CR 10-030 Option Agreement - 425/427 Blake Road C ITY OF
April 1 , 2010 F I O P K I S Council Report 2010 -30
OPTION AGREEMENT -- 425/427 BLAKE ROAD
Proposed Action
Staff recommends adoption of the following motion: Move to authorize staff to negotiate an
option agreement for the purchase of 425/427 Blake Road with the City & the Minnehaha Creek
Watershed District as option holders, subject to the terms detailed in this report.
With this motion, an option agreement will be prepared and presented to the sellers. Staff will
proceed with negotiation of the option agreement terms with the sellers & the final option
agreement will be brought back to the Council for approval.
Ov rview
In May 2009, the City of Hopkins adopted a small area plan for the Blake Road Corridor in order
to guide redevelopment. One of the recommendations of the plan was to enhance and connect
green and open spaces. The implementation strategies to achieve this goal include property
acquisition south of the existing Cottageville Park to connect more fully to Minnehaha Creek.
City staff has been in discussions with the Minnehaha Watershed District staff and Board of
Directors, as well as the Metropolitan Council, regarding a collaborative effort to achieve our
mutual goals around this strategy. Recently the opportunity to purchase a key parcel, 425/427
Blake Road, has presented itself. The Minnehaha Watershed District Board authorized its staff
to enter into an option agreement if the City of Hopkins participated 50% in the option payment
required to acquire the option — up to $10,000 from each party.
The terms City staff would recommend are as follows:
• Maximum City contribution towards the option payment - $10,000 (non- refundable)
• Minimum term of option — 90 days with closing within 120 days
• Purchase price to be paid by the Minnehaha Watershed District
Primary Issues to Consider
• Why is staff recommending this action?
Supporting Information
Blake Road Corridor Small Area Plan:
http: / /www. hopkinsmn. com/ developmenticurrent /blake /pdf /blake -rd- small - area -plan. pdf
Ke
-n El -rum, Director of Planning & Development
Financia Impact: $ 10,000 Budgeted: Y/N Source: Storm Water Utility Fund
Related Documents (CIP, ERP, etc.):
Notes:
Council Report 2010 -30
Page 2
Analy i of the Issues:
• Why is staff recommending this action?
The option is being sought in order to give the Minnehaha Watershed District time to complete
their analysis of the acquisition. Indications are that they do support the purchase at this time
but the City does not have a guarantee that the option will be executed. It is, however, believed
that the opportunity to purchase this property while it is on the market will result in significant
acquisition savings over future purchase costs.
It is expected that the Option would be acquired jointly by the City & the Watershed District, and
that the Watershed District will contribute the purchase price for the property if the Option is
exercised. A detailed plan for how this property would be used, what contributions the City of
Hopkins would be asked to make, and each party's responsibilities would be outlined in a
separate agreement to be negotiated between the City & the Watershed District during the 90
day option period.
Alternatives:
The City Council has the following alternatives regarding this item:
• Elect to authorize staff to proceed with option negotiations under the terms identified
• Recommend different terms for the option agreement
• Elect not to participate in an option agreement with the Minnehaha Watershed District