CR 94-194 Purchasing Railroad Property
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October 14, 1994 Council Report: 94-194
PURCHASING RAILROAD PROPERTY
FOR TRAIL PURPOSES
proposed Action.
Staff recommends adoption of the following motion: "Move to authorize the
City Manaqer to execute a Standard Offer to Purchase Form with Rail
Property Manaqement for the purchase of the Burlinqton Northern Railroad
property east of T.H. 169 in the amount of $6.000."
Overview.
This piece of property has always been viewed by the city as a critical
link for future trail corridors. In fact, this property has been on the
city's official map for many years so the city would have first right of
refusal if it ever became available. The city was recently notified that
this property is now available for purchase from the property management
division of the Burlington Northern Railroad. Staff would therefore like
to proceed with the purchase of this property and is recommending Council
authorize the first step of this process.
.There is a 35 foot wide strip of railroad property that is adjacent to
Super Value's property on the north side of 2nd street N.E. , that Super
Value would like to purchase. This strip of land is not needed by the city
for trail purposes, but it is included in the package of property
Burlington Northern would like to sell. Staff would therefore be working
with Super Value on a purchase price for th~s property if the city
proceeded to buy the railroad property.
Primary Issues to consider.
0 What is the Park Boards recommendation of this issue?
0 Is there earnest money involved with this Standard Offer to Purchase
Procedure?
0 How would the purchase be funded?
0 How much would super Value be willing to pay for the 35 foot wide
parcel adjacent to their property?
supportinq Information.
0 Analysis of Issues
0 Map
0 Standard Offer to Purchase Form
~~~~
.Lee Gustafson, Pub 1C Works Director
council Report: 94-194
Page 2
.AnalySis of issues
0 What is the Park Boards recommendation of this issue?
The Park board has discussed the possibility of acquiring this
property on many different occasions. They have not taken official
action on this purchase, however they have always indicted that the
city should purchase the property at a reasonable price if it ever
became available.
The Park Board visualizes this property as being used as a regional
trail. The trail would begin at the old depot tying into the two new
regional trails in Hopkins and proceed north along the east side of
T.H. 169. The trail would continue through st. Louis Park and would
eventually connect to the Minneapolis trail system at Cedar Lake.
There is a strong possibility that Hennepin Parks would assist in
funding the construction of this trail once all the necessary property
was acquired. They have also indicated that they would probably
assume maintenance and policing of this trail if it could be
designated as a regional trail in accordance with their policies.
0 Is there earnest money involved with this Standard Offer to Purchase
Procedure?
. As mentioned in the cover letter to the purchasing document, Rail
Property Management requires receipt of $1,000 in earnest money before
they will submit the city's offer to the Burlington Northern Railroad
company. If our offer is not accepted, the earnest money will be
refunded.
0 How would the purchase be funded?
Staff is intending that the property purchase be funded from the Park
Dedication fund. This fund was established for purposes such as this.
It would therefore be a logical source of funding. The fund
furthermore has adequate funds to cover the purchase price.
0 How much would Super Value be willing to pay for the 35 foot wide
parcel adjacent to their property?
In past discussions with Super Value they have indicated that they
would be willing to pay up to $6,000 for that 35 foot strip of land
they want. If Burlington Northern Railroad Company accepted our
$6,000 offer, it would be staffs intent to offer the 35 foot strip of
land to Super Value for $6,000. If Super Value accepted this price,
the City of Hopkins expense in this property pruchase would therefore
only be administrative time.
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- lie Rail Property Management
e 35 EAST WACKER DR.
SUITE 1206
CHICAGO, ILLINOIS 60601
312-419-8288
September 22, 1994 FAX 312-419-8560
Mr. Lee Gustafson
Public Works Director
City of Hopkins
1010 First street South
Hopkins, Minnesota 55343
Dear Mr. Gustafson,
Enclosed are three (3 ) copies of the Burlington Northern Railroad
company's "Standard Offer To Purchasell form, along with an
II Addendum II and an llExhibit All print, showing the property ln
Hopkins, Minnesota as outlined in "Yellowll and IIBlue".
. Burlington Northern Railroad company is willing to consider an
offer of $6,000.00.
If the enclosures are in accordance to your wishes, please execute
all three (3) copies and return two (2) copies to me along with an
earnest money deposit check in the amount of $1,000.00 payable to
the Burlington Northern Railroad Company.
Upon receipt of the above I will present your offer to the
Burlington Northern Railroad company for their consideration and
hopeful acceptance. If your proposal is accepted you will receive
a fully executed document and a mutually acceptable closing date
will be determined. If your proposal is not accepted the earnest
money will be refunded.
For your information this letter in no shape or form, either actual
or implied, denotes any offer to sell or agreement to sell by the
Railroad. Please do not assume acceptance of any offer or agreement
until you receive a fully executed contract signed by an authorized
railroad officer.
Please contact me regarding any questions you may have.
