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CR 06-001 Quit Claim Deed to Park Nicollet Clinic CITY OF m December 28, 2005 HOPKINS Council Report 2006-001 QUIT CLAIM DEED TO PARK NICOLLET CLINIC Proposed Action Staffrecommends approval of the following motion: authorize execution of a quit claim deed to Park Nicollet and to Citv interests in various properties owned by Methodist Hospital in the City of Hopkins. subiect to the conditions that Methodist Hospital pay all legal costs incurred by the City relating to this action. Overview In December 1976, the Hopkins HRA deeded certain properties between Eighth and Ninth Avenues, north of First Street South, to Hopkins Medical Building Associates for construction of a medical clinic facility. Subsequently, the City of Hopkins facilitated a commercial development revenue note transaction in connection with which the City entered into a lease agreement with this entity to allow for the sale of an industrial revenue note to finance construction of the project. As a result of these actions, the facility was constructed and is now owned by Park Nicollet Clinic. Recently it was determined that there are still some City title interests remaining on the subject property as a result of the industrial revenue note and lease transaction that were not addressed when the note was paid. The proposed action will quit claim any interest the City has in this property to Methodist. The deed ensures that the City retains any interest in the property as detailed in previous agreements, including drainage and utility easements. The proposed action has been reviewed by the City attorney. Supportinl! Documents . from City Attorney Financial Impact: $ 0 N/A _ Budgeted: Y/N _ Source: Related Documents (eIP, ERP, etc.): ~ MILLER, STEINER & CURTISS, P.A. JEREMY S. STEINER' WYNN CURTISS JASON T. HUTCHISON ATTORNEYS AT LAW 400 WELLS FARGO BANK BUILDING 101 I FIRST STREET SOUTH HOPKINS, MINNESOTA 55343 JERRE A. MILLER (RETIRED) . Real Property Law Speclllhst, cerllfied by the Minnesota State Bar Associalion 952-938-7635 FAX 952-938'7670 Writer's Direct Dial No. 952-938-6219 MEMORANDUM DATE: December 28, 2005 TO: Jim Kerrigan Jerry Steiner (b ~ FROM: RE: Request for Quit elaim Deed to Park Nicollet elinic Property ; I': ~ Park Nicollet elinic has requested that the eity of Hopkins execute and deliyer a Quit elaim Deed to the Park Nicollet elinic property located between Ninth Avenue South and Eighth Ayenue South, North of y',. -...., First Street South. Park Nicollet has requested this Quit elaim Deed in order to clear title to its p~opelfY) from the interest the City acquired as a result of a Commercial Deyelopment Revenue Note transaction the City facilitated in January of 1978. The Commercial Deyelopment Reyenue Note transaction was undertaken as a technique to make funds available for the original deyelopment and improyement of the Park Nicollet property at a lower rate of interest than interest rates that were preyailing in the marketplace in 1978. The transaction inyolved the City taking title to the subject property, issuing a $500,000.00 Commercial Development Revenue Note, the proceeds of which were made available to Park Nicollet's predecessor in title, Hopkins Medical Building Associates, for the original improyement of the Clinic property, and then entering into a Lease with Hopkins Medical Building Associates by which Hopkins Medical Building Associates occupied and operated the Clinic and paid rent to the City equal to the principal and interest payments on the Commercial Deyelopment Revenue Note. The Lease giyes the Clinic owner the option to purchase the Clinic property back from the City for $1.00 at the time the Commercial Development Revenue Note was paid in full, and requires the City to deliver a QuitClaim Deed transferring the property to the owner at that time. Park Nicollet Clinic, a Minnes()t;t:no!l~profit. corporation, is the current owner of the Clinic property and assignee of the tenant's interest in the J anUlllY 19, 1978, Lease with the City. I have been contacted by the attorneys for Park Nicollet Clinic, who haye represented that the Comm<<rcial, Development Reyenue Note has been paid in full, and haye requested a Quit Claim Deed from the CitY- to clear title to the Clinic property of the interest of the City resulting from the Commercial Development Reyenue Note transaction. Because the City is obligated by the Lease to execute and deliyer this Quit Claim Deed to Park Nicollet Clinic, I recommend the City Council approve execution and deliyery of the Quit Claim Deed, subject to the following conditions: "" :,: J" ':':1' 1. That Park Nicollet Clinic give the City written notice it is exercising the option t~ purchase contained in the Lease. 