CR 98-095 Development Project South of Excelsior Blvd btwn 8th-11th AvenuesJune 8, 1998
Council Report 98 -095
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DEVELOPMENT PROJECT SOUTH OF EXCELSIOR BOULEVARD
BETWEEN EIGHTH - ELEVENTH AVENUES
Proposed Action
Staff recommends adoption of the following motion: Approve Resolution 98-035, approving the
sale of certain property owned by the City of Hopkins between Eighth and Eleventh Avenues,
south of Excelsior Boulevard and north of the Hennepin County Regional Railroad Authority
right -of -way, to the Housing and Redevelopment Authority In and For the City of Hopkins,
subject to approval of sale of property as detailed in the development agreement with Benshoof,
Watson, and Schoenbauer, dated April 8, 1998.
Overview
The City of Hopkins presently holds fee title to an approximately 100 -foot wide strip of property
just south of Excelsior Boulevard from Eighth to Eleventh Avenues South. In 1990 a portion of
this property was transferred to the HRA. However, the title was not recorded in the name of
the HRA, as a subdivision of the property was not completed. Staff is now recommending that
the City transfer this strip of property between Eighth and Eleventh Avenues to the HRA in order
to accomplish the following:
• Facilitate execution and recording of a deed based on the sale previously approved by the
City to the HRA in 1990
• Allow the HRA to sell a portion of the subject property for development purposes
The developers of the property to be sold by the HRA are Jim Benshoof and George Watson.
They are proposing to construct an approximately 5,500- square -foot office building on the
property. Their traffic and landscape design consulting firms would be located in the building.
Attached are the project plans, which will be considered by the Z & P Commission for a CUP at
their June 30 meeting. (The landscape plan for the development parcel and the City property to
the west has not yet been submitted.) A development agreement has been approved by the City
Council and HRA in order to facilitate the project.
The development agreement that has been executed specifically identifies completion of this
action between the City and the HRA. Proceeds from the sale will be transferred to the City.
Prior to the actual sale to the developer, the HRA would hold a public hearing on this transaction.
Supporting Documentation:
The developer will be required to secure supporting information:
• Site map
• Resolution 98 -035
• Site plan
Alternatives
The City Council has the following alternatives regarding this matter:
1. Approve the action as recommended by staff
2. Do not approve the proposed sale.
Jim terri an
Planning & Economic Development Director
CITY OF HOPKINS, MINNESOTA
RESOLUTION NO. 98- 035
A RESOLUTION APPROVING THE DISPOSITION OF CERTAIN
REAL PROPERTY OWNED BY THE CITY OF HOPKINS, MINNESOTA
WHEREAS, the City of Hopkins, Minnesota ( "City ") is the owner of record of certain real
property (the "City Property ") located south of Hennepin County Road No. 3 and east of 11th
Avenue South, which is legally described in Exhibit A attached hereto.
WHEREAS, in 1990, the City Council of the City approved the sale of a portion of the City
Property to the Housing and Redevelopment Authority in and for the City of Hopkins (the "Hopkins
HRA ") for financial consideration stated in such approval by the City Council. That portion of the
City Property purchased by the Hopkins HRA in 1990 (the "HRA Property") is legally described in
Exhibit B attached hereto. The Hopkins HRA has paid the City the full consideration agreed upon
for the transfer of the HRA Property to the Hopkins HRA. However, title to the HRA Property has
not been transferred of record to the Hopkins HRA because the City Council has not yet approved
the subdivision of the City Property.
WHEREAS, the City and the Hopkins HRA now intend to complete the transfer of the HRA
Property to the Hopkins HRA in connection with the redevelopment project described in the
Development Agreement identified below.
