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.