CR 94-20 7th ST Landfill Settlement Agreement
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January 26, 1994 '$- "" Council Report 94-20
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SEVENTH STREET LANDFILL
APPROVE SETTLEMENT AGREEMENT AND PURCHASE
OF RUTLEDGE PROPERTY
Proposed Action.
Staff recommends the following motion: Move that Council approve
the Rutledqe Settlement Agreement and the purchase of Rutledqe
property adjacent to the Seventh Street Landfill.
Overview.
Two parcels of land, denoted as "ABJ" and "Rutledge All on the
attached location map and currently in private ownership, were
part of the permi tted Seventh Street Landf i II. Solid waste
materials were buried on these parcels. The city sold these two
. tracts to ABJ Enterprises in 1981 and Rutledge Construction in
1980. Under strong pressure from the MPCA the city undertook
negotiations in 1992 to repurchase the above properties. The
City Attorney has concluded a successful settlement concerning
the Rutledge property and is proceeding with negotiations on the
ABJ parcel.
Primary Issues to Consider.
0 Why is purchase of the property necessary?
0 What are the terms of the settlement?
0 Staff recommendation
supportinq Information
0 Location map
0 City Attorney memo
0 Settlement Agreement
I'r~ L&--
. .James Gessele
Engineering Superintendent
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Council Report 94-20
. Page 2
Analysis
0 Why is purchase of the property necessary?
The 30,000 square foot Rutledge property was sold by the
city without consent or knowledge of the MPCA even though
the parcel lay within the permitted boundaries of the
Seventh street Landfill. Now that the agency is aware of
that sale, it has gone on record strongly urging the City to
acquire it back.
The City Attorney also points to acquisition as a means of
avoiding inverse condemnation proceedings by Rutledge,
especially in light of the City's efforts to create a
Landfill Gas Control District, in which the parcel lies.
0 What are the terms of the settlement?
The agreement stipulates a purchase price of $24,900.00 and
holds Rutledge harmless from any claims, losses or damages
arising from environmental issues rooted in the fact that
the parcel is located within the Landfill Gas Control
. District. The original purchase price in 1980 was
approximately $12,000.00.
0 Staff recommendation
staff concurs with the City Attorney's negotiated settlement
and his assessment as to its advantages and fairness. staff
recommends approval and authorization of Mayor and city
Manager signatures.
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. Sec1::i.on 3. Property Included In District_ The following - _ ~ - JU
described property is included w~thin the designated Landfill Gas -6~: ),.
Control District. The boundary of the distr:i.c1: is as follows:
That part of the Northwest Quarter of the Southwest
Quarter of Section 25, Township 117, Range 22, - (93-9-() ,J
beginning at the northwest corner of outlot B,
Westbrooks Patio Homes; thence westerly along the south ( 10-/,;1) ,
line of Seventh Street South to its intersection with ,
the southeasterly right-of-way line of the Soo Line
Railroad Company; thence southwesterly along the said
southeasterly right-or-way line of said railway to its
intersection with the west line of Section 25, TownShip
117, Range 22; thence southerly along said west line of
said Section 25 to the southwest corner of the
Northwest Quarter of the SouthWest Quarter thereOf;
thence easterly along the south line of said Northwest
Quarter of the Southwest Quarter of Section 25 to the
southwest corner of Outlet A, Westbrooke Patio Homes; .
thence North along the west line of said plat of ,
... Westbrooke Patio Homes to the point of beginning.
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C I T y 0 F H 0 P K I N S
MEMO
Date: January 19, 1994
To: Jim Gessele
From: Jerre Miller
Re: Rutledge Landfill Property
As you have requested, I submit my review of the Rutledge
Settlement Agreement pertaining to the purchase of the property
owned by Rutledge described within it as strongly recommended by
. the MPCA.
The Agreement confirms the purchase of the Rutledge property for
$24,900.00 and contains an indemnification clause wherein the City
will hold Rutledge harmless from any claims, losses or damages
arising essentially from environmental concerns that may arise
because of its location within the Hopkins Landfill District.
Execution of the Settlement Agreement and completion of the
purchase of the property from Rutledge is recommended because:
1. The PCA has strongly urged City acquisition of this parcel
because of its location within the Landfill District which was sold
to Rutledge by the City before the Landfill Closure Order was
executed and without the consent or knowledge of the PCA as they
have claimed.
2. Acquisition also allows the City to avoid the threat of a
inverse condemnation proceeding by Rutledge.
3. The purchase price arrived at was accomplished through
negotiation and is within the area of fairness and reasonableness.
4. The additional land provides the City with a larger area to
develop for recreational purposes in considering the long term
e analysis of its eventual use for that purpose.