WHEREAS, the Hopkins HRA has entered into a Purchase and Development Agreement
dated April 8, 1998 ( "Development Agreement ") with James A. Benshoof, George W. Watson and
Jeffrey A. Schoenbauer (the "Redevelopers "), pursuant to which the Hopkins HRA has agreed,
subject to certain conditions stated in the Development Agreement, to transfer an additional portion
of the City Property to the Redevelopers for redevelopment purposes, including construction of a
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single story office building and related improvements thereon. That portion of the City Property to
be transferred to the Redevelopers is legally described in the proposed Plat of 10417 Associates
Addition as Lot 2, Block 1, 10417 Asssociates Addition and is hereinafter referred to as the
"Redevelopment Property ".
WHEREAS, the Hopkins Zoning and Planning Commission has reviewed the proposed
transfer of the Redevelopment Property to the Hopkins HRA for purposes of redevelopment pursuant
to the Development Agreement and has found such disposition and transfer to be in compliance with
the Comprehensive Municipal Plan adopted by the City.
WHEREAS, Minn. Stat. 469.041 permits the City to transfer its interest in City -owned real
property to the HRA with or without receipt of consideration, provided the transfer is for the purpose
of aiding and cooperating in the planning, undertaking, construction or operation of HRA projects.
WHEREAS, the City Council of the City has reviewed the proposed transfer of the
Redevelopment Property to the Hopkins HRA for purposes of redevelopment pursuant to the
Development Agreement, has found such disposition to be in compliance with the Comprehensive
Municipal Plan adopted by the City and has found that such transfer will aid and assist in the
planning, undertaking, construction or operation of projects undertaken by the Hopkins HRA,
including the project described in the Development Agreement.
WHEREAS, the Hopkins HRA has agreed to pay to the City, in consideration of the transfer
of the Redevelopment Property to the Hopkins HRA, the net proceeds, if any, received by the
Hopkins HRA for the sale of the Redevelopment Property pursuant to the Development Agreement,
after deduction of all fees, costs and expenses incurred by the Hopkins HRA in connection with the
conveyance of the Redevelopment Property to the Redevelopers.
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WHEREAS, the real property to be included in the plat of 10417 Associates Addition
includes all of the HRA Property and all of the Redevelopment Property. Upon final approval of
said plat, the City and the Hopkins HRA intend to transfer all of Lot 2, Block 1, and Outlot A, 10417
Associates Addition, to the Hopkins HRA in order to complete the transfer of record of the HRA
Property to the HRA and to enable the Hopkins HRA to perform its obligations under the
Development Agreement.
NOW, THEREFORE, the City Council of the City of Hopkins makes the following findings:
1. The transfer of the Redevelopment Property to the Hopkins HRA will aid and assist
in the planning, undertaking, construction or operation of redevelopment projects of the Hopkins
HRA, including the redevelopment project described in the Development Agreement.
2. The proposed redevelopment described in the Development Agreement is consistent
with the zoning classification and land use designation of the City Property in the Comprehensive
Municipal Plan adopted by the City.
3. Upon final approval of the plat of 10417 Associates Addition, the City shall complete
the transfer of the HRA Property to the Hopkins HRA by executing and delivering a Quit Claim
Deed transferring Outlot A of 10417 Associates Addition to the Hopkins HRA, and the Mayor and
City Clerk are hereby authorized to execute and deliver a Quit Claim Deed transferring said Outlot
A to the Hopkins HRA.
4. Upon the Redevelopers' compliance with the conditions of the Development
Agreement and payment to the City by the Hopkins HRA of the net proceeds, if any, from the sale
of the Redevelopment Property, after deducting all fees, costs and expenses incurred by the Hopkins
HRA, the City shall execute and deliver a Quit Claim Deed transferring Lot 2, Block 1, 10417
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Associates Addition to the Hopkins HRA, and the Mayor and City Clerk are authorized to execute
and deliver such Quit Claim Deed to the Hopkins HRA.
Adopted this day of June, 1998, by the City Council of the City of Hopkins,
Minnesota.