2. That Park Nicollet Clinic pay the City of Hopkins the $1.00 option payment specified in the Lease and proyide proof of payment in full of the $500,000.00 Commercial Deyelopment Revenue Note issued by the City in 1978 for this project. 3. That the Quit Claim Deed executed by the City reserve all public easements located on the Park Nicollet Clinic property and the restrictions contained in the Quit Claim Deed recorded as Document No. 4350679 related to the use of the subject property. A copy of the proposed Quit Claim Deed to be executed by the City is attached to this Memo. 4. That Park Nicollet Clinic reimburse the City for all attorney's fees incurred by the City in responding to the request for execution and deliyery ofthe Quit Claim Deed. Provided the above conditions are met, I recommend the City Council approye the execution and deliyery. of the attached Quit Claim Deed. JSS JSS/drs Enc. c:Hopciv\Memo.Kerrigan -2- .fI!DOCS-- 31-M- QUIT CLAIM DEED (Top 3 inches Reserved for Recording Data) Millar/Davis Co. 0 St. Paul, MN 651-642-1988 Corporation. Partnership or limited liability Company Minnesota Uruform Conveyancing Blanks (l/15/97) to Corporation. Par~nership or Limited Liability Company DEED TAX DUE: $ Date: ,200h FOR VALUABLE CONSIDERATION, The City of Hopkins a municipal corporation under the laws of MinneSllia Grantor, hereby conveys and quitclaims to Park Nicollet Clinic Grantee, a non-profit corpor:Jtion under the laws of Minnesota real property in Hennepin County, Minnesota, described as follows: As legally described in Exhibit A attached hereto and incorporated herein, and reserving the Exceptions described in Exhibit A. together with all hereditaments and appurtenances. Check box if applicable: ~ The Seller certifies that the seller does not know of any wells on the described real property. A well disclosure certificate accompanies this document. o I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. THE CITY OF HOPKINS Affix Deed Tax Stamp Here By Eugene J. Maxwell STATE OF MINNESOTA } "., ItsMa)'or - COUNTY OF ..lI.ENNEPIN By __________________ ---- p-.. --...--.- .._---~- Terry Obermaier Its City Clerk This instrument was acknowledged before me on ,2006 (Dale) by Eugene J Maxwell and Terry Ohermaier the Mayor and City Clerk of The City of Hopkins a mllnicipa I corporation under the laws of Minnesota on behalf of the municipal corporation NOTARIAL STAMP OR SEAL (OROTIIER TITLE OR RANK) SIGNATURE OF NOTARY PUBLIC OR OTHER OFFICIAL Check here if part or all of the land is Registered (Torrens) 0 Tax Statements for the real property described in this instrument should be sent to (include name and address of Grantee): TIlTS INSTRUMENT WAS DRAFTED BY (NAME AND ADDRESS): Park Nicollet Clinic Jeremy S. Steiner Miller, Steiner & Curtiss, P.A. 400 Wells Fargo Bank Building 1011 First Street South Hopkins, MN 55343 Phone: 952-938-7635 WARNING: UNAUTHORIZED COPYING OF THIS FORM PROHIBITED. -I' ,. Schedule "A" Legal Description EXHIBIT A LEGAL DESCRIPTION Parcell: The South 36 feet of Lot 13, and all of Lots 14, 15, 16, 17, 18, 19, and 20, Block 4, "WEST MINNEAPOLIS," Hennepin County, Minnesota, together with the East half of the vacated alley in said Block 4, lying between the westerly extension of the North line of the South 36 feet of said Lot 13, and the westerly extension of the South line of said Lot 14, and including that part of the vacated alley in said Block 4, lying between the westerly extension of the North line of said Lot 15 and the Westerly eXl,msion of the South line of said Lot 17, all in "West Minneapolis," except those portions embraced within the following-described two tracts: Exception Tract A: Lot 13, except the North 14 feet thereof, and the North 18 feet of Lot 14, Block 4, together with the easterly half of the vacated alley in said Block 4, lying between the Westerly extension of the South line of the North 14 feet of said Lot 13, and the westerly extension of the South line of the North 18 feel of said Lot 14, all in "West Minneapolis," Hennepin Counly, Minnesota. Exception Tract B: That part of Lots 15 and 16, Block 4, "West Minneapolis," described as follows: Beginning at the Southeast corner of said Lot 15; thence Southerly. along the East line of said Lot 16 a distance of 8.49 feet; thence Westerly, deflecting 89 degrees 42 minutes 54 seconds to the righl a distance of 127.44 feet; thence Northerly, deflecting 90 degrees to the right a distance of 50.00 feet; thence Easterly, deflecting 90 degrees to the