5. Compliance with the request of the MPCA to acquire the property
may help to improve relations between that entity and the City by
this spirit of prompt response and cooperation.
1010 First Street South, Hopkins, Minnesota 55343 612/935 -8474
An Equal Opportunity Employer
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6. The negotiated purchase price helps to determine a benchmark
for market value when dealing with other such similar acquisitions.
Based on the above reasons, I recommend approval and execution of
this Agreement together with further documents necessary to
transfer title of the property t~ ;he City.
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. SETTLEMENT AGREEMENT
This Settlement Agreement is entered into as of the 21st day of December, 1993,
between Thomas Rutledge ("Rutledge") and the City of Hopkins ("the City"), a municipal
corporation under the laws of the State of Minnesota.
WHEREAS, Rutledge is the owner in fee simple of a parcel of land ("the Parcel")
in Hopkins, Minnesota, legally described as follows:
That part of the South half of Section 25, Township 117, Range 22,
described as follows: Commencing at the point of the intersection of the
North line of said South half of said Section 25 with the Southeasterly right-
of-way line of the Chicago, Milwaukee, St. Paul and Pacific Railroad right-
of-way; thence Southwesterly along said Railroad right-of-way line a
. distance of 200 feet; thence at right angles Southeasterly a distance of 150
feet; thence Northeasterly at right angles a distance of 200 feet; thence
Northwesterly in a straight line to the point of beginning;
WHEREAS, the Parcel includes property which was previously part of the 7th
Street Landfill ("the Landfill"); and
WHEREAS, Rutledge purchased the Parcel from the City on December 10, 1980;
and
WHEREAS, as part of its efforts to control methane gas emissions from the
Landfill, the City Council is presently considering Ordinance No. 93-735, which would
include the Parcel in a Landfill Gas Control District; and
WHEREAS, the City is interested in acquiring the Parcel as part of its efforts to
control gas emissions from the Landfill; and
WHEREAS, Rutledge contends that he has valid claims against the City arising
. out of the sale of the Parcel from the City to him and additional claims if Ordinance No.
93-735 becomes law; and
. WHEREAS, the City denies that Rutledge has or may have valid claims against
the City arising out of the sale of the Parcel or Ordinance No. 93-735; and
WHEREAS, the parties wish to resolve Rutledge's alleged actual and potential
claims, convey the Parcel to the City, settle their disputes without the cost and expense
of litigation, and, to the extent possible, put Rutledge in the position he would have been
in had he not purchased the Parcel from the City,
NOW THEREFORE, in consideration of the foregoing, the parties agree as follows:
..ft.A.-
1. Closing on this Settlement Agreement will be on February 2, 199t, in the
offices of the City Manager, Hopkins City Hall.
2. At the Closing, in exchange for the sum of $24,900 to be paid by the City by
cashier's or certified check, Rutledge shall convey the Parcel to the City by executing
and delivering to the City a quitclaim deed in the form attached hereto as Attachment A.
. The City shall pay any and all expenses in connection with the transaction, including
deed taxes, if any, but shall not be responsible for Rutledge's attorneys' fees and
disbursements.
3. Upon Closing, Rutledge releases and forever discharges the City from any and
all liabilities, losses, claims, demands, damages, costs, and expenses, known,
suspected, or unknown, resulting from, arising out of, or relating to the Parcel or the
Landfill, including, but not limited to, (a) claims of misrepresentation in the sale of the
Parcel; and (b) claims that Ordinance No. 93-735 amounts to a condemnation of the
Parcel or otherwise violates Rutledge's rights.
4. Upon Closing, the City releases and forever discharges Rutledge from any and
all liabilities, losses, claims, demands, damages, costs, and expenses, known,
suspected, or unknown, resulting from, arising out of, or relating to the Parcel or the
Landfill, including, but not limited to, claims by the Minnesota Pollution Control Agency
. or third parties that Rutledge is liable under any environmental law.
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. 5. Notwithstanding anything to the contrary herein, and notwithstanding the
release in paragraph 3, the City agrees to fully and completely indemnify Rutledge
against, and hold Rutledge harmless from, all liabilities, losses, claims, demands,
damages (including without limitation environmental damage, environmental cleanup
costs, personal or bodily injury or death, and damage to or loss of property),
assessments, government proceedings, government investigations, and costs and
expenses (including without limitation reasonable attorneys' and consultants' fees and
disbursements) of every kind, nature or description, past, present, and future, known and
unknown, suspected and unsuspected, existing and contingent, whether or not arising
in whole or in part from Rutledge's own negligence, resulting from, arising out of, or
relating to the Parcel or the Landfill, including, but not limited to, (a) claims resulting from
or arising out of the operation, maintenance, removal, repair, use or existence of the
. Landfill, (b) claims arising under environmental laws with respect to the Parcel or the
Landfill, and (c) claims associated with methane gas from the Landfill.
