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CR 96-46 Agreement Transfer Outlot B To MinnetonkaFebruary 29, 1996 Council Report 96 -46 Proposed Action Staff recommends the following motion: Move to approve the transfer of Outlot B to the City of Minnetonka in exchange for agreed upon improvements to Shady Oak Beach and authorize Mayor and City Manager to sign the agreement. Overview • p, CONSIDERATION OF AN AGREEMENT TO TRANSFER OUTLOT B TO THE CITY OF MINNETONKA On September 5, 1995, Council approved preliminary plans for redevelopment improvements to Shady Oak Beach. This was followed by approval from the Minnetonka City Council on October 16, 1995. Plans are currently being prepared to begin Phase I of the improvements in 1996 with the replacement of the deep water diving platforms and the addition of a canoe landing and fishing pier. Minnetonka has agreed to participate by funding two - thirds of the improvements and is requesting the transfer of outlot B in return. Should the agreement be approved, Minnetonka would continue their planned trail connection from the beach site, west to Dominick Road. Parking would be eliminated and maintained throughout the year at Shady Oak Beach. Primary Issues To Consider • What are the benefits to the City of Hopkins? • What are the benefits to the City of Minnetonka? • Completion of phase II redevelopment Supporting Documents • Proposed agreement • September 5, 1995 Council report • February 14, 1996 Joint Recreation Board Memorandum • Professional services proposal- Brauer and Associates, Ltd. Dave Jolfnson Director of Recreation Services • • Primary Issues to Consider CR 96 -46 Page 2 1. What are the benefits to the City of Hopkins? • The City of Minnetonka's participation in two- thirds of Phase I improvements to property owned by the City of Hopkins, estimated to be $100,000. • Design review and construction plans, estimated to be $8,000 are financed by the City of Minnetonka. • Preliminary approval by the City of Minnetonka to participate in two - thirds of phase II improvements estimated to be $1,000,000. 2. What are the benefits to the City of Minnetonka? • Elimination of resident concerns regarding parking at outlot B. • Hopkins approval to allow a Minnetonka trail segment to run through Shady Oak Park, cross the peninsula and connect to Dominick Drive. • The addition of a fishing pier to the trail connection (pier would be on Hopkins property). 3. Completion of phase II redevelopment Although preliminary plans for phase II improvements have been approved by both City Councils, funding for the improvements is not scheduled until the fall of 1997. Minnetonka has included funding in their Capital Improvement Program (CIP) for 1996 -1998. The City of Hopkins has allocated $100,000 per year through the year 2000. Subsequent to review of the outlot B agreement by the Joint Recreation Board, a motion was approved "To recommend approval of the proposed agreement between the Cities of Hopkins and Minnetonka for the exchange of outlot "B" with the assumption that Phase II improvements to Shady Oak Beach will follow ". The motion passed unanimously. to AGREEMENT This Agreement is made on , 1996, between the CITY OF HOPKINS ( "Hopkins "), a Minnesota municipal corporation, and the CITY OF MINNETONKA ( "Minnetonka "), a Minnesota municipal corporation, pursuant to authority of Minn. Stat. §471.59. Hopkins owns certain property which Hopkins and Minnetonka have used jointly for the operation of a public swimming beach ( "Shady Oak Beach "). In addition, Hopkins owns Outlot B, Shady Oak Shores, which is separated from Shady Oak Beach by a narrow channel of water. With Hopkins' permission, Minnetonka is constructing a public trail across Outlot B and a portion of the Shady Oak Beach property. As part of that trail, Minnetonka is constructing a bridge over the channel between the two properties. Minnetonka is willing to assist Hopkins in the construction of certain improvements on the Shady Oak Beach property in exchange for Hopkins transferring ownership of Outlot B and a portion of the Shady Oak Beach property to Minnetonka. THEREFORE, the parties agree as follows: 1. Minnetonka agrees to pay two- thirds of the costs, and Hopkins agrees to pay one -third of the costs, of constructing the following improvements at the Shady Oak Beach property during 1996: replacement of the deep -water swimming platforms and related amenities and addition of a fishing pier and public canoe landing ( "the Improvements ") . In addition, Minnetonka agrees to pay up to $8000 for preparation of construction plans for the Improvements and construction supervision. The plans must be approved by both parties. The costs of constructing the Improvements will not exceed $150,000, unless approved by both parties in writing. 2. In exchange for Minnetonka's participation in the Improvements, Hopkins will transfer title to the following property in Hennepin County, Minnesota ( "Subject Property ") to Minnetonka: Outlot B, Shady Oak Shores, and a portion of the Shady Oak Beach property shown on the attached Exhibit A. The legal description of the Shady Oak Beach portion will be determined by a survey undertaken at Minnetonka's expense. It is the intent of the parties that Hopkins will transfer to Minnetonka a sufficient area for the location of Minnetonka's bridge abutments and reasonable access for repair and maintenance. This is presumed to be approximately the westerly 50 feet of the Shady Oak Beach property. 3. Hopkins agrees to give good and marketable title to the Subject Property in fee - simple, together with all improvements and all rights to any abutting streets, and AGREEMENT: Outlot B Page 2 to convey title by warranty deed in a form acceptable to Minnetonka's counsel. The marketable title to the Subject Property will be subject only to the following exceptions: a. Building and Zoning laws, ordinances, State and federal regulations. b. Reservation of minerals or mineral rights to the State of Minnesota. c. Utility and drainage easements. 4. Hopkins will, at its own expense, deliver to Minnetonka a registered property abstract or an abstract of title certified to date for the Subject Property, within thirty days of the date of this Agreement. Minnetonka will have twenty days to examine this and to deliver written objections to title, if any, to Hopkins. Hopkins will permit no additional encumbrances to be made upon the Subject Property between the date of this Agreement and the Closing Date. If title to the Subject Property is found by Minnetonka to be unmarketable, and cannot be made marketable by Hopkins within 120 days after notice of a defect, then, at the option of Minnetonka, this Agreement will be null and void. 5. The Closing Date will be mutually agreed upon by the parties, but will be no later than 20 days after substantial completion of the Improvements, reasonably in compliance with the approved plans and any amendments. The cost of recording the deed will be borne by Minnetonka. 6. This Agreement is binding on the successors or assigns of both parties and may be specifically enforced by Minnetonka. If Minnetonka defaults on its obligations under this Agreement, Hopkins will have no obligation to transfer title to the Subject Property. Date: CITY OF HOPKINS Approved as to form and legality: By Its Mayor City Attorney And Its City Manager • AGREEMENT: Outlot B Page 3 STATE OF MINNESOTA) SS: COUNTY OF HENNEPIN) The foregoing instrument was acknowledged before me this 199_, by and City Manager respectively of the City of Hopkins, on behalf Notary Public Date: Approved as to form and legality: By Its Mayor City Attorney And Its City Manager STATE OF MINNESOTA) )SS: COUNTY OF HENNEPIN) _day of , the Mayor and of the corporation. The foregoing instrument was acknowledged before me this _ day of 199_, by Karen J. Anderson and David M. Childs, the Mayor and City Manager respectively of the City of Minnetonka, on behalf of the corporation. Notary Public CITY OF MINNETONKA • • AGREEMENT: Outlot B Page 4 DRAFTED BY: City of Minnetonka 14600 Minnetonka Boulevard Minnetonka, MN 55345 612- 939 -8200