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Charles Redepenning, Mayor
Terry Obermaier, City Clerk
EXHIBIT A
Those parts of the South Half of the Southeast Quarter and of the Southeast
Quarter of the Southwest Quarter, in Section 24, and those parts
Northeast Quarter of the Northwest Quarter and of the Northwest Quarter of the
Northeast Quarter, in Section 25, all in Township 117, Range 22, described as
follows: Beginning at the intersection of the southerly right -of -way line of
County Road Number 3, as shown in Book 4 of Highway Plats, page 4, office of
the Register of Deeds, with the southerly right -of -way line of the Chicago and
North Western Transportation Company, formerly The Minneapolis & St. Louis
Railway Company; thence southwesterly 249.23 feet along the southerly right -
of -way line of said County Road Number 3, which right -of -way line is a curved
line concave to the northwest having a radius of 1860.08 feet, a central angle
of 7 degrees 40 minutes 37 seconds and an assumed chord bearing of South 66
degrees 17 minutes 41 seconds West; thence South 70 degrees 08 minutes West
along the southerly right - of -way line of said County Road Number 3 a distance
of 1224.29 feet, said line being hereinafter referred to as line "A "; thence
westerly on a tangential curve to the right along the southerly right -of -way
line of said County Road Number 3 a distance of 971.08 feet, said curve having
a radius of 2814.77 feet and a central angle of 19 degrees 46 minutes; thence
South 89 degrees 54 minutes West along the southerly right -of -way line of said
County Road Number 3, which line is hereinafter referred to as line "B" to its
intersection with the northerly extension of the east line of Registered Land
Survey Number 1316, files of the Registrar of Titles, County of Hennepin;
thence southerly along said extension and along said east line to its
intersection with a line drawn parallel with and 100.00 feet southerly from
said line "8 "; thence North 89 degrees 54 minutes East along said parallel
line and its extension to the intersection with a line drawn parallel with and
76.00 feet southeasterly from said line "A" and its southwesterly extension;
thence North 70 degrees 08 minutes East along the last described parallel line
and its extension a distance of 2098.14 feet; thence North 60 degrees 15
minutes 48 seconds East a distance of 73.56 feet to a point which is on a line
bearing South 76 degrees 51 minutes 15 seconds East and distant 146.95 feet
from the point of beginning; thence along a curve concave to the northeast,
having a radius of 686.62 feet and a central angle of 12 degrees 17 minutes 10
seconds a distance of 147.23 feet to the point of beginning, according to•the
recorded plat thereof.
DESCRIPTION OF P®RCEL HOPKINS IS TO CONVEY
That part of the abandoned Great Northern Railroad right -of -way in Section 24,
Township 117 North, Range 22 West and Section 25, Township 117 North, Range 22
West of the 5th Principal Meridian lying East of the following described line:
Commencing at the Northwest corner of the Northeast Quarter of the
Northwest.Quarter of Section 25, Township 117, Range 22; thence run
Northwesterly at an angle of 90 degrees, 18 minutes 22 seconds with the
North line of said Section for a distance 49.9 feet; thence deflect 90
'degrees right for a distance of 668.08 feet; thence deflect right at an
angle of 90 degrees, 26 minutes 06 seconds a distance of 239.0 feet
along a line hereinafter referred•to as Line "A"; thence deflect left at
an angle of 90 degrees fora distance of 45 feet to a point hereinafter
referred to as point "A "; thence deflect right 92 degrees, 51 minutes 45
seconds to the South line of the above described tract being the actual
point of beginning of the line being described; thence run Northerly to
said Point "A "; thence continue Northerly parallel with said Line "A"
for a distance of 109.02 feet; thence deflect right along a tangential
curve having a radius of 90.0 feet (delta angle 90 degrees, 26 minutes
06 seconds) and there terminating.
Which lies westerly of a line 409.00.feet easterly from and parallel with the
East line of Eleventh Avenue South, as said Eleventh Avenue South was there
reestablished (46 feet in width) by deed dated August 20, 1930, recorded in
the office of the Register of Deeds, Hennepin County, Minnesota, on December
31, 1930, as Document No. 1626685 in Book 1236 of Deeds, Page 416.