right a distance of 127.69 feet to the East line of said Lot 15; thence South along said East line to the point of beginning. EXCEPTIONS Grantor does not hereby convey, and expressly reserves the following: 1. All public easements affecting any part of the land described in this Exhibit A. 2. All covenants, conditions and restrictions contained in the Quit Claim Deed recorded as Document No. 4350679, except for those covenants, conditions and restrictions that terminated on January 4, 1997, as provided in said Quit Claim Deed. .fI!DOCS-- 3l-M- QUiT CLAIM DEED (Top 3 inches Reserved for Recording Data) Miller/Davis Co. CI St. Paul. MN 651-642.1988 Corporation. Partnership or Limited Liability Company Minnesota Uniform Conveyancing Blanks (1115/97) to Corporation, Par~rship or Limited Liability Company DEED TAX DUE: $ Date: 200fi FOR VALUABLE CONSIDERATION, The City of Hopkins a municipal cnrpor:Hion under the laws of Minne~ota Grantor, hereby conveys and quitclaims to Park Nicollet Clinic Grantee, a non-profit corporation under the laws of Minnesota real property in Hennepin County, Minnesota, described as follows: - As legally described in Exhibit A attached hereto and incorporated herein, and reserving the Exceptions described in Exhibit A. together with all hereditaments and appurtenances. Check box if applicable: !;21 The Seller certifies that the seller does not know of any wells on the described real property. o A well disclosure certificate accompanies this document. o I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. THE CITY OF HOPKINS Affix Deed Tax Stamp Here By Eugene J. Maxwell STATE OF MINNESOTA }..... Its MaJlor COUNTY OF ..JIRNNEPIN By _____________n______._. Terry Obermaier Its City Clerk This instrument was acknowledged before me on ,2006 (Pate) by Eugene J Maxwell and Terry Ob.ermaier the Mayor and City Clerk of The City of Hopkins a municipal corporation under the laws of Minnesot:l on behalf of the mnnicip31 corpor::ltion NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RANK) SIGNATURE OF NOTARY PUBLIC OR OntER OFFICIAL Check here if part or all of the land is Registered (Torrens) 0 Tax Statements for the real property described in this ilL'itrumeot should be sent to (include name and address of Grantee): TillS INSTRUMENT WAS DRAFTED BY (NAME AND ADDRESS): Park Nicolle! Clinic Jeremy S. Steiner Miller, Steiner & Curtiss, P.A. 400 Wells Fargo Bank Building 1011 First Street South Hopkins, MN 55343 Phone: 952-938-7635 WARNING: UNAUTHORIZED COPYING OF THIS FORM PROHIBITED. .1 . Schedule "A" Legal Description EXHIBIT A LEGAL DESCRIPTION Parcel I: The South 36 feet of Lot 13, and all of Lots 14, 15, 16, 17, 18, 19, and 20, Block 4, "WEST MINNEAPOLIS," Hennepin County, Minnesota, together with the East half of the vacated alley in said Block 4, lying between the westerly extension of the North line of the South 36 feet of said Lot 13, and the westerly extension of the South line of said Lot 14, and including that part of the vacated alley in said Block 4, lying between the westerly extension of the North line of said Lot 15 and the Westerly extension of the South line of said Lot 17, all in "West Minneapolis," except those portions embraced within the following-described two tracts: Exception Tract A: Lot 13, except the North 14 feet thereof, and the North 18 feet of Lot 14, Block 4, together with the easterly half of the vacated alley in said Block 4, lying between the Westerly extension of the South line of the North 14 feet of said Lot 13, and the westerly extension of the South line of the North 18 feet of said Lot 14, all in "West Minneapolis," Hennepin County, Minnesota. Exception Tract B: That part of Lots 15 and 16, Block 4, "West Minneapolis," described as follows: Beginning at the Southeast corner of said Lot 15; thence Southerly along the East line of said Lot 16 a distance of 8.49 feet; thence Westerly, deflecting 89 degrees 42 minutes 54 seconds to the right a distance of 127.44 feet; thence Northerly, deflecting 90 degrees to the right a distance of 50.00 feet; thence Easterly, deflecting 90 degrees to the right a distance of 127.69 feet to the East line of said Lot 15; thence South along said East line to the point of beginning. " , ,,' EXCEPTIONS Grantor does not hereby convey, and expressly reserves the following: I. All public easements affecting any part of the land described in this Exhibit A. 2. All covenants, conditions and restrictions contained in the Quit Claim Deed recorded as Document No. 4350679, except for those covenants, conditions and restrictions that terminated on January 4, 1997, as provided in said Quit Claim Deed.