Amendment") is made and entered into
as of the day of , 1997, by and between the City of Hopkins, a
municipal corporation under the laws of the State of Minnesota (the "City") and Donald F. Hagen
and Carol A. Hagen, as Trustees of the Donald F, Hagen Revocable Trust dated April 13, 1995, as
amended January 16, 1996, and Marian B. Mason, as Trustee of the Herbert A. Mason Revocable
Trust dated March 21, 1995 (collectively the "Owners").
RECITALS
A. The City is owner ofland located in Hennepin County, Minnesota, legally described
in Exhibit A attached hereto and incorporated herein by reference (hereinafter referred as to the
"Public Parking Area").
B. Owners are the owners of land adjacent to the Public Parking Area, located in
Hennepin County, Minnesota, and legally described in Exhibit B attached hereto and incorporated
herein by reference (hereinafter referred to as "Benefited Property").
C. Pursuant to an Agreement dated August 3, 1977 and filed for record November 10,
1977 as Hennepin County Recorder Docwnent No. 4332545 (the "Parking Lot Agreement") the City
agreed the Public Parking Area would be maintained wholly for public parking purposes for a period
of twenty-five (25) years ending August 2, 2002.
D. Owners, as the current owners of the Benefited Property and the parties entitled to
the benefits of the Parking Lot Agreement, have requested that the term of the Parking Lot
Agreement be extended. The City has agreed to extend the term of the Parking Lot Agreement upon
and subject to the terms and conditions stated in this Amendment. The City and Owners are entering
c:\fiIe\hopcivil\parkamen.t&h
into this Amendment for the purpose of stating the terms and conditions upon which the Parking Lot
Agreement is amended.
NOW, THEREFORE, in consideration of the foregoing Recitals, and of One Dollar and other
good and valuable consideration, the receipt and sufficiency of which are acknowledged, the City
and Owners agree as follows:
I. The foregoing Recital Paragraphs A-D are incorporated in and made a part of this
Amendment.
2, Paragraph 1 of the Parking Lot Agreement is hereby modified to read as follows:
1, The City agrees the Public Parking Area described in Exhibit A
attached to this Amendment shall be improved, constructed, reconstructed,
maintained, operated and regulated by the City wholly for public parking purposes
and for driveway, walkway, public sidewalks and alley purposes so long as the
Benefited Property i, improved, used and continuously operated as a grocery store
containing no less than 24,500 square feet of building area that is used
for grocery store purposes. In the event of damage or destruction of the grocery store
improvements located on the Benefited Property, the City's agreement to improve,
construct, reconstruct, maintain, operate and regulate the Public Parking Area for the
puzposes described above shall continue in effect, provided such improvements shall
be fully repaired and reconstructed by Owners within 365 days from the date of such
damage or destruction, and further provided such 365-day period shall be extended
for any delays resulting from causes beyond Owners' control such as acts of God,
accidents, strikes, shortages of material or inclement weather and for delays in
effectuating a satisfactory settlement with Owners' insurers.
3. Paragraph 2 of the Parking Lot Agreement is amended to read as follows:
2. This Agreement shall be binding upon and inure to the benefit of the
City and Owners and their respective successors and assigns, and shall run with the
title to the Public Parking Area and the Benefited Property. There are no third party
beneficiaries of this Agreement other than the owner and operator of the grocery
store located on the Benefited Property. This Agreement shall, therefore, be
enforceable only by Owners, their successors or assigns as owners of the Benefited
Property, and by the party who, at the time of enforcement of this Agreement, is the
owner and operator of the grocery store located on the Benefited Property.
c'\tile\hopcivil\parkamen.t&h
2
4. This Amendment is incorporated in and made a part of the Parking Lot Agreement
which shall remain in full force and effect in all of its terms, covenants and conditions, as modified
by this Amendment.
. City of Hopkins
Donald F. Hagen, as Trustee of the Donald
F. Hagen Revocable Trust Dated April 13,
1995, as amended January 16, 1996
By
Its
Carol A. Hagen, as Trustee of the Donald
F. Hagen Revocable Trust Dated April 13,
1995, as amended January 16, 1996
By_
Its
Marian B. Mason, as Trustee of the Herbert
A. Mason Revocable Trust dated March 21,
1995
STATE OF MINNESOTA )
)SS
COUNTY OF HENNEPIN )
This instrument was acknowledged before me on the day of
, 1997, by Marian B. Mason, as Trustee of the Herbert A. Mason Revocable
Trust dated March 21,1995.
Notary Public
c:\fiIe\hopcivil\parkamen. t&h
3
STATE OF MINNESOTA )
)SS
COUNTY OF HENNEPIN )
This instrument was acknowledged before me on the day of
, 1997, by Donald F. Hagen and Carol A. Hagen, as Trustees of the Donald
F. Hagen Revocable Trust dated April 13, 1995, as amended January 16, 1996.
Notary Public
STATE OF MINNESOTA )
)SS
COUNTY OF HENNEPIN )
This instrument was acknowledged before me this day of
1997, by and , the
and
respectively, of the City of Hopkins, Minnesota, municipal corporation under the laws of the State
of Minnesota, on behalf of the muncipal corporation.
Notary Public
c:\fiIe\hopcivil\parkamen.t&h
4