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IV.5. Approval of Grant of Easement between Hovander Foods, Inc. and the City of Hopkins; Autio CITY OF HOPKINS City Council Report 2023-060 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Chuck Autio, Public Works Director Date: August 15, 2023 Subject: Approval of Grant of Easement between Hovander Foods, Inc. and the City of Hopkins _____________________________________________________________________ RECOMMENDED ACTION MOTION TO Approve a Grant of Easement with Hovander Foods, Inc. to maintain a public parking and drive access area and authorize the Mayor and City Manager to execute said easement. OVERVIEW In order to provide public parking and a circulation drive between 9th Avenue North and 10th Avenue North the City has maintained an easement with the property owner. The proposed no-cost easement requires that the City maintain the asphalt paved area in accordance with its standard practice for parking lots, including snow and ice control. Other than the expiration date, the proposed agreement is the same as previous easement terms. The property owner has agreed to the 10-year term. SUPPORTING INFORMATION Proposed Easement Location map Public Works Department Page 1 of 7 DOCSOPEN\HP145\4\886991.v3-8/4/23 Grant of Easement Hovander Foods Inc., a Minnesota Corporation (“Grantor”), for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, does hereby grant, convey and quit claim to the City of Hopkins, a municipal corporation under the laws of the State of Minnesota (“Grantee”) a non-exclusive Easement for public parking, driveway and access purposes over, under and across the easement area legally described in Exhibit A attached hereto and incorporated herein by reference (the “Easement”). The Easement affects and burdens real property owned by Grantor, which is legally described in Exhibit B attached hereto and incorporated herein by reference (“Burdened Property”). The Easement is granted upon and subject to the conditions and limitations stated below. 1. Maintenance, Repair and Restoration. Grantee shall seal coat, maintain and repair the parking and driveway surfaces within the Easement in accordance with the maintenance and repair intervals and procedures custom arily observed by Grantee for maintenance and repair of parking lots. Grantee shall also be solely responsible for snow and ice removal and the sweeping of the parking and driveway areas within the Easement, which work will be performed in accordance with the Grantee’s practices and procedures for public parking lots. 2. Reconfiguration of Parking Stalls. Grantee agrees it shall not modify or reconfigure the parking stalls located in the Easement on the date hereof without Grantor ’s prior written consent. Grantee shall request such consent by written notice to Grantor specifying the proposed reconfiguration of the parking stalls located in the Easement. 3. Duration. The Easement and this Grant of Easement shall terminate and be of no further force or effect on July 30, 2032. Grantee shall thereafter be released from all of its obligations under this Grant of Easement. 4. Notices. All notices required or permitted to be given under this Easement shall be in writing and shall be deemed to be delivered, given or made when personally delivered to the individuals identified below, or, if mailed, two (2) business days Page 2 of 7 DOCSOPEN\HP145\4\886991.v3-8/4/23 after such notice is deposited in the United States mail in a sealed envelope with first class mail postage prepaid thereon and addressed to the partie s as follows: a. If to Grantors: Hovander Foods Inc. c/o Brenda Hovander P.O. Box 207 Carver, MN 55315 b. If to Grantee: City of Hopkins Attention: Public Works Director 1010 First Street South Hopkins, MN 55343 Grantor and Grantee may each change their address for notice purposes by notice to the other party given in the manner specified in this paragraph. 5. Indemnification and Insurance. Grantee will indemnify, defend and hold Grantor harmless from and against any and all claims, actions, demands and lia bilities, including claims of personal injury and property damage, arising out of or resulting from the use of the Easement by Grantee, Grantee’s agents and employees, and by the public for parking and driveway purposes, including Grantor ’s reasonable attorney’s fees and court costs incurred in defending against any such claims, actions, demands and liabilities. Grantee shall not be required to indemnify, defend or hold Grantor harmless from and against any claims, actions, demands and liabilities, including reasonable attorney’s fees and court costs, arising out of or resulting from the negligence or misconduct of Grantor or those actions through or under Grantor. Grantee’s agreement to indemnify, defend and hold Grantor harmless shall be subject to the limitations of Grantee’s liability, as a Minnesota municipality, provided in Minn. Stat. Chapter 466, shall be limited as provided therein, and Grantee does not waive any limita tions of Grantee’s liability provided in Minn. Stat. Chapter 466. In the event Grantee maintains liability insurance covering liabilities arising from the use of the Easement, Grantee shall name Grantor as an additional insured of such liability insurance . The maintenance of such liability insurance shall be at Grantee ’s sole discretion. In the event any mechanic’s lien is filed against the Burdened Property as a result of labor performed or materials furnished on behalf of Grantee, Grantee shall cause s uch mechanic’s lien to be discharged of record within 30 days or Grantee shall provide a bond or other security as required by law to release the Burdened Property from such mechanic’s lien as soon as reasonably possible. Page 3 of 7 DOCSOPEN\HP145\4\886991.v3-8/4/23 6. Miscellaneous. This Grant of Easement shall be interpreted and governed by Minnesota law, shall run with the title to the Burdened Property and be binding upon Grantor and Grantee and their respective successors, assigns and mortgagees. Page 4 of 7 DOCSOPEN\HP145\4\886991.v3-8/4/23 IN WITNESS WHEREOF, Grantor and Grantee have executed this Grant of Easement this _____ day of ______, 2023. HOVANDER FOODS INC. By: Brenda J. Hovander Revocable Trust under agreement dated May 15, 2018 Its: Sole Shareholder By: _____________________ Michael R. Meents Its: Trustee STATE OF MINNESOTA ) ) ss COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of __________, 2023, by Michael R. Meents, Trustee, Brenda J. Hovander Revocable Trust under agreement dated May 15, 2018, of Hovander Foods Inc., a Minnesota corporation, on behalf of said corporation. ________________________ Notary Public Page 5 of 7 DOCSOPEN\HP145\4\886991.v3-8/4/23 CITY OF HOPKINS By: _________________________ Patrick Hanlon Its: Mayor By: ________________________ Amy Domeier Its: Clerk STATE OF MINNESOTA ) ) ss COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of _____, 2023, by Patrick Hanlon and Amy Domeier, the Mayor and Clerk, respectively, of the City of Hopkins, a Minnesota municipal corporation, on behalf of the corporation. ________________________ Notary Public THIS INSTRUMENT DRAFTED BY: City of Hopkins 1010 First Street South Hopkins, MN 55343 A-1 DOCSOPEN\HP145\4\886991.v3-8/4/23 EXHIBIT A LEGAL DESCRIPTION OF EASEMENT An easement for public parking, driveway, and access purposes over and across the following described property: Lot 5 and the north 5 feet of Lot 6 and that part of the East half of the adjoining vacated alley in Block 68 lying between the extensions across it of the north line of said Lot 5 and the south line of the north 5 feet of said Lot 6, Block 68, West Minneapolis Second Division, Hennepin County, Minnesota. B-1 DOCSOPEN\HP145\4\886991.v3-8/4/23 EXHIBIT B LEGAL DESCRIPTION OF BURDENED PROPERTY Parcel 1: Tracts A and B, Registered Land Survey No. 953, Hennepin County Minnesota Parcel 2: Lots 1 to 5 inclusive and the North 5 feet of Lot 6 and that part of the East half of the adjoining vacated alley in Block 68 lying between the extensions across it of the North line of said Lot 1 and the South line of North 5 feet of said Lot 6, Block 68, “West Minneapolis Second Division.” Tract B is subject to a reservation by the State of Minnesota of mineral and mineral rights.