Cordially yours,
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Tony:)hillips .
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Logistics and Property Services
4105 Lexington Avenue North
suite 200
Arden Hills, Minnesota 55126 ...
LOGISTICS AND PROPERTY SERVICES .,
The undersigned, hereinafter called "Buyer" offers to purchase from
Burlington Northern Railroad Company, hereinafter called "Seller,1I Seller's
interests in a portion of its right-of-way (at or near) Hopkins, Hennepin
County, Minnesota, as shown highlighted in yellow on Exhibit "A," attached
hereto and made a part hereof.
Seller will convey its interests in the parcel to Buyer for a purchase price
of $ 6,000.00. Seller will convey its interest by quitclaim deed reserving
minerals with reasonable access thereto. The parcel is conveyed in its
present condition, Seller makes no representations or warranties whatsoever.
Any outstanding taxes and costs for survey, abstract, title insurance,
documentary stamps, and other costs, are Buyer's responsibility. Buyer
further agrees to indemnify Seller from future responsibility for the
construction and maintenance of any railroad fences, road crossings, cattle
guards, gates, farm crosslngs, buildings, and drainage or irrigation plpes
located on or adjacent to the parcel to be conveyed.
Buyer understands the foregoing. Buyer further understands that railroad
property may be subj ect to reversion on abandonment of use for railroad
purposes; that Seller's quitclaim deed conveys only whatever interests it may
have in the parcel, if anYi and that the deed does not necessarily convey fee
title or give Buyer ownership of the parcel as against the claims of anyone
other than Sell~r. Buyer herewith deposits as earnest money the sum Ofe
$ 1 ,000.00 to be applied against the purchase price. Notwi thstandin
anything set forth herein to the contrary, the balance of the purchase price
shall be due ten (10) days from notice that Seller's deed is ready for
deli very. Time lS of the essence of this contract, and if Buyer shall
default or fail to perform the requirements of this contract within the time
limits herein specified, the Seller may retain the deposit as agreed
liquidated damages and just compensation, and not as a penalty or forfeiture,
and declare this contract terminated. In the event of default by Seller,
Buyers sole remedy shall be a return of the earnest money deposit.
Effective with the date of sale, Seller will assign to Buyer Lease No.
N/A , covering all or a portion of subject parcel.
By: Date:
Title:
Printed below lS the name(s) and addressees) as they should appear in the
deed of conveyance:
Buyer'S Phone:
ACCEPTED BY: BURLINGTON NORTHERN RAILROAD COMPANY e
By: Date:
Title:
.
. ADDENDUl\1
Buyer, city of Hopkins, Minnesota does hereby acknowledge that
it is acquiring the interest of Seller under the threat of Buyer
exercising its power of eminent domain. Buyer further acknowledges
that a portion of the property subject of the agreement as outlined
in Blue on Exhibit "All is reversionary in nature, and as such may
revert for non use as a railroad right of way.
Buyer does hereby request that Seller issue a quitclaim deed
for all of Seller's interest in the property subject of this
agreement including any and all reversionary property for the
purchase price set forth in this agreement. All leases on subject
property shall be assigned to Buyer.
By acceptance of the quitclaim deed Buyer acknowledges that a
material consideration for the conveyance, without which it would
not be made, is the agreement by Buyer and its assigns that the
Seller, its predecessors and successors, and assigns shall be in no
manner responsible to Buyer, any subsequent owner, purchaser,
lessee, or any person interested therein or to any landowner lying
adjacent to the subject property, or any prior owners and heirs,
for any and all claims, demands, damages, causes of action
including loss of access, or suits regarding the quiet and peaceful
. possession of premises, title thereto, or condition thereof.
BUYER : Hopkins, M.innesota DATE:
BY:
ACCEPTED: BURLINGTON NORTHERN RAILROAD COMPANY
BY: DATE:
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C I T y 0 F H 0 P K I N S
Dear Hopkins Resident:
The Hopkins city council will be taking action next Tuesday
night to consider purchasing the old Burlington Northern
Railroad property on the east side of T.H. 169, from 2nd
street NE to T.H. 7. As you know, this property is
currently being used as an informal trail from 2nd street NE
up to the shopping area north of T.H. 7. If this property
is purchased by the City, it would be intended that this
trail be upgraded at some future date to provide a
connection from Hopkins to the Minneapolis Park system.
The City Council will be considering this issue at their
October 18th city Council meeting. The meeting will be held
in the Council Chambers at city Hall, and begin at 7:30 p.m.
Anyone desiring to be heard on this matter should plan on
. attending the meeting. Questions can also be answered by
contacting the Hopkins Public Works Director, Lee Gustafson,
at 939-1382.
sincerely,
~4~
Lee Gustafson
Public Works Director
cc: Mayor and city Council
Hopkins Park Board
.
1010 First Street South, Hopkins, Minnesota 55343 612/935-8474
An Equal Opportunity Employer