Memo Revisions Agreement Outlot B to MinnetonkaMEMORANDUM
TO: Honorable Mayor and Members of the City Council
THROUGH: Steven C. Mielke, City Manager
FROM: Dave Johnson, Director of Recreation Services
DATE: March 15, 1996
SUBJECT: Revisions to Agreement for the Transfer of Outlot B to the City of
Minnetonka
On February 29, 1996, Council reviewed a proposed agreement for the transfer of
Outlot B to the City of Minnetonka. As indicated by the City Manager, the draft
agreement included in Council Report 96 -46 required amending as agreed upon by
attorneys from the two cities.
Attached is the revised agreement which now states that Hopkins will grant an
easement for property to the east of the peninsula. This property was originally
included in the transfer to allow Minnetonka to maintain the eastern portion of the
bridge which is now in place. Other minor changes in the basic language of the
agreement were also made.
The Council is asked to consider approval of the revised agreement at the March 19,
1996 Council meeting.
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 Outiot B, and granting an easement over 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 grant to Minnetonka fee title to the property in Hennepin County, Minnesota,
legally described as Outlot B, Shady Oak Shores ( "Subject Property "). In addition,
Hopkins will grant Minnetonka an easement for trail purposes over 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 the easement will cover 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
to convey title by warranty deed in a form acceptable to Minnetonka's counsel. The
AGREEMENT: Outlot B
Page 2
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.
d. Rights of the State of Minnesota and the public in that part of the
Subject Property below the high water mark of Shady Oak Lake.
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. If Hopkins has no abstract, it will
obtain owner's title insurance for the benefit of Minnetonka. Minnetonka will have
twenty days to examine the title evidence 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,
Hopkins will take commercially reasonable efforts to make the title marketable. If this
is not accomplished within 120 days after notice of a defect, then, at the option of
Minnetonka, this Agreement will be null and void, or Minnetonka may waive the
defects and proceed with acquisition.
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.
AGREEMENT: Outlot B
Page 3
Date:
Approved as to form and legality:
City Attorney
STATE OF MINNESOTA)
)SS:
COUNTY OF HENNEPIN)
The foregoing instrument was
199_, by
City Manager respectively of
Notary Public
Date:
Approved as to form and legality:
City Attorney
CITY OF HOPKINS
By
And
Its City Manager
Its Mayor
acknowledged before me this _ day of ,
and , the Mayor and
the City of Hopkins, on behalf of the corporation.
CITY OF MINNETONKA
By
Its Mayor
And
Its City Manager
AGREEMENT: Outlot B
Page 4
STATE OF MINNESOTA)
)SS:
COUNTY OF HENNEPIN)
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
DRAFTED BY:
City of Minnetonka
14600 Minnetonka Boulevard
Minnetonka, MN 55345
612- 939 -8200
AK
2539.39 RES