5.1 Rutledge represents and warrants that he is not aware of, and does
not suspect, any threatened or pending claims against him resulting from, arising
out of, or relating to, the Parcel or the Landfill, save and except for potential
environmental claims (including by the Minnesota Pollution Control Agency) by
virtue of the fact that the Parcel includes property which was part of the Landfill.
6. Each party has received independent legal advice from its attorneys, with
respect to the advisability of making the settlement provided for herein and with respect
to the advisability of executing this Settlement Agreement.
7. Each party hereto has made such investigation of the facts pertaining to this
settlement and this Settlement Agreement and of all the matters pertaining thereto as it
deems necessary.
.
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. 8. This Settlement Agreement was the subject of negotiations. This
Settlement Agreement shall not be construed against any of the parties, but shall be
construed in a manner fair to each.
9. No party hereto has made any statement or representation to any other
party regarding any fact relied upon in entering into this Settlement Agreement, and each
party does not reply upon any statement, representation, or promise of any other party
in executing this Settlement Agreement, or in making the settlement provided for herein,
except as expressly stated in this Settlement Agreement.
10. In entering into this Settlement Agreement, each party assumes the risk of
any misrepresentation, concealment, or mistake and expressly waives recourse for the
same. This Settlement Agreement is intended to be and is final and binding between the
parties hereto.
. 11. The parties hereto deny any and all liability to each other as to any and all
claims between them in connection with the Parcel, the Landfill, and Ordinance 93-735.
This Settlement Agreement constitutes the compromise of disputed claims. This
Settlement Agreement shall neither constitute nor be construed as an admission as to
liability, fault, comparative fault, or damages by any party hereto, or as an admission of
the truth or correctness of any claim asserted by any party hereto.
12. This Settlement Agreement shall be binding upon and shall inure to the
benefit of the parties and their successors, heirs, representatives, and assigns.
13. The undersigned, by execution hereof, state that the terms of this
Settlement Agreement have been completely read and are fully and voluntarily accepted.
The undersigned warrant that they have authority to execute this Settlement Agreement
and that the claims which are the subject of this Settlement Agreement have not been
assigned or transferred.
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. This Settlement Agreement is the entire agreement between Rutledge and
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the City, and supersedes all prior and contemporaneous oral and written agreements and
discussions. This Settlement Agreement may be amended or modified only by an
instrument in writing executed by both of the parties hereto.
15. This Settlement Agreement shall be construed under the laws of the State
of Minnesota.
16. This Settlement Agreement may be executed in counterparts, including by
facsimile, and shall become effective when each party has executed a counterpart.
IN WITNESS WHEREOF, the parties have executed this Settlement Agreement
as of the day and year first above written.
.
CITY OF HOPKINS, MINNESOTA
By
Its
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. EXHIBIT A
QUIT CLAIM DEED
STATE DEED TAX DUE HEREON: $ 82.17
Date: February 2, 1994
FOR VALUABLE CONSIDERA nON, Thomas Rutledge and Susan E. Rutledge, husband and wife,
Grantors, hereby convey and quitclaim to the City of Hopkins, Grantors' interest in real property in
Hennepin County, Minnesota, described as follows:
That part of the South half of Section 25, Township 117, Range 22, described as follows:
Commencing at the point of the intersection of the North line of said South half of said Section
25 with the Southeasterly right-of-way line of the Chicago, Milwaukee, 51. Paul and Pacific
Railroad right-of-way; thence Southwesterly along said Railroad right~of-way line a distance
of 200 feet; thence at right angles Southeasterly a distance of 150 feet; thence Northeasterly
at right angles a distance of 200 feet; thence Northwesterly in a straight line to the point of
beginning;
The seiter certifies that the seller not know of any welts on the described property.
GRANTORS:
Thomas Rutledge
.
Susan E. Rutledge
STATE OF MINNESOTA )
)ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this 2nd day of February, 1994, by
Thomas Rutledge, husband of Susan E. Rutledge.
Notary Public
STATE OF MINNESOTA )
)ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this 2nd day of February, 1994, by
Susan E. Rutledge, wife of Thomas Rutledge.
Notary Public
. THIS INSTRUMENT WAS DRAFTED BY: Tax Statements for the Real Property described in this instrument
should be sent to the following address:
Leonard, Street and Deinard (EHG)
150 South Fifth Street City of Hopkins
Minneapolis, Minnesota 55402 ] 0] 0 First Street South
(6]2) 335 1500 Hopkins, MN 55343
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